Places of Refuge in the United Kingdom
25/11/2003
This paper was given at the Sothampton Institute of Maritime Law and BMLA seminar on 30th March 2004 concerning the UK system for addressing the issue of places and ports of of safety.
These recommendations are for the guidance of masters, their supporting personnel and pilots in laying down the minimum standards to be expected of the pilotage service given on board ships in pilotage waters worldwide and aims to clarify the roles of the master and the pilot and the working relationship between them. Such guidance is designed to supplement existing regulations and standard references on pilotage which include, but are not limited to, those listed in Section 10.
The vast majority of ships trading today are purchased with money advanced by a bank or other financial institution and are therefore subject to a mortgage. It will usually be agreed, however, that the owner will continue to trade the vessel himself so that the bank will not be directly involved in the ship's commercial operation. Indeed, it is likely to be the trading income earned by the owner which is used to pay the mortgage debt. But there will inevitably be occasions when the mortgagee bank wishes to exercise its option to enforce its mortgage, for example by arresting and selling the ship. Whatever the position between the bank and the shipowner, the effect of such an arrest may well be to prevent performance of the contracts of carriage to which the ship is then subject; thereby causing a breach of the charterparty between the owner and the charterer and/or the bill of lading contract between the owner and cargo interests. This article examines the extent to which the existence of a charterparty or bill of lading contract may inhibit the ability of a mortgagee to enforce his mortgage, and his potential liability if he goes beyond these limits.