NEWS

The LONGCHAMP - expanded article from The Journal of International Maritime Law

Further to the article published on this website on 8 November 2017, The Journal of International Maritime Law published an expanded article in their March-April 2018 edition (Volume 24 Issue 2). A copy of this article can be downloaded here.  

To recap, on 25 October 2017 the Supreme Court handed down its judgment in the Longchamp case. 

This case concerned the application of Rule F of the York-Antwerp Rules in relation to vessel operating expenses incurred by the shipowners while a ransom payment was being negotiated with pirates. The allowance of these expenses as general average was generally considered to be controversial and the judgment may have an impact on issued, pending and future general average adjustments. Michael Harvey prepared the paper reviewing the judgment and considering its possible impact.

Michael who is co-author of The York-Anterp Rules - The Principles and Practice of General Average Adjustment the fourth edition of which was recently published by informa law from Routledge, will be delighted to deal with any questions that arise from the paper. 

https://www.routledge.com/The-York-Antwerp-Rules-The-Principles-and-Practice-of-General-Average/Hudson-Harvey/p/book/9781138285798

Marine International Insurance Conference 2018 - Dubai

On 2nd & 3rd May, Tristan Miller had the pleasure of attending and supporting the inaugural Marine International Insurance Conference 2018 hosted by the Emirates Insurance Association under the patronage of H.E. Eng. Sultan Bin Saeed Al-Mansouri, Minister of the Economy, in Dubai. 

The event was sponsored by ADNIC and Clyde & Co and focused on cargo insurance on the first day and Hull & Machinery on the second day. The event also saw a presentation by Lars Lange of IUMI where he annouced that it is expected that the Emirates Insurance Association will become the 42nd member association of IUMI at their conference in Cape Town in September. 


Construction Risks Insurance Seminar

In late April, Michael Harvey visited Dubai and Abu Dhabi and presented two 1 day seminars to a client on the subject of Construction Risks Insurance. The content of the seminar was tailored to take into account the coverage  actually purchased by the client to raise awareness within the company about situations that may lead to an insurance claim and the procedures that should be followed and documents that should be retained in order to substantiate the claim.

The decision of The Supreme Court of the UK in the case of The LONGCHAMP

On 25 October 2017 the Supreme Court handed down its judgment in the Longchamp case. 

This case concerned the application of Rule F of the York-Antwerp Rules in relation to vessel operating expenses incurred by the shipowners while a ransom payment was being negotiated with pirates. The allowance of these expenses as general average was generally considered to be controversial and the judgment may have an impact on issued, pending and future general average adjustments. 

A paper prepared by Michael Harvey reviewing the judgment and considering its possible impact can be downloaded here.


Just published - The York-Antwerp Rules: The Principles and Practice of General Average Adjustment

We are pleased to announce that the 4th Edition of this book, authored by Geoffrey Hudson and Michael Harvey, has now been published by Informa Law from Routledge as part of the Lloyd’s Shipping Law Library series.

The objective of the book is to provide a guide to the principles and practice of general average adjustment which will be of practical use both to those whose business depends upon a good understanding of such matters as well as those who may have only a passing interest in the subject but require the assurance of understanding this unique aspect of maritime law.

In addition to a detailed analysis of the 2016 Rules, the book contains chapters concerning general average & salvage security, general average absorption clauses and the insurance of average disbursements. The Appendices include the 2016 Rules contrasted with those of 1994, comparative texts of Rules from 1864 to 2016 and other useful reference materials.

The book is available by mail order at routledge.com

Comparative Maritime Law

A friend of ours, Prof. Hassania Cherkaoui of Morocco, has recently published a most useful study of comparative maritime laws. She has advised as follows:


"I created a website specially for my book in order to make it known by the English-speaking countries.

This is the first book in the world engaged in the unexplored study of comparative maritime law.

Analyses undertaken in this book delve into many foreign maritime laws, in particular English, French and American laws. Those chapters devoted to the comparison of Moroccan maritime law with that of 19 other countries yields differences more of detail than of principle. Each study was written by a renowned maritime legal expert from the country concerned.

You will definitely want to read it, after visiting its website which presents it sufficiently:   www.comparativemaritimelaw.com"

The York-Antwerp Rules 2016 from the perspective of the average adjuster

An article written by Michael Harvey has recently been published in The Journal of International Maritime Law in which he explores the affect of the changes of the 2016 York-Antwerp Rules on the work of the average adjuster. A copy of the article can be downloaded below.

Download here:

MDH - JIML Article

Change in Limitation Amounts under English Law

From today (30 November 2016) the following limitation amounts will apply to incidents occurring on or after that date.

For property claims for ships not exceeding 2,000GT the new limit is 1.51 million SDRs (up from 1 million SDRs) with the following additional amounts for larger vessels:

  • For each ton from 2,001 to 30,000 tons, 604 SDR’s (up from 400 SDRs).
  • For each ton from 30,001 to 70,000 tons, 453 SDR’s (up from 300 SDRs).
  • For each ton in excess of 70,000 tons, 302 SDR’s (up from 200 SDRs).


For loss of life or personal injury claims the new limit for a ship not larger than 2,000GT is 3.02 million SDRs (up from 2 million SDRs), with the following additional amounts for larger vessels:

  • For each ton from 2,001 to 30,000 tons, 1,208 SDR’s (up from 800 SDRs).
  • For each ton from 30,001 to 70,000 tons, 906 SDR’s (up from 600 SDRs).
  • For each ton in excess of 70,000 tons, 604 SDR’s (up from 400 SDRs).

 
One SDR is currently worth GBP 1.0838 or USD 1.3521.

YORK-ANTWERP RULES 2016

At their Conference in New York on Friday 6 May, the Assembly of the CMI adopted the York-Antwerp Rules 2016. These Rules have been agreed by the commercial interests (International Chamber of Shipping & International Union of Marine Insurance) so the expectation is that they will be used in preference to YAR 1994 and, more particularly, YAR 2004. Indeed, BIMCO have already indicated that their documents will be amended to reflect these new rules.

IMG 2522


The major changes from the YAR 1994 relate to the following:

  • Rule B - Sub-rules 2 & 3 relating to tug and tow.
  • Rule E - Changes concerning notification and the provision of details of value and claims in GA.
  • Rule G - Amendment to sub-clause 4 intended to achieve uniformity of adjusting practice.
  • Rule VI - Major changes re the treatment of salvage.
  • Rule XI - ‘Definition’ of port charges added.
  • Rule XVI - Wording added to deal with issue arising from place of final delivery not being port of discharge. Also recognition that low value cargos may be excluded.
  • Rule XX - Exclusion of commission.
  • Rule XXI - Formula for calculating interest (ICE LIBOR + 4%).
  • Rule XXII - Very significant changes to the treatment of cash deposits. 


The Assembly also adopted “CMI Guidelines relating to General Average”.

The main purpose of this document is to inform those not used to dealing with GA; claims examiners, shippers and forwarders and the like.

You will note from section A)3. that it is envisaged that the Guidelines will be updated from time to time upon the recommendation of a Standing Committee. Michael Harvey was elected to this Standing Committee.

It is envisaged that the first job for the Standing Committee will be to consider the possibility of standard wordings for GA security documentation.

We are happy to answer any questions that you may have concerning the new Rules or Guidelines.


Download here:

York-Antwerp Rules 2016
CMI Guidelines relating to General Average

Lloyd’s Maritime Academy - G A Seminar

LMA image

Michael Harvey is a speaker at this Seminar to be held in London on 26/27 October 2015. The Seminar is focused on understanding the fundamentals of general average and will therefore be of interest to those not well versed on the subject as well as those who would benefit from a ‘refresher’.

 

Full details are available for download HERE. Please note the incentives available by using this form – 50% discount if registering before 14 August and 20% thereafter.


© Harvey Ashby Limited 2018