mr david landau
TRANSCRIPT
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Bills of Lading
-
Impact on
Claims
Recovery
Marine Casualties
Collisions
Capsize
Loss of cargo overboard
Explosions & Fire
Sinking
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Marine Casualties
How many annually ?
A < 100 ?
B 100 – 1,000 ?
C > 1,000 ?
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Topics
1. Documentation for claims & maximising recovery
2. Bills of Lading
3. Evidence
4. Law and Jurisdiction
5. Time Bars
6. Security
7. Limitation (package and vessel)
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Dolphin:
an Overview
“Twin star”
Profile
Formed in 1960
50+ years history working
with many of the world’s
leading marine insurance
companies.
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Profile
The primary focus - all types of transport claims:
sea
air
land
“Sergio
Zakariadze”
Services
Services include:
loss prevention
policy coverage advice
cargo claims settling
recovery of losses from the responsible party
casualty work
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Dedicated in-house
Departments
Specialised Integrated Departments:
Cargo Claims
Recoveries
Casualty (General Average & Salvage)
Hull claims
All our departments consider a case together.
Global network of specialist agents, lawyers and
surveyors
Minimise exposure, maximise recovery
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Recovery
WHAT IS A “RECOVERY”?
“Subrogation” or “Recourse” claim
Claim against a Third party
Claim for Salvage Indemnity
Claim under contract (e.g. Bill of Lading)
Claim in “tort” or bailment
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WHO CAN CLAIM?
The party who has
suffered the loss
(the owners of the
cargo)
The party’s
underwriter (under
Subrogation)
Party with “propriety
interest” in the
goods
Documents
Required
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What documents are necessary
for a recovery action?
ORIGINAL ENDORSED B/L, Airway Bill, CMR etc.
(or clear copy of both front and reverse)
Charter party (if referred to in B/L)
Commercial invoice
Packing list
Subrogation receipt
Claim breakdown / adjustment
Survey report with COLOUR photos
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What documents are necessary
for a recovery action?
Ship’s outturn documents / tally sheets / delivery
receipts etc.
Bulk / Liquid: Draft / Ullage survey report at
loading and discharge
Containers: Equipment Interchange Receipt (EIR)
Claim notice to the carrier(s) by fax
Invitation to attend joint Survey
Letter of authorisation to DOLPHIN to recover
Preliminary steps in a
recovery action
Name DOLPHIN as Settling Agents in your policy
Guide assured in protecting rights of recovery • Joint survey
• Time bar
• Security
Appoint surveyor • Assess cause, nature, extent of loss
• Collate documents
• Assist in mitigation and/or salvage
Specialist cargoes = specialist knowledge
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Glass
Bills of Lading
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BILLS OF LADING & their
functions
3 important functions:
1: Evidence of Receipt for the goods.
2: Possession of original = “title (ownership) to the goods.”
3: Evidence of the Contract of Carriage.
PARTIES TO THE BILL
OF LADING
Shipper
Notify Party
Consignee/Receiver
Carrier
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IDENTITY OF CARRIER
Registered Shipowner
Charterer
Bareboat Charterer
Disponent Owner
Time Charterer
Voyage Charterer
Liner Company
Freight Forwarder
Demise Clause
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Types of Bs/L
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Types of B/L
Straight B/L
Liner B/L
Congen B/L (incorporates charter party)
CMR (carriage by road)
AWB (for air carriage)
Combined Transport / Multi-modal
Evidence
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EVIDENCE
1) Prove the goods were sound when given to the
carrier.
2) Prove they were damaged/lost at time of delivery.
Inadequate Stowage?
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Inadequate Stowage
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Flooded Container with
Tide mark
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Law & Jurisdiction
JURISDICTION
As defined in the B/L – the jurisdiction clause
Place of loading
Place of discharge
Place of casualty
Country where carrier has principal place of business
Flag State of the vessel
Voluntary agreement to jurisdiction, per L.O.U.
Place of arrest
Charter Party – if incorporated into the B/L
www.33ff.com/flags/
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AREAS TO CONSIDER:
What Conventions apply (Hague, Hague-
Visby, Hamburg etc)
Package limitation and/or vessel limitation
Prospects of breaking or avoiding limitation
How easily can proceedings be issued?
Cost of proceedings
How long it would take to get a judgement?
AREAS TO CONSIDER:
Is counter security required?
What level of interest is claimable?
Are the legal costs recoverable?
Can you appeal?
Is the jurisdiction convenient? (location
of witnesses / evidence)
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AREAS TO CONSIDER:
Will the court first “seized” have jurisdiction?
Which law will the court apply? B/L or own
domestic law?
Will you be time barred elsewhere?
“Alva Star”
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Time Bars
TIME BARS - GENERAL
Time limits are imposed in various ways:
By contract
International convention
Local law
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TIME BARS – EXAMPLES:
Claims under Bills of Lading:
Combined Transport B/L = 9 months
Hague / Hague Visby Rules = 1 year
Hamburg Rules = 2 years
Rotterdam Rules (from 2009) = 2 years
Warsaw Convention = 2 years
* Time runs from date of delivery (or when delivery should have occurred).
Carrots
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Security
SECURITY FROM THE
CARRIER
Paper guarantee (usually a P&I Club)
Bank guarantee
Cash deposit
Seizing of assets e.g. hull proceeds
Arrest of physical property e.g. the ship
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SECURITY FROM THE
CARRIER
Associated ship arrest
Pierce the corporate veil
Wrongful arrest
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Limitation
LIMITATION
Package
Weight
Global ship limitation
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LIMITATION – Examples of Package / Weight limits:
Hague Rules 1924:
£100 sterling (or equivalent) per pkg
Hague-Visby Rules 1968:
2 SDR per kilo or 666 SDR per pkg (USD 1000)
Hamburg Rules 1978:
2.5 SDR per kilo or 835 SDR per pkg (USD 1250)
Rotterdam Rules 2008:
3 SDR per kilo or 875 SDR per pkg (USD 1300)
US COGSA:
USD 500 per pkg (no weight limit)
GLOBAL / VESSEL
LIMITATION
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Beer
LIMITATION –
Global Vessel Limitation
Limitation Fund set up by
shipowner by payment into
court (or guarantee)
Size of fund determined by
size of vessel
where incident occurs
jurisdiction where claims
brought
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LIMITATION –
5 International Shipping Conventions
1924 quite rare
1957 more common
1976 more common
1996 becoming more used
2012 not yet adopted
1924 & 1957 can be broken
Virtually impossible to break 1976, 1996 or 2012
U.S.A. – “Abandonment Principle”
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New Flame collision with
Torm Gertrud
Collided with Torm
Gertrud in Gibraltar
waters
Loaded 42,000 MT
scrap from NY
New Flame c/w Torm
Gertrud
LOF salvage failed. Ship & cargo CTL
Claims -
$13.5m cargo
$14m SCOPIC
$30m loss of vessel
$30-40m wreck removal
Total $90-100m
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New Flame c/w Torm
Gertrud
Analysis of
jurisdiction options:
Gibraltar
India
New York
• Innocent cargo rule
• Abandonment value
New Flame c/w Torm
Gertrud
Torm opened USD7.5m
limitation fund in Gibraltar
(against USD 100m claims!)
Dividend from fund approx
only 8% of total claims
Cargo to receive USD 1.1M
(out of USD 13.5M)
Suit filed in New York
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New Flame c/w Torm
Gertrud
US$8.8m
settlement 6
months after
collision (compared with
USD1.1m in
Gibraltar)
The End
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The End
Dolphin Claims Services (Singapore) Pte Ltd
101 Cecil Street
#17-08 Tong Eng Building
Singapore 069533
Tel: +65 6222 1849
Fax: +65 6221 1849 [email protected]