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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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6

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 info@dolphin-claims.com.sg