MAY 2009

IN THIS ISSUE

Please Select an Article to Read

• Climate change - Australia’s carbon emissions trading scheme
• New law to force personal business freight rates to be quoted ‘all in’
• New Australian Guidelines for the issue of Coasting Trade Licences & Permits
• Anti-fouling paints
• Ship arrest in Australia - a straightforward way to secure Maritime claims
• A move towards borderless trucking regulation
• Australia and New Zealand close the gap on legal process
• Timely reminder of obligations when a pollution discharge occurs
• Limitation of Liability in Maritime Claims

 

Limitation of Liability in Maritime Claims

The Limitation of Liability for Maritime Claims Act 1989 (Cth) (the Act) affords shipowners the special right to limit their liability in the face of tort and certain contract claims. The Act enacts the 1976 international convention of the same name, to which many other countries, including most of Australia’s neighbours, are a party. The Act enables shipowners to limit their liability in circumstances where the tort or contract breach occurred as a result of the negligence of the master and his crew.

The Act provides that a fund may be created to limit financial liability in response to claims for personal injury and property damage, loss resulting from delay and other limited circumstances arising from the same incident. The fund is capped as prescribed by the Act, based on the vessel’s tonnage (as opposed to the vessel's value). Compensation for all claims is drawn from the fund according to a prescribed formula.

In a recent New Zealand case, the Court of Appeal held that the existence of a limitation fund effectively stays any relevant litigation and can save the shipowner litigation costs, as well as negating the need for an admission of liability. Such issues have not yet been considered by an Australian court, however a similar outcome would be expected.

IMO Meeting - reduction of GHG emissions from ships

On the agenda at the IMO’s recent Working Group on Greenhouse Gas Emissions (GHG) from Ships meeting in early March this year, was development of a draft guideline containing measures to improve and enhance existing energy efficiency standards in the field of international shipping, with a view to decreasing GHG emissions.

The working group concentrated on potential technical and operational measures to reduce GHG from ships and considered submissions and papers provided by member governments and observer organisations on these issues.

Two indexes were focused upon - the Energy Efficiency Design Index for the design of new ships, and the Energy Efficiency Operational Index, which enables vessel operators to measure the fuel efficiency of an existing ship and thereby gauge the effectiveness of any measures adopted to reduce the vessel’s energy output.

The Draft Ship Energy Management Plan was also debated, and includes guidelines for improved voyage planning, speed and power optimisation, optimised ship handling, improved fleet management and cargo handling, and energy management for individual vessels.

Once the draft guidelines have been further scrutinised by the IMO’s Marine Environment Protection Committee they will be presented to the United Nations in Copenhagen in December 2009, where a successor instrument to the Kyoto Protocol is to be debated.

 

Written by Amber Pittlik, Associate