Law

Question 1

Difference between Classification Society and Flag

Answer 1

The Classifications interest lies with the Ship / Companys interest. As employed directly by the Ship to carry out work on behalf of flag.

The Flag States interest is to uphold a high standard.

Question 2

What is a P & I ?

Answer 2

P&I club is a mutual assurance association which provides cover for its members.

Unlike marine insurance which is answerable to its shareholders P&I responsible for its members only.

Covers for:
Pollution
Collision
Cargo loss
Injury, illness, death of crew.

Question 3

What is general average?

Answer 3

General average loss or expenditure is an insured Peril in every contract of Marine insurance.

If a ships master voluntarily sacrifices part of the ship or cargo in order to save the voyage then all parties involved make a equal contribution.

Question 4

What to do if hull is damaged abroad?

Answer 4

Note protest.
Contact flag.
Contact class surveyors.

Interim Cert of Class will be issued by either own class or another member of IACS.

Last resort get Cert of Seaworthiness using two Irish ship masters. Or British. If engine damage use Chief as well.

Make entry in OLB
Extend protest
Send copies of Cert of Sea or Int Class
To owner and Flag.

Question 5

What is Lloyd’s open form 2011

Answer 5

It is an internationally recognized standard agreement for a marine salivate operation.

Saves the master from time consuming contractual negotiations whilst the vessel is in jeopardy.

Open - no stipulated amount.

Decided afterwards by arbitration.
Lloyd’s appointed.

No Cure, No Pay.

Question 6

What is Laytime?

Answer 6

It is the period agreed in the charter party to load and discharge the cargo.

Either number of hours or daily tonnage rate.

Charter party will state when Laytime is to begin.

Question 7

What is Deadfreight?

Answer 7

This is a clause added to the charter party agreement to protect the shipowner -
If the charter fails to load the full amount of cargo he will be obliged to pay an amount equal or less than the stated freight rate.

Deadfreight is payable by the shipper to the shipowner.

Question 8

Who pays Demurrage?

Answer 8

Demurrage is payable by the shipper to the ship owner.