Maritime law continues to evolve, with 2024 bringing a series of significant legal developments. North’s FD&D Consultant, Jim Leighton, highlights the top 10 maritime cases of the year 2021, providing insights into how these judgments are shaping the future of maritime operations and legal practices.
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The Alexandra 1 and Ever Smart [2021] UKSC 6
Summary: In this landmark case, the Supreme Court clarified the application of the crossing rules versus narrow channel rules. The court held that the crossing rules are not automatically overridden by narrow channel rules simply because an approaching vessel is preparing to enter a narrow channel. Only when the approaching vessel is on its final approach and adjusting course to enter on its starboard side do the crossing rules get overridden.
Impact: This judgment provides clearer guidance on navigational rules, reducing the risk of collisions and enhancing safety in narrow channels.
Further Reading: The Ever Smart and Alexandria I Collision- What does it mean?
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The New Hydra [2021] EWHC 566 (Comm)
Summary: The court ruled on the calculation of daily hire under a time charterparty based on Baltic Exchange routes. It found an implied term that size adjustments should be reasonably revised when the benchmark ship size changes during the charter period.
Impact: This case ensures fairer calculations of charter hire, promoting equity and reducing disputes in charterparty agreements.
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The Mookda Naree [2021] EWHC 558 (Comm)
Summary: The vessel was arrested due to a third-party cargo dispute unrelated to her. The court found that Clause 86, making the charterer responsible for third-party cargo claims, did not apply. However, Clause 47 kept the vessel on-hire during arrest because the sub-charterer’s omission to deal with the claim caused the detention.
Impact: This judgment emphasizes the importance of clear charterparty clauses regarding third-party claims and vessel detention.
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The Smart [2021] EWHC 1157 (Comm)
Summary: The court confirmed that there is no implied term in a charterparty or bill of lading restricting an owner’s right to direct that freight under an owner’s bill of lading should be paid directly to the owner.
Impact: This ruling supports owners’ rights to manage freight payments, ensuring transparency and financial security in shipping transactions.
Further Reading: New court judgment about intercepting freight
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The Nounou [2021] EWCA Civ 718
Summary: The Court of Appeal ruled that when a printed term in a standard form document conflicts with a term in the main contract, the main contract term prevails.
Impact: This case highlights the primacy of bespoke contractual terms over standard form documents, ensuring that the parties’ specific agreements are upheld.
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The Maria [2021] EWHC 2565 (Comm)
Summary: The court determined that for demurrage claims under the Shellvoy 6 form, the date of final discharge should be calculated using local time at the discharge place.
Impact: This decision clarifies time zone considerations in demurrage claims, preventing disputes related to timing and ensuring accurate claim notifications.
Further Reading: Claims Time Bars: Beware the time zone trap
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The CMA CGM Libra [2021] UKSC 51
Summary: The Supreme Court ruled that a vessel is unseaworthy if the passage plan is defective due to the owner or master’s failure to exercise due diligence in its preparation.
Impact: This landmark case reinforces the importance of meticulous passage planning, holding owners accountable for ensuring the seaworthiness of their vessels.
Further Reading: CMA CGM LIBRA: UK Supreme Court upholds unseaworthy judgment following errors in passage planning
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The Eternal Bliss [2021] EWCA Civ 1712
Summary: The Court of Appeal held that demurrage is the exclusive remedy for charterers’ failure to discharge cargo within the agreed laytime, absent a separate breach of the charterparty.
Impact: This judgment confirms the exclusivity of demurrage as a remedy, providing clarity and certainty in charterparty disputes.
Further Reading: Court of appeal reverses judgment on shipowners entitlement to damages on top of demurrage
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The Polar [2021] EWCA Civ 1828
Summary: The court ruled that bills of lading incorporating a voyage charterparty do not exclude the liability of bill of lading holders to contribute in general average, despite the charterer not contributing due to insurance arrangements.
Impact: This case underscores the obligations of bill of lading holders in general average contributions, ensuring equitable sharing of maritime losses.
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The Stema Barge II [2021] EWCA Civ 1880
Summary: The Court of Appeal determined that a company providing employees to monitor weather and operate barge machinery did not qualify as the “operator” under the Limitation Convention 1976, as their role did not involve management or control of the barge.
Impact: This judgment clarifies the definition of “operator” under maritime law, impacting liability and limitation proceedings in maritime incidents.
Conclusion
The top 10 maritime cases of 2021 provide critical insights into the evolving landscape of English maritime law. From clarifying navigational rules to reinforcing contractual terms and obligations, these judgments play a pivotal role in shaping maritime operations and legal practices. Keeping abreast of these developments is essential for stakeholders to navigate the complexities of maritime law effectively.