After the June 2022 enactment of the Ocean Shipping Reform Act (OSRA), the Federal Maritime Commission (FMC) issued a notice of proposed rulemaking (NPRM) in October 2022, relating to demurrage and detention billing requirements. The FMC proposed several actions in the NPRM, including adopting a list of minimum information that common carriers must include in demurrage or detention invoices, as mandated in OSRA and codified at 46 U.S.C. 41104(d)(2), and additional information to be included in or with a demurrage or detention invoice; further defining prohibited practices by clarifying which ...

Watson Farley & Williams (“WFW”) advised long-standing client Höegh LNG Ltd (“Höegh LNG”) on the refinancing of the Höegh Esperanza and Höegh Gannet floating storage and regasification units (“FSRUs”) that will service Germany’s new floating liquefied natural gas (“LNG”) terminals in the North Sea ports of Wilhelmshaven, Lower Saxony, and Brunsbüttel, Schleswig-Holstein. The FSRUs are two of five vessels contracted by the German government to help achieve its goal of energy independence from Russia. WFW London and Germany advised Höegh LNG on a new ten-year US$685m loan to refinance the ...

Global, sector-focused law firm HFW has continued to support the development of a new Geneva Declaration designed to define and defend the human rights of the global maritime population and those crossing the world’s oceans and seas. HFW previously carried out a joint review of the Declaration on behalf of UK-based NGO Human Rights at Sea (HRAS), which produced the proposed international convention in 2022 following three years of research and drafting by a team of experts in public, international, humanitarian and refugee law. The firm has now translated the ...

As a result of the recent pandemic, maintaining the chain of supply has proven to be difficult for businesses across a wide range of industries. At the peak COVID-19 lockdowns, demand for many products decreased, but as the world returns to normal and demand continues to increase dramatically, the shipping industry finds itself struggling to keep up. Cost per container has increased rapidly from around 1,500 USD in 2019 to 7,600 USD in July of 2022 and peaking at over 10,000 USD in September of 2021, impacting the market for ...

Squire Patton Boggs is pleased to announce that Michael Wray has joined the firm as Of Counsel in the Litigation Practice Group resident in the Houston office and part of the firm’s global Commodities and Shipping Industry Group. Mr. Wray joins from the Houston office of English law firm HFW. Mr. Wray is an experienced maritime litigator, with extensive experience handling shipping litigation and arbitration cases in multiple jurisdictions, as well as energy disputes, commercial litigation, marine environmental matters and maritime insurance coverage matters. He is also experienced in advising ...

Watson Farley & Williams (“WFW”) has advised BPER Banca S.p.A. (“BPER”) on a US$6.5m loan granted to Bulk Malta Limited (“Bulk Malta”), a Rimorchiatori Riuniti Group company controlled by Crystal Maritime Holding S.r.l.. The main purpose of the loan is to refinance the existing financial debt relating on Bulk Malta’s Hampton Bridge Panamax bulk carrier vessel built in Korea in 2013. BPER Banca, formerly known as Banca Popolare dell’Emilia Romagna S.C., is a commercial and co-operative bank and the parent of BPER Group, one of Italy’s leading banking group. It ...

What is the EU ETS and how is it changing? The EU Emissions Trading Scheme (“EU ETS”) is a legislative scheme by which the EU caps emissions of greenhouse gases from certain industries by requiring emitters to surrender emission allowances to offset the gases they emit. A limited number of emitters are granted some free emission allowances, but most allowances must be purchased in auctions arranged by the European Energy Exchange (the “EEX”), which allowances may then be traded, before being surrendered to a competent authority by the emitters. Hence, ...

Owners claimed for unlawful deductions from hire by charterers in relation to alleged breach of the charterparty speed and performance warranty. The dispute was referred to arbitration under the LMAA Small Claims Procedure. The relevant charterparty clauses are as follows: Recap: “… – SPD/CONS: AVERAGE UNDER GOOD WEATHER AND SMOOTH SEA CONDITIONS ABT 15 KN B / ABT 14 KN L ON ABT 33 MTS IFO 380 CST PLUS ABT 0.15 MT LSMGO … – AN UNDERPERFORMANCE CLAIM CAN ONLY BE SUBMITTED IN RESPECT OF DAYS ON WHICH THE VESSEL ...

Background The MV Giant Ace (‘the vessel’) was transporting a cargo of coal under bills of lading on CONGENBILL form. As the original bills of ladings were not available at the discharge ports, the cargo was discharged against Letters of Indemnity (‘LOIs’) that the charterers issued to KCH Shipping (‘the carriers’). The claimant, financiers of part of the cargo (‘FIMBank’) had been left unpaid under the financing agreement, and accordingly sought to exercise their right for security by demanding delivery of the cargo under the bills of lading. However, the ...

The United States Court of Appeals for the Fifth Circuit upheld the lower court’s dismissal of claims against a time charterer, China Navigation Co. (the ‘charterers’). The court rejected the invitation to expand a charterer’s independent tort duties, and, in doing so, recognised the potentially far-reaching ramifications such a ruling would bring. District Court in the Southern District of Texas decision China Navigation time-chartered the M/V Yochow from its owner, Grand Famous Shipping Ltd (the ‘owners’). The charterparty included the customary clause where the owners retained control over the ship ...

In September 2022, the signatories to the Poseidon Principles for Financial Institutions and the Poseidon Principles for Financial Institutions for Marine Insurance announced a more ambitious emissions reductions policy. The Poseidon Principles, which date back to 2019, provide a framework agreement aimed at aligning shipping investors with the IMO 2050 requirement to reduce total annual greenhouse gas emissions by at least 50% by 2050 compared to 2008 – whilst pursuing efforts to phase them out entirely by 2100. The 30 shipping banks and 17 marine insurance providers and brokers announced ...

On June 16, 2022, President Joe Biden signed the Ocean Shipping Reform Act of 2022 (OSRA). OSRA’s objective is to reduce shipping costs and address concerns relating to supply-chain challenges. OSRA provides the Federal Maritime Commission (FMC) with more authority to address specific issues impacting supply chains. In addition, OSRA is a springboard for additional initiatives for the FMC to implement through the rulemaking process. OSRA primarily targets the costs and complications surrounding detention and demurrage. Beneficial cargo owners (BCOs) face substantial costs when both ocean carriers and marine terminals ...

When there is a need to clear the muddy legal waters of quick changing sanctions or guidance is required on how to tackle the biggest challenges of the day regarding sustainability, Wikborg Rein’s Herman Steen and Oddbjørn Slinning are ideally placed to steer us towards some answers. “It is a constantly changing picture, which is extremely challenging for a lot of our clients. Basically, there has been a huge increase in the volume of cases when it comes to sanctions-related issues.” How do you navigate your way through a plethora ...

A Global Sulphur Cap reducing the maximum sulphur content in the fuel used by ships has been effective since the 1st of January 2020. This decision is known as ‘IMO 2020’ and is applicable to all ships, besides those operating within Sulphur Emission Control Areas (SECA) where the regulations are more stringent. ‘IMO 2020’ is aimed at reducing sulphur oxide emissions, therefore bringing about various benefits to the environment and humans. Sulphur oxide is one of the many harmful biproducts of burning marine fuel. Said combustion emits significant amounts of ...

The United Nations General Assembly adopted the UN Convention on the International Effects of Judicial Sales of Ships on 7 December 2022. The Convention looks to ensure certainty on an international scale regarding legal aspects of a ship’s judicial sale. Introduction The enforcement of maritime claims through an admiralty court play a fundamental role in resolving disputes that arise out of shipping and navigation by sea. From the viewpoint of an individual or entity that has been aggrieved, a ship or its owner can be held accountable by enforcing a ...