SSA Annual Review 09/10 - Singapore Shipping Association
SSA Annual Review 09/10 - Singapore Shipping Association
SSA Annual Review 09/10 - Singapore Shipping Association
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<strong>SSA</strong> ANNUAL REVIEW 20<strong>09</strong>/20<strong>10</strong><br />
36<br />
ACTIVITIES REPORT<br />
Limitation of Liability – Maritime Claims<br />
In March 20<strong>09</strong>, off the south-east coast of<br />
Queensland, Australia, the Pacific Adventurer lost<br />
31 containers of ammonium nitrate, resulting<br />
in the holing of the vessel and the loss of 270<br />
tonnes of bunker fuel. While the carrier relied<br />
on its right to limit liability under the 1996 LLMC<br />
Convention, the Australian government insisted<br />
that the carrier meet all established claims in full.<br />
In addition to threatening to impose bans on the<br />
company’s shipping and other interests, Australia<br />
was considering to impose a levy on all ships calling<br />
at Australian ports to recoup the shortfall between<br />
the shipowner’s limitation amount and the eventual<br />
total amount of all established claiMs<br />
Australia has subsequently submitted a paper to<br />
the IMO Legal Committee calling for increases to<br />
the 1996 LLMC Convention amounts and also “an<br />
assessment of whether the current provisions under<br />
LLMC remain relevant and, if considered advisable,<br />
recommending possible amendments.” This paper<br />
will be yet another proposal to have the 1996<br />
LLMC Convention limits increased.<br />
The Committee agreed that <strong>SSA</strong> would neither<br />
support any government’s initiatives to raise the<br />
limits of shipowner’s liability nor the enactment of<br />
any unilateral legislation aimed at raising limits of<br />
liability for ship owners.<br />
It was further noted that there would be no<br />
advantage for owners to move from the LLMC<br />
’76 Convention to the LLMC ’96, as there was no<br />
increase in defences to match the increase in limits.<br />
People’s Republic of China (PRC)<br />
Marine Pollution Regulations<br />
The Committee viewed the PRC regulations on<br />
the prevention and control of marine pollution<br />
from ships (State Council Decree (No.561)) which<br />
entered into force in China on 1 March 20<strong>10</strong> with<br />
concern as it bears resemblance to the US Oil<br />
Pollution Act 1990.<br />
The PRC regulations are aimed at the prevention<br />
and control of marine pollution from ships<br />
(including port operations, ship-breaking and waste<br />
disposal) and will be administered by the PRC<br />
Ministry of Transport.<br />
In spite of the implementation of the regulations,<br />
the Committee was concerned that there remained<br />
no clear guidance from the Chinese authorities with<br />
regard to a number of technical and operational<br />
requirements.<br />
The Legal & Insurance Committee, working<br />
together with the other <strong>SSA</strong> Operational<br />
Committees, has continued to seek clarification on<br />
the actual implementation guidelines on the PRC<br />
regulations.