Admiralty law or maritime law is a body of law that governs nautical issues and private maritime disputes. Admiralty law consists of both domestic law on maritime activities and private international law governing the relationships between private parties operating or using ocean-going ships. While each legal jurisdiction usually has its legislation governing maritime matters, the international nature of the topic and the need for uniformity has, since 1900, led to considerable international maritime law developments, including numerous multilateral treaties. We can use the terms of maritime law and admiralty law interchangeably.
Maritime (admiralty) lawyers are specialized lawyers that provide legal counsel
and representation to those involved in the business of shipping and its related
areas.
The maritime law covers many topics. These include:
rights of
seamen, longshoremen, and passengers;
collisions and allisions;
responsibility for cargo loss and/ or damage;
bill of lading disputes;
marine pollution;
charter party law;
towage and pilotage;
maritime liens
and attachments;
marine insurance disputes;
general average;
salvage and finds, among other topics.
Maritime law used to apply only to American waters within the ebb and
flow of the tide. However, it now covers any waters navigable within the United
States for interstate or foreign commerce. Admiralty jurisdiction also includes
some maritime matters not involving interstate commerce, for example,
recreational boating.
The courts of the United States and Congress strive to create a uniform
body of maritime law. The U.S. federal courts have original jurisdiction over
admiralty and maritime claims. It arises out of Article 3 - Section 2 of the
United States Constitution. Therefore, maritime cases are primarily heard in the
federal courts, and the federal maritime law applies.
Maritime law in the United States developed from English maritime law
and the maritime laws of other / older seafaring nations. It is an old body of
law dating back to the earliest days of navigation and commerce.
Maritime law is created in different ways:
Maritime law is created by judicial opinions rendered by the federal courts.
These cases are not only binding upon the parties, but also establish a common
or general maritime law that acts as a judicial precedent for all cases to follow.
Maritime law is also created by legislation, routinely at the federal level by
U.S. Congress, for example, the U.S. Carriage of Goods By Sea Act and the
Jones Act.
Maritime law is also created via international conventions, for example, the
Civil Liability Convention (which is an international convention concerning
liabilities arising out of marine pollution caused by a ship)
Maritime law is also created by the decisions of marine arbitration panels that
create a body of commercial law (usually when resolving charter party disputes).
Panama registered Nordic Odyssey
Maritime law is different from the Law of the Sea. Maritime law is a private
body of law primarily governing the relationships between people and
companies. It is the body of law that governs the shipping business.
The Law of the Sea is a body of public international law. It is the body of
law that primarily regulates the relationships between nations. It addresses
crucial questions that concern a nation's sovereignty over its territorial sea and
economic zones, the freedom the seas, the law of piracy, among many other
topics.
Maritime (admiralty) lawyers specialize in maritime law. However,
there is no special law school for this. In the U.S., a person becomes a maritime
lawyer by graduating from a law school and by appearing a state bar exam (like
any other lawyer. That person may then go to work for a law firm that has clients
that are in shipping or shipping related fields. The cases the firm handles will
primarily be maritime.
Maritime lawyers will also work for P, and I Clubs, hull insurers, and
be 'in house" counsel to ship owning companies. While most maritime lawyers
concentrate their practices in the maritime law – they are free to handle nonmaritime
cases as well (and often do).
There are a few law schools in the U.S. that offer more maritime law
courses than others, such as Tulane University Law School in New Orleans.
Tulane even offers a post J.D. program in the maritime law. These are great
programs – however - it is not necessary to attend them to practice
maritime law.
Maritime law firms in the U.S.A. are located primarily in port cities – New
York, Houston, New Orleans, Seattle, etc. There is a huge presence in London
and elsewhere. Many maritime lawyers have experience in the
shipping business and attended a maritime college – but not all.
Resources:
Further information available in some well respected and long-established firms like:
Freehill, Hogan & Mahar LLP: Got outstanding legal expertise and experience with competitive pricing for the maritime industry. Attorneys and staff take the time to learn the unique needs of each client, adapt them to each situation, and communicate strategy and expected results.
Maritime Law Association of the
United States (M.L.A.): The objectives of M.L.A. is to advance reforms in the Maritime Law of the United States. It helps facilitate justice in the U.S. administration, promote uniformity in its enactment and interpretation, and furnish a forum for the discussion and consideration of problems affecting the Maritime Law and its administration. It participates as a constituent member of the Comité Maritime International and as an affiliated organization of the American Bar Association. It acts with other associations to bring about greater harmony in the shipping laws, regulations, and practices of different nations.
Related articles
General Average & The York Antwerp Rules The law of General Average is a principle of maritime law whereby all stakeholders in a sea venture proportionally share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole in an emergency. It is a unique maritime concept. One of the most
ancient aspects of shipping is the general average. When an intentional sacrifice of property is made onboard a ship to avoid a common peril, the general average law requires all of the parties to the maritime adventure that benefited by the intentional sacrifice to contribute money on a pro-rata basis.
P&I Clubs guideline The P&I Clubs are correctly called Protection and Indemnity Associations and number around 20 worldwide, with the majority being the United Kingdom-based. The shipowner in taking out insurance with a particular association becomes a member of that Club. The Clubs are mutual, which means that all costs involved in providing cover or paying out a claim to anyone are shared by all members. It is achieved by setting a rating or premium for the Owner, known as an "advance call," based on the Owner's history and exposure to risk.
Marine cargo insurance underwriters Ships operate in a difficult environment, and cargo may be lost or damaged
during domestic and international transit. However, ocean carriers are well protected under the law
against responsibility for loss or damage to cargo that might arise during the
transportation of goods.
Hull & Machinery underwriters
A hull and machinery underwriter provides insurance coverage for boats, ships, and other naval assets. It gives protection to shipowners against the hull, machinery, and onboard equipment damages in the event of any perils encountered while on the water, including collision with another vessel, natural obstacles, and other structures as well as storms and other natural disasters.
Procedure for insurance claim
A ship is insured against various risks by the Owner taking out different insurance policies. However, for many reasons, insurance claims often being denied by marine insurance providers. A shipowner can prosecute a claim accurately and successfully. The Master needs to send full details and documentation relating to any accidents or incidents resulting in damage to the ship, property, cargo, or personal injury. Nautical Institute publication, "The Mariner's Role in Collecting Evidence," is a good source of guidance to shipmasters.
The role of a insurance broker
Marine insurance brokers play a significant role in helping companies and individuals procure marine cargo insurance, hull and machinery insurance, P and I cover, and other forms of insurance as the case may be. They can canvas the worldwide marine insurance market. The goal is to assist in getting the best terms of insurance cover at the most competitive premium rates.
Marine salvage procedures
Marine salvage contracts fall into two main categories. First, those which enable salvage services to be rendered on the basis that the compensation to be paid to the salvors will be determined after the completion of the services. It is done by direct settlement or if the parties cannot agree, then by a court or an arbitrator
Role of a freight forwarder
A freight forwarder, forwarder, or forwarding agent, is a person or a business entity that organizes shipments for individuals or corporations to get the goods from the point of origin to the desired market or from a producer directly to the customer or a distribution center. A freight forwarder dispatches shipments via a common carrier and books or arranging spaces for those shipments on behalf of shippers.
How a Non-Vessel Operating Common Carrier ( NVOCC) differs from a freight forwarder?
A NVOCC (Non-vessel Operating Common Carrier) is "a common carrier that holds itself out to the public to provide ocean transportation, issues its bills of lading or equivalent documents, but does not operate the vessels that transport cargo." An NVOCC is a carrier. It enters into a contract of carriage with the cargo shipper. It undertakes responsibility for the carriage like a shipowner that owns a vessel. However, the NVOCC is a carrier that does not own or operate the vessel used to perform the carriage.
P & I Insurance cover and Members of IG club
At the heart of P and I is the concept of "mutuality." Shipowners form a nonprofit association to protect and indemnify one another against third party liabilities. Unlike commercial insurance, the insured ship owners, meaning the "members" of the Club, are both the insurer and the insured. Each P and I Club is controlled by its members.
Role of shipbrokers
London and New York have always been viewed as major shipbroking centers. In recent years, many U.S. ship brokerage firms have relocated to offices in Stamford and Greenwich, Connecticut, and nearby communities. Of course, there is a large shipbroking presence in Singapore, Hamburg, as well as other cities.
Sale & purchase brokers
Sale and Purchase Brokers (S and P Brokers) are highly specialized shipbrokers. Their clients are typically ship owners. S and P Brokers serve as intermediaries in the business of selling and buying ships. They assist in the sale and purchase of second-hand tonnage and newbuilding. Their compensation is normally in the form of a commission.
Ship agency services
A ship's agent works on the front lines, and there might involve an unlimited number of issues in port. The agent must work towards solving these problems. An agent needs to learn a lot fast about ships and cargo.
Role of a ship management company
Ship management companies are located in the world's maritime centers. Many companies manage large fleets on behalf of numerous ship owners. Many of the larger management companies also own vessels. Essentially, the decision to outsource a ship management function is a financially driven one. In most cases, outsourcing of ship management services means that the shipowner can conduct business at a reduced cost, primarily due to reduced in-house staff and resources.
Ship finance considerations
Ship finance is somewhat different from other asset-based lendings such as real estate finance. After all, shipping business earnings can be quite volatile and, therefore, less predictable. Additionally, the collateralized asset (the ship) is extremely mobile. The traditional method for ship finance was private resources.
Ship recycling industry
Scrapping ships (also known as ship breaking or ship demolition) is a dangerous and controversial part of the shipping business. Ships have a life span of 20 – 30 years – sometimes a little more -sometimes a little less. Ships wear out and/, or there may be a lack of spare parts. After a while, they no longer make sense economically. The shipowner needs to make a decision – continue to repair or scrap.
Ship registry procedure
To trade internationally, a ship must have a nationality. Without being registered under certain flag states, a ship cannot enter another state's geographic limit. Once registered, a ship becomes subject to the laws of a registering nation. Registration makes the ship entitled to military protection, and therefore it is an extension of that nation anywhere in the world.
Maritime security concerns
Maritime security issues affect how ship owners, charterers, cargo interests, ports and terminals, and their insurers do business. There is the added expense to deal with. There has also been an increase in the number of international conventions and domestic legislation geared towards furthering maritime security.
How maritime law works in the United States? Maritime law used to apply only to American waters within the ebb and flow of the tide. However, it now covers any waters navigable within the United States for interstate or foreign commerce. Admiralty jurisdiction also includes some maritime matters not involving interstate commerce, for example, recreational boating.
The Master’s Responsibility during Salvage Operation
Request for Salvage -
The Master shall normally request salvage after consultation with the Company. However, he has complete authority to seek salvage assistance without referencing the Company if he considers this necessary.
Requirement of towing arrangement in oil tankers, readyness, & training onboard
All Oil, Chemical and Gas Tankers above 20000 DWT, constructed on or after 1st July, 2002, are equipped with an “Emergency Towing Arrangement (E.T.A.) both Forward And aft to provide the ship with a rapidly deployed towage capacity in an emergency.
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