WAR, TERROR AND CARRIAGE BY SEA
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1 WAR, TERROR AND CARRIAGE BY SEA by KEITH MICHEL Solicitor i ' -:'/.. \ LONDON SINGAPORE 2004
2 Acknowledgments Foreword Preface Table ofcases Table of Legislation Page VJJ jx xj xxj xxxvii 1 WAR AND THE LAW 1.1 Introduction and Background L TheLawsofWar l' TheKeyTest Warbetween China and Japan The Test Applied Communist China and Formosa Earlier Decisions South African Gold 1899 i' Russian Revolution Later Cases and Commentary ThreatofWar Legitimacy ofwar CIVIL WAR AND CIVIL COMMOTION SpanishCivil War The Irish Rebellion London Sufiiragettes Beirut Application of the Bantham Test Civil war War Between Foreign States Palestine Ireland Civil Commotion in the Spinney Case HOSTILJTIES AND WARUKE OPERATIONS Background Considerations World War I Casualties at Sea World War I Enemy Sabotage at Sea World War II Casualties at Sea REVOLUTION, REBELLION AND INSURRECTION Spinney's Case Mozambique 1982/ xiii
3 4.3 Zeppelin Raid London TERRORISM 5.1 The Institute War and Strikes Clauses War and Terror Contrasted Terrorism National Criminal Jurisdiction Terrorism International Jurisdiction Lockerbie 21 December USA 11 September Terrorism An Attempt at an International Definition Hijacking and related offences International Criminal Court HÜLL AND MACHINERY COVER Exclusions for War and Outbreak of War Exclusion of Certain Nuclear Risks Automatic Termination of Cover Marine Insurance Act Insured Periis Under the Hüll Policy Exclusions from the Protection and Indemnity Cover The structure of the cover The CLC Convention OPA The HNS Convention Cruise ships and passengers WAR RISKS AND RELATED PERILS UNDER THE HÜLL COVER Introduction Theft and Takings at Sea Piracy and Violent Theft by Persons from Outside the Vessel Definition and coverage Themodellaw The cases The Alondra Rainbow 7.4 Barratry 7 -" 8 INSURED PERILS UNDER THE INSTITUTE WAR AND STRIKES CLAUSES The Scheme of the Cover The Perils Under Clause Further consideration of the World War I cases The World War II cases Other cases on causation The Perils Under Clause Perils Insured by die Mutual War Risk Associations CAPTURE AND SEIZURE 9.1 Capture The early cases Russo-Japanese War 1904/ World War I Considerations of prize 9.2 Seizure ^ 9-51
4 9.2.1 A review of the concept South Africangold Russian Revolution Spanish Civil War Kuwait Dominican Republic RESTRAINT 10.1 Introduction 10.2 Siege of Paris Imports into Argentina 10.4 World War I 10.5 World War II 10.6 Civil War in China Vietnam War TheBamburi 11 DETAINMENT 11.1 Background Comments 11.2 The Pre-1906 Cases 11.3 The Post-1906Act Cases Detention of the Polurrian Loss of possession of jewellery The loss of the Girl Pat Lossoffreight Perishable cargo Obligation to pay hire Abandonment of the voyage Loss of possession of a motor car The Anita TheBamburi Customs or trading regulations Iran 1987/ Kuwait 1990 The KAC aircraft The Boskalis case Customs or trading regulations Greece Trading regulations or financial cause Australia Kuwait 1990 The British Airways aircraft L ANY TERRORIST OR ANY PERSON ACTING MALJCIOUSLY OR FROM A POLITICAL MOTIVE OTHER PERILS AND EXCLUSIONS IN THE WAR RISK COVER Derelict ordnance Riots Confiscation or Expropriation Russian Revolution The Anita Discretion and jurisdiction Proximate cause Protection and Indemnity Insurance for Liability as to Payment of Fines The Exclusions Under Clause Requisition
5 13.7 Ordinary Judicial Process CONTENTS DUTY OF GOOD FAITH 14.1 Statutory Obligations Under die 1906 Act 14.2 Duties of Good Faith and Disclosure in a War Risk Context The Litsion Pride The Good huck 14.3 Subsequent Cases and the Doctrine of Good Faith The Star Sea The Boskalis case The Grecia Express The Mercandian Continent TheAegeon Material non-disclosure further consideration 14.4 Contractual Obligations Under the International Hüll Clauses 15 WAR AND FRUSTRATION 15.1 General Principles 15.2 The Impact of War 15.3 War between Turkey and Greece World War I 15.5 Spanish Civil War War Between China and Japan World War II 15.8 Suez Canal Closures Iran-Iraq War Kuwait Prohibition Earlier Cases on Force Majeure Law Reform (Frustrated Contracts) Act WAR AND PORT SAFETY 16.1 Definition 16.2 The Evia (No. 2) 16.3 Safe Port Warranty Express or implied warranties Qualified warranties 16.4 Employment and Indemnity 17 WAR RISKS CLAUSES 17.1 Background 17.2 TimeCharterparties New York Produce Exchange Form (NYPE 93) Reasonableness Contraband of war Belligerency The Baltic and International Maritime Council (BIMCO) Uniform Time Charter (Baltime 1939) previous wording International law and sanctions BIMCO Uniform Time Charter as revised 2001 (Baltime 1939) Conwartime Blockade
6 Paris Declaration Respecting Maritime Law Shelltime 4 Time Charterparty (1984) Chamber of Shipping War Risks Clause STB Tanker Time Charterparty BPTIME 3 Time Charterparty Voyage Charterparties Introduction BIMCO Uniform General Charter (as revised 1922 and 1976) (Gencon 1976) Voywar Sabotage BIMCO Uniform General Charter (as revised 1922, 1976, and 1994) (Gencon 1994) Voywar North American Grain Charterparty 1973 (Norgrain 89) ExxonMobil Tanker Voyage Charterparty (ExxonMobil Voy 2000) Shellvoy 5 Voyage Charterparty (1987) BeePeevoy 4 Tanker Charterparty (Form 17-2B) Chevron Voyage Charterparty (Form 26-14) Additional War Expenses Timecharterparties New York Produce Exchange Form (NYPE 93) The Baltic & International Maritime Council (BIMCO) Uniform Time Charter (Baltime 1939) previous wording BIMCO Uniform Time Charter as revised 2001 (Baltime 1939) Conwartime Shelltime 4 Time Charterparty STB Tanker Time Charterparty BP TIME 3 Time Charterparty Voyage charterparties Introductory comments Gencon 1976 Voywar Gencon 1994 Voywar Norgrain ExxonMobil Voy Shellvoy BeePeevoy Chevron Voyage Charterparty (Form 26-14) Hire and freight Paymentofhire Paymentof freight Equitable set-off Cancellation Guidance from the cases The owners' liberty World War II Communist China and Formosa London dock strike Suez Canal closure Iran-Iraq War The Kanchenjunga xvii
7 18 WAR CANCELLATION Introduction Cancellation Clauses in Time Charterparties New York Produce Exchange Form (NYPE 93 ) The Baltic and International Maritime Council (BIMCO) Uniform Time Charter (Baltime 1939) previous wording BIMCO Uniform Time Charter as revised 2001 (Baltime 1939) Conwartime Shelltime 4 Time Charterparty STB Tanker Time Charterparty BPTIME 3 Time Charterparty Cancellation clauses in Voyage Charterparties Gencon 1976 Voywar Gencon 1994 Voywar Norgrain ExxonMobil Voy Shellvoy BeePeevoy Chevron Voyage Charterparty (Form 26-14) Guidance from the Cases REQUISITION Statutory Background Requisition Clauses Timecharterparties New York Produce Exchange Form (NYPE 93) BIMCO Uniform Time Charter as revised 2001 (Baltime 1939) Shelltime 4 Time Charterparty STB Tanker Time Charterparty BPTIME 3 Time Charterparty Voyage Charterparties The Requisition Cases Introduction World War I Compensation under wartime regulations Liners in wartime Service The railway strike The coal strike Russian Revolution Spanish Civil War World War II State Immunity Act Requisition and the British Flag WAR RELATED EXCEPTIONS Relationship with War Risks Clauses Timecharterparties New York Produce Exchange Form (NYPE 93) ActofGod Enemies or acts of public enemies xviii
8 Enemies statutory definition Enemies die cases Restraint of princes, rulers and people All dangers and accidents of the seas BIMCO Uniform Time Charter as revised 2001 (Baltime 1939) Relationship with the Conwartime 1993 Clause Acts of piracy Shelltime 4 Time Charterparty Interpretation Seizure under legal process STB Tanker Time Charterparty Assailing thieves Provision of a bond to release the vessel Barratry BP Time 3 Time Charterparty 20.3 Voyage Charterparties Gencon Norgrain Blockade Insurrections ExxonMobil Voy Shellvoy BeePeevoy Chevron Voyage Charterparty (Form 26-14) Restraint and Demurrage 21 ADDITIONAL WAR RISK PREMIUM 21.1 Charterparty Terms 21.2 The Cases 22 TERRORISM THE INTERNATIONAL RESPONSE PART The Contractual Position 22.2 The International Safety Management (ISM) Code Theregime The cases 22.3 Port State Control 22.4 Background to The International Ship and Port Facility Security (ISPS) Code 22.5 International Maritime Organisation Assembly December SOLAS 1974 Chapter XI-1 Special Measures to Enhance Maritime Safety Automatic Information System (AIS) Ship identification number Continuous Synopsis Record (CSR) Possible legal implications of the CSR 22.7 SOLAS 1974 Chapter XI-2 Special Measures to Enhance Maritime Security The background regulations The ISPS Code Part A The ISPS Code Guidance Notes Part B 23 TERRORISM THE INTERNATIONAL RESPONSE PART Further Work by IMO Relating to die Enhancement of Maritime Security 23.2 European Union (EU) Regulation (EC) No. 725/ xix
9 xx CONTENTS 23.3 Possible Legal Implications of the ISPS Code Structure and function ISM and ISPS compared Analysis of specific issues Introductory comments Offhire Commencement oflaytime Port safety Employment, navigation and safety Due diligence, documents and cancellation Concluding comments Limitationofliability CSI, FDA and C-TPAT Background CSI FDA C-TPAT Containers Shipper-packed Containers Container insurance Insurance othertrades Page APPENDIX 1 The SG Policy Form set out in the Schedule to the Marine Insurance Act APPENDIX 2. Institute War and Strikes Clauses Hulls-Time APPENDIX 3. International Hüll Clauses APPENDIX 4. International Hüll Clauses APPENDIX 5. Convention for the Suppression of Unlawful Acts against the Safety of Maritime Navigation Rome APPENDIX 6. Protocol for the Suppression of Unlawful Acts against the Safety of Fixed Platforms located on the Continental Shelf Rome APPENDIX 7. Institute War and Strikes Clauses Hulls Voyage APPENDIX 8. Institute Voyage Clauses Hulls APPENDIX 9. The Rules for Construction set out in the Schedule to the Marine Insurance Act APPENDIX 10. Law Reform (Frustrated Contracts) Act APPENDIX 11. International Navigating Limits 939 INDEX 941
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