& ADMIRALTY JURISDICTION IN SOUTH AFRICA JOHN HARE

AW & ADMIRALTY JURISDICTION IN SOUTH AFRICA JOHN HARE B Comm LLB (Cape) LLM (Lond) Attorney and Notary of the High Court of South Africa Faculty of Law University of Cape Town PUBLISHED BY JUTA & CO, LTD 1999

TABLE OF CONTENTS PREFACE ACKNOWLEDGMENTS TABLE OF CONTENTS TABLE OF CHAPTERS TABLE OF APPENDICES TABLE OF STATUTES TABLE OF INTERNATIONAL CONVENTIONS TABLE OF CASES TABLE OF CASE CROSS-REFERENCES TO THE ADMIRALTY JURISDICTION REGULATION ACT, BY SECTION TABLE OF PRINCIPAL AUTHORITIES CITED TABLE OF WEBSITE URL'S RELATING TO SHIPPING LAW vii xi xiii xxvii xxix xxxi xxxiii xxxv lvii lxv lxvii PARTI ADMIRALTY JURISDICTION & PRACTICE CHAPTER I ADMIRALTY JURISDICTION THE JURISPRUDENCE OF ADMIRALTY IN SOUTH AFRICA 1-2 EARLY EUROPEAN MARITIME LAW 4 1-3 THE ROMAN-DUTCH WRITERS 8 1-4 EARLY ENGLISH MARITIME LAW 9 1-5 THE RECEPTION OF ENGLISH MARITIME LAW INTO SOUTH AFRICA - THE ERA BEFORE THE 1983 ADMIRALTY JURISDICTION REGULATION ACT, 1983 14 1-6 MODERN SA ADMIRALTY JURISDICTION: TOWARDS THE ADMIRALTY JURISDICTION REGULATION ACT, 1983 15 1-7 THE UBIQUITOUS SEC 6: THE LAW APPLICABLE TO ADMIRALTY MATTERS IN SOUTH AFRICA 17 1-7.1 Maritime claims subject to old English jurisdiction 25 1-7.2 Novel South African jurisdiction 26 1-8 THE SOUTH AFRICAN COURT STRUCTURE - MAGISTRATES COURT V HIGH COURT & ADMIRALTY V COMMON LAW JURISDICTION 27 1-9 THE STATUTORY ACTION IN REM & THE MARITIME LIEN 31 1-10 MARITIME ARBITRATION 36 CHAPTER 2 ADMIRALTY PRACTICE THE ADMIRALTY JURISDICTION REGULATION ACT, 1983 AND THE ADMIRALTY COURT RULES, 1997 2-1 MARITIME CLAIMS 44 2-1.1 Judgements and arbitration awards 46 2-1.2 Contribution, indemnity, damages or security 46 2-1.3 Wrongful arrest ^ 2-1.4 Ownership and possession 47 2-1.5 Mortgages and other like charges 48 2-1.6 Damage done by or to a ship 49 2-1.7 Loss of life or personal injury 51 2-1.8 Carriage of goods 2-1.0 Salvage, towage and pilotage 52 2-1.10 Necessaries supplies 52 2-1.11 Remuneration of agents and brokers 53 2-1.12 Shipbuilding and repair 53 2-1.13 Port dues 2-1.14 Master and seamen's wages 54 2-1.15 General average and insurance 55 51 54

XIV TABLE OF CONTENTS 2-1.16 Forfeiture 55 2-1.17 Limitation of liability 55 2-1.18 Distribution of a fund 56 2-1.19 Maritime liens 56 2-1.20 Oil pollution 56 2-1.21 Piracy, sabotage or terrorism 57 2-1.22 Prize 57 2-2 ARRESTS & ATTACHMENTS OF MARITIME PROPERTY 57 2-2.1 The procedure of the attachment in personam 59 2-2.1.1 The Act and attachment - s 3(3)(a) 59 2-2.1.2 Anticipatory attachments 60 2-2.1.3 Essential averments for an attachment 62 2-2.1.4 The onus in attachment applications 62 2-2.1.5 The order of court and service 63 2-2.1.6 Challenging the order 63 2-2.2 The procedure of the arrest in rem 64 2-2.2.1 The Act and arrests - ss 3(4) and (5) 64 2-2.2.2 Essential averments for an arrest 65 2-2.2.3 Service of an arrest warrant 66 2-2.2.4 Challenging the arrest 66 2-2.3 To arrest or to attach? 67 2-2.4 Who may arrest or attach? 70 2-2.5 What may be arrested or attached? 71 2-2.5.1 Ship, cargo & freight 71 2-2.5.2 Bunkers 72 2-2.6 Associated ship arrests & attachments 77 2-2.7 Charterers as maritime debtors 82 2-2.8 Security arrests 83 2-2-9 Security for costs & counter security 87 2-2.10 The standard of proof in arrest & attachment applications summarised 89 2-3 JOINDER: SECTION 5(1) 90 2-4 DECLINING JURISDICTION & STAY OF PROCEEDINGS: SECTION 7(1) 91 Forum non conveniens 92 Onus in security applications 94 Exclusive jurisdiction and law clauses 95 2-5 RELEASE UPON SECURITY & CAVEAT PROCEDURES 97 2-5.1 Release upon Security 98 2-5.2 Caveat Release 100 2-6 MISCELLANEOUS POWERS OF THE COURT IN ADMIRALTY 101 2-6.1 Appointment of Referee 101 2-6.2 Awarding of Interest 102 2-6.3 Judgements in foreign currency 103 2-7 EVIDENCE, INSPECTION & DISCOVERY 103 2-7.1 Hearsay evidence 103 2-7.2 Inspection 104 2-7.3 Discovery 104 2-8 JUDICIAL SALE & THE FUND m COURT 105 2-9 THE RANKING OF CLAIMS AGAINST THE FUND 106 2-10 The legal effect of a judicial sale & lodging security 110 2-11 The Admiralty Rules & the Uniform Rules 112

TABLE OF CONTENTS XV PART II MARITIME LAW CHAPTER 3 THE SHIP 3-1 THE SHIP IN LAW 121 3-1.1 Definitions of a ship in law 121 3-1.2 Shares in a ship 123 3-1.2.1 Part (co-) owners 124 3-1.2.2 Joint owners 125 3-1.2.3 Corporate shipowners 126 3-2 THE SHIP IN POLICY: THE FLAG 126 3-2.1 Nationality of ships 128 3-2.2 Flags of convenience 131 3-2.3 The United Nations Convention on the Conditions for the Registration of Ships, 1987 134 3-3 APPLICABLE LAW 135 3-4 OWNERSHIP & REGISTRATION OF SHIPS: THE SHIP REGISTRATION ACT, 1998 137 3-4.1 Ships entitled to be registered in South Africa 137 3-4.1.1 Merchant vessels, neither small nor fishing boats 138 3^.1.2 Fishing vessels 139 3-4.1.3 Non-fishing small vessels 140 3-4.2 Dual registries: Chartering into & off the register 140 3-4.3 Obligation to register 143 3-4.4 Refusal by the Registrar to register 144 3-4.5 Registration of South African ships 145 3-4.5.1 The register 145 3-4.5.2 Registration pre-requisites: marks, tonnage & name 145 3-4.5.3 Certificates of registry 146 3-4.5.4 Corrections & revisions 147 3-4.5.5 Removal from the register 148 3-4.6 Registered agents 149 3-4.7 Offences, penalties & forfeiture 149 3-4.8 Transitional provisions 150 3^.9 South Africa & its international obligations 151 3-5 SMALL CRAFT REGISTRATION & LICENSING 152 3-6 SHIP SALES, TRANSFER & TRANSMISSION OF OWNERSHIP 153 3-6.1 Memorandum of agreement 153 3-6.2 Bill of Sale 154 3-6.3 Passing of title 154 3-6.4 Change of ownership by transmission 155 3-6.5 Disenutlement upon transmission 155 3-6.6 Registering-in second hand tonnage 156 3-7 SHIP'S MORTGAGES 156 3-7.1 Historical origins of hypothecs & mortgages 156 3-7.2 Applicable law 159 3-7.3 Equitable & statutory mortgages 160 3-7.4 Content of mortgage agreements - the collateral deed 161 3-7.5 The Ship Registration Act: registration & deletion of mortgages 3-7.5.1 Registration of a mortgage 162 3-7.5.2 Transfer of a mortgage 163 3-7.5.3 Transmission of a mortgage 163 3-7.5.4 Deletion of a mortgage 163 3-7.6 Rights of the mortgagee on default 164 3-7.6.1 Arrest and sale 164 3-7.6.2 Sale without court recourse 165 3-7.6.3 Taking possession 165

XVI TABLE OF CONTENTS 3-7.6.4 Foreclosure 166 3-7.7 Priorities 166 Ranking on insolvency 167 Future ranking of the mortgagee 168 CHAPTER 4 WRECK 4-1 THE JURISPRUDENCE OF WRECK & APPLICABLE LAW 171 4-1.1 Statute law 172 4-1.2 Admiralty jurisdiction & applicable law 173 4-2 POSSESSION OF WRECK AT COMMON LAW 177 4-3 ABANDONMENT OF WRECK: OCCUPATIO OR SALVAGE? 180 4-4 'FINDING'OR OCCUPATIO OF ABANDONED WRECK 180 4-5 TREASURE, WRECK & THE FISCUS 187 4-6 HISTORICAL WRECK 189 The National Monuments Act and wreck 189 Wreck on the continental shelf and beneath the high seas 190 4-7 WRECK REMOVAL CHAPTER 5 MASTER & CREW 5-1 JURISDICTION & APPLICABLE LAW 196 5-2 THE MASTER 197 5-2.1 The master's relationship with the owner 198 5-2.2 Duties of the master at common law 202 5-2.3 Powers of the master on board ship 203 5-2.3.1 Common law disciplinary powers 203 5-2.3.2 Statutory disciplinary powers 204 5-2.3.3 Other statutory powers 205 5-3 THE CREW 205 5-3.1 Engagement of crew 206 5-3.2 Cadets & apprentice officers 207 5-3.3 Certification of master & crew 208 5-3.4 Crew wages 209 5-3.5 Termination of employment 211 5-3.6 Desertion, absence without leave & discipline 211 5-3.7 The distressed seaman 213 5-3.8 Working conditions on board ship 214 5-4 CREW WAGE CLAIMS UNDER THE ADMIRALTY JURISDICTION REGULATION ACT 214 5-5 THE LABOUR RELATIONS ACT, 1995, & THE SEAMAN 216 5-6 THE BASIC CONDITIONS OF EMPLOYMENT ACT, 1997 218 5-7 THE COMPENSATION FOR OCCUPATIONAL INJURIES & DISEASES ACT,1993 219 CHAPTER 6 SAFETY AT SEA 6-1 THE MERCHANT SHIPPING ACT & REGULATIONS 224 6-1.1 The safety conventions 227 The conventions listed 228 6-1.2 Survey & certification 228 Certificates required 229 6-1.3 The International Safety Management (ISM) Code 230 6-1.3.1 Application of the ISM Code in South Africa 231 6-1.3.2 Legal implications of the ISM Code 233

TABLE OF CONTENTS xvu ISM and limitation of liability 233 ISM and due diligence under the Hague-Visby Rules 233 ISM and breach of assurance warranty 234 Discovery of ISM documentation 234 6-1-4 The Official Log 235 6-2 THE SOUTH AFRICAN MARITIME SAFETY AUTHORITY [SAMSA] 236 6-3 CLASSIFICATION SOCIETIES 238 Main societies listed 239 fn Liability of classification societies 240 6-4 PORT STATE CONTROL 241 6-4.1 Flag state control distinguished 242 6-4.2 Coastal state control distinguished 243 6-4.3 The nature & origins of port state control 245 6-4.4 The role of international organisations 246 6-4.5 Regional initiatives - the Memoranda of Understanding 247 6-4.6 Domestic enabling measures 250 6-4.6.1 The Merchant Shipping Act, 1951 250 6-4.6.2 The Merchant Shipping (ISM Code) Regulations, 1998 252 6-4.6.3 The Marine Traffic Act, 1981 252 6_4.6.4 The Marine Pollution (Prevention & Control) Act, 1981 253 6-4.6.5 The SAMSA Act, 1998 253 6-4.7 Appeal, costs & wrongful detention 253 6-5 NAVIGATION & COLLISIONS 255 6-5.1 Applicable law 256 6-5.2 Fault of both vessels: apportionment of damages 257 6-5.3 Assessment of fault in collision cases 261 6-5.4 The measure of damages 264 6-5.5 The International Regulations for the Prevention of Collisions at Sea, 1972 268 Part A: General Rules 269 Part B. Steering & Sailing Rules 269 Sec 1 All visibility conditions 269 Sec 2 Vessels in sight of each other 270 Sec 3 Vessels in conditions of restricted visibility 272 6-5.6 Formal requirements 273 CHAPTER 7 SALVAGE 7-1 THE HISTORY OF SALVAGE & ITS LAW 278 7-2 APPLICABLE LAW 282 7-2.1 Section 6 of the Admiralty Jurisdiction Regulation Act, 1983 283 7-2.2 The Wreck & Salvage Act, 1996 & The International Convention on Salvage, 1989 284 7-2.2.1 Definitions 285 7-2.2.2 Application and interpretation of the Convention 285 7-2.2.3 Assessors 286 7-2.2.4 Statutory duty to assist vessels in distress 286 7-2.2.5 Formalities 287 7-2.2.6 No forfeiture of crew right to salvage 288 7-2.2.7 The state and salvage 288 7-3 GENERAL PRINCIPLES OF SALVAGE LAW: EQUITY & PUBLIC POLICY 289 7-4 ESSENTIAL ELEMENTS OF TRADITIONAL SALVAGE 291 7-4.1 Salvage circumstances of particular nature 292 7-4.1.1 Voluntariness 292 Traditional law and voluntariness 292 No prior agreement 292

xvm TABLE OF CONTENTS No pre-existing duty 294 Not purely in self interest 295 The Convention & voluntariness -Art 17 295 7-4.1.2 Danger 296 Traditional law and danger 296 The Convention and danger - Art 1 297 7-4.1.3 Success 297 Traditional law and success 297 The Convention and success -Art 12 299 7-4.2 Salved maritime property 300 7-4.2.1 Traditional law and maritime property 300 7-4.2.2 The Convention and salvagable property -Art 1 301 7^.3 Salved Fund 302 7-4.3.1 Traditional law and the reward 302 7-4.3.2 The Convention and the award -Art 13 304 7^.4 Salvor's misconduct 306 7-4.4.1 Traditional law and salvor's misconduct 306 7-4.4.2 The Convention and salvor's misconduct-art 18 306 7-4.4.3 Salvors and pollution 308 7-5 LIFE SALVAGE 309 The Convention and life salvage - Art 16 311 7-6 THE TANKER PHENOMENON: FUNDAMENTAL CHANGES TO TRADITIONAL SALVAGE 312 The lessons of the Amoco Cadiz 315 7-7 LLOYDS STANDARD FORM, LOF 1980-95 317 Principal terms of Lloyd's Standard Form, 1995 318 7-8 SPECIAL COMPENSATION: THE NEW REGIME 320 The Safety Net 320 Article 14 special compensation: No cure-some pay 321 SCOPIC Clause 323 7-9 SUBMISSION & PREPARATION OF SALVAGE CLAIMS 324 7-10 ENFORCEMENT, SECURITY, ARBITRATION & APPEAL 326 CHAPTER 8 TOWAGE 8-1 THE HISTORY OF TOWAGE & rrs LAW 330 8-2 APPLICABLE LAW 331 8-3 THE NATURE & TYPES OF TOWAGE 332 8-3.1 Daily hire, lumpsum or fair rate 333 8-3.2 Ordinary and extraordinary towage 333 8^t TOWAGE OR SALVAGE? 333 8-5 MASTER'S AUTHORITY TO BIND HIS OWNERS & CARGO 337 8-6 RELATIONSHIP BETWEEN TUG & TOW: COMMAND & RESPONSIBILITY 338 8-7 COMMENCEMENT & CONCLUSION OF TOW 340 8-8 DUTIES OF THE TOG 340 8-8.1 Warranty of seaworthiness of tug & ability to perform the towage 340 8-8.2 Supply a particular named tug or tug of particular capacity 342 8-8.3 Skill of performance 343 Tug's expected performance 343 8-9 DUTIES OF THE TOW 345 8-9.1 Duty of disclosure: condition of the tow 345 8-9.2 To be in convenient position 346 8-9.3 Payment of towage fee 346 8-10 LIABILITIES 347 8-10.1 Damage to tug & tow 347

TABLE OF CONTENTS xix 8-10.2 Damage to third party property 347 8-10.3 Limitation of liability 347 8-11 STANDARD TOWAGE CONTRACTS 349 CHAPTER 9 PILOTAGE 9-1 HISTORICAL PILOTAGE & APPLICABLE LAW 351 English Admiralty Court jurisdiction over pilotage 353 South African pilotage legislation 354 9-2 VOLUNTARY & COMPULSORY PILOTAGE 355 The Legal Succession to the South African Transport Services Act, 1989 356 9-3 FUNCTIONS OF A PILOT DIVIDED COMMAND 359 9-4 LIABILITIES FOR THE CONSEQUENCES OF PILOT ERROR 363 CHAPTER IO PORTS 10-1 THE OWNERSHIP & OPERATION OF SOUTH AFRICAN PORTS 369 10-1.1 The Harbour Regulations, 1983 371 10-1.1.1 Regulations concerning ships outlined 371 10-1.1.2 Regulations concerning cargo outlined 372 10-2 STEVEDORES, LANDING & FORWARDING AGENTS 374 10-3 SHIP'S AGENTS 375 CHAPTER II MARITIME CASUALTIES & LIABILITIES 11-1 UMITATION OF LIABILITY 380 11-1.1 The history of limitation of maritime claims 380 11-1.2 Tonnage limitation under s 261 of the Merchant Shipping Act, 1951 384 11-1.2.1 Actual fault or privity 386 11-1.2.2 The limitation fund under s 261 394 Section 261 Rand equivalent values compared 395 11-1.2.3 Competing funds & forum shopping 396 11-1.3 The Convention on the Limitation of Liability for Maritime Claims, 1976 397 1976 Convention Rand equivalent values compared 399 11-1.4 Limitation and wreck removal 400 11-1.5 Limitation and the ISM Code 401 11-1.6 Limitation for cargo claim liability under COGSA, 1986 401 11-1.7 Third party liability: The Himalaya Clause 402 11-1.8 Statutory exclusion of liability for the consequences of fire on board ship 406 11-2 SOUTH AFRICAN OIL POLLUTION CONTROL & LIABILITY 406 11-2.1 Sources & types of marine oil pollution 407 11-2.2 The freedom of the seas & dumping 408 11-2.3 International control over the marine environment 409 11-2.4 International oil pollution liability regimes 411 11-2.4.1 The CLC 411 11-2.4.2 The Fund Convention 413 11-2.5 South African oil pollution legislation 414 11-23.1 The Marine Pollution (Control & Civil Liability) Act, 1981 & the Marine Pollution (Intervention) Act, 1987 414 11-2.5.2 The International Convention for the Prevention of Pollution from Ships, 1973 ("MARPOL") 418 11-2.5.3 Whither South African oil pollution legislation?418 11-2.6 Oil pollution liability & insurance 419 11-3 CASUALTY INVESTIGATION & FORMALITIES 420 11-3.1 Casualty reports 420

XX TABLE OF CONTENTS 11-3.2 Shipping tribunals 421 11-3.2.1 The Preliminary Enquiry 421 11-3.2.2 The Court of Marine Enquiry 421 11-3.2.3 The Maritime Court 426 11-3.2.4 The Court of Survey 428 11-4 SHIP'S PROTESTS 430 PART IH CARRIAGE OF GOODS BY SEA CHAPTER 12 THE BUSINESS OF CARRIAGE OF GOODS BY SEA 12-1 SHIPPING & INTERNATIONAL TRADE : 438 12-1.1 The dramatis personae in carriage 438 12-1.2 Carriage documents & their interaction 442 12-1.2.1 The booking note 442 12-1.2.2 The mate's receipt 443 12-1.2.3 The bill of lading 444 12-1.2.4 Sea waybills & non-negotiable receipts 444 12-1.2.5 Charterparties 447 12-1.2.5 Marine Insurance documents 447 12-2 INCO TERMS, 1990 448 12-2.1 EXW 450 Seller's obligations 451 Buye's obligations 451 12-2.2 FOB 452 Seller's obligations 452 Buyer's obligations 453 12-2.3 OF 454 Seller's obligations 454 Buyer's obligations 455 12-2.4 DDP 456 12-3 UN CONVENTION ON CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS 457 12-4 CARRIAGE & THE BANKING SYSTEM 458 Stoppage of goods in transitu 461 12-5 MULTTMODAL TRANSPORT 4 6 4 12-6 ELECTRONIC COMMERCE IN SHIPPING 467 CHAPTER 13 THE JURISPRUDENCE OF CARRIAGE AT SEA 13-1 APPLICABLE LAW 474 13-2 THE COMMON CARRIER 4g2 The Praetor's edict 4g2 Exceptions 483 13-3 INTERNATIONAL LIABILITY REGIMES & THE PENDULUM OF LIABILITY 485 13-3.1 TheHarterAct 435 13-3.2 The Hague Rules ZZZZZ".'."".'."'.'.'....487 13-3.3 The Hague Visby Rules 488 13-3.4 The Hamburg Rules "ZZZZZZZ".. 489 13-3.5 The future? 493 13-4 IMPLIED UNDERTAKINGS 494 13-4.1 Carrier's undertakings 495 13-4.1.1 Seaworthiness 495

TABLE OF CONTENTS XXI 13-4.1.2 Due despatch 499 13-4.1.3 Geographic deviation 499 13-4.1.4 Shipper's undertaking re dangerous cargo 500 13-5 STATUTORY MEASURES 501 13-5.1 The Merchant Shipping Act, 1951 501 13-5.2 The Carriage of Goods by Sea Act, 1981 503 13-5.2.1 Interpretation of the Hague-Visby Rules 505 13-5.2.2 Application of COGSA 507 13-5.2.3 Carrier's minimum liability 510 13-5.2.4 Carrier's miscellaneous rights and obligations 514 13-5.2.5 Shipper's obligations 516 13-5.2.6 Receiver's obligations 518 13-5.27 Time bar 518 13-5.3 The Bills of Lading Act, 1855 519 13-5.4 The [draft] Sea Transport Documents & Title to Sue Bill 522 13-5.4.1 Documents covered 522 13-5.4.2 Transfer and negotiation 523 13-5.4.3 Conclusive evidence provisions 524 13-5.4.4 Presumption of delivery 525 13-5.4.5 Mala fides 525 13-5.4.6 EDI 525 13-6 LIMITATION OF LIABILITY UNDER COGSA 526 13-6.1 Interaction between Article III and Article IV 526 13-6.2 Hague-Visby Rules incorporated voluntarily 528 13-6.3 Hague-Visby Rules statutorily applicable 530 13-6.4 The measure of damages 533 13-6.5 The measure of limitation 533 13-6.6 Package or unit 534 13-7 PLEADING BOTH COGSA & SECTION 261 LIMITATION 536 CHAPTER 14 BILLS OF LADING 14-1 ORIGINS & NATURE OF THE BILL OF LADING 540 14-2 APPLICABLE LAW 542 14-3 THE FUNCTIONS OF THE BILL OF LADING 543 14-3.1 Receipt for goods shipped 543 14-3.1.1 Receipt as to quantity 543 14-3.1.2 Receipt as to condition 547 14-3.1.3 Receipt as to quality 548 14-3.1.4 Receipt as to marks 549 14-3.2 Evidence of the contract of carriage 549 14-3.3 Document of title 550 14-4 WHO MAY SUE? TITLE TO SUE 554 14-5 WHOM TO SUE? THE DEMISE CLAUSE 557 14-6 COMMON LAW RIGHTS & OBLIGATIONS OF THE SHIPPER, CARRIER & CONSIGNEE 559 14-6.1 Delivery of the cargo by the carrier 559 14-6.2 Payment of freight by the shipper or consignee 561 14-6.3 Acceptance of delivery of the cargo by consignee 562 14-7 COMMON CLAUSES IN BILLS OF LADING 563 14-7.1 The Clause Paramount 564 14-7.2 Freight & lien clauses 565 14-7.3 Liberty clauses 565 14-7.3.1 Deck cargo & live animals 566 14-7.3.2 Substitution of another vessel 567

XX11 TABLE OF CONTENTS 14-7.3.3 Departure from normal route 567 14-8 EDI & THE BILL OF LADING 567 UNCITRAL Model Law for Electronic Commerce 568 CMI Rules for Electronic Bills of Lading 568 CHAPTER 15 CHARTERPARTIES 15-1 THE NATURE OF A CHARTERPAKTY IN LAW 574 Frustration of charterparties 579 15-2 APPLICABLE LAW, 579 15-3 TYPES OF CHARTERPARTIES 580 15-3.1 Demise charterparties 580 Common consequences of demise 587 15-3.2 Time charterparties 588 New York Produce Exchange form outlined 589 15-3.3 Voyage charterparties 592 GENCON form outlined 593 15-3.4 Hybrid charterparties 595 15-4 CHARTERPARTIES & SEAWORTHINESS 595 15-4.1 Demise charterparties and seaworthiness 596 15-4.2 Time charterparites and seaworthiness 596 15-4.3 Voyage charterparties and seaworthiness 597 15-5 CHARTERPARTIES & BILLS OF LADING 598 15-6 COMMON CLAUSES IN CHARTEKPARTTES 600 15-6.1 Safe ports & always afloat 600 15-6.2 Bunker procurement & ownership 603 15-6.3 Cesser clause 604 15-6.4 Offhire clauses in time charterparties 605 15-6.5 Owner's right of withdrawal in time charters 608 15-6.6 Laytime clauses in voyage charterparties 609 Historical origins 609 The 'arrived ship' 610 Notice of readiness 610 LAYCAN clauses 614 Calculation of laytime 614 CHAPTER I6 CARGO CLAIMS & THEIR DEFENCE UNDER COGSA: A SUMMARY 16-1 ONUS & STANDARD OF PROOF OF CARGO CLAIMS 620 Order of play for cargo claims 622 Essential averments for cargo claims 622 16-2 MEASURE OF DAMAGES - SOUND ARRIVED MARKET VALUE 624 16-3 DUE DILIGENCE, SEAWORTHINESS & THE EXCEPTIONS 625 16-4 HEAVY WEATHER AS A PERIL OF THE SEAS 627 16-5 RAIN & SWEAT 628 16-6 NAUTICAL FAULT 630 16-7 FIRE 632 16-8 INSUFFICIENCY OF PACKAGING 636 16-9 INHERENT VICE OF CARGO 637 16-10 SHORTLANDING & PILFERAGE 639 16-11 DELAY 640 16-12 COLLISION DAMAGE TO CARGO 642 16-13 ART 4 RULE 2(Q) 'ANY OTHER CAUSE' 643 16-14 DECK CARGO 644 16-15 TIME BAR

TABLE OF CONTENTS xxm PART IV MARINE INSURANCE CHAPTER 17 THE JURISPRUDENCE OF SOUTH AFRICAN MARINE INSURANCE 17-1 ORIGINS OF SOUTH AFRICAN MARINE INSURANCE LAW 650 17-1.1 Early origins, the ius commune & Roman-Dutch Law 650 17-1.2 English Law & the 1906 Marine Insurance Act 652 17-2 APPLICABLE LAW 653 17-2.1 South African Marine Insurance law pre-1983 653 17-2.2 The Admiralty Jurisdiction Regulation Act, 1983 655 17-3 STATUTORY PROVISIONS: THE SHORT-TERM INSURANCE ACT, 1998 658 17-4 DRAMATIS PERSONAE & THE TYPES OF INSURANCE THEY UNDERWRITE 660 CHAPTER 18 GENERAL PRINCIPLES OF MARINE INSURANCE 18-1 THE FORMATION OF THE CONTRACT 664 18-1.1 The proposal 664 18-1.2 The slip & the policy 665 18-1.3 Cover notes 668 18-1.4 The premium 669 18-2 INSURANCE AGENTS & BROKERS 671 18-2.1 Agents & Brokers 671 18-2.2 Authority & mandate 674 18-2.3 Agent's obligations 675 18-2.4 Principal's obligations 676 18-2.5 Termination of agency 676 18-2.6 Liability of the agent 676 18-2.7 Knowledge of agent: non-disclosure & misrepresentation 677 18-3 INDEMNITY 678 18-3.1 Over-insurance 679 18-3.2 Double insurance 680 18-3.3 Underinsurance & average 681 18-3.4 Excess & deductible 683 18-4 LNSURABLE INTEREST 6 8 3 18-5 GOOD FAITH 687 Historical background & comparative analysis 688 Extent of the duty of good faith stante contractu 690 The utmost good faith: Mutual & Federal v Oudtshoorn Municality 691 18-5.1 The duty of disclosure 693 18-5.1.1 The test of materiality 695 18-5.1.2 Actual & constructive knowledge 698 18-5.1.3 Duration of duty to disclose 699 18-5.1.4 Facts which need not be disclosed 699 18-5.2 Misrepresentation 700 18-5.3 Prevention of loss, suing & labouring 704 18-6 WARRANTIES 705 18-7 RISK 709 18-7.1 Insured & excepted perils 709 18-7.2 Attachment & duration of risk 711 18-7.2.1 Risk in time policies 711 18-7.2.2 Risk in voyage policies 712 18-8 CAUSATION 714 18-8.1 Proximate cause 715 18-8.2 Multiple causes 716

XXIV TABLE OF CONTENTS 18-9 IMPLIED TERMS 717 18-9.1 Legality 718 The common law 718 Effect of s 54 of the Short-Term Insurance Act, 1998 719 18-9.2 Due despatch, deviation & delay 720 18-9.3 Seaworthiness 721 18-9.3.1 Time policy on ship 721 18-9.3.2 Voyage policy on ship 721 18-9.3.3 Mixed policies on ship 723 18-9.3.4 Voyage policies on goods 723 18-9.4 Dangerous cargo 724 18-10 LOSS, ABANDONMENT & PARTICULAR AVERAGE 725 18-10.1 Total loss: actual & constructive 725 18-10.2Abandonment & notice of abandonment 727 18-10.3Partial loss & particular average 730 18-11 CLAIMS & SUBROGATION 731 18-12 INTERPRETATION OF INSURANCE POLICIES 733 CHAPTER 19 PERILS COVERED BY STANDARD MARINE POLICIES 19-1 STANDARD POLICIES 736 Lloyds of London: The SG & MAR Policies 736 The Institute of London Underwriters 736 19-2 INSURED PERILS - H&M 737 19-2.1 Perils irrespective of a want of due diligence by the assured 737 19-2.1.1 Perils of the seas 737 19-2.1.2 Fire & explosion 743 19-2.1.3 Violent theft by persons outside the vessel 744 19-2.1.4 Piracy 744 19-2.1.5 Jettison 745 19-2.1.6 Contact with objects &c 745 19-2.1.7 Accidents in loading discharging or shifting cargo or fuel 746 19-2.1.8 Earthquake, volcanic eruption or lightning 746 19-2.2 Perils requiring due diligence [The Inchmaree Clause] 746 19-2.2.1 Bursting of boilers, breakage of shafts or any latent defect in machinery or hull 747 19-2.2.2 Negligence of Master, officers crew or pilots 747 19-2.2.3 Barratry of master officers or crew 748 19-2.3 Miscellaneous perils 749 19-2.3.1 Pollution 749 19-2.3.2 3 4ths collision liability 749 19-2.3.3 General average & salvage 750 19-3 INSURED PERILS - CARGO 750 Institute clauses A & B 751 CHAPTER 20 MUTUAL INSURANCE 20-1 MUTUAL INSURANCE: PAST & PRESENT 755 20-2 PROTECTION & INDEMNITY 757 20-2.1 P& I Clubs 758 20-2.2 P&I cover 759 20-2.2.1 Human resource claims 759 20-2.2.2 Damage liability claims 760 20-2.2.3 Specific liabilities 760 20-2.2.4 Premium calls 761 20-2.2.5 Direct action against P&I Clubs ^M

TABLE OF CONTENTS XXV 20-2.3 P&I Club letters of undertaking 763 20-3 FREIGHT DEFENCE & DEMURRAGE 764 PARTV GENERAL AVERAGE CHAPTER 21 GENERAL AVERAGE 21-1 THE NATURE OF GENERAL AVERAGE 768 21-2 HISTORICAL ORIGINS OF GENERAL AVERAGE 770 21-3 APPLICABLE LAW 772 21-4 THE YORK-ANTWERP RULES, 1994 774 21-4.1 Maritime adventure 776 21-4.2 Fault 776 21-4.3 Onus of proof 778 21-4.4 Value of cargo 778 21-4.5 Loss of ship 778 21-4.6 Environmental losses 778 21-5 GENERAL AVERAGE IN PRACTICE - THE NUMBERED RULES 779 21-6 GENERAL AVERAGE & SALVAGE 779 21-7 GENERAL AVERAGE DECLARATION 780 21-8 GENERAL AVERAGE SECURITY & LIEN 781 21-9 RANKING OF GENERAL AVERAGE CLAIMS 782 INDEX 1029