Maritime Law & Shipping Law
A contract of carriage the subject of which is only the carriage of cargo from one port to another and not the charter of a ship is called freight contracts. In practice, the carriage of these cargoes by this contract are also called cargo transportation or mixed cargo transportation. Freight contracts allow carriers to enter into contracts of carriages for numerous small cargoes with a single ship and thus increase profits. In such transports, the place where the cargo is loaded and stored is determined by the carrier and the approval of the vehicle by the shipper is sought only in cases where the deck will be used.
Freight contracts and other subcontracts of carriage are not to be confused with ship lease agreements because the main purpose of a contract of afreighment is to obtain the service of cargo transportation by sea. In the ship lease agreements, the owner is obliged to temporarily deliver the possession of its ship to a third party for a fee.
In ship lease agreements, no debt of carriage of cargo is undertaken. The lessee has the right to use the vessel in accordance with the purpose of allocation specified in the contract and within the limits, if any.
The place from which a ship’s voyages are managed is called the home port. A ship is registered at the registry office located at the home port. The name of the home port must be written on the stern of the ship, otherwise the master of the ship might be prosecuted and sentenced to imprisonment or fines. The courts in the home port are the courts of jurisdiction for these cases filed against the owner. The applicable law is determined according to the flag of the ship. Each ship carries a flag, which is the flag of the nationality to which the owner belongs. Due to the multinational legal and commercial aspects of the maritime law, in order to avoid uncertainties and bigger problems which might arise in the future, the parties are advised to enter into arbitration agreement. This way, wasting time on subjects such as the law of flag nation or the jurisdiction of the home port is avoided and the place, method and rules of the resolutions of disputes arising between the parties, are determined in advance.
Thus, instead of wasting time on issues such as flag law of ships or determination of the location of mooring ports, the parties can determine in advance where and by which rules the disputes will be settled.
Antalya Lawyer Barış Erkan Çelebi and his Antalya Law Firm provide legal services and representation in the field of shipping law, such as advising on the rights and the responsibilities of the carrier and its insurers arising from damage, loss and delay in the maritime transportation, limitation of liability and the liability of the carrier, contract of affreightment , charter agreement, disputes arising from bill of landing, recap of fixture, demurrage, collusion, general average, ship registry, ship building contracts, ship sale contracts, yacht construction and yacht sale.
For detailed information on the limitation of shipowner’s liability and the breaking of the limitation under 1976 London Convention, please check this LINK.
For detailed information on INCOTERMS 2020, please check this LINK.
For detailed information on carrier’s legal liability under shipping law, please check this LINK.