MARITIME LAW: LEGAL FACTS AND CHALLENGES

Introduction 

Marine law also known as admiralty law can be described as a body of rules governing various sectors in the marine transport business such as shipping of merchandise, customs, ports, and any legal issues that in some way or the other are connected with the marine transport business. Some of the areas it deals with include losses to the goods carried, delay in shipment, missing items, losses to the ship, marine accidents, and others.


History 

There was maritime activity which dates back to ancient times with a major accent on trade by sea with Asia and the Middle East. The formation of the maritime laws in India was based on Indian custom and usage and especially connected with merchants carrying out business of maritime trade. However, it would be interesting to know that the actual evolution of modern maritime laws in India cannot be considered prior to the British phase of imperialism in India.


Although the British tried to downplay the importance of transport in India, they enacted several important acts providing the basis of Maritime and Admiralty laws in India. Legal structures like the Indian Registration of Ships Act 1841, the Indian Ports Act 1908, the Indian Merchant Shipping Act 1923 and the Territorial Waters Jurisdiction Act 1878 helped in the evolution of India’s maritime structures one step at a time.


Today, India ranks as a major player in the maritime industry; India has 13 major ports that have a big role to play in sea borne trade. It is acknowledged as one of the most organized shipping fleets conveying more than 95% of Indian merchandise imports in terms of volume and nearly about 68% of import in terms of value through shipment. Maritime legal framework in India has gone through changes with time in terms of overhauling the demands and developments of the maritime sector and encouraging investment within the country. These legislations have revolutionized the maritime scenario of India and contributed toward the development of the logistic structure of the country making it eligible for being a part of the international trade scenario.

The present maritime laws represent the continuing growth and change in this area. This development has been led by commercial activities of nations engaging in sea navigation. These laws were in use nearly 3,000 years ago. To fully understand the significance of these statutes throughout history, it is imperative to look at the past.


This was a turning point in shipping laws because it led to recording of adjudications and ultimately codification of many customary rules. Some parts of these codes were later incorporated into European legislation.

Development

Over time the evolution of laws was marked by their consistency. This uniformity was considered essential to cater to a community rather than just a specific group engaged in maritime activities. However this standardization also posed challenges, in fostering an identity associated with the oceans. The consistent application of law helped alleviate issues of uncertainty and disputes between jurisdictions. Initially advocated by professionals and entrepreneurs who founded the Comite Maritime International (CMI) and National Maritime Law Associations, this notion has since expanded under the oversight of the Intergovernmental Maritime Organization (IMO). Other entities affiliated with the United Nations.


Established in 1897 the Comite Maritime International (CMI) aimed to ensure uniformity in maritime laws. It formulated treaties, including the International Convention on Bill of Lading, the Visby Amendments to the Hague Rules and the Salvage Convention. The International Maritime Organization (IMO) under UN supervision has assumed responsibilities previously held by CMI. It upholds uniformity in law to prevent conflicts among nations with many countries incorporating IMO principles into their domestic legislation. Despite these endeavors achieving consistency, in laws remains an ongoing challenge.

Maritime laws today combine age principles with legal frameworks operating on both a local and global scale. They cover a range of topics including insurance, general average, salvage operations, the welfare of seafarers and the standing 'maintenance and cure' doctrine.



Indian Maritime History:


Maritime laws have been in existence in the country for several centuries. There was no single maritime law but there were a number of rules and regulations that governed maritime issues, keeping in mind the rich maritime history of international as well as coastal trade within India itself. Historic evidence suggests that a large number of merchants and traders began to come to India at quite an early period for the purpose of trading different types of commodities. In view of the situation a very large number of rules regulating commerce came into existence like other countries. Law too has developed considerably pertaining to maritime laws today. Initially, Maritime Law was subject to British Jurisdiction, like;

  • The Indian Major Port Act

  • The Coasting Vessels Act

  • Indian Marine Insurance Mutually

  • Surveyors Licensing Rules Commander-in-Chief Rules Slave Trade Act

  • Independence brought with it newer laws in Maritime sector like: Pilot age Act 1965

  • Merchant Shipping (Amendment) Act 2000

  • Indian Ports Act

  • Major Port Trusts: NULL Protection and Indemnity Club, NULL Constitutional Law


Admiralty laws are believed to be an integrated legal regime, which covers public and private as well as national and international issues (substantive and procedural law). It is also backed by its own courts and jurisdictions.

Understanding Maritime Lien:

Maritime lien is one of the most important aspects of possessory maritime law. A maritime lien is a debt or right that is connected with the ship and can be enforced by the detention of particular cargo or merchandise. This provision was designed to make it possible for credit to be extended to ships at the same time as it was to protect the interests of the ship owners by avoiding a situation where they would simply refuse to pay so as to avoid the amounts due. The maritime lien increases the rights of property with regard to a reward for services provided or any caused property damage. This right is granted by law and is not as such linked to a change of ownership anymore. In order to advance this line of argument, physical control of the vessel being in the hand of the creditor is not mandatory. As commonly known due to its inability to be ejected like a barnacle from a ship, any maritime lien that concerns a specific ship binds the ship regardless of the change in ownership.


Key Judgments on Maritime Lien:


To further explore the concept of maritime lien, it’s helpful to look at some key judgments from various international and Indian courts. For instance, in the case of Wahono v. The Ship MV Yung Yu No  (2001) of the Solomon Islands’ High Court, it was established that under common law, claims related to maritime lien could also apply to freight or cargo, which includes the catch of fishing vessels. 

Additionally, in the case of Maruwa Shokai (Guam) Inc v. Pyung Hwa 31 and ors. (1993) of the Supreme Court of the Federated States of Micronesia, it was confirmed that a claim under maritime lien also covers transshipment costs as ‘necessaries.’ To elaborate further, the Court defined ‘necessaries’ as ‘things reasonably needed in the business of vessels or ships.’


In the legal dispute of State of Goa v. Sale Proceeds of the Vessel MT Pratibha Bheema (2018), the case unfolded around a ship that was temporarily tied up at the Panaji Port. 

Later, the ship suffered from a technical malfunction since the situation was rather unfavorable due to harsh weather. Therefore, the Goa state completed an action of the plaintiff that moved the vessel to the Mormugao Port for repair. These assets during this period included the selling of the vessel while still under Goa's ownership. Here, it is imperative to point out that at this stage the vessel was situated in the territory controlled by the Goa state. Under such circumstances, Goa started claiming a part of such expenses from the amounts realized out of the sale. As for the court the following burden was provided with the challenge to establish whether the Goa claim was supported by a maritime lien. The court had to also consider whether the claim fell within the provisions of the International Convention for the Unification of Certain Rules Relating to the Arrest of Seagoing Ships, 1952 popularly referred to as the ‘Brussels Arrest Convention and/or Article 1(n) as defined by the International Convention on the Arrest of Ships, 1999.

Principles

A maritime lien is an important part of the entire body of the maritime laws. The claim of maritime lien is regarded as a privilege in civil laws and it forms a distinctive feature of civil laws. Maritime lien can be described as an encumbrance on a ship which can be enforced by the appointment of an appropriate cargo or item. This clause was introduced so that credit could be offered to ships in addition to ensuring that the ship owners would not avoid other forms of payment. This involves the maritime lien that, as a reward for the service provided or the loss of property in the marine business provides a right to property. This right is created by statute and therefore is not affected by ownership by transfer. In support of this argument, the creditor does not need to retain possession of the vessel. 

Finally, the ship had a technical hitch which was as a result of poor weather conditions. As such, through the Goa state as a plaintiff, it anchored the vessel to the Mormugao Port for repair. At this time the vessel was disposed of, yet remained fully under Goa's control. One has to mention that at the time the vessel was within the sphere of influence belonging to the territory administered by the Goa state. Under such circumstances, Goa demanded reimbursement of some of the cost towards the purchase of the item from the sale’s proceeds. The court was facing the herculean task of arriving at the proposition that Goa’s claim was supported by maritime lien. The court had no other option but to assess whether the above claim brought the matter under the International Convention for the Unification of Certain Rules Relating to the Arrest of Seagoing Ships, 1952 and Article 1(n) of the International Convention on the Arrest of Ships, 1999.

These principles are aimed at striking a balance between the freedom of use, the protection of national interests, and the collective benefit from sea resources, ensuring that maritime activities are conducted in a fair and sustainable manner. 

Challenges

As maritime law adapts to the changing times and new challenges of the 21st century, Spain is facing several significant challenges in this area in 2021:


  • Enhancing Connectivity Across Modes: Ensuring smooth integration with aviation, land, and especially rail transport systems. This includes reducing delivery times to ensure the efficient distribution of essential goods.

  • Safeguarding Workers in the Seafaring Industry: Addressing issues exacerbated by the pandemic, such as long waiting times at ports, fatigue disorders, uncertainties about departure/reembarkation schedules and available rest periods, and ensuring the safe return of employees.

  • Upholding Sustainability in Maritime Activities: Minimizing environmental damage from sea transport by using low sulfur fuels, researching energy-efficient propulsion technologies, developing methods for building ships with lower environmental impacts, and retrofitting existing vessels to use eco-friendly fuels.

  • Embracing Technological Advancements: Eliminating inefficiencies in administrative and regulatory processes through automation, streamlining operations at ports, and adapting maritime laws to accommodate autonomous ships.

These challenges highlight the need for Spain to prioritize certain areas within its maritime sector. Additionally, regulatory changes are expected in 2021 that will impact the industry, including updates to key laws such as the State Ports and Merchant Marine Act, and the Maritime Navigation Act. These updates reflect the ongoing adjustment and modernization required by the international, European, and national maritime sectors, as well as their internal stakeholders, to address upcoming challenges



Conclusion:

Maritime law has a rich history but it also evolves to meet current needs. In India, its legal system, heavily influenced by British colonial rule, supports one of the world's strongest shipping industries. This evolution is happening worldwide, with freedom, sovereignty, and our common heritage guiding how we manage maritime areas. Both in Spain and elsewhere, the maritime sector faces major challenges in 2021:


Developing multi-modal transportation to ensure smooth delivery of vital goods

  1. Improving working conditions for seafarers

  2. Moving towards environmental sustainability Reducing maritime pollution is crucial. This can be achieved through:

  3. Using low sulfur fuels

  4. Exploring renewable energy options for ships

  5.  To address these challenges, we need to take certain steps:

  6. Digitizing and automating port-logistics processes

  7. Adapting laws to accommodate autonomous ships it’s important to update and modernize maritime laws and regulations at the global, European, and national levels to effectively tackle industry challenges. In conclusion, the maritime industry must continue to evolve by blending old traditions with new advancements in order to maintain its vital role in global trade and logistics.

References 

  1. An Overview Of Maritime Law-https://www.forpeopleforjustice.com/overview-maritime-law/

  2.  Maritime Lien and Analysis-http://admiraltypractice.com/chapters/8.htm

  3.  What is Maritime Law and what is its function..??

https://www.shippingandfreightresource.com/what-is-maritime-law-and-what-is-its-function/#:~:text=Maritime%20law%2C%20which%20is%20often,seas%20or%20other%20navigable%20waters  

  1. INTERNATIONAL IMPLICATIONS CONCERNING THE LEGAL REGIME OF SHIP REGISTRATION -https://hrcak.srce.hr/file/153199  

  2. Marine/ Shipping - Maritime Lien In India-

https://www.mondaq.com/india/marine-shipping/208090/maritime-lien-in-india


    By Nandini Achhra
    (Intern at Nyaya Nishtha)