Shipping Law ThomsonReuters(Professional)AustraliaLimited 19HarrisStreetPyrmontNSW2009 Tel:(02)85877000Fax:(02)85877100 [email protected] http://www.thomsonreuters.com.au Forallcustomerinquiriespleasering1300304195 (forcallswithinAustraliaonly) INTERNATIONALAGENTS&DISTRIBUTORS NORTHAMERICA ASIAPACIFIC ThomsonReuters ThomsonReuters Eagan Sydney UnitedStatesofAmerica Australia LATINAMERICA EUROPE ThomsonReuters ThomsonReuters SãoPaulo London Brazil UnitedKingdom Shipping Law MARTIN DAVIES MA(Oxon),BCL(Oxon),LLM(Harvard) Admiralty Law Institute Professor of Maritime Law,Tulane University Director,Tulane Maritime Law Center Professorial Fellow ofThe University of Melbourne ANTHONY DICKEY, QC FOURTH EDITION LAWBOOK CO. 2016 PublishedinSydneyby ThomsonReuters(Professional)AustraliaLimitedABN64058914668 19HarrisStreet,Pyrmont,NSW NationalLibraryofAustralia Cataloguing-in-Publicationentry Davies,Martin,1957–author. Shippinglaw/MartinDaviesandAnthonyDickey. 4thedition. ISBN:9780455226767(paperback) Includesindex. Maritimelaw—Australia. Dickey,Anthony,1943–author. 343.94096 ©2016ThomsonReuters(Professional)AustraliaLimited Thispublicationiscopyright.Otherthanforthepurposesofandsubject totheconditionsprescribedundertheCopyrightAct,nopartofitmay inanyformorbyanymeans(electronic,mechanical,microcopying, photocopying,recordingorotherwise)bereproduced,storedina retrievalsystemortransmittedwithoutpriorwrittenpermission. Inquiriesshouldbeaddressedtothepublishers. Editor:CorinaBrooks ProductDeveloper:PaulGye Publisher:AnneMurphy PrintedbyLigarePtyLtd,Riverwood,NSW ThisbookhasbeenprintedonpapercertifiedbytheProgrammeforthe EndorsementofForestCertification(PEFC).PEFCiscommittedto sustainableforestmanagementthroughthirdpartyforestcertificationof responsiblymanagedforests.Formoreinfo:http://www.pefc.org Preface When we wrote the Preface to the third edition of this book, we ruefully noted that nine years had passed between publication of the second and third editions, and we expressed the wish that it would not take nine years to produce the next edition. Well, as it turned out, it didn’t. It took twelve years, half a generation. InthatsamePreface,wequotedtheBellman’swordsfromLewisCarroll’spoem “The Hunting of the Snark” — “What I tell you three times is true”. Sadly, but predictably, many of the things we told you in the third edition (they were all true, yes they were) are no longer true a dozen years later. It would be tedious to list every one of the significant changes to the law that have occurred since the last edition, and we strive never to be tedious (although that is sometimes difficult). It would, however, be remiss of us not to mention at least some of the major recent (or recent-ish) developments that are referred to in this edition, if only to highlight how much this book has been transformed from its humble beginnings in the first edition in (can this really be right?) 1990. This edition dealswith(amongmanyotherthings):thePersonalPropertySecuritiesAct2009 (Cth) and its effect on ship registration and mortgages; the comprehensive revision of matters affecting navigation (and collisions) in the Navigation Act 2012(Cth)andtheNavigationRegulation2013(Cth);Australia’simplementation of the 1996 Protocol to the Limitation of Liability for Maritime Claims 1976, its denunciation of the original Convention, and the “tacit amendment” increases to the limits in 2015; the epochal changes to marine insurance made by the Insurance Act 2015 (UK) and the possibility that Australia may follow suit in amending the pro-insurer law of marine insurance; Australia’s adoption of the Bunker Convention 2001 and its implementation of Annex VI of MARPOL, dealing with air pollution (which led to the renaming of the pollution chapter); and the adoption of theYork-Antwerp Rules 2016 relating to general average. Rather to our surprise, one thing that did remain constant between the third edition and this one was the involvement of our editor, Corina Brooks. The AmericanpoetJohnGodfreySaxesaid(inaquotationoftenattributedtothefirst German Chancellor, Otto von Bismarck) that laws are like sausages, in that our respect for them diminishes the more we know about the process of making them.Thetaskofgettingabookfromfinalmanuscripttoeventualpublicationis, if anything, even more ghastly than sausage-making or the legislative process. Likeasausage-eater,you,thereader,arebetteroffnotknowingwhateditorslike Corina Brooks must do to guide their unenthusiastic authors through the processes necessary to get to the final product. Rest assured that her work has always been literally exemplary, a model for other editors to emulate, and we thank her for it. In addition to our joint expression of thanks to Corina Brooks, Anthony would like to thank the Hon Justice Rein, theAdmiralty Judge of the Supreme Court of vi Preface New South Wales, Ms Lucinda McIntyre, the Registrar of Ships, and Mr PrasanthenAthipar, Manager, Marine Environment Salvage and Intervention, Australian Maritime Safety Authority, for their assistance in preparing the chaptersthathewrote.Martinwouldlike,onceagain,tothankhisfriend,mentor andTulanecolleagueBobForcebothforknowingeverythingaboutmaritimelaw and for his generosity in sharing that knowledge and so many other things. Martin would also like to thank Ernie van Buuren and the other members of Ernie’s team at Norton Rose Fulbright (and, before that, Blake Dawson Waldron), for a never-ending stream of fascinating questions from real cases that enhanced his understanding of how maritime law works in practice. Lastly, Martin would like to express his love and admiration for his wife Erinn and his four daughters (four! another big change since the last edition!) Lydia, Gloria, Julia, and Eleanor. Asinpreviouseditions,wewouldalsolikesincerelytothankourselves,foreach writing those chapters of the book that the other did not want to write.Anthony wrote Chapters 1–10, 20 and 21. Martin wrote Chapters 11–19. The law is stated as it appeared to us in January 2016, with the exception of referencestotheYork-AntwerpRules2016,whichwereinsertedintothetextata very late stage of production, after their adoption in NewYork on 8 May 2016. MARTINDAVIES ANTHONYDICKEY NewOrleansandPerth May2016 Table of Contents Preface................................................................................................................... v Table of Cases...................................................................................................... ix Table of Statutes................................................................................................ lxxi 1 Characteristics of a Ship............................................................................ 1 2 Division of Shipping Law Powers inAustralia......................................19 3 Registration of Ships................................................................................. 51 4 Consequences of Registration.................................................................. 77 5 Property, Ownership and Title................................................................ 93 6 Acquisition of Property in Ships........................................................... 113 7 Introduction to Charges over Ships...................................................... 127 8 Maritime Liens........................................................................................ 133 9 Possessory Liens and Bottomry............................................................. 169 10 Mortgage of Ships................................................................................... 175 11 Introduction to Carriage of Goods by Sea........................................... 191 12 Bills of Lading, Sea Waybills and Other Sea-Carriage Documents. 203 13 Voyage Charterparties............................................................................ 367 14 Time Charterparties................................................................................465 15 Collisions and Liability for Damage..................................................... 577 16 Limitation of Liability............................................................................ 625 17 Marine Insurance.................................................................................... 679 18 GeneralAverage.......................................................................................761 19 Pollution from Ships............................................................................... 781 20 Salvage...................................................................................................... 861 21 Wrecks...................................................................................................... 907 Appendix 1: Conlinebill 2016........................................................................ 921 Appendix 2: Combiconbill 2016.................................................................... 927 Appendix 3: Linewaybill 2016....................................................................... 933 Appendix 4: Combiconwaybill 2016............................................................. 939 viii TableofContents Appendix 5: Congenbill 2016.........................................................................945 Appendix 6: Gencon 94.................................................................................. 951 Appendix 7: NYPE 2015................................................................................ 961 Appendix 8: Institute Cargo Clauses (A) 2009..........................................1027 Appendix 9:York-Antwerp Rules 2016...................................................... 1031 Index................................................................................................................ 1043 Table of Cases A AGagniere&CovEasternCoofWarehouses(1921)7LlLRep188................................... 12.840 AGagniere&CovEasternCoofWarehouses(1921)8LlLRep365................................... 12.840 AMeredithJones&CoLtdvVangemarShippingCoLtd(TheApostolis)[1997]2Lloyd’sRep 241........................................................................................................................................... 12.400 AMeredithJones&CoLtdvVangemarShippingCoLtd(TheApostolis)(No2)[2000]2Lloyd’s Rep337................................................................................................................................... 13.560 ARaptis&SonvSouthAustralia(1977)138CLR346....................................... 2.110,2.220,2.260 A/BNordiskaLloydvJBrownlie&Co(Hull)Ltd(1925)ComCas307............................... 13.210 A/SAwilcovFulviaSpAdiNavigazione(TheChikuma)[1981]1Lloyd’sRep371............ 14.310, 14.440 A/SGunnstein&CoK/SvJensen,KrebsandNielsen(TheAlfaNord)[1977]2Lloyd’s Rep434................................................................................................................................... 13.660 A/SHansen-TangensRederiIIIvTotalTransportCorp(TheSagona)[1984]1Lloyd’s Rep194.........................................................................................................14.360,14.380,14.390 A/SIveransRederivKGMSHolstencruiserSeeschiffahrtsgesellschaftmbH&Co(The Holstencruiser)[1992]2Lloyd’sRep378............................................................................ 14.410 ABMarintransvCometShippingCoLtd(TheShinjitsuMaruNo5)[1985]1Lloyd’s Rep568...................................................................................................................... 13.560,14.400 ABCShipbrokersvTheShipOffiGloria[1993]3NZLR576................................................... 8.590 AETIncLtdvArcadiaPetroleumLtd(TheEagleValencia)[2010]2Lloyd’sRep257........13.200, 13.490 AICLtdvMarinePilotLtd(TheArchimidis)[2008]1Lloyd’sRep597..................................13.50 ANZBankingGroupLtdvCawood[1987]1QdR131...........................................................13.440 APCMarinePtyLtdvShipAPCAussie1[2009]FCA690.....................................................14.450 ASMShippingLtdofIndiavTTMILtdofEngland(TheAmerEnergy)[2009]1Lloyd’s Rep293................................................................................................................................... 14.240 AbrahamsvHerbertReiachLtd[1922]1KB477........................................................13.520,13.540 AbtRasha,The[2000]2Lloyd’sRep575................................................................................... 18.60 AbuDhabiNationalTankerCovProductStarShippingLtd(TheProductStar)(No2)[1993]1 Lloyd’sRep397........................................................................................... 14.290,14.300,14.370 AceImportsPtyLtdvCompanhiadeNavegacaoLloydBrasileiro(1987)10NSWLR32... 12.160, 12.210 AchilleLauroFuGioacchino&CvTotalSocietaItalianaperAzioni[1968]2Lloyd’s Rep247...................................................................................................................... 12.330,13.620 AcramanvJohnston(1871)5SALR65......................................................................................12.420 Acrux,The[1962]1Lloyd’sRep405................................................................8.470,10.320,10.370 Acrux,The[1965]P391................................................................................................................ 8.230 ActionNavigationIncvBottiglierediNavigazioneSpA(TheKitsa)[2005]1Lloyd’s Rep432...................................................................................................................... 14.270,14.330 ActionSAvBritannicShippingCorporationLtd(TheAegisBritannic)[1985]2Lloyd’s Rep481................................................................................................................................... 13.570 ActionSAvBritannicShippingCorporationLtd(TheAegisBritannic)[1987]1Lloyd’s Rep119....................................................................................................................................13.570 ActisCoLtdvSankoSteamshipCoLtd(TheAquacharm)[1982]1WLR119;[1982]1Lloyd’s Rep7.................................................................................. 12.300,13.600,14.110,14.330,20.150 AcwooInternationalSteelCorpvToko[sic]KaiunKaishaLtd840F2d1284 (6thCir1988)............................................................................................................ 12.170,12.560 AdamastosShippingCoLtdvAnglo-SaxonPetroleumCoLtd[1959]AC133......... 13.600,14.150 AdlervDickson[1955]1QB158......................................................................12.740,12.840,15.20 x TableofCases AdmiraltyCommissionersvOwnersofSSChekiang[1926]AC637...................................... 15.170 AdmiraltyCommissionersvOwnersofSSSusquehanna[1926]AC655.................................15.170 AdmiraltyCommissionersvPage[1918]2KB447...................................................................20.220 AdmiraltyCommissionersvSSVolute[1922]1AC129...........................................................15.150 AdmiraltyCommissionersvValverda(Owners)[1938]AC173............. 8.20,8.190,20.660,20.670 AdvertisingDepartmentPtyLtdvShipMVPortPhillip(2004)141FCR251......................... 5.190 AegeanSeaTradersCorpvRepsolPetroleoSA(TheAegeanSea)[1998]2Lloyd’s Rep39............................................................13.60,14.380,16.50,16.90,16.100,16.120,19.240 AegnoussiotisShippingCorporationofMonroviavA/SKristianJebsensRederiofBergen(The Aegnoussiotis)[1977]1Lloyd’sRep268................................................................14.440,14.550 AetnaInsuranceCovM/VLashItalia858F2d190(4thCir1988).......................... 12.340,12.560 AfovosShippingCoSAvRPagnanandFLli(TheAfovos)[1983]1Lloyd’sRep335....... 14.450 Africano,The[1894]P141............................................................................................................8.620 AgapatosvAgnew(TheAegeon)[2003]QB556.........................................................17.620,17.630 AgapitosvAgnew(TheAegeon)(No2)[2003]LloydsRepIR54..........................................17.620 AgarvHyde(2000)201CLR552.............................................................................................. 12.270 Aglaia,The(1888)13PD160..................................................................................................... 20.140 AgnewvCommissionerofInlandRevenue[2001]2AC710...................................................14.560 AgrimpexHungarianTradingCompanyforAgriculturalProductsvSociedadFinancieraDeBienes RaicesSA(TheAello)[1958]2Lloyd’sRep65..................................................................13.170 AgrosinPteLtdvHighwayShippingCoLtd(TheMataK)[1998]2Lloyd’sRep614........12.130, 12.210 AhmadvMitsuiOSKLinesLtd(2005)222ALR338....................................12.340,12.670,12.780 Aichhorn&CoKGandSwitzerlandGeneralInsuranceCoLtdvTheShipMVTalbot(1974)132 CLR449...........................................................................................................................8.40,8.100 AitchisonvLohre(1879)4AppCas755....................................................................................20.440 AkaiPtyLtdvPeople’sInsuranceCoLtd(1996)188CLR418...................................12.90,12.590 AkaiPtyLtdvPeople’sInsuranceCoLtd[1998]1Lloyd’sRep90..........................................12.90 AkedianCoLtdvRoyalInsuranceAustraliaLtd[1999]1VR80.............................. 17.100,17.110 AkerblomvPrice,Potter,Walker&Co(1881)7QBD129.........................................20.130,20.360 AktieselskabetOlivebankvDanskSvovlsyreFabrik[1919]2KB162...................................... 13.60 AktieselskabetReidarvArcosLtd[1927]1KB352................................................................. 13.540 AktieselskabetdeDanskeSukkerfabrikkervBajamarCompaniaNavieraSA(TheTorenia)[1983]2 Lloyd’sRep210........................................................................................................ 12.280,12.370 AlBattani,The[1993]2Lloyd’sRep219......................................................... 12.90,12.700,12.710 AlamoChemicalTransportCovM/VOverseasValdes469FSupp203(EDLa1979)......... 15.140 AlbacoraSRLvWestcott&LauranceLineLtd[1966]2Lloyd’sRep53............................... 12.310 Albacruz(CargoOwners)vAlbazero(Owners):TheAlbazero[1977]AC774....................... 12.840 Albazero,The[1977]AC774...................................................................................................... 12.680 Albion,The(1861)Lush282;167ER121.................................................................................20.460 Albion,The(1872)3VR(A)1.......................................................................................... 8.300,8.570 Albionic,The[1942]P81............................................................................................................ 20.290 AldebaranCompaniaMaritimaSAPanamavAussenhandelAGZurich[1977]AC157........13.180, 13.280 Alexander,The(1812)1Dods278;165ER1310..........................................................................8.70 AlexandrosShippingCoofPiraeusvMSCMediterraneanShippingCoSAofGeneva(The AlexandrosP)[1986]1Lloyd’sRep421................................................................ 13.560,14.400 Alfen,The(1857)Swab189;166ER1088...................................................................20.210,20.220 AlfredCToepferSchiffahrtsgesellschaftGmbHvTossaMarineCoLtd(TheDerby)[1985]2 Lloyd’sRep325.........................................................................................................14.110,14.120 AlgreteShippingCoIncvInternationalOilPollutionFund(TheSeaEmpress)[2003]1Lloyd’s Rep123................................................................................................................................... 19.230 AlgreteShippingCoIncvInternationalOilPollutionFund(TheSeaEmpress)[2003]1Lloyd’s Rep327...................................................................................................................... 19.230,19.330 Alhambra,The(1881)6PD68......................................................................................................13.90 AlimportvSoubertShippingCoLtd[2000]2Lloyd’sRep447...............................................12.200 Aline,The(1839)1WRob111;166ER514.............................................................................. 8.390