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At the Threat of Piracy - Hire Issues in Time Charterparties

Hallin, Peter LU (2010) JURM01 20101
Department of Law
Abstract (Swedish)
Allteftersom hotet från sjöröveri har växt under 2000-talet har rederinäringen tvingats hitta sätt att hantera och fördela riskerna. Denna uppsats behandlar branschens kanske främsta riskfördelningsinstrument (i förhållande till sjöröveri) – standardavtal och försäkringar. I första hand ligger fokus på standardavtalens klausuler om “off-hire”. I andra hand tas även frågor om kringliggande klausuler samt försäkringsfrågor upp. Uppsatsen strävar efter att besvara frågan om ett skepp, som är uthyrt på ett så kallat tidscerteparti (time charterparty), går off-hire till följd av ett pirattillslag. Vidare utreds i uppsatsen huruvida så kallad deviation – för att undvika pirattillslag – utgör grund för att ett fartyg på tidscerteparti ska gå... (More)
Allteftersom hotet från sjöröveri har växt under 2000-talet har rederinäringen tvingats hitta sätt att hantera och fördela riskerna. Denna uppsats behandlar branschens kanske främsta riskfördelningsinstrument (i förhållande till sjöröveri) – standardavtal och försäkringar. I första hand ligger fokus på standardavtalens klausuler om “off-hire”. I andra hand tas även frågor om kringliggande klausuler samt försäkringsfrågor upp. Uppsatsen strävar efter att besvara frågan om ett skepp, som är uthyrt på ett så kallat tidscerteparti (time charterparty), går off-hire till följd av ett pirattillslag. Vidare utreds i uppsatsen huruvida så kallad deviation – för att undvika pirattillslag – utgör grund för att ett fartyg på tidscerteparti ska gå off-hire. Slutligen berörs också hur försäkringar inverkar på dessa frågor.

Frågeställningen härrör ur den intressekrock som uppstått i och med sjöröveriets uppgång kring Afrikas horn och det flitiga användandet av (standardavtals-) tidscertepartier som instrument för resurshantering inom sjönäringen. Ett av kännetecknen för ett skepp uthyrt på tidscerteparti är att det är skeppsägaren som förser skeppet med en besättning (inklusive kapten) medan det är förhyraren som instruerar kaptenen. Kaptenen, som alltså är anställd av skeppsägaren, ska lyda instruktioner från förhyraren. Häri består den centrala intressekonflikten där besättningars trygghet och stora värden står på spel.

Uppsatsen inleds med ett par till största delen deskriptiva kapitel om dagens sjöröverisituation, tidscertepartier ur ett generellt perspektiv samt en specifik granskning av de standardavtal som ligger till grund för många av dagens certepartier. Här identifieras och problematiseras kring den intressekonflikt som beskrivits ovan. Vidare granskas rättsfall och doktrin utifrån uppsatsens frågeställning och med målet att finna vägledning i de fall där standardavtalen inte bistår med detta.

Eftersom skeppsägares och förhyrares förhandlingspositioner är tätt sammankopplade med försäkringsmarknaden (de risker som inte kan avtalas bort kan kanske försäkras bort) ges läsaren en översikt av försäkrings-marknaden i ett av de avslutande kapitlen.

Uppsatsen avslutas med ett diskussionskapitel, där uppsatsens frågeställningar besvaras, och ett avslutande slutsatskapitel där författarens slutsatser kort presenteras. Bland de standardavtal som granskats står det helt klart att ett skepp som utsätts för en piratattack knappast går off-hire av den anledningen. Inte heller de fall där kaptenen tar en omväg för att undvika pirater går skeppet off-hire. Dock ska påpekas att standardavtalens off-hire klausuler i många fall är mycket vaga och därmed måste kompletteras med så kallade ”rider”-klausuler för att avtalet med säkerhet ska få ovan angivna innebörd. (Less)
Abstract
As the threat of piracy has gradually grown by the early 21st century the shipping industry has been forced to find ways to handle and apportion risks. In regard of piracy this thesis treats two main risk handling tools of the shipping industry – the standard forms and insurance. Focus lies mainly with the standard form clauses on “off-hire”. Also related clauses will be brought under the light as well as insurance issues related to this. The thesis strives to answer the question whether a vessel, chartered on a time charter party, goes off-hire due to an attack by pirates. Further on it is investigated whether so called deviation – to avoid pirates – can found ground for the vessel to go off-hire. Lastly also the impact of the insurance... (More)
As the threat of piracy has gradually grown by the early 21st century the shipping industry has been forced to find ways to handle and apportion risks. In regard of piracy this thesis treats two main risk handling tools of the shipping industry – the standard forms and insurance. Focus lies mainly with the standard form clauses on “off-hire”. Also related clauses will be brought under the light as well as insurance issues related to this. The thesis strives to answer the question whether a vessel, chartered on a time charter party, goes off-hire due to an attack by pirates. Further on it is investigated whether so called deviation – to avoid pirates – can found ground for the vessel to go off-hire. Lastly also the impact of the insurance market has on these issues is treated.

The question formulation originates from the conflict of interests that has occurred along with the rise of piracy in the Horn of Africa-region and the common usage of standard form based time charter parties in the shipping industry. One of the characteristics of the time charter party is that the ship-owner provides the crew (including master) while the charterer has the right to instruct the master. Hence, the master, employed by the ship-owner, executes the orders of the charterer. Herein lays the main discrepancy in interests where the safety of the crew and large sums of money is at stake.

The first chapters of the thesis – on piracy, a general view of time charter parties and a specific review of standard forms – are mainly descriptive. Here is identified the discrepancy of interests described above. Further on cases and doctrine is scrutinized for guidance in issues where the standard forms fails to give clear instructions.

Since the negotiating positions of the ship-owner and the charterer are closely related to the insurance market (risks apportioned by the contract may well be insurable and vice-versa) the reader is presented with an overview of the insurance market.

The thesis concludes with an analysis, where the questions posed in the introduction get answered, and a conclusion, where the conclusions of the author are presented.

Among the standard forms that have been reviewed it can safely be said that a vessel suffering a pirate attack rarely go off-hire because of the pirate attack. Neither does a vessel that deviates to avoid such an attack. It must, though, be pointed out that the off-hire clauses of the standard forms in some cases are very vague and need completion with so called “rider”-clauses to get, for sure, the above stated meaning. (Less)
Please use this url to cite or link to this publication:
author
Hallin, Peter LU
supervisor
organization
alternative title
At the Threat of Piracy - Hire Issues in Time Charterparties
course
JURM01 20101
year
type
H3 - Professional qualifications (4 Years - )
subject
keywords
Standardavtal, Standard form, Deviation, Off-hire, Certeparti, Charter party, Sjörätt, Transporträtt
language
English
id
1693923
date added to LUP
2010-11-03 11:35:25
date last changed
2010-11-03 11:35:25
@misc{1693923,
  abstract     = {As the threat of piracy has gradually grown by the early 21st century the shipping industry has been forced to find ways to handle and apportion risks. In regard of piracy this thesis treats two main risk handling tools of the shipping industry – the standard forms and insurance. Focus lies mainly with the standard form clauses on “off-hire”. Also related clauses will be brought under the light as well as insurance issues related to this.  The thesis strives to answer the question whether a vessel, chartered on a time charter party, goes off-hire due to an attack by pirates.  Further on it is investigated whether so called deviation – to avoid pirates – can found ground for the vessel to go off-hire. Lastly also the impact of the insurance market has on these issues is treated. 

The question formulation originates from the conflict of interests that has occurred along with the rise of piracy in the Horn of Africa-region and the common usage of standard form based time charter parties in the shipping industry. One of the characteristics of the time charter party is that the ship-owner provides the crew (including master) while the charterer has the right to instruct the master. Hence, the master, employed by the ship-owner, executes the orders of the charterer. Herein lays the main discrepancy in interests where the safety of the crew and large sums of money is at stake.

The first chapters of the thesis – on piracy, a general view of time charter parties and a specific review of standard forms – are mainly descriptive. Here is identified the discrepancy of interests described above. Further on cases and doctrine is scrutinized for guidance in issues where the standard forms fails to give clear instructions. 

Since the negotiating positions of the ship-owner and the charterer are closely related to the insurance market (risks apportioned by the contract may well be insurable and vice-versa) the reader is presented with an overview of the insurance market.

The thesis concludes with an analysis, where the questions posed in the introduction get answered, and a conclusion, where the conclusions of the author are presented. 

Among the standard forms that have been reviewed it can safely be said that a vessel suffering a pirate attack rarely go off-hire because of the pirate attack. Neither does a vessel that deviates to avoid such an attack. It must, though, be pointed out that the off-hire clauses of the standard forms in some cases are very vague and need completion with so called “rider”-clauses to get, for sure, the above stated meaning.},
  author       = {Hallin, Peter},
  keyword      = {Standardavtal,Standard form,Deviation,Off-hire,Certeparti,Charter party,Sjörätt,Transporträtt},
  language     = {eng},
  note         = {Student Paper},
  title        = {At the Threat of Piracy - Hire Issues in Time Charterparties},
  year         = {2010},
}