SEA VENTURE In thi s issue 5Non-Paymentof Hire 13ContractingPartiesBeware 13“Ranjan ” to theRescue 14NSF– “Satisfactory Quality”? 15MaritimeLabour Convention2006 ISSUE21 WelcometothelatestSeaVenture publicationwhichcontainstheusual mixofrecentlegaldecisionsand topicalissues. Renewal2013 TheBoardsetastandardincreaseof 7.5%,seekingtoachievethe appropriatebalancebetweentheneed toincreasethelevelofpremiuminthe lightofthecurrentlevelofclaims,and thefactthatmostshipownersare tryingtocopewithadistressedfreightmarket.Intheeventthe achievedincreasewasinexcessofthestandardincreasereflecting theadjustmentoftermsforfleetsbasedontheirindividualrecords. ThisresultshouldputtheClubinapositiontoimprovethe operatingperformancegoingforward. Attherenewaltherewasasmallincreaseinenteredtonnage which,takentogetherwithtonnageenteredduringtheyear,has increasedtheentryto101.25millionGT.Thisrepresentsan increaseofapproximately5%yearonyear.Mostoftheincrease camebywayofadditionstofleetsalreadyenteredintheClub.At present,thegrowthintheClub’sbusinessiscomingmainlyfrom theeastandtheAmericas,reflectingthedifficultcircumstancesin theEuropeaneconomiesandforshippingcompaniesbasedinthis region.TheClubhasalwaysbelievedthatapolicyofdiversity,both ingeographicalareaandbyvesseltype,isbeneficialintermsof spreadingtheriskaswellasensuringthatstrategictargetsaremet. Thedepressedconditionofthefreightmarketsisnowinitsfifth year.Itisclearthatmoreandmoreshippingcompaniesare experiencingrealfinancialstress.Thelongerthesituationpersists thegreaterthedifficultiesthatarelikelytoresult.Insucha demandingenvironmenttheClubwillstrivetoensurefinancial stabilityandtoprovidetheMemberswiththehighestandmost efficientlevelsofservice. AseverwearegratefultoallSeaVenturecontributorsandhope youfindthisissueofinterest. GaryRynsard 28June2013 CON EDITORIALTEAM NaomiCohen MalcolmShelmerdine SianMorris AndrewHawkins PaulBrewer SeaVentureisavailableinelectronicformat. Ifyouwouldliketoreceiveadditionalcopies ofthisissueorfutureissuesinelectronic formatonlypleasesendyournameand emailaddresstoseaventure@simsl.com. Feedbackandsuggestionsforfuturetopics shouldalsobesenttothisaddress. 4 INTRODUCTION GaryRynsard 6 SEAVENTURE 2 10 NTENTS 4Off-HireClause–NetLossofTime? 4STSTransfer–WithholdingConsent 5Non-PaymentofHire–RighttoWithdraw 6DeliveryWithoutBillsofLading–Bank’sRighttoRecover 6 TemporarySuspensionofCharter–IsNoticeRequired? 7CaliforniaVesselFuelStandards–FinesforViolations 7CharterpartyIndemnities–ExpressorImplied? 8NewMARPOLAnnexVI–From“MagicPipes”to“MagicFuel”? 9MaintenanceandCure–NoAutomaticRestitution 9MARPOLAnnexVI–NorthAmericanECA 10Arrest–Off-HireEvent? 11“NorwegianBreakaway”–NewCruiseVessel 12“ChinaFortune”–NewCapesizeforCMT 13FamilyatSea–“Ranjan”totheRescue 13ContractingPartiesBeware–ArbitrationClauseNotImplied 14NoticeofReadiness–PermissibleMethodofService 14NorwegianSaleform–Is“SatisfactoryQuality”Implied? 15MLC2006–New‘BillofRights’forSeafarers 16ConstructiveTotalLoss–FrustrationofCharter? 16ExceptiontoLaytime–GovernmentInterferenceorNot? 17NonPaymentofHire–ConductAffirmingCharterparty 17EngineBreakdownandDelay–WhoBearstheLoss? 18CargoDamage–ContainersandExclusionClauses 18Overpayments–EntitlementtoRefund? 19Introducing–MutualServiceKorea 19Enhanced–MobileApps 20AgiasmosatClub’sPiraeusOffice 20NewSteamshipMutualWebsite CONTACT Forfurtherinformation,pleasecontact: SteamshipInsuranceManagementServicesLimited AquaticalHouse 39BellLane LondonE17LU Telephone:+44(0)2072475490and+44(0)2078958490 Websit