pi_circular Compliance & regulationOperational risk Shipowners' Club
Emergency Contact Deviation Home Latest updates Publications Deviation 5 Mar 2025 View PDF Sign up for alerts The duty of utmost dispatch and the concept of deviation are central to understanding the operation of charterparties and the requirements which such contracts place upon owners and carriers. This article provides a short introduction to these concepts. For more detailed guidance, please contact the Club’s Claims team, who will be happy to assist. Understanding the duty of utmost dispatch When entering into a contract of carriage—whether through a bill of lading, seaway bill, or contract of affreightment—a carrier agrees to transport cargo from the loading port to the designated discharge port. A fundamental obligation of the carrier is to proceed with utmost dispatch along the agreed route, avoiding any unreasonable geographical deviations or delays. However, unforeseen circumstances can necessitate changes to the original plan. These can be unrelated to the operation of the vessel such as political instability, or adverse weather, or directly linked to vessel operation such as vessel repairs or the need for fuel and other supplies. It is essential to note that an intentional and unreasonable deviation from the designated route, unless covered by appropriate liberty clauses, may constitute a breach of contract. In various jurisdictions, unjustified deviation can lead to severe repercussions for the carrier, including the loss of the right to limit or exclude liability for cargo claims linked to the deviation. This means the carrier could be held fully responsible for losses that might otherwise be mitigated under the Hague and Hague-Visby Rules. As a result, carriers may face significant liabilities that potentially fall outside the Club’s P&I cover. Justified vs. unjustified deviation It is difficult to find a set of rules which provide a specific definition of what would constitute as a reasonable or justified deviation. Most of the time, they m
Deviation
Shipowners' Club
Read full article at Shipowners' Club →
Opens Shipowners' Club in a new tab