Vessels are vital for the movement of people and property (cargo) over inland waters, across blue water, and in support of offshore energy operations in post-Ida recovery. During post-Ida salvage and repair operations, vessels are necessary. Ida resulted in the destruction of terminals, docks, and platforms and also resulted in vessels “breaking away” from their moorings and sustaining heavy damages.
Vessels are hired, rented, or leased under the terms and conditions of charter parties and Master Service Agreements, which dictate the use, warranties, obligations, and allocation of risks between the parties. Understanding the basic structure of a vessel hire is important, just as when we rent a car or truck for personal or business purposes.
TYPES OF CHARTER PARTIES
There are three basic forms of charter: bareboat/demise, time, and voyage. In a bareboat arrangement, the vessel owner turns over control of the entire vessel to the charterer (renter), who crews and operates the vessel as if an owner pro hac vice. If the vessel is turned over in a seaworthy condition, the charterer becomes liable for any damages and assumes operational liabilities. The vessel must be returned in “good order” less any “ordinary wear and tear.”
As an owner pro hac vice, the charterer may assert a limitation of liability defense or proceeding for any third-party claims. A limitation of liability proceeding is a concursus filed in federal court where all claims arising from an incident against a...
Read Full Story: https://www.natlawreview.com/article/charter-party-and-service-agreements-will-lead-way-to-ida-recovery-have-consequences
Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.