LEGAL discussions on Red Sea war risk has centred on how much the contracting parties knew of the dangers to be encountered on a voyage when signing the contract, reports Hellenic Shipping News Worldwide
LEGAL discussions on Red Sea war risk has centred on how much the contracting parties knew of the dangers to be encountered on a voyage when signing the contract, reports Hellenic Shipping News Worldwide. 'A landmark judgment addressed the obligations of shipowners and charterers in the face of war risks, particularly in piracy-prone regions like the Gulf of Aden,' said an essay from, London law firm HFW (formerly Holman Fenwick Willan).
The court's interpretation of contractual clauses and the assessment of known risks at the time of chartering set important precedents for future disputes, according to a client alert from HFW lawyer Reed Smith, who contributed to the essay.
The court's interpretation of contractual clauses and the assessment of known risks at the time of chartering set important precedents for future disputes, he said.
In the case of the attack on the Marlin Luanda in January it sent shockwaves through the maritime industry, reminiscent of the Tanker War of the 1980s.
'The vessel, on route from Egypt to Singapore, fell victim to a missile strike by Houthi forces from the Yemeni mainland. While the crew managed to extinguish the resulting fire with support from naval vessels, the incident underscored the persistent threat posed by conflicts in the region,' said the HFW essay earmarked for general circulation.
Historical precedents, such as the Tanker War, provide valuable insights into how salvage operations and legal arbitration have addressed similar challenges in the past, the essay continued.
'Given the parallels between this most recent incident and the Tanker War, we thought it be helpful to look back at our salvage database to consider how the market has historically dealt with similar cases,' said HFW partner Tom Walters and associate Henry Clack.
'It is easy to fall into the trap of assuming that, simply because a laden tanker had been struck by a missile and was on fire, an arbitrator would find that there was a risk of fire spread and/or subsequent explosion,' HFW continued.
'This was, however, not the case and in several awards the arbitrators held that, despite the vessels in question being heavily damaged, there was only a low order risk of fire spread or explosion.'
HFW found that factors such as the presence of unburnt fuel, the extent of damage, and the efficacy of onboard firefighting equipment all influenced assessments of risk. Moreover, the potential for second strikes in conflict zones added another layer of complexity.
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