Maritime Law Shipping and Maritime Law 5 — Questions and Answers
Question 1: The 'cabotage' principle, embodied in the Jones Act's vessel requirements, mandates that cargo shipped between US ports must be carried on vessels that are:
- Registered in any IMO member nation
- Built in the US, owned by US citizens, crewed by US citizens or permanent residents, and US-flagged (Correct answer)
- Inspected by the US Coast Guard within the prior 12 months
- Operating under a collective bargaining agreement with a US union
Correct answer: Built in the US, owned by US citizens, crewed by US citizens or permanent residents, and US-flagged
The Jones Act's cabotage provisions require US-built, US-owned, US-flagged vessels crewed by US citizens or permanent residents for coastwise trade between US ports.
Question 2: In maritime salvage law, what must a salvor prove to claim a salvage award?
- The vessel owner requested the salvage services in writing
- Maritime peril, voluntary service not owed by duty, and success in saving the vessel or cargo (Correct answer)
- The salvor incurred expenses exceeding $50,000
- The vessel was insured at the time of the salvage operation
Correct answer: Maritime peril, voluntary service not owed by duty, and success in saving the vessel or cargo
A valid salvage claim requires proof of maritime peril threatening the property, voluntary service rendered without a pre-existing duty, and at least partial success in saving the property.
Question 3: What is a 'letter of indemnity' (LOI) commonly used for in shipping practice?
- To replace a lost bill of lading and induce the carrier to release cargo (Correct answer)
- To certify the seaworthiness of a vessel before a voyage
- To authorize a port agent to act on behalf of the shipowner
- To guarantee payment of freight charges by a bank
Correct answer: To replace a lost bill of lading and induce the carrier to release cargo
An LOI is issued by the cargo owner or shipper to induce the carrier to release cargo without production of an original bill of lading, with the LOI providing an indemnity against resulting liability.
Question 4: Under the MARPOL Convention, 'Annex I' primarily regulates:
- Sewage discharge from passenger vessels
- Prevention of pollution by oil from ships (Correct answer)
- Air pollution from ship exhaust emissions
- Underwater noise pollution affecting marine mammals
Correct answer: Prevention of pollution by oil from ships
MARPOL Annex I establishes regulations for the prevention of oil pollution from ships, including requirements for oil record books, equipment standards, and discharge restrictions.
Question 5: A 'through bill of lading' in multimodal transport is significant because it:
- Covers only the ocean leg of a shipment
- Covers the entire journey from origin to final destination under a single contract, potentially through multiple carriers (Correct answer)
- Is issued only by freight forwarders, not ocean carriers
- Limits carrier liability to the maritime portion only
Correct answer: Covers the entire journey from origin to final destination under a single contract, potentially through multiple carriers
A through bill of lading covers multimodal transport from origin to final destination under one document, with the issuing carrier responsible for the entire journey including inland legs.
Question 6: In US admiralty law, the 'saving to suitors' clause means:
- Maritime claimants can only sue in federal admiralty courts
- Plaintiffs in maritime cases retain the right to pursue common law remedies in state courts or via jury trial (Correct answer)
- Shipowners are saved from liability in certain casualty scenarios
- Cargo owners can recover full value despite COGSA limitations in some circumstances
Correct answer: Plaintiffs in maritime cases retain the right to pursue common law remedies in state courts or via jury trial
The 'saving to suitors' clause (28 U.S.C. § 1333) preserves a maritime plaintiff's right to bring common law claims in state court or seek a jury trial, rather than being restricted to bench trials in admiralty.
Question 7: Which body administers the international Ship and Port Facility Security (ISPS) Code?
- The US Department of Homeland Security exclusively
- The International Maritime Organization (IMO), with implementation by member states (Correct answer)
- The World Trade Organization (WTO)
- The International Chamber of Shipping (ICS)
Correct answer: The International Maritime Organization (IMO), with implementation by member states
The ISPS Code is an IMO framework adopted after 9/11 that sets security standards for ships and port facilities, implemented by member states through their national maritime administrations.
Maritime Law Shipping and Maritime Law 5
The 'cabotage' principle, embodied in the Jones Act's vessel requirements, mandates that cargo shipped between US ports must be carried on vessels that are: