Shipping Lawyer Shipping Lawyer 5

Question 1

What is a 'bareboat charter' and how does it differ from a time charter in terms of control and liability?

Accepted Answer

A bareboat charter transfers operational control and manning to the charterer, who becomes the de facto owner/operator; a time charter leaves navigation and crewing with the shipowner

Answer

Under a bareboat (demise) charter, the charterer takes complete possession, control, and navigation of the vessel, assuming full liability as if it were the owner, whereas a time charterer merely directs commercial employment while the owner manages the ship.

Question 2

Under OPA 90 (Oil Pollution Act of 1990), who is the 'responsible party' for oil spill liability from a vessel?

Accepted Answer

The owner, operator, or demise charterer of the vessel

Answer

OPA 90 defines the responsible party for a vessel as the owner, operator, or demise charterer, who is strictly liable for removal costs and damages up to the statutory liability limits.

Question 3

In admiralty, what is the 'economic loss rule' and how does it affect cargo damage claims against third-party tortfeasors?

Accepted Answer

It bars recovery of purely economic losses unaccompanied by physical damage to the claimant's own property

Answer

Following Robins Dry Dock v. Flint (1927), US admiralty courts generally deny recovery for pure economic loss (e.g., lost profits) to parties who suffered no physical damage to their own property from a third-party tort.

Question 4

What is 'forum selection clause' in a bill of lading and is it enforceable in US courts?

Accepted Answer

A clause designating a specific court or country for dispute resolution; generally enforceable under The Bremen v. Zapata principle

Answer

Following M/S Bremen v. Zapata Off-Shore Co. (1972), the Supreme Court held that forum selection clauses in maritime contracts are prima facie valid and enforceable unless shown to be unreasonable or unjust.

Question 5

A cargo insurer pays a shipper's cargo damage claim and then seeks to recover from the negligent ocean carrier. What legal doctrine allows the insurer to do this?

Accepted Answer

Subrogation, whereby the insurer steps into the shoes of the insured to assert the insured's rights

Answer

Subrogation allows a cargo insurer who has paid a loss to stand in the place of the insured and bring a cargo claim against the ocean carrier or other responsible party.

Shipping Lawyer Practice Test

Shipping Lawyer Practice Test

Shipping Lawyer Shipping Lawyer 5