International obligations: climate change
At a United Nations climate conference in late 2023, participants championed the successes of climate commitments in previous years. Nevertheless, there was consensus that not enough action has occurred to enable participants to meet the goals of the Paris Agreement in 20151. This agreement set ambitious goals relating to
The Supreme Court’s decision promotes uniformity and predictability in the interpretation and implementation of maritime contracts.
Continue Reading New U.S. Supreme Court decision recognizing enforceability of choice-of-law clauses in maritime contracts, subject to narrow exceptions
The Jones Act is a challenge for the LNG industry in the United States. The Jones Act requires that all vessels used to transport merchandise between points in the United States satisfy certain requirements: to be Jones Act compliant, vessels must be U.S.-built, U.S.-owned, U.S.-flagged, U.S.-operated and U.S.-crewed, subject to certain limited exceptions.
No Jones
BBNJ President Rena Lee proposed yesterday that the Intergovernmental Conference reconvene on June 19, 2023 to adopt the BBNJ treaty. When and how can the treaty then create binding obligations for private companies operating in the high seas?
Continue Reading How the new “BBNJ” or “high seas” treaty may soon result in new obligations for the private sector
The BBNJ agreement, or ‘High Seas Treaty,’ was reached by delegates of the Intergovernmental Conference and is the culmination of talks that have spanned two decades. This historic milestone was met with tears and a standing ovation from delegates.
Continue Reading New United Nations treaty on Biodiversity Beyond National Jurisdiction (BBNJ)
As the global economic recession grows, so does the number of vessel arrests by maritime creditors. We highlight below four trends observed in the vessel arrest cases that are multiplying in the U.S. Some of these trends are tied to the particularities of the COVID-19 recession. Others resurface at every economic downturn. It is particularly important for preferred ship mortgagees to be aware, and beware, of these trends.
First, vendors may be more willing to move to arrest vessels during these uncertain times. For example, a New York marina has arrested multiple vessels docked on its premises for non-payment of its fees. This development is significant because the claims of some vendors may take priority over preferred mortgages. Under U.S. law, maritime liens for necessaries provided to vessels in the U.S. take priority over foreign (i.e., non-U.S. flag) ship mortgages. Maritime liens for necessaries provided outside the U.S. are generally subordinate to preferred mortgages, but the priority of preferred mortgage liens is subject to certain exceptions that are not always well delineated. Whether the arrester’s claims are subordinate or not, it is critical for the mortgagee to intervene in the arrest action. Otherwise, the mortgagee could lose its mortgage lien as a result of the action, without receiving any portion of the proceeds of the sale of the vessel. However, timely intervention can be challenging, especially because the arrester is not always required to notify the mortgagee. Publication of a notice of arrest in a local newspaper may constitute sufficient notice under U.S. law. Prudent lienholders thus maintain a close watch on the trading patterns of vessels, and, if a vessel remains in a port for a longer time than usual, monitor court dockets to be ready to intervene and preserve their claims.
Continue Reading Recent Trends in U.S. Vessel Arrest Cases