Executive Order 14036 encourages competition compliance for shipping companies

By Marjorie Holmes, Oliver Beiersdorf and Louisa Martac on 22 September 2021 Posted in Antitrust and Competition, United States

President Joe Biden has issued Executive Order 14036 “Promoting Competition in the American Economy” (“the EO”) which was signed on 9 July 2021. The EO has the goal to promote competition within the U.S. economy to lower prices for families, increase wages for workers, promote innovation and foster economic growth.

The EO puts forward 72 initiatives for multiple federal agencies. While it does not establish new requirements, it is a call to action for federal agencies to establish policies in order to address the harmful trends associated with corporate consolidation, decreased competition and the ultimate harm they cause to America’s consumers, workers, farmers and small businesses.

Joe Biden is attempting to enforce competition compliance more vigorously than his predecessor. As illustrated by the EO, ship owners, carriers and airlines need to ensure that their competition compliance programmes are up to date. Some shipping companies do not have compliance programmes in place as they are advisory, rather than compulsory. As can be seen in the EO, rather than make it compulsory, Biden’s administration directs the Department of Transportation to consider issuing clear rules and encourages both the Surface Transportation Board and the Federal Maritime Commission to establish certain rules in relation to the shipping industry, air travel and rail travel. Continue Reading

New initiatives concerning sustainable transportation is published by the European Commission

By Adam Hedley, Jennifer Travers and Michaela Hanzelova on 23 August 2021 Posted in Environment, European Law, Transportation

Last month, the European Commission published two new proposals for EU regulations to encourage the use of sustainable fuels in aviation and shipping – namely the ReFuelEU Aviation and FuelEU Maritime initiatives, respectively. Both proposals are subject to public feedback until 5 October.

Court of Appeal clarifies that term in trade recap stating that certificate of quality is final and binding is not qualified

By Nick Austin and Nick Moon on 14 July 2021 Posted in Case Law, Court of Appeal

BP GTCs 2007: Septo Trading Inc v Tintrade Limited [2021] EWCA Civ 718

Introduction

In Septo Trading Inc v Tintrade Limited ([2021] EWCA Civ 718) the Court of Appeal overturned a High Court decision ([2020] EWHC 1795 (Comm)) that a term in a trade recap which provided that an inspector’s results were “binding on the parties save for fraud or manifest error” was qualified by the BP 2007 General Terms and Conditions for FOB sales (the “BP GTCs 2007”). Our blog post on the High Court’s decision can be found here. Continue Reading

U.S. cruises could restart by mid-July, U.S. CDC says

By Oliver Beiersdorf and Justin deBettencourt on 6 May 2021 Posted in Cruises

Recently, on April 28, 2021 the U.S. Centers for Disease Control and Prevention (“CDC”) distributed a letter to the cruise industry in which it notified the industry regarding clarifications and amplifications of the CDC’s Conditional Sailing Order (“CSO”) (the Letter). The CSO provided guidelines for the resumption of cruises from the United States. Notably, following the Letter, the CDC’s spokesperson stated that passenger voyages from the United States could resume in mid-July depending on pace and compliance with the CSO. Continue Reading

An update on security and enforcement during a global pandemic

By Lisa Meller and Nora Ling on 28 April 2021 Posted in COVID-19, Enforcement, Security

Security

Obtaining security for a party’s claim on the one side or security for a party’s costs on the other can be crucial remedies in times of a global pandemic where there may be issues with enforcement due to the closures of courts, delayed processes and a general lack of available assets.

Security and enforcement interact closely with each other where unless security has been obtained in advance, the process of issuing enforcement proceedings may be disproportionately expensive or time-consuming, particularly where it is difficult to locate assets. In practical terms, it is often pointless to arbitrate if the claim is not secured. Continue Reading

Bunkers Legerdemain

By Jody Wood on 22 April 2021 Posted in Case Law, Time Charters

Reed Smith recently acted for a mortgagee client who successfully purchased a vessel at a judicial auction, following default by a borrower under a loan facility and the vessel’s subsequent arrest. Continue Reading

Hire and withdrawal

By Adam Swierczewski and Eleni Pilaviou on 19 April 2021 Posted in English law, Hire

Introduction

Under English law, charterers’ obligation to pay hire as it falls due is absolute but the right to withdraw a vessel in case of default in charterers’ obligation to pay does not arise automatically. An express term will therefore be required. Continue Reading

Performance guarantees, vessel arrests, and implied terms

By Nick Austin and Vassilis Mavrakis on 30 March 2021 Posted in Guarantees, Vessel arrests

In CVLC Three Carrier Corp and Anor v Arab Maritime Petroleum Transport Company ([2021] EWHC 551 (Comm)), Reed Smith (Nick Austin, Charles Weller, Alfred Perkins, Vassilis Mavrakis) represented two shipowning companies in successfully overturning an arbitration award which held that there was an implied term in a performance guarantee that the beneficiary would not seek further security beyond that created by the guarantee itself, thus protecting the guarantor’s vessels from arrest. Continue Reading

The Crucial Role of the DPA in Casualty Response

By Voirrey Blount on 11 March 2021 Posted in Casualties

Introduction

At nautical college mariners are taught about the importance of communication, particularly in emergency situations. Similar to the tale of Goldilocks, the trainers teach you, not too much, not too little, just enough. This is drilled into seafarers in all their courses such as firefighting, sea survival, Bridge Resource Management etc. But it must be remembered that communication goes two ways. A Master on a ship that is experiencing an emergency is often communicating with a person who could be many time zones away and it may be that person may not actually have any marine experience, so explaining the situation can be a difficult and time consuming event. It is also not something that is commonly practised in drills, unlike the physical donning of suits and practising with a fire hose for example, even though it is a crucial part of the emergency process. Continue Reading

During ocean-going vessel inspections, California is to increase fuel sample analysis

By Todd O. Maiden and Eric Schmoll on 8 March 2021 Posted in Regulatory Compliance

Beginning in May 2021, California Air Resources Board (“CARB”) enforcement staff will begin additional analysis of fuel samples taken during ocean-going vessel inspections. CARB is seeking to improve compliance due to changing international regulatory sulfur limits, which has created situations where a vessel’s fuel may meet international and California regulatory sulfur limits, but not meet distillate grade fuel standards, as required by California law.