Shipping Offshore

  • Shipping Offshore

    2019

    Les vår Shipping Offshore Update June 2015

  • Shipping Offshore

    2019

    Norwegian Court of Appeal strikes another blow against forum shopping in direct action case

    In a recent decision, the Court of Appeal held that Norwegian courts do not have jurisdiction under the Lugano Convention in a direct action concerning a ship collision in the Singapore Strait. The decision follows the Supreme Court's decision last year which set aside the Court of Appeal's previous decision which had found that there was jurisdiction.

  • Shipping Offshore

    2019

    Poseidon Principles – Global framework for responsible ship finance

    Major international shipping banks have recently launched a collaboration for integration of climate considerations into their lending decisions. The "Poseidon Principles" establish a common, global baseline to quantitatively assess and disclose whether financial institutions’ lending portfolios are in line with adopted climate goals.

  • Shipping Offshore

    2019

    Britiske Høyesteretts avgjørelse “Renos”-saken om kondemnasjon og reguleringen under den nordiske sjøforsikringsplanen

  • Shipping Offshore

    2019

    The UK Supreme Court’s decision in the “Renos” on CTL and the position under the Nordic Plan

    The UK Supreme Court’s recent decision in the “Renos” (Sveriges Angfartygs Assurans Forening (The Swedish Club) and others v Connect Shipping Inc and another, [2019] UKSC 29) will be a landmark case on marine insurance under the English Institute Time Clauses Hulls (1/10/83) ("ITCH") conditions. It clarifies that when determining whether a vessel is a constructive total loss (“CTL”) under the ITCH conditions, regard should be had to (a) the costs incurred prior to the owners’ notice of abandonment, but not (b) remuneration payable under the SCOPIC clause. The decision will have significant importance in the insurance market because of the financial and practical implications. But what would be the position under the Nordic Marine Insurance Plan of 2013 version 2019 (“Nordic Plan”)?

  • Shipping Offshore

    2019

    Shipbuilding Portal – digital building contracts

    The Shipbuilding Portal is a user-friendly online solution for the drafting of shipbuilding contacts based on the Standard Form Norwegian Shipbuilding Contract 2000, often referred to as "Ship 2000". It simplifies the drafting process and provides access to relevant practical information.

  • Shipping Offshore

    2019

    Skipsbyggingsportal - digitale byggekontrakter

    Wikborg Rein lanserer en ny digital tjeneste som retter seg mot shipping-industrien. Skipsbyggingsportalen gir enkel tilgang til praktisk informasjon om skipsbyggingskontrakter og gjør det enklere å opprette byggekontrakter. Portalen er en nettbasert og brukervennlig løsning for opprettelsen av standard byggekontrakt «Skip 2000».

  • Shipping Offshore

    2019

    Read our Shipping Offshore Update June 2019 Nor-Shipping

  • Shipping Offshore

    2019

    Shipbuilding Portal – digital building contracts

    Wikborg Rein is launching a new digital service aimed at the shipping industry. The Shipbuilding Portal is a user-friendly online solution for the drafting of shipbuilding contacts based on the Standard Form Norwegian Shipbuilding Contract 2000, often referred to as "Ship 2000". It will simplify the drafting process and provide access to relevant practical information.

  • Shipping Offshore

    2019

    Quiet enjoyment letters – benefit to lenders?

    Quiet enjoyment letters ("QEL"s) are often used where a ship, rig or other unit being financed is subject to a long-term charterparty to govern the inter-relationship between the owner, its financiers and the charterer. But what is a QEL and do they have any benefit for the lenders?

  • Shipping Offshore

    2019

    Finance and operating leases in the Chinese market – key differences

    Chinese sale and leaseback deals are now a well established financing option in the shipping sector. Whilst Chinese leasing companies have traditionally opted to go down the finance lease route, they are increasingly assuming more risk and opting for either a full operating lease arrangement or a hybrid structure adopting elements of both finance and operating leases.

  • Shipping Offshore

    2019

    Worldwide freezing orders upheld in multi-national shipping fraud case

    In a recent decision by the English High Court (Manchester Shipping Ltd v Balfour Worldwide Ltd & Anor [2019] EWHC 194 (Comm).) two worldwide freezing orders in a multi-national shipping fraud case were upheld, rejecting the defendant's allegations of breaches of full and frank disclosure and provided useful confirmation of the standing of an intermediary charterer to claim for the full value of the hire.

  • Shipping Offshore

    2019

    Court underlines charterers’ obligation to maintain class under bareboat charter

    A recent decision of the High Court in London means that shipowners will have a decisive right in remedy against bareboat charterers who fail to maintain the class status of a vessel. It will also serve as a reminder to charterers of the importance of documentary obligations under such charters.

  • Shipping Offshore

    2019

    Insolvency in China – how to minimise risk when a customer is facing bankruptcy

    Ever since China strengthened its legal framework for bankruptcy proceedings in 2007, the number of Chinese bankruptcies has increased significantly. For the seller in a supply contract, protection against bankruptcies should be considered when drafting the contract and suitable protections built in, to the extent possible.

  • Shipping Offshore

    2019

    Improving arbitration in Norway

    There are a number of ways to make arbitration more attractive and efficient and the inherent flexibility of arbitration provides practitioners with the necessary tools to achieve just this aim without resorting to the development and adoption of further written "guidelines" or "best practices".

  • Shipping Offshore

    2019

    Oslo – an efficient market for capital raisings

    The Norwegian capital markets offers a flexible, time- and cost efficient process for equity issues (private placements). A key consideration for investors is, however, tradeable securities. The N-OTC can offer instant low threshold listings of shares with a minimum of reporting requirements.

  • Shipping Offshore

    2019

    Norway prepares for ratification of the Nairobi Wreck Removal Convention

    The Norwegian Parliament has recently decided that Norway shall ratify the Nairobi Wreck Removal Convention and that the Convention shall be given effect not only in Norway's exclusive economic zone, but also in its territorial waters. The Norwegian Parliament has also adopted legislation to implement the Wreck Removal Convention into Norwegian law once ratified.

  • Shipping Offshore

    2019

    The bunker balance – owners consider LNG in advance of 2020

    Using LNG rather than fuel oil is one of a range of options available to owners seeking to comply with IMO 2020. Given that shipbrokers have long predicted the emergence of a two-tier shipping market with 'greener' ships commanding a premium over older less eco-friendly vessels, what then is the future for LNG bunkering and what challenges does it present?

  • Shipping Offshore

    2019

    Readiness for the global sulphur cap - BIMCO's new IMO 2020 clauses

    Most of those involved in the shipping industry will by now have a clear picture of the requirements under the IMO 2020 global sulphur cap on marine fuels. Attention has therefore turned to the steps that need to be taken to put those requirements into practice. Two clauses recently introduced by BIMCO are aimed at addressing certain contractual aspects of the IMO 2020 requirements as they apply to time charterparties.

  • Shipping Offshore

    2019

    Autonomous ships in unchartered waters

    Unmanned ships are sailing onto the horizon and the Norwegian maritime cluster is uniquely positioned to take a leading role internationally in the development and commercialisation of this new technology. But is the legal framework keeping pace?

  • Shipping Offshore

    2019

    Charter terminated for want of class

    This decision will provide comfort for Owners, and serve as a reminder to Charterers of the importance of documentary obligations within a bareboat charter.

  • Shipping Offshore

    2018

    Read our Shipping Offshore Update December 2018

  • Shipping Offshore

    2018

    New version of Nordic Marine Insurance Plan braces for Brexit – bolstering Nordic arbitration

    The 2019 version of the Nordic Marine Insurance Plan of 2013 (the ‘’Plan’’) has been approved by the Plan’s Standing Revision Committee and will formally enter into force on 1 January 2019. The revisions include a clearer borderline between war and marine risks, an automatic reinstatement clause for loss of hire and several other amendments. It also introduces an arbitration clause.

  • Shipping Offshore

    2018

    Nordic Offshore and Maritime Arbitration

    NOMA – the Nordic Offshore and Maritime Arbitration Association – was launched earlier this year with the aim at providing high-quality, cost-effective and quick dispute resolution as an alternative to the ordinary courts, ad hoc arbitrations as well as London arbitration.

  • Shipping Offshore

    2018

    Legal digital innovation: The future is here

    One of the benefits of the digital innovation revolution is the potential to implement solutions that eliminate labour intensive tasks e.g. large volumes of documents in due diligence or disclosure exercises can now increasingly be analysed and categorized far more efficiently by AI-driven systems. The new eDiscovery system is one of these solutions, and has recently been used by Wikborg Rein in a number of cases.

  • Shipping Offshore

    2018

    Guidance on drafting and interpreting contractual sanctions clauses

    In this article, we discuss the first UK case dealing with the scope of a sanctions exclusion clause in the context of the re-imposed US sanctions on Iran and the EU Blocking Regulation. We also provide some pointers for in-house counsel drafting sanctions exclusion clauses.

  • Shipping Offshore

    2018

    When are the owners obliged to commence the approach voyage to the loading port?

    CSSA Chartering and Shipping Services SA v Mitsui OSK Lines Ltd [2018] EWCA Civ 2413 (The Pacific Voyager) In this important decision the Court of Appeal (England and Wales) held that where a voyage charterparty contains no provision as to the vessel's expected time of arrival or readiness to load in the loading port, the inclusion of the expected time of arrival at the last discharge port under the previous charterparty provides the basis for an absolute obligation on the owners to commence the approach voyage to the loading port.

  • Shipping Offshore

    2018

    Norwegian Supreme Court clarifies distribution of interest component in global limitation fund

    In a recent judgment in the “Full City” limitation fund proceedings, the Norwegian Supreme Court clarified how a global limitation fund established pursuant to the Norwegian Maritime Code is to be distributed. The Supreme Court held that the interest component in the limitation fund should only be distributed on the claims for interest and not on the other claims filed in the fund because the owners’ limitation of liability should remain the same regardless of whether a limitation fund is established or not.

  • Shipping Offshore

    2018

    Unit limitation for bulk and liquid cargoes

    A recent Court of Appeal decision confirms that Article IV(5) of Hague Rules does not apply to bulk and liquid cargoes

  • Shipping Offshore

    2018

    Ship and rig recycling

    International conventions and local regulations combine to create a complex regime, which is often overlooked. The sale of a ship or rig to an intermediate buyer, who then sells the asset on to a shipbreaking facility, will not necessarily insulate the original owner from future liability or reputational damage.

  • Shipping Offshore

    2018

    Legal digital innovation: The future is here

    For Wikborg Rein, digital innovation means implementing solutions that eliminates labour intensive tasks to the clients benefit. Multiple documents can be analysed and categorized far more efficiently by AI-driven systems.

  • Shipping Offshore

    2018

    Wikborg Rein appoints two new partners in London

    We have appointed two new partners to our Shipping, Trade, Energy & Infrastructure team in London.

  • Shipping Offshore

    2018

    Read our Green Shipping articles

  • Shipping Offshore

    2018

    Who’s liable anyway? – Allocation of liability in Maritime Environmental Law

    Regulation of environmental­ liability in a maritime context first received international attention in the aftermath of the Torrey Canyon and Exxon Valdez incidents.

  • Shipping Offshore, Ship and rig recycling

    2018

    Recycling – where ships go to die

    A ship’s life cycle ends with it being dismantled and recycled. Up to 95 % of a ship’s weight is made up of steel, which can be sold and reused. A modern ­recycling process, which also includes the recycling of other materials, can be very efficient and is a positive step towards a greener shipping industry.

  • Shipping Offshore

    2018

    Retrofits – the approach to innovative technology and new equipment

    A ship’s life cycle ends with it being dismantled and recycled. Up to 95 % of a ship’s weight is made up of steel, which can be sold and reused. A modern ­recycling process, which also includes the recycling of other materials, can be very efficient and is a positive step towards a greener shipping industry.

  • Shipping Offshore

    2018

    Support schemes for green and sustainable shipping in Norway

    The Norwegian government has on several occasions reiterated how green solutions within shipping and the maritime industry are of high importance and its ambition that Norway should be front-runner in developments of green technology and low-emission solutions.

  • Shipping Offshore

    2018

    Green funding for shipping in the Norwegian Capital Markets

    The Norwegian capital markets have been and continue to be attractive and a widely used sources of equity and debt funding for shipping and offshore companies from around the globe.

  • Shipping Offshore

    2018

    Ballast water – managing risks of zoological pollution

    Zoological pollution is becoming an increasing concern for commercial shipping worldwide. The threat of invasive species spreading through the intake and discharge of ballast water has resulted in the IMO adopting the International Convention for the Control and Management of Ships’ Ballast Water and Sediments in force as of 8th of September 2017 (the “Convention”).

  • Shipping Offshore

    2018

    New emission regulations in shipping

    The push for the international shipping industry­ to reduce its role in global air emissions has resulted in new environmental rules and regulation being introduced at an accelerated pace.

  • Shipping Offshore

    2018

    Who bears the risk of concurrent delay?

    The English Court of Appeal has now spoken.

  • Shipping Offshore

    2018

    ESA has closed its assessment of the Norwegian International Ship Register

    In 2014, ESA commenced an audit of the Norwegian International Ship Register. Subsequently, the EFTA Surveillance Authority (the “ESA”) opened a case against Norway for a possible breach of the EEA Agreement. The case concerned a geographical trade limitation applicable to ships flying the flag of the Norwegian International Ship Register.

  • Shipping Offshore

    2018

    Chinese financial leasing – an increasingly viable alternative to bank debt for a capital intensive industry

    Shipowners require vast amounts of liquidity in order to fund the CAPEX costs of acquiring new and second-hand tonnage as well as to fund their operations on a day to day basis and Chinese lease finance offers an increasingly viable alternative to the more traditional bank finance that shipowners have traditionally relied on.

  • Shipping Offshore

    2018

    Chinese financial leasing – an increasingly viable alternative to bank debt for a capital intensive industry

    Shipowners require vast amounts of liquidity in order to fund the CAPEX costs of acquiring new and second-hand tonnage as well as to fund their operations on a day to day basis and Chinese lease finance offers an increasingly viable alternative to the more traditional bank finance that shipowners have traditionally relied on.

  • Shipping Offshore

    2018

    The Inter-Club Agreement – A "NO FAULT" REGIME?

    In Transgrain Shipping (Singapore) Pte Ltd v Yangtze Navigation (Hong Kong) Ltd [2017] EWCA Civ 2107 the Court of Appeal recently provided important clarification in relation to the apportionment of liability for cargo claims as between shipowners and charterers under the Inter-Club Agreement ("the ICA").

  • Shipping Offshore

    2018

    "Kvitnos" – when is a commercial agreement entered into for towage assistance to a distressed vessel?

    A recent judgment from Agder Court of Appeal in Norway regarding remuneration for towage of the vessel “Kvitnos” underscores that in circumstances where commercial terms have been discussed a party wishing to claim a salvage award should expressly reserve their rights to do so.

  • Shipping Offshore

    2018

    New FIDIC Yellow Book

    In December 2017, FIDIC launched the second editions of its Red, Yellow and Silver Books to reflect legal and practical developments since the first editions were issued in 1999. In this article we will look at the key changes introduced to the FIDIC Yellow Book, which is widely used in offshore projects.

  • Shipping Offshore

    2018

    Letters of indemnity for delivery of cargo without production of a bill of lading

    In the SONGA WINDS [2018] EWHC 397, The High Court, London decides that LOIs requesting delivery without production of bills of lading to an intermediate trader of the cargo are still triggered even though delivery was to the trader's buyer.

  • Shipping Offshore

    2018

    High chairs and high stakes: Limitation of liability clauses in Norwegian law offshore contracts

    Disputes are expensive, particularly those involving large construction projects where there may have been changes to the scope of work and cost overruns. Contractors therefore face a difficult choice when trying to close the final account, either negotiating a resolution on any terms available or funding litigation which they may not be able to afford.

  • Shipping Offshore

    2018

    US withdrawal from the Iran Nuclear Deal – what now for shipping and maritime trade with Iran?

    On 8 May 2018, President Trump announced that he was withdrawing the US from the Iran Nuclear Deal, otherwise known as the Joint Comprehensive Plan of Action ("JCPOA"). The US sanctions regime is now likely to return to the state it was in before the JCPOA, with clear ramifications for shipping and maritime trade with Iran.

  • Shipping Offshore

    2018

    New Proposed Program for Offshore Drilling in the US

    On January 4, 2018, the Trump administration unveiled a draft program for increased development of U.S. offshore oil and gas resources. The 2019-2024 National Outer Continental Shelf Oil and Gas Leasing Draft Proposed Program (the "DPP") calls for the Bureau of Ocean Energy Management to offer leases for offshore acreage in 25 regions along America's coast. If instituted, the DPP would open up almost the entirety of the U.S. continental shelf to drilling (see map below):

  • Shipping Offshore

    2018

    BARECON 2017 – a broad brush revision of a widely used form

    BIMCO has today, 13 December, released the new BARECON 2017 – a revision of its 16 year old predecessor BARECON 2001. This represents an important update to one of the most commonly used maritime contracts – regularly applied for all types of maritime assets across all sectors in the shipping and offshore industries.

  • News

    2018

    Bareboat registration in and out of Norwegian Ship Registries

    On 5 December 2017 the Norwegian Ministry of Trade, Industry and Fisheries issued a consultation paper with proposed changes to the legislation for registrations of vessels in the Norwegian International Ship Registry (NIS) and the Norwegian Ordinary Ship Registry (NOR). The two Norwegian Ship Registries does not currently allow bareboat registration of vessels, but the proposal suggests to open up for such registration both into and out of NIS and NOR. The proposal is intended to meet the practical needs of the maritime industry and make the rules for vessel registration in Norway more flexible and internationally competitive.

  • Shipping Offshore

    2018

    Read our Shipping Offshore Update June 2018

  • Shipping Offshore

    2018

    This is how Nina is sailing to the top in shipping

    Nina M. Hanevold-Sandvik(35) originally wanted to follow in her father's footsteps and become a diplomat. But after studying admiralty during studies abroad, she chose a career in maritime law instead. At Wikborg Rein she works in the cross-section between shipping and law – two traditionally male-dominated industries, and last year she was listed as one of "10 Women to Watch" by YoungShip. In this article, Nina shares her best tips on how to succeed.

  • Shipping Offshore

    2018

    BAREBOAT CHARTERS – charterer’s maintenance and redelivery obligations

    Difficult market conditions motivate cost savings wherever possible and this includes expenditure relating to the general maintenance of vessels. There has been an increase in disputes concerning the condition of vessels at the time of redelivery under a bareboat charter. Questions arise as to what is the charterers’ duty of maintenance under a bareboat charter and how can the parties best position themselves to avoid disputes?

  • Shipping Offshore

    2018

    Read our Shipping Offshore Update December 2017

  • Shipping Offshore, Skatterett

    2018

    ESA godkjenner den justert rederiskatteordning

    ESA har nå godkjent regjeringens forslag til rederiskatteordning for de neste 10 årene, regnet fra 1. januar 2018. De faktiske lovendringene vil Finansdepartementet foreslå i løpet av våren 2018.

  • Shipping Offshore

    2018

    Who bears the risk of concurrent delay?

    A recent decision of the English Court has endorsed a decision by parties to “contract out” of responsibility for concurrent delay. This decision is important because, where parties agree to “contract out” of this responsibility, contractors may not be able to rely on the prevention principle as grounds for obtaining an extension of time for delay in construction contracts.

  • Shipping Offshore

    2018

    An overview of the health, safety and environmental regime in Nigeria’s offshore oil and gas sector

    As a result of tightening up of the health, safety and environment (HSE) standards applicable to Nigeria’s offshore oil and gas sector, operating companies embarking on new projects in Nigerian waters need to carefully assess the risk and financial burden of these new requirements before committing themselves or their assets to these projects.

  • Shipping Offshore

    2018

    Third party funding of disputes

    Disputes are expensive particularly when involve large construction projects where there have been changes to the scope of work and cost overruns. Contractors face a difficult choice when trying to close the final account of either negotiating a resolution on any terms available or funding litigation which they cannot afford.

  • Shipping Offshore

    2018

    Autonomous vessels and the digital future

    With reports that the first fully automated cargo ship will be launched in 2018 and, after a period of manned operation, will begin operating fully autonomously by 2020, the unmanned future for vessels appears to be just over the horizon. The success of such a technological leap will depend on public perception being able to adapt and accept unmanned vessels. It will also require applicable laws and regulations to be rewritten.

  • Shipping Offshore

    2018

    Management of foreign owned ships in the NIS

    In some transactions a non-Norwegian company may wish to register its ship in the Norwegian International Ship Register (“NIS”). This can only be done if the ship is managed by a shipping company who has its head office in Norway. This requirement has a bearing on the contractual structures and financing schemes that can be put in place and also raises issues concerning enforcement.

  • Shipping Offshore

    2018

    CARGO CONSIDERATIONS - owners’ lien on cargo

    In another cargo-related development, the English High Court has confirmed when it will order the sale of liened cargo which is the subject of arbitration proceedings.

  • Shipping Offshore

    2018

    “Export financing” for non-export shipbuilding

    In its recent National Budget Proposal for 2018, the Government has proposed a NOK 10 billion state loan and guarantee program for the construction of vessels at Norwegian shipyards intended for use in Norway.

  • Shipping Offshore

    2018

    A choice with consequences – progressive title transfer versus refund guarantees

    Irrespective of how the construction of a vessel is financed, the yard and its financiers will require that the buyer prepays a percentage of the contract price prior to delivery. This prepayment may be lost to the buyer if proper security for that prepayment is not put in place. Provision of refund guarantees is the most common way this is achieved, but progressive title transfer may in some cases be an alternative method for securing the buyer’s position.

  • Shipping Offshore

    2018

    Update on Independent Guarantees under Chinese law

    In China, independent guarantees are widely used. However, until recently there has been little or no guidance under Chinese law as to how these guarantees are to be interpreted.

  • Shipping Offshore

    2018

    Jurisdiction clauses and choice of law in direct actions

    In significant decisions by the European Court of Justice (ECJ C-368/16) and the Danish Supreme Court (dated 9 October 2017) in a direct action brought in Denmark against a marine liability insurer, the validity of jurisdiction clauses and choice of law in such actions has been considered.

  • Shipping Offshore

    2018

    The New Flamenco – the Supreme Court dances in a different direction

    In the Court of Appeal ([2016] 1 LLR 383), time-charterers of the New Flamenco successfully overturned the High Court judgment against them, reinstating the arbitration award in their favour. The question was whether charterers liability for loss of profit should be extinguished by the profit that owners were able to make in selling the vessel earlier than would have been the case because of charterers’ repudiation.

  • Shipping Offshore

    2017

    Innovation within marine renewables

    Marine renewables is still a relatively young industry and provides a setting where innovative thinking and entrepreneurship can and does flourish.

  • Shipping Offshore

    2017

    BIMCO windtime

    The installation and maintenance of offshore wind farms require personnel and equipment which has to be transported to and from offshore sites. Specialised vessels, typically small monohulls or catamaran vessels that carry up to 12 passengers, offer such ­services.

  • Shipping Offshore

    2017

    FIDIC – the potential pitfalls moving from onshore to offshore

    There is no standard contract in use in offshore construction projects.

  • Shipping Offshore

    2017

    Contracting in the marine renewables industry

    Contracts within the marine renewables industry often offer interesting opportunities for owners of offshore and installation vessels traditionally operating within the offshore oil and gas space.

  • Shipping Offshore

    2017

    NORWAY: Future hub for funding of green projects?

    Norwegian financial institutions, investment banks and governmental funding institutions have played a ­significant role in the growth of the shipping and offshore industry, developing a tradition of close partnerships with Norwegian industrial entrepreneurs.

  • Shipping Offshore

    2017

    China: Opportunities in an emerging wind jurisdiction

    China’s demand for electricity­ continues to grow voraciously and whilst China’s energy supply continues­ to be dominated by coal fired power ­stations, more recently the Chinese ­government has shown a stronger commitment towards using renewable sources of energy.

  • Shipping Offshore

    2017

    Policy framework for the offshore wind industry

    The policy framework for the offshore wind industry has to a large extent been linked to available government support schemes. The industry is however evolving quickly and ­growing larger by the day and the level of subsidies is dropping. A current trend seen in all major markets is an ongoing shift from feed-in-tariff and certificate based systems, to more competitive auctions often involving Contracts for Difference (CFDs). The main reason for this shift is cost reductions made possible due to factors such as industry maturity, rapid technology advancement, economies of scale and political cycle.

  • Shipping Offshore

    2017

    Read our Marine Renewables articles

  • Shipping Offshore

    2018

    Commercial Arbitration in Africa

    Historically, most commercial arbitrations involving African parties have been resolved by non-African tribunals in places far from the African continent. As commercial disputes involving African parties have become more frequent, a new generation of arbitration institutes may result in an increase of arbitrations in Africa.

  • Shipping Offshore

    2018

    New realities for LNG carrier time charters

    In keeping pace with the changing sentiment and nature of the LNG sector, the traditional long term LNG time charter market is evolving and charter periods are becoming shorter. This trend has a number of commercial, financial and legal implications which we consider in this article.

  • Shipping Offshore

    2018

    Risks of deliberately delaying discharge

    A recent Commercial Court decision in Transgrain Shipping (Singapore) Pte Ltd -v- Yangtze Navigation (Hong Kong) Co Ltd [2016] EWHC 3132 (Comm), has held that a charterer is 100% responsible under the Inter-Club Agreement for damage to cargo arising from an order to the vessel to delay discharge until the receivers were able to pay for the cargo.

  • Shipping Offshore

    2018

    Getting ready for the recovery

    It has been a brutal few years in the shipping and offshore markets with over-capacity, declining demand and the dramatic fall in the oil price, all contributing to historically low charter rates and plummeting asset values. It is no wonder that owners and operators in these markets have adopted defensive strategies in recent years.

  • Shipping Offshore

    2018

    Dismantling of offshore units

    The number of offshore drilling and production units due to retire has grown substantially as a result of the reduction in drilling activity and the challenge of dismantling offshore units has become increasingly relevant for owners and operators. Cost, liability, selection of a recycling or scrapping yard, as well as corporate social responsibility, are just some of the considerations an owner needs to bear in mind when considering scrapping offshore units.

  • Shipping Offshore

    2018

    Wreck removal in China

    When a ship has reached the end of its life, the owners are inevitably faced with the decision of how to dispose of it in a manner that is both commercially viable and environmentally sustainable. The controversial practice of beaching vessels in low cost countries has spurred initiatives to tighten regulations on the recycling of ships. In the following pages we look at the current legal framework as well as what is to come.

  • Shipping Offshore

    2018

    Recycling of ships – what is the legal status?

    When a ship has reached the end of its life, the owners are inevitably faced with the decision of how to dispose of it in a manner that is both commercially viable and environmentally sustainable. The controversial practice of beaching vessels in low cost countries has spurred initiatives to tighten regulations on the recycling of ships. In the following pages we look at the current legal framework as well as what is to come.

  • Shipping Offshore

    2018

    “Server” – landmark judgment of the Supreme Court on wreck removal

    The Norwegian Supreme Court has in a recent judgment in the “Server” case clarified a number of unsettled issues that will have an impact on other wreck removal cases, including whether the owners can use their right to limit liability as a defence against a wreck removal order. Wikborg Rein acts for the vessel’s owners, managers and P&I insurers.

  • Shipping Offshore

    2018

    Read our Shipping Offshore Update Nor-Shipping May 2017

  • Shipping Offshore

    2018

    Read our Shipping Offshore Update Nor-Shipping December 2017

  • Shipping Offshore

    2016

    When charterers fail to pay hire: owners’ dilemma finally resolved, but still be careful!

    The downturn in the shipping and offshore sector has spurred a significant number of financial workout and insolvency proceedings over the last years. Wikborg Rein is involved in a significant number of the on-going restructurings within the OSV segment in Norway and also several international companies in the UK, US, Brazil, China and Mexico. The international nature of the shipping and offshore industry may complicate the financial workout when a company goes into distress, however, the global presence of a company may also present opportunities as the rules of statutory debt reorganisations vary.

  • Shipping Offshore

    2016

    Singapore Shipping and Offshore – Restructuring and Reflection

    The downturn in the shipping and offshore sector has spurred a significant number of financial workout and insolvency proceedings over the last years. Wikborg Rein is involved in a significant number of the on-going restructurings within the OSV segment in Norway and also several international companies in the UK, US, Brazil, China and Mexico. The international nature of the shipping and offshore industry may complicate the financial workout when a company goes into distress, however, the global presence of a company may also present opportunities as the rules of statutory debt reorganisations vary.

  • Shipping Offshore

    2016

    Recognition of foreign insolvency proceedings in Norway

    The downturn in the shipping and offshore sector has spurred a significant number of financial workout and insolvency proceedings over the last years. Wikborg Rein is involved in a significant number of the on-going restructurings within the OSV segment in Norway and also several international companies in the UK, US, Brazil, China and Mexico. The international nature of the shipping and offshore industry may complicate the financial workout when a company goes into distress, however, the global presence of a company may also present opportunities as the rules of statutory debt reorganisations vary.

  • Shipping Offshore

    2016

    Forum shopping when restructuring

    The downturn in the shipping and offshore sector has spurred a significant number of financial workout and insolvency proceedings over the last years. Wikborg Rein is involved in a significant number of the on-going restructurings within the OSV segment in Norway and also several international companies in the UK, US, Brazil, China and Mexico. The international nature of the shipping and offshore industry may complicate the financial workout when a company goes into distress, however, the global presence of a company may also present opportunities as the rules of statutory debt reorganisations vary.

  • Shipping Offshore

    2016

    Norway considers ratification of the Nairobi Wreck Removal Convention

    Claims against or from third parties to an agreement containing an arbitration clause often give rise to the question of whether such third parties are bound by, or whether they can invoke, the arbitration clause.

  • Shipping Offshore

    2016

    Arbitration clauses and third parties

    Claims against or from third parties to an agreement containing an arbitration clause often give rise to the question of whether such third parties are bound by, or whether they can invoke, the arbitration clause.

  • Shipping Offshore

    2016

    How not to start an arbitration

    Two recent London decisions have highlighted problems that can be encountered in starting an arbitration.

  • Shipping Offshore

    2016

    In the spotlight – public investigations in the Norwegian petroleum industry

    The continued market downturn has led to a concern that cost cutting by the offshore industry may lead to a corresponding decline in safety standards. In response to this concern, the Norwegian Petroleum Safety Agency (the “PSA”) have announced that they will increase their audit and investigation activities to ensure that the very high standards of safety expected of companies operating in the Norwegian sector of the North Sea will continue to be adhered to.

  • Shipping Offshore

    2018

    Mediating complex disputes

    Resolving disputes through litigation and arbitration comes at a high cost. Written submissions and preparations, sometimes over several years, lengthy hearings, expert witnesses and arbitrators’ fees, are just a few examples of the many contributors increasing the final bill. And in the end, many complex disputes will end up without any party being awarded costs – if the relevant jurisdiction has limited scope to make such an order. There is however an alternative with increasing popularity; mediation. How do you get the most out of mediation in a complex dispute?

  • Shipping Offshore

    2016

    Shipping Offshore seminar 2018

    Welcome to the annual Shipping Offshore Seminar in Oslo 20 September.

  • Shipping Offshore

    2016

    International arbitration rules – differences matter

    Commercial agreements require careful consideration of the proposed treatment of disputes before they arise. Both the forum for dispute resolution and the rules to be applied should be agreed as part of the contractual negotiation.

  • Shipping Offshore

    2016

    Laying up the lay up agreement

    The first reported London arbitration decision in 2016 raises a number of interesting points in connection with lay up agreements and how much can be claimed for continuing to provide services after the original contract has been terminated.

  • Shipping Offshore

    2016

    THE NEW FLAMENCO – keeping in step with damages and mitigation

    The Court of Appeal’s decision in The New Flamenco acknowledges the difficulties of laying down general principles of law in connection with an innocent party’s obligation to mitigate its loss following a repudiatory breach of contract. The case arose in the context of assessing damages for early redelivery where there was no available market at the time of the breach against which to measure the loss.

  • Shipping Offshore

    2016

    A penalty shoot out

    One of the significant differences between civil and common law jurisdictions is that whereas the former generally see no objection to fixed sums being paid in the event of a breach that may not reflect a loss that is incurred, common law jurisdictions will strike down such clauses where they amount to a penalty rather an a genuine pre-estimate of a loss likely to flow from a breach.

  • Shipping Offshore

    2016

    NYPE 2015 – a major revision

    On 15 October 2015, the Association of Ship Brokers and Agents, Baltic and International Maritime Council (“BIMCO”) and the Singapore Maritime Foundation jointly published a revised New York Produce Exchange (“NYPE”) 2015 form.

  • Shipping Offshore

    2016

    SUPERMAN – a new BIMCO contract is born

    January 2016 saw the publication of the new SUPERMAN agreement published by BIMCO which governs the contractual relationship between third party ship managers and shipowners for the provision of technical supervisory services during construction, repair and conversion projects.

  • Shipping Offshore

    2016

    All change in the London insurance market

    The insurance landscape in England is about to change fundamentally with the biggest shake-up for over a century. On 12 August 2016 the Insurance Act 2015 will come into force and will amend the Marine Insurance Act 1906 in areas such as warranties and disclosure. Furthermore, the Enterprise Act 2016 will come into force on 4 May 2017, and will, among other things, impose an obligation on insurers to pay claims promptly.

  • Shipping Offshore

    2016

    NORWAY – BRAZIL: maritime transport cooperation

    The bilateral cooperation between Norway and Brazil is extensive within several industry sectors as well as in connection with matters relating to the environment and education. New areas of cooperation are constantly being developed and the most recent step forward is the signing of a memorandum of understanding on maritime transport.

  • Shipping Offshore

    2016

    IRANIAN SANCTIONS – a six month review

    On 2 June 2016 the governments of the US, EU, UK, France and Germany issued a joint statement confirming that there are now extensive economic opportunities for companies and financial institutions to do business in Iran. The EU is actively exploring areas of cooperation with Iran, including the use of export credits to facilitate trade, project financing and investment.

  • Shipping Offshore

    2016

    Some relief for offshore contractors

    There was some relief for offshore contractors when the Court of Appeal recently handed down its judgment on the construction of a consequential loss exclusion clause in a drilling contract on an amended LOGIC form between Transocean Drilling UK Limited and Providence Resources Plc.¹

  • Shipping Offshore

    2016

    OW Bunkers – the final say

    On 11 May 2016, the Supreme Court handed down judgment in the long running OW Bunkers case. The decision is unlikely to be welcomed by owners who now face the prospect of having to pay twice for bunkers: once to their immediate supplier, who, as in the OW Bunkers case may be insolvent, and again to the physical supplier of the bunkers.

  • Shipping Offshore

    2016

    Read our Shipping Offshore Update June 2016

  • Shipping Offshore

    2016

    The ballast water convention

    Having now achieved the required number of signatories, the new International Maritime Organisation (IMO) International Convention for the Control and Management of Ships’ Ballast Water and Sediments (the “Convention”) originally adopted in 2004 will enter into force on 8 September 2017. The Convention is expected to have a significant impact on ships engaged in international trade by requiring them to manage their ballast water and sediments to certain minimum standards, and eventually to install onboard ballast water management systems.

  • Shipping Offshore

    2015

    New opportunities in Iran following sanctions relief

    Following the Joint Comprehensive Plan of Action (JCPOA) signed in Vienna on 14 July, Iran might be able to resume supplying oil to western markets. This will add even more pressure to an already depressed oil price, but perhaps also open up new opportunities.

  • Shipping Offshore

    2015

    The OW Bunker bankruptcy – bunker supply contract is not a contract for the sale of goods

    The shipowners’ bid to avoid the risk of having to pay twice for bunkers supplied has been thwarted by the English High Court which held that a contract for the supply of bunkers is not a sale contract falling within the English Sale of Goods Act. (PST Energy 7 Shipping LLC v OW Bunker Malta Ltd [2015] (“Res Cogitans”) EWHC 2022 (Comm))

  • Shipping Offshore

    2015

    The Hague Convention on Choice of Court Agreements 2005

    A global enforcement regime for judgments handed down under exclusive choice of court agreements

  • Shipping Offshore

    2015

    WELL BOAT CHARTERPARTIES – liability for cargo damage

    As the Norwegian fish farming industry continues to grow, so does the demand for well boats. These sophisticated vessels transport fish, but also undertake complex tasks such as delousing and sorting fish. Damage to or loss of the fish handled by these vessels can result in substantial losses. Therefore, owners and charterers of well boats are advised to regulate the risks associated with such services in their charterparties.

  • Shipping Offshore

    2015

    LIENING CARGO – which lien clause applies to the bill of lading?

    In a dry bulk market where some charterers are not paying freight or hire, their counterparties are often left to consider if they can lien the cargo on board the chartered vessel to obtain payment voluntarily, or by court sale if necessary.

  • Shipping Offshore

    2015

    NTK MOD 2015 – what is new and will it be used?

    After three years of negotiations, the Norwegian Oil and Gas Association and the Federation of Norwegian Industries have agreed on a new revision to the Norwegian Total Contract for modification work. A primary objective has been to produce a standard which will be used more widely by the industry.

  • Shipping Offshore

    2015

    Inconsistent contractual provisions and erroneous industry standards – WHO IS TO BLAME?

    A recent English case MT Højgaard A/S v E.ON Climate and Renewables UK ([2015] EWCA Civ 407) has highlighted the significant risk contractors can be exposed to when taking on complex offshore construction projects under contracts containing inconsistent provisions.

  • Shipping Offshore

    2015

    FORCE MAJEURE – a comparison of the English and the Norwegian approach

    Force majeure refers to exceptional events which prevent or hinder the performance of an obligation. Generally, these are events beyond the parties’ control, which could not have been foreseen at the time the contract was entered into, and which could not have been prevented by the affected party. In this article we will look at force majeure clauses and the legal position under English and Norwegian law.

  • Shipping Offshore

    2015

    English Commercial Court remains a strong choice despite introduction of new fees

    The cost of commencing proceedings in the English Commercial Court has recently increased. Despite of this, there are still real advantages of having the Commercial Court as forum for commercial disputes.

  • Shipping Offshore

    2015

    Read our Shipping Offshore Update November 2015