Since its inception, ICS has participated in the development of international treaties to provide uniform regulation of shipowners’ legal liabilities to cargo owners, passengers, pollution damage claimants, and others, and to regulate other matters such as salvage, security, and some financial aspects of shipping.

This important work was traditionally undertaken by the international maritime lawyers’ association, the Comite Maritime International (CMI). When the Legal Committee of the IMO was formed some 50 years’ ago in the aftermath of the Torrey Canyon tanker disaster and the resulting oil pollution, it took on the work of developing treaties to regulate international shipping. The Torrey Canyon incident revealed in particular a need for an international regime for liability and compensation for the consequences of oil pollution from ships. The ICS Maritime Law Committee was established to provide a forum for the development of ICS positions to assist the IMO and other international regulators’ member States in their deliberations on this and future matters and deliver workable and sustainable solutions that maximise the amount of compensation available to claimants.

While issues concerning shipowners’ liabilities under IMO and other international conventions are central to the remit of this Committee, it also considers other legal issues that could affect the international shipping industry and provides advice on the legal aspects of matters on the agenda of other ICS Committees.

Why international uniformity of law is crucial

Shipping is a hugely capital-intensive industry with high overheads and low margins. International uniformity of law is crucial to provide shipowners with certainty as to the extent of their potential liabilities and manage the risks.

It has long been recognised that the risks of trading by sea are enormous and cannot be borne by the shipowner alone. International liability regimes for loss or damage to cargo limit the shipowner’s liability to a certain amount and allocate the risks between the shipowner and the cargo interests in a balanced way to ensure that insurance can be obtained by the commercial parties at reasonable cost.

A comprehensive international liability regime for the major third party liabilities arising from the operation of ships has been developed by IMO. The regime is designed to ensure swift and effective compensation through a strict liability of the shipowner regardless of fault, compulsory insurance, and claimants may bring their claims directly against the insurer. These measures are possible because the liability of the shipowner is limited to an amount that is certain and can be insured at reasonable cost. The regime ensures that high amounts of compensation are available for third party claims arising from shipping accidents to the benefit of all stakeholders, including governments and society at large.

Connections

The Maritime Law Committee reports directly to the ICS Board.

It is closely engaged with the work of the IMO Legal Committee and the International Oil Pollution Compensation Funds, considering key issues on the agenda of these bodies and formulating ICS positions.

The Committee also directs ICS representation when legal and liability matters affecting international shipping are discussed and / or regulations are proposed at regional (e.g EU) and national levels, and at other UN bodies such as UNCITRAL and UN DOALOS .

The Committee has a strong liaison relationship with the representatives of shipowners’ liability insurers, the International Group of P&I Clubs. It also works closely with other bodies concerned with the development and unification of international maritime law such as the CMI.

Key issues

Shipowners’ liabilities to third parties resulting from maritime accidents are central to the remit of this Committee.

Key concerns in this regard are to promote the harmonisation of international maritime law, to prevent any conflict of regional and national regulations with the international liability regime established by the IMO, and to defend the principle of limitation of liability. Past interventions in this respect include work on the EU Environmental Liability Directive, Environmental Crime Directive and Ship Source Pollution Directive, discussions at the IMO Legal Committee and the IOPC Funds regarding proposed changes to the international liability regime, work at the IMO Legal Committee on a Unified Interpretation of the Shipowner’s right to limit liability, and work to promote the ratification of and smooth entry into force of the HNS Convention. The Committee also acts to safeguard general principles of international maritime law, especially those outlined in the UN Convention of the Law of the Sea.

The Committee considers other issues where the legal rights and obligations of shipowners may be affected, as for instance ship arrest and maritime liens and mortgages issues, salvage issues, the impact of various sanctions regimes on international shipping, the smuggling of illegal narcotics by sea, or the recent discussions at UNCITRAL to develop a new instrument on negotiable cargo documents.

The Committee also provides advice on the legal and liability aspects of many of the issues on the agenda of the Marine and other technical committees. In recent years such issues have included, among others: Migrant Rescue at Sea, Piracy in the Gulf of Aden and Gulf of Guinea, Marine Autonomous Surface Ships, Ship Recycling and regulations concerning Exhaust Gas Cleaning Systems.

Current most pressing issues

• Coastal and flag State jurisdiction: balancing interests in order to protect general principles of international maritime law as dictated by UNCLOS and other sources
• Advocating for the fair treatment of seafarers involved in maritime accidents or accused of crimes at sea. Discouraging the unwarranted criminalisation of seafarers.
• Alternative fuels: discussions at the IMO as to the suitability of the current liability and compensation regimes in light of the use of new alternative fuels.
• Promotion of the Lloyd’s Open Form: a standard salvage agreement that allows salvage services to be engaged quickly in the event of an emergency.

You would like to learn more?
Please get in touch with the Secretary, Kiran Khosla.