Author: nlnnpc-mashinaki

To address increasing congestion at the southern entrance of the Istanbul Strait, the Turkish Directorate General of Maritime Affairs has implemented new measures to enhance navigation safety and operational efficiency in the Sea of Marmara.

Under these directives, vessels drifting in the Sea of Marmara must now proceed to designated anchorage areas. Ships will primarily be directed to Ambarlı Anchorage Areas 2, 3, and 4, with Yalova Anchorage Areas 1 and 2 available as alternatives if required. These measures aim to reduce prolonged drifting, improve vessel and cargo safety, and support environmental protection efforts.

The new arrangements are intended to optimize vessel movements and strengthen traffic management throughout the Istanbul Strait and the Sea of Marmara. Members are advised to adjust their operational procedures to comply with these updates.

Additional details on these measures (in Turkish) can be found on the Turkish Chamber of Shipping website, accessible here.

For further assistance, Members may contact the Claims team at claims@nnpc.nl.

Over the past year, NNPC has continued to assist members with legal disputes included recovery claims against Charterers such as for demurrage or losses. Even in cases where responsibility seems clear-cut, in a number of cases Charterers will be reluctant to settle amicably meaning that formal proceedings are needed to recover a claim.

Given that a majority of charter parties are governed by English law, Shipowners typically resort to arbitration in London to enforce their rights. However, English arbitration is notoriously time-consuming and costly, especially for claims of modest value. Engaging legal counsel to initiate proceedings and secure an enforceable award often entails significant expenses—costs that may not be fully recoverable, even with a successful outcome.

To address these hurdles, Shipowners should consider adopting the LMAA Small Claims Procedure (SCP) within their charter parties. Designed for claims below a specified threshold (typically USD 50,000 but this may be adjusted), the SCP provides a streamlined, cost-effective arbitration process. Notably, it eliminates the need for formal legal representation, substantially lowering expenses, and delivers awards more quickly than traditional arbitration.

NNPC has extensive experience managing SCP cases directly on behalf of its members, finding it particularly effective for straightforward disputes. The procedure offers a pragmatic and affordable avenue for resolving such claims, balancing efficiency with fairness.

Despite these benefits, we have noted that charter parties do not always include the LMAA Small Claims Procedure as standard. This omission forces shipowners into full arbitration for even minor claims, inflating costs and delaying recovery.

We recommend that members confirm that where a contract is subject to English law, the LMAA Small Claims Procedure be incorporated into their charter parties wherever feasible. Doing so ensures access to an economical and efficient dispute resolution tool, enabling Shipowners to pursue smaller claims proportionally and effectively.

For further information you can reach out to the NNPC claims team at claims@nnpc.nl.

The International Group of P&I Clubs (IG) has announced a new approval process for electronic bills of lading (E-bills), set to take effect on 20 February 2025.

Under this revised system, E-bill providers will be deemed approved if they meet the following criteria:

• They operate under a legal framework that explicitly recognizes E-bills as equivalent to paper bills of lading.
• They demonstrate reliability and compliance through an independent audit, a regulatory declaration, or adherence to industry standards.

Implications for Shipowners: E-bills are gaining wider acceptance as key jurisdictions implement supportive legal frameworks. While this new approval process simplifies adoption, shipowners must remain vigilant in regions where E-bills are not yet fully recognized.

To ensure seamless transactions and P&I coverage, members should:

• Verify the governing law of the E-bill system before use.
• Confirm that the system meets reliability standards to prevent potential coverage issues.
• Ensure that E-bills are legally recognized at relevant ports of trade.

With these steps, shipowners can leverage the benefits of E-bills while mitigating operational and legal risks.

A list of approved E-bill systems is available on the International Group’s website.

For more information, please refer to the IG circular here or contact us at claims@nnpc.nl.

As of 2025, the regulations for transporting charcoal (UN 1361) in containers will be expanded. These changes are crucial to ensuring the safety of transport personnel, cargo, vessels, and the supply chain. In the past, charcoal shipments have caused severe fires on container ships, mainly due to improper handling, misdeclaration, and inadequate regulations.

The International Maritime Organization (IMO) has therefore amended the International Maritime Dangerous Goods (IMDG) Code. The World Shipping Council (WSC), in collaboration with the International Group of P&I Clubs and the TT Club, has published a concise guide outlining the updated regulations. You can access this guide here. The key changes are summarized as follows:

1. Declaration as Dangerous Goods
   All charcoal shipments must be classified as “Dangerous Goods”, accompanied by detailed documentation that fully complies with the new requirements. This obligation applies without exceptions.
2. Mandatory Controlled Weathering Process
   Charcoal must undergo a controlled weathering process after production or a specific post-pyrolysis treatment, unless otherwise approved by a competent authority. This requirement reduces the risk of self-heating and other hazards arising from incomplete or insufficient processing.
3. Temperature Limits and Packaging Rules
   At the time of packaging, the temperature of the charcoal must not exceed 40°C. Additionally, the transportation of unpackaged (bulk) charcoal in containers remains strictly prohibited.
4. New Stowage Regulations
   To improve air circulation and reduce the risk of self-heating there must be a minimum clearance of 30 cm between the cargo and the roof of the container. The maximum stacking height per package in the CTU must not exceed 1.5 meters and the maximum block size of packages must be 16 m³, with a minimum spacing of 15 cm between the blocks.

Compliance with these new regulations is essential not only for safety but also for preventing damage and loss during transport. Since in almost all cases the shipper is responsible for packaging and preparing the containers, it is crucial that the shipowner receives prior confirmation that these standards have been met. This includes the completion and submission of an IMDG declaration.

For any questions regarding this matter, please contact us at claims@nnpc.nl.

As of 23 December 2024, significant changes to the Maritime Labour Convention (MLC) have come into effect. These amendments aim to further strengthen the rights of seafarers and clarify the obligations of employers and flag states to ensure a safer, fairer, and more secure working environment. Below is an overview of the most important changes.

1. Recruitment and Placement: Seafarers will have access to an efficient and well-regulated recruitment and placement system to find employment on board ships. It will no longer be permitted to charge recruitment fees to seafarers. Additionally, seafarers must be compensated for financial losses incurred due to the failure of a recruitment and placement service or a shipowner’s non-compliance with obligations under the employment agreement. Furthermore, seafarers must now be informed, before or during the employment agreement, about their right to compensation for financial losses resulting from such failures.
2. Repatriation: A new provision requires member states to facilitate the immediate repatriation of seafarers. In the past, situations occurred where repatriation efforts were obstructed by local authorities refusing to allow seafarers to leave the ship due to national legislation requiring crew presence on board. This amendment highlights the role of port states, flag states, and labour-supplying states in ensuring prompt repatriation and safeguarding the rights of replacement crew members.
3. Accommodation and Recreational Facilities: Where feasible, shipowners must provide internet access on board their ships to promote mental well-being through social connectivity. Any associated costs must be reasonable. States are also required to ensure similar facilities for seafarers on ships in their ports and/or anchorages.
4. Food and Catering: Onboard ships, drinking water of good quality and balanced meals must be made available. The existing requirement to provide food consistent with the number of seafarers, the voyage duration, and religious requirements has been expanded. It is now explicitly stated that food must meet standards of quantity, nutritional value, quality, and variety and must be provided free of charge throughout the assignment period.
5. Health Protection, Safety, and Accident Prevention: Seafarers must be provided with personal protective equipment in appropriate sizes. This amendment has been introduced in part due to the increasing number of female seafarers. Additionally, member states must annually record and report seafarer deaths to the International Labour Organization. These statistics will be published in a global registry.

For questions or assistance regarding these changes, our members can contact us at claims@nnpc.nl.

On the 11th of October 2024, the Magna Carta of Filipino Seafarers, officially enacted as Republic Act No. 12021, came into force. The act introduces reforms aimed at strengthening the rights and welfare of Filipino seafarers but balances this with operational concerns of shipowners and manning agencies.

The Act applies to all the Filipino seafarers and cadets engaged or employed on board a vessel sailing in international waters, whatever the flag should be. Fishing vessels or ships of traditional build are excluded from the application scope of the new Act. The new legislation has already gained immense support from respected Unions like ITF and AMOSUP.

The Act reforms how disability grading and fitness to work are assessed. A mandatory system now requires the appointment of a third doctor—selected from a pool of accredited medical specialists—to resolve disputes between the assessments of company-designated physicians and seafarers’ personal doctors. The determination of this third doctor is final and binding on both the seafarer and the employer, ensuring fairness and consistency.

The Magna Carta amends the garnishment rule for the Filipino seafarers as well. In its former edition it allowed the awards in injury or disability claims to be paid out to seafarers or their families prior to appeal. This further complicated the procedure of returning the award should the decision in appeal not be in favor of the seafarer.

With the new Act in force, all the awards will be distinguished between five categories:

• a. Any salary or wage;
• b. Any statutory monetary and welfare benefits;
• c. Any undisputed amount, which is admitted by a party to be legally due to the other party;
• d. Any disputed amount determined to legally due the seafarer;
• e. Damages, including moral damages, exemplary damages, nominal damages; attorney’s fees, and other similar awards.

The Magna Carta stipulates that if there is pending appeal or judicial review in place, the amounts mentioned in (a), (b), (c) are to be paid immediately. The payment of items (d) and (e) should only be made if a sufficient bond for the full restitution of these amounts is presented.

Further changes include:

• Attorney Fees Cap: Legal fees are now capped at 10% of the awarded compensation, protecting seafarers from excessive costs. This measure also targets exploitative practices by “ambulance-chasing” lawyers who have historically sought inflated claims at the expense of seafarers’ earnings.
• Shipowners remain responsible, subject to exceptions in the case of dismissal or agreement, for repatriation costs, with clearly defined coverage, including basic pay and allowances and accommodation
• Employers or manning agents are required to determine the validity of claims (e.g., for unpaid wages, statutory benefits, disability, or death) within 15 days of filing. While this does not mandate automatic settlement, it enforces timely communication of findings to seafarers, enhancing transparency and efficiency in the claims process.
• Shipowners, crewing agencies and training institutions are obliged to develop policies on gender in order to promote equal opportunities for women in shipping.

This legislation marks a significant step in protecting Filipino seafarers while addressing industry concerns. For assistance or further inquiries regarding the Magna Carta of Filipino Seafarers, members are encouraged to contact the NNPC Underwriting Team at underwriting@nnpc.nl or Claims Team at claims@nnpc.nl.

The FuelEU Maritime Regulation is part of the EU’s “Fit for 55” package, which aims to reduce the EU’s net greenhouse gas emissions by 55% by 2030. It complements other EU initiatives aimed at cutting emissions, including the EU Emissions Trading System (ETS) and the Carbon Intensity Indicator (CII) ratings.

The regulation establishes “well-to-wake” greenhouse gas (GHG) emission intensity targets for the energy used on board ships, starting in 2025. These targets include a 2% reduction in 2025, gradually increasing towards a reduction of up to 80% by 2050. Unlike the EU ETS, which places responsibility on the shipowner, FuelEU Maritime designates the ship manager (the ISM company) as the responsible entity, regardless of whether the manager is the registered owner, bareboat charterer, or another party.

On 20 December 2024, BIMCO published a model clause for the BIMCO Shipman contract, designed to address the implications of the FuelEU Maritime regulation within the context of ship management. The clause ensures that shipowners and managers align their contractual responsibilities, including in relation to verification, compliance, and penalties. The full text of the clause is available on the BIMCO website.

We recommend that all shipowners and managers of vessels affected by FuelEU Maritime, effective from 2025, review their management contracts and consider incorporating the BIMCO model clause as appropriate.

For guidance on integrating the FuelEU Maritime model clause, we invite our members to contact the NNPC claims team at claims@nnpc.nl.

As the maritime industry prepares for the implementation of FuelEU Maritime regulations starting January 1, 2025, ensuring compliance has become a pressing priority for shipowners and charterers alike. To address these challenges, BIMCO has released the FuelEU Maritime Clause for Time Charter Parties 2024, designed to provide clarity and allocate responsibilities between owners and charterers in time charter parties.

The key components are summarized as follows:.

• Compliance Monitoring: Owners must ensure that the vessel maintains a monitoring plan recorded in the FuelEU Database and that GHG intensity is tracked and reported for verification by an independent verifier.
• Fuel Supply Compliance: Charterers have the option of ensuring compliance through the supply of specific fuels provided that these comply with FuelEU Maritime specifications. They must ensure that bunker delivery notes and electricity delivery notes meet regulatory standards.
• Payment of Surcharges: Charterers are liable to pay any surcharges related to negative Compliance Balances on a specified basis (monthly or per voyage) or as part of the final hire payment.
• Instructions on Banking/Pooling: Charterers can instruct owners to bank or pool Compliance Balances, however, they assume responsibility for any liabilities or costs arising from such instructions. In accordance with sub-clause (i) the default position is that Charterers may instruct owners how to bank or pool. We recommend that owners with existing banking or pooling arrangements, or owners who wish to ensure flexibility in their contract to make other arrangements consider whether amendments to the clause are necessary.

We recommend our Members to review their existing charter agreements and consider incorporating the BIMCO FuelEU Maritime Clause for Time Charter Parties 2024 into their contracts to ensure compliance with the new regulations. In light of the implications of the default provisions we recommend that owners carefully consider whether the standard wording is appropriate for their specific situation.

The full text of the clause is available on the BIMCO website, BIMCO FuelEU Maritime Clause for Time Charter Parties 2024.

For advice on incorporating the FuelEU Maritime Clause into charter parties or addressing specific compliance concerns, we invite our Members to contact the NNPC claims team at claims@nnpc.nl.

The Turkish Ministry of Transport has recently introduced significant amendments to the Regulation on Ports. These changes, which took effect on 17 November 2024, include stricter inspection protocols and revised requirements for vessels seeking port clearance.

Under the new rules, vessels are now subject to more detailed inspections by the relevant Harbour Master’s Office before obtaining clearance. Previously, the Harbour Master’s Office only checked for the presence of required documents. Now, the office will also verify the validity of these documents, such as the minimum safe manning certificate and seafarer competence certificates, to ensure compliance with their requirements.

The certificate of seaworthiness and cargo-related documents, including the stowage plan, will also be closely examined. Vessels found to be exceeding cargo limits or with non-compliant stowage plans will not be allowed to depart. In certain cases, a compliance report from an independent surveyor may be required. Additionally, the Harbour Master’s Office may inspect a vessel’s navigational and safety equipment, as well as its bunkers and provisions.

These amendments underscore the Turkish authorities’ commitment to strengthening the supervision of vessels operating in their waters. Shipowners and operators should exercise diligence in ensuring that all documentation is valid, up-to-date, and compliant with the new regulations.

For any questions or assistance regarding the implications of these new regulations, our members are encouraged to contact us at claims@nnpc.nl.