Law Governing News

The law governing marine insurance in the United States has long been a source of considerable confusion. And if there was once a clear set of principles applicable in such cases, the Supreme Court long ago muddied the waters with their infamous ruling in Wilburn Boat Co. v. Fireman’s Fund Ins. Co., 348 U.S. 310 (1955). That case, involving a fire on a houseboat on an inland man-made lake on the Texas-Oklahoma border, established the “litmus test” for when maritime law should…

The U.S. is going to need a fleet of Jones Act-compliant vessels to support its budding offshore wind industry. The good news is that several of these vessels are currently operating or on order. Even better, there are plenty more in the pipeline.In 2016, Rhode Island-based Atlantic Wind Transfers (AWT) put into service the U.S.’ first-ever vessel purpose-built for offshore wind services. The 21-meter crew transfer vessel (CTV) Atlantic Pioneer was constructed by Blount Boats to serve America’s first commercial offshore wind project…

The U.S. Senate on Friday passed the National Defense Authorization Act (NDAA) for fiscal year 2021, a massive $741 billion defense bill setting policy for the Pentagon. Importantly for the U.S. offshore and maritime industries, the bill includes an amendment ensuring full enforcement of the Jones Act and other federal laws in offshore wind development.The legislation passed the Senate by a vote of 84-13 and now heads to President Donald Trump’s desk for his signature following overwhelming 335-78 veto-proof House passage on December 8.

The U.S House of Representatives passed the Clean Economy Jobs and Innovation Act (H.R. 4447) aiming to reform U.S. energy policy and authorize significant investment in the transition to greater use of low-carbon energy.The legislation, which addresses a wide range of energy topics and initiatives, includes an amendment by Congressman John Garamendi (D-Calif.) which would enforce Jones Act requirements for all offshore wind development, construction, production and servicing.The amendment clarifies that the Outer Continental Shelf Lands Act…

Traditionally, when a ship reached the end of its economic life, the owner sold it, often to a cash buyer, for scrapping with little consideration of the next step. Many ships ended up on a beach in south Asia (India, Pakistan, or Bangladesh) where they were cut apart and the metal was sold for scrap. The working conditions were sometimes dangerous and hazardous to the workers’ health. In addition, little was sometimes done to protect the environment. For many ship owners these days…

The Port of New Bedford says it has released its 6-pronged plan to revive its historic groundfishery and modernize the port. According to the New Bedford Harbor Development Commission’s (HDC) "Groundfish Port Recovery and Revitalization Plan for the Port of New Bedford and Fairhaven," the region’s groundfish fishery stands to improve if fisheries scientists and managers apply similar video survey technology as that which helped revive the region’s now-successful scallop fishery. Along with soliciting grant funds to develop video surveys for groundfish, as the nation’s number one fishing port, the city has released its recommendations for modifications to the Magnuson-Stevens Act (MSA), the Federal law governing all domestic fisheries management.

Safe Bulkers, Inc., an international provider of marine drybulk transportation services, announced today its unaudited financial results for the three and twelve month period ended December 31, 2012. The Company’s Board of Directors also declared a quarterly dividend of $0.05 per share for the fourth quarter of 2012. Net revenue for the fourth quarter of 2012 increased by 8% to $46.4 million from $42.9 million, during the same period in 2011. Net income for the fourth quarter of 2012 increased by 36% to $32.2 million from $23.6 million, during the same period in 2011. Adjusted net income1 for the fourth quarter of 2012 decreased by 15% to $20.5 million from $24.0 million, during the same period in 2011.

Safe Bulkers, Inc. (NYSE: SB), an international provider of marine drybulk transportation services, announced its unaudited financial results for the three- and nine- month periods ended September 30, 2010. The company also declared a quarterly dividend of $0.15 per share for the third quarter of 2010. •    Net revenue for the third quarter of 2010 increased by 11% to $40.8 million from $36.9 million during the same period in 2009. •    Net income for the third quarter of 2010 decreased by 1% to $22.0 million from $22.2 million during the same period in 2009. •    EBITDA1 for the third quarter of 2010 increased by 8% to $28.6 million from $26.5 million during the same period in 2009.

“Currently 15 foreign-flagged vessels are involved in the largest response to an oil spill in U.S. history. No Jones Act waivers have been granted because none of these vessels have required such a waiver to conduct their operations as part of the response in the Gulf of Mexico. “While we have not seen any need to waive the Jones Act as part of this historic response, we continue to prepare for all possible scenarios, and that's why Admiral Allen provided guidance to process necessary waivers as quickly as possible to allow vital spill response activities being undertaken by foreign-flagged vessels to continue without delay should that be necessary.

Tara Leiter, an attorney at Blank Rome LLP, collaborated with John A.C. Cartner (United States Coast Guard shipmaster and lawyer) and Richard P. Fiske (retired U.S. naval captain and attorney with John Cartner at Cartner & Fiske LLC) to author the recently released legal treatise The International Law of the Shipmaster. Released in the IMO’s declared Year of the Seafarer, the book is designed to identify and explain the complexity of the legal position faced daily by today’s shipmasters…

Safe Bulkers, Inc. (NYSE: SB), an international provider of marine drybulk transportation services, announced its unaudited financial results for the three- and nine-month periods ended September 30, 2009. Net revenue for the third quarter of 2009 decreased by 31% to $36.9 million from $53.4 million during the same period in 2008. The company operated 13.2 vessels on average during the third quarter of 2009, earning a Time Charter Equivalent ("TCE")(1) rate of $30,113, compared to 11 vessels and a TCE rate of $52,724 during the third quarter of 2008. The decrease in the TCE rate resulted mainly from lower period time charter rates contracted during the second quarter of 2009 or during previous periods.

Thomas M. DiBiagio, U.S. Attorney for Maryland and Thomas L. Sansonetti, Assistant Attorney General for the Justice Department Environment and Natural Resources Division, today announced the sentencing of a Danish shipping company, D/S Progress, to pay a $250,000 criminal fine for conspiring to conceal a hazardous leak in the hull of an oil tanker that visited Baltimore, for failing to report emergency discharges to save the ship and for presenting false log books to the U.S. Coast Guard in order to disguise the leak, emergency discharges and other deliberate acts of dumping oil. D/S Progress, a ship management company based in Copenhagen, Denmark, was responsible for the "Freja Jutlandic," an oil tanker which first arrived in Baltimore on March 22, 2000.

Maritime business commerce has changed rapidly over the last decade. In order to stay competitive, companies are increasingly inventing more efficient ways to conduct business. The advent of the Internet has created new tools to negotiate and complete business transactions for all major industries. Electronic commerce ("e-commerce") in particular, is revolutionizing the way industries transact all business. The buzzwords of today's marketplace are speed, accuracy and efficiency. Businesses are turning to the Internet as an outlet to increase sales and market share. A successful transition from paper to electronic business, however, requires a well-established electronic and legal infrastructure in order to succeed.

The U.S. Supreme Court let stand a ruling that Spain owns the remains of two of its warships that sank off the Virginia coast hundreds of years ago, handing a setback to a treasure-hunting, maritime salvage company. Virginia asserted ownership of the shipwrecks of the Spanish Royal Naval vessels -- La Galga, which sank in 1750, and Juno, which went down in 1802. Virginia issued Sea Hunt, a salvage company, permits to recover artifacts from the wrecks. But Spain then filed a claim asserting ownership over the shipwrecks, citing a 1902 treaty between the United States and Spain protecting shipwrecks and military gravesites. Under the treaty, vessels may be abandoned only by express acts. A U.S. appeals court ruled last year that the two ships belonged to Spain.

On November 9, 2004, The Supreme Court of the United States decided Norfolk Southern Railway Co. v. James N. Kirby, Pty Ltd., docket No. 02¬1028 (Nov. 9, 2004). The Court reversed the Eleventh Circuit and held that Himalaya Clauses in both an NVOCC's bill of lading, and in a VOCC's bill of lading extended the bill of lading COGSA package limitation or other protection to the participating land carrier, the Norfolk Southern Railway Co., which was hired by an affiliate of the VOCC. The opinion also upholds the limitations in the VOCC's bill of lading even though there was no strict privy of contract between Kirby, the cargo interest, and the VOCC. The case involved a shipment of cargo from Australia to Athens, Alabama by way of Huntsville, Alabama.

Following is a more expanded analysis of the recent U.S. Supreme Court decision than the short summary provided yesterday. This analysis was prepared by Chester Hooper or Holland & Knight. On November 9, 2004, The Supreme Court of the United States decided Norfolk Southern Railway Co. v. James N. Kirby, Pty Ltd., docket No. 02­1028 (Nov. 9, 2004). The Court reversed the Eleventh Circuit and held that Himalaya Clauses in both an NVOCC's bill of lading, and in a VOCC's bill of lading extended the bill of lading COGSA package limitation or other protection to the participating land carrier, the Norfolk Southern Railway Co., which was hired by an affiliate of the VOCC.