GCC closer to globally aligned maritime laws

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Nov 2009

At least of two of the six GCC countries are moving closer to internationally aligned maritime laws, a progression that could see the region catching up with the changes. A top official from Bahrain said they have presented the revised draft law to the General Organisation of Sea Ports (GOSP) board in September while the UAE now awaiting approval to the draft law it completed revising last year.
"Our current maritime law is a little bit outdated and GOSP decided it is really time for the revision of the code and come up with a new law," GOSP Chairman Shaikh Daij bin Salman bin Daij Al Khalifa told Emirates Business.
Bahraini maritime code was promulgated in 1982 and despite the various changes in the industry since then, it remained largely un-updated. "The draft law is ready but there is a process that it has to go through," he said. "It was presented to the board in full draft format in September. It has to go through the cabinet then the ministerial committee within the cabinet and once the committee finally approves it, it will go to chamber of deputies - the parliament. So we have no control over the time. The only control we have is to prepare the draft - which we have."
The new law will cover issues connected with international maritime conventions and protocols and operation of port facilities as well as define the role, responsibility and functions of GOSP.
The law will also establish jurisdiction to international conventions, which Bahrain is currently or will be in the future a signatory to.
The UAE's draft law meanwhile seeks to make the process of registering a ship under the UAE flag faster and easier but industry players and maritime lawyers have not been updated on the finality of the proposed law.
The UAE draft maritime law, among others, is set to revised the current ship registration fees, which have not changed since 1981 when the existing Federal Law No26 was enacted.
The current law also does not cover a number of fleet and maritime operations that have come into existence as a result of new international maritime conventions signed since 1981.
While currently only UAE nationals can have commercial ships registered under the UAE flag, the new law in addition is expected to relax this condition to extend this service to UAE residents and to make it less of an obstacle for foreign shipping interests. Under the current law, residents can only register their commercial ships through a joint venture with a UAE national, who should have not less than 51 per cent share in the enterprise.
Chris Mills, Partner, Dispute Resolution at Clyde said maritime laws of the region are lagging behind.
For example, the right to sell pendente lite or sell the ship pending litigation - a legal measure adopted by the international community - is absent in the region.
This provision provides the claimant the right to ask the court to sell the detained ship when security was not put up within a reasonable period of time.
Usually, due to a long litigation process, the value of the ship deteriorates because of the lack of proper maintenance. The court is tasked to supervise and take the sale fund, which will be available on the day of the judgment.
"That doesn't exist in any of the GCC countries and it poses problem to the court and claimants," he said.
Mills said each country has a number of "unique" provisions (or absence of provisions) that are not aligned to international practices.
Under the global practice, it is allowed for any person seeking to recover a maritime debt to "arrest" the vessel to which the debt relates. He is also allowed to "arrest" any other vessel owned by the debtor if such vessel was owned by him at the time the debt arose.
However in Bahrain, the claimant can only arrest the actual ship, which causes the damage. "That is quite unusual," Mills said. "Elsewhere in the maritime world you are allowed to arrest that ship and any other ship in the same ownership. But rather strangely in Bahrain, it is not the case."
It also not allowed in the country to arrest a vessel if she is ready to sail. "In other jurisdictions, the mere fact that the ship is given clearance to leave would not prevent the claimant to arrest her. This is certainly an area that can be looked at," he added.

Source: Emirates Business 24/7