Welcome to the March 2017 issue of Legalseas.
Dealing with problem loans
The increasingly perilous finances of a number of shipowners has meant that lenders are focusing on identifying problem loans in their shipping portfolios. Siavush Mokhtar in Hong Kong and Nicholas Papadopoulos in London explore the options available to lenders in addressing problem loans, and consider lessons learned from Hanjin’s failure.
Salvage in China – apportioning the cost of salvage between shipowners and cargo interests
Salvage can be complex under Chinese law. Wenhao Han in London examines the recent Chinese Supreme People’s (SCP) Court decision in MV Archangelos Gabriel and who is liable for salvage fees in a pre-fixed tariff rates salvage contract.
Electronic contracting: commodities market players driving changes in shipping as technology advances
New technologies are being employed to manage risk in commodities trading, a number of which will impact on shipowners. Dan Perera in Singapore considers whether or not smart contracts operating over blockchain technology could bring an end to the paper trail the shipping industry has relied upon for centuries.
Buying and selling shipping loan portfolios
A number of traditional shipping banks are withdrawing from the market, opening the door to new financial institutions and investors. These new entrants are seeking to increase their exposure to shipping when asset values are low, often by buying the loan portfolios of those banks now stepping back from the market. Simon Lew in London looks at due diligence considerations, key issues for buyers to look out for and the options available for documenting loan transfers.
The Cape Bari decision: Shipowners’ right to limit liability under international and US law
The Privy Council’s approach in the Cape Bari case has raised an important risk management issue for shipowners in limiting liability. Peter Glover in London and Julie Pateman Ward in New York consider the implications for shipowners under international and US law.
New environmental regulations - a timeline
A number of significant regulatory changes are being introduced, aimed at lessening the environmental impact of the shipping industry. Our infographic sets out when these regulations are due to take effect.