Maritime QuestionsAdmiralty Commercial

Three days after departing Lagos, Nigeria, a stowaway is found in the engine room void space. Your next port is Hamburg, Germany. What are your legal obligations?

A. STOWAWAY — legal obligations: IMO FAL Convention (Facilitation of International Maritime Traffic) — Guidelines on the Allocation of Responsibilities to Seek the Successful Resolution of Stowaway Cases (FAL.7/Circ.13 Rev2): (1) IMMEDIATE: report to master; ensure the stowaway's welfare (medical check, food, water, shelter — MLC applies); the stowaway must not be mistreated; (2) SECURITY: the stowaway must be held securely to prevent further access to dangerous areas or communications equipment, but detention must be humane; (3) DOCUMENTATION: complete a Stowaway Details Form (FAL Form 7); photograph; note date/location of discovery; preserve any documents found on them; (4) NOTIFY: company, flag state, P&I Club, and the next port state (Hamburg port authority) — well in advance; (5) COUNTRY OF DISEMBARKATION: the port state (Germany) decides whether to accept the stowaway. If the stowaway is from a country without appropriate travel documents, Germany may refuse — and the shipowner has an obligation to return the stowaway to the country of origin at the company's cost; (6) COUNTRY OF ORIGIN (Nigeria): the ship's agent in Nigeria should be contacted to arrange document and return arrangements; (7) LOG: all details in official log; (8) AVOID: do NOT turn around or deviate unless directed by the owner/flag state — the FAL guidelines favour resolving at the next port.
B. A stowaway is an illegal immigrant — call the nearest coast guard, have them removed by the naval authority, and continue the voyage.
C. The stowaway has no rights aboard a commercial vessel. Lock them in a cabin without food or water until reaching Hamburg to prevent further concealment or communication.
D. Return immediately to Lagos to deposit the stowaway. Any deviation to Hamburg makes you criminally responsible for human trafficking under German law.
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Your vessel is aground on a sandbar. A tug arrives and the salvor presents you with Lloyd's Open Form 2020 for your signature. The shipowner is unreachable. What is LOF and do you sign it?
A. LLOYD'S OPEN FORM (LOF 2020) — the standard maritime salvage contract: Key characteristics: (1) NO CURE — NO PAY: the salvor is only paid if the salvage operation is successful (salved property is brought to a place of safety). If the vessel is lost, the salvor receives nothing (except potentially under the environmental protection enhancement — SCOPIC); (2) SCOPIC CLAUSE (Special Compensation P&I Club): a supplement to LOF that provides the salvor a safety net of "special compensation" for costs plus uplift if their efforts protect the environment, even if the salvage itself fails — to encourage salvors to attempt environmentally beneficial but risky operations; (3) AWARD DETERMINATION: the salvage award is fixed by Lloyd's arbitration (not the contract) — the salvor and shipowner are both bound to arbitration; (4) MASTER'S AUTHORITY: the Master has authority under admiralty law to sign a salvage agreement on behalf of the shipowner and cargo interests in cases of IMMINENT DANGER — the authority arises from necessity and the master's agency role. In this scenario — aground, salvage required — you MAY sign LOF on behalf of the shipowner. Immediately notify the owner and P&I Club. Consider inviting SCOPIC activation.
B. Never sign LOF without express authorisation from the shipowner. Wait until the owner is reached even if the vessel sinks. Only the shipowner can commit to a salvage contract.
C. LOF means the salvor is paid a fixed percentage of the vessel's value regardless of success. It is always better to negotiate a daily hire rate instead of LOF.
D. The master has no authority to sign any commercial contract. LOF can only be signed by the company's legal department. Reject LOF and request services under towage terms.
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Your laden container vessel suffers an engine room fire. To extinguish it you flood the engine room with CO2, destroying cargo and causing machinery damage. The vessel is saved. The P&I Club asks whether you will declare General Average. What is GA and what does the declaration involve?
A. GENERAL AVERAGE (GA): a principle of maritime law whereby extraordinary sacrifices or expenditures made voluntarily for the common safety of the venture are shared proportionally by all parties (ship, cargo, and freight). York-Antwerp Rules 2016 — the modern standard governing GA: Rule A: there is a general average act when, and only when, any extraordinary sacrifice or expenditure is intentionally and reasonably made or incurred for the common safety for the purpose of preserving from peril the property involved in a common maritime adventure. REQUIREMENTS for GA: (1) Common peril — all parties (ship AND cargo) must face the same danger; (2) Voluntary act — intentional; (3) Reasonable — judged at the time; (4) Success — the property must be saved. In this scenario: flooding the engine room was voluntary, sacrificed cargo (destroyed by CO2 and flooding), and saved the ship — this is a classic GA act. DECLARATION: the master declares GA by noting it in the Official Log Book and notifying all B/L holders and cargo interests (through the P&I Club and average adjusters). The master appoints an Average Adjuster (Lloyd's Agents) to calculate each party's contribution. Cargo interests must provide a GA Bond and/or deposit before cargo is released.
B. General Average only applies if the ship's own cargo is sacrificed. Fire extinguishant damage to third-party cargo is a P&I liability, not General Average.
C. The master cannot declare General Average — only the shipowner can. The master's role is to record the facts; the insurance company declares GA.
D. General Average requires the sacrifice to be accidental. Since flooding the engine room was a deliberate decision, it is a tortious act and covered by hull insurance, not General Average.
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