March 12, 2021

Loss of containers at sea – a test case

Pictured: a representation of Justicia, or “Lady Justice”, an anthropomorphic personification of justice. Credit: Tingey Injury Law Firm and Unsplash

Gavin Vallely, Partner with law firm HFW, writes:

The recent incidents involving the loss of containers “have highlighted the importance of having strong and clear laws for wrecks and debris falling from operating ships” and, not for the first time, placed the spotlight on the “current fragmented [legislative] framework in Australian waters”.

These incidents were also the catalyst for Department of Infrastructure, Transport, Regional Development and Communications (Department) releasing a Discussion Paper in August 2020, “Australia’s accession to the Nairobi International Convention on the Removal of Wrecks 2007” (WRC) which, among other things, invited responses to a series of questions for the purpose of the Department examining the options for accession to the WRC.

Shipping Australia submitted a non-confidential submission in response to the Discussion Paper which expressed its support for “accession in full to the Convention, without reservation or amendment”, noting that Australia’s reservation of its position under the Convention on the Limits of Liability for Maritime Claims with the effect that shipowners were subject to unlimited liability for all costs associated with the removal of wrecks, was inconsistent with the WRC and “the unlimited liability reservation must be removed upon accession to the Nairobi Convention”.

The Discussion Paper refers to legal proceedings commenced in the Federal Court of Australia by the Australian Maritime Safety Authority (AMSA) in February 2020 against the owners of the YM Efficiency, All Oceans Transportation Inc (All Oceans).

A review of AMSA’s claim in the proceeding illustrates the ‘fragmented framework’ and its potentially limited scope to recover clean-up and debris removal costs where incidents occur in Australia’s exclusive economic zone. Other lacunas in the legislative matrix are also evident.

Read Mr Vallely’s full insight here.

Editor’s Note: the above article has been lightly edited.

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