Insights

On 14th July, 2020, President Trump signed the Hong Kong Autonomy Act (the “HKAA”) and, simultaneously, an Executive Order implementing the HKAA and revoking Hong Kong’s preferential trade status. As a result of these steps, Hong Kong will now be treated the same as mainland China for the purposes of, among other things, export controls and tariffs and various sanctions will be imposed on certain foreign individuals and entities whose identities are to be confirmed.

On 24th June 2020, OFAC added five Iranian tanker captains to the Specially Designated Nationals (SDN) list, for delivering approximately 1.5 million barrels of Iranian gasoline to Venezuela.

As governments world-wide have grappled with the COVID-19 pandemic, implemented travel restrictions and increased border controls to insulate themselves from the risk of imported transmissions, the human cost to the shipping industry has been and remains significant.   BIMCO has recently developed a clause for time charterparties which attempts to address some of the problems that have been encountered. 

The increased use of very low sulphur fuel oil (“VLSFO”) following the new MARPOL sulphur regulations has brought with it a number of challenges for ship owners. One such challenge is how best to manage the use of cylinder lube oils with VLSFO to reduce the risk of accelerated wear to engine components.  Incidents of this nature are coming to light in growing numbers and Members are therefore advised to pay particular attention to potential issues arising from the use of lube oils. 

The English High Court recently handed down judgment in the case of Jiangsu Guoxin Corporation Ltd (formerly known as Sainty Marine Corporation Ltd) v Precious Shipping Public Co. Ltd [2020] EWHC 1030 (Comm). This judgment effectively marks the end of the ‘prevention principle’ under many standard shipbuilding contracts.