Shipping 2026

ISRAEL Law and Practice Contributed by: Joseph Sprinzak and Rahel Rimon, J.SPRINZAK

4. Cargo Claims 4.1 Bills of Lading

Once a fund is constituted, claims by local creditors must be filed within 30 days, whereas foreign credi - tors are given 60 days to file their claims. According to Section 9 (a) of the Law, constitution of a fund creates a bar to other actions. In an important precedent concerning the establish - ment of a limitation fund in Israel, the Israeli Admiralty Court has recently held (In Rem File 44990-07-19 Moraz Shipping v Israel Ports Company ) that no limitation fund would be approved in cases of marine pollution on the grounds that “the polluter pays”. The Court upheld the Israel Ports Company’s objection to the establishment of the fund, inter alia, because the provisions of the Oil Pollution Prevention Ordinance – 1980 impose an obligation on those convicted of offences under the law to clean up, and after analysing the principles of the International Convention on the Limitation of Liability of Owners of Sea-Going Ships 1957 as adopted into Israeli law. 3.6 Seafarers’ Safety and Owners’ Liability Israel is not a party to the MLC 2006, although leg - islative efforts have been initiated to encourage the employment of Israeli seamen. Israel has also ratified 49 International Labor Organization Conventions and one Protocol, including all eight Fundamental Conven - tions. The Technical Conventions include: • the Placing of Seamen Convention, 1920 (No 9); • Paid Vacations (Seafarers) Convention (Revised), 1949 (No 91); • C092 – Accommodation of Crews Convention (Revised), 1949 (No 92); • C133 – Accommodation of Crews (Supplementary Provisions) Convention, 1970 (No 133); • C134 – Prevention of Accidents (Seafarers) Con - vention, 1970 (No 134); and • C147 – Merchant Shipping (Minimum Standards) Convention, 1976 (No 147). The Ports (Shipping Safety) Regulations, 1982, govern the safety of seafarers and use of safety equipment, as well as the seaworthiness of vessels, including through the adoption of the provisions of the Interna - tional Convention for the Safety of Life at Sea (SOLAS) 1974 and the Convention on Training and Certification 1978, as amended in 1995.

Israel has adopted the Hague-Visby Rules by virtue of the Carriage of Goods by Sea Ordinance – 1926, as amended in 1992. By virtue of this Ordinance, as amended in 1992, the Hague-Visby Rules apply to any bill of lading in respect of carriage of goods by sea in any vessel: • from a port in Israel to another port, whether in Israel or outside Israel; • from a port in a country that is party to the Hague Rules or the Hague-Visby Rules, or when the bill of lading was issued in a country that is party to the Rules; • when they apply to the contract of carriage includ - ed in the bill of lading, or where the bill serves as proof of its existence, according to a term stipu - lated in a contract or under the laws of the country whose laws apply to that contract; and • to a port in Israel when the laws of Israel apply to any such carriage, whether according to the con - tract of carriage, another agreement between the parties or the determination of the court. 4.2 Title to Sue on a Bill of Lading As a rule, the lawful holder of the bill of lading may bring suit under the bill of lading. There may be cases, however, where a party who is a named consignee under a non-negotiable bill of lading may have a cause of action against the maritime carrier – for example, the buyer of the cargo under a sale contract, who has not received by way of transfer or endorsement a right to assert a claim under the bill of lading. Under Section 22 of the Torts Ordinance [New Ver - sion], it is generally not permissible to assign the right to a remedy for a tort or liability, except by operation of law. However, in the landmark case of Ma’ale Ephraim Printing Ltd v Ellerman Lines and Others (Judge King), later affirmed by the Supreme Court, the Court clari - fied several important principles. Regarding a bill of lading, the Court held that, upon its transfer, the proprietary right in the cargo passes to the transferee, who is thereby entitled to sue and be sued in their own name. While English law restricts the

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