Shipping 2026

UK Law and Practice Contributed by: Quentin Bargate and Elliot Bishop, Bargate Murray

rower owns the asset and the lender’s primary rem - edy is enforcement of security (including a mortgage sale) and contractual acceleration. In practice, English courts and arbitral tribunals will enforce both types of arrangements according to their terms, but the pro - cedural route differs: mortgage enforcement in Eng - land commonly involves arrest and judicial sale in the Admiralty Court, whereas repossession under a lease is usually pursued through contractual termination and delivery up (and, where needed, court relief such as injunctions), alongside any security and guarantees. 3. Marine Casualties and Owners’ Liability 3.1 International Conventions: Pollution and Wreck Removal Owner and interested-party liability for pollution and wreck removal in the UK is shaped by a mixture of international conventions and domestic statutes. Key conventions include the 1992 Civil Liability Conven - tion (CLC) and 1992 Fund Convention (and the Sup - plementary Fund where applicable) for persistent oil pollution, the 2001 Bunkers Convention for bunker oil pollution from any ship, and the Nairobi International Convention on the Removal of Wrecks 2007. These regimes are implemented primarily through the Merchant Shipping Act 1995 (as amended) and asso - ciated regulations, imposing strict liability in defined circumstances, compulsory insurance and direct action against insurers, together with statutory pow - ers for intervention, clean-up and recovery of costs. Wreck removal is supported in particular by the Wreck Removal Convention Act 2011 (which inserts relevant provisions into the Merchant Shipping Act 1995) and by domestic harbour and environmental legislation, depending on the location and nature of the incident. 3.2 International Conventions: Collision and Salvage Collision liability in the UK is influenced by the Brussels Collision Convention 1910 (as implemented domesti - cally), together with the general principles of English tort and maritime law, and the Collision Regulations (COLREGs), which set the navigational rules relevant to fault and causation.

Salvage is primarily governed by the International Convention on Salvage 1989 (implemented in the UK) and the Merchant Shipping Act 1995, supplemented in practice by standard-form salvage agreements (notably Lloyd’s Open Form) and established Admi - ralty Court and arbitration practice. Salvage awards and special compensation issues are typically deter - mined by reference to the convention framework and the contractual terms agreed. 3.3 Convention on Limitation of Liability for Maritime Claims The UK applies the 1996 Protocol to the 1976 Con - vention on Limitation of Liability for Maritime Claims (LLMC), and has implemented subsequent increases to the limitation amounts (the IMO 2012 amendments) in domestic law. The relevant domestic framework is found in the Mer - chant Shipping Act 1995 (as amended) and associ - ated secondary legislation/orders implementing the LLMC regime. In broad terms, limitation amounts are calculated by reference to the vessel’s gross tonnage and expressed in Special Drawing Rights (SDR), con - verted at the applicable rate. 3.4 Vienna Convention on the Law of Treaties The UK is a party to the Vienna Convention on the Law of Treaties 1969 (VCLT), and English courts routinely apply the VCLT interpretative principles as part of the approach to treaty interpretation (including where those principles reflect customary international law). Accordingly, the UK Supreme Court’s use of the VCLT approach in interpreting the LLMC in MSC Flaminia is consistent with the general position in this jurisdiction. 3.5 Procedure and Requirements for Establishing a Limitation Fund A limitation fund may be constituted in England and Wales by commencing an Admiralty claim and apply - ing to the court for an order to constitute the fund. The fund may be set up by any person entitled to limit (typically the shipowner, demise charterer, man - ager, operator and, in some cases, the liability insurer), depending on the claim and the LLMC provisions. The amount is calculated by reference to the appli - cable LLMC limits (or other relevant limitation regime)

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