UAE Law and Practice Contributed by: Abdelhak Attalah and Ghassan Hidar, Attalah Legal Consultancy
2.5 Seafarers’ Safety and Owners’ Liability The UAE has not ratified the Maritime Labour Convention (MLC) of 2006, but many of its pro - visions have been informally integrated into the UAE’s legislative framework, and the Ministry of Transport has expressed its commitment to aligning with the core principles of the MLC. In this regard, the ML imposes specific obliga - tions on vessel operators, including owners and charterers, to ensure seafarers’ well-being while on board. Articles 93 to 104 of the ML establish the rights, entitlements and safety measures for seafarers, addressing their working conditions, welfare and protections in line with both interna - tional standards and domestic regulations. The UAE has not ratified any international con - ventions concerning bills of landing, such as the Rotterdam Rules, Hamburg Rules, Hague-Visby Rules or Visby Rules. However, the ML includes provisions that are largely based on the Hague- Visby Rules. Specifically, Articles 155–187 of the ML address issues related to carriage of goods by sea, and B/L and Articles 188–198 govern the multimodal carriage of goods and B/L. 3.2 Title to Sue on a Bill of Lading The lawful holder of the B/L – whether that is the consignee, the last endorsee or the desig - nated holder – has the right to bring a lawsuit. The UAE courts also recognise the assignment of title to sue, such as the assignment in favour of the cargo insurer. 3. Cargo Claims 3.1 Bills of Lading
3.3 Ship-Owners’ Liability and Limitation of Liability for Cargo Damages Pursuant to Article 177 of the ML, the carrier’s liability for damage or loss to cargo is limited to an amount not exceeding 835 SDR for each package or unit used to calculate the freight, or alternatively not exceeding 2.5 SDR per kilogram of the total weight of the goods, whichever is greater. The value of the SDR, as determined by the International Monetary Fund, is applied, and the payment must be made in United Arab Emirates dirham. However, this limitation may not apply in certain situations, including: • if the damage results from an act or omission by the carrier or their agents, with the intent to cause harm or with recklessness, knowing that harm could occur; • if the carrier issues a B/L without reserva - tions, despite circumstances requiring such reservations, with the intent to harm bona fide third parties; • if goods are loaded on deck in violation of an agreement stipulating that they should be loaded in the hold; and • if the shipper provides a statement before shipment about the goods’ nature, value and special preservation needs – this statement is included in the B/L. As for liability between carriers, the contractual carrier is fully responsible for all damages occur - ring during the carriage process. In contrast, the actual carrier is only liable for damages occur - ring during the portion of the journey they han - dle. The actual carrier and the contractual carrier share joint liability, and their liability is subject to the limitations outlined in the foregoing pursuant to Article 186(2) of the ML.
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