Newsletter 15 SEA VENTURE Pirates Thwarted as EU NAVFOR Supports NATO in Rescue Operation Steamship Mutual receives Seatrade Award “Seven Seas Mariner” to the Rescue Damages for Early Termination Himalaya Clauses - are Third Parties Hague Rules Carriers? Loss Prevention Update CONTENTS 4Enforcement of Arbitration Awards – Limitation 4Oil Pollution in Brazil 5 Himalaya Clauses – are Third Parties Hague Rules Carriers? 5Without Prejudice – Admissibility of Exchanges as an Aid to Interpretation 6Salvage Remuneration – Limits to the Principle of Encouragement 6Steamship Mutual receives Seatrade Award 7Pirates Thwarted as EU NAVFOR Supports NATO in Rescue Operation 8Berth or Port Charter? 8Interpretation of Contractual Terms 9Safe Transportation of Coal by Sea 9 Liquidated Damages Clause – Penal or Compensatory? 10Centenary Dinner Hits High Note 12Pro Forma Charterparty – Printed Terms v Negotiated Terms 12U.S. – Indemnity Agreements in Offshore Energy Contracts 13Loss Prevention Update 14“Seven Seas Mariner” to the Rescue! 16Hong Kong Misdelivery – Limitation v Exclusion 16Withdrawal of Vessel from Charter – Damages 17EU – Competition Law & Shipping 17Inherent Vice & Perils of the Seas 18Damages for Early Termination 18Tendering NOR before Free Pratique is Granted – When Does Time Begin to Run? 19Charterparty Repudiation – An Intention not to Perform 19SIMSL News 2 EDITORIAL TEAM Naomi Cohen Sue Watkins Malcolm Shelmerdine Sea Venture is available in electronic format. If you would like to receive additional copies of this issue or future issues in electronic format only please send your name and email address to seaventure@simsl.com. Feedback and suggestions for future topics should also be sent to this address. CONTACT For further information, please contact: Steamship Insurance Management Services Limited Aquatical House 39 Bell Lane London E1 7LU Telephone: +44 (0)20 7247 5490 and +44 (0)20 7895 8490 Website: www.simsl.com 5 6 7 9 3 INTRODUCTION Now that the 2010 renewal is behind us it is perhaps opportune to look back briefly on the year that has just closed. 2009 proved to be a important year for the Club. Not only did the year mark Steamship Mutual’s centenary but, and largely as a result of support from the existing Membership, it was also memorable for the measured and steady growth of the Club’s entered tonnage. Underpinning this growth is the Club’s financial strength. Steamship Mutual can now be counted as one of the strongest Clubs in the International Group. This was endorsed in January when Standard & Poor's updated the financial strength rating of Steamship Mutual to a positive outlook. The Club is projecting another year of solid underwriting results for 2009 / 2010 and a significant increase in free reserves at year end. Standard and Poor’s positive outlook recognises these achievements, the underwriting discipline and strong competitive position of the Club and the importance of these factors when considering a rating upgrade as the Club enters the new decade. Further details in this respect are set out in the Club’s circular and Press release following the recent Board Meeting in Hong Kong: www.simsl.com/Circulars-Bermuda/B.507.pdf www.simsl.com/PressReleaseLookingToFuture0210.html These results combined with the Club’s commitment to the provision of an excellent level of service means Steamship Mutual is able to move forward with confidence. While service is key to the Club’s continuing success it is important to recog