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Analysis on the Civil Liability of Third-Party Ship Management

Received: 19 September 2021    Accepted: 20 October 2021    Published: 29 October 2021
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Abstract

Third-party ship management is the management of ships by professional companies independent of shipowners and charterers. It is the result of the mature development of the international shipping industry and the refinement of the division of labor in the industry. Since its emergence in the 1950s, it has played an increasingly important role in improving the flexibility of ship operations, reducing ship operating costs, and improving the level of professional services. In China, it has only been about 21 years since the first ship management company was born, and the whole industry is still in the process of exploration. The relevant legal provisions are not sufficiently clear. Theoretical studies on ship managers have also focused on management strategies and less on civil legal liability. To better understand the legal liability of ship managers, this paper identifies the concept and characteristics of ship managers based on the fundamental theories of civil law. The civil liability of ship managers is discussed in terms of breach of contract, tort, and contract negligence, taking shipping practice and standard agreements into account. According to the different legal provisions and judicial practice, it is proved that the liability of ship managers is becoming increasingly strict. They must be partially responsible for the safe and proper operation of the ship, and the legal status is not only as of the shipowner's agent. The paper also analyses the situations where the ship manager may not benefit from the limitation of liability and suggests that this should be considered in the management agreement or legal regime.

Published in International Journal of Law and Society (Volume 4, Issue 4)
DOI 10.11648/j.ijls.20210404.12
Page(s) 244-253
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Ship Management, Civil Liability, Breach of Contract, Tort

References
[1] Cleave, N. D. Third-Party Ship Management. In Encyclopedia of Maritime and Offshore Engineering, 2017.
[2] He Liang. A Study on Some Issues of Civil Legal Liability of Ship Management Companies. Dalian Maritime University, 2003, MA thesis.
[3] K. Mitroussi. The ship owners' stance on third party ship management, Maritime Policy & Management, 2004.
[4] Wang Yang. China Maritime Judicial Network for Foreign Commercial Transactions, Shanghai Maritime Court, 1996.
[5] Chen Haibo, Wu Xianjiang. On the Liability Subjects of Ship Collisions, China Foreign Commercial Maritime Judgment Network, 2004.
[6] Morgan Jr H S. Unreasonable deviation under COGSA. J. Mar. L. & Com., 1977, 9: 481.
[7] Manno C. Liability Limitations of Warsaw Convention Applicable to the Carrier's Employees (Reed v. Wiser). St. John's Law Review, 2012, 52 (2): 4.
[8] Malcolm Willingale. Ship management 3rd., LLP, 1998.
[9] Yang Lixin. Liability for Damages in Uncompensated Entrustment Contracts, Case and Doctrinal Studies in Chinese Civil Law (Credit Chapter), Law Press, 2003.
[10] Özdel M. Bills of lading incorporating charterparties. Bloomsbury Publishing, 2015.
[11] Qingdao Maritime Court Maritime Case No. 60. 2002.
[12] Yang Lixin. The Reconstruction of the Theoretical System of Chinese Tort Law, Application of Law, 2004.
[13] Jiang Ping. Contract Law of the People's Republic of China in a Nutshell, China University of Political Science and Law Press, 1999.
[14] Paul Gunton. Leading Developments in Ship Management. LLP, 1992.
[15] Gao Ning. Problems and suggestions of maritime regulatory laws and regulations on ship pollution prevention. World Shipping, 2019.
[16] Van Horn T. Paying Twice for a Public Vessel's Necessaries in the Eleventh Circuit. Tul. Mar. LJ, 1995, 20: 123.
[17] Griggs P, Williams R, Farr J. Limitation of liability for maritime claims. Taylor & Francis, 2020.
[18] Leary M. Vessel Manager Liability in Tort Actions: Steel Coils, Inc. v. M/V Captain Nicholas I. Tul. Mar. LJ, 2002, 27: 645.
[19] Wang Zejian. The Complete Collection of Law, vol. 12, China University of Political Science and Law Press, 2003.
Cite This Article
  • APA Style

    Zeng Luling, Ni Zhangfeng, Jiang Zhengxiong, Wang Deling. (2021). Analysis on the Civil Liability of Third-Party Ship Management. International Journal of Law and Society, 4(4), 244-253. https://doi.org/10.11648/j.ijls.20210404.12

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    ACS Style

    Zeng Luling; Ni Zhangfeng; Jiang Zhengxiong; Wang Deling. Analysis on the Civil Liability of Third-Party Ship Management. Int. J. Law Soc. 2021, 4(4), 244-253. doi: 10.11648/j.ijls.20210404.12

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    AMA Style

    Zeng Luling, Ni Zhangfeng, Jiang Zhengxiong, Wang Deling. Analysis on the Civil Liability of Third-Party Ship Management. Int J Law Soc. 2021;4(4):244-253. doi: 10.11648/j.ijls.20210404.12

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  • @article{10.11648/j.ijls.20210404.12,
      author = {Zeng Luling and Ni Zhangfeng and Jiang Zhengxiong and Wang Deling},
      title = {Analysis on the Civil Liability of Third-Party Ship Management},
      journal = {International Journal of Law and Society},
      volume = {4},
      number = {4},
      pages = {244-253},
      doi = {10.11648/j.ijls.20210404.12},
      url = {https://doi.org/10.11648/j.ijls.20210404.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijls.20210404.12},
      abstract = {Third-party ship management is the management of ships by professional companies independent of shipowners and charterers. It is the result of the mature development of the international shipping industry and the refinement of the division of labor in the industry. Since its emergence in the 1950s, it has played an increasingly important role in improving the flexibility of ship operations, reducing ship operating costs, and improving the level of professional services. In China, it has only been about 21 years since the first ship management company was born, and the whole industry is still in the process of exploration. The relevant legal provisions are not sufficiently clear. Theoretical studies on ship managers have also focused on management strategies and less on civil legal liability. To better understand the legal liability of ship managers, this paper identifies the concept and characteristics of ship managers based on the fundamental theories of civil law. The civil liability of ship managers is discussed in terms of breach of contract, tort, and contract negligence, taking shipping practice and standard agreements into account. According to the different legal provisions and judicial practice, it is proved that the liability of ship managers is becoming increasingly strict. They must be partially responsible for the safe and proper operation of the ship, and the legal status is not only as of the shipowner's agent. The paper also analyses the situations where the ship manager may not benefit from the limitation of liability and suggests that this should be considered in the management agreement or legal regime.},
     year = {2021}
    }
    

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  • TY  - JOUR
    T1  - Analysis on the Civil Liability of Third-Party Ship Management
    AU  - Zeng Luling
    AU  - Ni Zhangfeng
    AU  - Jiang Zhengxiong
    AU  - Wang Deling
    Y1  - 2021/10/29
    PY  - 2021
    N1  - https://doi.org/10.11648/j.ijls.20210404.12
    DO  - 10.11648/j.ijls.20210404.12
    T2  - International Journal of Law and Society
    JF  - International Journal of Law and Society
    JO  - International Journal of Law and Society
    SP  - 244
    EP  - 253
    PB  - Science Publishing Group
    SN  - 2640-1908
    UR  - https://doi.org/10.11648/j.ijls.20210404.12
    AB  - Third-party ship management is the management of ships by professional companies independent of shipowners and charterers. It is the result of the mature development of the international shipping industry and the refinement of the division of labor in the industry. Since its emergence in the 1950s, it has played an increasingly important role in improving the flexibility of ship operations, reducing ship operating costs, and improving the level of professional services. In China, it has only been about 21 years since the first ship management company was born, and the whole industry is still in the process of exploration. The relevant legal provisions are not sufficiently clear. Theoretical studies on ship managers have also focused on management strategies and less on civil legal liability. To better understand the legal liability of ship managers, this paper identifies the concept and characteristics of ship managers based on the fundamental theories of civil law. The civil liability of ship managers is discussed in terms of breach of contract, tort, and contract negligence, taking shipping practice and standard agreements into account. According to the different legal provisions and judicial practice, it is proved that the liability of ship managers is becoming increasingly strict. They must be partially responsible for the safe and proper operation of the ship, and the legal status is not only as of the shipowner's agent. The paper also analyses the situations where the ship manager may not benefit from the limitation of liability and suggests that this should be considered in the management agreement or legal regime.
    VL  - 4
    IS  - 4
    ER  - 

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Author Information
  • Law School, Shanghai Maritime University, Shanghai, China

  • Shanghai Maritime Safety Administration, Shanghai, China

  • Law School, Shanghai Maritime University, Shanghai, China

  • Law School, Shanghai Maritime University, Shanghai, China

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