Joint ICS VMAA Seminars
Report on 3rd Joint I C S / V M A A Luncheon Presentation 11th October 2017
The 3rd of a set of three joint educational luncheons was held this past Wednesday (Oct 11th) at the Bentall 5 Board room. Organized by the Institute of Chartered Shipbrokers (ICS), Canada Branch and the Vancouver Maritime Arbitrators Association (VMAA). The previous two luncheon presentations heard papers related to Ship Arrest and Maritime Liens, Hanjin bankruptcy impact, Safe berth/Safe port Warranties and Tug/Tow Common Law and Contractual Liability issues. This past Wednesdays two speakers, John (JJ) McIntyre, Partner at MW Law Offices and Jason R. Kostyniuk, Partner at Alexander Holburn Beaudin + Lang, presented, respectively on the “Effect of inconsistent arbitration terms between CP’s & BL’s,” and “Clean vs. Claused Bills of Lading & Letters of Indemnity.”
Just prior to kicking off, Mr. Karl Wang, Chartering Executive for Pacific Basin Shipping and a Director of the Canada Branch of ICS gave a brief background to the local branch.
With everyone having enjoyed delicious sandwiches and beverages, Mr. McIntyre led the charge and presented on the “Effect of inconsistent arbitration terms between CP’s & BL’s.”
He started by noting, there is a right to commence action in Canada regardless of what is contained in the contract. It is, however, difficult to enforce and ultimately would need consent (NY Convention). The case of the “Nicholas A” was quoted. In this case the Gencon printed form provided for London Arbitration and English law to prevail. The fixture recap however called for Arbitration in Hong Kong. After the sole arbitrator found in favour of arbitration in London, an appeal to the U.K. High Court overturned the arbitrator and found that the agreed terms of the fixture recap prevailed (Hong Kong) over the printed ‘boiler plate’ of the Gencon charter. Questions were fielded and some ‘sparky’ conversations were enjoyed, with much participation from the 30 strong in attendance.
To follow up, Mr. Kostyniuk laid out a well presented power point on “Clean vs. Claused Bills of Lading & Letters of Indemnity.” He gave a brief history and a recap of the purpose of letters of indemnity (LOI).
Letters of indemnity are frequently given in exchange for ‘clean’ bills of lading when ‘clean’ bills of lading are required but could otherwise not be given. Continuing on, Jason advised that issuing clean bills lading under these circumstances would be considered fraudulent and the LOI would be unenforceable. An owner agreeing to the above would lose their P & I coverage. In other cases, Letters of indemnity can be issued to an owner in exchange for delivery of cargo at the destination when the original endorsed bill of lading is unavailable. This procedure is not condoned by the P & I Clubs but they do provide assistance by way of providing standard form letters and appropriate wording. These letters require bank guarantees which are unlimited in regards to time and value although in subsequent questions it was agreed that commercial pressures make it almost impossible to conclude a fixture which includes the issue of bank endorsed letters of indemnity when bills of lading are unavailable at the discharge port.
After 15 more minutes of thought provoking questions (and answers) the speakers were warmly thanked and presented with the copies of Quality Ashore (A history of the Institute of Chartered Shipbrokers). A successful event concluded along with a reminder of the ICS DRY BULK & COMMODITIES CONFERENCE, slated for Vancouver on November 16th.
The International Congress of Maritime Arbitrators (ICMA), held in Copenhagen from September 25th – 29th, 2017 and hosted by the Danish Institute of Arbitration, offers maritime arbitrators and lawyers a unique opportunity to examine and discuss the most important issues currently affecting maritime law and the greater shipping industry. 
Directors JJ McIntyre, Peter Koh and Peter Swanson are in attendance representing the Vancouver Maritime Arbitrators Association (pictured above). In addition to functioning as a forum for discussion and showcasing compelling papers within the field, ICMA also provides delegates with the chance to connect socially and network with international colleagues.
The Standard Club’s Canada Forum
It was a bright, sunny Thursday afternoon on April 27th, 2017 when a combined group of members from the Vancouver Maritime Arbitrators Association and Institute of Chartered Shipbrokers Canada Branch made their way to the Fairmont Hotel Vancouver for a marvelous presentation called The Standard Club’s Canada Forum. Every two years, Charles Taylor & Co. Limited, acting as managers of The Standard Club Europe Ltd host this gathering, in one or two major North American centres.
This year they started in Montreal, with speakers from Montreal, London, New York, Vancouver and Seattle polishing their theatrical talents to enhance the presentation. Each speaker highlighted the potential impact that might arise out of a fabricated scenario of a major catastrophe involving a collision between a ferry operating between Nova Scotia and Newfoundland and a bulk carrier leaving the Gulf of St. Lawrence.
As the major casualty scenario develops, each of the 10 speakers highlighted insights into allocation of liability, major casualty response, insurance coverage, the role of the P&I club, pollution considerations and loss prevention issues. They also touched on potential local and international governing bodies who may also need to be involved and how specific authorities may have to be appointed and established at any accident or incident, regardless of how large or small.
The Standard Club has been in existence since 1884 and is one of 13 “Clubs” offering insurance and underwriting to ship owners around the world. They boast an impressive clientele of over 10% of global shipping. Every vessel in the water must be insured against potential unforeseen incidents, whether they’re at sea or in port.
A unique part to the event was the panel’s use of electronic polling devices. Each attendee was given a hand held ‘clicker’. At the end of each individual’s presentation, they would pose a question on the main screen and ask the audience to “choose the correct answer” by selecting the corresponding button on the clicker. From the four or five answers displayed on the screen the crowd was given 10 seconds to make their selection and the results were immediately displayed, showing the correct answer and the percentage of how many got it right. We were told the Vancouver crowd definitely surpassed the results of Montreal!
Immediately following the 3 hour presentation, the magnanimous hosts sponsored a reception allowing for extensive visiting and follow up questions with the presenters. A great opportunity to hear very knowledgeable professionals present an assortment of aspects facing the people and companies operating in the maritime industry.
The full presentation can be viewed here.