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News Desk
Maersk Honam – General Average is declared
Following the fire on board the 15,262 teu container vessel Maersk Honam, the insurance industry is bracing itself for hundreds of millions of dollars of claims. Maersk declared General Average (GA) on 9 March
and appointed Liverpool-based average adjuster Richards Hogg Lindley to collect the necessary GA security. Efforts continue to find a port willing to accept the
damaged vessel and photos from the Indian Coastguard show many containers to be a total loss, although boxes stowed behind the superstructure and in the aft section appear intact. Twenty-two crew members were evacuated from the vessel following the outbreak of fire, but four sadly lost their lives. Our thoughts go to all affected by this tragedy.
Advice Whenever there is a maritime disaster we get telephone calls at Feltham concerning General Average, so this seems an opportune time to re-publish information on this subject as part of ongoing advice to BIFA Members on such legal matters that may arise. General Average is best described as an ancient
unwritten law of marine insurance. It is a process whereby the parties whose interests have been sacrificed, or who have incurred extra expense, are recompensed by the contribution of those whose interests have been saved. A simple example would be when, to save a ship and its crew, a fire is put out that ruins half the cargo; all the owners of cargo onboard will share the costs incurred to save the venture.
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50th anniversary of the EU
Customs Union This year the EU celebrates the 50th anniversary of the Customs Union. Despite all its fault and shortcomings, the EU Customs Union is a unique example of an area where a number of countries apply a uniform system for handling the import, export and transit of goods and implement a common set of rules. In 2016, the value of the EU
So a General Average has been declared and you
have been asked for an indemnity or a deposit. What should you do? Any standard marine policy will include General
Average losses, so if the goods have been insured the importer should obtain a General Average guarantee from the insurers. If no insurance has been organised then a cash
deposit will be needed. Whatever the position, your first action upon
receiving notification that a General Average has been declared for a vessel is to give immediate notice to the importer. The appointed average adjusters will need to be in possession of completed guarantees and bond forms or cash deposit before release of cargo, so it is vital that the importer takes immediate action. Finally, remember that if you have incorporated the
BIFA Standard Trading Conditions into your contract, then there is an indemnity for you concerning General Average in Clause 22.
45 hours weekly rest – out-of-cab evidence
As previously highlighted by BIFA, the European Court of Justice recently ruled that a driver’s weekly rest period could not be taken in his or her cab.
It is important to note that when travelling internationally, drivers have to comply with the in-cab weekly rest ban for the previous 28 days, not just whilst on the Continent, but also including the rests taken in the UK. Enforcement officers will be looking for evidence that the 45-hour rest period has been taken away from the cab. The driver is initially likely to be questioned, but may also be asked for written evidence.
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We have been advised by the Road Haulage Association (RHA) that it would be useful for drivers to have in their possession the following documents: 1. Driving licence showing UK address (tachograph would show end of day in GB);
2. For drivers with non-GB licences and therefore not showing a UK address, but working for UK companies, it would be helpful for the driver to have evidence of a UK residential address (when tachograph shows end-of-day in the GB);
3. Hotel/accommodation receipts for the period of the weekly rest
and location. There is no certainty over what evidence will be required in specific EU states. The better the evidence that is available when the driver is stopped, the less likelihood that there will be fines. We have noted that an increasing number of individual EU member states have announced penalties for breaching the regulations, the most significant perhaps being the Dutch announcement that breaches of the rules will result in a fine of €1,500. BIFA would like to thank the RHA for the information on which this article is based
trade with other countries amounted to €3.5 trillion (€1.71 trillion for imports and €1.75 trillion for exports). This is more than the total yearly retail sales in the EU. These imports and exports amount to 313 million customs declarations, processed by public and private sector professionals 24 hours a day and 365 days a year.
Notice of annual general meeting & extraordinary general meeting Notice is hereby given that the 29th annual general meeting of the British International Freight Association (BIFA) will be held at The Baltic Exchange, 38 St Mary Axe, City of London, EC3A 8BH, on Tuesday 22 May at 1pm in order to: 1. Receive the report of the Board of Directors.
2. Receive the accounts for the year ended 31 December 2017 and the report of the auditors.
3. Appoint auditors and authorise the Board to fix their remuneration.
4. In accordance with the Association’s Articles, to note and approve the election of officers of the Association.
5. Transact any other business which may properly be transacted at an annual meeting. Robert Keen, Director General
Note: Any Member entitled to attend and vote at the above meeting may appoint a proxy to attend and vote on a poll in his stead. A form of proxy is available to download from
www.bifa.org
April 2018
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