Maritime Law: United Nations Conventions on Law of the Sea 1982 and Autonomous Ships

This article discusses the United Nations Conventions on Law of the Sea 1982 and its legal basis for autonomous ships. It also explores the circumstances in which freight forwarders act as agents or principals in shipping. Find comprehensive study material on maritime law at Desklib.

MARITIME LAW

TABLE OF CONTENTS
QUESTION 1...................................................................................................................................3
United Nations conventions on law of the sea 1982 has been considered once technology is
advance to level of degree three and four so it still provides sound legal basis for smooth
running of autonomous ships.......................................................................................................3
QUESTION 2...................................................................................................................................4
A) Discuss salvage award to tug Iced coffee ..............................................................................4
B) Discuss whether the tug Iced tea will be entitled to any compensation for services it
rendered .......................................................................................................................................6
QUESTION -3.................................................................................................................................7
To explain when or in what circumstances freight forwarder become agent for shipper or acts
as a principal................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Marine law can be defined as body of law that is governing the marine navigation and
commerce, marine affairs in general and carriage at property and person. Furthermore it also see
overs the rules that are governing the contract, worker compensation claims and related to
commerce on or over water. The united nation convention on law of sea is legal framework that
governance all activities and use related to ocean and world seas. This report has include key
information related to technology that has advance to level of degree three and four so the
UNCLOS provide legal basis for smooth running of autonomous ships. Furthermore, it has
consisted information related to when or in what circumstances the freight forwarder may be acts
as agent for shipper or principle.
QUESTION 1
United Nations conventions on law of the sea 1982 has been considered once technology is
advance to level of degree three and four so it still provides sound legal basis for smooth
running of autonomous ships
Once the technology in the ship has achieved the level of degree three and degree four,
the United Nations Convention on the Law of the Sea 1982 will provide the sound legal basis for
smooth running of autonomous ships. The United Nations Convention on the Law of the Sea
1982 states that development and transfer of marine science and technology on fair and
reasonable term and conditions. Moreover, the organization need to promote the development
and transfer of marine technologies as per their actual capabilities. At the same time as per the
UNCLOS law companies need to try hard to foster favourable legal and economic condition for
transfer of marine technology for benefits of organization and related parties on equal basis
(Baatz, 2020).
Furthermore, the UNCLOS law provide sound legal basis because it promotes marine
technology capacity of through technical assistance with regard to exploitation, conservation,
exploration and management of marine resources. Likewise, in the degree three, has stated that
remotely controlled ship without seafarers on the board thus it means the ship will be controlled
and operated from another location. So there are no seafarers on the board and all the procedure
will be managed through use of innovative technology for better outcome. At the same time the
degree four is an fully autonomous ship that states that the operating system of ship itself is able
to make decision and determined key action that need to be taken. Thereby, as per the section 1

general provision related to development and marine technology that all the decision and process
need to be undertaken with an view of accelerating social and economic of developing states.
The UNCLOS law moreover illustrate that acquisition, evaluation and dissemination of
marine technological knowledge and it should also facilitate the access to information and data.
So the degree four while taking decision will ensure that there is easy access of information and
data while taking decision related to operation of ship so that it can be smoothly operated. It also
specified that there should be appropriate and necessary technological infrastructure in order to
facilitate the procedure and policies related to ship (Hill and Kulkarni, 2017). Such as in the
degree four, it is fully autonomous ship that clearly states that operating system of ship is used to
take all necessary decision and action that need to be undertaken for smooth running of
autonomous ship.
The degree three specified that ship will be controlled without seafarers that are located at
some other place so in accordance with United Nations Convention on the Law of the Sea 1982,
all guideline, standard as well as criteria used in case of degree 3 and 4. So the ship has
considered the international or different country standard while adapting to different degree so
that it can smoothly operate and achieve the end goals. While in case of any type of dispute as
per article 279 of section- 1, general principle, that specified about the way dispute between the
parties will be resolved. The article 280, states that any dispute arise between parties need to be
resolved peacefully through their own choice (Karlis, 2018). Therefore, even after the
advancement in the technology, the United Nations Convention on the Law of the Sea 1982 will
provide sound legal basis for smooth operation of autonomous ship because it has ensured that
all steps related to protection and preventions of marine environment has been undertaken. At the
same time there are appropriate infrastructure related to facilitating the degree 3 and 4 so that
maximum benefits can be enjoyed by every individual.
QUESTION 2
A) Discuss salvage award to tug Iced coffee
The above case study has helped in understanding that Milk tea alliance shipping line is
company that has been operating between ports in Bangkok, Melbourne and Singapore. So on 28
February 2020, the spice guys, a grocery stores company has contacted MTAS to make shipment
arrangement so that the products can be easily transported. But the ship has got aground near
Singapore territorial water thereby the master has made urgent phone call to MTAS to inform

about the incident. So it was told that the tug will be re float, thereby just within an hour tug iced
tea has arrived so the master signed LOF and states iced tea to commence its operation.
Meanwhile the tug iced coffer has arrived so the master understand that it is all misunderstanding
therefore it instructed to cease all the operation (Choi, 2020). It was also identified that the tug
iced coffer has accidentally caused a small hole in the position that has resulted in
causing several losses to the company.
Salvage arbitration is responsible for saving life or preservation of ship or cargo or other
property from peril at sea. Moreover, it can be stated that salvage takes on very significant role
when ship has been salvaged likewise sank or aground. Thus, it saves the property on board a
ships. So, as Salvage arbitration there are various terms that needs to be considered while
deciding the salvage amount needs to be provided to tug Iced coffee. In context of Milk tea
alliance shipping line case study, there are several things or points that has been considered by
Salvage arbitration in order to decide appropriate salvage amount need to be provided to tug Iced
Coffee. These conditions include but are not limited to such as created to safeguard the payments
assured to a salvor on completion of a successful salvage, there are several conditions that
determine the award that can be expected.
Different types of maritime salvages and related aspects: The first and foremost thing that has
been considered while deciding the salvage amount is identification of different types of
maritime salvages or damages cause to ship. Likewise, the extending beyond the nation
territorial waters or open body of water not surrounded by coastline (Tamunodiepiriye, 2019).
So, while deciding the reward tug Iced Coffee evaluation of all method or strategies that are used
by manager to handle the ships so that minimal cost to owners.
 Specific conditions: In addition to this, specific conditions needs to be set in order to
decide appropriate salvage rewards such as legal issue that has caused salvage operation.
Furthermore, salvage arbitration has considered the extent of potential danger that has
been faced by the salvor and valuation of salvaged property, along with it whether
reasonable efforts has been made to prevent the environment damages. Likewise, tug
Iced coffee has taken appropriate measure to minimise the loss cause to the ship but a
small hole has been caused unintentionally that has resulted damage to the material.
 Time frame involved in salvage: The reward is also decided on the basis of time frame
that has been followed while taking steps to overcoming the safety issue or any harm or

loss caused to ship. Thereby, if the process is completed in limited time frame or no
delay has been caused to protect the ship that associated reward need to be paid. Such as
tug Iced coffee was somewhat late to come and help the ship which has result in tug Iced
tea to complete all process for protection and safety of ship (Kragic, 2019).
 Nature and degree of danger or loss caused to ship: Another important point that has
been considered while deciding the salvage reward is nature and degree of danger or any
type of loss caused to ship. Such as it has been estimated that around AU$25,500 overall
loss that company needs to be bear due to mistake of tug Iced coffee as it has caused a
hole that has lead in damage to all resources. Likewise, AU$14,000 has been caused due
to cost of permanent repair to cargo, painting cost of cargo hold no 2 that has permanent
repair AU$6,500 and damage of AU$5,000 has been caused due to cargo of chilis on
board. Thereby all these factors or terms has been considered by the Salvage arbitration
while deciding the reward need to be given to tug Iced coffee (Mercer, 2017).
Therefore it can be stated that all terms considered by Salvage arbitration has helped in
setting appropriate reward that should be given to Tug Iced coffee in order to take steps to
protect the ship or minimize the associated loss.
B) Discuss whether the tug Iced tea will be entitled to any compensation for services it rendered
From the case study it can be interpreted that M/V Prayut ran aground near Singapore
territorial waters so the master made urgent phone call to MTAS for help and aware about the
incident. So it told that it will be touch with HUT to arrange a tug to re- float the M/V Prayut ran
aground but within a hour Tug iced tea has cam instead of tug iced coffee in order to help the
ship. The master has asked to carry out the operations thus Tug iced tea has sent one of its
professional diver to survey the extend to which damage has been caused to M/V Prayut. So, as
per all these informations the organization is entitled to some amount of compensation as it has
rendered different services to ship so that it can re float. Likewise, it has make certain efforts to
save the M/V Prayut that has gone aground while tug iced coffee has come to delivered its
services. In addition to this it was just mistake of master as it has not check whether the Tug is of
them or not that has resulted tug iced tea to continue its process in order to help the ship that has
being a ground (Butakova and Ivanova, 2019). Along with it there are several other reason that
clarify that some amount of compensations needs to be provided to the tug iced tea such as it is
the liability of salvage is to protect environment for damage. The services that has been given by

salvor is voluntary as there were no contract and obligation between the two parties. The Tug
iced has itself delivered services to ship so that it can be saved from being caused too much harm
or loss. It has also been understood that the iced tug coffee has come late that has lead in loss of
chill that are valued AU$5,000. Furthermore, the iced tug coffer while conducting inspection
related to damage and loss caused to ship has understood that a small hole has been made that
caused sea water come into the cargo hold no 2. Thereby causing a lot of damage to the ship as
water has come inside and all material get destroyed (Abrahamson, 2020).
Furthermore, it can be stated that the tug iced tea has taken all necessary steps related to
protecting and preventing the ship so that less amount of harm can be caused to people. So it has
made reasonable efforts in order to prevent environment damages, protect ship from any type of
loss etc. Thereby for carrying out the all activities related to protecting the ship or helping it out
to re float has states that it need to be provided compensation for its efforts. Moreover, the
operations related to saving the ship has been done by Tug iced tea without any further delay that
lead in reducing the amount of loss cause (Antonov, 2020). Thereby for performing its duties
responsibly and accountability clearly specified that it should be provided compensation or
reward. As the professional of Tug iced tea has timely taken steps to measure or evaluate actual
loss, harm and measure that can be used to refloat the M/V Prayut. So, it can be stated that
compensation must be provided to the Iced tea for its great efforts and support to the ship.
QUESTION -3
To explain when or in what circumstances freight forwarder become agent for shipper or acts as
a principal
Freight forwarder is person that contact with the carrier to carry the good and services
through arranging a cargo so that it can be reach at destination place and needs of customers can
be fulfilled. Thus, it contributes in transport of material from one place to another so that
resources can be equally distributed and provided to the customers. Likewise the freight
forwarder is an agent or principle contractor it generally depends on facts of each case. Bill of
landing is one of the document that has been mainly issued by freight forwarder that not
necessary means that freight forwarder is an carrier (Lamont-Black, 2019). While the forwarder
when issuing bill of lading and the ocean bill of landing has been issued by ocean carrier then it
acts as agent because there has been contract between the shipper and the freight forwarder.

Furthermore it can be stated that the freight forwarder mainly acts as agent to the shipper
as it perform intermediary between the different carriers and owner of the goods. On the other
hand, there are some of the cases in which the forwarder assume itself as role of principle
contractor as it only acts as a mean of transportation. Therefore, it can be interpreted that the
fright forwarder acts as principle or agent it generally depends upon specific situation and
particular transaction. So it is assumed that as per its roles as agent or principle it right and
liabilities to different parties involved in the transaction are defined. The element or key points
that helps in understanding that whether the Freight forwarder is agent or principle are that agent
of shipper has limited liability as it enter into the contract through making use of name of shipper
rather than its own name (Wang, Liu and Zhang, 2020). Thus, it is mainly responsible for
making the arrangement pertaining to transportation services, coordinating several activities and
sub carriers so that good can be easily transported to other place. In another words, it can be
stated that the liability of freight forward acting as a agent is about nil as the goods are not
shipped in its own name. But it may be liable to exercise reasonable prudence, abide to all
shippers instruction and effectively selecting sub-carriers through making the best use of
skills. Moreover, to safeguard the interest of shipper and follow all term and conditions to
avoid chance of mistake to much extend (Sara, 2021).
On the contrary not it can be stated that when the freight forward is acting as capacity of
principle contractor that it make sub contract with sub-carriers in its own name. Thus it does not
have direct contractual relationship with any of sub-carriers or control over its selection thereby
it has to undertake all accountability and responsibility related to ship. In addition to this, it also
becomes liable to several other liabilities in case any type of loss or damage has been caused to
good that has been shipped. Thereby, maximum benefits are provided to the shipper and more
obligation has been on forwarder thus it must needs to provide good and services to other in
similar condition. Likewise in the case of in the case of “Melnick in Nabob Food Ltd. v. Harry
W. Hamacher Spediteur GmbH &Co” The freight forwarder has acts as principle thus
responsible for shipping the good in appropriate manner. Similarly, in the case of Hong Kong
case named Vastfame Camera Ltd v Birkart Globistics Ltd (2005, High Court of Hong Kong
Stone J, 5 October 2005 (Freight forwarder: Agent or principal contractor? 2020). It is cause that
involve mis- release of shrek camera that are made in china and are exported to destination
France, le havre. Thus Vastfame Camera Limited has made contract with HPI France and French

buyer in order to sell 55000 camera at US$143,815.00. Birkart Globistics Limited has been
arranged by the claimant and it has been given to the buyer without any surrender bill.
Moreover, the owner of cargo has never been paid and has been defendant against the freight
forwarder. So, overall the study has helped in understanding that agent is not carrier and also
absolute discretion refuse to other to delivered services to any person. Agent is forwarding agent
that is mainly responsible for acting as a agent in arranging the transportation of goods across
sea. Thereby the final judgement that has been made in the case law is that Birkart Globistics
needs to be paid its full invoice value and Moiroud has been mainly responsible for mis-realease
thus it is completely liable to compensate Birkart Globistics in full.
CONCLUSION
From the above report it can be concluded that there are shipping company with
advancement in technological can legally smooth its autonomous ship as per the United Nations
Convention on the Law of the Sea 1982. Moreover, it has been find out that M/V Prayut is case
in which the ship has been aground as a resulted tug iced tea has kept to protect the same while
tug iced coffee has come late to make all process to refloat. So it iced tea need to be provided
certain amount of compensation for playing active role in saving the ship. At last, it can be
summarized that freight forwarder acts as agent as well as principle in different cases.

REFERENCES
Books and journals
Abrahamson, B., 2020. International supply chains: The challenges of conducting business
abroad.
Antonov, А. А., 2020. Digitization of processes of sea freight transportation.
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Butakova, N. A. and Ivanova, T. N., 2019, December. Salvage at Sea: International Law
Problems. In Institute of Scientific Communications Conference (pp. 1018-1025).
Springer, Cham.
Choi, T., 2020. Sea Control by Other Means: Norwegian Coast Guard Operations Under
International Maritime Law. Ocean Development & International Law, 51(1). pp.35-
46.
Hill, C. and Kulkarni, Y., 2017. Maritime law. Taylor & Francis.
Karlis, T., 2018. Maritime law issues related to the operation of unmanned autonomous cargo
ships. WMU Journal of Maritime Affairs, 17(1). pp.119-128.
Kragic, P., 2019. European Union and Maritime Law. Int'l. In-House Counsel J., 12. p.1.
Lamont-Black, S., 2019. Freight Forwarders’ House Bills of Lading-Myth, Facts and Hope. NUS
Centre for Maritime Law Working Paper, 19(01).
Mercer, K., 2017. Maritime Law: Sovereignty in the Arctic. UNBLJ, 68. p.365.
Mudrić, M., 2020. Standard salvage contract forms: The scope of best endeavours–
reasonableness and foreseeability. MarIus, no. 424. 2013, p.475.
Sara, R., 2021. Transportation of Goods Responsibility in Sea Transportation Based on Law
Number 17 Of 2008 Concerning Shipping.
Tamunodiepiriye, W., 2019. Maritime Law. Danubius Working Papers, 1(1).
Wang, J., Liu, J. and Zhang, X., 2020. Service purchasing and market-entry problems in a
shipping supply chain. Transportation Research Part E: Logistics and Transportation
Review, 136. p.101895.
Online
Freight forwarder: Agent or principal contractor? 2020. [Online] Available
Through :<https://info.hktdc.com/shippers/vol29_3/vol29_3_legalframework.htm>.
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