What may be reimbursable as a “quarantine fee” is generally defined in the rules of some clubs (“. Costs and expenses, with the exception of the operating costs and expenses of the ship” (Gard)) and more particularly in the others (see Regulation 25 XII of the steamship). Ultimately, regardless of how they are expressed, they are likely to cover similar risks – with one exception, which is mentioned below. The same questions could be asked with regard to the Britannia, JPIA and Sweden rules, which require an outbreak of an infectious disease, but not necessarily “on” ships. So far, 10 of the 13 IG clubs have published FAQs detailing in more or less detail what falls under and not quarantine rules. In most areas, clubs are highly coordinated: the table below compares the differences in approach between clubs – both in terms of advice and the construction of their quarantine rules. The quarantine rules of most clubs include a number of elements: Until recently, these quarantine rules received little attention because they were rarely tested. However, the current pandemic has put them in the spotlight and revealed some design differences, prompting owners to question whether coverage might vary from one International Group (IG) P&I club to another. (S) . liabilities, losses, costs and expenses arising from the use of an electronic trading system other than an electronic trading system approved in writing by the Association, to the extent that such liabilities, losses, costs and expenses would not have been incurred under a paper-based trading system (unless the Association decides otherwise in its sole discretion). For the purposes of this subparagraph (j), “electronic commerce system” means any system that replaces or is intended to replace paper documents used for the sale of goods and/or their carriage by sea and/or partly by sea and other means of transport enabling the holder to supply or hold the goods referred to in such documents: or iii prove a contract of carriage under which the rights and obligations of one of the parties to the contract may be transferred to a third party.
For the purposes of this subparagraph (j), the term “document” means any information of any kind, including, but not limited to, computerized information or other electronically generated information (Rule 63.1(j)). At present, there are no international conventions governing the rights and obligations of parties using an electronic commerce system. Therefore, these rights and obligations are governed by the clauses of private contracts concluded between these users. In addition, electronic trading systems may give rise to liabilities, losses, costs and expenses that are not incurred in paper-based trading systems, such as liabilities arising from the malfunction of the electronic system itself or from the fraudulent manipulation of electronic records or unauthorised transfers by third parties. Since most international trade is still based on paper documents governed by international conventions such as the Hague, Hague-Visby and Hamburg Rules, the liabilities, losses, costs and expenses incurred by the majority of shipowners and charterers are those arising exclusively from this trade. Therefore, in the interest of reciprocity, it is important to ensure that members share only the responsibilities, losses, costs and expenses to which membership as a whole is exposed, and not liabilities, losses, etc. arising solely from the use of electronic (i.e. paperless) trading systems. In many cases involving damage to the cargo, the ship is delayed, for example: because there is a delay in unloading while shippers decide what to do with the damaged cargo and how best to mitigate its loss. The loss of time resulting from this delay often results in demurrage and rental claims between owners and charterers and possibly sub-charterers.
P&I coverage is not available for loss of income or loss of time while operating the vessel; It is liability insurance. Although damage and delay to the cargo may result from a breach of a covered contract, for example if the ship is not subject to due diligence to render it seaworthy, this obligation generally applies not only to the carriage of the cargo but also to the use and revenue of the ship. Claims by or against the owner for unpaid cargo, rent or demurrage in respect of the ship are not claims for cargo liability or claims covered by rule 34, even if such claims would not have been made but for the damage to the cargo. These are claims relating to the use and revenues of the vessel. Even if a charterer withholds goods, demurrage or lease because of a cargo claim, perhaps to offset a claim against the other, these are separate claims, and applicable law determines whether the charterer has the right to withhold those funds. The costs of processing the request for recovery of the amount withheld by the Member are covered by Defence Coverage. As a practical solution, the Association may be willing to exercise its discretion to provide security for the cargo claim, in exchange for payment by the charterer of amounts due to the member. j) . Demurrage, detention or delay of the vessel. (Rule 63.1.h) Reference is made to the explanation of Rule 63.1(d). “Detainment” occurs when the ship is not allowed to move or act freely, for example because the charterer or shippers have not presented bills of lading and/or cargo documents after completion of loading, or because local authorities have not issued passenger passports and seaman`s books. The detention may also occur due to technical failures discovered on board during an investigation by port State control or investigators following an accident.
Therefore, depending on the reason for detention, claims for this delay may be made either by or against the member. The club concludes that it doesn`t matter if there has been an outbreak: “Since the ship is quarantined, coverage will apply.” Therefore, Rule 63.1.j confirms that coverage is excluded for liabilities, losses, etc. that would not have arisen but for the use of an electronic trading system, unless the terms of such a system have been approved in writing by the Association21, in which case coverage is available as of right under standard P&I coverage.
