Recently the New York’s Society of Maritime Arbitrators (SMA) hosted a presentation by lawyer Leo Kailas, on Charter Party Agreements: Issues Related to Ebola Epidemic. Ironically, the event- part of the SMA’s luncheon series, occurred only hours after the Dallas, Texas Ebola patient succumbed to the disease.
Unlike some illnesses where it is readily apparent whether an individual is sick, Ebola has a three-week incubation period. In the maritime context, means that quarantines of vessels could bring about lengthy delays.
Kailas, a highly respected maritime attorney, acknowledged that, “Liability for delays to due Ebola is not yet clear, and is fact dependent.” Thus, each case is different. The presentation, based on a group of hypothetical scenarios, provided a look at the relevance of various provisions in existing charter parties.
For example, the Exxonmobil-Voy-2000 tanker charter contract, described as being “charterer friendly” does provide charterers with an option to re-nominate a port as long as a Notice of Readiness has not been tendered. The same document also provides charterers with an extra measure of protection, shifting the onus of liability to shipowners, who are expected to avoid unsafe conditions at ports by “the exercise of reasonable care.”
In a similar vein, the speaker noted that NYPE and Bimco time charter documents talk about safe ports and safe places. Kailas also offered recommended clauses, which remove the ambiguity and deal specifically with issues related to Ebola. The packed room at the venue, a club in midtown New York, underscores the importance of this topic, which will no doubt be giving rise to arbitrations as new situations, not contemplated by authors of widely used chartering documents, unfold and leave owners and charterers searching for practical solutions.
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