Most Read Contributor in South Africa, September 2016
ENS hosts Nautical Institute Command seminar cocktail
ENS Shipping & Logistics department recently sponsored and
hosted at our Cape Town offices the opening networking cocktail
party on the eve of the Nautical Institute's first Command
Seminar in Southern Africa, which was attended by over 100
delegates from the region and further afield.
ENS's Michael Tucker welcomed delegates to Cape Town and
commended the branch organising committee on the relevance of the
programme content. This included a keynote address by the Deputy
Minister of Transport, who spoke about the challenges facing the
South African maritime industry, highlighting the fact that as
South Africa is a regional market for Southern Africa, the
development of a significant transhipment hub and a more effective
logistics network is critical.
During the seminar, ENS's Tony Norton presented an
insightful paper on the challenges of rebuilding the South African
Ships' Register and the legislative reforms necessary to
attract foreign shipowners.
ENS's Kate Pitman interviewed by Lawyer Monthly
Kate Pitman had this to say about the state of the shipping
industry and bankruptcies:
costs of South African security arrest proceedings
recovered on the basis that they are claimable as damages in London
In terms of section 5(3) of the South African Admiralty
Jurisdiction Regulation Act, claimants who are either contemplating
or embroiled in arbitration proceedings elsewhere than in South
Africa may arrest property belonging to the debtor, or an
associated ship, for purposes of obtaining security for an
On instructions of an English solicitor, ENS recently procured
an order for the arrest of a ship for purposes of obtaining
security for contemplated London arbitration proceedings in respect
of a claim for the balance of unpaid hire, as well as for the costs
of the South African security arrest proceedings on the basis that
the costs so incurred in South Africa were claimable as damages in
the arbitration reference.
The order was not challenged and the claims in respect of which
security was sought, including the claim for the costs of the South
African proceedings, were paid in full by the recalcitrant debtor
upon service of the arrest order on the ship.
inter-club New York Produce Exchange Agreement 1996 (as
amended September 2011)
The judgments of the Durban High Court in the matters of the The
Gallant II and The Cargo Explorer have previously precluded
would-be claimants from obtaining security in South Africa for
cargo claims as contemplated in the Inter-Club New York Produce
Exchange Agreement, 1996 (and Inter-Club Agreement 1984) on the
basis that the applicant would not be able to demonstrate that it
had an existing claim or cause of action as required by section
5(3) of the South African Admiralty Jurisdiction Regulation
The September 2011 amendment introduces an entitlement to
acceptable security from the other party to the charter party
regardless of whether a right to apportionment between the parties
to the charter party has arisen under the Agreement. The amendment
gives rise to interesting theoretical and thought-provoking
practical considerations in relation to the obtaining of security
in respect of indemnity claims under South African law.
For advice on the enforcement in South Africa of an order made
by an arbitration tribunal in terms of clause 9 of the ICA and on
the question of whether the September amendment will now permit the
arrest in terms of section 5(3) of the South African Admiralty
Jurisdiction Regulation Act of property belonging to the other
party to the charter party, or an associated ship, please contact
any member of the department.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Attractive new shipping provisions in South Africa’s new Taxation Laws Amendment bill go some way in showing that the government is serious about taking steps to revive South Africa’s rather sleepy international shipping sector.
This paper considers the recent developments in Nigerian Ship
Arrest Law – the Admiralty Jurisdiction Procedure Rules
(AJPR) 2011 for the Federal High Court of Nigeria (FHC), and its
effect on ship arrest practice.
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