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RULES OF YORK-ANTWERP: RULE VII -RULE IX.

Updated: Aug 16

Rules of York-Antwerp: Rule VII – Rule IX

RULE VII


DAMAGE TO MACHINERY AND BOILERS


Damage caused to any machinery and boilers of a ship which is ashore and in a position of peril, in endeavouring to refloat, shall be allowed in general average when shown to have arisen from an actual intention to float the ship for the common safety at the risk of such damage; but where a ship is afloat no loss or damage caused by working the propelling machinery and boilers shall in any circumstances be made good as general average.


Rule VII had its origin in the year 1890. It was originated when the British Association of Average Adjusters had passed the Rule of Practice. The following text was introduced which was also approved by the Liverpool Conference—


Damage to Engines in refloating a ship


Damage caused to machinery and boilers of a ship which is ashore and in a position of peril, in endeavouring to refloat, shall be allowed in general average when shown to have arisen from an actual intention to float the ship for the common safety at the risk of such damage.”


Though, it was proposed at the Stockholm Conference of 1924 to widen the scope of this rule if any sort of damage has happened to the ship which was brought by working the boilers or machinery to refloat a ship; the ship which was ashore and which was in the position of peril must be allowed in general average provided that such a damage or loss must be allowed when the cargo or the ship was afloat. But at the end of 1890, an amendment took place by adding the following—


“….but where a ship is afloat no loss or damage caused by working the machinery and boilers shall be made good as the general average”


At the Amsterdam Conference of 1949 further amendments had taken place—


1. The title from the “Damage to Engines in refloating a ship” was amended to be “Damage to Machinery and Boilers”.

2. The second part of the rule was expanded to—

“….but where a ship is afloat no loss or damage caused by working the machinery and boilers, including loss or damage due to the compounding of engines or such measures, shall in any circumstances be made good as the general average”


Though, the term “including loss or damage due to compounding of engines or such measures” was deleted;as by the year 1974, it was realized that this is a form of measure which is not very often resorted to and was applied to only the steam-driven engines which were at that time likely to become obsolete.


Certain changes were made at the Hamburg Conference of 1974—


1. The wordings “Damage caused to machinery” was changed to “Damage caused to any machinery…”.

2. The exclusion for the damage or loss where the ship was afloat was confined to “by working the propelling machinery and boilers”.

Though, no proposal for the amendment of the rule was made in the year 1994.

The grounding of the ship is not that places it in the position of peril. Various ships were constructed so that it may lie safely at the bottom provided that it should be even and flat and also clear of obstruction. Whereas various modern built vessels were constructed to quite close tolerances.


A considerable difference of opinions existed between the delegates of the Stockholm Conference. The views of some delegates were when the damage or loss was caused to the engine of the vessel by being strained in an attempt for avoiding running ashore. It must be treated as a general average.


RULE VIII


EXPENSES LIGHTENING A SHIP WHEN ASHORE, AND CONSEQUENT DAMAGE


When a ship is ashore and cargo and ship’s fuel and stores or any of them are discharged as a general average act, the extra cost of lightning, lighter hire and reshipping (if incurred), and any loss or damage to the property involved in the common maritime adventure in consequence thereof, shall be admitted as general average.


Rule VIII was for the first time introduced in the year 1890. The text at that time was as follows—


“When a ship is ashore and, in order to float her, cargo, bunker coals and ship’s stores, or any of them are discharged, the extra cost of lightning, lighter hire and re-shipping (if incurred), and the loss or damage sustained thereby, shall be admitted as general average.”


The 1890 text was unable to contain the reference as to the requirement as to that the ship must be in peril. Also, it was unable to refer to the requirement that discharge must be for the purpose of common safety. The draft prepared for the Stockholm Conference of 1924 referred to both these requirements present for justifying the discharging cost’s allowance in general average. Though as per Rudolph several delegates to the Stockholm Conference of 1924 preferred the earlier rule on the grounds that if the vessel was aground then there should be no discouragement to be put in the way of the master; relieving her from situations as expeditiously as possible.


Though, no changes in the rule had taken place in the year 1950 or 1974. However, in 1994 the words “the loss or damage sustained thereby” were replaced by the words “any loss or damage to the property involved in the common maritime adventure in consequence thereof”. The amendment was brought with the aim to prevent any the potential claims for the liability to the third parties, especially for the pollution damages, which may arise in terms of reshipping or discharge of cargo or fuel or stores being admitted under this rule.


Discharging of cargo from the stranded vessel considered as a hazardous operation. Any sort of damage or loss occurring to the property being involved in the maritime adventure which could have been reasonably foreseen or flows as the direct consequence of one of the hazards is admitted in the general average.


After the amendment of 1994, the damages or the losses admitted in the terms of Rule VIII was limited to the extent which is suffered by the property which is considered within the community of interest.


RULE IX


CARGO, SHIP’S MATERIALS AND STORES USED FOR FUEL


“Cargo, ship’s materials and stores, or any of them, necessarily used for fuel for the common safety at a time of peril shall be admitted as general average, but when such an allowance is made for the cost of ship’s materials and stores the general average shall be credited with the estimated cost of the fuel which would otherwise have been consumed in prosecuting the intended voyage.”


Rule IX was evolved in the year 1890. In the year 1890, the text was in the following manner-


“Cargo, ship’s materials and stores burnt for fuel


Cargo, ship’s materials and stores, or any of them, necessarily burnt for fuel for the common safety at a time of peril, shall be admitted as general average, when and only when an ample supply of fuel had been provided; but the estimated quantity of coals that would have been consumed, calculated at the price current at the ship’s last port of departure at the date of her leaving shall be charged to the shipowner and credited to the general average.”


In the year 1924, the term cargo was deleted from the heading as well as text. Whereas, the term ‘coal’was substituted with the term ‘fuel’. Thus, the changed rule was—


“Ship’s materials and stores burnt for fuel


Ship’s materials and stores, or any of them, necessarily burnt for fuel for the common safety at a time of peril, shall be admitted as general average, when and only when an ample supply of fuel had been provided; but the estimated quantity of fuel that would have been consumed, calculated at the price current at the ship’s last port of departure at the date of her leaving, shall be credited to the general average.”


Though no changes had taken place in the above-mentioned rule at the 1949 Conference as well as at the 1974 Conference. The omission taken place between 1924 and 1994 in reference to the cargo burnt for fuel may depict the intention of removing it from the ambit of general average but in reality, this was not the case.

In 1993 two proposals were put before the CMI International Sub-Committee. These proposals were prepared independently by the United States Maritime Law Associations and by the British Maritime Law Association which introduced cargo for fuel.


The United States Maritime Law Associations proposal was read out as—


“Cargo, ship’s materials and stores used for fuel


Cargo, ship’s materials and stores, or any of them, necessarily used for fuel for the common safety at a time of peril shall be made good as general average, but such an allowance may be made for the cost of ship’s materials and stores when and only when an ample supply of fuel had been provided. The general average shall be credited with the value of the estimated quantity of fuel which would otherwise have been consumed in prosecuting the voyage.


Whereas the British Maritime Law Associations proposal was read out as—


“Cargo, ship’s materials and stores used for fuel


Cargo, ship’s materials and stores, or any of them, necessarily used for fuel for the common safety at a time of peril shall be made good as general average and the general average shall not be credited with the estimated quantity of fuel which would otherwise have been consumed


The drafting committee was invited for these proposals for the purpose of submitting a joint text. Though, it was declined on the basis that there exists a difference of substance between both the texts.


Though, the 1994 texts omitted the provision which was earlier mentioned in the 1890 rule. As per the 1890 rule the allowances which are to be made for ship’s materials, cargo and the stores burnt for fuel “when and only when an ample supply of fuel had been provided.” The purpose of this provision was to avoid the claims which may arise due to the fault of the carrier for failing to provide sufficient bunkers for voyage where the vessel was engaged and that too at the time when a deficiency of fuel had become manifest.


The 1994 reforms had recognized that many ships require oil engines and there will be few cases only where cargo might be required for fuel; as a result of the expression“used for fuel” was used. The 1994 rule is the only rule where the expression “for the common safety” is used along with the expression “at a time of peril”.


The ship’s material used for fuel is considered as the property of the shipowner. The shipowner is considered responsible in respect to fuel for the voyage. The rule does not provide as to whom the amount which is credited in general average is to be charged.



Author: Navin Kumar Jaggi

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