{"id":94558,"date":"2025-01-09T13:21:08","date_gmt":"2025-01-09T13:21:08","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=94558"},"modified":"2025-09-02T08:24:28","modified_gmt":"2025-09-02T08:24:28","slug":"marshall-islands-shipping","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/marshall-islands-shipping\/","title":{"rendered":"Marshall Islands: Shipping"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-94558","comparative_guide","type-comparative_guide","status-publish","hentry","guides-shipping","jurisdictions-marshall-islands"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Seward &amp; Kissel LLP<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/12\/SK-Logo-Burgundy.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Seward &amp; Kissel LLP<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/12\/SK-Logo-Burgundy.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Shipping laws and regulations applicable in Marshall Islands<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What system of port state control applies in your jurisdiction? What are their powers?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In general, as the Marshall Islands is not a major hub of commercial shipping activity, the jurisdiction is better known for the responsible exercise of its authority as a flag state.<\/p>\n<p>That said, under the Ports of Entry Act, the Secretary of Transportation and Communications has the authority and responsibility for the conduct of inspections and port state control operations, including enforcing applicable international conventions to which the Marshall Islands is a party, e.g.,\u00a0 the International Convention for the Safety of Life at Sea (SOLAS), the International Convention for the Prevention of Pollution from Ships (MARPOL), and the International Ship &amp; Port Facility Security (ISPS) Code.\u00a0 Vessels generally must enter and obtain clearance from an official port of entry as enumerated in that Act.<\/p>\n<p>Under the Ports of Entry Act, all vessels on entry, departure, or at any other time as deemed necessary by the Secretary of Transportation and Communications, are subject to inspections and port State control operations including: the boarding and inspection of vessels to determine the validity of required international convention certificates and other required documents; to assess the overall condition of the vessel, its equipment, and its crew; to verify the condition of the vessel and its equipment comply with international requirements; to verify that the vessel is manned in accordance with international requirements; to identify and make note of any deficiencies in the condition of the vessel, its equipment, or its crew; and to apply appropriate control action and\/or corrective measures as necessary.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any applicable international conventions covering wreck removal or pollution? If not what laws apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>With respect to wreck removal, the Marshall Islands has adopted the Nairobi International Convention on the Removal of Wrecks (Wreck Removal Convention) 2007.<\/p>\n<p>With respect to pollution, currently, the Marshall Islands is a signatory to the following international conventions:\u00a0 (1) International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1978 (MARPOL 73\/78 and amendments, i.e., Annexes I, II, III, IV, V and VI, wherein the provisions of Regulation 13 are retroactive to 01 January 2000; (2) the 1996 Protocol to the Convention for the Prevention of Marine Pollution by Dumping of Wastes and Other Matter, 1972 (LC PROT 1996); (3) the International Convention Relating to Intervention on the High Seas in Cases of Oil Pollution Casualties, 1969 (INTERVENTION 1969); (4) the Protocol Relating to Intervention on the High Seas in Cases of Pollution by Substances Other than Oil, 1973, as amended (INTERVENTION PROT 1973); (5) the Protocol of 1976 to the International Convention on Civil Liability for Oil Pollution Damage, 1969 (CLC PROT 1976); (6) the Protocol of 1992 to amend the International Convention on Civil Liability for Oil Pollution Damage, 1969 (CLC PROT 1992); (7) the Protocol to the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1971 (FUND PROT 1976); (8) the Protocol of 1992 to Amend the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, (FUND PROT 92); (9) the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 (BUNKERS 2001); (10) the International Convention on the Control of Harmful Anti-Fouling Systems on Ships, 2001 (AFS 2001); and (11) International Convention for the Control and Management of Ships\u2019 Ballast Water and Sediments, 2004 (BWM 2004).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the limit on sulphur content of fuel oil used in your territorial waters? Is there a MARPOL Emission Control Area in force?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As noted above, the Marshall Islands is a signatory to Annex VI of MARPOL.\u00a0\u00a0 Annex VI of MARPOL includes a global cap on the sulphur content of fuel oil and, as of January 1, 2020, the limits were amended reducing the sulphur content of fuel used on most commercial ships to 0.5% mass by mass (m\/m), down from the previous limit of 3.5% m\/m.\u00a0 As of March 1, 2020, the carriage of fuel oil for use on board ships was also prohibited if the sulphur content exceeds 0.50% unless the ship is fitted with an equivalent alternative (e.g., scrubbers) to meet the sulphur limit.<\/p>\n<p>There is not a MARPOL Emission Control Area in force.\u00a0 The IMO has currently designated four ECAs including specified portions of the Baltic Sea area, North Sea area, North American area and United States Caribbean area.\u00a0 Amendments to MARPOL Annex VI made in December 2022 reflect that a fifth area \u2013 the Mediterranean Sea \u2013became an ECA on May 1, 2024, with limits to take effect starting May 1, 2025.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any applicable international conventions covering collision and salvage? If not what laws apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Marshall Islands has adopted the Convention on the International Regulations for Preventing Collisions at Sea, 1972 as amended, (COLREG 1972).\u00a0 With respect to salvage, the Marshall Islands has adopted the International Convention on Salvage, 1989.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is your country party to the 1976 Convention on Limitation of Liability for Maritime Claims? If not, is there equivalent domestic legislation that applies? Who can rely on such limitation of liability provisions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Marshall Islands is a party to the Convention on Limitation of Liability for Maritime Claims 1976 (the LLMC Convention 1976) and the 1996 Protocol to the Limitation Convention.\u00a0 The RMI also adopted the LLMC Convention 1976 as Chapter 5 of the Maritime Act.\u00a0 Pursuant to Chapter 5, \u201cshipowners\u201d (including owners, charterers, managers and operators) and salvors are entitled to limit their liability in respect of certain claims in accordance with the rules set forth in the legislation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If cargo arrives delayed, lost or damaged, what can the receiver do to secure their claim? Is your country party to the 1952 Arrest Convention? If your country has ratified the 1999 Convention, will that be applied, or does that depend upon the 1999 Convention coming into force? If your country does not apply any Convention, (and\/or if your country allows ships to be detained other than by formal arrest) what rules apply to permit the detention of a ship, and what limits are there on the right to arrest or detain (for example, must there be a \u201cmaritime claim\u201d, and, if so, how is that defined)? Is it possible to arrest in order to obtain security for a claim to be pursued in another jurisdiction or in arbitration?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Marshall Islands is not a signatory to international conventions with respect to ship arrest. In the Marshall Islands, actions involving ship arrests are governed under the substantive law of the Republic and the Marshall Islands Rules of Civil Procedure (the \u201cMIRCP\u201d).\u00a0 All causes of action arising under the Maritime Act fall within the jurisdiction of the High Court of the Marshall Islands, sitting in Admiralty.\u00a0 And under Section 113 of the Maritime Act, the Marshall Islands has adopted the non-statutory general maritime law of the United States of America as the general maritime law of the Republic.\u00a0 Accordingly, US admiralty law will govern many questions in the absence of a statute on point.<\/p>\n<p>Maritime lien creditors and those with statutory rights may enforce their rights <em>in rem<\/em> against a vessel. Such arrested vessels are governed under the MIRCP by Rule C of the Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture Actions (the \u201cSupplemental Rules\u201d), which provides that a vessel may be arrested to enforce any maritime lien or where a statute provides for in rem proceedings.<\/p>\n<p>There is no associated or sister ship arrest regime under U.S. general maritime law. \u00a0However, property of the defendant may be attached under Rule B of the Supplemental Rules and, where the defendant owns a vessel and if the requirements of Rule B are met, that vessel may be seized.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">For an arrest, are there any special or notable procedural requirements, such as the provision of a PDF or original power of attorney to authorise you to act?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The MIRCP is parallel in many respects to the US Federal Rules of Civil Procedure, including the adoption of Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture actions.\u00a0 Accordingly, in a Rule B action, seeking <em>in personam<\/em> attachment or garnishment \u2013 which may include vessel seizures \u2013 the Court requires a verified complaint by the plaintiff setting forth a prima facie valid admiralty claim at the time of the filing of the Complaint, and an accompanying affidavit signed by the plaintiff or the plaintiff\u2019s attorney stating that, to the affiant\u2019s knowledge, or on information and belief, the defendant cannot be found within the Republic.<\/p>\n<p>In a Rule C <em>in rem<\/em> arrest action, the Court likewise requires a verified complaint that describes with reasonable particularity the property that is the subject of the action; and that the property is within the Republic or will be within the Republic while the action is pending.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What maritime liens \/ maritime privileges are recognised in your jurisdiction? Is recognition a matter for the law of the forum, the law of the place where the obligation was incurred, the law of the flag of the vessel, or another system of law?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Maritime liens are recognized under the Marshall Islands Maritime Act, to recover damages arising from (1) maritime tort, (2) crew wage claims, (3) contract claims, including for breach of a charterparty, claims for cargo loss or damage, or unpaid freight and demurrage, (4) general average, (5) salvage, (6) unpaid tonnage taxes, fees, penalties and other charges arising under Marshall Islands Maritime Act or its implementing regulations and (7) the supply of necessaries.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it a requirement that the owner or demise charterer of the vessel be liable in personam? Or can a vessel be arrested in respect of debts incurred by, say, a charterer who has bought but not paid for bunkers or other necessaries?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no requirement of\u00a0<em>in personam<\/em>\u00a0owner or demise charter liability in order for a vessel to be arrested. Under Section 319 of the Maritime Act, vessel arrests may proceed\u00a0<em>in rem<\/em>\u00a0against the vessel so long as necessaries are supplied on the order of the owner or a person authorized by the owner. Under the statute, charterers are generally presumed to have authority to procure necessaries for the vessel and suppliers of necessaries are also generally presumed to rely on the credit of the vessel unless they have notice of or by the exercise of reasonable diligence could have ascertained, the presence of a \u201cno lien\u201d clause in the charter. \u00a0Notably, a vessel owner has a potential defence under Section 319(3) of the Marshall Islands\u2019 Maritime Act, which provides that no lien will arise \u201cwhen the furnisher knew, or by exercise of reasonable diligence could have ascertained, that because of the terms of a charter party, agreement for sale of the vessel, or for any other reason, the person ordering necessaries was without authority to bind the vessel therefor.\u201d Unlike in the analogous U.S. statute, which was amended in 1971 to eliminate any duty of inquiry imposed on suppliers to examine charter parties for \u201cno lien\u201d clauses, owners may argue under Marshall Islands law that a necessaries supplier could have ascertained by due diligence that the charterer was not authorized to bind the vessel to a lien.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are sister ship or associated ship arrests possible?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>\u201cSister ship\u201d or associated ship arrests are not a valid ground upon which to commence an\u00a0<em>in rem<\/em>\u00a0arrest action, but maritime attachment is available under Rule B where a plaintiff has a maritime claim (not necessarily a lien claim) and such plaintiff can attach property of the defendant, provided that the defendant is not found within the Republic where the property is located for jurisdictional and service of process purposes. Some parties may seek to \u201cpierce the corporate veil\u201d in arrest proceedings to reach associated vessels.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does the arresting party need to put up counter-security as the price of an arrest? In what circumstances will the arrestor be liable for damages if the arrest is set aside?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The circumstances under which security or counter-security may be required are governed by Rule E of the Supplemental Rules and in the discretion of the Court. Unless otherwise ordered by the court, no security is required in connection with the issuance and execution of process to arrest a vessel. This includes the possibility of a counter-security award should a counterclaim be asserted in the arrest or attachment proceeding under Rule E(7). In all events, expenses in connection with seizing and keeping property, or of any substitute custodian appointed, must also be covered and frequently are paid in advance at the time of the arrest.<\/p>\n<p>A claim for wrongful arrest requires a showing of no\u00a0<em>bona fide<\/em>\u00a0claim and of bad faith, malice, or gross negligence on the part of the arresting party.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How can an owner secure the release of the vessel? For example, is a Club LOU acceptable security for the claim?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The procedure to secure the release of a vessel is set out under Rule E(5) and permits the parties to stipulate to \u201cthe amount and nature of such security\u201d by way of a special or general bond conditioned to answer the judgment of the court or of any appellate court. Accordingly, a Club LOU or other third-party surety bond may be acceptable, if the parties can agree. In the absence of agreement, the court may fix the principal sum of the bond at an amount sufficient to cover the plaintiff\u2019s claim fairly stated with accrued interest and costs, up to a maximum of the smaller of twice the amount of the plaintiff\u2019s claim, or its value upon due appraisement, with interest thereon at 6 per cent per annum. Motions to reduce or enhance the amount of security may subsequently be made for good cause shown under Rule E(6). The release of a vessel is likewise conditioned on the payment of all costs and charges of the court and custodian of the property.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Describe the procedure for the judicial sale of arrested ships. What is the priority ranking of claims?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>It should be noted that very few foreclosures of commercial vessels have taken place in the Marshall Islands. The Maritime Act confers jurisdiction on the High Court of the Marshall Islands with respect to foreclosures of mortgages. And, in accordance with the Admiralty Jurisdiction Act, when the Court determines an arrested vessel is subject to speedy decay, the Court may, on an application made by the Chief of Revenue of the Marshall Islands, direct that the vessel be sold and the proceeds deposited in court, pending the determination of the action.<\/p>\n<p>In the event of a judicial sale, any party to an action or the custodian of the vessel may apply for sale of the vessel. It is usually the mortgagee bank or the single largest creditor that would move to have the vessel sold.\u00a0 And under Rule E(9), a court is expressly authorized to order a sale if: (A) the attached or arrested property is perishable, or liable to deterioration, decay, or injury by being detained in custody pending the action; (B) the expense of keeping the property is excessive or disproportionate; or (C) there is an unreasonable delay in securing release of the property.<\/p>\n<p>With respect to the rank and priority of claims, although it may vary from jurisdiction to jurisdiction, the general order of priority under the general maritime law is as follows:<\/p>\n<ul style=\"padding-left: 0\">\n<li>Expenses, fees and costs allowed by the court, including those incurred while the vessel is in custody;<\/li>\n<li>wages of the vessel crew;<\/li>\n<li>maritime liens arising before a preferred mortgage was filed;<\/li>\n<li>maritime tort liens;<\/li>\n<li>salvage and general average claims;<\/li>\n<li>preferred mortgage liens on U.S.-flagged vessels;<\/li>\n<li>liens for necessaries;<\/li>\n<li>preferred mortgage liens on foreign-flagged vessels;<\/li>\n<li>general maritime contract liens;<\/li>\n<li>claims on non-maritime liens; and<\/li>\n<li>non-lien maritime claims.<\/li>\n<\/ul>\n<p>Where liens accrue at different times, the rule under the general maritime law is that liens that arrive last in time take precedence. In practice, in distressed situations, any claimant coming after the mortgagee is unlikely to recover.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Who is liable under a bill of lading? How is \u201cthe carrier\u201d identified? Or is that not a relevant question?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Chapter 4, Part I of the Marshall Islands Maritime Act sets forth the Carriage by Sea Act, which governs contracts for carriage of goods by sea.\u00a0 Section 404 thereof sets for the responsibilities and liabilities of the carrier, which is defined to include \u201cthe owner or the charterer who enters into a contract of carriage with a shipper.\u201d<\/p>\n<p>Importantly, the Carriage by Sea Act in the Marshall Islands is only applicable to goods carried on Marshall Islands vessels in foreign trade or on other vessels to or from ports of the Marshall Islands in foreign trade. Section 402(f) of the Maritime Act defines &#8216;foreign trade&#8217; as the transportation of goods between the Marshall Islands and foreign countries or between foreign countries. Therefore, as a practical matter it is principally relevant with respect to Marshall Islands-flagged vessels in international commerce.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the proper law of the bill of lading relevant? If so, how is it determined?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Contracts for carriage of goods by sea must be construed like any other contracts: by their terms and consistent with the intent of the parties. As such, where parties clearly specify in their contractual agreement which law will apply, admiralty courts will generally give effect to that choice.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are jurisdiction clauses recognised and enforced?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Non-exclusive jurisdiction clauses are valid and binding and do not contravene Marshall Islands law if they are properly incorporated into the bill of lading.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the attitude of your courts to the incorporation of a charterparty, specifically: is an arbitration clause in the charter given effect in the bill of lading context?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the general maritime law, the terms of a charter party can be incorporated into a bill of lading, provided it is clearly done on the face of the bill of lading.\u00a0 Foreign forum selection clauses and foreign arbitration clauses found in incorporated charter parties are enforced if the charter party is properly incorporated in the bill of lading. To enforce an arbitration clause against a third-party holder, a bill of lading should specifically identify the charter party and clearly incorporate the arbitration clause.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is your country party to any of the international conventions concerning bills of lading (the Hague Rules, Hamburg Rules etc)? If so, which one, and how has it been adopted \u2013 by ratification, accession, or in some other manner? If not, how are such issues covered in your legal system?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Marshall Islands has not adopted either the UN Convention on the Carriage of Goods by Sea 1978 (the Hamburg Rules) or the UN Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea 2009 (the Rotterdam Rules).<\/p>\n<p>The Marshall Islands applies a version of the Hague Rules through the Carriage by Sea Act, which parallels US COGSA.\u00a0 This provides a reasonable and predictable cargo loss and damage liability regime.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is your country party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards? If not, what rules apply? What are the available grounds to resist enforcement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Republic of the Marshall Islands is a party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the \u201cNew York Convention\u201d).\u00a0 Only the limited enumerated exceptions or defences set forth in Article V of the New York Convention may be available grounds to resist enforcement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please summarise the relevant time limits for commencing suit in your jurisdiction (e.g. claims in contract or in tort, personal injury and other passenger claims, cargo claims, salvage and collision claims, product liability claims).<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Statutes apply to limit actions on many types of maritime claims. Under the Carriage by Sea Act, in parallel to the U.S. COGSA statute, there is a one-year limitations period for cargo claims.\u00a0 Maritime Act \u00a7 404(6).\u00a0 Actions for indemnity against a third person may be brought beyond this period, if brought within the period for claims sounding in contract, and within three months commencing from the day when the person bringing such action has settled the claim or has been served with process in the action against himself.\u00a0 Maritime Act \u00a7 404(7); <em>see also <\/em>Civil Procedures Act \u00a7 120 (six-year general limitation period). Salvage claims are governed by a two-year statute of limitations, unless there has not been \u201creasonable opportunity for securing jurisdiction of the vessel, person or corporation to be charged,\u201d in which case there is a ninety-day period to bring a claim after there has been a reasonable opportunity to secure jurisdiction.\u00a0 Maritime Act \u00a7 707.\u00a0 Under the Merchant Seafarer\u2019s Act, suits arising from the Shipping Articles are subject to a one-year time bar, suits for damages for personal injury or death arising out of a maritime tort must be commenced within two years after the cause of action arose, and a catchall provides for a three-year time bar against \u201call other claims\u201d measured from the date that the right of action accrues. Maritime Act \u00a7 862.\u00a0 With respect to passenger claims, actions for damages arising out of the death of or personal injury to a passenger or for the loss of or damage to luggage shall be time-barred after a period of two years, with a statute of repose of three years from the date of disembarkation, unless extended by written declaration of the carrier or agreement of the parties.\u00a0 Maritime Act \u00a7 435.<\/p>\n<p>Where no statute applies, the General Maritime Law provides that suits for enforcement of a maritime lien or other maritime claim are typically governed by the equitable doctrine of laches. Under this doctrine, courts will ask whether there has been \u201cinexcusable delay\u201d and resulting prejudice to the party against whom the claim is brought. In making this determination, a court sitting in admiralty will often use analogous local limitation statutes as a rule-of-thumb. If outside of the analogous limitations period, the burden will fall on plaintiff to show that laches does not apply. If within an analogous limitations period, a presumption of laches would not attach and the burden of showing inexcusable delay would fall on the defendant.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your system of law recognize force majeure, or grant relief from undue hardship?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As a general matter, force majeure as a concept negotiated in a contract should be recognized under Marshall Islands law, and any right of relief or claim protection will depend on the terms of the contract negotiated and governing law of the contract.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">3774<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/94558","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=94558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}