The SHIPMAN default regime requires parties to agree on an annual budget and managers must provide a monthly estimate of the vessel`s working capital requirements and request these funds from the owners in advance. However, disputes may arise in the event of unforeseen or unbudgeted expenses. As part of the ship`s technical management, managers are also required to ensure compliance with the ISM code and, therefore, any violation could also expose managers to possible liability. 1 See www.bimco.org/en/Education/Seascapes/Sea_View/The_modern_ship_manager.aspx (last release is June 20, 2012).2 Id. 3 R, Giorgi, Challenges in Ship Management, Presentation at the Capital Link Forum, 2d Annual Invest in International Shipping Conference (March 20, 2008). 4 BIMCO, headquartered in Denmark, is the largest international organization representing shipowners, which control about 65% of the world`s tonnage, and has members in more than 120 countries. Members are stakeholders in the shipping industry, with a wide range of interests, including maritime intermediation, management, accounting and law. BIMCO is also an accredited NGO. 5 A copy of SHIPMAN 2009 can be found on the BIMCO website: www.bimco.org/Chartering/Documents/Ship_Management/SHIPMAN2009.aspx (most recently viewed on June 20, 2012).6 THE immediate predecessor of SHIPMAN 2009 was form SchiffMAN 98. 7 46 U.S.C 31341 (a) (3). See z.C.B Community Bank of LaFourche v.M/V MARY ANN VIZIER, 2012 U.S. Dist.
LEXIS 66842 (E.D. La. May 14, 2012). 10 SHIPMAN 2009, part one, frame 18, part two, para. 21 bis). 11 Id.12 SHIPMAN 2009, Part I, Box, 21, and Part II, Section 5, paragraph 23. 13 SHIPMAN 2009, Part II, Section 5, paragraph 23, item 14.14 See paragraph 5 infra.15 SHIPMAN 2009, Part II, Section 3, Clause 8(a).16 Associated Transport Line, LLC v. Colonial Marine Industries, Marine Inc., SMA No.
3870 (December 17, 2004) (N.Y. Arb., J. Berg, D. Martowski and D.J. Szostak, Arbitrator www.bimco.org/Chartering/Documents/Ship_Management/Withdrawn_Forms/SHIPMAN98/ Explanatory_ Notes_SHIPMAN98.aspx). 19 SHIPMAN 2009, Part II, Section 5, para. 17(b) (i) 20 id.21 Id. The description of the restriction of behaviour is Article IV of the Convention on the Limitation of Responsibility for Maritime Claims, 1976.22 BIMCO, comparison between SHIPMAN 2009 and SHIPMAN 98, reprinted in www.bimco.org/Chartering/Documents/Ship_Management/SHIPMAN2009/~/media/ Affréting/Document_Samples/Sundry_Other_Forms/Explanatory_Notes_SHIPMAN_2009.ashx (June 20, 2012). 23 See Wallem Shipmanagement, Ltd. v. Linea Naviera de Cabotaje Linaca, C, SMA No.
3839 (23.04.2004) (N.Y. Arb., A. Nichols, C. Tsagaris and K. Mordhorst, Referee); Associated Transport Line, LLC v. Colonial Marine Industries, Inc., SMA No. 3870, supra; American Roll-On Roll-Off Carrier, LLC v. Pacific-Gulf Marine, Inc., SMA No. 3891 (N.Y. Arb., M. Arnold, J.
Ring and D. Martowski, Referee); Lin Shipping Ltd. v. V.Ships Management Ltd., SMA No. 4147 (November 8, 2011) (N.Y. Arb., J. Lillis, L. Sheinbaum and J. Berg, Arbitrator).24 Associated Transport Line, LLC v. Colonial Marine Industries, Inc., SMA No.
3870, supra. Lin Shipping Ltd. v. V.Ships Management Ltd., SMA 4147, 26 Id. First by agreement or by exercising the right to terminate without fail with termination. The SHIPMAN is an always green contract that runs until the agreement or by a party to the termination. If the minimum term of the contract has expired (as agreed between the parties and defined in Box 18), any party may terminate the contract with a two-month period. SHIPMAN is the industry`s standard contract for ship management. Managers are appointed by the owners as agents to provide ship management services within the meaning of the contract.
This generally includes technical management and may include personnel management and business management.Uncategorized