5 UAE Maritime Law Issues That Could Ruin Your Business
Understand The Maritime Law in UAE
UAE Commercial Maritime Law
If you are a business owner or a stakeholder in the maritime industry, this article is precisely what you need. You definitely want to be in the know when it comes to maritime legal issues that can jeopardize your business. We’ve got just the info you need.
UAE Maritime Law Issues that Could Ruin Your Business
Marine operations depend on risk management strategies. This includes commercial marine insurance. As such, it is vital to be acquainted with the laws that protect your assets from losses.
As a business owner, you should know and understand the most critical law issues that could risk your business in the commercial marine industry. This will help you protect your operations from liabilities and ensure that your business continues.
Some legal issues that can directly affect your business include:
- Unforeseen events
- Kidnapping and pirate activities at sea
- Damage to ship machinery
- Losses and insurance claims
#1. What happens in the face of unforeseen circumstances like a pandemic?
In 2020, the outbreak of COVID-19 caused a massive impact on economic sectors all around the world. And the maritime transportation sector was not left behind. As such, certain questions arose, which needed resolution.
One of the issues that arose was the restriction of the number of crew members on board. Having the usual required number of crew members during the pandemic presented a problem. Having workers staying together onboard would be jeopardizing their health and, consequently, the ship’s safety.
On the other hand, fewer crew members might mean less manpower to handle the various responsibilities. This can lead to crew fatigue. And having a fatigued crew is one of the most common reasons for human error on a ship. This can lead to several accidents on the ship.
This problem is difficult to contain. If there’s an accident based on this issue, who bears the risk? Both parties, however, may choose to resolve the issue by hiring local crews and cooperating with different crew management companies.
#2. What about kidnapping or pirate activities at sea?
Kidnappers and pirates are some of the most dangerous hazards in the maritime industry.
Maritime security is adversely affected by a broad range of illegal activities. This includes arms, drugs, and human trafficking, illegal, unreported, and unregulated fishing, as well as pollution at sea. Pirates are often involved in these unlawful acts.
Maritime security is also affected by maritime piracy, kidnapping, and armed robbery at sea.
If your goods are overtaken by pirates at sea or your workers injured or kidnapped, there will be issues to deal with in your business. Incidents like that can cause a deep dent in your business or shorten your maritime career. In such cases, you will need the help of a professional maritime lawyer.
#3. What laws should apply if my ship is in a different country?
If your ship or a vessel carrying your cargo arrives at a port, the shore authorities have the right to demand certain payments. Before the 19th century, ship owners and captains were free to do as they pleased while building and operating their ships.
However, maritime nations began to realize that they could prevent accidents at sea by paying attention to the rules for the building and operation of ships.
With this development, individual nations started to formulate their regulations. They made laws for their citizens and for foreigners that came within their controlled waters. But then, since ships of all nations are free to use the ocean, diversity of rules became a problem.
Therefore, as a business owner in the maritime industry, you have to determine what laws apply to your vessels at various times. For this, you need a seasoned maritime lawyer to help you figure it out.
#4. What do I do if I have machinery damage concerns?
One of the effects of the Covid-19 pandemic was that it hindered access to essential maintenance and servicing. There were disruptions in the supply of spare parts and other fundamental products like lube oil and hydraulic oils. These disruptions delayed scheduled ship maintenance appointments.
They also resulted in situations where crew members had to use alternative grades or brands. As such, shipowners ran the risk of delays and machinery breakdown during the course of the pandemic.
Additionally, travel restrictions were put in place that restricted specialist engineers needed to carry out ship repairs from getting access to the ships. This increased the risk of machinery damage.
Machinery damage or breakdown is already one of the most common causes of shipping accidents over the past decade. Also known as unseaworthiness, a ship in poor condition is very likely to cause injury to workers.
If a ship’s substandard condition can be linked to a worker’s injury, this can constitute grounds for a personal injury claim.
So, if you incur a loss because of your ship’s machinery breaking down and the inability to get a specialist engineer, who bears the cost of the loss?
#5. How do I determine my insurance claims and losses?
Usually, the cruise ship sector has the greatest impact of loss from insurance claims. This is because of the law that makes provision for owners’ liability for damages caused to the passengers and the crew while onboard the ship.
What if the cruise ship sector happens to jump into gear again in 2021? That may be good news. However, it also means that shipowners may be facing possible legal action in the event of cancellations or disease outbreaks onboard.
How about claims that may be filed against cargo ships due to delays in freight delivery? These are especially fatal for cargo that may be temperature-sensitive, damaged, or depreciates with time.
If you want to deal with this legal issue ahead, your company must be totally devoted to implementing effective freight transport plans. These plans must include preparation for unexpected events, using new technologies to make the work easier.
Let Al Obaidli & Al Zarooni Advocates Help You Protect Your Maritime Business
The maritime industry is currently recording a boom in job opportunities. This is partly due to the rise of e-commerce and globalization. Despite the hazards and risks outlined above, there are also many benefits to having a maritime career.
As a maritime business owner, you can have a six-figure salary, travel opportunities, healthcare coverage, and a challenging work environment. This ‘challenging work environment,’ which is an advantage, is also a downside. Simply put, maritime jobs come with risks. This is why you need us: expert maritime lawyers in UAE at Al Obaidli & Al Zarooni Advocates & Legal Consultants. We offer reliable maritime law services in the UAE.
Our expert maritime lawyers are capable and eager to ensure that you carry out an uninterrupted and successful maritime business in the UAE. We have experience in different areas of maritime law. As such, we can help you tackle these challenges in the maritime industry. Our maritime advocates in UAE are highly skilled and experienced in handling maritime disputes. We will provide you with high quality legal advice, and we have the skill and expertise to resolve your maritime issues. Our goal is to minimize the impact of maritime disputes on your business by offering cost-effective solutions.
Our UAE-based maritime law firm will also provide you with accurate information about the maritime legal requirements. We will also provide focused, efficient, and personal legal representation in your maritime matters. We have all the knowledge that you need to have a productive maritime business.
If you want more information about maritime shipping and trading in the UAE or want us to help you with your maritime matters, contact us now.