ShipBusComp.pdf

The

Shipmaster’s

BUSINESS COMPANION

Malcolm Maclachlan

MICS, FNI, Master Mariner

Lecturer in Business and Law, Glasgow College of Nautical Studies

The Nautical Institute

THE SHIPMASTER’S

BUSINESS COMPANION

Published by The Nautical Institute

202 Lambeth Road, London SE1 7LQ, England

TEL: +44 (0)20 7928 1351

FAX: +44 (0)20 7401 2817

Web: www.nautinst.org

First edition published 1996

Second edition 1997

Third edition 1998

Fourth edition 2004

in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written

consent of the publisher, except for personal use and the quotation of brief passages in reviews.

The author and publisher have used their best efforts in collecting and preparing material for inclusion in The

Shipmaster’s Business Companion. They do not assume, and hereby disclaim, any liability to any party for any loss or

damage caused by errors or omissions in The Shipmaster’s Business Companion, whether such errors or omissions result

from negligence, accident or any other cause.

Readers of The Shipmaster’s Business Companion are advised to make themselves aware of any applicable local,

national or international legislation or administrative requirements or advice which may affect decisions taken by

them in their professional capacities.

A CD is provided with this book which is designed to run on PC and Apple Mac based systems.

The data is filed in portable digital format (pdf) and the searching is carried out through Adobe software.

This disc is designed to run on computers with the following specification:

PC: Windows 98, NT, 2000, XP, Pentium 300 MHz, 120 MB Ram 1024 x 786 colour display. 4 x CDRom drive.

Installation of Adobe Reader may be required.

MAC: OS 8.6 or OS 9 G3 300 MHz, 128 MB Ram, 1024 x 767 colour display, 4 x CDRom drive. Installation of Adobe

Reader may be required. To be reviewed with future updates.

Printed in England

by O’Sullivan Printing Corporation, Southall, Middlesex U.K.

ISBN 1 870077 45 8

THE NAUTICAL INSTITUTE

Contents _______________________________

Section Subject

Pages

The Author

Preface to the 1998 edition

Preface to the 2003 edition

Foreword by Captain R. B. Middleton FNI,

President, The Nautical Institute

MARITIME TREATIES

A-1 to -20

THE FLAG STATE

B-1 to -64

THE SHIPOWNER, MANAGER

C-1 to -19

AND OPERATOR

THE SHIP

D-1 to -183

THE MASTER AND CREW

E-1 to -166

THE SHIP'S EMPLOYMENT

F-1 to -89

INSURANCE AND CLAIMS

G-1 to -35

AT SEA

H-1 to -76

IN PORT

I-1 to -90

INDEX

Index 1 to 24

THE SHIPMASTER’S BUSINESS COMPANION

The Author____________________________________________

Malcolm Maclachlan was born in Dover in 1947 and first worked at sea - illegally - as a 14-year old pantry boy in the

Townsend car ferry Halladale . In the early 1960s he trained as a cadet on the training ship HMS Worcester before

serving a deck apprenticeship with Alfred Holt & Company, sailing as midshipman in general cargo liners of the Blue

Funnel Line and Glen Line.

Deep sea and coastal service as a deck officer with several British and Danish liner, reefer, tramp and tanker companies,

and a spell in Scottish fishery protection vessels, culminated in 1980 in an appointment as master in Bell Lines’ fleet of

short-sea containerships.

Redundancy in 1982 led to a year of lecturing at the ill-fated Leith Nautical College, followed by four years as control

room operator on North Sea drilling rigs. The 1986 oil slump and a second redundancy prompted the author to become a

freelance marine journalist, writing and cartooning for Fairplay , Seascape and The Sea . During this period he wrote An

Introduction to Marine Drilling , compiled The North Sea Field Development Guide (both published by OPL) and drew

monthly cartoons for the NUMAST Telegraph , a collection of which NUMAST published as A Laugh on the Ocean

Wave .

In 1989 the author returned to teaching, this time at Glasgow College of Nautical Studies, where he teaches Shipmaster’s

Business and related subjects. Shipbroking studies and growing pressure of college work forced him to stop cartooning,

but in compensation he won the 1995 Fairplay Prize for his Ship Management paper in the annual Institute of Chartered

Shipbrokers examinations. He became an MICS in that year.

The author self-publishes - under his own North Sea Books houseflag - The Shipmaster’s Business Self-Examiner , a

question-and-answer “orals” primer used by many “orals” candidates as well as seagoing officers, and is compiling a

Dictionary of Merchant Shipping Terminology .

Malcolm Maclachlan is married and has a son - an engineer officer with Teekay Shipping (Canada) - and two daughters,

oneofwhom sailed as a deck officer with BP Shipping and is now a bunker broker. He and his wife live in a small town

in the Southern Uplands of Scotland. In his spare time he runs on the Scottish hills and plays blues harmonica.

THE NAUTICAL INSTITUTE

Preface to the 1998 edition______ _________________________

In an increasingly litigious world where environmental concerns often place ships and their masters under official and

public scrutiny, every serving and aspiring shipmaster needs to be fully aware of his obligations to his owners,

managers, charterers, shippers, flag state, port state, coastal states, and crew. He can only know what his numerous

obligations are, however, if he is armed with a sound knowledge of current ‘Shipmaster’s Business and Law’.

Most masters find it difficult, if not impossible, to keep abreast of current Business and Law while at sea. Few ships

carry a good reference library, and even when they do, today's maritime law and commercial practice is embodied in so

many texts published by different organisations that a master may well be at a loss to know even what the relevant

document is, far less what it states. Moreover, shipping legislation changes frequently and sometimes radically. The

Merchant Shipping Act 1995 consolidated much of the primary British shipping legislation of the previous 101 years,

while STCW 95 has brought radically new requirements for training, certification and safe manning, sweeping away old

provisions with which masters were reasonably familiar, such as the deck and engineer officer manning scales, the

European trading areas, and the ‘short-handed’ manning provisions. (Readers will find notes on the new STCW 95 -based

regulations in Section E along with notes on the ‘old’ provisions for comparison, where relevant.)

Shipmasters with enough on their plates do not usually welcome totally new legislation, but the Master’s Discretion

Regulations 1997 (described in Section H) should be greeted warmly by all in command. No more need a safety-

conscious master feel uneasy about resisting ‘commercial’ pressure to sail, or to increase speed in fog, or to take any

suggested course of action of which he disapproves on grounds of navigational safety. This SI is long overdue.

Merchant Shipping Notices have now passed MSN1700, Marine Guidance Notes have reached their half-century and

Marine Information Notes are at MIN17. It is clear that officers can no longer be expected to have even a working

knowledge (as they once could) of M Notices in force, and references are therefore included in the text to any relevant

MSN, MGN or MIN.

This book makes no pretence to be a definitive work on any particular aspect of maritime law or shipping business

practice, and readers will not find tables of leading cases, annotations, footnotes or references. It is simply a

compendium of Business and Law notes that may prove of some value to professional mariners in their day-to-day work.

If it contributes anything to the commercial success of a voyage, or is useful to officers in their studies for higher

certificates, or to shore-based shipping practitioners in some way, it will have exceeded my hopes and expectations.

Areference book for maritime professionals clearly needs to be up to date, and to this end the Nautical Institute intends

to publish an annual supplement in its journal Seaways , and a fully revised edition in about three years’ time.

Malcolm Maclachlan

Biggar, Scotland

December 1997

THE SHIPMASTER’S BUSINESS COMPANION

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