25 November,2010 06:40 AM IST | | Bobby Anthony
From discussing high sea piracy to insuring ransom of hostages to climate change, law firm HFW answers the buzzing questions of the shipping sector
Tackling piracy on high seas, using legal aid of paying ransom to secure the release of shipping company's crew members, negotiating with pirates, discussing opportunities and threats for India in the logistics sector, and a panel discussion on the carbon credit market were the highlights of the second day of International Commerce conference organised by international law firm Hollman Fenwick Willan (HFW) at Taj Hotel in Colaba.
Partners at HFW discuss the legal problems and situations confronted by the shipping industry
According to Edward Newitt, a partner with HFW, there is a legal way out when a ship is taken under siege by pirates. "Paying ransom to get shipping crew members released is legal according to English law," said Newitt.
He also spoke of expenses including the cost of delivering ransom, cost of insuring the ransom, cost of kidnap and ransom (K&R) fees, cost of lawyers' fees, cost of emergency repairs at port-of-refuge, besides crew wages, which could be recovered from shipping insurance companies.
"However, insurance claims become weak if shipping companies have not implemented good management practices as well an anti-shipping contingency plan, which includes provisions for emergency communications," Newitt elaborated to an audience comprising of representatives from Indian shipping industry.
u00a0"Also, if the ship has a mechanical problem or the crew was not adequately trained in anti-piracy measures, then insurance claims may become untenable," he informed.
Some partners at HFW also opined that ship owners were hiring private military companies to combat the pirate menace in the absence of adequate political will by governments.
Another HFW partner, Alister Mackie, raised concerns about the absence of proper private-public partnership (PPP) guidelines in the shipping sector in India.
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"There is a lack of clarity on issues related to the bidding process as well as the qualification criteria that continues to hinder investments in India's ports and terminals," Mackie said.
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"Other legal hurdles relate to land acquisition for port projects. Often there are fishermen who come in the way of obtaining clearances. That sort of litigation can hold up port projects."
Apart from this, a panel discussion on the topic of climate change and opportunities for Indian business proved to be a lively event of the day.
"Banks are not very savvy when it comes to carbon credits. They merely look at whether a renewable energy project will make money or not.
Wind energy producers are permitted to sell their carbon credits to European companies and partly finance it to some extent even before the project is in place.
The Mumbai based MCX-SX exchange has also begun trading in carbon credits," said Vishwajit Dahanukar, managing director of Managing Emissions Pvt Ltd.
