Charterer-Appointed Shipping Agents: How Can a Shipowner Protect Itself?
Prepared by the Maritime & Admiralty Team at Soliman Advocates
This article has been prepared by the firm's maritime lawyers as part of Soliman Advocates' Maritime Legal Insights series, drawing on the team's experience in Egyptian maritime law and shipping disputes.
Where a shipping agent is appointed by the charterer, the shipowner may find itself dealing with customs or port procedures carried out by an agent it did not personally select.
The issue becomes particularly important where the agent's instructions or representations result in cargo delays, customs problems, detention or financial claims against the vessel or shipowner.
The fact that the agent deals with the authorities does not necessarily mean that the shipowner automatically assumes responsibility for everything the agent does. The position requires an examination of the agent's capacity, who appointed the agent, the limits of its authority, the instructions it received and the relevant charterparty provisions.
Shipowners should also maintain clear records establishing the limits of their involvement and whether the disputed action was taken for the charterer's account or pursuant to the charterer's instructions.
Legal Disclaimer
This article is provided for general information only and does not constitute legal advice or a legal opinion on any specific matter. Liability and procedures may vary depending on the cargo, contractual arrangements, facts and applicable regulations. For advice concerning a specific matter, professional legal consultation is recommended.
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