New UAE Maritime Law: Exploring Ship Agencies

Decrypting the UAE’s New Maritime Law – Episode 2

In the wake of the recent publication of the new UAE Maritime Law (the “New Maritime Law”), we continue our journey to dissect the nuances of the new Maritime Law. The maritime domain, with its dynamic nature, demands a legal framework that develops to meet the evolving needs of the industry. The New Maritime Law, a testament to the UAE’s commitment to maritime excellence, introduces new provisions related to marine persons.

Building upon our exploration of vessel arrest, this article aims to shed light on the newly introduced types of marine persons, their liabilities and responsibilities they entail. The New Maritime Law introduce provisions in relation to four distinct types of marine persons: (a) Ship’s Agent; (b) Cargo Agent; (c) Transit Agent; and (d) Stevedores (Loading and Unloading Agent) (the “Marine Persons”). It is noteworthy that the preceding legal framework did not encompass marine persons, leaving a regulatory gap that the New Maritime Law comprehensively fills. In the absence of explicit guidelines, case law was the primary source for shaping expectations and legal arguments in disputes involving ship agents. The inclusion of marine persons not only provides a structured foundation for their operations but also offers a clear path for dispute resolution.

Marine Persons are not allowed to practice their activities in the UAE without obtaining the relevant approval from the Ministry of Energy and Infrastructure. The executive regulations of the New Maritime Law will clarify the conditions and procedures of Marine Persons. The Ministry of Energy and Infrastructure has the authority to penalize violating Marine Persons.

The New Maritime Law provided a definition of each type of Marine Persons. Let us begin with ship agents who take central role of handling a ship. Ship Agents are defined as remunerated representatives engaged on behalf of the ship operator and acting in the capacity of the designated business center within a given port. Their duties extend beyond mere representation, and shall receive goods from the shippers and deliver them to the receivers and taking care of stevedoring, issuing bill of lading and delivery notes. Furthermore, ship agents shall ensure the following:

• Coordination with the Master by taking the necessary actions to meet the ship control requirements;

• Provide accurate information about the maritime crew to the competent entities in the UAE; and

• Carry out the work related to the usual needs necessary for the ship.

A ship agent is liable for their personal faults as well as the faults of their affiliated parties in addition to being liable before the operator as a paid agent.

The second type of Marine Persons introduced is cargo agents and they are defined as paid agents who act on behalf of the receiver of the goods and take all required actions to receive, inspect and release the goods. Acting on behalf of the receiver, cargo agents must ensure they preserve the goods they receive and safeguard the receivers’ entitlements towards the carriers and all involved parties in the execution of sea transport. Failure to do so results in the presumption that the goods were received in the condition outlined in the bill of lading. The burden of proof rests on the cargo agent to demonstrate otherwise. In the usual course of business, the bill of lading includes a condition to which the shipper authorizes the carrier to appoint the cargo agent. The New Maritime Law clarifies that the appointment of a cargo agent by virtue of the condition in the bill of lading is not valid vis-a-vis the receiver unless it is accepted by the shipper. Without acceptance, the cargo agent’s role is classified to be as a custodian of the goods. This provision underscores the significance of the shipper’s approval in determining whether a cargo agent has a full authority over the goods or merely a custodian. The cargo agents are also liable for their personal faults and their affiliated parties before the receivers and any other third parties involved.

Next on our exploration are transit agents who are defined as paid agents acting on behalf of either the carrier or the receivers. Transit agents play a pivotal role in coordinating the various stages of goods receipt and delivery involving different carriers. The New Maritime Law sets out the responsibilities of the transit agent as follows:

• Receive the goods from the previous carrier, concluding a contract of carriage with the next carrier and delivering the goods to him;

• Carrying out all necessary actions and measures to preserve the goods in transit from one carrier to another; and

• Arrange custom release of the goods if they pass the customs gate in preparation for the next transportation.

While the transit agent’s roles connect between the multiple carriers when goods are in transit, however, they are only held accountable for their personal faults before any party..

Moving on to the next type of Marine Persons, stevedores (loading and unloading contractors), as defined by the New Maritime Law, they are individuals or entities tasked with the loading or unloading of goods from ships in exchange for an agreed fee. Their responsibilities are aimed at ensuring the efficient and secure handling of cargo at the loading and discharging ports. The New Maritime Law details stevedore’s responsibilities as following:

• Execution of loading and unloading services by providing the necessary tools to load and unload the goods. The stevedores are also allowed to use the ship’s crane, if needed.

• Preparatory and complementary work such as bringing the goods from the warehouses and transporting them to the ship by any means as well as storing the cargo in the warehouses after they are unloaded.

Moreover, stevedores may be delegated legal and financial responsibilities linked to the loading and unloading of cargo. These responsibilities are contingent upon a clear and written agreement provided by either the ship's agent or the cargo agent on behalf of the ship operator, shipper, or consignee.

In relation to the liabilities of stevedores, they are liable for their faults and their affiliated parties that result in harm to others. They can be further liable for the loss or damage of goods before the party that assigned them to the loading or unloading tasks. Moreover, the stevedores can limit their liabilities arising from the loss and damage of goods in accordance with the provisions related to the contact of carriage.

The introduction of provisions related to Marine Persons, encompassing Ship's Agents, Cargo Agents, Transit Agents, and Stevedores, underscores the commitment to creating a comprehensive legal framework that not only regulates but also enhances the efficiency and accountability of maritime activities. The transparent articulation of roles, responsibilities, and liabilities for each agent assists in the resolution of disputes and forecasts potential outcomes. In essence, the New Maritime Law is a forward-looking guide that not only shapes the present roles and responsibilities of maritime navigation persons but also positions the UAE at the forefront of global maritime governance, fostering a secure, accountable, and transparent future for the industry.

Should you require any further information on the various marine persons, or any details regarding the New Maritime Law, please get in touch with the authors of this article: Mahmoud El Sayed and Reem Sharif.

Authors

Mahmoud El-Sayed, Managing Associate

Reem-Sharif, Paralegal