MARITIME LAW

ARTICLES 573-869 OF
CODE OF COMMERCE

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 MARITIME LAW
Maritime Law – is the system of
laws which particularly relates to
the affairs and business of the sea,
to ships, their crews and navigation
and to marine conveyance of
persons and property
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 MARITIME LAW
1. REAL
Similar to transactions over real
property with respect to effectivity
against third persons which is done
through registration.
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 MARITIME LAW
The evidence of its real nature is
manifested by:
a. The limitation of the liability of
the agents to the actual value of
the vessel and the freight money;
and
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 MARITIME LAW
The evidence of its real nature is
manifested by:
b. The right to retain the cargo and
embargo and detention of the
vessel.
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 MARITIME LAW
2. HYPOTHECARY
simply means that the liability of the
carrier in connection with losses related
to maritime contracts is confined to the
vessel, which is hypothecated for such
obligations or which stands as the
guaranty for their settlement.
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 MARITIME LAW
A vessel or watercraft is defined under PD No.
447 as any barge, lighter, bulk carrier,
passenger ship freighter, tanker, container
ship, fishing boats, or other artificial
contrivance utilizing any source of motive
power, designed use or capable of being used
as a means of transportation operating either
as a common carrier, including fishing vessels
covered under PD No. 43
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 MARITIME LAW
Except:
1. Those owned and/or operated by the
Armed Forces of the Philippines and by
the Foreign Government for its Military
Purpose;
2. Bancas, sailboat and other waterborne
contrivance of less than three tons
capacity and not motorized.
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 MARITIME LAW
ACQUISITION
• Vessel may be acquired or transferred by any
means recognized by laws. Thus, vessel may be
sold, donated and may even be acquired
through prescription;

• Under the present laws, vessels that are under

the jurisdiction of MARINA can be transferred
only with notice to said administrative agency.
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 MARITIME LAW
MARITIME LIEN
• Vessel may be acquired or transferred by any
means recognized by laws. Thus, vessel may be
sold, donated and may even be acquired
through prescription;

• Under the present laws, vessels that are under

the jurisdiction of MARINA can be transferred
only with notice to said administrative agency.
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 MARITIME LAW
Characteristics of maritime lien:
1. maritime property
2. travels with the property--- it cannot
be extinguished
3. enforceable in an action in rem---
action directed to the property
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 MARITIME LAW
Limited Liability Rule – means that the
liability of a shipowner for damages in case of
loss is limited to the value of his vessel.
• No vessel, no liability.
• The civil liability for collision is merely co-
existent with the interest in the vessel; if
there was total loss, liability is also
extinguished.

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 MARITIME LAW
Exceptions to Limited Liability
Rule:
1.Claims under Workmen’s Compensation;
2. Collision between two negligent vessels;
3. Expenses for Repair and provisioning of the
ship before its loss;
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 MARITIME LAW
Exceptions to Limited Liability
Rule:
4. In case when there is no total loss and the
vessel is not Abandoned;
5.The vessel is insured;
6. There is actual finding of Negligence on the
part of the vessel owner or agent.
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 MARITIME LAW
Abandonment of the vessel, its appurtenances and
the freightage is an indispensable requirement
before the shipowner or ship agent can enjoy the
benefits of the limited liability rule. If the carrier
does not want to abandon the vessel, he is still
liable even beyond the value of the vessel
The only instance where abandonment is
dispensed with is when the vessel was entirely
lost. In such case, the obligation is extinguished.

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PARTIES IN MARITIME COMMERCE
1. SHIPOWNERS and SHIP
AGENTS;
2. CAPTAINS and MASTERS OF
VESSELS;
3. OFFICERS and CREW OF
VESSEL.
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 CHARTER PARTIES
Charter Parties - a contract whereby the entire
ship, or some of the principal part, is let by the
owner to a merchant or other person for a
specified time or use for the conveyance of goods,
consideration of payment of freight
- it is a contract, hence, parties are free to
stipulate upon such terms and conditions that
would suit their purposes subject to the caveat
that these should not be contrary to law or public
policy
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 CHARTER PARTIES
Parties
1. Charterer- merchant or a person
who desire s to lease ship or vessel
owned by another by transport of his
or her goods for commercial purposes
or persons from one port to another
2. Shipowner (SO)
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 CHARTER PARTIES
KINDS:
1. bareboat or demise charterer – shipowner
leases to the charterer the whole vessel,
transferring to the charterer the entire
command, possession and consequent control
over the vessel’s navigation, including the
master and the crew, who becomes the
charterer’s “servants” - charterer becomes an
owner “pro hac vice”
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 CHARTER PARTIES
KINDS:
2. Contract of affreightment – charterer
hires the vessel only, either for a
determinate period of time or for a
single or consecutive voyage, with the SO
providing for the provision of the ship,
wages of the master and crew, and
expenses for maintenance of the vessel.
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 CHARTER PARTIES
Types of Contract of Affreightment
a. time charter – vessel is leased to
a charterer for a fixed period of
time;
b. voyage charter – vessel is leased
for a single or particular voyage.
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 LOANS ON BOTTOMRY AND
RESPONDENTIA
Bottomry
Owner of the ship borrows for the use,
equipment or repair of the vessel, for a
definite term, and pledges the ship as
security, with the stipulation that if the
ship is lost during the voyage or during
the limited time on account of the sail
perils, the lender shall lose his money.
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 LOANS ON BOTTOMRY AND
RESPONDENTIA
Respondentia
A loan secured by the owner of the
cargo payable upon safe arrival of
the cargo at destination. The ship
owner, agent or captain cannot
secure the loan;
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 LOANS ON BOTTOMRY AND
RESPONDENTIA
Respondentia
The goods or some part thereof,
are hypothecated as security for
the loan, the security of which is
dependent upon maritime risks;
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 ACCIDENTS IN MARITIME
COMMERCE
1. Averages
2. Arrival Under Stress
3. Collision
4. Shipwreck

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 ACCIDENTS IN MARITIME
COMMERCE
Averages
an extra-ordinary or accidental expense
incurred during the voyage in order to
preserve the cargo, vessel or both; and all
damages or deterioration suffered by the
vessel from departure to the port of
destination, and to the cargo from the port of
loading to the port consignment. (Art. 806)

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 ACCIDENTS IN MARITIME
COMMERCE
Particular or Simple Average
• Damage or expenses caused to the vessel
or cargo that did not inure to common
benefit, and borne by respective owners.
(809)
• The owner of the goods which gave rise to
the expense or suffered th e damage shall
bear this average. (Art. 810)

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 ACCIDENTS IN MARITIME
COMMERCE
Gross or General Average
• Damage or expenses deliberately caused in
order to save the vessel, its cargo or both from
real and known risk. (Art. 811)
• All the persons having an interest in the vessel
and the cargo therein at the time of the
occurrence of the average shall contribute to
satisfy this average. (Art. 812)

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 ACCIDENTS IN MARITIME
COMMERCE
ARRIVAL UNDER STRESS
arrival of a vessel at a port of
destination on account of lack of
provision, well founded fear of seizure,
privateers, pirates, or accidents of sea
disabling navigation. (Art. 819)
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 ACCIDENTS IN MARITIME
COMMERCE
ARRIVAL UNDER STRESS
arrival of a vessel at a port of
destination on account of lack of
provision, well founded fear of seizure,
privateers, pirates, or accidents of sea
disabling navigation. (Art. 819)
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 ACCIDENTS IN MARITIME
COMMERCE
COLLISIONS
Collisions - impact of 2 vessels both
of which are moving.
Allision - impact between a moving
vessel and a stationary one.
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 ACCIDENTS IN MARITIME
COMMERCE
3 Zones of Time in the Collision of vessels:
1. First zone – all time up to the moment
when risk of collision begins;
2. Second zone – time between moment when
risk of collision begins and moment it
becomes a practical certainty;
3.Third zone – time when collision is certain
and time of impact.
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 ACCIDENTS IN MARITIME
COMMERCE
Shipwreck
– the demolition or shattering of a vessel
caused by her driving ashore or on rocks
and shoals in the midseas, or by the
violence of winds or waves in tempests
- loss of the vessel at sea as a
consequence of its grounding, or running
against an object in sea or on the coast
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 SALVAGE LAW (ACT 2616)
SALVAGE
services one person renders to the owner
of a ship or goods, by his own labor,
preserving the goods or the ship which
the owner or those entrusted with the
care of them have either abandoned in
distress at sea, or are unable to protect
or secure.
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 CARRIAGE OF GOODS BY SEA
ACT (COGSA)
APPLICABILITY
1. Water/Maritime transportation;
2. For the carriage of goods;
3. Overseas/ International/ Foreign
(from foreign to Philippine port).

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