Seaworthiness - Application of Hague Rules as Amended - Essay Example

? Seaworthiness Affreightment is the contract where the ship-owner or his/her agent agrees to carry goods by sea. It also refers to the agreement to provide a sea moving vessel to be used for the purpose of carrying goods. The contract is entered through a charter party and it is evidenced by presence of bill of lading. Charter party happens where the ship owner agrees to provide the vessel for a period of time. The marine Insurance Law states that any carrier has a duty to facilitate a vessel that is capable of carrying out a voyage. This is a condition that must be fulfilled in order to avoid losses. Compensation will only be guaranteed when seaworthiness is adhered to all the times. A ship is said to be fit if it is in a condition that the owner can allow it to take a voyage. The probable future events are also put into consideration in the determination of seaworthiness (Wilson 2010, p.9-15). Sea worthiness is determined by the type of voyage to be made, and also the class of the vessel. Kopitoff v Wilson (1876) provides the meaning of seaworthiness. This essay seeks to discuss the legal aspect of understanding of seaworthiness in contracts for the carriage of goods by sea. Application of Hague Rules as amended Charter party contract is negotiable in a free market, and it is subject to the law of supply and demand. The rules were designed to clarify on the legality of the carrier of goods (Wilson 2010, p.9-15). There are clauses that guide the parties to the contract. The law of merchant holds water in the designing and implementation of the rules to be considered in the contract. The Hague/Visby Rules provide a provision to the parties of the contract. All the contracts of Affreightment outline the provision of a sea worthy vessel for the work. This helps in reducing accidents, and also the risks of undertaking the business. There is the obligation rule to stick when carrying out the business of carrying goods via sea. The sea worthiness includes presence of competent crew and sufficient fuel for the voyage (Wilson 2010, p.9-15). The contracting parties are required to operate a fair business involving principle of indemnity. There should be disclosure of the contents of goods to be carried. This reduces the chances of carrying dangerous goods. In the case of Northern Shipping Co v Deutsche Seereederei GmbH & Ors, the vessel was carrying highly inflammable cargo. The cargo had not been declared appropriately. The law provides for the owner of the ship to avail a sea worth vessel. Any breach of contract will result to the nullification of the contract. The vessel availed for the transaction should be fit. Contracting States The Madeline [1967] stated about the non cancellation of charter agreement before the termination of the voyage. The Affreightment contract governed by Hague or Visby Rules, will have to abide with the principle of due diligence. This will facilitate the providence of sea worthy vessel. Any negligence caused by the contracting parties will result to liability (Wilson 2010, p.9-15). The liability can be reduced only by providing a sea worthy ship. Corporate social responsibility is one highly researched on in the recent years. The topic is a current loom in business arenas as scholars and managers seek to improve the way corporations do business. In its simplicity, corporate social responsibility refers to a school of thought of management where corporations are persuaded to engage in their business affairs in a responsible manner. It is a call for organizations to participate in making their environmental constituents happier and better. This requires that corporations participate in a legal and a socially responsible manner (Wilson 2010, p.9-15). Therefore, an organization should estimate the market expectation and respond accordingly. There are twofold obligations to the ship owner when availing a sea vessel which is sea worth. The vessel must have competent crew to operate it and also necessary facilities for the operation. A vessel is said to be cargo worth, if it is fitted with all the required facilities to make it remain in good condition (Wilson 2010, p.9-15). The twenty first century has declared a digital world in all aspects of doing business. There is the interconnectivity of people and organizations through digital platforms. Information technology has advanced business applications for a competitive edge. Many businesses have turned social media sites as the new marketing strategies. Mobile technology has also advanced in terms of functionality and interface. All these global changes are attributable to the fast entry of internet all over the world. Globalization has affected the running and management of trade unions. Also, economic crisis have an impact on the organization and running of trade unions. There is the need to re-think of the strategies of running trade unions. There is shifting from the confrontational way of management to a consultative one. Globalization also encourages collaboration and use of social dialogues to bring harmony. Outsourcing is the process of contracting out part of the business process to another company. It is an emerging issue of the twenty first century business management procedures. Business outsourcing ranges from simple production methods to outsourcing of labor factor of production. Modern business management and especially in the manufacturing sector have been involved in outsourcing of business services. This is attributed to the rising cost of production and the need for higher profits (Wilson 2010, p.9-15). Minimum wages refer to the least hourly pay to a person. It may also refer to the lowest pay per day for those who are paid on a daily basis, or also the least minimum monthly pay for those who are paid on a monthly basis. This matter has been on the debate among many economists some of who support it while others oppose it. It is argued that higher minimum wages are likely to raise the living standards of the employees. It is also argued that higher minimum wages lowers the poverty levels of the workers. An individual should portray a professional picture to peers at work. There should never be any conflict of interest. One should observe the rule of law in carrying out the duties at work. Integrity should be observed all times by all employees. This promotes the level of interaction and professionalism at work (Wilson 2010, p.9-15). Senior management should avoid all cases of nepotism, favouritism and undue influence in making decisions of promotions. World Trade organization bodies such as International Labour Organization and International Organization of Employers have created a shift in the goal posts for trade unions. All the stakeholders are brought together in one spirit of social justice and equality for all. The adage which has quite penetrated minds of business leaders and other management practitioners is the concept of shareholder wealth maximization. This old pedagogical intuition can be achieved if the corporations concentrate in agendas which would enhance the corporation performance, by increasing the profits which in turn improve the share prices of the company. The role of a business is a business; those practicing in other affairs which are non-business definitely, will lose to their competitors. In this view, the call to engage in social matters is considered a deviation from the norm of the expected business practice. Fair-trade movement should be enacted as a way of rewarding all those businesses who follow the labour guidelines. From an international trade point of view, imposing the fair-trade rule is of great help and will curb the businesses from violating the labor practices. Some of the guidelines include: - the introduction of price floors in the international market to cushion businesses from the fluctuation in the prices of their commodities and also certification which ensures businesses pay the right wages to their employees. A trade theorist will argue that, prices of commodities are determined by the forces of demand and supply and even also the price for labour will also be determined by the supply of it. Conclusion In conclusion, the legal aspect of understanding of seaworthiness in contracts for the carriage of goods by sea has been discussed in this paper. The marine Insurance Law states that any carrier has a duty to facilitate a vessel that is capable of carrying out a voyage. This is a condition that must be fulfilled in order to avoid losses. Compensation will only be guaranteed when seaworthiness is adhered to all the times. Code of ethics refers to all the values that govern the working of professionals in their area of expert. It guides them especially when faced by a problem that require decision making. The success of implementation of ethics is governed by the core values in the industry. Core values refer to the guidelines upheld by professionals in their work set up. They contribute to the morality of the society. Ethics refers to the moral good or bad of an action as viewed by the society. Societal morality is based on good ethics by the residents of that community. References List Wilson, J. F. (2010). Carriage of goods by sea, Harlow, Longman. Pp.9-15. Read More