On September 17, the Black Sea Law Company joined the signing of the Gulf of Guinea Declaration on the Suppression of Piracy.

The problem of piracy in the Gulf of Guinea has been growing over the last decade. Cases of piracy and violence continue to be the focus of the maritime industry in 2021. More than 200 nautical miles from pirate bases, mostly located in the Niger Delta, are the largest number of attacks on seafarers.

In a report published 9 June 2021, the United Nations Office on Drugs & Crime (UNODC) provides an interesting view into the piracy problem (view report). The situation in the Gulf of Guinea is becoming more acute every year, and this report provides analytical information on all cases of piracy, including the increase in territory and number. Despite efforts by coastal countries, including Nigeria, as well as by external actors, the Gulf of Guinea remains one of the most dangerous maritime areas in the world, with acts of piracy now extending from the Ivory Coast to Congo-Brazzaville. Twenty-five successful piracy attacks resulted in 142 kidnapped seafarers in 2020.

BIMCO is the world’s largest international shipping association, with around 1,900 members in more than 120 countries (59% of the world’s tonnage) encourages the shipping industry to cooperate to suppress piracy. In response to growing concerns and increasing attacks in the region, a task force of stakeholders from across the shipping industry drafted the Gulf of Guinea Declaration on the Suppression of Piracy.

More than 400 signatories, including flag state administrations, ship owners, charterers, and shipping associations, supported the piracy problem in the Gulf of Guinea. The List of signatories of the Gulf of Guinea Declaration is on the BIMCO website.

We are pleased to join the Declaration, and we are grateful to BIMCO and the Shipping Industry for their support. Our Company is always in a position to provide any possible legal assistance in protecting Seafarers, Shipowners, and Charterers from any possible risks of being subjected to pirate attacks.

We hope that the cooperation of associations, companies, and international organizations, as well as joint efforts, will be useful in achieving the goals and ensuring safety in the Gulf of Guinea.

The List of signatories of the Gulf of Guinea Declaration on the BIMCO website:

We recognise the important steps taken and positive initiatives underway by coastal States in the region. We call on all stakeholders eg coastal and flag States, shipowners, charterers, maritime organizations, importers and exporters, oil, and mining companies, offshore operators, fishers, supranational organizations, labour unions, and NGOs, to sign this pledge and join together in a coalition to end the threat of piracy in the Gulf of Guinea through:

– Tangibly supporting antipiracy law enforcement (as mandated by international law including international treaties, eg the United Nations Convention on the Law of the Sea) by non-regional naval forces providing a capable incident response capability to complement regional coastal States’ antipiracy law enforcement operations;
– Enhancing regional capacity building with priority given to those coastal States which demonstrate the will to participate actively in law enforcement at sea;
– Encouraging non-regional navies to work actively together with each other and the Gulf of Guinea coastal States’ antipiracy law enforcement forces and agencies to suppress the pirate threat;
– Supporting the deployment of law enforcement staff from regional coastal States on non-regional navy ships for capacity building purposes and to assist in the arrest and prosecution of pirates;
– Facilitating the implementation of effective shipboard defensive measures within the region, including via the BMP West Africa guidance and through other onboard active and passive protective measures;
– Improving domain awareness (eg via radars on offshore platforms) and sharing of relevant information between antipiracy law enforcement forces and agencies;
– Increasing effective law enforcement activity ashore to disrupt the underlying criminal enterprises where they are based;
– Providing prison facilities for arrested pirates (ideally in the region), and encouraging coastal States in the Gulf of Guinea to actively prosecute;
– Working towards improving the transparency between law enforcement agencies, military forces, and protection services; and
– Actively conveying the messages above to relevant stakeholders.

We firmly believe that piracy and attempts at kidnapping are preventable; as a minimum, we need to see, by the end of 2023, that:

– The number of attacks by pirates should be reduced from current levels by at least 80%; and
– No seafarers should have been kidnapped from a ship in the preceding 12-month period.

On August 31 – September 2, 2021, an annual event was held in Odessa “INTERNATIONAL FORUM ON SEAFARERS’ EDUCATION, TRAINING & CREWING 2021”.

Senior Partner, Evgeniy Sukachev took part as a speaker in the discussion panel “Increasing Efficiency of Education, Training & Crewing during COVID-19”. During the panel discussion, the issues of online education of seafarers during the pandemic, support from crewing agencies, and the extension of the validity of seafarers’ documents beyond their expiry date were discussed.

Speakers at the conference were also representatives of leading crewing agencies, training centers for seafarers, representatives of BIMCO and the Panama Maritime Authority, as well as representatives of the National University “Odessa Maritime Academy”, The Nautical Institute, World Maritime University, Nikola Vaptsarov Naval Academy. The program of the event included 3 powerful sessions, panel discussion, and networking sessions.

We are pleased to be invited to participate in the event, for which we express our gratitude to the National University “Odessa Maritime Academy” and especially to the Rector of the University Mykhaylo Miyusov.

More information about the Speakers and the Program of the event is on the website (click here).

On May 28, the II International Seminar on Marine Insurance (IMIS 2021) was held in Odessa, Ukraine. More than 150 participants from 30 countries took part in the event online and offline. The event brought together world-class specialists to provide attendees with forward-thinking knowledge and insight into a better understanding of Shipping & Insurance market developments.

Speakers of the IMIS 2021 ware representatives of the P&I Clubs, Lawyers and Arbitrators (United Kingdom, Denmark, Netherlands, Norway, Ukraine, and Russia):

• Johannes Grove Nielsen, Partner Bech-Bruun, Co-Chair of the IBA Maritime Committee
• Denys Rabomizo, Partner RABOMIZO Law Firm, President of the UMBA
• Evgeniy Sukachev, Senior Partner Black Sea Law Company, Board Member of the UMBA
• Monica Lambrou-Whiting, Senior Claims Manager, West of England P&I Club
• Brett Hosking, Senior Claims Executive, The Standard Club
• Evert Margry, Marine Consultant Charterers Liability DUPI GROUP
• Mats Paul Fielding, Underwriter The Swedish Club
• Richard Lovett, Consultant H.W. Wood
• Elizabeth Birch, Arbitrator and Mediator, 3 Verulam Buildings
• George Arghyrakis, Partner E.G. Arghyrakis & Co
• Konstantin Krasnokutskiy, Partner NAVICUS

The program of the event included three powerful sessions, with insurance and legal experts discussed and shared the latest practical insights on the following topics: P&I insurance during the Covid 19, trends in the international insurance market, as well as P&I Hardening Market, Charterer’s liability, Lessons from the Ever Given case and the P&I perspective, LOU of P&I Clubs – practice in Ukrainian jurisdiction, Bunker Oil Spills and handling liability claims. In the third session, lawyers and arbitrators provide professional expertise on mediation, arbitration, and the High Court of London.
The format of the Seminar provides for the analysis of practical cases for an effective understanding of all aspects of the development of marine insurance and shipping industry issues in various jurisdictions.
Black Sea Law Company is an annual partner of the IMIS, and the Senior Partner, Evgeniy Sukachev made a presentation “LOU of P&I Clubs – practice in Ukrainian jurisdiction”. We are pleased to be part of such a powerful international platform for maritime insurance professionals and look forward to meeting at the next events.

In addition, this event is annually supported by the Consulate General of the Republic of Greece in Odesa. Dimitrios C. Dochtsis, Consul General of Greece in Odessa, made a speech on prospects for the development of shipping in Greece and Ukraine, as well as the cultural and historical relationship.

One of the most anticipated parts of the event was the presentation of the IMIS 2021 partner – the office of the Panama Maritime Administration in Ukraine, which was recently opened in Odessa. Representatives of the PMA made a presentation on maritime services that will provide the office and the advantages of the flag of Panama in modern shipping.

The event also featured a presentation of the NAVAREX underwater archaeological organization. The projects of this organization are unique research of sunken underwater archaeological sites. Moreover, the organizers and partners of the event encourage the shipping community to support the development of such research organizations, primarily to preserve the underwater cultural heritage.

It should be noted that the main concept and goal of the event was achieved because the event became a useful and reliable professional networking platform for Ukrainian Shipping, Financial, and Trading business.

More information about the IMIS 2021 & upcoming events:

We are pleased to contribute to The Maritime Law Journal issue 2/2021 with an article on the ship arrest practice in Ukrainian jurisdiction. The Black Sea Law Company annually prepares an analysis of the practice of arrest of ships in Ukraine, and 2020 is no exception.

The Maritime Law Journal is published by the Russian Maritime Law Association (RUMLA) for the second time and is the first Russian-English publication in the field of maritime law. The full issue is also available on the RUMLA website (click here).

Black Sea Law Company has successfully defended the interests of a foreign Shipowner.

According to the customs authority, 13 tons of cargo transported by a foreign vessel under the flag of Palau, became a record consignment of contraband.
However, the legitimacy of the actions of the customs authority is questionable, as all the cargo of the vessel was declared, and the confiscated consignment of cargo was imported into the territory of Ukraine as the “transit”.
Instead, Customs drew up a claim against the Master under Art. 483 of the Customs Code and calculated the preliminary amount of the fine – more than 17 million UAH.

Despite increased attention from the public and the complexity of the case, the ship left the port without any detention or arrests.
At this stage, it is important for the Shipowner to ensure the continuous commercial activity of the vessel and avoid losses, and the next step will be a lawsuit to protect the rights of the Master and the Owners of illegally confiscated cargo.

The Shipping Law Review, Edition 7: Ukraine
published by Law Business Research

Our company annually publishes the Ukrainian chapter in The Shipping Law Review. We share our regular review of the trending issues facing the maritime industry and summarised the key provisions of local law in relation to shipbuilding contracts, contracts of carriage and cargo claims, limitation of liability, ship arrest procedure. It is a great honor for us to once again contribute to the Shipping Law Review!

The full Chapter is available here:

The wrongful arrest of a vessel and its consequences is one of the most important aspects of the preliminary analysis of maritime lawyers for their Clients, confirming their professionalism and competence.

The Black Sea Law Company, on behalf of the Charterer under the time-charter, proved the insolvency and legal ignorance of the position of the Opponents in the ship arrest case. The Vessel has successfully sailed from Odessa Port and Black Sea Law Company proved once again that the “Rule of Law” is the main tool against illegal and unprofessional actions in Ukrainian jurisdiction.

Our Shipping Practice Team constantly monitors and analyzes the practice of ship arrest in Ukrainian ports and beyond. Please find below the full analytical review on the arrest of vessels in Ukrainian jurisdiction for 2018-2020.

Maritime Safety is a fundamental principle in the field of the Shipping Industries. Compliance with the requirements of international maritime safety legislation is always the responsibility of the Shipowner. In turn, the control over the shipowner’s compliance with these requirements is entrusted to the Flag State. International rating of flags, to a certain extent, is a marker that allows navigating in the amount of information, to mark achievements, to pay attention to shortcomings. Each year, updated versions of the “White”, “Gray” and “Black” List from Paris MOU are presented to the public, reflecting the flag administrations’ longstanding work in meeting safety requirements.

The Paris Memorandum of Understanding on Port State Control is the official agreement between the 27 participating Maritime Authorities implementing a harmonized system of Port State Control. The Memorandum of Understanding consists of the main text and includes 12 annexes, in which the Maritime Authorities agree on: the relevant international conventions; their inspection commitments; the principles for the selection of ships for inspection; the inspection procedures; the exchange of information on inspections; the structure of the Paris MOU organization, the Secretariat; amendment procedures of the Memorandum itself.

The “White, Grey and Black (WGB) List” presents the full spectrum, from quality flags to flags with a poor performance that is considered high or very high risk. It is based on the total number of inspections and detentions over a 3-year rolling period for flags with at least 30 inspections in the period. The most recent List contains 41 countries in the White zone, 16 in Gray, and 13 in Black (Click here to view the list).

Unfortunately, Ukraine ended with a position on the Black List currently.

Black List is divided into 3 zones: Medium Risk, Medium to High risk and High risk. Black List signifies to itself port authorities that the vessel must be inspected with special care. Many port authorities make it clear that vessels under the “Black” flag must be the subject of the more precise inspection. Such attitude must not be considered as discrimination but more as the need to combat gross violation of safety rules. The Black List displays the flags whose fleets are most frequently and regularly found to be in breach of safety requirements. The presence of a List that determines the likelihood of a violation of requirements by the vessel allows the port authorities to rationally distribute forces and not burden ships with unnecessary inspections. At the same time, vessels on the blacklist will be under closer scrutiny, which will prevent possible violations.

Ukraine accompanied by Moldova, Belize, Palau and Tanzania, is qualified Medium to Higher Risk. According to Paris MOU the High risk of violation is possible for Togos, Albania and Comoros. The flag’s position in the Black List is due to the lack of regular inspections of the fleet by the flag administration, the lack of real control over compliance with the requirements and the presence of low requirements for the technical condition and age of the vessel.

In addition, according to the Shipping Industry Flag State Performance Table 2020/2021 by the International Chamber of Shipping, Ukraine has a negative performance. This table provides an invaluable indicator of the effectiveness of individual flag states around the world. It is an annual analysis of how countries perform tasks on a number of criteria, such as port state control (PSC), ratification of international maritime conventions and participation in IMO meetings (Click here to view the list).

Good to know that the greatest number of flags are considered to be suitable for “White” List e.g., Singapore, Korea, UK, Cyprus, China, Panama, US. It is recorded that Japan flag had 0 detentions from 2017 to 2019. Also, Bermuda (UK), Ireland, Croatia, Latvia, Estonia, Korea had only 1 detention during the same period.

Despite the fact, that the understated requirements of the flag administration allow some shipowners to save on maintaining the vessel, the consequences in the long term are dire. Confirmation is the news about the numerous deaths of ships flying the flags of Palau or Togo, due to storms. Registering a vessel under a whitelisted flag may be more onerous in the beginning, but over time, any shipowner will appreciate the freedom of movement and the positive attitude of the port authorities towards more law-abiding flags.

For example, Panama’s flag is on the “White” List, and according to the Paris MOU, out of 6,323 inspections, only 323 detentions were recorded, which is only 5% of the total. In 2009, 40% of the world fleet was registered under the flag of Panama, and as of March 2021, 8,484 vessels were registered under the flag of Panama. That is why Panama is the leader in the number of merchant ships.

This trend is due to the significant advantages of the flag of Panama:

• registration of vessels for an indefinite period (previously registration was allowed only for 2 years);
• vessel registration in other countries through the Panama consulates and registration offices, which there are more than 97 worldwide;
• vessel may be registered under the flag of Panama regardless of the registration of the Shipowner’s company;
• there are no requirements for the minimum tonnage of the vessel;
• Panama Registry is accessible and prompt in service (24/7) including online services;
• Register of Ships is public;
• Panama Registry provides favorable discounts, for example, for newly built vessels, etc.

Unfortunately, the Ukrainian flag remains at the bottom of the list. An external review ruthlessly confirms that the registry needs new insights. The main factor that will turn the game upside down may be the refusal to register an elderly fleet, built in the 80s. In addition, the abandonment of the requirement of compulsory citizenship of the owner will allow attracting foreign companies and renewing the fleet. Based on the example of many successful registries, including Panama, it is clear that the main factors of competition are rigor in meeting international requirements, regular reporting, open checks and remote paperwork.

This article is available in Ukrainian (click here).