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Ship Repair & Conversion

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lations. Among the changes proposed to current regu- lations that might impact marine carriers are more detailed reporting requirements when persons on board are suspected of having a communicable disease, increased sanitation requirements when so directed by the CDC, and broader authority by the CDC to order various quarantine measures.

Governments, in an effort to slow the spread of avian flu to their citizens, will impose restrictions on ships arriving from foreign ports. These restrictions will include reporting requirements, particularly with regard to prior port calls, the health of all persons on board, and keeping track of persons who might depart the ship. (In October, the Panama Canal Authority began requiring ships to include in their advance notice of arrival information regarding any birds that have died on board; whether any of the previous ten port calls were in nations identified as having outbreaks of avian flu; and whether any persons on board are expe- riencing flu-like symptoms.) It will be difficult, if not impossible, to fly in new crew members for routine crew changes or as replacements for ones who might become ill. Ships may be delayed in port because they can't get their cargoes unloaded or get new cargoes loaded.

What can be done?

Governmental restrictions (sometimes called "restraint of Princes") and other delays will have major financial consequences. The party that bears the finan- cial impact will be determined, to a large extent, by the various contracts and legal relationships between those involved. Most contracts in use today (charter parties, contracts of affreightment, insurance policies, etc.) were not drafted with consideration to avian flu. Thus, the parties, arbitrators, or the courts may have to ulti- mately determine the allocation of the financial conse- quences without benefit of knowing what the parties contemplated beforehand.

Fortunately, the maritime community has some time to plan ahead to address the challenges posed by the risk of an avian flu pandemic. The impact can be min- imized through good contingency planning. The finan- cial consequences can be allocated through careful drafting of legal instruments.

Carriers and shippers should develop alternatives that can be utilized if some ports are closed. Ship oper- ators and managers should carefully monitor the health of their crew members and shoreside employees and consider alternative crewing sources that can provide qualified seamen on relatively short notice to replace regular crew members who might fall ill or stay home to care for their families.

Charter parties, contracts of affreightment, and insur- ance policies should be redrafted to allocate the risks posed by the avian flu pandemic. In the long run, it matters less where the risk falls than that it be clearly allocated beforehand. Once the risk is allocated, par- ties will know who has the primary duty of preparation and who needs to obtain additional insurance or other coverage to protect their interests. 16

Government Update

Dennis L. Bryant, Senior Maritime

Counsel at the law firm of Holland &

Knight, Washington, D.C., is a con- tributing editor of MR/EN.

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MaritimeReporter

Governmental restrictions (sometimes called "restraint of

Princes") and other delays will have major financial consequences.

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