The Swedish Maritime Code 1994

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The Swedish Maritime Code 1994

 

Preface【1】

The Swedish Maritime Code from 1994 was inspired by a desire to remodel the carriage of goods provisions of the old Code from 1891.Only two chapters are completely new, i.e. chapters 13 and 14 on carriage of general cargo and on chartering of ships. Although Sweden formally adheres to the Hague-Visby Rules, the former chapter is mostly based upon the 1978 Hamburg Rules though retaining certain salient principles considered by the legislator to be alone essential for the continued formal adherence to the Hague-Visby regulation.

The said new chapters, 13 and 14, have been conceived in close cooperation with Denmark, Finland and Norway while Iceland has not participated and retains the old Nordic Maritime Code. While the said chapters are virtually identical in contents, the section numbering of the new Codes varies, because Norway and Denmark have a running section numbering all through the Code, while the Finnish and Swedish texts have new section numbers for each chapter To increase the utility of this volume, we have entered the Norwegian and Danish section numbers in brackets in the said two chapters. We have also included a table (appendix 2) converting the Norwegian (Danish) sections to Swedish (Finnish) ones. There is also a table (appendix 1) converting the older Swedish section numbers to the newer ones.

Chapter 4 on arrest of ships implements the Arrest Convention and was previously embodied in a special Act on the Arrest of Ships, which has been incorporated into the Swedish Code. This has been translated for the present volume. A similar incor- poration is planned with chapter 10, which now merely refers to the Oil Liability Act (1973.ll98) but is intended to have this Act incorporated in about a year’s time. The planned law is not translated here but in substance embodies the 1992 London Protocol to the Convention on Civil Liability for Oil Pollution.

In other respects the Code is mostly identical to the previous Code, although it is restowed and fitted with new chapter and section numbers. In this respect we have used our translation of the previous Code, produced with the support of the Emil Heijne and Kaj Pineus Foundations.

Like its predecessor, the present version of the Code is a parallell edition, with the Swedish text verso and the English one recto. The preparation and translation has been performed within the Axel Ax:son Johnson institute for Maritime Law, the Swedish text and the rearrangement of the previous English text being achieved by institute Assistant Anders Beijer and the translation by Professor Hugo Tiberg whereupon the text has been submitted to Mr David Canter of the foreign office Translation Section. For the printing of this book we have received special support from Assurance foreningen Skuld, The Swedish Maritime Law Association and The Swedish Club. As always. the Axel Ax: son Johnson Foundation has supported our activities and their facilited the publication of this work also. The institute expresses its sincere thanks for all these contributions.

Stockholm, February 1995

Hugo Tiberg Anders Beijer

General

Chapter 1. On Vessels

The conscious use of the term “vessel” rather than “ship” derives from the code’s dicotomy of “ship” (larger than 12 m length and 4 m beam) and “boat” (either one of these measures not attained), to which “vessel” is the superior classification covering both. Consequently a “vessel owner” is an owner of either a ship or a boat and is used where both are intended rather than the more familiar “shipowner”.

Section 10

Condemnation of a ship is an internationally accepted notion. Literally, the Swedish text means that the vessel is “declared beyond repair”.

Chapter 2. Registry of Ships

The distinction between “Registry” and “registration” is not wholly consistent in vernacular English legislation. I use “registry” as the abstract notion as “matters concerned with entries in the Register” and the fact of belonging to a Register (“Swedish Registry”) while “registra- tion” is used for the act of entering a ship into the relevant Register.

Section 2

According to the Swedish text one “declares” (“anmaler”) a vessel for registration but “applies” for inscription of one’s title as owner. Similarly under section 306, a vessel owner “declares” or “reports” his intention to let an incident which has occurred be investigated in the form of a Maritime Declaration. But the distinction between an “application” and a “declaration” greatly complicates a text which is complex enough without this extra ingredient. The distinction is also hard to perceive for one not familiar with it and becomes distinctly objectionable when it is found in section 31 that even a “declaration” may be refused! I have preferred to use “apply” and “application” for both expressions.

On the other hand. I have chosen to retain the distinction between “registration” of a vessel and “inscription” of title and rights, which has substantive significance.

Section 19

“Decision... no longer open to appeal”. The Swedish “lagakraftvunnen” literally means that the decision has “gained legal force”, which implies that it may not be challenged by ordinary appeal either because the time of application has expired or because the judgement was passed by the final instance competent to decide on the issue. To avoid repetition, I have sometimes chosen “become unappealable” and in some cases “become finally binding”.

Section 23

Security measure. There are various methods by which Swedish law secures a creditor’s claim. As a general term I have chosen “security measure”, and a specific facility particularly benefiting claims for taxes, customs dues and other public claims is designated by express reference (“cuch as provided for public dues”).

Section 28

Attachment etc. While the general term “security measure” includes injunctive measures and does not presuppose the taking of any property into custody, the Swedish “kvarstad” is used to indicate an action where the aim basically is to take possession of the property, although the rule is not wholly without exceptions. I have chosen “arrest” for this kind of measure when it concerns ships and cargo but “attachment” when it concerns non-maritime property “Ut- matning” is a decision by which the property is taken into execution for a later sale in satisfaction of a judgment. I have found “seizure” too general for this and prefer “distraint” in respect of both maritime and non-maritime property.

Chapter 3.  Mortgages and Maritime Liens

Sections 1 and 2

Hypothek and mortgage. The Swedish mortgage is created in two stages. The first stage is to create the tool for mortgaging by reserving a space for the intended security (“inscription”, Sw. “inteckning”) and creating a token (“Deed of mortgage”, Sw. “pantbrey”) to evidence this. This process is here called “hypotecation”, and it creates a charge for the owner’s benefit (“owner’s hypothec”, Sw. “agarhypotek”, section 11). The next stage is to pledge the token, which is done in the manner of chattel pledging, i.e. by handing the Deed of Mortgage to the creditor as security This process is here called “mortgaging”. The “mortgage” in this translation is thus the completed security and not the reservation.

Section 36

Like in chapters 7 and 9 it has been necessary to distinguish between the “owner” who is also the operator (“redare”) and one who is merely owner, and this has been done by translating the former into “owner or operator” and the latter into “owner”.

Chapter 4. Arrest of vessels

Section 3

In the second paragraph, item 14, the term “sender’’ is used in the peculiar sense as defined in chapter 13 section 1, i.e. as the person entering into a contract with a carrier for the carriage of general cargo by sea, while “shipper’’ is used similarly for the person delivering goods for carriage. Since both terms are used together I have not considered it necessary to distinguish them here any more than the Swedish text does.

Chapter 5. Shipping partnership

Section 7

The Swedish “rostetal” may be translated literally into “number of votes”, but the expression does not really suggest the counting of votes by full numbers. For clarity I have chosen the somewhat cumbersome “weight accorded to each vote”.

Chapters 7 and 9. Liability and Limitation of Liability

The Liability Convention and all international discussions concern “ship-owner’s” liability, though the Scandinavian texts speak of the “redare” (Germ. Reeder, Fr Armateur) which is the operator and normally ship-owner Internationally, the “operator” is seen as an exceptional occurrence, while the Swedish equivalent is the normal expression for one operating and usually also owning ships. In the short seventh chapter I have used “owner or operator” throughout, while in the 9th chapter the notion of operator is expanded by a definition in section 1 and so can be used throughout the chapter.

Chapter 13. Carriage of general cargo

Section 1

The Code’s definition and use of the terms “sender” (“avsandare”) and “shipper” (“avlastare”) is not in accordance with practice-in particular, the person defined as “sender” may sometimes be the consignee of the goods-but the incongruity is equally glaring in the original, and it has only been possible to use a literal translation throughout.

Section 10

Although the Code uses “recei- ver”(“mottagare”) for the person receiving the goods after carriage, “receiving” (“ta emot”) is used for a carrier’s taking the goods into custody, and “delivery” for his handing the goods out to the “receiver”. I have followed this usage.

Section 11

“Renunciation” is here used for the Swedish “frantradande”, though the latter suggests an allowed “withdrawal” from the contract. However, since this action usually exposes the “withdrawing” party to damages, I have found the more familiar “renounce” and “renuncia- tion” sufficiently apt as a general term.

Sections 18, 19 and passim

Consignee or receiver. The Swedish term “mottagare” means both consignee and actual receiver I have used “consignee” when an intended or contractual recipient is meant but “receiver” for one actually receiving cargo when it is immaterial whether he is named in a bill of lading or otherwise designated to receive the cargo.

Chapter 14. Chartering of vessels

Section 7

In the original, the carrier under a voyage charter is called “voyage carrier” throughout. This sounds unusual in English, and “carrier” is chosen throughout the chapter.

Section 8

The voyage charter contract is called “the charter agreement” throughout the original text. I have preferred “charterparty” throughout.

Section 32 and passim  The term “renunciation’’ is chosen for “frantra- dande”(“withdrawal”) for consistency with the terminology in section 11 above, although it may sound unusual that renunciation is sometimes “allowed”.

Section 52 et seq. For the “owner” in a time charter relation, the Swedish original uses “time carrier”. This translation retains “carrier” throughout but without “time”, which sounds unnatural in English. Like for voyage charters, the original’s “charter agreement” has been exchanged for “charterparty” throughout.

Chapter 18. Log books etc.

In this chapter “operator” has been used throughout for “redare”, although the term may refer to one who is also an owner.

Hugo Tiberg

 

Part I  Vessels

Chapter 1. On Vessels Nationality

Section 1

A vessel shall be considered to be Swedish and entitled to fly the Swedish flag if owned to the extent of more than one half by a Swedish national or a Swedish legal entity The Government of, upon governmental authorization, the National Maritime Administration, may grant Swedish nationality and the right to fly the Swedish flag to other ships whose operation is essentially under Swedish control or whose owner has his permanent residence in Sweden.

The Government shall issue regulations concerning documents of nationality for Swedish vessels and may prescribe what is to be observed with regard to such documents as well as prohibit the operation of a vessel subject to registration without a valid document of nationality.

Registry of vessels

Section 2

A vessel having a length over all of at least twelve metres and a maximum breadth of at least four metres shall be designated as a ship. Other vessels shall be designated as boats.

For Swedish ships there shall be kept a Register of Ships. There shall be kept a Register of Boats according to the Act (1979:377) on Registry of Boats for Commercial Employment, etc. For ships under construction there shall be kept a Register of Ships under Construction.

The Register of Ships, the Register of Boats and the Register of Ships under Construction shall be kept by the Authority appointed by the Government (the Register Authority). The Register Authority shall be headed by a Court Registrar. He shall be learned in law The Government may ordain that the registers shall be kept by electronic data processing.

Appurtenances to vessels

Section 3

To a vessel, including her hull and steering gear, belong fixed fittings and other equipment for the lasting use of the vessel as well as such spare parts as are permanently kept on board, always provided that the vessel is fitted therewith in her owner’s interest.

Nevertheless, equipment for radio communication or navigation shall not be considered as such appurtenances if another than the owner of the vessel owns such property or is entitled thereto on account of a reservation of title or other condition equivalent to such reservation.

Section 4

The provisions of section 3 have corresponding application to vessels under construction. For this purpose a registered shipbuilding shall be deemed to be fitted with materials, machinery and other equipment which are within the precincts of the builder’s yard and which by marking or otherwise distinctly appear as intended to be incorporated into the ship.

Section 5

Rights to appurtenances to vessels or vessels under construction may not be exercised separately even against the owner of the vessel or vessel under construction.

An assignment of an appurtenance to a vessel or vessel under construction has no effect against third parties until such appurtenance is separate from the vessel or building in such a way that the vessel or building can no longer be considered to be fitted therewith.

Identification

Section 6

Any ship entered in the Register of Ships shall have a name. The name shall be determined by the owner It must differ distinctly from other ship names in the register and must not interfere unduly with a distinctive name pattern employed by any other ship owner.

The Register Authority may prescribe a certain period for the owner to decide a name which fulfils the requirements in the first paragraph. The Authority may sanction the order by a fine.

The name may be changed only if the ship, or more than one half thereof, passes to a new owner or if there are special reasons.

Section 7

A Swedish vessel shall have her home port in Sweden. The owner shall designate the home port.

If no home port has been notified to the Register Authority the owner’s domicile or, if the owner has no domicile in Sweden or the vessel is owned by more than one person, Stockholm shall be the vessel’s home port.

Section 8

Any vessel entered into the Register of Ships or Register of Boats shall have an identification signal. For ships the signal shall consist of signal letters and for boats it shall consist of signal letters and figures. A vessel’s identity marks shall correspond as far as possible to her identification signal.

The Government shall issue further provisions concerning the identification of vessels and may decide on the marking of registered vessels, their boats and gear as well as prohibit the operation of any registered vessel without the prescribed marks.

Seaworthiness etc.

Section 9

A vessel, when in operation, shall be seaworthy, which also includes being duly fitted for the prevention of ill-health and accidents, safely manned, sufficiently victualled and equipped and so loaded and ballasted that the safety of the vessel and of lives or goods on board is not imperilled.

Safety on board vessels is governed by special provisions.

Section 10

A vessel which has sustained damage shall be condemnable as a total loss, not only when repairs are impossible of, if they require removal of the ship, such removal is impossible, but also when the vessel is not worth being repaired.

At the owner’s request a vessel which is such a constructive total loss shall be sold as in execution for a claim having first priority.

Rules on survey for the con- demnation of vessels are given in chapter 18.

Chapter 2. Registry of Ships

Registration

Section 1

A Swedish ship shall be registered in the Register of Ships. However, the Government may ordain that any ship owned by the State and appropriated exclusively to Government and not commercial service shall not be so registered.

A ship under construction in Sweden may be entered into the Register of Ships under Construction. Such registration may take place before the construction work has begun, provided the building can be adequately identified by means of yard number, drawings or otherwise.

A ship shall be registered under her identification signal. A ship under construction shall be identified under signal letters. These shall be assigned to the completed ship as her identification signal when she is entered into the Register of Ships. A register designation once assigned may not be changed.

Section 2

Any person who has acquired title to a ship which in his hands is subject to registration but which has not yet been entered into the Register of Ships shall, within one month of the acquisition, apply for registration of the ship. If his right is subject to a reservation of title or a condition equivalent to such reservation, the application shall be made within one month after such reservation or condition has ceased to apply.

The owner of a ship which is Swedish and which is under construction shall, within six months after the ship has been launched, apply for registration of the ship in the Register of Ships. The Register Authority may upon special cause prolong the said period.

It is for the owner to apply for registration of a shipbuilding.

Inscription of title

Section 3

Title to a ship or a shipbuilding shall be inscribed on the basis of registration of the ship or shipbuilding according to section 1. Such inscription of title and the attendant entries in the Register of Ships under Construction shall be transferred to the Register of Ships if the building is transferred to that register as a ship.

The provisions of the preceding paragraph as well as those of sections 4 and 8-28 concerning ships or shipbuildings shall apply correspond- ingly to shares of such property.

Section 4

Any person who has acquired title to a ship or a registered shipbuilding shall apply for inscription of that title within the time prescribed in section 2 first paragraph. For a shipbuilding, an application for deregistration may instead be filed according to section 6. Any person who requests registration according to section 2 shall be deemed thereby also to apply for inscription of his title.

The estate of a deceased person need not apply for inscription of its title to a ship or a registered shipbuilding which belonged to the deceased, unless the estate transfers the property to others. Such inscription shall be applied for within one month from the transfer or, if the Estate Inventory Deed has not been registered at that time, from the registration of such Inventory Deed. A spouse to whom a ship or registered shipbuilding has been allotted at the distribution of marital property need apply for the registration of his right only if the property belonged to the other spouse.

Any person who has acquired a ship or shipbuilding subject to a reservation of title or to a condition equivalent to such reservation is entitled to have his conditional title inscribed. If the transferee loses his title through the reservation or condition being invoked, the inscription shall be cancelled on application by the transferor or transferee.

If, in a case such as described in the third paragraph, the right of the transferee or the transferor passes to another person, the provisions of the said paragraph and other provisions of the present chapter concerning inscription of title and the effect thereof shall have corresponding application.

Section 5

Ship names differing distinctly from other ship names in the register may be reserved by inscription in the Register of Ships, on application of any person who needs such reservation. If more than one person should on the same registration day apply for inscription of names which do not distinctly differ from one another, the Register Authority shall decide on their priority as is found reasonable.

An inscribed reservation of a ship name shall be removed from the register when the ship has been registered under that name. It shall also be removed if the person in whose favour it has been inscribed or his successor so requests, or if the name has not during five years been utilized for a registered ship.

Deregistration

Section 6

A registered ship shall be removed from the register if-

1. she has been wrecked, broken up or otherwise destroyed,

2. she has disappeared or been abandoned at sea and has not since been heard of during three months,

3. she has ceased to be Swedish, or

4. she has been rebuilt or modified so as no longer to be a ship or, without such change, is found not to be a ship.

A registered shipbuilding shall be removed from the register if it is transferred as a ship to the Register of Ships or if the owner requests deregistration. Item 4 in the preceding paragraph shall have corresponding application to ship- buildings.

In a case such as referred to in the first paragraph or in the second sentence of the second paragraph, the owner shall within one month submit to the Register Authority his application for the deregistration of the property If a ship has ceased to be Swedish through change of ownership, the duty to apply for deregistration shall rest upon the previous and the new owner alike.

Section 7

If a ship which is to be dere- gistered according to item 3 of the first paragraph of section 6 is owned by more than one person and the ship can be maintained Swedish by a part owner exercising the right referred to in chapter 5 section 13 or 16 against any other part owner, the ship shall not be struck off the Register of Ships as long as such right can be exercised. If the ship remains Swedish she shall not be deregistered. Instead the transfer which caused the deregistration application shall be entered into the register.

If a ship or shipbuilding which is to be deregistered is subject to an inscribed mortgage, the property may not be removed from the register until all creditors whose claims are secured by any such mortgage have consented thereto in writing and have returned their Deeds of Mortgage.

Nevertheless, a shipbuilding may be deregistered for transfer to the Register of Ships without the consent prescribed in the foregoing paragraph. For deregistration of a ship according to item 4 of the first paragraph of section 6 or of a shipbuilding according to the second sentence of the second paragraph of section 6 consent is not needed from a mortgagee who has failed to bring an action to enforce his claim in the ship or shipbuilding within one month after he was notified by the Register Authority of the ground for deregistration.

Effects of registration and inscription

Section 8

Notwithstanding the registration of a ship or shipbuilding or the inscription of title thereto, the qualification of the property as a proper subject of the entry may be tried.

Whether a transfer on which an inscription or deregistration is based is valid or not or otherwise infringes the right of any person may be tried notwithstanding the inscription or deregistration.

Section 9

If a ship or shipbuilding has been transferred and inscription of the new owner’s title has been applied for, the property may not after the expiry of the inscription day on which the application was made be subjected to enforcement of any other claim against the transferor than one secured by a lien or mortgage upon the property or a right of retention therein.

Section 10

If a ship or shipbuilding has been transferred by one who was not the true owner, the transfer shall nevertheless be valid, provided the transferor’s title was inscribed when the transfer took place and the transferee neither knew nor ought to have known, when applying for inscription, that the transferor was not the true owner. These provisions shall have corresponding application in respect of a transfer from one who was the true owner but who, owing to a condition to which his title was subject, did not have the right to dispose of the property by such transfer.

Nevertheless, a good faith acquisi- tion shall not be valid if, on the inscription day on which the entry of such acquisition is applied for, there is entertained by the Register the issue of inscription or other entry of a defect in the transferor’s right of disposition or of an action having been brought for the rescission or cancellation of a transfer of the property or for the establishment of a superior title there- to.

The effect of a forced sale is governed by special provisions.

Section 11

An action for establishing superior title to a ship or shipbuilding may lawfully be brought against the person whose title was last inscribed, even if he had already transferred the property before the action was instituted. The transferee of the property shall have the same procedural status as if the transfer had taken place during the legal proceedings.

The preceding paragraph shall have corresponding application where a person seeks to enforce, against a ship or shipbuilding, a claim secured by a lien or mortgage upon the property or a right of retention therein. If a dispute concerning title is noted in the register, the enforcement action may instead be brought against an alleged owner in possession of the ship or shipbuilding.

Section 12

The legal effect of an application for, or grant of, inscription as provided in sections 9 and 10 shall survive the deregistration of the property.

The legal effect of an application for inscription as provided in sections 9 and 10 shall expire if the application is refused.

The provisions of sections 9-11 and the preceding paragraphs of the present section concerning legal effects of an application for inscription shall apply correspondingly in respect of an application for deregistration after transfer of the property.

Section 13

An entry in the Register of Ships or in the Register of Ships under Construction shall, after the termi- nation of the inscription day on which the matter of the entry was entertained, be deemed to be known to any person whose right to the ship or shipbuilding depends on good faith concerning the subject of the entry This shall not apply to situations referred to in chapter 3 section 10.

Section 14

If title to a vessel registered in a foreign State or to a vessel under construction in a foreign. State has been entered into a register of such State in accordance with the national law of that State. The title shall be recognized in Sweden and have the effects of an inscription under the law of that State.

Registration and inscription Procedure

Section 15

Matters of registry are such as concern-

1. the registration or deregistration of a ship or shipbuilding,

2. the inscription of title to a ship or shipbuilding,

3. the inscription of a mortgage on a ship or shipbuilding,

4. the inscription of a reservation of a ship name, and

5. any other entry into the Register of Ships or the Register of Ships under Construction according to any Act of Parliament or other legal provision.

A matter of registry shall be entertained on an inscription day Such a day is until noon on every Monday, Tuesday, Wednesday, Thursday and Friday which is not a public holiday Midsummer Eve, Christmas Eve and New Year’s Eve shall be considered equal to such holidays. An application submitted after noon shall be deemed to have been made on the following inscription day.

The procedure in matters of registry shall be governed by the rules on civil actions as far as pertinent except as provided in this Code. The Government or Authority appointed by the Government shall issue further regulations concerning the registration procedure and may impose a duty upon owners of ships and builders and owners of registered shipbuildings to supply the Register Authority with information needed for the proper administration of the registers.

Section 16

The Register Authority shall keep a diary of matters of registry. All documents in such matters shall be filed separately.

If an applicant or any other person has given information or made any statement of importance for the examination of the matter, or if any special investigation has been con- ducted, this shall be recorded in the diary or the file. In the diary or file shall also be recorded any summons, orders and other decisions which are not to be entered into the register.

Fines which the Register Authority prescribes by virtue of this Code fall to be imposed by the Authority.

Section 17

A decision involving the accept- ance, refusal, expiry or postponement of an application in a matter of registry shall be noted in the register. If it is decided not to accept an application, the grounds for the decision shall be stated in the diary or file.

A decision which is to be entered into the register shall be regarded as issued through the entry and shall be deemed to have the contents appearing from the register.

Section 18

If a matter of registry is decided against the applicant or any other person heard in the matter, that person shall be promptly notified of the decision. A decision whereby a transfer has been inscribed shall always be notified the person last inscribed as owner.

A notice according to the preceding paragraph shall state the grounds for the decision as recorded in the diary or file as well as the requirements for lodging an appeal.

Section 19

Appeal against a decision in a matter of registry lies to the Court of Appeal. The petition shall be addressed to the Register Authority.

Appeal against a final decision shall be lodged within four weeks from the inscription day to which the decision is referable. In other respects the appeal shall be governed by the rules on appeal in the Procedural Code.

An appeal against a decision entered in the register shall be noted therein. When the final decision on the appeal is no longer open to appeal, the content of the decision shall be recorded in the register.

If, according to the decision of a superior Court, the Register Authority shall reopen a matter of registry, this shall be done without delay after the Authority has received that decision.

Section 20

An application in a matter of registry shall be made in writing unless supported by a bill of sale or other appropriate document. If the duty of applying for registration or deregistration of a ship or a ship under construction or for inscription of title acquired to such property is not performed within the time prescribed, the Register Authority shall order the defaulter to perform his duty The Authority may sanction the order by a fine. If according to section 6 there is cause for deregistration of a registered ship or shipbuilding, the Register Authority may take steps for deregistration ex officio.

If the granting of an application for the inscription of a title is dependent on a previous owner’s registration or inscription, the new owner may make the necessary application on behalf of the previous owner. The latter shall provide any documents in his possession which may be needed for the purpose. What is said of an application for inscription shall have corresponding application to an application for deregistration on account of a transfer.

Section 21

If an application in a matter of registry is not to be immediately rejected according to this Code, the decision may be postponed until a specified later inscription day if required for examination of the matter.

If the decision in a matter of registry is postponed, the applicant may be ordered to provide the necessary information or to appear in person or by attorney before the Register Authority Persons other than the applicant may also be heard and ordered to appear. The Authority may sanction all such orders by a fine. If the applicant does not comply with an order, his application may annulled. The order shall contain a notice to that effect.

A decision in a matter of registry may also be postponed until a later inscription day if the nature or scope of the matter prevents its being conveniently decided immediately if the decision is postponed on such grounds the matter shall be reconsidered not later than the second inscription day following the one on which the application was made.

Section 22

If there is cause to assume that a transfer invoked in a matter of registry is void or unenforceable for other reasons, or that the measure requested would otherwise infringe the right of any other person, the person whose right is affected shall be given the opportunity to submit a statement. The same shall apply if there is uncertainty concerning conditions on which a title is dependent.

If a transfer invoked in a matter of registry is based on a will or judgement or proceedings which are no longer open to appeal, or if an action is pending for the rescission or annulment of a transfer of the property concerned or for superior title to the property, the decision of the matter of registry shall be postponed until the other circumstance has been finally settled.

If the applicant’s right is otherwise contentious, the applicant may be ordered to bring an action before a Court within a specified period of time. If the order is not complied with, the application may be avoided. A reminder thereof shall be stated in the order.

Section 23

An application for registration of or inscription of title to a ship or a ship under construction shall be refused if-

1. the first paragraph of section 20 has not been complied with,

2. the property cannot be registered according to section 1,

3. the applicant does not prove his title,

4. the previous owner’s right is not inscribed in the register, although it could have been so inscribed, provided the applicant’s title was not based on a forced sale,

5. the transfer infringes a condition for the transferor’s right to dispose of the property, provided the transferor’s title was not inscribed when the transfer took place or, although it was so inscribed, the condition was then recorded in the register or was recorded there on the same inscription day as that on which the application was made,

6. the transferor had already transferred the property to another, provided the transferor’s title was not inscribed when the applicant acquired his title or, although it was so inscribed, inscription for the previous acquisition of title was applied for on the same inscription day,

7. the property has become subject to arrest or such security measure as is provided for public dues in respect of a claim against the transferor, the recording of which has been entertained by the Authority no later than the inscription day when the application was made or the transferor was declared bankrupt,

8. the property has been sold by forced sale to another than the applicant,

9. title has been acquired through such gift between spouses as has not been registered according to Chapter 16 of the Matrimonial Code, or

10. the acquisition is clearly invalid or unenforceable.

The provisions of items 5 to 7 of the preceding paragraph do not bar the inscription of a title for which conditional inscription has already been granted.

Section 24

An application under section 4 for removal of a conditional title shall be refused if the first paragraph of section 20 has not been complied with or if the transferee is not shown to have lost his right.

An application for deregistration of a ship or shipbuilding shall be refused if the first paragraph of section 20 has not been complied with or if there is no ground under section 6 for deregistration. In the event of deregistration due to a change of ownership, the provisions of section 23 first paragraph items 4-10 and second paragraph shall have corresponding application.

An application for the inscription or deletion of a ship name shall be refused if section 20 first paragraph has not been complied with or the prerequisites prescribed for the measure in section 5 are not present.

Section 25

If a foreign ship has become Swedish, she may be entered into the ship register only if it is shown that she is not registered in an equivalent register in her former homeland or will be deleted from such register either on the day on which she will be registered in this country or with effect as from that day.

If the ship was new-built abroad, it must also be shown that no right in respect of the ship is inscribed in a Register of Ships under Construction in her former homeland, or that any such right will be deleted from such register either on the day on which the ship will be registered in this country or with effect as from that day This provision shall have corresponding application to registration in the Swedish Register of Ships under Construction of a shipbuilding acquired from abroad.

If a ship or shipbuilding is to be deregistered for the purpose of registration abroad, the Register Authority shall decide, upon the applicant’s request, that the property shall be deregistered on the day on which it is entered into the foreign register. Such deregistration takes effect as from the day of the new registration.

Section 26

If necessary for the due co-ordination with any decision by a foreign Register Authority, registration or deregistration may be regarded as made on an inscription day even though the foreign decision is given or proof thereof presented after the end of the relevant inscription day, provided that it occurs on the same calendar day.

Section 27

If at the inscription of a title to a ship or shipbuilding it is found that the transfer is subject to a reservation of title or an equivalent condition, the reservation or condition shall also be registered.

If at the inscription or thereafter it appears that the transfer is subject to any other condition restricting the transferee’s right to transfer or mortgage the property, or that his right in such respects is limited by another’s right to use the property according to a will, this shall be recorded in the register.

Section 28

Entry into the Register of Ships or the Register of Ships under Cons- truction shall be made when-

1. an action has been brought for the cancellation or annulment of a transfer of a registered ship or shipbuilding or for superior title to such property or otherwise concerning a matter of inscription,

2. a lawsuit such as referred to under item 1 has been terminated by a judgement or a decision which is not open to appeal,

3. the owner of a registered ship or shipbuilding has been declared bankrupt,

4. a registered ship or ship- building or a registered title to such property has become subject to arrest, such security measure as is provided for public dues or distraint, or when a trustee in bankruptcy has applied for the forced sale of a registered ship or shipbuilding, or when the owner of a registered ship has applied for the forced sale of the ship according to chapter 1 section 10, second paragraph, or when the property has been sold by forced sale,

5. a decision referred to under items 3 or 4 concerning bankruptcy, arrest, a security measure provided for public dues or distraint has been annulled or cancelled or the matter of a forced sale of a registered shipbuilding or an inscribed title thereto has otherwise ceased to be relevant,

6. a ship or shipbuilding shall be deregistered upon any of the grounds set out in section 6 but the deregistration is barred according to section 7, or

7. a decision has been made according to section 25 that a ship or shipbuilding shall be removed from the register on the day on which registration is effected abroad.

If it is provided in any other law or statutory provision that a particular circumstance shall be recorded in the Register of Ships or the Register of Ships under Construction this shall apply.

Particulars entered into the Register of Ships under Construction shall be transferred to the Register of Ships if the Ship under Construction is transferred to the latter Register as a ship. An entry in the register shall be deleted if it clearly no longer has any significance.

Section 29

If an entry in the Register of Ships or the Register of Ships under Construction is found to contain any clear inaccuracy due to an error of writing or other such mistake by the registration authority or any other person, the entry shall be rectified. This shall have corresponding applica- tion to any clear inaccuracy due to a technical defect. If the rectify- cation may prejudice the owner or holder of a Deed of Registered Mortgage, the mutual priority of the rights concerned shall be determined as is deemed reasonable. Any known party affected, as well as the Authority referred to in chapter 22 section 6, shall be given the opportunity to submit a statement.

A decision of rectification shall be rendered by means of entry into the register. The grounds for the decision shall be recorded in the diary or file. Certificates or documents which have been issued on the basis of the previous entry shall be replaced by new ones. The previous documents shall be reclaimed, rendered unservice- able and retained by the Register Authority. The holder of such a document shall be obliged to surrender it for this purpose. The Authority may sanction an order to fulfil such duty by a fine.

Appeal against a rectification decision may be lodged also by the Authority referred to in chapter 22 section 6.

Chapter 3. On Ship Mortgages and Maritime Liens

SHIP MORTGAGES

Hypothecation and mortgage

Section 1

An owner of a registered ship or ship building who wants to mortgage the ship or building to provide security for a claim, has a right, as prescribed in this chapter, to obtain inscription with the Register Authority of a certain amount in Swedish or foreign currency or in special drawing rights (SDR) as a hypothec in the property The meaning of SDR is defined in chapter 22 section 3. The Authority’s document evidenc- ing the hypothec is called a Deed of Mortgage.

Inscription shall not be permitted in a share of a ship or shipbuilding, nor as a fleet hypothec in several ships or shipbuildings.

Section 2

A mortgage is granted by the owner of the ship or shipbuilding, having applied for inscription of his title to the property, delivering the Deed of Mortgage as a pledge for the claim.

Provisions on the owner’s right when a Deed of Mortgage is not, or is only partly, utilized for pledging (owner’s mortgage) are laid down in section 11.

Section 3

A mortgage in a ship or a shipbuilding shall attach also to any indemnity for damage to the property due on account of insurance or otherwise.

Effects of mortgage

Section 4

When a competent Authority, following the forced sale of a ship or shipbuilding or in any other case, distributes assets between claimants in a ship or a shipbuilding, those having hypothecary rights in the property are entitled to payment, with the priority prescribed in this Code or other legislation, to the amount of the Deed of Mortgage. In so far as this does not suffice, the claimant shall be entitled to an additional amount. This shall not exceed fifteen per cent of the amount of the Deed of Mortgage including interest from the day of the distraint or filing of the bankruptcy petition or deposition of the assets to be distributed. The interest shall be calculated per annum according to the prime rate determined by the National Bank augmented by four per cent. Changes of the prime rate occurring after the establishment of the list of claimants shall not be taken into account.

If several Deeds of Mortgage have been pledged for a claim and if the Deeds have the same rank or rank in immediate succession, the provisions in the first paragraph on the amount of the Deed of Mortgage shall apply to the aggregate of all the relevant Deeds of Mortgage.

A claimant’s right to payment shall not include the additional amount if the Deed of Mortgage has been distrained at the claimant’s request or if the Deed of Mortgage is in his hands by way of repledging.

Section 5

A mortgagee is entitled to pay- ment according to section 4 even if the claim is time barred or has lapsed for failure to present it after a public call for unknown creditors.

Section 6

If a ship or a shipbuilding deteriorates from want of proper care or a marine accident or other comparable cause, thereby signify- cantly impairing the value of the security, the mortgagee may enforce his right in the property even though the claim has not matured. The same shall apply if a ship or shipbuilding is to be deregistered according to chapter 2 section 6, except for a shipbuilding which is to be transferred to the ship register as a ship.

Mortgaging in certain situations

Section 7

If the holder of the title to a ship or shipbuilding loses his title after challenge by a rightful owner, any mortgaging which has taken place after the property passed from the rightful owner’s hands shall be void, except as provided in section 9. The same shall have corresponding application where title to a ship or a shipbuilding is annulled.

Section 8

If a ship or shipbuilding is mortgaged contrary to a condition of the owner’s title restricting his right to dispose of the property, the transaction is void except as provided in section 9.

Section 9

If a ship or shipbuilding has been mortgaged by one who was not the true owner of the property, the mortgage shall nevertheless be valid if the mortgagor’s title to the property was inscribed in the register or became so inscribed upon application made before the mortgaging, provided the creditor or later assignee of the claim neither knew or ought to have known at the time of acquisition that the mortgagor was not the true owner This shall have corresponding application to acquisition of security through a mortgage effected by one who was the true owner but who on account of a condition attaching to his title lacked the right to mortgage the property.

Section 10

If a mortgage has been granted as security for a claim which has not yet arisen and if at the time of delivering the Deed of Mortgage the mortgagor had authority to effect the mortgage or if the conditions where then such as described in section 9, the mortgage shall effectively secure the claim even if the latter arose while the mortgagor was no longer owner of the property having the right to dispose of it by mortgaging. This shall not apply if, before the accrual of the claim, the creditor had notice that the mortgagor no longer had authority to mortgage the property.

The provisions of the first paragraph shall apply also when a Deed of Mortgage secures a claim which is later substituted by another claim without any changes other than are normal for substitutions of the kind in question.

The Swedish Maritime Code-In Swedish and English

Owner’s hypothec

Section 11

If a Deed of Mortgage is not delivered as a pledge for a claim, the owner of the ship or ship building shall be entitled, at such distribution of assets as is referred to in section 4, to receive payment out of the assets according to the rank of the hypothec under this Code and other applicable legislation and in the amount of the Deed of Mortgage. If a Deed of Mortgage has been delivered as a pledge for a claim but the claim is lesser than the amount of the Deed, the owner of the ship or shipbuilding is entitled to receive the balance out of the assets.

Priority between hypothecs

Section 12

A registered hypothec shall have priority in relation to other hypothecs in the order in which inscription of the respective hypothecs is applied for. Inscriptions applied for on the same inscription day shall have equal rights.

Section 13

Provisions on determination of the mutual ranking of hypothecs applied for on the same day otherwise than per section 12 and on alteration of the ranking by postponement are laid down in sections 27 and 30.

Section 14

The rank of a hypothec in a shipbuilding shall be retained after the building’s transference to the ship register.

Section 15

The ranking of registered hypothecs in relation to other rights is determined by the Priorities Act (1970:979).

Certain provisions on the validity of hypothecs and Deeds of Mortgage

Section 16

If a ship is to be deregistered on account of being wrecked, demolished or otherwise destroyed or having disappeared or been abandoned at sea, any hypothec upon the ship shall expire after ten years have passed from the day when the deregistration was affected according to chapter 2 section 28 first paragraph item 6. Such a hypothec may, however, be renewed and extended for another ten years if requested by the creditor or the shipowner while the hypothec was still in force, and can thereafter be further extended in the same manner for ten years at a time.

Section 17

If a ship or shipbuilding is sold by forced sale in Sweden, any hypothec therein shall, after the sale has become final and the purchase money has been paid, be without effect in respect of amounts which the purchaser has not allowed to continue to attach to the property against a deduction from the purchase price of the mortgagor’s claim.

The forced sale of a ship or shipbuilding in a foreign State shall be recognized and have the effect stated in the first paragraph, provided the property was in the jurisdiction of that State and the sale was effected in accordance with the law of that State and the provisions of the 1967 International Convention on Maritime Liens and Mortgages.

Section 18

If a registered hypothec becomes wholly or partly annulled the same shall be true of the Deed of Mortgage.

The annulment by mortification of a Deed of Mortgage which has been lost shall not affect the hypothecation.

Foreign mortgages

Section 19

A mortgage or other such right granted upon a foreign vessel shall be recognized in Sweden provided that-

1. the right has been effected and registered in accordance with the law of the State where the vessel is registered,

2. the register and any instrument required to be deposited in connection therewith under the law of the State of registry are open to the public and that extracts of the register and copies of such instruments are obtainable from the register, and

3. the register or any instruments deposited in connection therewith specify the name and address of the person in whose favour the right has been effected or that the right has been effected in favour of the holder of a Deed of Mortgage or corresponding document as well as the amount secured and the date and other particulars which, according to the law of the State of registration, determine the rank in relation to other such rights.

Section 20

A mortgage or other such right granted in a vessel under construction in a foreign State shall be recognized in Sweden provided it has been registered in the foreign State in accordance with the law of that State.

Section 21

When a right to a vessel or vessel under construction shall be recognized in Sweden according to section 19 or 20, it shall in this country have the same rank in relation to other registered rights and, subject to sections 51 and 52, the same third party effects in other respects as it has under the law of the State where the vessel is registered or being constructed.

Inscription procedure

Section 22

The person for whom application of title to the ship or shipbuilding was last made shall be deemed to be the owner in any matter of registry for the hypothecation of the property.

Section 23

Any application for inscription of a hypothec shall be made in writing by the owner of the ship or shipbuilding. It shall state the ship or the building intended and the amount of the hypothec.

Any request for renewal of a hypothec shall be made in writing by the shipowner or the holder of the Deed of Mortgage. The Deed shall be presented if it was not the shipowner that requested the renewal.

Section 24

An application for inscription of a hypothec shall be refused if-

1. the provisions in section 23 first paragraph have not been observed,

2. the application contravenes section 1,

3. the application is in conflict with any such condition of the applicant’s title restricting his right to dispose of the property as has been inscribed into the Register of Ships or Register of Ships under Construction or which is inscribed therein on the same registration day as the inscription of the hypothec is applied for, always provided the hypothecation not been conceded by the person in whose favour the restriction applied,

4. the ship or shipbuilding is to be deregistered,

5. the applicant or, if the ship or shipbuilding was owned by several persons, any of them is bankrupt or is declared bankrupt on the same registration day as the hypothec is applied for unless it appears that the ship, or the building, or the share thereof, does not belong to the bankruptcy estate,

6. the ship, the shipbuilding or any share therein or any conditional title thereto has been subject to arrest, such security measure as is provided for public dues or distraint and the matter of inscription of the measure has been entertained no later than the register day on which the hypothecation is applied for, always provided, concerning arrest, that the bailiff has not consented to the application, or

7. the applicant has been deprived of the ship, the building or any share therein or any conditional title thereto through a forced sale.

If a matter concerning inscription of the applicant’s title has been postponed, examination of the hypothecation application shall be similarly postponed.

Section 25

If the application of inscription of the hypothec is not in conflict with section 24, the hypothec shall be granted and a Deed of Mortgage be issued on the basis thereof.

Provisions on the issuing of a new Deed of Mortgage in the place of one that has been annulled by mortification are laid down in the Act (1927:85) on Mortification of Lost Documents.

Section 26

A request for renewal of a hypothec shall be refused if section 23 second paragraph has not been observed.

Section 27

The applicant may demand that a hypothec which should have equal priority with another shall be declared to be postponed to the other. A hypothec thus postponed to another shall also be postponed to a hypothec having equal priority with the latter, or better, even if this is not stated in the decision.

Section 28

A Deed of Mortgage may, on application by the owner of the ship or shipbuilding and with the consent of the holder of the Deed of Mortgage, be exchanged for two or more such Deeds (substitution). Upon request, the rank of the Deeds between themselves shall then determined. Section 28 second sentence shall have corresponding application.

Section 29

Hypothecs in the same currency and mutually ranking equally or in succession, may on request of the owner of the ship or shipbuilding and with the consent of the holder of the Deed of Mortgage be joined into one hypothec (cumulation). The new hypothec shall rank as the lowest ranking of the cumulated hypothecs.

A hypothec referred to in the first paragraph shall, on the request of the applicant and with the consent of the holders of the Deeds of Mortgage, be declared to be for a lower amount than the aggregate of the cumulated hypothecs.

Section 30

On application by the owner of the ship or shipbuilding and with the consent of the holder of the Deed of Mortgage, a hypothec may be set down to rank below another (postponement). A hypothec thus postponed after another shall also rank after one having equal rank with the other, or better, even if this is not stated in the decision.

Section 31

On application by the owner of the ship or shipbuilding and with the consent of the holder of the respective Deed of Mortgage, a hypothec may be annulled (mortification).

Provisions on annulment by mortification of a hypothec when the Deed of Mortgage has been lost are laid down in the Act (1927:85) on Mortification of Lost Documents.

Section 32

When the holder of a Deed of Mortgage consents to a measure such as referred to in sections 28 31, the Deed shall be presented.

Section 33

On application by the holder of a Deed of Mortgage, his possession of the document shall be recorded in the Register of Ships or the Register of Ships under Construction. If another person is recorded as holder of the Deed, the Register Authority shall, after entering the new possession, cancel the previous notation and inform the person whose possession was recorded. If there is cause to assume that the applicant does not possess the Deed of Mortgage, he shall be enjoined to present it.

If a person whose possession has been recorded announces that his possession has ceased, the record of his possession shall be cancelled.

If no application according to the first paragraph has been made when the Deed of Mortgage is issued, or a record of possession is cancelled without any new such application, the owner of the ship or shipbuilding shall be recorded as holder of the Deed of Mortgage.

Section 34

If a hypothec has expired according to section 16, this shall be recorded in the Ship Register.

The effect upon a hypothec of a forced sale of the property shall be recorded in the register.

Section 35

If a shipbuilding is deleted from the Register of Ships under Construction and is instead registered as a ship in the Register of Ships, any hypothec attaching to the building and record concerning it shall be transferred to the Register of Ships.

MARITIME LIENS

Maritime liens on vessels

Section 36

A maritime lien upon a vessel shall secure any claim against the vessel owner or operator concerning-

1. wages and other sums due to the master or other person employed on board on account of his employment on the vessel,

2. port, canal and other waterway dues and pilotage dues,

3. compensation for personal injury which has occurred in direct connection with the operation of the vessel,

4. compensation for property damage which has occurred in direct connection with the operation of the vessel, provided the claim is not capable of being based on contract,

5. salvage remuneration, compen- sation for removal of wreck and contribution in general average.

Items 3 and 4 of the preceding paragraph shall not apply to claims for compensation for nuclear damage.

A maritime lien shall apply even if the debtor is a non-operating vessel owner or a charterer or other person who manages the vessel for her Owner.

Section 37

The priority of maritime liens is governed by the Priorities Act (1970:979).

Claims listed in section 36 first paragraph under separate numbers shall have mutual priority to payment in the order of such numbers. Nevertheless, a claim under number 5 shall take priority over claims under numbers 1-4 if these have arisen earlier.

Claims under the same number shall rank equally as between themselves, unless otherwise provided in the second paragraph. Nevertheless, a claim under number 5 shall take priority over a claim under the same number which has arisen earlier.

Section 38

Subject to section 41, a maritime lien shall continue to attach to the vessel with unchanged priority if the vessel is transferred to a new owner or her registry is changed.

Section 39

A person building, rebuilding or repairing a vessel for another may retain the property as security for his right of payment or other compensa- tion.

Concerning the right in some cases of selling the property and obtaining satisfaction out of the proceeds and of disposing of the property, provisions are found in the Act (1985:952) on Craftsmen’s Right to Sell Goods not Collected.

The priority attendant upon the right of retention of the property is governed by the Priorities Act (1970:979).

Section 40

A maritime lien upon a vessel shall be extinguished after a period of one year from the time when the claim arose, unless, prior to the expiry of such period, an arrest or distraint of the vessel has been secured, such action leading to a forced sale. The said period shall not be subject to suspension or interruption, provided that the time shall not run while there is legal prevention against the vessel being arrested or distrained.

The provisions of the first paragraph on the effect of a secured arrest or distraint of the vessel shall also apply when a vessel is sold by forced sale in bankruptcy or under the second paragraph of chapter 1 section 10, if such sale has been requested and the vessel has been taken out of operation.

For a claim secured by a maritime lien on a vessel, the court may declare the arrest of the vessel according to chapter 15 section I of the Code of Judicial Procedure, even if there is no risk of the debtor’s evading payment of his debt.

Section 41

If a vessel is sold by forced sale in Sweden, any lien and right of retention upon the vessel shall cease to attach to it after the sale has become final and the price has been paid.

The creditors are entitled to payment out of the proceeds in the order applicable to distrained property Claims secured by maritime liens may be lodged in full notwithstanding the provisions of chapter 9 on limitation of liability but shall not be paid in excess of the highest amount due under such provisions.

The forced sale of a vessel in a foreign State shall be recognized and have the same effect as provided in the preceding paragraph if the vessel was within the jurisdiction of that State and the sale was effected in accordance with the law of the said State and the provisions of the 1967 International Convention on Maritime Liens and Mortgages.

Section 42

The provisions concerning maritime liens on vessels have corresponding application to vessels under construction from the launching of the newbuilding.

Maritime liens on cargo

Section 43

A maritime lien shall attach to loaded cargo for the security of-

1. claims for salvage and contri- bution in general average or other costs which are to be apportioned on the same basis (chapter 13 section 15 third paragraph, chapter 14 section 40 and chapter 17 section 6),

2. claims arising from contracts made or other actions taken by a carrier or master within the powers vested in him under this Code as well as any claim by a cargo owner on account of goods sold for the benefit on another cargo owner,

3. a carrier’s claims on account of a contract of carriage in so far as they might have been enforced against one requiring delivery of the goods.

Section 44

The priority of maritime liens is governed by the Priorities Act (1970: 979).

Claims listed in section 43 under separate numbers shall have mutual priority to payment in the order of such numbers. Nevertheless, a claim under number 1 or 2 shall take priority over any claim under the same number which has arisen out of another event and earlier.

Section 45

If cargo to which a maritime lien attaches is surrendered to a receiver or sold for the needs of the ship or cargo, the lien shall be extinguished.

If cargo is sold by forced sale, a maritime lien attaching to it shall cease to have effect after the sale has become final and the price has been paid.

Any one delivering cargo which he knew or ought to have known to be subject to a maritime lien, without the lienor’s permission, shall be liable for any amount which, as a consequence, cannot be realised out of the goods. Such liability shall also rest upon the receiver in respect of claims for which he would not otherwise bear personal liability, if he had notice of the claim when he took delivery.

Section 46

A maritime lien on cargo is extinguished after a period of one year from the time when the claim arose, unless, prior to the expiry of such period, either a legal action has been instituted or an arrest or distraint followed by the forced sale of the goods has been secured. The said period shall not run while there is legal prevention against arrest or distraint of the cargo for the lienor’s claim.

If the claim has been submitted to an Average Adjuster, a legal action concerning the claim shall be considered to have been instituted.

The provisions of the first paragraph relating to the effect of a secured distraint shall also apply when cargo is to be sold by forced sale in bankruptcy, provided such sale has been requested and the cargo has been taken into custody by the bailiff or has otherwise been placed under his seal.

Provisions common to vessel and cargo liens

Section 47

If a claimant has a maritime lien attaching to several object’s, each object shall secure the full amount of the claim.

If a lienor is covered out of one object in excess of that objects share, at the time of accrual of the lien, of the value of the total security, that object’s owner shall be subrogated in respect of the excess in the lienor’s rights against the other objects. However, any claimant having special security in the object shall enter into the owner’s right with priority before him to the extent that the object does not suffice, on account of the lienor’s claim, to cover his claim.

Section 48

A maritime lien shall remain, even if the claim is assigned or distrained or garnished or otherwise passes to another person.

Section 49

A maritime lien shall not extend to an indemnity payable for damage to vessel or cargo on account of insurance or otherwise.

A claim secured according to section 39 by a right of retention upon a vessel or a vessel under construction shall attach to any indemnity which may be due on account of insurance or otherwise for damage to that vessel or vessel under construction.

Section 50

An action in rem against a vessel or cargo for a claim secured by a maritime lien may be brought against the owner of the object or the master of the vessel. In respect of the cargo, however, neither the vessel’s owner or operator nor a charterer or other person managing the vessel for the owner may bring such an action against the master.

Section 51

Where a maritime lien or right of retention in a vessel such as referred to in this chapter is invoked before a Swedish Authority, Swedish law shall apply:

If a maritime lien, right of retention or similar right in a vessel other than referred to in this chapter is invoked, its effect shall be determined by the law of the State where the vessel is registered. Nevertheless, such right shall always rank after any maritime lien or right of retention provided for in this chapter and after any hypothec complying with the 1967 International Convention on Maritime Liens and Mortgages. Nor may such right be in other respects more favoured than the right under this chapter to which it is most comparable.

Section 52

The provisions of section 51 shall have corresponding application to vessels under construction from their being launched. Prior thereto the law in the State where the vessel is being built shall apply.

Chapter 4. On Arrest of Vessels in International Legal Relations

Section 1

The provisions in this chapter apply to arrest of vessels for civil claims which are or may be adjudicated in Sweden in the order prescribed for civil cases or in that prescribed for private claims pursued in criminal cases. The provisions do not, however, apply to arrest for claims concerning taxes and charges levied by the State or a municipality.

The provisions apply to vessels entered in the Swedish ship register or a corresponding foreign ship register. The provisions do not, however, apply to Swedish ships if the applicant has his habitual residence or principal place of business in Sweden.

The Act (1938:470) with Certain Provisions concerning Foreign State Vessels etc. contains provisions that certain vessels may not be arrested. Nor may vessels owned or exclusively used by the Swedish State be arrested.

Section 2

What is provided in general of arrest of ships applies also to arrest according to this chapter, unless anything to the contrary is provided in the chapter.

Section 3

A vessel may be arrested only for a maritime claim.

A maritime claim according to this chapter is a claim which is based on any one of the following circum- stances-

1. damage caused by any ship either in collision or otherwise,

2. loss of life or personal injury caused by any ship or occurring in connection with the operation of any ship,

3. salvage,

4. demise charter agreement,

5. agreement concerning the carri- age of goods on board a vessel on account of a charterparty, bill of lading or any such document,

6. loss of or damage to goods including luggage carried in any ship,

7. general average,

8. bottomry,

9. towage,

10. pilotage,

11. delivery of goods or materials for a vessel’s operation or main- tenance,

12. building, repair or equipment of a ship or dock charges,

13. wages of the master or any other crew member on account of his employment on board the ship,

14. master’s disbursements and disbursements made by a sender, charterer or shipper or agents on behalf of the vessel or her owner,

15. any dispute as to the ownership of a vessel,

16. any dispute between co- owners of any vessel as to the ownership or possession of the vessel or the operation of or earnings from the vessel,

17. any mortgage or other con- tractual hypothecation of the vessel.

Section 4

Arrest may be laid upon the vessel to which the maritime claim relates.

If a maritime claim is based on any circumstances mentioned in section 3 second paragraph items 1-14, arrest may also be laid on any other ship belonging to the person who, at the time when the maritime claim arose, was owner of the vessel to which the maritime claim refers.

If any other person than the vessel’s owner is liable for a maritime claim according to the first paragraph, arrest may instead be laid either on the vessel to which the maritime claim refers or on any other vessel belonging to the debtor.

Section 5

Arrest may be imposed on a vessel only if the vessel is subject to distraint for maritime claims in Sweden. If the maritime claim attaches for any kind of obligation other than payment, what has now been said of distraint shall apply
to any other enforcement than enforcement of the vessel’s arrest.

Section 6

A vessel shall not be arrested more than once in respect of the same maritime claim.

If bail or other security is given to release the vessel from arrest, arrest may not be granted for the same maritime claim. Such arrest may however be granted if the claimant can show that the security has ceased to be effective or that there is otherwise special cause for arrest.

Section 7

A vessel under arrest shall be prevented from departing.

If arrest has been granted for a maritime claim based on such circumstances as are intended in section 3 second paragraph item 15 or 16, the court may however-

1. permit the person having the vessel in his possession to use it against bail or other security, or

2. decide about the use of the vessel on other conditions.

Section 8

The arrest of property brought on board the vessel by a crew member is governed by provisions in chapter 22 section 1.

Part II Ship Management

Chapter 5. On Shipping Partnership

Section 1

A shipping partnership is where two or more persons have agreed to engage in shipping jointly but under divided liability with a vessel of their own. Notice of the shipping part- nership agreement may be filed with the Register Authority, which shall immediately enter the notice into the register where the vessel is registered, or, if the vessel is not registered, advertise the notice. Further provisions on the notification and advertisement procedure shall be issued by the Government.

For obligations incurred by a shipping partnership after notification to the Register Authority, each partner is liable only in proportion to his share in the vessel unless he has undertaken more extensive liability. For obligations arising earlier, the partners bear joint and several liabilities. However, for water pollution fees according to Chapter & of the Act (1980:424) on Measures against Water Pollution from Ships, Chapter 8 section 2 of the said Act shall apply, and for payments according to the Act (1986:371) on the Removal of Vessels in Public Ports section 5 second sentence of that Act shall apply.

For the mutual rights and obligations of the partners, the provisions of sections 2 18 shall apply unless otherwise agreed.

Section 2

A managing owner may be elected for a shipping partnership. As managing owner may be appointed a Swedish, Danish, Finnish or Norwe- gian national resident in Sweden or a Swedish corporate body.

Section 3

The managing owner has auth- ority to perform, on behalf of all the partners, such transactions as the shipping business normally involves, to initiate and conduct legal actions relating to the shipping partnership, and otherwise to represent the partners in such matters in Courts and before authorities. The managing owner may not without the permission of the partners sell or mortgage the vessel or charter her out for more than one year.

If no managing owner has been appointed, a legal action concerning the partnership may be brought against any one of the partners with effect also against the others.

Section 4

The managing owner shall duly keep the co-partners informed of the activities of the shipping partnership. He shall consult them on all important matters.

Section 5

Decisions concerning the shipp- ing partnership shall be taken at general meetings, convened by at least one week’s notice to each of the partners by registered letter, cable, telegram or telex message under his latest known address. The notice shall include information on the agenda of the meeting.

A general meeting is not needed for a decision which is supported by all the partners or is so urgent that it cannot abide the holding of such a meeting.

Section 6

At the request of any partner, minutes shall be kept on matters of importance at a general meeting. A partner absent from a general meeting or otherwise not participating in a decision shall be informed of what has been decided.

Section 7

When voting, the weight accorded the vote of each partner shall correspond to his share in the vessel. Subject to the third paragraph of this section, the opinion supported by the largest number of votes shall prevail. In case of an equal division, the opinion supported by the managing owner shall prevail. However, for election of the managing owner, an equal division of votes shall be determined by the lot.

A decision at a general meeting shall be binding upon partners who are absent from the meeting.

A decision taken otherwise than at a general meeting or involving the dissolution of the shipping partnership is valid only if supported by partners whose total share in the vessel is more than one half. Any decision incon- sistent with the shipping partnership agreement or the object of the shipping partnership and not concerning the dissolution of the partnership is valid only if supported by all the partners.

Section 8

The managing owner may at any time be removed from his position by a decision according to sections 5 and 7. A managing owner who owns more than one half of the vessel may upon suit by a co-partner be removed from his position by the Court if there is just cause therefor.

Section 9

The managing owner shall be responsible for the shipping partner- ship’s bookkeeping as prescribed by law. He shall account to the partners for his administration of the partnership. An account is due for each calendar year and shall be presented within two months from the end of the year.

The account shall be presented in writing to each partner. For the purpose of his examination of such accounts, each partner shall be granted access to the accounting documents of the shipping partnership.

If a partner wants to challenge an account, he shall bring legal action within six months after it has been presented to him. A partner who has failed to do so has lost his right to challenge the account, unless the managing owner had been guilty of deceit.

Section 10

Each partner shall contribute to the expenses for the partnership activities in proportion to his share in the vessel. If a partner fails to pay an agreed contribution on demand, and if the managing owner or any other partner advances the amount, the defaulting partner shall pay interest on the amount advanced according to section 6 of the Interest on Debts Act (1975:635).

Section 11

Profit and loss in the shipping partnership shall be divided between the partners in proportion to their shares. Any surplus not needed for the expenses of the partnership shall be distributed.

Any one who in accordance with section 10 has advanced a contribution to a co-partner shall be entitled to a dividend for the value of the advance in abatement of his claim.

Section 12

If a share of the vessel should pass to an outsider, the transferee or transferor shall immediately inform the managing owner and the other partners.

If a partner has become a national of any foreign country, he shall immediately inform the managing owner and the other partners.

Section 13

A partner shall have the right to redeem any share of the vessel transferred to an outsider otherwise than by forced sale or public auction. Such right of redemption shall not be available against a partner’s spouse, descendant or descendant’s spouse. To exert his right of redemption, a partner must notify the transferee within a month from being notified of the transfer. If he fails to do so, his right of redemption is lost.

If two or more partners exert their right of redemption, it shall be exercised in proportion to the share of each.

Shares shall be redeemed at their full value.

Section 14

A partner whose share in the vessel has been transferred to another person shall not be relieved as against the co-partners from his liabilities at the transfer. Nor shall he be relieved of his liability to them for obligations arising thereafter but before the managing owner and all other partners have been notified of the transfer.

In relation to the co-partners, the transferee of the share immediately assumes all the right and liabilities of a partner He is bound in the same way as the transferor by all decisions and steps taken before the transfer. The other partners are entitled to deduct from his dividends such claims for contributions to the partnership’s activities as could have been deducted from the transferor.

In relation to third parties, the new partner is liable only for such partnership liabilities as arise after the transfer of the share. Before inscription has been applied for or otherwise notified the Register, the transferor also remains liable for such partnership liabilities in relation to a third party who neither knew nor ought to have known of the transfer. The second and third sentences of the first paragraph of section 1 shall have corresponding application.

Section 15

Subject to section 16, a shipping partnership shall be dissolved six months after request to that effect by any partner to the others.

On request by any partner, the shipping partnership shall be immediately dissolved-

1. if the vessel has ceased to be Swedish without that partner’s act or consent and no right of redemption can be exercised under section 13,

2. if the managing owner has been removed from his position by court order,

3. if any other partner is unable to meet his obligations as a part owner, or

4. if the shipping partnership is administered in a way that infringes the partner’s rights.

Section 16

Any partner has the right to preempt a co-partner who, in accordan- ce with the first paragraph of section 15, has requested the dissolution of the shipping partnership or has given cause for such dissolution as is stated in the second paragraph of section 15. A partner who to exercise his right of pre-emption shall notify the co-partner thereof within a month after receiving his request for dissolution according to the first paragraph of section 15 or receiving notice of a ground for dissolution according to the second paragraph of the same section. If he fails to do so he shall lose his right of pre-emption.

The second and third paragraphs of section 13 shall have corresponding application.

Section 17

On dissolution of the shipping partnership the vessel shall be sold.

If the partners cannot agree on the place of sale, it shall be determined by a trustee appointed according to the Joint Ownership Act (1904:48). If they cannot agree on the manner of sale, it shall be by public auction. In such case the Joint Ownership Act shall apply if the sale shall take place in Sweden.

Where the Joint Ownership Act is applied according to the preceding paragraph, the District Court at the vessel’s home port shall be seized of the case.

Section 18

A partner owning more than one half of the vessel is entitled to become master of the vessel, if he is competent.

If a partner owning more than one half of the vessel is the vessel’s master, the Court upon suit by any co-partner shall remove him from that position if there is just cause.

Chapter 6. On Ship Masters

Section 1

Before a voyage begins, the master shall ensure that the vessel is seaworthy in accordance with chapter 1 section 9.

During the voyage the master shall ensure that the vessel is maintained in proper condition as above.

If any defect or lack affecting the due condition of the vessel cannot be immediately remedied, the master shall promptly notify the owner or operator.

Section 2

The master shall ensure that the vessel is navigated and managed in a manner consistent with good seamanship.

He shall keep himself informed of rules and regulations concerning shipping in force in waters where the ship will sail and in ports where she will call.

Section 3

If a vessel is ordered to stop by a competent civil or military Authority, the master shall obey the command. If required by a competent Authority, after a stopping order or otherwise, the master must also comply with an order to have the ship searched. The Government or Authority appointed by the Government shall issue further provisions on stopping and search orders.

Section 4

The master is responsible for the keeping of the prescribed log books on board the vessel. Rules on log books are laid down in Chapter 18.

The Master shall also carry on board other ship documents and a copy of this Code as provided by the Govern- ment or, upon authorization by the Government, the National Maritime Administration.

Section 5

The master shall ensure that loading and discharge are prosecuted and the voyage is performed with due despatch.

Before engaging in salvage of any vessel or goods, the master shall carefully consider whether the operation is consistent with his duties towards those whose rights and interests he is to protect.

Section 6

If the vessel becomes distressed at sea, the master must do all in his power to save those on board and to protect the vessel and cargo. As far as possible, he must ensure that log books and other ship documents are brought to safety and arrange for salvage of vessel and cargo. As long as there is reasonable prospect of saving the vessel, the master may not abandon it unless his life is in serious danger.

If the master encounters any one in distress at sea, he is bound to give all the help possible and necessary to save the distressed person, as far as it can be done without seriously endangering his own ship or those on board. If the master otherwise learns that some one is distressed at sea or if he becomes aware of any danger to navigation, he shall, under the same proviso as above, take steps to save the distressed person or avert the danger in accordance with provisions which the Government has issued for such cases.

Section 7

If the master is absent or excused from fulfilling his duties, the senior mate present shall make such decisions as cannot be postponed.

If the master leaves the vessel, he shall inform the senior mate present or, if no mate is present, some other crew member and shall give the necessary instructions. When the vessel is not moored in port or at a safe anchorage, the master may not leave the vessel unless it is necessary. In case of emergency he may not be absent from the vessel.

If the master dies or is unable to conduct the vessel because of illness or other compelling cause, or if he abandons his command, the senior mate shall replace him until a new master has been appointed. In such event the owner shall be promptly notified.

 

Section 8

The master has authority on behalf of the owner-

1. to enter into any transactions for the maintenance of the vessel or the performance of the voyage,

2. to contract for the carriage of goods on the voyage, and, on a vessel intended therefor, for the carriage of passengers, as well as,

3. to sue and pursue any legal action on behalf of the vessel.

For purposes mentioned in the preceding paragraph, the master may if necessary raise funds by loan or by pledging or selling of the owner’s property or, in case of need, of the cargo. Even if the transaction was not necessary, it is still binding if the third party was in good faith.

The master shall inform the owner of any steps of importance which he finds necessary for the safety of the vessel or those on board, of the progress of the voyage and any transactions undertaken in the course of it, as well as of any other facts which may be useful for the owner to know of. Before taking any important step, the master should seek instructions from the owner or his appointed agent. If funds are needed for the vessel and the owner’s instructions cannot be awaited, the master shall procure the necessary funds by the course least costly to the owner.

Section 9

During the voyage the master shall take good care of the cargo and shall in all respects observe the cargo owner’s rights and interests.

The master has authority, in accordance with what is prescribed in respect of the carrier to, make transactions on behalf of the cargo owner and to sue and pursue any legal action on behalf of the cargo.

Section 10

The master is not personally liable for obligations undertaken on behalf of the vessel owner or the cargo owner.

Section 11

The master shall compensate damage which he has caused the owner of the vessel or the cargo or any other person whose rights and interests he is responsible for.

Damages which the master must pay pursuant to the preceding paragraph or otherwise may be reduced as reasonable in view of the fault or neglect of which he is guilty, the amount of the damage or other circumstances of the case. If the master is an employee, the provisions of section 1 of chapter 4 of the Tort Liability Act (1972:207) shall apply instead of the above.

Section 12

The master shall render accounts when the owner so requires. If the owner wants to contest an account, he shall bring action within six months after receiving the account. If he fails to observe the time, he shall lose his right of action unless the master has been guilty of deceit.

In his account the master shall credit the owner with any special remuneration which he may have received from a sender, charterer, cargo owner, purveyor or other person with whom he has had to deal in his capacity as master.

Section 13

If the vessel is arrested or distrained by a foreign Authority, the master shall immediately notify the nearest Swedish Foreign Mission in the foreign State and, if the vessel is a ship, the Register Authority. If possible, a certificate from the foreign Authority concerning the action shall also be sent to the Register Authority as soon as possible.

The preceding paragraph shall have corresponding application when the arrest or distraint is revoked.

Section 14

The master of a Swedish merchant vessel, fishing vessel or State vessel shall immediately report to the competent Authority-

1. if any person has or can be supposed to have died or suffered serious personal injury in connection with the operation of the vessel,

2. if any member of the vessel’s complement has or can be supposed otherwise to have died or suffered serious personal injury,

3. if otherwise than under items 1 or 2 any person has or can be supposed to have drowned from the vessel or has died on board and been buried at sea,

4. if severe poisoning has or can be supposed to have occurred on board,

5. if the vessel has collided with another vessel or has run aground,

6. if the vessel has been abandoned at sea,

7. if the vessel or cargo or property outside the vessel has or can be supposed to have suffered significant damage in connection with the operation of the vessel, or

8. if significant shifting of the cargo has occurred.

The Government may prescribe that incidents of importance to safety at sea shall be reported in cases other than those enumerated in the first paragraph.

The master shall report to the Maritime Administration when a Maritime Declaration is to be made according to chapter 18 section 7 in consequence of an event which has or can be supposed to have occurred in the operation of a vessel.

Provisions concerning Maritime Declarations and the duties of the master in connection therewith are laid down in Chapter 18.

Section 15

Provisions on the master’s duties in connection with collision between vessels are found in chapter & section 4.

Section 16

Provisions on the master’s duty to bring seamen along on the vessel are found in chapter 22 section 2.

Part III  Liability

Chapter 7. General Provisions on Liability

Section 1

The owner or operator of a vessel shall be liable for loss or damage which the master, any member of the crew or pilot causes through fault or neglect in the performance of his duties. The owner or operator shall also be liable if loss or damage is caused by any other person while performing work in the vessel’s service on the order of the owner or operator or the master.

For damages which the owner or operator has thus paid he shall have a right of recourse against the person who caused the loss or damage.

Rules for the limitation of the owner’s or operator’s liability are laid down in chapter 9 and in chapters 13-15.

Chapter 8. Damage by Collision between Vessels

Section 1

If two vessels collide causing damage to one of them or to cargo or persons on board and if the collision is caused by fault on one side, that side shall cover the ensuing damage or loss.

If the collision has been caused by fault on both sides, they shall both participate in covering the damage in the proportion of the faults committed on either side. If the circumstances do not indicate any proportion, each party shall cover half of the damage.

Each side shall be liable only for its part of the compensation. For personal injury both shall be jointly and severally liable.

If any party has paid more than is finally due from it, it shall have a right of recourse against the other side for the excess. Against such a claim the latter may invoke the same exemptions and limitation as it would have against the victim under this code or any applicable foreign law or a stipulation consistent therewith. Such a stipulation may not be invoked in relief or mitigation of liability beyond what follows from chapters 13-15 or corresponding provisions in foreign law.

In determining the question of fault as a cause of collision, it shall be particularly considered whether or not there was time for deliberation.

Section 2

If a collision was accidental or it cannot be established that it was caused by either side, then each side shall bear its own loss.

Section 3

The provisions of this code concerning collision between vessels shall have application also when, as a result of the navigation of a vessel or other similar action, damage was caused by a vessel upon another or upon persons or cargo thereon, without the vessels hitting one another.

Section 4

If a vessel has collided with another vessel, it is the duty of her master to render to the other vessel and those on board her all necessary assistance for rescue out of the danger caused by the collision, as far as it can it can be done without serious danger to the vessel and those on board.

He shall also inform the master of the other vessel of the name and home port of his vessel and her place of departure and destination.

Chapter 9. On Limitation of Liability

Section 1

The operator of a vessel shall be entitled to limit his liability according to the provisions of this chapter. This applies also to an owner of a vessel who does not operate the vessel and to a person who manages the vessel in the owner’s place, and also to a charterer, shipper and to any one performing services directly connected with salvage. For this purpose, salvage shall include measures taken in accordance with section 2 first paragraph items 4, 5 and 6.

If liability is asserted against any person for whom the vessel owner or other person referred to in the first paragraph is responsible, this person shall also have the right to limit his liability according to the provisions of this chapter.

Any one responsible on account of an insurance contract for a claim which is subject to limitation shall be entitled to limit his liability to the same extent as the assured.

Section 2

Unless otherwise provided in this chapter, there exists a right to limitation of liability, regardless of the basis of liability, for claims on account of-

1. personal injury or damage to property, if the injury or damage has arisen on board the vessel or in direct connection with her operation or with salvage operations,

2. loss resulting from delay in the carriage by sea of goods, passengers or their luggage,

3. other loss resulting from in- fringement of rights other than contractual rights occurring in direct connection with the operation of the vessel or with salvage operations,

4. measures for the raising, removal, destruction or rendering harmless of a vessel which is sunk, stranded, abandoned or wrecked, including anything that is or has been on board,

5. measures for the removal, destruction or rendering harmless of the cargo of the vessel, and

6. measures taken in order to avert or minimize losses for which limitation of liability applies, and loss caused by such measures.

If a person entitled to limitation of liability has a counterclaim against the claimant and the claim and counterclaim have arisen out of the same event, the limitation shall apply only to that part of the claim which exceeds the counterclaim.

Section 3

The right of limitation of liability shall not apply to-

1. claims for salvage or contribution to general average or any contractual claim for payment in respect of measures referred to in section 2 first paragraph items 4, 5 or 6,

2. claims for oil pollution damage covered by sections I and 2 first paragraph of the Act (1973:1198) Concerning Liability in Case of Oil Pollution at Sea,

3. claims subject to any interna- tional convention or national legisla- tion governing or prohibiting limita- tion of liability for nuclear damage,

4. claims in respect of nuclear damage caused by a nuclear vessel,

5. claims on account of damage or injury caused to a pilot or any person employed by one referred to in section 1 first paragraph and whose duties are connected with the ship or the salvage operation, and

6. claims for interest or compensation for costs of the action.

Section 4

The right to limitation of liability is not available to a person who is shown to have caused the loss by personal intent or his personal gross negligence committed with the knowledge that such loss would probably occur.

Section 5

If there is a right to limitation of liability, the amounts shall be determined as follows-

1. For claims on account of personal injury caused to the vessel’s own passengers, the limit of liability shall be 46,666 SDR multiplied by the number of passengers which the vessel is entitled to carry according to her certificate, but in no case higher than 25 million SDR.

2. For other claims on account of personal injury, the limit of liability shall be 333,000 SDR for a ship with a tonnage not exceeding 500. If the tonnage is higher, the limit shall be increased-

for each tonnage unit from 501 to 3,000 by 500 SDR,

for each tonnage unit from 3,001 t to 30,000 by 333 SDR,

for each tonnage unit from 30,001 to 70,000 by 250 SDR, and

for each tonnage unit higher than 70,000 by 167 SDR.

3. For other types of claims as well as claims referred to under item 2 but not satisfied by the amounts mentioned there, the limit of liability shall be 167,000 SDR if the vessel’s tonnage does not exceed 500. If the tonnage is higher, the limit shall be increased-

for each tonnage unit from 501 to 30,000 by 167 SDR,

for each tonnage unit from 30,001 to 70,000 by 125 SDR, and

for each tonnage unit higher than 70,000 by 83 SDR.

4. The limits of liability under 1-3 concern the aggregate of all claims arising out of any distinct occasion against the vessel’s operator, non- operating owner, manager, charterer or shipper and against any one for whom these persons are responsible.

5. The limits of liability for salvors not operating from a vessel or operating entirely from the vessel which is subject to the salvage shall correspond to the limits of liability applicable to vessels with a tonnage of 1,500. The limits of liability concern the aggregate of all claims against such salvor or those for whom he is responsible on account of any distinct occasion.

6. The “tonnage” of a vessel means the gross tonnage calculated according to the provisions concerning tonnage measurement in Annex 1 of the International Tonnage Measure- ment Convention, 1969. The definition of SDR is given in chapter 22 section 3.

Section 6

Each liability amount shall be distributed among the claimants in relation to the extent of their proven claims of the type to which the limit of liability applies.

If the amount mentioned in section 5 item 2 does not suffice for payment of the claims mentioned there, the remainder of these claims shall be paid out of the amount mentioned in section 5 item 3 and have the same right as other claims there mentioned.

If the vessel operator or any other person has wholly or partly paid a claim before the limitation amount has been distributed, he shall succeed to the creditor’s rights to the extent of his payment.

If the vessel operator or any other person shows that he may later become liable to cover, wholly or partly, a claim which, if paid before the distribution of the liability amount, could have been reclaimed from the liability amount according to para- graph 3, a temporary reservation shall be made to enable him to assert his right later.

Section 7

If on account of a claim subject to limitation in this country, suit has been brought or arrest or other legal proceedings have been instituted, a limitation fund may be constituted. The fund shall be constituted with the Court where suit has been brought or otherwise with the Maritime Court competent for the place where arrest or other legal action has been applied for.

A limitation fund shall be deemed to have been constituted with effect for all persons who can claim the same limit of liability it is intended for payment only of claims of the kind to which that limit of liability applies.

After a limitation fund has been constituted in Sweden, suit regarding a claim of a kind that is subject to limitation may be brought in this country only in a limitation action. The same shall apply to any suit concerning the right of the person constituting the fund to limit his liability and concerning distribution of the fund.

Persons entitled to bring a limitation action are the person who has constituted the fund, his insurer and persons raising claims of a kind that is subject to limitation.

Further provisions on limitation funds and limitation actions are laid down in chapter 12.

Section 8

A claimant against a limitation fund constituted in Sweden or in any other Convention State may not, on the basis of his claim, obtain any security measure or distraint against the vessel or other property belonging to any person for whom the fund has effect according to section 7 second paragraph and who is entitled to limitation of liability.

Chapter 10. On Liability for Oil Damage

Section 1

On damage caused by oil there are special provisions in the Act (1973:1198) Concerning Liability in Case of Oil Pollution at Sea.

Chapter 11. On Liability for Nuclear Damage

Section 1

On nuclear damage there are special provisions in the Nuclear Liability Act (1968:45).

Chapter 12. On Limitation Fund and Limitation Proceedings

Section 1

The provisions in this chapter shall apply to any limitation fund constituted in accordance with chapter 9 section 7 (global fund).

The provisions of sections 3-15 shall also apply in certain parts to limitation funds constituted according to section 6 of the Act (1973:1198) Concerning Liability in Case of Oil Pollution at Sea.

Section 2

A global fund shall be equal to-

1. the aggregate amounts which according to chapter 9 section 5 constitute the limit of liability for claims for which limitation is invoked and which have arisen out of one distinct occasion, and

2. interest on amounts referred to under item 1, calculated according to section 6 of the interest on Debts Act (1975:635) from the day of the occurrence until the day of the constitution of the fund.

Section 3

The person applying for con- stitution of a limitation fund shall pay the amount of the fund into court or produce satisfactory security for lt.

In the application, which shall be in writing, the applicant shall account for the circumstances and state the names and addresses of likely clai- mants against the fund.

In matters concerning limitation funds the Act on Administrative Court Procedure (1946:807) shall apply in relevant parts, unless otherwise provided in this chapter.

Section 4

The Court shall fix the amount of the fund and decide whether the proposed security is acceptable.

Unless there are particular con- trary reasons, the Court shall also require the applicant to pay into court or lodge adequate security for an additional amount intended to cover remuneration to the administrator of the fund, costs of the procedure and other expenses for the constitution and distribution of the fund as well as interest for the period after the constitution of the fund.

If it appears from the decision that the requisite payment has been made or adequate security has been lodged, the fund shall be deemed to have been constituted on the day of issue of the decision. Otherwise the fund shall be considered as constituted on the day when payment was made or security lodged.

Decisions referred to in the first and second paragraphs are effective until otherwise prescribed or until the question of the distribution of the fund is decided. If such a decision involves the payment of a higher amount or the lodging of additional security, the Court shall order the person constituting the fund to pay the balance or provide the additional security within a stated time. If the order is not followed, the court shall declare that the fund no longer has the effect stated in chapter 9 section 8 and section 8 in this chapter. Notice to that effect shall be included in the order.

Appeals against decisions accord- ing to the first and second paragraphs and against orders according to the fourth paragraph shall be lodged separately.

Section 5

When a limitation fund has been constituted, the Court shall announce this directly in the announcement, all creditors shall be advised to submit their claims to the Court within a certain period (submission period) which shall not be less than two months. Notice of the provisions of chapter 9 section 7 third paragraph and of sections 8 and 15 of this chapter shall be included in the announcement.

The announcement shall be published in the Official Gazette (Post & Inrikes Tidningar) and in a local newspaper if there are special reasons, the announcement shall also be published abroad.

The person constituting the fund and all known creditors shall be informed of the announcement by special message.

Section 6

If called for by the nature of the matter or other circumstances, the Court shall, when a limitation fund has been constituted, appoint an admini- strator of the fund. The administrator shall have the duty, in addition to the tasks referred to in section 11 second paragraph, of assisting in the handling of the fund and limitation procedures and in negotiations between the parties. The administrator shall be learned in law and have the special knowledge and experience that his mandate requires.

The administrator’s remuneration is determined by the Court.

Section 7

A claimant submitting his claim shall state its amount and basis. If judgement has been given regarding the claim or legal proceedings about it are pending, this shall be stated.

Section 8

For a claim which has not been notified to the Court before the handling of the fund distribution has been terminated in the District Court, payment may be made only according to section 14 second paragraph.

Section 9

The fund may not be dissolved until the submission period has elapsed and both the person constituting the fund and the claimants who have submitted claims against it have agreed thereto.

Section 10

A limitation proceeding means a proceeding in which questions of liability and its limitation and of submitted claims are decided and the fund is distributed. A limitation proceeding is brought into court by summons at the Court where the fund is constituted. Once the matter has been brought into court, claims may be brought without a summons.

Except as otherwise provided in this chapter, the provisions of the Code of Judicial Procedure concerning civil cases subject to settlement shall apply in relevant parts.

Section 11

In a limitation proceeding, the Court shall hold a fund meeting as soon as the submission period in section 5 has elapsed. To the meeting, the Court shall summon the admini- strator, the person having constituted the fund, the person having brought the limitation proceeding into court and the claimants. If the right of any other person is affected, such person shall also be summoned. At the fund meeting shall be taken up matters concerning liability and its limitation, the amount of the limit of liability and the claims that have been submitted.

Prior to the fund meeting the administrator shall examine the sub- mitted claims and, as far as possible, draw up a proposal for the distribution of the fund. The proposal shall be sent to those who have been summoned to the meeting. If an administrator has not been appointed, the Court shall take these measures.

If no objection to the proposal, duly amended at the fund meeting, remains after the end of the meeting, the proposal shall form the basis for the distribution of the fund.

If any objection remains at the end of the fund meeting, the Court shall set a certain period within which the objecting person shall state whether he maintains his objection and requests the Court’s hearing of the dispute. If such request has not been made in time, the objection shall be considered to have lapsed. If it is maintained, the Court shall try the dispute as soon as possible.

The parties to a dispute such as mentioned in the forth paragraph are the person objecting and the person against whom the objection is made.

Section 12

Except as stated in this chapter, a fund meeting is equivalent to an oral pre-trial hearing.

A default judgement may not be passed for absence from a fund meeting. If any one is absent after summons to such a meeting, the matter may be handled and decided notwithstanding the absence. This shall be mentioned in the summons.

Section 13

After the expiry of the submission period, the Court may order that a certain part of the proven claims shall be paid immediately.

Appeal against the District Court’s decision in matters referred to in the first paragraph shall be lodged separately No appeal shall lie against the decision of the Court of Appeal in such matters.

Section 14

When all disputes are settled, the Court shall decide on the distribution of the fund. If a main hearing is not necessary for the investigation, the case may be decided without such a hearing.

The Court may reserve a certain amount for covering claims which have not been submitted before the end of the distribution of the fund at the District Court. Such amount shall be distributed when all claims submitted have been considered and it can be assumed that no further claims will be submitted.

Distribution of the fund shall take place even if the person constituting the fund has no right to limitation of liability in such case the Court, upon motion, may give judgement concern- ing the part of a claim that is not paid out of the fund.

Section 15

An unappealable decision in the limitation case concerning liability, the right to limitation of liability, the amount of liability, claims submitted and the distribution of the fund shall be binding upon every one who can maintain claims against the fund, regardless whether they have sub- mitted their claims or not.

Part IV Contracts of Carriage

Chapter 13. On Carriage of General Cargo【 】

INTRODUCTORY PROVISIONS

Definitions

Section 1 (251)

In this chapter the following words have the following meanings:

Carriery  the person who enters into a contract with a sender for the carriage of general cargo by sea,

Subcarrier  the person who, on the carrier’s mandate, performs the carriage or part of it,

Sender: the person who enters into a contract with a carrier for the carriage of general cargo by sea,

Shippec  the person who delivers the goods for carriage,

transport documenc  a bill of lading or other document made out as evidence of the contract of carriage,

the Convention  the 1924 Interna- tional Convention concerning Bills of Lading as amended by the 1968 and 1979 Additional Protocols (the Hague- Visby Rules), and

contracting State  a State bound by the Convention.

Field of application

Section 2 (252)

The provisions of this chapter shall apply to carriage by sea in domestic traffic in Sweden and in traffic between Sweden, Denmark, Finland and Norway in respect of contracts of carriage by sea in domestic traffic in Denmark, Finland and Norway, the law in the country where the carriage is performed shall apply.

In other traffic the provisions shall apply to contracts of carriage by sea between two States when-

1. the agreed port of loading is in a contracting State,

2. the agreed port of discharge is in Sweden, Denmark, Finland or Norway,

3. More than one loading port is named in the contract and one of these is the actual port of discharge and is situated in Sweden, Denmark, Finland or Norway,

4. the transport document has been issued in a contracting State, or

5. the transport document pro- vides that the Convention or a law based on the Convention shall apply.

If neither the agreed port of loading nor the agreed or actual port of discharge is in Sweden, Denmark, Finland or Norway, the parties may however agree that the contract of carriage by sea shall be subject to the law of any other specified contracting State.

Charterparty traffic

Section 3 (253)

The provisions of this chapter shall not apply to charterparties for the chartering of a whole ship or part of a ship. If a bill of lading has been issued pursuant to a charterparty, the provi- sions shall however be applied to the bill of lading when the latter determines the relationship between the carrier and the holder of the bill of lading.

Under a contract for the carriage by ship of cargo on several voyages during a specified period, the provi- sions of this chapter shall apply to each voyage. If the voyage is performed according to a charterparty, the first paragraph shall nevertheless apply.

Contract provisions

Section 4 (254)

A provision in a contract of carriage or a transport document shall be void to the extent that it diverges from the provisions in this chapter or from the provisions in chapter 19 section 1 first paragraph item 5 and fourth paragraph. This shall not affect the validity of the remainder of the contract or document. Any provision granting the carrier the benefit of insurance for the goods or any similar provision shall be void.

The first paragraph shall not apply to sections 5, 8-ll and 14-23 nor prevent the inclusion in the contract of carriage of provisions relating to general average. The carrier may also increase his liability and his obligations under this chapter.

If a contract of carriage is subject to the Convention or to Conven- tion-based legislation in a contracting State, the transport document shall contain a statement thereof and of the invalidity of provisions varying the rules of the Convention or legislation to the sender’s, shipper’s or receiver’s detriment.

If it is reasonable on account of the peculiar character or state of the goods or the particular circumstances or conditions under which the carriage is to be performed to decrease the carrier’s liability or increase his rights according to this chapter, an agreement to that effect shall be valid.

DELIVERY AND RECEPTION OF THE GOODS FOR CARRIAGE

Delivery of the goods

Section 5 (255)

The shipper shall deliver the goods at the place and within the period which the carrier has indicated. It shall be delivered in such a way and in such a condition that it can be conveniently and safely brought on board, stowed, carried and discharged.

Examination of package

Section 6 (256)

The carrier shall to a reasonable degree examine whether the goods are packed in such a way as not to suffer damage or be apt to cause damage to any person or property if the goods have been delivered in a container or similar transport device, the carrier shall not, however, be obliged to investigate the latter internally unless there is reason to suspect that the transport device is stuffed in a faulty manner.

The carrier shall inform the sender of any deficiencies which he has noticed. He is not obliged to carry the goods if he cannot make them fit for transport by reasonable means.

Dangerous goods

Section 7 (257)

In addition to what follows from special provisions, dangerous goods must be suitably marked as dangerous. The sender shall in due time notify the carrier or subcarrier to whom the goods are delivered of their dangerous propensity and shall indicate the safety measures that may be needed.

If otherwise the sender is aware that the goods have such propensity that the carriage may involve risks or essential inconvenience to any person, the ship or the rest of the goods, he shall likewise give notice to this effect.

Goods requiring special care

Section 8 (258)

If the goods require special care, the sender shall give timely notice thereof and indicate the measures that may be needed. If necessary, the goods shall be marked in a suitable manner.

Receipt for the goods

Section 9 (259)

The shipper shall be entitled to receipts for the goods concurrently with their delivery.

Provisions concerning the issuing of bills of lading and other transport documents are found in sections 42-59.

Freight

Section 10 (260)

Unless otherwise agreed, the freight payable is that which is current at the time of delivery of the goods for carriage. Freight shall be paid upon reception of the goods.

For goods which do not remain at the end of the carriage, freight shall be paid only if the goods have been lost due to their own propensity, insuffi- cient packing or fault or negligence on the sender’s side or if the carrier has sold the goods for the owner’s account or has discharged them, rendered them innocuous or destroyed them according to section 41.

Freight paid shall be repaid if according to the second paragraph the carrier was not entitled to freight.

Renunciation and breach of contract

Section 11 (261)

If the sender renounces the contract before the carriage has begun, the carrier shall be entitled to compensation for loss of freight and other loss.

If the goods have not been delivered in time, the carrier may cancel the contract of carriage if the breach is essential. If the carrier wishes to cancel the contract, he must notify the sender thereof within a reasonable period after the sender has inquired, though not later than when the goods are delivered for carriage. If he does not do so, the right of cancellation is lost. If the contract is cancelled, the carrier shall be entitled to damages for loss of freight and other loss.

If the sender or the consignee request the interruption of the carriage and delivery of the goods outside the destination, the carrier is entitled to compensation for loss of freight and other loss. The carriage may, however, not be interrupted if such interruption would cause essential loss or incon- venience to the carrier or to any other sender.

The provisions in chapter 14 section 32 second to fourth paragraphs shall have corresponding application.

THE VOYAGE

The carrier’s duty to safeguard the goods owner’s interests

Section 12 (262)

The carrier shall perform the carriage with due care and despatch, care for the goods and in other respects safeguard the goods owner’s interests from the reception until the delivery of the goods.

The carrier shall ensure that the vessel used for the carriage is seaworthy, which also includes her being duly manned and equipped and her cargo rooms, cool and refrigerated chambers and other cargo space in the ship being in proper shape for the reception, carriage and preservation of the goods.

If goods have been lost, damaged or delayed, the carrier shall notify the person indicated by the sender at the earliest opportunity if such notice cannot be given, the goods owner or, if he is unknown, the sender shall be notified. The same applies if the carriage cannot be performed in the manner intended.

Deck cargo

Section 13 (263)

Goods may be carried on deck only if it is allowed by the contract of carriage, follows from any custom of the trade or usage in the traffic in question or if it is required by any law or statutory provision.

If according to the contract the goods shall or may be carried on deck, this shall be indicated in the transport document. If this has not been done, the carrier must show that carriage on deck has been agreed. The carrier may not invoke such agreement against any third party who has acquired the bill of lading in good faith.

Special rules on liability for deck cargo are provided in section 34.

Carrier’s breach of contract

Section 14 (264)

The sender may cancel the contract of carriage for delay or other breach of contract on the carrier’s part if the breach is essential. After the goods have been delivered, the sender may not cancel the contract if the unloading of the goods would involve essential loss or inconvenience to any other sender.

If the sender wishes to cancel the contract, he must notify his intention within reasonable time after he himself must be assumed to have received notice of the carrier’s breach. If he does not do so, the right of cancella- tion shall be lost.

Interruption of the carriage and distance freight

Section 15 (265)

If the vessel carrying or to carry the goods is lost or condemned after suffering damage, the carrier’s duty to fulfil the carriage does not lapse on account thereof.

If there arises an obstacle preventing the vessel from reaching the port of discharge and discharging the goods or if this cannot be done without undue delay, the carrier may choose another suitable port of discharge.

Concerning renunciation of the contract of carriage on account of war risk, the provisions of chapter 14 sections 38 and 40 shall have corresponding application.

If a part of the carriage has been performed when the contract is cancelled or avoided or when for any other reason the goods are unloaded in a port other than the agreed port of discharge, the carrier shall be entitled to distance freight according to the provisions of chapter 14 section 21.

Carrier’s authority to act on behalf of the goods owner

Section 16 (266)

If it becomes necessary to take any particular measures to preserve or carry the goods or otherwise to safeguard the goods owner’s interests, the carrier shall request instructions from the goods owner.

If time or other circumstances do not allow a request for instructions, or if such instructions do not arrive in time, the carrier is authorised to take the necessary measures on behalf of the goods owner and to represent the latter in matters concerning the goods. Even if the measure was not necessary, the goods owner is bound against a third party in good faith.

Notice of such measures taken shall be given according to the provisions of section 12 third para- graph.

Goods owner’s responsibility for the carrier’s measures

Section 17 (267)

The goods owner is responsible for measures undertaken by the carrier and expenses incurred by him for the needs of the goods. If the carrier has acted without instructions, the goods owner shall, however, not be bound in a higher amount than the value of the goods affected by the measures as calculated from the beginning of the voyage.

DELIVERY OF THE GOODS

Carrier’s delivery of     the goods

Section 18 (268)

At the port of destination the consignee shall receive the goods at the place and within the time indicated by the carrier. The goods shall be delivered in such a manner that they can be conveniently and safely re- ceived.

The person entitled to receive the goods has a right to inspect them before reception.

Receiver’s duty to pay freight and other charges

Section 19 (269)

If goods are delivered against a bill of lading, the receiver is obliged upon the reception of the goods to pay freight and other charges of the carrier’s according to the bill of lading.

If the goods have been delivered otherwise than against a bill of lading, the receiver is obliged to pay freight and other claims according to the contract of carriage only if he was appraised of the claims upon delivery or realised or ought to have realised that the carrier had not been paid.

Right of withholding     the goods

Section 20 (270)

If the carrier has claims according to section 19 or other claims for which there is security by a maritime lien on the goods according to chapter 3 section 43, he is not obliged to deliver the goods before the consignee has either paid the claims or lodged security therefor.

Warehousing of goods

Section 21 (271)

If the goods are not collected within the time which the carrier has indicated or otherwise in a reasonable time, they may be warehoused in safe custody on behalf of the consignee.

Notice that the goods have been warehoused shall be given according to the provisions in section 12 third paragraph. The notice shall indicate a reasonable period after the expiry of which the goods may be sold or disposed of as provided in section 22.

Carrier’s disposal of goods which have not been collected

Section 22 (272)

After the deadline provided in section 21 second paragraph has expired, the carrier is entitled to sell warehoused goods to the extent necessary to cover sale costs and claims mentioned in section 20.

The carrier shall exercise due care in arranging the sale.

If the goods cannot be sold or if it is clear that the proceeds of a sale would not cover the costs, the carrier may dispose of the goods in some other reasonable manner.

Sender’s liability for charges

Section 23 (273)

If the goods are delivered to a receiver without payment of such claims against the sender as the receiver should have paid, the sender’s liability shall remain, provided the delivery does not cause loss to the sender and the carrier must have realised this.

The carrier shall not be obliged to sell warehoused goods to cover such claims against the sender as the receiver ought to have paid. If the goods are still sold without the claims being covered, the sender shall remain liable for the deficit.

CARRIER’S LIABILITY FOR DAMAGES

Responsibility period

Section 24 (274)

The carrier shall be responsible for the goods while they are in his custody at the port of loading, during the carriage and at the port of dis- charge.

The carrier shall be deemed to have the goods in his custody accord- ing to the first paragraph from the moment when he receives the goods from the shipper or from any authority or other person to whom the goods have to be delivered according to law or provisions applicable at the port of loading.

The carrier shall be deemed no longer to have custody of the goods according to first paragraph-

1. when he has delivered the goods to the consignee/receiver,

2. if the consignee/receiver does not receive the goods from the carrier, when the goods have been warehoused on behalf of the receiver according to the contract or according to law or usage at the port of discharge, or

3. when he has delivered the goods to any authority or other person to whom the goods must be delivered according to law or provisions applic- able at the port of discharge.

Liability for physical loss or damage

Section 25 (275)

The carrier shall be liable for damage resulting from the goods being lost or damaged while in his custody on board or ashore, unless he can show that neither his fault or neglect nor the fault or neglect of any one for whom he is responsible has caused or contributed to the loss.

The carrier shall not be liable for damage caused by measures to save persons or reasonable measures to salvage vessels or other property at sea.

If fault or neglect on the carrier’s part together with any other circum- stance has caused loss, the carrier shall be liable only to the extent that the damage can be attributed to such fault or neglect. The carrier must show to what extent the loss is not attributable to fault or neglect on his side.

Liability for loss or damage due to negligent navigation or fire

Section 26 (276)

The carrier shall not be liable if he shows that the loss or damage was caused by-

1. fault or neglect of the master, any member of the crew, pilot or other person performing work in the ship’s service and committed in the navigation or management of the vessel, or

2. fire not caused by his personal fault or neglect.

The carrier shall however be liable for damage which depends on the failure of himself or any one for whom he is responsible in exercising due care in making the ship seaworthy before the beginning of the voyage. For exemption from liability, the carrier must show that such care had been exercised.

Liability for animals

Section 27 (277)

The carrier shall not be liable for loss of or injury to live animals arising from the particular risks inherent in such carriage.

If the carrier shows that he has followed particular instructions given concerning the animals and that the loss or injury may be attributable to such risks as mentioned in the first paragraph, he shall not be liable for the loss or injury, unless it is shown to have been caused wholly or partly by the fault or neglect of himself or of any one for whom he is responsible.

Liability for delay

Section 28 (278)

The carrier shall be liable according to sections 25-27 for loss resulting from delay in delivery of the goods.

Delay in delivery of the goods occurs when the goods have not been delivered at the port of discharge stated in the contract of carriage within the time agreed or, if no time has been agreed, within the period of carriage which on account of the circumstances may reasonably be required of a diligent carrier.

If the goods have not been delivered within 60 days from the day when they should have been delivered according to second paragraph, the consignee may require compensation as for loss of the goods according to section 25.

Calculation of damages for physical loss or damage

Section 29 (279)

Damages on account of the goods being lost or damaged shall be calculated on the basis of the value of goods of the same kind at the place and time at which the goods were delivered according to the contract or should have been delivered.

The value of the goods shall be determined on the basis of the exchange price or, if there is no such price, the market price. If there is neither an exchange price nor a market price, the value shall be determined according to the current value of goods of the same kind and quality.

LIMIT OF LIABILITY

Section 30 (280)

The carrier’s liability shall be limited to 667 Special Drawing Rights (SDR) for each package or other unit of the goods or, if the liability thereby becomes higher, to 2 SDR for each kilogram of the gross weight of the goods concerned. The meaning of SDR is explained in chapter 22 section 3.

Limit of liability for unit loads

Section 31 (281)

If a container, pallet or similar transport device has been used to consolidate the goods, then in applying section 30 each package or other unit which according to the transport document has been placed in the transport device shall be considered as one package or unit. Otherwise the goods in the transport device shall be considered as one unit. If the transport device itself has been lost or damaged, it shall be considered as a unit of its own, unless it is owned or otherwise provided by the carrier.

Liability not based on the contract of carriage

Section 32 (282)

The provisions on exemption from or limitation of the carrier’s liability shall apply even if the action against him is not based on the contract of carriage.

The provisions on exemption from and limitation of the carrier’s liability shall be applied if an action is brought against any one for whom the carrier is responsible and this person shows that he has been acting in the scope of his employment or for the fulfilment of the engagement.

The aggregate liability which can be imposed on the carrier and on persons for whom he is responsible may not exceed the limits of liability set out in section 30.

Loss of right of limitation

Section 33 (283)

The right of limitation shall not be available for one who is shown to have personally caused the loss or damage intentionally or by gross negligence and with awareness that such loss or damage would probably arise.

Liability for deck cargo

Section 34 (284)

If goods are carried on deck in breach of section 13, the carrier shall be liable, irrespective of the provisions of sections 25-28, for damage which is exclusively the consequence of the carriage on deck. Concerning the extent of the liability, sections 30 and 33 shall apply.

If goods have been carried on deck against an express agreement for carriage under deck, there shall be no right to limitation of liability according to this chapter.

Carrier’s liability for subcarrier

Section 35 (285)

If the carriage is performed wholly or party by a subcarrier, the carrier shall remain liable according to the provisions of this chapter as if he himself had performed the whole carriage.

If it is expressly agreed that a certain part of the carriage shall be performed by a named subcarrier, the carrier may reserve exemption of liability for loss or damage caused by an event occurring while the goods are in the custody of the subcarrier. The carrier must show that the loss or damage has been caused by such an event.

A reservation according to the second paragraph shall, however, be without effect if an action cannot be brought against the subcarrier at a court mentioned in section 60.

Subcarrier’s liability

Section 36 (286)

The subcarrier shall be liable according to the same rules as the carrier for the part of the carriage performed by him. The provisions of sections 32 and 33 shall have corresponding application.

If the carrier has undertaken liability beyond what follows from this chapter or has waived rights according to this chapter, the subcarrier shall be bound only if he has agreed in writing.

Joint liability

Section 37 (287)

If both the carrier and the subcarrier are liable, their liability shall be joint and several.

The aggregate liability which can be imposed on the carrier and subcarrier and the persons for whom they are responsible shall not exceed the limits of liability according to section 30, except as otherwise pro- vided in section 33.

The provisions in this chapter shall not preclude recourse agreements between the carrier and the subcarrier.

Notice of loss

Section 38 (288)

If goods have been delivered to the receiver without the latter giving the carrier written notice of loss or damage which he has noticed or ought to have noticed and of the general type of the loss or damage, the goods shall be deemed to have been delivered such as described in the transport document, unless the contrary can be proved. If the loss or damage could not be observed on delivery, the same shall apply unless such notice has been given no later than three days thereafter.

Written notice need not be given of loss or damage if ascertained in a joint inspection of the goods.

The carrier shall not be liable for loss as a result of delay in delivery of the goods unless written notice of the loss was given the carrier within 60 days after the goods had been delivered to the receiver.

Notice may be given to the subcarrier who delivered the goods or to the carrier.

Contribution to general average etc.

Section 39 (259)

The provisions in sections 24-38 concerning the carrier’s liability for loss of or damage to the goods shall apply also to the receiver’s right to refuse to pay contribution to general average and the carrier’s duty to contribute to such average or to salvage which the receiver has paid.

SENDER’S LIABILITY

General rule

Section 40 (290)

The sender shall not be liable for damage, including damage to the vessel, which has arisen to the carrier or the subcarrier without his own fault or neglect or that of any one for whom he is responsible. Nor shall the person for whom the sender is responsible be liable for loss or damage which has arisen without his own fault or neglect or that of any one for whom he is responsible.

Dangerous goods

Section 41 (291)

If the sender has delivered dangerous goods to the carrier or to a subcarrier without informing him according to section 7 of the dangerous properties of the goods and of necessary safety measures, and if the receiver of the goods did not otherwise have notice of their dangerous properties, the sender shall be liable to the carrier and any subcarrier for costs and other loss arising from the carriage of such goods. In such a case, the carrier or subcarrier shall be entitled under the circumstances to discharge, render innocuous or destroy the goods without liability to pay compensation.

One who, without knowledge of the dangerous properties of the goods, has received them from a person other than the sender, may not invoke the provisions of the first paragraph.

If goods become a danger to persons or property, the carrier may according to the circumstances discharge, render innocuous or destroy such goods without liability to pay compensation.

BILLS OF LADING AND OTHER TRANSPORT DOCUMENTS

Bills of lading

Section 42 (292)

A bill of lading is a document which-

1. is evidence of a contract of carriage by sea and of the carrier’s having received or loaded the goods, and

2. is designated by the term bill of lading or contains an undertaking by the carrier to deliver the goods only against the return of the document.

A bill of lading may be made out to a named person, to a named person or order or to bearer. A bill of lading made out to a named person shall be considered as an order bill of lading unless it contains a reservation against assignment by terms such as “not to order’’ or similar.

The bill of lading determines the conditions for the carriage and delivery of the goods in respect of the relationship between the carrier and any holder of the document other than the sender Provisions in the contract of carriage which have not been inserted in the bill of lading may not be invoked against such a holder unless the bill of lading contains a reference to them.

Through bill of lading

Section 43 (293)

A through bill of lading is a bill of lading in which it is stated that the carriage of the goods shall be performed by more than one carrier.

The person who issues a through bill of lading shall make sure that a separate bill of lading issued for a part of the carriage enunciates that the goods are carried according to a through bill of lading.

The shipper’s right to require a bill of lading

Section 44 (294)

When the carrier has received the goods he shall, on the shipper’s demand, issue a received-for-shipment bill of lading.

After the goods have been loaded, a shipped bill of lading shall be issued if the shipper so requires. If a received bill of lading has been issued it shall be returned when a shipped bill of lading is issued. A received bill of lading shall constitute a shipped bill of lading after notation on the document of the name of the vessel or vessels into which the goods have been loaded and the time of loading.

The shipper shall have the right to receive separate bills of lading for parts of the goods, if it can be done without essential inconvenience.

Master’s bill of lading

Section 45 (295)

A bill of lading signed by the master of a vessel carrying the goods shall be deemed to have been signed on behalf of the carrier.

Contents of the bill of lading

Section 46 (296)

A bill of lading shall contain statements on-

1. the nature of the goods, including their dangerous properties, marks necessary to identify the goods, number of packages or pieces and the weight or otherwise expressed quantity of the goods, all as per the shipper’s statements,

2 the visible condition of the goods and packing,

3. the carrier’s name and the place where he has his main office,

4. the shipper’s name,

5. the consignee, if named by the shipper,

6. the loading port named in the contract of carriage and the day on which the carrier received the goods in that port,

7. the discharging port named in the contract of carriage and any agreement concerning the time of the delivery of the goods in that port,

8. if the bill of lading has been made out in more than one original, the number of such originals,

9. the place of issue of the bill of lading,

10. the amount of the freight, if it is to be paid by the receiver, or a statement of any freight payable by him, as well as any other conditions for the carriage and delivery of the goods,

11. to what extent the carriage is subject to the Convention (section 4, third paragraph),

12. that the goods may or shall, in a proper case, be carried on deck, and

13. any increased limit of liability which the parties may have agreed.

A shipped bill of lading shall also contain statements of the ship’s name and nationality, the place of loading and the day when the loading was completed.

The bill of lading shall be signed by the carrier or a person acting on his behalf. The signature may be produced by mechanical or electronic means.

Absence of statements in a bill of lading

Section 47 (297)

A document fulfilling the requirements of section 42 first para- graph is a bill of lading even if any statement mentioned in section 46 should be missing.

Carrier’s duty of inspection

Section 48 (298)

The carrier shall to a reasonable extent check the accuracy of statements relating to the goods entered into the bill of lading according to section 46 first paragraph item 1. If he has reasonable grounds for doubting the accuracy of the statements or has not had reasonable means of checking this, he shall express this by an appropriate reservation in the bill of lading.

Evidentiary value of the bill of lading

Section 49 (299)

The bill of lading shall be evidence of the reception of the goods or, if a shipped bill of lading, their loading such as described in the bill of lading, unless proof to the contrary is given or a reservation has been entered according to section 48. In the absence of a notation in the bill of lading on the apparent condition of the goods or their packing, it shall be considered to be stated in the bill of lading that the goods were in good apparent condition, unless otherwise proved.

A bill of lading which does not indicate that freight shall be paid by the receiver (section 46 first paragraph item 10) shall be evidence, unless otherwise proved, that freight is not to be paid by him. This shall apply correspondingly if no amount payable as demurrage has been entered into the bill of lading.

If a third party in good faith has acquired a bill of lading on the faith of the statements therein being accurate, proof to the contrary according to the first and second paragraphs shall not be admissible. If the carrier realised or ought to have realised that a statement relating to the goods was incorrect, he may not invoke a reservation men- tioned in section 48 unless the reservation expressly mentions the incorrectness of the statement.

Liability for misleading statements

Section 50 (300)

If a third party suffers loss through the negotiation of a bill of lading on the faith of the statements therein being accurate, the carrier shall be liable if he realised or ought to have realised that the bill of lading was misleading to a third party in such a situation there is no right of limitation of liability under this chapter.

If the goods do not correspond to the statements in the bill of lading, the carrier shall be obliged to declare on the receiver’s demand whether the shipper has agreed to indemnify the carrier for inaccurate or incomplete statements (letter of indemnity) and to impart such letter of indemnity to the receiver.

Shipper’s warranty

Section 51 (301)

The shipper shall be responsible to the carrier for the accuracy of the statements relating to the goods which have been inserted in the bill of lading at his request.

If the shipper has undertaken to indemnify the carrier for loss which arises from the issue of a bill of lading with incorrect statements or without reservations, he shall nevertheless not be liable if this has been done with the intent of misleading a holder in due course of the bill of lading. Nor is the shipper liable in such cases according to the first paragraph.

Right of claiming the goods

Section 52 (302)

The person presenting a bill of lading and appearing, through its content or, in the case of an order bill, through a continuous chain of endorsements or through an endorse- ment in blank as the rightful holder in due course, shall be authorised as consignee of the goods.

If the bill of lading has been issued in several originals, it shall suffice for due delivery at the port of destination that the receiver demon- strates his authority by presenting one original of the bill of lading. If the goods are delivered at any other port, any other originals must also be returned or security be lodged for any claim that a holder of any other original in circulation might raise against the carrier.

Several holders of bills of lading

Section 53 (303)

If several parties claim delivery, presenting separate originals of the bill of lading, the carrier shall arrange to have the goods warehoused in safe custody for the account of the rightful consignee. The claimants shall be notified as soon as possible.

Delivery against bill of lading

Section 54 (304)

The receiver shall be entitled to receive the goods only if he deposits the bill of lading and gives receipts concurrently with delivery of the goods.

After delivery of all the goods, the bill of lading, duly receipted, shall be returned to the carrier.

Delivery when a bill of lading has been lost

Section 55 (305) If an application has been filed for nullification (mortification) of a lost bill of lading, the applicant, after the issue of public summons, may require the delivery of the goods if security is lodged for compensation which the carrier may become forced to pay on account of the lost bill of lading.

Good faith acquisition of a bill of lading

Section 56 (306)

If a bill of lading holder transfers bill of lading originals to several persons, the person who first receives such an original in good faith shall be entitled to the goods. If, at the port of destination, the goods have been delivered to the holder of any other original, that holder shall not be obliged to relinquish what he has already received in good faith.

The person who in good faith has acquired an order or bearer bill of lading shall not be obliged to deliver the bill of lading to one who had lost it.

Right of stoppage

Section 57 (307)

The right of a seller to prevent the delivery of the goods or to reclaim the goods shall apply even if a bill of lading in respect of the goods has been given to the buyer.

A right according to the first paragraph may not be asserted against a third party who has acquired an order or bearer bill of lading in good faith.

Sea waybill

Section 58 (308)

A sea waybill is a document which-

1. is evidence of a contract of carriage by sea or of the carrier having received the goods, and

2. contains an undertaking by the carrier to deliver the goods to the consignee named in the document.

Even after the issuing of the sea waybill, the sender may elect that the goods shall be delivered to some one other than the consignee named in the document, unless he has waived this right as against the carrier or the consignee has already asserted his right. A bill of lading may be required according to section 44, unless the sender has waived his right under the second paragraph to elect another consignee.

Contents and evidentiary value of the sea waybill

Section 59 (309)

A sea waybill shall mention the goods received for carriage, the sender, the consignee and the carrier, the conditions of carriage and the freight and other costs to be paid by the receiver. The provisions in section 46 third paragraph and section 48 shall have corresponding application.

Unless otherwise shown, the sea waybill shall be proof of the contract of carriage and of the reception of the goods such as they have been described in the document.

DISPUTES

Jurisdiction and arbitration clauses

Section 60 (310)

A contract condluded before a dispute has arisen and which limits the plaintiff’s right to have a dispute concerning the carriage of general cargo under this chapter tried before a court of law shall be void as far as it limits the plaintiff’s right to sue at his option in a court for the place-

1. where the defendant has his principal office, or, if there is no principal office, where the defendant has his habitual residence,

2. where the contract of carriage was entered into, provided the defendant has an office, sub-office or agency there through whose mediation the contract was made, or

3. where the agreed port of loading or the agreed or actual port of discharge is situated.

Notwithstanding the provisions in the first paragraph, an action may always be brought in the court for the place which has been named in the contract of carriage. After a dispute has arisen, the parties may freely agree how the dispute shall be resolved.

 

If a bill of lading has been issued under a charterparty containing provi- sions on competent court or arbitration procedure without the bill of lading expressly mentioning that these provisions are binding for the holder of the bill of lading, the carrier may not invoke the provisions against a holder of the bill of lading who acquired it in good faith.

The first paragraph shall not apply if neither the agreed port of loading nor the agreed or actual port of discharge is in Sweden, Denmark, Finland or Norway or if anything else follows from the Act (1992:794) on account of Sweden’s accession to the Lugano Convention.

Arbitration

Section 61 (311)

Notwithstanding the provision of section 60 first paragraph, the parties may provide by written agreement that disputes shall be referred to resolution by arbitration. As a part of the arbitration agreement the plaintiff shall have a right to require that the arbitration shall be instituted in one of the States where a place mentioned in section 60 first paragraph is situated and that the arbitration tribunal shall apply the provisions of this chapter.

The provisions in section 60 second and third paragraph shall have corresponding application.

The first paragraph shall not apply if neither the agreed port of loading nor the actual port of discharge is situated in Sweden, Denmark, Finland or Norway.

Chapter 14. On Chartering of Vessels【 】

INTRODUCTORY PROVISIONS

Field of application and definitions

Section 1 (321)

The provisions on chartering apply to whole vessel chartering and part chartering. The provisions on voyage chartering apply also to consecutive voyages unless otherwise stated.

In this chapter the following words have the following meanings:

Carrier  the person who, through a contract for the carriage of goods, charters out a vessel to another, the charterer,

Shipper  the person who delivers the goods for loading,

voyage charter: chartering where freight is to be calculated per voyage,

consecutive voyages  a certain number of voyages which are to be performed after one another according to a charter agreement in respect of a specific vessel,

time charter  chartering where the freight is to be calculated per time,

part charter  chartering of less than an entire vessel or less than a full cargo and where a charterparty is used.

The provisions in this chapter shall apply to contracts of chartering of vessels in domestic traffic in Sweden and in traffic between Sweden, Denmark Finland and Norway. For contracts of chartering in domestic traffic in Denmark, Finland or Norway, the law in the country where the carriage is performed shall apply.

For chartering in traffic not covered by the third paragraph, the provisions in this chapter shall apply when Swedish law is applicable.

Freedom of contract

Section 2 (322)

The provisions of this chapter shall not be applied to the extent that anything else follows from the contract, any practice developed between the parties or any custom of the trade or other usage which must be considered binding upon the parties.

For voyage chartering in domestic traffic in Sweden and in any traffic between Sweden, Denmark, Finland and Norway, the provisions of section 27 may not be set aside by contract to the detriment of a shipper, voyage charterer or receiver The same shall apply to the provisions of chapter 19 section 1 first paragraph item 5 and fourth paragraph. In the charter agreement there may, however, be inserted provisions relating to general average. For limitations to the freedom of contract in domestic traffic in Denmark Finland or Norway, the law in the country where the carriage is performed shall apply.

In respect of chartering in traffic covered by chapter 13 section 2 first and second paragraphs, the provisions of section 18 on the issuing of bills of lading may not be set aside by contract to the shipper’s detriment.

That the provisions of this chapter may not be set aside by contract in certain other cases follows from section 5.

Chartering of a specific vessel etc.

Section 3 (323)

If the charterparty is for a specific vessel, the carrier may not perform it with another vessel. If the contract gives the carrier the right to appoint, at his own choice, another vessel than that agreed upon, or otherwise to use other vessels, the carrier may only appoint vessels which are equally suitable as the agreed vessel. The right may be exercised several times.

If the contract is for a whole ship or a full cargo, the carrier may not load goods for any one other than the charteret This shall apply even if the vessel must proceed in ballast to commence a new voyage.

Assignment of a charterparty

Section 4 (324)

If the charterer assigns his rights under the charterparty to some one else or if he subcharters the vessel, he shall still remain responsible for the perfor- mance of the contract.

The carrier may not assign the charterparty without the charterer’s consent. If the charterer has consented, the carrier’s liability under the contract shall cease.

Tramp shipping bill of lading

Section 5 (325)

If the carrier issues a bill of lading for goods carried on the ship, the bill of lading shall determine the conditions for the carriage and delivery of the goods as regards the relationship between the carrier and the third party holder of the bill of lading. Provisions in the charterparty which have not been inserted in the bill of lading may not be invoked against the third party unless the bill of lading refers to them.

The provisions on bills of lading in chapter 13 sections 45-57 apply also to such a bill of lading as is mentioned in the first paragraph. Where the provisions of chapter 13 apply to a bill of lading by virtue of section 3 of that chapter, the carrier’s liability and rights in relation to the third party shall be determined by appropriate application of the rules of chapter 13 sections 4 and 24-40.

VOYAGE CHARTERING

Freight

Section 6 (326)

Unless otherwise agreed, the freight payable shall be that which was current when the contract was con- cluded.

If other or more goods have been loaded than follows from the agreement, the freight for these goods shall be that current on loading, provided that it shall not be lower than the agreed freight.

Seaworthiness

Section 7 (327)

The carrier shall ascertain that the vessel is seaworthy, which also includes her being duly manned and equipped and her cargo holds, refrigerated and cool chambers and other space in the vessel in which goods are loaded being in good condition for the reception, carriage and preservation of the goods.

Carrier’s choice of loading and discharging port

Section 8 (328)

If the charterparty gives the voyage charterer the right to chose the loading or discharging port or ports, the vessel shall go to the port which he indicates, provided it is accessible and the vessel can lie afloat and enjoy a safe and unobstructed entry and departure with her cargo. A choice of discharging port shall be made no later than at the end of the loading.

If the voyage charterer has ordered the vessel to an unsafe port, he shall be liable for damage thereby caused to the vessel unless he shows that neither he nor any one for whom he is responsible was at fault.

For consecutive voyages the right of choosing which voyages the vessel shall perform must be exercised in such a way that the aggregate length of cargo voyages and ballast voyages respectively shall be essentially equal. Otherwise, the voyage charterer shall be liable to pay compensation for loss of freight.

The voyage charterer may not change his choice of port or voyage.

Place of loading

Section 9 (329)

Unless a specific place of loading has been agreed, the vessel shall berthed at the loading place which the voyage charterer indicates, provided this place is accessible and the vessel can lie afloat and enjoy a safe and unobstructed entry and departure with her cargo.

If a place of loading has not been indicated in time, the vessel shall be berthed at a customary loading place. If it cannot be done, the voyage charterer shall chose a place where loading may reasonably take place.

Whether a certain loading place has been agreed or not, the voyage charterer has a right to require the vessel shifted from one loading place to another, provided he pays the costs.

LOADING TIME ETC.

Loading time

Section 10 (330)

The carrier shall be obliged to let the vessel remain for loading during a certain loading time, which shall comprise a lay time and a time on demurrage. For chartering on liner terms no time on demurrage shall be included in the loading time.

Length of lay time

Section 11 (331)

The lay time shall be the time which can reasonably be counted upon for loading when the charterparty is concluded. In calculating the lay time regard shall be had to the type or nature and size of the vessel and cargo, the loading appliances on board and at the port, and other similar circums- tances.

The lay time shall be calculated under the clauses

1) fac (fast as ca)  on the basis of loading being performed as fast as the vessel can receive cargo with undamaged loading appliances,

2) faccop (fast as can custom of  the port), on the basis of loading being performed as fast as the ordinary loading method at the port allows,

3) liner terms  on the basis of loading being performed as fast as the time spent in ordinary loading of ships in liner trade, adding any time lost in congestion.

If a common period has been agreed for loading and discharge, the lay time shall not expire until the common period has ended.

The lay time shall be calculated in working days and working hours. As a working day shall be considered every weekday when work is performed the number of hours customary at the port on weekdays. As a working hour shall be considered every hour which can be used for loading on weekdays. For days when less work is done than on working days, the number of hours normally used for loading shall be calculated.

Beginning of lay time

Section 12 (332)

The lay time shall not begin to run until the ship is at her loading berth and is ready to commence receiving cargo and the carrier has given notice thereof.

Notice may be given beforehand but not until the vessel has reached the loading port. If it should later appear that the vessel was not ready to commence receiving cargo, time lost in making the vessel ready shall not be included in the lay time.

Notice shall be given to the shipper or, if he cannot be found, to the voyage charterer. If neither the shipper nor the voyage charterer can be found, notice shall be considered to have been given when sent off in an appropriate manner.

Time shall be counted either from the hour when work at the port is customarily begun in the morning or from the end of the midday break. In the former case notice must have been made no later than one hour before the end of office hours on the day before and in the latter case no later than at ten a.m. on the same day.

Hindrances

Section 13 (333)

If the vessel cannot be berthed at the loading place on account of a hindrance on the voyage charterer’s side, she may still be notified as ready to receive cargo with the effect that lay time commences to run. The same shall be true for congestion and also for other hindrances which the carrier could not reasonably have contem- plated when the contract was concluded.

In the laytime shall not be included time lost on account any hindrance on the carrier’s side. The same shall be true of time lost as a consequence of the vessel having been berthed at a place other than customary for a reason that the carrier could not reasonably have counted upon when the contract was concluded. There shall be included, however, time lost through shifting the vessel.

Time on demurrage

Section 14 (334)

Time on demurrage is the time after the end of lay time which the vessel must remain in order to be loaded, unless the length of the time of demurrage is fixed by contract.

Time on demurrage shall be calculated in running days and hours from the end of lay time. The provisions of section 13 second para- graph shall have corresponding application.

Demurrage

Section 15 (335)

The carrier shall be entitled to special compensation (demurrage) for time on demurrage. The compensation shall be calculated in consideration of the freight and the increase or decrease of the carrier’s expenses resulting from the ship being at rest.

The compensation shall be payable on demand.

If the compensation is not paid or security lodged, the carrier shall be entitled to enter the claim into the bill of lading. If he does not do so he may instead prescribe an additional period for the voyage charterer’s payment. Unless the period is unreasonably short, the carrier may upon not receiv- ing payment within the additional period cancel the charterparty and claim damages for any loss resulting from the non-performance of the voyage.

LOADING

Loading and stowage

Section 16 (336)

Unless anything to the contrary follows from any custom of the port, the voyage charterer shall deliver the goods at the ship’s side, and the carrier shall take them on board. Under the clauses

1) fio (free in and out)  the voyage charterer shall arrange the loading,

2) liner ierms  the carrier shall arrange the loading.

The carrier shall arrange for ceiling and other matters needed for the stowage and shall stow the cargo.

For deck cargo, chapter 13 section 13 shall apply.

If, for any reason that the carrier could reasonably have counted upon when the contract was concluded, the vessel has been berthed at a place which is not a customary loading berth, the carrier shall be liable for any increased costs.

Delivery for carriage

Section 17 (337)

The goods shall be delivered and loaded with due despatch. They shall be delivered in such a way and condition that they can be conveniently and safely brought on board, stowed, carried and discharged.

The provisions in chapter 13 sections 7-9 shall have corresponding application.

Shipped bill of lading

Section 18 (338)

When the goods have been loaded, the carrier or the ship master or the person whom the carrier has otherwise authorised shall, upon the shipper’s demand, issue a shipped bill of lading, provided the necessary documents and statements are available.

The shipper shall have a right to receive separate bills of lading for parts of the goods, if it can be done without essential inconvenience.

If according to the contract of carriage a bill of lading is issued on conditions other than those which the contract prescribes and if this involves increased liability for the carrier, the voyage charterer shall indemnify him.

THE VOYAGE

Carrier’s duty of care etc.

Section 19 (339)

The voyage shall be performed with due dispatch and in other respects in a defensible manner The provisions of chapter 13 section 12 first and third paragraphs and sections 16 and 17 shall have corresponding application.

Deviation and substitute port

Section 20 (340)

Deviation is permissible only for the purpose of saving persons or salving vessels or other property at sea or for any other reasonable cause.

If there arises an obstacle preventing the vessel from reaching the port of discharge, the carrier shall be entitled to chose another suitable port of discharge.

Distance freight

Section 21 (341)

If a part of the voyage has been performed when the charterparty is avoided or extinguished or when for any other reason the goods are unloaded at a port other than the agreed port of discharge, the carrier shall be entitled to distance freight. The provisions of section 24 shall also apply.

Distance freight is the agreed freight less an amount calculated according to the ratio between the lengths of the remaining and the agreed voyage. Consideration shall also be paid to the duration of such voyages and the particular costs therefor. Distance freight may not exceed the value of the goods.

Disputes concerning distance freight may be submitted to investi- gation and resolution by an average adjuster. The provisions on average adjustment in general average shall apply in applicable parts.

Dangerous goods

Section 22 (342)

If dangerous goods have been loaded without the carrier knowing their dangerous character, he may accord the circumstances discharge them, render them innocuous or destroy them without any duty to pay compensation. The same shall be true even if the carrier knew the dangerous character of the goods and danger later arises to any person or property rendering it indefensible to retain the goods on board.

DISCHARGE AND DELIVERY OF THE GOODS

Discharge

Section 23 (343)

Concerning place and time of discharge and unloading of the goods, sections 9-11 shall have corresponding application. What is provided in that connection for the voyage charterer shall apply instead to the receiver of the goods.

The person who shows authority as receiver shall be entitled to inspect the goods before taking reception of them.

If there are several receivers of goods conveyed according to the same charterparty, they may only jointly indicate a discharging berth or require the vessel to be shifted.

Increased costs resulting from the goods being damaged or having to be disposed of on account of damage shall be paid by the voyage charterer, if the damage has been caused by the nature of the goods or the fault or neglect of the voyage charterer or any one for whom he is responsible. Under the clause fio (free in and out) the voyage charterer shall pay the costs, unless the carrier is liable for the damage under section 27.

Freight for goods no longer in existence

Section 24 (344)

For goods which no longer exist at the end of the voyage, freight shall be paid only if the goods have been lost due to their own nature, insufficient package or fault or neglect of the voyage charterer or any one for whom he is responsible or if the carrier has sold the goods on the owner’s behalf or has discharged them, rendered them innocuous or destroyed them in pursuance of section 22.

If freight has been paid, it shall be repaid if under the first paragraph the voyage charterer is not entitled to such freight.

Receiver’s and voyage charterer’s liability for freight etc.

Section 25 (345)

By taking reception of the goods, the receiver becomes bound to pay freight and other claims in accordance with the provisions of chapter 13 section 19.

In any case, the carrier shall be entitled to claim payment from the voyage charterer according to the provisions of chapter 13 section 23.

The carrier shall be entitled to withhold the goods according to the provisions of chapter 13 section 20.

Warehousing goods

Section 26 (346)

If the receiver fails to fulfil the conditions for reception of the goods or if he delays discharge so that it cannot be performed within the agreed time or else in a reasonable time, the carrier shall be entitled to discharge the goods and warehouse them in safe custody on behalf of the receiver. The receiver shall be notified of the warehousing.

If the receiver refuses to accept the goods or if he is unknown or cannot be found, the carrier shall as soon as possible inform the voyage charterer. If the receiver does not report in such time that the discharge can be duly fulfilled, the carrier shall discharge and warehouse the goods in safe custody. The receiver and voyage charterer shall be notified of the warehousing.

A notice according to the first or second paragraph shall state a reasonable time limit after which the carrier shall be entitled to sell or dispose of warehoused goods. For the sale or other disposal of the goods, the provision of chapter 13 section 22 shall have corresponding application.

Cargo damage and delay in delivery

Section 27 (347)

The carrier shall be responsible according to the provisions in chapter 13 sections 24-35 and 37-39 for loss resulting from goods being lost, damaged or delayed while in his custody. The provisions in chapter 13 section 36 shall also have corre- sponding application.

A receiver who is not the voyage charterer shall also be entitled to compensation according to the first paragraph. If the receiver holds a bill of lading issued by the carrier he may also invoke the provisions of section 5.

BREACH OF CONTRACT AND HINDRANCES ON THE CARRIE’S SIDE

Canceling time

Section 28 (348)

If the vessel must be ready to receive cargo within a fixed limit of time (canceling time), the voyage charterer may cancel the charterparty if the vessel is not ready to commence to take in goods or notice of readiness to load has not been given before the end of the time limit.

If the carrier gives notice that the vessel will arrive after the end of the canceling time and if he states a moment when the vessel will be ready to begin to take reception, the voyage charterer may cancel the contract if he does so within a reasonable time. Unless the contract is so cancelled, the notified moment becomes the ship’s new canceling time.

Delay and other breach of contract

Section 29 (349)

The voyage charterer shall have the right to cancel the charterparty on account of delay or other breach of contract on the carrier’s side, if the breach of contract is essential.

After loading has been completed, the voyage charterer may not cancel the contract if discharging of the goods would cause essential damage or inconvenience to any other charterer. For consecutive voyages the voyage charterer may not cancel the contract in respect of a single voyage, unless the performance of that voyage is unessential for the carrier in relation to the remaining voyages.

If the voyage charterer wishes to cancel the contract, he must give notice thereof within a reasonable period after he must be assumed to have become aware of the breach. Unless he does so, the right of cancellation shall be lost.

Loss of vessel

Section 30 (350)

If the charterparty is for a specific vessel and that vessel is lost or condemned after damage, the carrier is not obliged to perform the voyage. Nor in such cases is he entitled to perform the voyage with another vessel, even if a general provision in the contract should permit the substitution of the vessel for another than the contracted one.

Carrier’s liability in damages

Section 31 (351)

If as a result of delay or other breach of contract on the carrier’s side there arises loss which is not covered by section 27, chapter 13 sections 25 and 26 shall have corresponding application.

BREACH OF CONTRACT AND HINDRANCE ON THE VOYAGE CHARTERER’S SIDE

Renunciation before end of loading

Section 32 (352)

If the voyage charterer renounces the charterparty before loading has commenced or if, after indicating such intention, he has not at the end of loading delivered all the goods covered by the contract, the carrier shall be entitled to compensation for loss of freight and other loss. For consecutive voyages renunciation of a single voyage is allowed only if the performance of such voyage is insig- nificant in relation to the remaining voyages.

In determining the compensation, regard shall be paid to whether the carrier failed without due cause to bring other cargo.

There shall be no right to compensation if the means of deli- vering, carrying or importing the cargo to the place of destination must be considered precluded by causes which the voyage charterer ought not to have contemplated at the time of concluding the contract, such as export or import prohibition or any other measure of authorities, the destruction of all goods of the kind contracted for or any similar occurrence. The same shall apply if the contract was for specific goods which were accidentally destro- yed.

If the voyage charterer wishes to invoke a circumstance mentioned in the third paragraph, he must inform the other party within a reasonable time. If he does not do so, he must compensate the loss which could have been avoided if notice had been given in such time.

Right of cancellation etc.

Section 33 (353)

If the voyage charterer may re- nounce the charterparty without liability in damages according to section 32 third paragraph, the carrier may similarly renounce the contract if he gives notice thereof within a reasonable period.

If the voyage charterer does not deliver all the cargo covered by the contract, the carrier may prescribe an additional period within which the voyage charter must pay compensation or lodge security. Unless the period is unreasonably short, the carrier may cancel the charterparty if payment is not made or security lodged within the additional period. He is also entitled to damages according to section 32.

Renunciation after loading

Section 34 (354)

After loading has been performed, the voyage charterer has no right to require the goods to be unloaded or the voyage to be interrupted if this should involve essential loss or inconvenience to the carrier or any other charterer. The provisions of sections 32 and 33 shall have corresponding application.

Delay in loading

Section 35 (355)

If the time on demurrage has been fixed by contract and at the end thereof the voyage charterer has not delivered the goods or only part thereof, sections 32 and 33 shall have corresponding application. The same shall apply if the charterparty contains the clause liner terms and the lay time has expired.

If the length of the time on demurrage has not been agreed and the loading is so much delayed that essential loss or inconvenience arises to the carrier even if demurrage is paid, the carrier may cancel the contract or, if goods have already been delivered, declare the loading to be completed. In such a case the provisions of sections 32 and 33 shall have corresponding application.

Other delay

Section 36 (356)

If the ship is delayed after loading or during the voyage and if this depends on a circumstance on the voyage charterer’s side, the carrier shall be entitled to compensation, unless the voyage charterer shows that neither he nor any one for whom he is responsible has been guilty of fault or neglect. The same shall apply if the vessel is delayed during discharge because it has not been possible for the carrier to warehouse the goods according to section 26.

If freight, demurrage or other claims according to a contract for consecutive voyages are not paid in due time, the carrier may prescribe an additional period for the payment. Unless the time is unreasonably short, the carrier may suspend performance of the contract or cancel it, if the claim is not paid within the additional period. The carrier shall be entitled to damages for loss resulting from the suspension of performance or, in the event of cancellation, the termination of the remaining voyages.

Loss arising from goods

Section 37 (357)

If the goods have caused loss to the carrier or caused damage to the vessel, the voyage charterer shall pay damages, if he or any one for whom he is responsible has been guilty of fault or neglect. The same shall apply in part chartering if the goods have caused damage to other goods on board the vessel.

LOSS OF THE CHARTERPARTY

War risk etc.

Section 38 (358)

If after the conclusion of the charterparty it appears that the voyage will be fraught with danger for the vessel, persons on board or the cargo due to any war, blockade, revolution, civil commotions, piracy or other armed violence, or that such danger has considerably increased, both the carrier and the voyage charterer may renounce the contract without any duty to pay compensation even if the voyage had begun. The party who wishes to renounce the contract must inform the other party within a reasonable time. If he does not do so, he must compensate the loss which could have been avoided if notice had been given within such time.

If the danger can be averted by part of the goods being left behind or unloaded, the contract may be renounced in respect of that part only. The carrier shall, however, be entitled to renounce the contract in its entirety if this can be done without essential loss or inconvenience to any other charterer or unless, upon his demand, compensation is paid or security is lodged for loss of freight and other loss.

Renunciation in consecutive voyages

Section 39 (359)

For consecutive voyages renun- ciation according to section 36 may be limited to a single voyage only if the performance of that voyage is unessential in relation to the remaining voyages.

If the charterparty gives the voyage charterer the right to chose which voyages the vessel shall perform, renunciation according to section 36 is permissible only if the danger is of essential importance for the fulfillment of the contract.

Cost of delay

Section 40 (360)

If on account of a danger mentioned in section 38 the vessel is delayed, after loading has commenced, at the port of loading or any other port in the course of the voyage, the costs of the delay shall be regarded as costs of general average and be distributed upon the vessel, the freight and the cargo according to the rules of general average. If the charterparty is re- nounced, this shall not, however, apply to costs in respect of any time after renunciation.

Expiry of the contract period for consecutive voyages

Section 41 (361)

If the vessel has been chartered for as many voyages as she can perform within a stated period and the voyage charterer has been notified before the end of the contracted period of the vessel’s being ready to receive cargo, the voyage shall be performed even if such performance shall occur wholly or partly after the end of the contracted period.

If it is clear that the vessel will not be able to reach the port of loading and be ready to commence to take in cargo before the end of the contract period, the carrier shall not be obliged to send the vessel to the port of loading.

If the carrier gives notice that the vessel may arrive late at the loading port and if he demands instructions, the voyage charterer may decide either that the voyage shall be performed according to the charterparty or that the contract shall expire. The contract shall expire if the voyage charterer has not required the fulfilment of the voyage within a reasonable time after being notified.

QUANTITY CONTRACTS

Field of application

Section 42 (362)

The provisions on quantity contracts apply to carriage on board ship of a definite quantity of goods divided into several voyages during a provided period.

The provisions are not applicable, however, if it is agreed that the voyages shall be performed consecuti- vely on a given vessel.

Choice of quantity

Section 43 (363)

If the contract allows a choice of the total quantity of goods to be carried, the charterer shall be entitled to decide the quantity.

Shipment plans

Section 44 (364)

The charterer shall prepare shipment plans for suitable periods in relation to the total contract period and shall give the carrier timely infor- mation of the plans.

The charterer shall ensure that the quantity of goods covered by the contract is suitably divided over the contract period.

Notice of shipment

Section 45 (365)

The charterer shall notify each shipment in reasonable time. The notice shall state the latest moment at which the goods will be ready for loading.

Nomination of vessel

Section 46 (366)

When notice of a shipment has been given, the carrier shall provide a vessel apt to perform the voyage in due time. The carrier shall in reasonable time nominate the vessel that shall perform the voyage, stating her loading capacity and expected time of arrival at the port.

The carrier shall not be obliged to provide a vessel for goods which are not ready to be loaded before the end of the contractual period, unless the delay depends on circumstances outside the charterer’s control and is not essential.

Performance of voyages

Section 47 (367)

When the carrier has given notice according to section 46, the provisions on carriage of general cargo or those of chartering shall apply to the carriage to be performed.

If the carrier’s duty to perform a particular voyage has terminated through a circumstance for which the carrier is responsible, the charterer shall be entitled to insist on the carriage of the goods or a corres- ponding quantity of new goods.

If the annulment of the voyage gives cause to apprehend that later voyages may not be performed without essential delay, the charterer may cancel the contract in respect of the remaining part.

Delay in notifying shipments and shipment plans

Section 48 (368)

If the charterer does not give timely notice of a shipment, the carrier may prescribe a certain additional period for notice. If a shipment has not been notified within such additional period, the carrier may, unless the period is unreasonably short, either nominate a vessel pursuant to section 46 in accordance with the applicable shipment plan or cancel the contract in respect of that voyage.

If the delay gives occasion to count upon essential delay in reporting later shipments, the carrier may cancel the contract in respect of the remaining part.

The carrier shall be entitled to damages unless the delay depends on a circumstance such as mentioned in section 32 third paragraph.

If the charterer does not give timely notice to the carrier of his shipment plans, the carrier may prescribe a certain additional period. If the period is exceeded and is not unreasonably short, the carrier may cancel the contract in respect of the remaining part.

Delay in nominating vessel

Section 49 (369)

If the carrier does not nominate a vessel in time, the charterer may prescribe a certain additional period. If the nomination is not given within the additional period and the period is not unreasonably short, the charterer may cancel the contract in respect of the voyage for which the additional period has been prescribed.

If the delay gives cause to count upon essential delay in nominating vessels for later shipments, the charterer may cancel the contract for the remaining part.

The charterer shall be entitled to damages, unless the delay depends on such a hindrance outside the carrier’s control as the carrier could not reasonably have contemplated when the contract was concluded and the consequences of which he could not reasonably have avoided or overcome.

Delay in freight payment

Section 50 (370)

If freight, demurrage or other charges according to the contract are not paid in time, the carrier may prescribe a certain additional period for payment. If the claim is not paid within the additional period and the period is not unreasonably short, the carrier may suspend performance of the contract or, if the delay amounts to an essential breach, cancel the contract.

The carrier shall be entitled to damages for any loss resulting from his suspension of performance or, if the contract is cancelled, from the termination of the remaining voyages.

At the end of each voyage under the contract, the carrier may withhold the cargo as security for charges according to the contract. When a bill of lading has been made out, this shall apply in relation to a third party only if the claim has been noted on the bill of lading.

War danger

Section 51 (371)

If in the course of the contract period there arises a war, warlike conditions or any essential increase of danger of war and if this is of essential importance for the fulfilment of the contract, both the carrier and the charterer may renounce the contract without any duty to pay compensation.

The party that wishes to renounce the contract shall so inform the other party in reasonable time. If he does not do so, he must compensate any loss that could have been avoided if notice had been given in such time.

Chapter 14A. Time Charter

Delivery of vessel

Condition and equipment of the vessel

Section 52 (372)

The carrier shall place the vessel at the time charterer’s disposal at the place and time agreed.

On delivery the carrier shall ensure that the vessel’s condition, prescribed documentation, manning, victualling and other equipment fulfil the requirements of ordinary carriage in the sailing range stated in the time charterparty.

The vessel must also have on board sufficient bunkers to reach the nearest accessible bunkering port. The time charterer shall take over the bunkers and pay for them at the price current at the port.

Inspection

Section 53 (373)

On delivery, both the carrier and the time charterer may demand a customary inspection of the vessel, her equipment and remaining bunkers.

The costs of the inspection, including such due to loss of time, shall be shared by the parties in equal parts.

The inspector’s certificate shall be proof of the condition of the vessel and equipment and the quantity of remaining bunkers, unless otherwise proved.

Delivery at sea

Section 54 (374)

If the parties have agreed that the vessel shall be delivered at sea, the carrier shall notify the time charterer of the delivery, stating the vessel’s position and the moment of delivery.

The inspection rules in section 53 shall apply to the first port at which the vessel calls after delivery if any defect is discovered at the inspection, hire shall not be payable for the time lost in repairing the defect. If the time charterer cancels the charterparty according to section 56, the carrier shall lose his right of hire from the time of delivery.

Canceling time and delay in delivering the vessel

Section 55 (375)

If according to the charterparty the vessel must be ready to take in cargo before a certain last moment (canceling time), the time charterer may cancel the contract if the vessel is not ready to begin taking in cargo or if notice of readiness to load has not been given before the end of the period. If otherwise the vessel must be delivered before a certain time limit, the time charterer may cancel the contract if the limit is exceeded.

If the carrier gives notice that the vessel will be late and states a time when the vessel will be ready to take in cargo or be delivered, the time charterer may cancel the contract if he does so within a reasonable period. If the contract is not cancelled, the stated period becomes the new canceling time.

If the vessel is otherwise delivered too late, the time charterer may cancel the contract if the delay amounts to an essential breach of contract.

Defects in the vessel

Section 56 (376)

If upon delivery there is a defect in the vessel or her equipment, the time charterer shall be entitled to make deduction from the hire or, if the breach of contract is essential, cancel the charterparty. This does not apply if the carrier repairs the defect without such delay as would entitle the time charterer to cancel the contract under section 55.

Liability in damages

Section 57 (377)

The time charterer shall be entitled to damages for loss resulting from delay or any defect on delivery if the carrier shows that the delay or the defect is not due to his own fault or neglect or that of any one for whom he is responsible, there shall be no right to such damages. The time charterer shall also be entitled to damages for loss due to the absence, at the conclusion of the contract, of any quality or equipment which may be considered to be warranted.

PERFORMANCE OF VOYAGES

Time charterer’s right of disposal

Section 58 (378)

During the period of charter the carrier shall perform the voyages which the time charterer orders in accordance with the charterparty. He shall be responsible for the continuous maintenance of the vessel as required in section 52 second paragraph.

The carrier shall not be obliged to perform a voyage on which the vessel, persons on board or the cargo may be exposed to danger as a consequence of war, warlike conditions, ice or any other danger or essential incon- venience which he could not reasonably have contemplated when the contract was concluded.

The carrier shall not be obliged to load goods of an inflammable, combustible or corrosive nature or other dangerous goods, unless they are delivered in such condition that they can be carried and delivered in accordance with the requirements and recommendations prescribed by the authorities of the country where the vessel is registered, of the country where the managing owner has his main office and of the ports called at on the voyage. Nor shall the carrier be obliged to bring live animals on the voyage.

 

Information duty

Section 59 (379)

The carrier shall keep the time charterer informed of any conditions concerning the vessel and voyages which are of importance to the time charteret. The time charterer shall inform the carrier of the voyages he has planned.

Bunkers

Section 60 (380)

The time charterer shall ensure that bunkers and water are available for the vessel’s machinery. He shall be responsible for bunkers being in accordance with agreed specifications.

Loading and discharge

Section 61 (381)

The time charterer shall be in charge of reception, loading, stowage, trimming, securing, discharge and delivery of the cargo. Stowage shall be so performed that the vessel is safely stabilised and the cargo secured. The time charterer shall follow instructions of the carrier concerning the distribution of the cargo on board as far as required for the vessel’s safety and stability.

The time charterer may require such assistance by the master and crew as is customary in the trade in question. Compensation for overtime work and other special expense for such work shall be paid by the time charterer.

If the carrier must cover loss caused in loading, stowage, trimming, securing, discharge or delivery of cargo, the time charterer shall indemnify him, unless the loss depends on the assistance of the master or crew or any other circumstance for which the carrier is responsible.

Bill of lading

Section 62 (382)

The carrier shall issue bills of lading for loaded cargo as ordered by the time charterer in respect of the voyage he is to perform, on conditions customary in the trade in question. If thereby he incurs liability to the holder of the bill of lading in excess of what follows from the charterparty, the time charterer shall indemnify him therefore.

The carrier shall not be obliged on account of the time charterer’s orders to deliver cargo to a party who does not show authority or otherwise to deliver in violation of the bill of lading terms, if this should involve dealing contrary to god faith. Otherwise, the carrier may always require security for any damages which he may become liable to pay on account of any delivery.

Cargo damage and delay in delivery

Section 63 (383)

The carrier shall be liable to the time charterer according to the provisions of chapter 13 sections 24-35 and 37-39 for loss, damage or delay to the goods while in his custody. The provisions of chapter 13 section 36 shall also have corresponding application.

A receiver who is not the time charterer shall also be entitled to damages according to the first paragraph. If the receiver holds a bill of lading issued by the carrier he may invoke also the provisions of section 5.

Delay and other breach on the carrier’s side

Section 64 (384)

If the vessel is not maintained in a seaworthy condition or otherwise according to the contract or if there is delay on her voyages or other breach on the carrier’s side, the time charterer may cancel the charterparty, if otherwise the purpose of the contract would be essentially frustrated. If the time charterer wishes to cancel the contract, he shall give notice thereof in reasonable time after he must be assumed to have become aware of the breach of contract. If he does not give such notice, the right of canceling is lost.

The time charterer shall be entitled to compensation for damage which has arisen from the vessel being lost or condemned or not being kept seaworthy or in the condition otherwise contracted for, if the damage is due to the fault or neglect of the carrier or any one for whom he is responsible. The same shall apply to loss arising through any fault or neglect in such assistance by the master or crew as is mentioned in section 61 second paragraph in the execution of the time charterer’s instructions or through any other breach than such mentioned in the foregoing sentence.

Damage to vessel

Section 65 (385)

The carrier shall be entitled to compensation for damage to the vessel due to the fault or neglect of the time charterer or any one for whom he is responsible.

If the time charterer has ordered the vessel to an unsafe port, he shall be liable for any resulting damage to the vessel unless he shows that there has been no fault or neglect.

General average and salvage

Section 66 (386)

Contribution from freight to general average shall be paid by the time charterer. The same applies to contribution to general average which shall be paid in respect of bunkers and equipment which the time charterer has on board. If general average com- pensation is paid for expenditure or loss suffered by the time charterer, the compensation shall be due to the time charterer.

The carrier may save persons without the time charterer’s consent. He may also salvage vessels or other property provided this is not unfair to the time charterer. One third of the carrier’s share of the remainder of the remaining net salvage award according to chapter 16 section 6 second paragraph shall fall to the time charterer.

Voyage expenses

Section 67 (387)

The time charterer shall bear such expenses for the performance of voyages as are not borne by the carrier according to the provisions of this chapter.

REDELIVERY OF VESSEL

Redelivery and inspection

Section 68 (388)

The time charterer shall redeliver the vessel to the carrier at the place and time agreed.

For redelivery the provisions in section 52 third paragraph, section 53 and section 54 first and second paragraphs first sentence shall have corresponding application. This also applies when the charterparty has been cancelled or otherwise terminated before the end of the charter period.

Exceeding the charter period (overlap)

Section 69 (389)

The carrier shall be obliged to let the vessel proceed upon a new voyage although the agreed time for redelivery is thereby exceeded. This shall not apply if the excess is more than can be considered reasonable or if a set period for redelivery has been agreed upon.

For such excess of time as is permissible according to the first paragraph, the time charterer shall pay current hire, though not less than the agreed hire, and compensation for any damage which the delay causes the carrier.

HIRE

Payment of hire

Section 70 (390)

Hire shall be paid for a period of 30 days in advance.

If the time charterer demands deduction of any amount in dispute, he must still pay the hire, if the carrier lodges security for the claim. The time charterer may not, however, demand security for an amount higher than the hire he pays.

Delay in paying hire

Section 71 (391)

If hire is not paid on time, the time charterer shall pay default interest in accordance with the interest on Debts Act (1975:635).

If the hire has not been paid on time, the carrier shall give notice to the time charterer. When such notice has been sent off, the carrier may suspend performance of the charter- party, and also refuse to load cargo and issue bills of lading. If payment has not been received within 72 hours after sending the notice, the carrier may cancel the contract.

If the carrier has suspended performance of the contract or cancelled it, he shall be entitled to damages, unless the time charterer shows that the delay in payment was due to any legal prohibition, break-off of general communications or bank payments or any other similar hindrance which the charterer could not reasonably have taken into consideration when the contract was concluded and the consequences of which he could not reasonably have avoided or surmounted.

If the time charterer does not pay hire which is due, the carrier may require that the time charterer shall assign to him any freight claim belonging to the time charterer on the basis of any contract for the sub- chartering or sub-affreightment of the vessel.

Time off hire

Section 72 (392)

Hire shall not be payable for time lost to the time charterer in salvage operations, maintenance of the vessel and repair of damage for which the time charterer is not liable nor for any other occurrences on the carrier’s side.

The time charterer’s liability for expenses in the operation of the vessel shall be limited in the corresponding manner.

EXPIRY

Loss of vessel

Section 73 (393)

If the vessel is lost or condemned after damage, the charterparty shall expire even if a general provision in the contract should permit the substitution of the vessel for another than that contracted for. The same shall apply to requisition of the vessel or similar measures which are of essential importance for the fulfilment of the contract.

If the vessel has been lost without information being available of the time of the event, hire shall be payable for 24 hours after the vessel was last heard of.

War

Section 74 (394)

If the vessel is at a port or in any other area where war breaks out, warlike conditions occur or the danger of such conditions increases essentially, the carrier shall be free to take the vessel immediately from the vicinity into safety.

The time charterer shall com- pensate the carrier, besides by payment of hire, for any additional costs for war insurance for the vessel and for any war risk bonus to the crew following from the voyages which the time charterer orders the vessel to perform.

If during the contract period there arises war, warlike conditions or any essential increase of war risk and if this is of essential importance for the performance of the charter agreement, both the carrier and the time charterer may renounce the contract without any duty to pay compensation.

The party that wishes to renounce the contract shall inform the other party within a reasonable time. If he does not do so, he must compensate the damage which could have been avoided if notice had been given within such time.

Chapter 15. On Carriage of Passengers and Luggage

Introductory provisions

Section 1

In this chapter the following words have the following meanings:

Carrier  any person who, professionally or for remuneration, contracts to carry passengers or passengers and luggage on a vessel,

Passenger  any person carried or to be carried by vessel under a contract of passage and any one who with the connivance of the carrier accompanies a vehicle or live animal carried according to a contract for the carriage of goods,

Luggage  any object, including a vehicle, which is carried for a passenger except under a charter party or a bill of lading or other document normally used for the carriage of goods,

hand luggage  luggage which a passenger brings with him or keeps in his cabin or otherwise in his custody during the voyage, including any object carried in or on his vehicle.

Section 2

The provisions of the present chapter shall not apply to the extent that the carriage is subject to any international agreement in force for the carriage by any other means of transport.

Section 3

If any one who is neither a passenger or employee of the carrier nor performs services for the vessel suffers loss on board as described in sections 17 or 18, the provisions of the present chapter relating to the carrier’s exemption from and limitation of liability shall inure for the benefit of any person on the shipowner’s side who may be held liable for the loss.

Carriage

Section 4

The carrier shall ensure that the vessel is seaworthy, which also includes being properly manned, victualled and equipped, and that the passenger and his luggage are promptly and safely conveyed to the place of destination. The carrier shall also provide for the passenger in other respects.

Luggage may not be conveyed on deck.

Deviation is permissible only for the purpose of saving human lives or of salvaging any vessel or goods or for any other reasonable purpose.

Section 5

If the contract of carriage is for a named vessel, the carrier may not perform the carriage by any other vessel.

Section 6

If the contract of carriage is for a named person, such person may not assign his rights under the contract to another. After the commencement of the voyage, assignment is not permissible even if the contract is not for a named person.

The first paragraph shall not apply to contracts governed by the Act (1992:1672) on Package Tours.

Section 7

The passenger shall observe any applicable regulation concerning order and safety during the voyage.

The provisions of sections 24, 53 and 54 of the Seamen’s Act (1973:282) regarding investigation of criminal offences committed on board and coercive measures against crew members shall apply against passen- gers also.

Section 8

The passenger may bring luggage to a reasonable extent.

If the passenger knows that his luggage may create danger or substantial inconvenience to any person or property, he shall notify the carrier before the beginning of the voyage. The same shall apply if luggage other than hand luggage requires special care. Luggage of such nature as stated in this section shall, if possible, be marked to that effect before the voyage begins.

Section 9

The carrier may refuse to let the passenger bring such luggage as may cause danger or substantial incon- venience to any person or property.

If such luggage has been brought on board without the carrier having knowledge of its nature, the carrier may accord to the circumstances land it, destroy it or render it innocuous without any obligation to compensate the damage. The same shall apply if the luggage, after being taken on board with the carrier’s knowledge of its nature, should turn out to involve such danger or substantial inconvenience to any person or property that it is not defensible to keep it on board.

Section 10

If luggage has caused loss to the carrier or damage to the vessel, the passenger shall be liable for compensation if the loss or damage is due to the fault or neglect of the passenger or any one for whom he is responsible.

Section 11

The carrier is not bound to deliver luggage other than hand luggage until the passenger has paid for the voyage and for meals and other service in the course of it. In the absence of payment, the carrier may place the luggage in safe custody and sell, by public auction or by other reasonable means, as much thereof as is necessary to cover his claim as well as costs of sale and storage.

Section 12

If the contract of carriage is for a named vessel and, before the beginning of the voyage, that vessel is lost or condemned after damage, the carrier’s obligation to perform the carriage shall be terminated.

If the vessel’s departure from the place where the voyage is to begin is substantially delayed, the passenger shall be entitled to cancel the contract.

Section 13

If the vessel is delayed during the voyage to such extent that the passenger cannot reasonably be expected to wait, or if the vessel is lost or condemned after damage, the carrier shall ensure that the passenger and his luggage are conveyed to the desti- nation in some other suitable manner and shall bear the costs therefor if the carrier fails to do so, the passenger shall be entitled to cancel the contract.

If, on account of damage or other cause affecting the vessel, the passen- ger must stay ashore, the carrier shall provide for his subsistence as appropriate and shall bear the costs therefor.

Section 14

If the passenger does not begin the voyage, or if he discontinues it, the agreed fare shall nevertheless be due. This shall not apply if the passenger’s failure is due to illness or other reasonable cause of which the carrier has been notified in reasonable time.

Nevertheless, if the carrier has substituted another passenger for one who must pay his fare according to the preceding paragraph or has otherwise limited or ought to have limited his loss, the fare shall be reduced accordingly as reasonable.

Section 15

If after the conclusion of the contract of carriage it appears that the voyage would involve danger to the passenger or the vessel due to war, blockade, insurrection, disturbances, piracy, or any other armed violence or that such danger has considerably increased, each party shall be entitled to cancel the contract even if the voyage has already commenced. If the contract is thus cancelled, each party shall bear his own cost and loss.

Section 16

If the passenger discontinues the voyage for any cause referred to in the second sentence of the first paragraph of section 14, or if the contract of carriage is cancelled according to section 13 or, after commencement of the voyage, section 15, the fare shall be reduced. Such reduction shall be determined with regard to the ratio between the length of the agreed and the remaining voyage, the time elapsed and the costs incurred.

If the carrier has received payment in excess of what is thus due to him, he must repay the surplus.

Carrier’s liability

Section 17

The carrier shall be liable for personal injury to the passenger resulting from any occurrence during the carriage, if that injury was caused by the fault or neglect of the carrier or any one for whom he is responsible. The same shall apply to loss as a result of the passenger being delayed, even if the delay did not result from any event during the voyage.

Section 18

The carrier shall be liable for any loss of or damage to luggage in consequence of any event during the voyage, if the loss or damage was caused by the fault or neglect of the carrier or any one for whom he is responsible. The same shall apply to loss through luggage being delayed even if the delay is not caused by any event during the voyage. Delay in the sense of this paragraph shall include delay in delivery of the luggage at the destination.

The carrier shall not be liable for loss of moneys, bonds and other valuables unless he has received the property for safe custody.

Section 19

If any fault or neglect on the passenger’s side has contributed to such loss as is referred to in sections 17 or 18, the provisions of chapter 6 section 1 of the Tort Liability Act (1972:207) shall apply.

Section 20

It is incumbent on the carrier to prove in exoneration of liability that loss referred to in sections 17 or 18 has not been caused by his own fault or neglect or that of any one for whom he is responsible. For personal injury and loss of or damage to hand luggage this shall apply only if the loss or damage has occurred at or in connection with any shipwreck, collision, stranding, explosion or fire, or occurred as a result of any defect in the vessel.

Section 21

The carrier’s liability for personal injury shall not exceed 175,000 SDR for each passenger. When the compensation is to be paid as a life annuity, its capitalized value must not exceed this limit. For delay to passengers, the liability shall not exceed 4,150 SDR for each passenger.

For damage to, or loss of or delay to luggage, the liability shall not exceed-

1. 1,800 SDR for each passenger with respect to hand luggage,

2. 6,750 SDR for each passenger with respect to valuables which the carrier has received for safe storage,

3. 10,000 SDR for any vehicle, and

4. 2,700 SDR for each passenger with respect to other luggage.

The limitation amounts shall apply per voyage. They do not apply to claims for interest or compensation for costs of the action.

The meaning of SDR is set out in chapter 22 section 3.

The carrier may by express agreement assume higher liabilities than prescribed in this section.

Section 22

The carrier shall be entitled to a deductible from the damages in an amount not exceeding the following-

1. 150 SDR for each damaged vehicle,

2. 20 SDR for other damaged luggage, and

3. 20 SDR for loss due to delay to a passenger or his luggage.

Deduction according to the preceding paragraph shall take place before the question of limitation under section 21 is tried.

Section 23

The carrier shall not be entitled to invoke the provisions in sections 21 and 22 on limitation of liability or the application of a deductible if it is shown that he himself caused the damage intentionally or by gross negligence and with knowledge that such damage would probably occur.

Section 24

The provisions regarding exemp- tion from or limitation of the carrier’s liability shall apply even if the action against him is not based on the contract of carriage.

Section 25

If carriage is performed wholly or partly by another than the carrier the carrier shall nevertheless remain liable as if he had himself performed the entire carriage. In such case the provisions of the present chapter shall apply as far as relevant.

If the other person performs the carriage by vessel, he shall be liable in respect of his part of the carriage, according to the same rules as the carrier. If the carrier has undertaken liability above what is prescribed in this chapter, the person performing the carriage shall not be bound by this, unless he has agreed to it in writing.

As far as liability rests on both the carrier and a person referred to in the second paragraph, their liability shall be joint and several.

Section 26

If an action is brought against any one for whom the carrier is responsible under section 25 or chapter 7 section 1, that person shall be entitled to the same exemption from and limitation of liability as the carrier. The aggregate liability of the carrier and such other person shall be limited according to section 21.

The provisions of the preceding paragraph shall not apply for the benefit of any person shown to have caused the loss either intentionally or by gross negligence and with knowledge that such damage would probably occur.

Section 27

A claim for compensation for personal injury or delay to a passenger may be brought only by the passenger or the holder of his rights or, in case of death, by a person entitled to com- pensation under chapter 5 section 2 of the Tort Liability Act (1972:207).

Section 28

Rules on forum for disputes concerning liability arising out of a contract of carriage for a passenger or his luggage and on the admissibility of submitting such disputes to arbitration are laid down in chapter 21 section 4.

Provisions on time bar are set out in chapter 19 section 1.

On the validity of contract Provisions

Section 29

The provisions of section 7 may not be set aside by contract.

Contract stipulations restricting a passenger’s rights under sections 10-27, chapter 19 section 1 first para- graph items 6 and 7-20 and chapter 21 section 4 first and second paragraphs shall be void-

1. in domestic carriage within Sweden, Denmark, Finland or Norway or to or from any of those States, regardless of which law is otherwise applicable to the carriage;

2. in other carriage to which Swedish law is applicable according to general Swedish choice-of-law rules.

Other provisions of this chapter shall apply only unless it is otherwise agreed or follows from custom.

Section 30

Notwithstanding the provisions of section 29, the carrier may exempt himself from liability in relation to a passenger in respect of the time before embarkation on and after disembarkation from the vessel. Such exemption is not permissible in respect of transport by water between a vessel and land if the cost of such transport is included in the fare or the means of transport used has been provided by the carrier.

For hand luggage which is not in or on a vehicle which a passenger has brought with him, the carrier may exempt himself from liability for the time before the luggage is brought on board and after it has been taken ashore. Such exemption is not per- missible in respect of such transport to or from the vessel as is referred to in the first paragraph, nor in respect of such time as the hand luggage is in the custody of the carrier while the passenger is in a terminal building, on the quay or elsewhere on the port premises.

If it has been agreed that a definite part of the carriage shall be performed by a named person other than the carrier, the carrier may exempt himself from liability for any damage caused by an occurrence during that part of the carriage which is performed by such other person. The same shall apply if, under the terms of the contract, the passenger is entitled to engage another than the carrier for the whole or part of the voyage.

Part V Marine Accidents

Chapter 16. On Salvage

Section 1

Any person who salves or assists in salving a vessel which has found- ered or is in distress, or cargo on board or anything that has pertained to such vessel or cargo, shall be entitled to salvage remuneration. Any one who has rescued or assisted in rescuing any person during the danger that gave rise to the salvage shall be entitled to a share of the remuneration.

Any one taking part in a salvage operation against the express and reasonable prohibition of the master of the vessel shall not be entitled to salvage remuneration.

Salvage remuneration shall be payable, if required, even if a vessel salved by another belongs to the same owner as the other vessel.

If any person is bound by contract to perform towage or pilotage or render similar services to a vessel and if that vessel becomes endangered, he shall be entitled to salvage remunera- tion for assistance to the vessel only insofar as the assistance cannot be considered to be part of his duties under the contract.

If cargo or anything pertaining to cargo has been salved, the owner shall be liable in rem with the property but not personally.

Section 2

In determining the amount of salvage remuneration, the following circumstances shall be considered.

1. In the first place:

(a) to what extent the salvage operation was successful,

(b) the skill and proficiency with which the salvage operation was conducted, and the time and effort employed,

(c) the danger to which the salved vessel, her passengers, crew or goods have been exposed,

(d) the danger to which the salvors and their gear have been exposed,

(e) the risk of incurring damages against cargo owners or others or of suffering other loss to which the salvors have been exposed,

(f) any loss of life, personal injury or damage to property which the salvors may have suffered in the performance of the salvage operation, as well as the value of the equipment used therein,

(g) the fact that the salving vessel was specially equipped for salvage operations.

2. In the second place:

the value of the property salved.

If any person who has taken part in a salvage operation has by fault or neglect caused the danger to which the vessel was exposed or has been guilty of theft or pilfering or concealing of salvaged goods or has been guilty of other such deceitful conduct, the salvage remuneration may be declared forfeit or reduced.

Section 3

The salvage remuneration may not be fixed at an amount higher than the value of the property salved. In determining this value, freight, hire and passengers fares shall be included, and deduction shall be made for customs duties and other charges which are payable from the salved property, as well as for costs for its storage, valuation and sale.

Salvage remuneration shall also include compensation for bringing the salved property to safety including the use for such purpose of any craft or other equipment.

Section 4

If a salvage agreement has been entered into at the moment and under the influence of danger and if the terms of the agreement are found to be unequitable, the agreement may be declared to be wholly or partially void.

The same shall apply to any other salvage agreement, if the salvage remuneration is found to be manifestly disproportionate to the value of the service rendered by the salvor.

The last paragraph of section 2 shall apply also in case a salvage agreement has been concluded.

If a salvage remuneration has been paid while the danger still existed, any person who wishes to recover any part of what he has paid must bring his action within six months after payment. If he fails to do so, he has lost his right to recovery.

Section 5

Any mutual dispute between salvors concerning the apportionment of the salvage remuneration shall be decided on the basis of the considerations indicated in section 2.

Section 6

If a vessel has salved something in the course of a voyage, salvage remuneration shall first be paid for-

1. compensation for damage which may have been caused by the salvage to the vessel, cargo or other property on board,

2. compensation for expenses such as for bunker and wages and fare to the master and crew which have arisen as a result of the salvage operation,

3. special remuneration to any seaman who has made highly meritorious efforts or exposed himself to particular danger.

Of the remainder, the vessel owner shall receive three fifths. Of the rest thereafter one third shall be due to the master and two thirds to the crew proper to be apportioned in relation to their respective wages, provided that the master’s share shall always be at least twice as high as the highest paid member of the crew. A pilot on board shall be entitled to a share of the remuneration as if he were a member of the crew and, unless employed by the shipowner, had first mate’s wage.

If called for by special circums- tances, such as the purpose of the vessel’s voyage or the manner of calculating wages or other compen- sation for those in the vessel’s service, the salvage remuneration may be apportioned according to principles other than those mentioned in the first and second paragraphs.

Any agreement that a smaller share of salvage remuneration earned by a vessel than provided in the first and second paragraphs shall accrue to the master or to the crew shall be void unless the vessel is employed for salvage and is specially equipped therefor or the agreement has been made in connection with signing-on for a particular salvage operation.

Section 7

If salvage has been performed by a Swedish State vessel used exclusi- vely for governmental and not comer- cial purposes, the State may waive the salvage remuneration without incur- ing any liability towards those on board.

Section 8

Any claim for special remunera- tion in accordance with section 6 first paragraph item 3 shall be notified to the vessel owner or master within three months after the completion of the salvage operation.

Section 9

A salved vessel may not, without the salvors’ permission, leave the place to which she has been brought after the salvage, nor may salved property be repossessed by its owner, until salvage remuneration has been paid or security has been lodged therefor.

Chapter 17. On Average

Section 1

The significance and apportion- ment of general average is governed by the York-Antwerp Rules of 1974 un- less otherwise agreed.

The Government shall publish the English text of the rules and a translation thereof into Swedish.

Section 2

Unless otherwise agreed, investi- gation and apportionment of general average shall be made by average adjustment (General Average State- ment) at a place which the vessel owner shall nominate or, if he does not nominate a place, where adjustments in the vessel owner’s district are usually carried out.

In Sweden, adjustments are made by an average adjuster. The average adjuster shall be appointed by the Government. He shall be learned in law.

The provisions of the Code of Judicial Procedure concerning cha- llenge of the impartiality of a judge shall apply to the average adjuster.

Section 3

Rules on inspection and assess- ment of damage sustained or costs incurred by a vessel or by cargo are laid down in chapter 18.

Section 4

An average adjustment shall be requested without delay by the vessel owner or operator or any other party to the average.

Any person affected by the average shall without delay deliver to the average adjuster any documents which the latter deems to be necessary for the examination and apportionment and shall in other respects supply him with information.

Section 5

If average contribution shall be paid by cargo or other goods, the owner thereof shall not be liable personally but only in rem with the goods.

Rules on the vessel owner’s right to retain cargo which is subject to a general average claim are laid down in chapter 13 section 20 and chapter 14 section 25. If the cargo is surrendered to its owner without the latter undertaking personal liability for the average contribution and giving any security required, the vessel owner shall be liable to all other parties to the average for such contribution.

Section 6

If loss or expenditure sustained by the vessel or cargo as a result of a casualty is neither to be considered as general average nor to be apportioned under the terms of chapter 13 section 15 third paragraph and chapter 14 section 40, the loss or expenditure shall, as particular average, fall upon the property which has sustained the loss or caused the expenditure.

If expenditure attributable to particular average has been incurred jointly for vessel and cargo or part of the cargo or parts of it belonging to different owners, the expenditure shall be apportioned upon those parts of the property which benefited from it according to the principles of general average. Costs for salvage of cargo shall be divided proportionally between cargo and the freight charged therefor.

The examination and apportion- ment of average referred to in the preceding paragraph shall be made by average adjustment on the request of any party to the average. The provisions of the present chapter concerning general average adjustment shall apply in relevant parts.

Section 7

When average adjustment is requested, the adjuster shall, as soon as possible, in the manner and to the extent he finds appropriate demand of he parties to the average to submit their claims in writing supported by arguments and the documents they wish to invoke. A notice of his demand shall be published in the Official Gazette (Post & Inrikes Tidningar), unless it is evident that there is no unknown party to the average. If a document is incomplete, the adjuster shall as soon as possible require information of the person who submitted it.

After having received complete documents, the average adjuster shall draw up his average statement as soon as possible. In the statement shall be detailed the procedure for appealing against it. One copy of the statement shall be given to the party who requested the adjustment. Other parties to the average who need the statement shall receive copies of it. Any further parties shall as far as appropriate be immediately and adequately notified that the statement has been delivered.

Section 8

If loss or expenditure apportioned by average adjustment has sub- sequently been made good by the person liable, the adjustment shall be accordingly rectified by additional calculation. The drawing up of an average statement must not be delayed merely because there may be prospects of compensation for the loss or expen- diture.

Section 9

Disputes on the liability of an insurer on account of marine insurance shall be referred to investigation and decision by adjustment (Particular Average Statement). Unless otherwise agreed, the investigation shall be conducted at the place where the insurance contract was made or where such adjustment is usually conducted in that area. The provisions on adjustment of general average in the present chapter shall apply in relevant parts.

Chapter 18. On Log Books, Maritime Declarations and other inquiry into Accidents at Sea, and Surveys

Log books

Section 1

On any merchant vessel having a gross tonnage of at least 20, there shall be kept while the vessel is in operation a ship’s log and, if the vessel is mechanically propelled or fitted with an auxiliary engine, an engine room log. The same shall apply to any fishing vessel having a gross tonnage of at least 80.

The Government or, upon authori- sation by the Government, the Mari- time Administration, may grant ex- emptions from the obligation to keep log books.

Special provisions apply to. other types of records on board certain vessels.

Section 2

Log books shall be kept according to a form to be prescribed by the Maritime Administration. Various forms may be prescribed in consideration of the nature and use of particular vessels.

Entries in log books shall be made in chronological order, in harbour for every day and at sea for every watch. Occurrences during a watch may be temporarily noted in a draft log. Such notes shall be entered into the relevant log book as soon as possible.

 

Log books and drafts thereto shall be kept in an orderly and clear manner. Entries therein may not be erased, crossed out or otherwise rendered illegible. Any writing error shall be corrected by a separate entry.

Section 3

A vessel’s log books shall be kept under the master’s supervision.

If the ship’s log is not kept by the master, it shall be kept by the senior mate. In the ship’s log shall be entered detailed statements on occurrences during the voyage so far as knowledge thereof may be of use to the vessel owner or operator, cargo owner, insurer or other person whose rights may depend on the outcome of the voyage.

The engine room log shall be kept by the chief engineer or, if he so decides, by the senior of the other engineer officers. In the engine room log shall be specified such stores when leaving harbour as are needed for the operation of the engines, the daily consumption thereof and other particulars of importance concerning the running and maintenance of the engines. Hours shall be stated according to the same standard time as used in the ship’s log.

Section 4

Further provisions on the keeping of log books shall be issued by the Government or the Authority appointed by the Government.

Section 5

Any log book kept on a Swedish vessel or on a Danish, Finnish or Norwegian vessel while in a Swedish harbour shall be available to any one who wishes to study its contents, as far as his rights depend thereon. This shall not apply to entries connected with any collision with another vessel, to whose ship log the same access is not offered, until a maritime declaration or investigation according to section 20 is held in public or suit has been brought on account of the collision.

Log books shall be saved by the vessel owner or operator for at least three years after their completion. If during that time suit is brought on account of an occurrence noted in the log book, the book shall be saved until the case has been determined by a judgement which is not open to appeal.

The provisions of the first and second paragraphs shall also apply to any draft log as well as to any record made by technical means concerning the navigation of the vessel and operation of her engines.

Maritime Declarations

Section 6

A maritime declaration shall be instituted for any Swedish merchant or fishing vessel-

1. when, with the vessel under way, any person has or may be supposed to have died or suffered serious personal injury in connection with the operation of the vessel,

2. when otherwise any member of the vessel’s complement or any other person carried on the vessel has or may be supposed to have died or suffered serious personal injury in connection with the operation of the vessel,

3. when any person who has died on board has been buried at sea,

4. when a serious case of poisoning has or can be supposed to have occurred on board,

5. when the vessel has collided with another vessel or has run aground,

6. when the vessel has dis- appeared or been abandoned at sea,

7. when in connection with the operation of the vessel there has occurred or can be supposed to have occurred substantial damage either to the vessel or, while she was under way, to property outside the vessel, or

8. when the cargo has sustained fire, explosion or considerable shifting.

Exemptions in certain cases are provided for in section 13 third paragraph and section 17.

Section 7

A Maritime Declaration shall also be instituted for a Swedish vessel where, in consequence of an occurrence which has or may be supposed to have happened in connection with the operation of the vessel, the Maritime Administration so orders or the master or operator finds cause for it. The same shall apply when a cargo owner or cargo insurer calls for it in cases other than referred to in section 13 third paragraph or section 17 second paragraph in order to gain information of the cause of substantial damage to the cargo which has or may be supposed to have arisen in connection with the operation of the vessel.

If the Maritime Administration orders that a Maritime Declaration shall be instituted, the master or operator shall be notified. A cargo owner or cargo insurer desiring to have a Maritime Declaration made shall submit his request to one of them.

Section 8

Through the Maritime Declaration the occurrence and its causes shall be clarified as far as possible. All circumstances which may be assumed to have contributed to the occurrence or may be of importance from the maritime safety point of view shall be examined.

The examination shall be conducted by interrogation of the master of the vessel and of such members of the vessel’s complement and other persons who are likely to be able to provide information. Docu- ments or objects which may be expected to yield information shall be examined. In so far as it can be expected to further the investigation the Court shall view the vessel or the site of the occurrence.

Section 9

If possible, the Maritime Declaration shall take place in the port where the event occurred or, if it occurred at sea, in the first port at which the vessel calls or her master arrives thereafter. The Maritime Declaration may be postponed until the vessel reaches another port if a substantial saving of costs to the ship or some other considerable advantage can be gained thereby without defeating the purpose of the Maritime Declaration. The master or operator shall promptly notify the Maritime Administration in writing of such postponement and the reason therefor.

While the vessel is at such port as referred to in the first paragraph, the Maritime Declaration may also be held at another place if warranted by special reasons.

A Maritime Declaration occa- sioned by the disappearance of a vessel or the death of the master and every one that could have entered into his position shall be conducted at the place that the Maritime Administration shall decide.

Section 10

A Maritime Declaration held in the realm shall be conducted by a District Court which has been designated as a Maritime Court according to chapter 21 section 1. The Maritime Court which is nearest to the port or place where the Maritime Declaration shall be made according to section 9 shall be competent. Never- theless, the Government may decree with regard to a particular port that another Maritime Court shall be competent, if this is suitable in view of communications and other circums- tances.

Unless otherwise prescribed in this Code, the Act (1946:807) con- cerning Handling of Court Matters shall apply to Maritime Declarations before a Court of Law.

At a Maritime Declaration hearing, the Court shall consist of a presiding judge, learned in law, and two special members having knowledge and experience of shipping and navigation. At least one of the latter should be a thoroughly experienced ship’s officer or engineer officer of the merchant marine with recent experience of such service. For each Maritime Declaration the Court shall appoint the special members from a list made up annually by the Maritime Administration for each maritime survey district. The list shall include at least twenty persons. If in a particular case assistance from any person having expert knowledge is expedient, the Court may call upon such a person to join the Court as additional member, even if his name is not on the list. All special members of the Court shall be Swedish citizens. No minor or person in a state of bank- ruptcy or under guardianship accord- ing to chapter 11 section 7 of the Code of Parents may serve on the Court. Special members are entitled to remuneration from public funds according to provisions to be issued by the Government.

In Denmark, Finland and Norway, Maritime Declarations for Swedish vessels shall be conducted by the Court competent under the law of the respective country.

Other Maritime Declarations out- side the realm shall be conducted by a Swedish Foreign Mission who has been authorised by the Minister for Foreign Affairs to conduct such proceedings. If practicable, there shall assist at the Maritime Declaration two persons summoned by the Mission who have knowledge of shipping and navigation and who shall preferably be Swedish, Danish, Finnish of Norwegian citizens and who shall be free from disquali- fication as required of a judge. If in a particular case assistance from a person having expert knowledge is expedient, the Mission may call upon such a person. Where there is no competent Swedish Foreign Mission, the Maritime Declaration may be conducted by a competent Danish, Finnish or Norwegian Foreign Mission.

Concerning Maritime Declara- tions before a Foreign Mission, the provisions relating to Maritime Declarations before a Court shall apply in relevant parts. A Foreign Mission may not, however, administer an oath or impose a fine.

Section 11

When a Maritime Declaration is to take place, the master of the vessel shall as soon as possible apply therefor to the Court which is to conduct the Maritime Declaration. If such application is not submitted by the master, the owner or operator shall be responsible for making the application. The owner or operator shall also have such responsibility when he has received notice or request according to section 7 second paragraph.

The application shall be in writing and enumerate the whole crew and persons, whether crew members or not, who may be expected to furnish information on the matter and, if possible, the parties concerned and their representatives. A copy of the report prescribed in chapter 6 section 14 shall be enclosed with the application.

If the application is made upon an order or request according to section 7, this shall be stated in the application.

Section 12

When an application has been submitted, the Court shall set a hearing for the Maritime Declaration to take place as soon as possible. If it is suitable, the hearing should be conducted on board the vessel.

The Court shall. in a suitable manner, summon the master of the vessel and the other persons who are to be heard. Members of the crew may be summoned through the master.

The master shall be ordered to bring to the hearing the vessel’s log books and draft logs, so far as available. The master or any other person may be ordered to produce at the hearing any other documents or objects that may be expected to provide information concerning the matter. Such order may be sanctioned by a fine.

As far as possible, the parties shall be summoned by special notification of the time and place of the hearing and time and place where the application for the Maritime Declaration and attendant documents will be accessible. The Maritime Administration shall always be notified of the time and place of the hearing.

The special members of the Court shall examine the application docu- ments. If time allows, they shall, before the hearing, give the chairman a written statement of the circumstances of which they find information called for from a nautical, technical or other point of view.

Section 13

If a Maritime Declaration con- cerns collision with another vessel, the Court may defer the Maritime Declaration if thereby it can be held simultaneously with a Maritime Declaration or corresponding inquiry held for the other vessel. Such deferment may not be longer than is absolutely necessary.

In addition to the provisions of chapter 5 section 1 of the Code of Judicial Procedure, a Maritime Declaration hearing may be held in camera, if information which is secret under chapter 8 paragraph 16 of the Secrecy Act (1980:100) will be presented at the hearing. No private party other than the owner or operator may, without the latter’s consent, be present at a hearing in camera.

If a collision has occurred with a foreign vessel, for which neither a Maritime Declaration is instituted nor a corresponding inquiry is conducted, a Maritime Declaration may be omitted unless the Maritime Administration decides otherwise. If a Maritime Declaration hearing is instituted, the provisions of the second paragraph on proceedings in camera have corres- ponding application.

Section 14

At the commencement of the Maritime Declaration hearing, the vessel’s log books and drafts thereto shall be compared with one another and with the copy of the report submitted with the application accord- ing to chapter 6 section 4. Only those who have been concerned with keeping the log books are entitled to be present at the hearing, unless special reasons call for an exception.

Other documentary material shall be produced and studied as appropriate.

Section 15

The master and other persons summoned shall be heard separately. None of them may be present when another is heard unless special circumstances call for it.

The questioning shall be conducted by the Court. With the permission of the Court questions may also be posed by representatives of the Maritime Administration and by parties. Any person who has been heard shall confirm his statement by oath, unless there are legal objections or the Court finds other special circumstances justifying that oath should not be administered. Before the questioning, the Court shall remind the person to be heard of his obligation to take the oath and of its significance.

The oath referred to in the second paragraph shall have this wording: “I, [name], affirm and declare upon my honour and conscience that I have said the whole truth without concealing, adding or changing anything.”

Any person other than the master or a member of the crew is entitled to remuneration from public funds for his appearance before the Court in accordance with the provisions of remuneration to witnesses. The remuneration shall be paid by the State. Provisions on remuneration for appea- rance before a Foreign Mission shall be issued by the Government.

Section 16

If the findings obtained through a Maritime Declaration are incomplete in some respect, the Maritime Administration may order that the Declaration shall be supplemented by another Maritime Declaration and may determine the place for the new hearing. In such case the provisions in section 7 second paragraph and section 11 shall have corresponding appli- cation.

Section 17

If another satisfactory investi- gation concerning an occurrence referred to in section 6 is available or may be expected to become available, the Maritime Administration may consent to the omission of the Maritime Declaration prescribed in the said section or to its postponement pending the said investigation.

The Government may decree the omission of a Maritime Declaration according to section 6 if the accident or incident is, or will be, subject to an investigation such as referred to in section 20.

The Government may provide limits to the Maritime Administra- tion’s right under sections 7 first paragraph, 13 third paragraph, 16 and 18 second paragraph of ordering a maritime declaration to be held in case the maritime accident or incident is or will be subject to an investigation accord- ing to section 20.

Section 18

For Danish, Finnish or Norwegian vessels the Court shall hear a Maritime Declaration when the master or the operator or the competent Authority in the ship’s homeland find it called for. For other foreign vessels, a Maritime Declaration shall be made if there are reasons for it.

If the interest of maritime safety calls for an investigation of an incident in connection with the operation a foreign vessel, and if the vessel is within the Swedish maritime territory, the Maritime Administration may order the holding of a Maritime Declaration.

If an Authority such as referred to in the first paragraph finds a Maritime Declaration called for, or if the Maritime Administration orders that a Maritime Declaration shall be instituted, the master or operator shall be notified thereof. A Maritime Declaration shall be made upon application by either of them accord- ing to section 11.

Section 19

The Maritime Administration, the Coast Guard, and the Customs and Police authorities shall render the assistance requested for the investi- gation to the District Court seized of the Maritime Declaration. The investigation of the police authorities shall be subject in relevant parts to the provisions on preliminary investi- gations of crimes in chapter 23 of the Code of Judicial Procedure.

Other investigation of maritime accidents

Section 20

Investigations of safety aspects of maritime accidents and other occurrences affecting shipping are governed by the Act (1990:712) on investigation of Accidents.

Surveying

Section 21

Every year the Maritime Admini- stration shall prepare a list of persons qualified to perform surveys of vessels or cargo. The list shall be held available at such District Courts as the Administration shall designate.

Section 22

If a question arises whether a damaged vessel shall be considered a constructive total loss or not, an opinion thereof shall be given by at least three surveyors.

The surveyors shall be appointed on the application of the vessel’s owner, operator or master. Within the realm the Court at the place where the survey takes place shall appoint surveyors from the list mentioned in section 21. Outside the realm surve- yors shall be appointed by the Authority competent according to law or custom at the place of survey, or by a Swedish Foreign Mission or, where there is no such Mission, by a Danish, Finnish or Norwegian Foreign Mission.

For a survey within the realm, the surveyors shall require the master to deliver the ship’s nationality document. If the vessel is declared a constructive total loss, they shall forthwith send the nationality document together with a copy of their opinion and evidence of their appointment to the Maritime Administration. When the survey takes place outside the realm, the Foreign Mission, if possible, shall observe in relevant parts what has now been stated. If the vessel is Swedish, the Maritime Administration shall without delay impart the surveyor’s opinion to the Register Authority.

Section 23

If a vessel or cargo has sustained general average damage, any person affected by the average may have one or several surveyors to examine and evaluate the damage. The same shall apply to particular average damage, when an examination of the damage is necessary for determining the contributory value of the vessel or cargo.

The surveyors shall be appointed by the party affected by the average or, at his request, by the Authority referred to in section 22.

Section 24

If the owner or operator of a vessel, or any person dealing with the vessel on his behalf or the master wants to arrange any other survey of the vessel or cargo than according to sections 22 or 23, and if such person does not appoint his own surveyor, the Authority referred to in section 22 shall upon his application appoint one or more surveyors. The same shall apply if a cargo owner or cargo insurer wants to inspect the cargo in cases other than referred to in section 23.

Section 25

A surveyor may not be denied access to the vessel or cargo for the purpose of his survey unless such access should cause unreasonable expense to the vessel or other substantial inconvenience.

Part VI  Final Provisions

Chapter 19. On Time Bar of Certain Maritime Claims

Section 1

The following claims , whether or not su6Ject to limited liability, shall cease unless action is duly brought-

1. in respect of a claim for salv- age remuneration: within two years from the day on which the salvage operation was terminated,

2. in respect of a claim for a share of salvage according to chapter 16 section 6 second paragraph within one year from the day the owner or operator received notice of the amount of the salvage remuneration and share,

3. in respect of a claim for damage arising out of a collision: within two years from the day on which the damage occurred,

4. in respect of an amount paid in excess of what duly falls upon the payor according to chapter & section l: within a year from the time when he made the payment,

5. in respect of a claim for damages on account of cargo damage, loss or delay in carriage or on account of incorrect or incomplete statements in a bill of lading within a year from the time that the goods were delivered or should have been delivered,

6. in respect of a claim for personal injury or delay in the carriage of passengers: within two years from the disembarkation or, if the passenger died in the course of the carriage, from the day when disembarkation should have taken place or, if the passenger died after disembarkation, within two years after the death but not later than three years from the disembarkation,

7. in respect of a claim for damages for loss of or damage or delay to luggage: within two years from the day the luggage was brought ashore or, if lost, should have been brought ashore,

8. in respect of a claim for general average or other cost which is to be divided according to the same principle (chapter 13 section 15 third paragraph, chapter 14 section 40 and chapter 17 section 6): within a year from the day the Average Statement became unappealable.

If in cases other than according to the first paragraph a debtor is liable for damages or any other claim subject to limitation of liability or to liability only in rem with the goods loaded, the claim shall be extinguished if an action is not duly brought, in respect of claims for damages within two years from the day the damage occurred and in respect of other claims within three years after maturity if the creditor has a claim also against an owner or operator, cargo owner or other person without limitation of liability, the claim may be brought during the period applicable to claims in general.

If a claim referred to in the first or second paragraph has been submitted to an Average Adjuster, an action concerning the claim shall be deemed to have been brought.

The person who has paid a claim referred to in the first paragraph item 5 may seek recourse against the third party after the end of the period laid down there. Such a recourse action may, however, not be brought later than one year from the day the principal claim was paid or an action was brought in respect of such payment.

Any agreement on the prolonga- tion of a period of limitation men- tioned in this section is valid only if concluded after the claim arose and has effect no longer than three years at a time from the day of the agreement, always provided that no period of limitation may be prolonged more than ten years altogether or, in cases referred to in the first paragraph items 6 and 7, more than three years from the moment that disembarkation or bringing of luggage ashore took place or should have taken place. In chapter 13 section 4 first paragraph and chapter 14 section 2 second paragraph there are provisions on the invalidity of contract terms diverging from the provisions in the first paragraph item 5 and the fourth paragraph of this section. In chapter 15 section 29 second paragraph there are provisions on the invalidity of contract terms restricting a passenger’s rights accord- ing to the first paragraph items 6 and 7 of this section.

Any question concerning time bar of claims covered by this section shall, in this country, be determined under Swedish law, even if foreign law is otherwise applicable to the legal relationship.

Chapter 20. Penal Provisions

Section 1

If a master fails to ensure, according to chapter 6 section 1 first and second paragraphs, the vessel’s proper condition, he shall be sentenced to fines or imprisonment not exceeding six months.

The same sentence shall be imposed on an operator who has neglected to remedy a defect or deficiency in the vessel’s seawor- thiness according to chapter 1 section 9 whereof he has been or ought to have been aware.

If an operator neglects within his ability to prevent the vessel from sailing when on account of unseaworthiness a prospective voyage may involve serious danger to those on board, he shall be sentenced to fines or imprisonment not exceeding two years.

Section 2

A person who fails to observe good seamanship for the prevention of any accident at sea shall be sentenced, unless his negligence was insignificant, for negligence in sea traffic to fines or imprisonment not exceeding six months.

If the offence is serious, he shall be sentenced to imprisonment not exceeding two years.

Section 3

A person taking such course, holding such speed or otherwise navigating a vessel in such manner that he unnecessarily disturbs the environ- ment shall be sentenced to a monetary fine.

Section 4

A person who navigates a vessel or otherwise fulfils a function on board of essential importance for safety at sea and in doing so is influenced by alcoholic liquor or any other intoxicant to such an extent that he must be assumed not to be able to perform his duties safely, shall be sentenced for marine intoxication to fines or imprisonment not exceeding six months.

Section 5

If an offence referred to in section 4 is serious, the offender shall be sentenced for gross marine intoxi- cation to imprisonment not exceeding two year in determining whether the offence is serious, it shall be particularly considered whether-

1. the offender was under consi- derable influence of alcohol or any other intoxicant,

2. the task the offender had to fulfil was particularly exacting having regard to the vessel’s characteristics or other circumstances, or

3. the navigation of the vessel involved a manifest danger to safety at sea.

Section 6

If the master leaves his post abandoning the vessel, he shall be sentenced to fines or imprisonment not exceeding one year.

If the master neglects his duties under chapter 6 section 6 first paragraph or other duties as a seaman when the vessel is in danger, he shall be sentenced to fines or imprisonment not exceeding two years.

Section 7

If the master neglects his duties under chapter 6 section 6 second paragraph when an other person is in distress a sea or other danger threatens navigation or under chapter 8 section 4 after the vessel has collided with another vessel, he shall be sentenced to fines or imprisonment not exceeding two years.

Section 8

If a person involved, with or without guilt, in the occurrence of a maritime accident leaves the site of the accident without compelling reasons or otherwise omits to take the measures reasonably called upon or evades giving his name and address or information concerning the event, he shall be sentenced, unless the offence is punishable under section 7, to fines or imprisonment not exceeding one year.

The master of a vessel entered in the Register of Ships may give, instead of his own name and address, the vessel’s name and home port.

Section 9

If the master neglects to perform his duty when ordered to stop or have his vessel searched according to chapter 6 section 3 or provisions issued by virtue of that section, he shall be sentenced to fines or imprisonment not exceeding six months.

Section 10

A master shall be sentenced to fines-

1. if he neglects to inform the operator according to chapter 6 section 1 third paragraph of any defect or deficiency in respect of the proper condition of his vessel,

2. if he neglects his duty under chapter 6 section 4 second paragraph to carry ship documents and a copy of this Code on board the vessel,

3. if he neglects his duty to report as prescribed in chapter 6 section 14 or if he intentionally or negligently makes an incorrect or misleading statement in such report,

4. if in a case such as referred to in chapter 18 section 22 he refuses to deliver the vessel’s certificate of nationality to surveyors, or

5. if in a case such as referred to in chapter 22 section 2 he refuses without lawful grounds to take on board any ship master or seaman, his ashes or remaining personal effects.

The master or operator shall be sentenced to the aforesaid punishment if he neglects his duty under chapter 18 section 11 to apply for a Maritime Declaration or if intentionally or negligently he causes such Declaration to be postponed, without the necessary prerequisites being applicable under chapter 18 section 9.

Section 11

Any person who fails to perform his duty under this Code of keeping a log book or draft log or who intentionally or negligently makes incorrect or misleading statements in the log book or draft shall be sentenced to fines.

The same punishment shall be imposed on-

1. a master or operator who wrongfully refuses another person access to a log book or a draft log or any recording of the vessel’s navi- gation or the running of her machinery produced by technical means, and

2. an operator who neglects his duty to save such document.

Section 12

If any one has been guilty of an offence referred to in sections 1, 2, 4, 5, 6, 7, 8 or 9 and has thereby proven himself to be unfit for such position on board a vessel for which particular competency is prescribed, the Court shall determine that his right to fill that position shall be forfeit for a specified time or for ever Such a decision may concern also other positions than that in which the offence was committed.

If such a decision is taken, the Court shall on the same day inform the Maritime Administration. If the decision concerns a radio operator, the National Post and Telecom Agency shall also be informed.

If prosecution is being prepared, the Maritime Administration may in a clear case pass a decision according to the first paragraph for the period until finally binding judgement or until the Court, after prosecution has commen- ced, shall determine otherwise. If there are no longer reasons for the decision, it shall be forthwith annulled. The right of appeal to the Government against the Maritime Administration’s decision shall not be restricted to a certain period.

Section 13

For the purpose of the provisions of this chapter, a person assuming the master’s place shall be equated with the master, and one managing the ship on behalf of the operator shall be equated with the operator.

Section 14

If several persons have contri- buted to an offence referred to in sections 1, 2, 4, 5, 6, 7, 8 or 9, chapter 23 of the Penal Code shall apply.

No punishment shall be imposed according to this Code if the offence is subject to heavier punishment under the Penal Code.

Chapter 21. Venue and Judicial Procedure in Maritime Matters

Section 1

The Court of first instance in civil litigation concerning any matter covered by this Code is the District Court appointed by the Government (Maritime Court). The same shall apply in criminal cases to any offence covered by this Code, even if the offence is subject to heavier punish- ment under the Penal Code.

If a matter referred to in the first paragraph concerns exclusively a boat which is not operated professionally or otherwise for profit, the case may also be tried by the District Court which is competent under Chapters 10 or 19 of the Code of Judicial Procedure.

Section 2

Concerning the competence of a Maritime Court to try litigation such as envisaged by section 1 first paragraph, the provisions concerning jurisdic- tional competence in general shall apply.

Action may also be brought at the Maritime Court competent for the place where the vessel is present. If security for a claim has been lodged with an Authority for release from arrest or any other security measure, an action may also be brought at the Maritime Court competent for the place where the security is lodged. An action concerning a claim which has been covered by the security may be brought before the latter Maritime Court even if the security has lapsed.

If there is no Maritime Court at the place where the defendant could have been sued according to the first or second paragraph, suit shall be brought at the Maritime Court which is nearest to that place.

If there are several partners owning of a vessel, the vessel’s home port shall be deemed to be the partnership’s place of business.

The provisions in this section shall apply subject to the Act (1992:794) on account of Sweden’s Accession to the Lugano Convention. Nevertheless, the second paragraph shall apply if the vessel is under arrest.

Section 3

An action for damages on account of a contract of carriage of general cargo may be brought only before a Maritime Court competent for the place-

1. where the defendant has his principal office or, if there is no principal office, his habitual residence,

2. where the contract of carriage was made, provided the defendant there has a place of business, branch or agency through which the contract was made,

3. where the agreed port of loading or the agreed or actual port of discharge is situated, or

4. which is designated for this purpose in the contract of carriage.

Notwithstanding the provisions of the first paragraph, an action may also be brought before a court referred to in section 2 second paragraph.

If there is no Maritime Court at the place where the defendant could have been sued according to the first or second paragraph, the action shall be brought before the Maritime Court which is nearest to that place.

The provisions in section 2 fourth and fifth paragraphs shall have corresponding application.

Section 4

An action for damages on account of a contract of carriage of passengers or luggage may be brought only before-

1. the Maritime Court competent for the place where the defendant has his habitual residence or his principal office,

2. the Maritime Court competent for the contractual place of departure or destination.

3. a Court in the State where the plaintiff has his domicile or other permanent residence, provided the defendant has a place of business in that State and is subject to its jurisdiction,

4. a Court in the State where the contract of carriage was made, provided the defendant has a place of business in that State and is subject to its jurisdiction.

Notwithstanding the provisions of the first paragraph, an action may also be brought before a Court referred to in section 2 second paragraph.

After the occurrence of the dispute, the parties may agree that the action shall be brought before another Court or that the dispute shall be submitted to arbitrators.

If there is no Maritime Court at the place where the defendant could have been sued according to the first paragraph items 1 or 2 or the second or third paragraphs, the action shall be brought before the Maritime Court which is nearest to that place.

The provisions of section 2 fourth and fifth paragraphs shall have corresponding application.

Section 5

The provisions on forum in criminal cases in general shall have corresponding application to the jurisdictional competence of a Mari- time Court to try criminal cases referred to in section 1 first paragraph. If there is no Maritime Court at the place where the suspect should thus be prosecuted, criminal charge shall be brought before the Maritime Court which is nearest to that place.

Section 6

Appeal against an Average statement shall be lodged with the District Court competent
for the place at which the statement was rendered.

An average statement that has not been duly appealed shall be binding.

Section 7

In Average matters, the District Court shall have a quorum of three or, at the most, four legally trained judges together with three special members appointed according to section 8. However, the Court may sit with one legally trained judge in preparatory proceedings and in determining whether an appeal shall be refused as well as in proceedings according to section 8.

Section 8

For each judicial district whose Court is competent for Average matters, the Maritime Administration shall annually prepare a list of at least twelve persons who are experienced in commerce and shipping and are suitable for serving as special members in Average matters. Among those appearing on the list, the Court shall for each case appoint three for service as special members. If on account of a valid excuse or other prevention the prescribed number cannot be appointed from the list, the Court shall appoint another suitable person as a special member.

Special members shall be Swedish citizens. No minor or person in a state of bankruptcy or under guardianship according to chapter 11 section 7 of the Code of Parents may serve on the Court. Special members are entitled to remuneration from public funds according to regulations issued by the Government.

Section 9

Any person wishing to appeal against an Average statement shall submit his written petition to the District Court within four weeks from the day of the statement. Subject to the third paragraph of this section, the provisions of chapter 52 paragraphs 2, 3, 5, 6, 8, 9 and 10-12 of the Code of Judicial Procedure shall have corresponding application in matters of Average appeals.

If the Court admits the hearing of an Average appeal, any adverse party is entitled to obtain, free of charge, a copy of the petition. If he wants to refute the petition, he shall within four weeks of the deadline for appeal submit a written declaration to the District Court. It is incumbent on the Court to notify each known interested party of this right to be informed of the petition and to submit a declaration.

The Court may institute hearings or other proceedings for purposes other than referred to in chapter 52 section 10 of the Code of Judicial Procedure. The Court’s decision shall have the form of a final order.

Section 10

Appeal against the District Court’s final order or decision in an Average matter shall be lodged as a limited appeal.

Section 11

The provisions on extraordinary remedies in chapters 58 and 59 of the Code of Procedure shall have application to Average statements.

This also applies to the provisions in chapter 58 sections 10a and 13 and chapter 59 section 4a of the Code of Procedure concerning appeal against an Average statement.

Chapter 22. Special Provisions

Certain provisions relating to seamen etc.

Section 1

After a vessel has been cleared and is otherwise ready to leave, no person employed on board may be prevented from departing on account of a debt, nor may any property that he has taken on board for the purpose of his service be distrained or arrested.

Section 2

A Swedish vessel shall convey, in the number and against the remu- neration determined by the Govern- ment, seamen entitled to free repatriation under sections 29, 31 or 32 of the Seamen’s Act (1973:252) or whose return home shall otherwise be procured by a Swedish Foreign Mission, to the vessel’s destination or any intended port of call on the voyage. Free of charge there shall also be conveyed any urn containing the ashes of a deceased Swedish ship master or seaman and, as far as it can be done without inconvenience, his remaining personal belongings. The master of the vessel is responsible for the fulfilment of these obligations.

The Government may ordain that the provisions in the first paragraph concerning carriage of the ashes of a deceased ship master or seaman or their remaining personal belongings shall apply also to a deceased ship master or seaman from another country.

Special drawing rights

Section 3

Special drawing rights refer to the special drawing rights (SDR) used by the international Monetary Fund.

Conversion of SDR into Swedish currency shall be made according to the rate of the day when payment is made or, if security is lodged for the payment, when the security was lodged. The value of the crown shall be determined according to the calcula- tion method used on the same day by the international Monetary Fund for its business and transactions.

State liability for loss of certain rights etc.

Section 4

If as a consequence of chapter 2 section 10 or chapter 3 section 9 a title or mortgage referred to in the said sections shall gain validity against the rightful owner or against any bene- ficiary of a condition restricting the right of others to dispose of the property according to these sections, such person shall have a right to compensation by the State for his loss through the others title or mortgage.

If any person suffers loss as a result of a technical defect in the Register of Ships or in the Register of Ships under Construction, whether from the use of automatic data processing or of any device of the Register Authority or any other State Authority connected with the Register, he shall be entitled to compensation by the State.

If the victim has contributed to the loss by omitting without rea- sonable cause to take any measure to preserve his right or has otherwise contributed to the loss through his own negligence, the compensation shall be reduced or annulled as reasonable.

Section 5

If as a result of a decision in a matter of rectification a loss is caused to a party referred to in chapter 2 section 29, such party shall be entitled to compensation by the State. No compensation shall be paid if, on account of the nature of the error or other circumstances, the victim ought to have realized that an error had occurred.

Section 6

In matters concerning compen- sation under sections 4 or 5, the State shall be represented by an Authority designated by the Government.

Section 7

If a person who is party to a lawsuit concerning the existence of any right to a ship or a ship under construction wants to claim compen- sation according to section 4, he shall, if he loses the lawsuit, either bring his compensation action against the State requesting joint proceedings or give the Authority mentioned in section 6 written notice of the lawsuit.

If the preparatory hearing of the lawsuit has been concluded without any action for compensation having been brought or notice having been given according to the first paragraph, the Court shall enjoin the parties to take either of these actions within a stated period. If such time limit is not observed, the right to compensation shall have lapsed. A notification thereof shall be included in the injunction.

Section 8

If a person entitled under sections 4 or 5 to compensation from the State had the right to claim the amount as damages from another person, the State shall enter into the right against the latter.

Compensation according to sec- tions 4 or 5 awarded by a Court shall be paid after the judgement has become unappealable.

Notification and assistance to the Register Authority

Section 9

If an action is instituted concerning rescission or cancellation of a title to a registered ship or ship under construction, or to a share therein or to a conditional title to such property or to superior title to such property or otherwise in a question concerning inscription in the Register of Ships or Register of Ships under Construction, the Court shall imme- diately notify the Register Authority. Such notice shall contain, besides the identity of the parties, such statements concerning the property as are needed to identify it in the Register.

When a judgement or final order in the case is no longer open to appeal, the Court shall immediately send a copy of such judgement or order to the Register Authority.

Section 10

The Maritime Administration, the Coast Guard, the Customs Authority and the Police Authority shall assist the Register Authority by supervising the due observance of the provisions in Acts of Parliament and other legisla- tion concerning the registration and identification of ships and the inscription of title to ships and shares therein. For this purpose they shall have admittance to ships. They shall notify the Register Authority of any failure to comply with the provisions.

Transitional Provisions

1. This Act shall enter into force on the day that the Government decides(According to Ordinance on the Entry into Force of the Maritime Code (1994:1009) and Certain Conse- quential Legislation, this has occured on the 1st of October l994). Subject to the limitations mentioned under 2, the enactment shall repeal the Maritime Code Act (1891:35 page 1 et seq.) and the Act (1993:103) on Arrest of Ships in international Relations.

2. Transitonal provisions in the Acts mentioned under item 1 oramendments thereof shall remain in force in applicable parts.

3. If an Act or other Statutory Instrument contains any reference to provisions which have been replaced by provisions in the present Act, the new provisions shall apply instead.

4. Contracts of carriage concluded before the coming into force shall be governed by older provisions. If any bill of lading shall have been issued after the coming into force by virtue of such a contract of carriage, the new provisions shall, however, always be applied in respect of the relationship to any third party holder of the bill of lading.

5. In respect of contracts for the carriage of passengers concluded before the coming into force, older provisions shall apply if the event giving rise to liability occurred before the coming into force.