A comparative analysis on the limitation of liability in towage contracts

Abstract

This thesis aims at discussing liability in the institute of maritime towage. Tug boats are renowned for their strong built and power, albeit small in size. Whilst the volumes and forms of vessels on our seas have steadily increased in recent years, it was inevitable that tugs today play a significant role in maritime transportation. The exposure to liability varies greatly and legal practices on how to determine liability is far from uniform. This is mostly because it has been agreed that towage warrants special treatment as a result of the physical hazards peculiar to towage. Apart from frequent navigation in heavily travelled waters such as confined harbours, tugs tow objects, unmanned barges and oil rigs on high seas. It is therefore crucial to consider not just the damage that may be done directly by the tug but also the liabilities which may arise from damages done by and to the tow. Since towage falls under a purely contractual realm, this thesis will closely analyse the main standard towing contracts used and the liability regime thereof. The UK Standard Towage Conditions are given apt consideration due to their inclination in shifting all liability on the tow. The apparent contradistinction in the philosophy of the UK Standard Conditions and the BIMCO’s Towcon and Towhire could not be disregarded and the mutual allocation of risk or knock-for-knock provisions are also discussed. The crux of this thesis however is attributed to whether there will ever be a possibility of having a harmonised legal liability or a limitation of liability regime which covers tug and tow situations. The viability of a uniform limitation of liability in relation to the tug and tow flotilla is endless in the wake of the numerous towage disasters at sea and this is why the final part of this dissertation provides a proposal for a way forward.