| The International Safety Management Code (Hereinafter called ISM Code) as a mandatory system has gone into effect since July 1, 2002. ISM Code emphasizes on controlling the factitious factor and regulates the company to ship safety management. ISM Code is a systematic safe operational whose purpose is to provide a strict international standard for the safe management and operation of ships for the pollution prevention. It's the most serious of the treaties dealing with ship safety and environment protection up to now by the IMO. The implementation of ISM Code will undoubtedly have an effect on some areas of the current maritime law, especially for seaworthy norms of ships. For instance, the new concept of seaworthy management introduced will result in important influence upon the confirmation of seaworthy responsibility of carriers.This paper consists of three parts.Part I is the preface, which makes a brief introduction to the motive and purpose, scope and restriction, frame, as well as research methods of this paper.Part II is the thesis, which consists of five chapters.Chapter I makes a brief introduction to the background, general requirement, legal application, the legal status and the implementation of the Code.Chapter II presents the effect of ISM Code on the seaworthiness of ships and exemption, as well as being manned with qualified seafarers. And the concept of seaworthiness has been enlarged, by adding ship safety management to ship seaworthiness and crew compete. Seaworthiness is not only applied to the ship, but also to the safety management of ship owners, operators and managers. The Code, as well, provides that not merely the'company' but everyone shall be responsible for ISM compliance, liable for non-conformities,. The exercise of due diligence of carriers needs to be reviewed in light of the ISM. There is strong possibility that the Court will find that a shipowner who has failed to operate his ship in accordance with the ISM Code, has failed to make his ship seaworthy, or has failed to exercise due diligence to make his ship seaworthy. On the other hand, claimers are easy to find theevidences that prove the carrier has failed to provide a seaworthy vessel by making the use of the transparent system of this Code. Carrier shall bear the burden of proof if he assists that he has implemented the seaworthy obligations. It means that the carrier has great difficulties in counting on the exemption of neglect in the navigation or in the management of the ship to avoid his responsibility for the negligence because of his personal act. It's much easier for claimers to prove carrier's fault than before after the implementation of ISM Code. Meanwhile, the chance will decrease that carrier is entitled to exempt his liability on fire.Chapter III makes an introduction to the effect on the marine insurance by the implementation of ISM Code. The ISM Code affects the assured's duty of disclosure, as well as the implied warranty of seaworthiness in hull insurance, the scope of material facts, cargo insurance, and the effect on insurers' proof. In liability insurance, P&l Clubs made Code compliance a condition of cover. Given that the code is preventative, it must surely be in the interests of insurers. Now for a shipowner to claim remedies, it must not itself have been at fault for the seaworthiness of its ship, or for its own safety management.Chapter IV is to make an introduction to the effect on the ship mortgage financing by the implementation of ISM Code. The bank will face such new risks as the vessel loses insurance compensation, civil liability of financing shipowner increases etc.In order to protect their benefits and avoid these risks fully, banks will operate by contract arrangements and in light of the hull insurance clause. Shipowner should represent and warranty the real shipowner, classification of ship, the hull insurance, Protection and Indemnity Insurance, etc.Chapter V falls into three sections.Section I makes a brief introduction to the background, the argu... |
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