International Transport Intermediaries Club (ITIC) has highlighted the legal exposure facing ship managers who inherit vessels with known deficiencies, after successfully supporting a case in which claims exceeding $2.5 million were brought against a ship manager and later reduced to $250,000.
According to ITIC, the case stemmed from a June 2023 ship management handover involving a vessel with more than 150 documented defects.
A phased rectification programme was agreed with the owners, but operational delays, including a six-week drifting period, pushed back key repairs.
In March 2024, the vessel was detained following a Port State Control (PSC) inspection, prompting owners to allege negligence and pursue a claim significantly above the $1.5 million contractual liability cap under SHIPMAN terms.
READ: US explores nuclear-powered commercial shipping
The manager rejected the allegations, contesting both the negligence claim and responsibility for the crew’s alleged shortcomings.
Mark Brattman said: “We continue to see instances where substantial claims are advanced against ship managers without clear supporting evidence, often reflecting wider commercial disputes. This case underlines the importance of maintaining clear and comprehensive records, as well as taking a considered approach to defending claims where liability is not established.”
ITIC highlighted the need for clear documentation and robust contractual frameworks when assuming management of vessels carrying pre-existing defects.
For more information:
International Transport Intermediaries Club – https://www.itic-insure.com/
