New Technologies, Artificial Intelligence and Shipping law in the 21st Century

Baris Soyer and Andrew Tettenborn

Document

Page 191

Index

AAWA project 145

agents, use of 45, 50–51, 52, 55, 100, 126, 130, 142

AIS (Automatic Identification System) 77, 78, 129, 176

algorithms

artificial intelligence 178
autonomous shipping 108
blockchain 13, 14, 15
collision avoidance systems 77
encryption 38, 39–40
insurance 180, 182
and liability 108, 121–122
potential for discrimination 187
product liability 119
seaworthiness 155
smart contracts 4

Amazon 14, 17, 100

anti-competitive effects 11

anti-selection (insurance) 181–182, 188

antitrust 11–12

Antwerp 48, 49, 50, 60, 90, 94, 103, 157

AP Møller-Mærsk 10

arbitration clauses 85

artificial intelligence
- self-adapting systems 160n38
- smart ports 90
- trolley problem 108n15, 190
asset registers 183
assignment 40
assistance to other ships 74, 135–137, 144
ASV Global 69, 77
asymmetric encryption 37–38, 40, 45
attornment 54
audit trails 18, 20
authentication 18, 20, 33, 36
- see also identity verification
authority, acting outside 44, 46
authority to vary a contract 61
automated container terminals 100–101
automated mooring 100
automatic detection systems 96, 97
automatic mooring systems 129
autonomous shipping
- carrier liability 148–161
- jurisdiction issues 140
- and maritime law 67–89
- product liability 118–119, 124–126, 127
- regulatory and contractual challenges 129–147
- and the role of the master 129–147
- and smart ports 91–94, 97, 98, 103
- third-party liabilities 105–115
autonomous vehicles 189
autonomy assisted bridge (AAB) 68
auto-pilot 98
- see also autonomous shipping
Aviva 179

ballast water treatment 7
bankers 17, 51, 52, 55, 57, 182–183
BankID 41, 42
Belgium 94, 150n9
Bermuda 190
big data 14, 178, 180, 182
bills of lading
- blockchain 5–6
- Bolero Bill of Lading (BBL) 11
- customary trade practices 26
- delivery of goods 33–34, 56–57, 118
- delivery terms 48, 49
- difference between US and UK law 32n75
- digitisation 5–6, 117, 122
- electronic signatures 40
- exchanging for delivery orders 56–57
- Glencore v MSC 50–52
- Himalaya clauses 8, 140
- international legal regimes 23
- and the master 142, 144
- negotiability 33, 50, 51
- paramount clauses 8
- Rotterdam Rules 29, 32
- shipper-carrier relationships 23
- shore-based controllers 142, 143, 147
BIMCO 19–21, 86, 141, 142n34, 146
Bingham, Lord 51, 166
biometrics 180
Bitcoin 6, 17, 40
black boxes 179
blockchain
- electronic signatures 40–41
- insurance 178, 182–183
- and liability 117,
  
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  122
- security risks 122
- in the shipping industry 3–16
- smart contracts 17–18
- smart ports 101
blue cards 137, 140, 146
Bolero project 10–11
border control 185
both to blame collisions 142, 143
Botport law 90–104
breach of contract 61
Brexit 188
bulk carriage of commodities 10
bunker contracts 21
bunker fuel 86, 130
burden of proof 24, 125, 155
bystander injury 125, 127

cabotage 73
Canada 140n26
car insurance 179
care of cargo 123–124, 154, 156–158, 161
cargo documentation 117, 122–123, 142
cargo insurance 180, 182
cargo loss 23–25, 28–29, 47–63, 123–124, 140
carriage of goods by sea
- domestic statues, judicial doctrines and customary trade practices 25–26
- international conventions 23–28
carrier liability 24, 50, 124, 148–161
Central Commission for Navigation of the Rhine (CCNR) 94
certification, electronic 43, 137, 146
channelling liability 112, 125–126
charterparties 6, 8, 18, 19–21, 85, 141–142
charterers 19–20, 75, 107, 112, 113, 120, 122, 139, 141–142, 147
chatbots 178, 182, 187, 188
China 71, 100
choice of forum clauses 15, 16
choice of law clauses 15, 16, 85
ciphers 37
civil procedure rules for disclosure 166–173
cloud computing 176
Code on Genetic Testing and Insurance 181–2
collision avoidance systems 68, 77–78, 98
collisions
- and autonomous ships 76–78, 83, 87, 111, 113, 114, 124–125, 142, 143
- both to blame collisions 142, 143
- product liability 117, 119
collusive behaviours 11
COLREGS (International Regulations for Averting Collisions at Sea 1972) 76–8, 87, 88, 89, 92, 106, 133–5, 152
Comité Maritime International (CMI) 31, 87, 91, 132, 146, 150
Commfides 41
company digital signatures 39, 44
company seals 39, 44
Company Security Officers (CSO) 79–80
condition of goods 149, 156
congestion 70
consignees 7, 28, 33, 49–50, 51, 54, 122
container transport
- autonomous ships 69
- digitisation of documentation 118
- dockers 101
- multimodal contracts 26–27
- port-to-port basis 26
- Rotterdam Rules 29
- stowage 156
- transport sharing devices/apps 10
continuously unmanned ships (CUS) 68, 74, 83
contract of carriage 26, 27, 28, 31, 34, 51, 62, 124, 140, 144, 154
control of goods in transit 34, 52, 53–56
corruption 95
counterfeiting 9
criminal law and the master 140
Crown immunity 69
cryptocurrencies 3, 17, 40
cryptology 38
custody of goods 52
customary trade practices 26
Customs 103
C-WORKER 7 (ASV Global) 69, 79, 84
cyber insurance 184, 187
cyber resilience 86
cybercrime 101, 147
cybersecurity 77, 86, 111, 115, 122, 147, 154, 180, 184, 186, 187

damage to cargo 123–124, 140
damages 8, 125, 184
data connectivity 111, 115, 129
data management 98, 102–103
data protection 12, 180, 181
Data Sampling 168
data security 12, 18, 44, 45, 60, 103
data sharing 103, 166
decentralized networks 18
decryption keys 37–38, 45
defences 43–45, 46, 49–50, 120, 155
delivery of goods
- bills of lading 33–34, 48, 49, 56–57, 118
- carrier’s obligation 33–34
- definition of ‘delivery’ 53–56
- delivery terms 49, 50, 52–53, 56–60, 61, 62
- misdelivery 29, 61–62, 122
- symbolic delivery 49, 53, 56
delivery orders 56–60, 61–62
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deployed over side equipment 67
digital currencies 17, 40
digital payments 95
digital signatures 36–46
digitisation
- Insurtech 178–190
- legal technology 165–177
- and product liability 116–120
- smart ports 102–103
disabling want of knowledge 151
disclosure in shipping litigation 165–177
disposal of cargo in transit 29–30, 157, 158
dispute resolution 15–17, 165–177, 185–186
distress signals 136
distributed ledger technology (DLT) 5–7, 8, 9, 12, 18, 41, 117, 122
distrust, mutual 17
DNV GL 70
dockers 101–102
document, definition of 167–168, 173
document of title function 29, 31, 32, 117
door-to-door transactions 25, 33
double-spending 40–41
drones 14, 72, 94, 100, 101, 105, 180
drugs trade 101
due despatch 141
due diligence 42, 113, 149, 153, 154–155, 160
dumping (waste) at sea 81
duty of care 84, 121, 124, 128
duty to provide assistance 74, 135–137, 144

ECDIS (Electronic Chart Display and Information System) 98, 176
e-commerce 14, 16, 29
e-contracts 16
e-disclosure databases 167–168
e-documentation 117, 122, 165–177
e-freight forwarding 100
electronic certificates 43, 137, 146
Electronic Data Interchange (EDI) 29–30, 103, 117, 176
electronic disclosure 167–173
electronic messages 11
electronic monitoring systems 124
electronic release systems (ERS) 48, 49–50, 51
electronic signatures 7, 36–46
electronically stored information (ESI) 26, 27, 171
emails 48, 57, 60, 166, 169, 171, 172, 177
e-malfunctions 122
emergency situations 68, 92, 98, 110, 129, 153
e-navigation 98
encryption 11, 37–38, 41, 45, 122
enforceability of international contracts 15–17
entitlement to the cargo 40
environmental issues 86, 130
environmental standards 7
ESSDOCS 117
estoppel 49, 60–61
ethical dilemmas 108n15
evidential value of automatic detection systems 96

facilitation payments 95
facsimiles of signatures 36
fault liability 108, 109, 111, 119, 122, 160
ferries, autonomous 106
fines 137
Finferries 105–106
fireboats 69, 93
flag state jurisdiction 73–74, 79, 131–132
forgeries 44, 46
fraud 9, 185
freedom of contract 100
freight forwarders 100
functional equivalence 31
Fundamental Rights Agency (FRA) 187

gamification 178, 180, 181
GENCON 19, 143–144
genetic data 180, 181–182
geographical information systems (GIS) 182
Germany 71, 190
GIANO 69
giving way 134
global marketplace 17
global standardization 19
good faith defences 44
GPS (Global Positioning System) 86, 176
Greenhouse gas emissions 9, 70

hacking 60, 111, 122, 129, 145, 147, 154, 186
Hamburg 101
Harbour masters 94, 96-97
hardware failure 121, 127
hauliers 48
hazardous/toxic materials 82, 109, 125, 158
health insurance 180–181, 182
Himalaya clauses 8, 140
hold harmless provisions 85
holders of electronic records 33
holograms 105
Hull Fouling Clause 141
human error 86, 115, 116, 129, 150, 160, 189
hybrid autonomous-manned vessels 68, 74, 106, 149
hybrid blockchain 12, 15
hyperloops 101

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IBM 183
ice risk areas 143
IDEA 20
identity verification 36, 39, 41, 43, 45
ILO (International Labour Organization) 102, 138
IMDG Code 142
IMO (International Maritime Organization) 78, 87–88, 89, 91, 97, 98, 106, 113, 130, 132, 146, 147
imputation 50, 51
IMSBC Code 142
indemnity clauses 85
India 73
information asymmetries 9
infrastructure
- digital signatures 41–42
- electronic signatures 42–43
- smart ports 94–95
inland destinations, carriage to 27
inland waterways 94, 129
insolvency 84
inspection regimes 96–97, 112, 113
insurance
- and artificial intelligence 178–190
- and autonomous ships 75, 83, 85–86, 137, 146
- claims handling 184–185
- document disclosure 167
- fraud 185
- Insurtech 178–190
- product liability 118, 123
- third-party liabilities 111, 112, 115
- underwriting 178–184
- Usage Based Insurance (UBI) 179–181
Inter-Club Agreement 120, 142
Interfishmarket 10
intermediaries
- avoiding use of with blockchain 10
- avoiding use of with smart contracts 13
- in global marketplace 17
- lawyers 13–14
internal waters 73
International Association of Marine Aids to Navigation and Lighthouse Authorities (IALA) 98, 99
international contracts, enforceability 15–17
international conventions
- autonomous shipping 73–84, 130
- carriage of goods by sea 23–25
- definition of ‘ship’ 71
- other modes of carriage 26–28
- ports 91
International Group of P&I Clubs 85–86
International Monetary Fund (IMF) 75
International Ship and Port Facility Security (ISPS) Code 79–80
International Transport Forum, OECD 3
international waters 88
International Working Group for Maritime Law and Unmanned Craft (IWG) 87–88
Internet of Things (IoT) 9, 181, 182, 184
interoperability issues 18, 41–42
ISM (International Safety Management) Code 79
ISPS Code 79–80
IT managers and smart contracts 13
- see also software producers and liability; voyage programmers

Japan 183
jettison 143–144, 157, 158
job losses 74, 101
jurisdiction issues 15, 16, 73, 85, 140

keys (physical) 54–55
knock-for-knock provisions 85
knowledge imputed 50, 51
Kongsberg 69, 129
KOTUG 69

labour laws 102, 138–139
lack of authority defence 44, 46
large vendors 14
legal technology, disclosure in shipping litigation 165–177
Lemonade Inc 184, 187
less container load (LCL) transport 10
liability
- after discharge, before delivery 50
- and artificial intelligence 188–189
- and autonomous shipping 74–76, 88
- blockchain 8
- carrier liability 24, 50, 124, 148–161
- channelling liability 112, 125–126
- electronic signatures 42–43, 45
- fault-based liability 108, 109, 111, 119, 122, 160
- limited liability 74–75, 113–114, 119, 120, 124, 140
- in the maritime transport industry generally 8
- Nairobi Convention (Nairobi wreck removal convention 2007) 82–83
- online intermediaries 100
- pollution liability 125
- product liability 116–128
- Rotterdam Rules 28–29, 31
- several liability 119
- smart ports 95, 96
- software producers and liability 155
- strict liability 84, 88, 107–110, 121, 125, 126–128, 189
- terminal operators 101
lie detector technology 185
limitation of liability 74–75, 113–114, 119, 120, 124, 140
liner transportation 10
linesmen 100
liquidation 54
Lloyd’s Emerging Risks and Research 85
Lloyd’s Open Form (LOF) 85
logistics sector 3
logs 141
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look out, requirements for 76, 134
- see also watch keeping requirements
loss of cargo 23–25, 28–29, 47–63, 123–124, 140

MAchine eXecutable Collision regulations for Marine Autonomous Systems research project (MAXCMAS) 77n21
machine learning 182, 187, 188
Maersk Line 147
maintenance 68, 70, 87, 113, 130, 141, 146–147, 158
malware 147, 184, 185
manning requirements 131–132
manoeuvring rules 76, 89, 93, 134–135
manufacturer, channelling liability to 112, 113, 117
marine diesel oil (MDO) 130
marine fuel purchasing 21
marine gas oil (MGO) 130
marine hull insurance 183
Marine Industries Alliance 88
Maritime and Coastguard Agency (MCA) 88
Maritime Autonomous Surface Ships (MASS) 67–89, 106, 130
Maritime Law Association 131, 132
maritime performing parties 101
Maritime Safety Committee (MSC) 87, 106, 130, 147
Maritime Single Windows 103
maritime tracking 103
maritime zones 73
Marsh 183
MASRWG Voluntary Code of Practice 84, 85, 88
master
- care of cargo 157
- MASRWG Voluntary Code of Practice 89
- ship’s delivery orders 58
- smart contracts 21
- UNCLOS 74
- and unmanned vessels 74, 88, 129–147
mates’ receipts 142
metadata 166, 169, 171
MIB (Motor Insurers’ Bureau) 190
middlemen see intermediaries
misappropriation of cargo 47–49
misdelivery 29, 61–62, 122
mitigation 45, 181
monitoring systems 69, 86, 118, 124, 129, 133, 146, 158, 176
mooring men 100
mortgage 84
multimodal transactions 8, 25, 26–27
Mummery LJ 176n38
MUNIN (Maritime Unmanned Navigation through Intelligence Networks) 105, 109, 149

nationality of ships 73
native format documents 169–170, 175
nautical fault exception 158–161
navigation
- and autonomous ships 76, 83, 86, 107, 110–111, 133
- in the definition of a ‘ship’ 70
- digitisation 118–119
- e-navigation 98
- nautical fault exception 160
- navigation rights 73
- navigation systems and document disclosure 176
- product liability 124–126
- role of the master 141
- smart ports 92, 98
- software producers and liability 141
negligence
- and autonomous ships 76, 84, 107, 113, 134
- electronic signatures 45
- master 143, 144
- nautical fault exception 159
- product liability 116–117, 119, 121, 124–125
- seaworthiness 150
- and software 122–123
negotiability 29, 33, 50
neutral platforms 10
NKK 120
non-discrimination principle 91
non-permissioned DLT 6–7
non-vessel-operating carriers (NVOC) 27n28
Norway 39, 42, 44, 45, 71, 106
Norwegian Forum for Autonomous Ships (NFAS) 68n1
Norwegian Maritime Law Commission 42
Norwich Union 179
notify parties 48
NxtPort 103
NYPE (New York Produce Exchange Form) 141–143

off-hire 142
offshore sector 112
oil and gas contracts 85
oil pollution 82, 125, 137, 140
oil record books 137, 140
Optical Character Recognition (OCR) technology 101, 170, 175
oracles 7
original documents 39
owners see shipowners

P&I 49, 85, 118, 119, 123, 125, 128
paper documentation
- audit trails on 19–20
- benefits of pen-and-ink signatures 41–42
- costs of 23, 34
- e-documents with same
  
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  legal force as 11
- holders of 33
- security of 60
- substitutability with electronic 32
paperless offices 165
paramount clauses 8
passphrases, security of 44, 45
patent applications 4n11, 6n16
pay as you drive (PAYD) insurance 179
pay how you drive (PHYD) insurance 179
PDF Advanced Electronic Signatures (PAdES) 39
peer-to-peer systems 9, 17
periodically unmanned bridge (PUB) 68, 74
periodically unmanned ships (PUS) 68, 74, 83
permissioned ledgers 7–8, 12, 15, 18
personal data 12, 180, 181, 182, 186
personal injury claims 75, 125, 127, 139, 184
pilotage assistance 99, 145–146
pilots 93, 99, 139, 143, 145–146
PIN codes 47–63, 101, 118, 122, 123
piracy 86, 142, 145, 157–158
pledges 55
pollution detection 94
pollution liability 125
pollution prevention 79, 80, 82, 108
‘pooling’ cargo 10
port agents 130, 141, 142, 147
port of refuge 143–144
port security officers 97
Port State Control 93, 96–97
Portable Pilot Units (PPUs) 99
ports
- autonomous ships coming into 68, 73, 91, 99, 130, 145
- crew’s cargo duties 158
- port management 94–96
- port states 91, 131
- security 96, 97
- smart ports 90–104
port-to-port basis 33
port-to-port transactions 25, 26, 27
possession of goods 53–56
powers of attorney 45
powers of control 52
predictive coding 173
privacy issues 179–180, 185
product liability 116–128
property damage insurance 85
public blockchains 18
public keys 37, 38, 45–46
Purple Water 69

qualified signatures 40

radar 98, 103
radio communications 67, 74, 92, 98, 103, 129
real-time characteristics of smart contracts 14
real-time data and autonomous ships 77
real-time demand and supply matching 9
real-time tracking and insurance 180
reasonable care 113, 156
reasonableness test 73
reasonably suited standard 154
receipt for goods 31
recklessness 88, 114, 139
recourse action 113
reefers 118
registered owner, channelling liability to 112
reinsurance 183
release notes 48, 49, 50, 51, 52–53, 56–57, 62
relevance tests 166
Remote Operated Vehicles (ROVs) 67
remote operation of ships 67, 89, 99, 105, 106, 110, 130, 145, 149, 152–153, 159
rendering assistance to other ships 74, 135–137, 144
Report of the Working Group on International Legislation on Shipping 149n8
reverse engineering 15
revocations 52
right to be forgotten 12
right to demand delivery 33–34
right of disposal 29
risk profiles 86
robotic process automation (RPA) 182
robotics 101, 178, 182
Rolls Royce 69, 105, 118n18, 145
Rosetti Marino 69
Rotterdam 69, 90, 94, 100–101
routing recommendations 141

safe manning documents 138
sale and charter of vessel 7
sale of goods 44, 121
sale of services 121, 127
salvage 83, 85, 144
sandboxes, regulatory 190
SARUMS 149
satellite coverage 77
scrapping and recycling 7
seafaring 92, 138–139, 152
seals 39
seamanship 76–77, 78, 134
search, document 166–173, 174–175
search and rescue (SAR) 87
sea waybills 31, 32, 142, 144
seaworthiness 119, 141, 149–155
security, port 96, 97
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security alert systems 79
security risks 79–80, 110
self-mooring systems 100
sensitive data 12
sensors 77, 96, 97, 99, 112, 126, 127, 129, 182
servants of the carrier 144, 159, 160
several liability 119
ship to shore interfaces 86
shipowners
- channelling liability to 112, 114
- due diligence 153
- in-house software development 160
- insurance 137
- product liability 117
- and the role of the master 139, 143, 147
Shipowners’ Club 86
ships, legal definition of 70–72, 73–84, 131n5
ship’s delivery orders 50, 57–60, 144
ship’s papers orders 167
shipwrecks 83
shopping agents 100
shore-based controllers
- and autonomous ships 78, 92, 96, 97, 98
- bills of lading 142, 143, 147
- functional equivalent of master 140, 143, 144, 146
- as master 133
- multiple vessels at once 153
- nautical fault exception 159
- product liability 120
- and proper manning requirements 152
- and the role of the master 129, 130, 132, 138–140, 141–145
- salvage 144
- seaworthiness 143
- and shipowners 153
- training and certification 152–153
signatures 36–46
Singapore 100
slow steaming 141
smart cargo transportation 118, 158
smart containers 100–101, 158
smart contracts 4, 10, 12–15, 16, 18, 21, 178
smart ports 90–104
smart shipping 94
- see autonomous shipping
smart stowage 101
smart surveillance cameras 96
smart thermostats 182
SmartCon 20
smuggling 143
software maintenance standards 146
software malfunctions 109–110, 116, 119, 122, 126, 154–155, 185, 189
software producers and liability 108–109, 119, 121–122, 126, 127, 141, 160
sound systems 156, 158, 161
special trade passenger ship instruments 87
spoofing 86
standard disclosure 167
standard terms and conditions 47, 50, 100
standardized contracts 19–20, 85
states as trusted managers of blockchains 12
stevedores 142, 161
storage facilities 53
stowage 101, 118, 122, 156
streaming of data 77
strict liability 84, 88, 107–110, 121, 125, 126–128, 189
strike action 93, 143
sub-bailees 54, 55
sub-contracting 27
submarines 67, 105
submersibles 70
supercargo 143
supply chains 13, 14, 18, 181
surveillance 96, 105, 129

tackle-to-tackle basis 25, 33
tallymen 101
telematics 178, 179, 180–181, 182
temperature monitoring 118, 157
terminal operators 100–101
terms of carriage 49–50
terrorism 79, 81, 97
theft of cargo 48–49, 123
third parties, transfer of rights to 23, 34
third party authority 5
third party damage 85
third party losses 43
third-party liabilities 105–115, 120, 122, 125
third-party repairmen 154
tort 44–45, 76, 84, 107, 109–110, 113, 117, 139
towage 93
transfer of goods 53–56
transport sharing devices/apps 9
trigger events 18
trolley problem 108n15, 190
true records, establishing 5
trust
- electronic versus pen-and-ink signatures 36
- importance of 17
- in the Internet 37
- trusted actors 7, 12, 16
- trusted clients 7
- trusted managers 15
tube transportation 101
tugs, remote-controlled 69, 93–94, 118

UK Ship Register 69, 79, 83–84
ultra slow steaming 141
uncertainty 17, 20
UNCITRAL (UN Commission on International Trade Law) 29–34, 41
underwater vehicles 67, 70, 105
underwriting 178–184, 187
unmanned ships 14, 67–89
- see also autonomous shipping
unpermissioned ledgers 6
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unseaworthiness 119–120, 124, 143, 150–151, 153, 154–155
Usage Based Insurance (UBI) 179–181
user-points 41–42

variation of contract 61
verification 37
Vessel Traffic Service (VTS) 96, 97–99, 103
vessels not under command 134–135
virtual bridges 133
virtual watchkeeping 138
voice recognition 105
Voyage Data Recorders (VDRs) 103, 176
voyage programmers 130, 133, 142, 149–150, 160–161

waivers 62
walled gardens 20
war risk areas 142, 143
warehouses 101
warranties 141n31, 143
warships 82
waste management 81
watch keeping requirements 78, 137–138, 150
weight limits 80
wrecks 83

Yara Birkeland 69, 72–73, 92, 106, 129, 132

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New Technologies, Artificial Intelligence and Shipping law in the 21st Century

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Index

Index

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