Agribility - Safe Ports
A safe port or berth warranty may promise that the port(s)/berth(s) involved in a contract will be safe for the particular vessel to enter, leave, and use.
The warranty is commonly given by charterers, shippers/sellers and receivers/buyers. And in a single trade there could be one in the FOB purchase contract, CIF sales contract, bill of lading, and charterparty.
The warranty may be breached, if a particular characteristic of the port/berth, has caused damage to the vessel, which could not have been avoided by the Master. It could be as serious as a grounding or wreckage, or perhaps a few dents in the shell plating.
Either way, unless the charterer has a defence, it is likely that they will have to pay for the damage that is caused by a port/berth being unsafe.
The total liability could range into the tens of millions of dollars.
Safe port/berth warranties are therefore important.
By the end of this module, the learner should be able to:
- Explain the concept of “safe ports”, as a practical and legal concern, when planning a trade.
- Explain who bears the risk for port safety.
- Discuss what makes a port or berth unsafe.
- Understand the concept as a matter of English law.
- Apply the 'Test' of port safety.