Transpo Chapter 8 - 11

2D20102011DigestPool*TranspoReviewer
CHAPTER 8
TABLE OF CONTENTS

Chapter 8

Persons Who Take Part in Maritime Commerce

I. Shipowners & Ship Agents
A. Part Owners
B. Ship Agent
a. Powers
b. Limitations on Power

c. Duty to Account
d. Reimbursement & Liabilities
e. Discharge of Captain & Crew

Cases:
Yu Con v. Ipil
Wing Kee Compradoring Co. v. Bark

Mononguela
Walter S. Smith & Co. v. Cadwaller Gibson
Yu Biao Sontua & Co. v. Osorio

II. Captains & Masters
A. Concept
B. Qualifications

C. Powers & Functions
D. Discretion of Captain or Master
E. Pilotage
a. Master & Pilot
b. Shipowner & Pilot
c. Pilot & Association
F. Code of Commerce Provisions on Captains

Cases:
Inter-Orient Maritime Ent. V. NLRC
Sweet Lines v. CA

III. Officers & Crew
A. Regulation of Merchant Marine Profession

B. Minimum Safe Manning
C. Security of Tenure
D. Code of Commerce Provisions
a. Sailing Mate
b. Second Mate & Marine Engineer
c. Crew

IV. Supercargoes

1

pp.490512(han) If the part owners should not be more than

two, the disagreement of views, if any, shall be
CHAPTER 8 decided by the vote of the member having the
PERSONS WHO TAKE PART IN MARITIME largest interest. If the interests are equal, it should
COMMERCE be decided by lot.
The persons having the smallest share in the
ownership shall have one vote; and proportionately
I. SHIPOWNERS AND SHIP AGENTS the other part owners as many votes as they have
parts equal to the smallest one.
Shipowner is the person who is primarily A vessel may not be detained, attached or
liable for damages sustained in the operation of vessel. levied upon in execution in its entirety, for the
The Code of Commerce at times uses the term naviero private debts of a part owner, but the proceedings
to indicate the person liable. It includes the shipowner, shall be limited to the interest which the debtor may
ship agent and even the charterer who is considered as have in the vessel, without interfering with
owner pro hac vice. navigation.
Ship agent the person entrusted with
provisioning of the vessel, or who represents her in the Art. 590. The co-owners of the vessel shall be civilly
port in which she happens to be. The ship agent is jointly liable in the proportion of their interests in the
and severally liable with the owner both for breach of common fund, for the results of the acts of the
contract and extra-contractual obligation such as tort, captain, referred to article 587.
without prejudice to his right against the owner, the Each co-owner may exempt himself from this
vessel and its equipment and freight. liability by the abandonment, before a notary, of the
part of the vessel belonging to him.
Art. 586. The shipowner and the ship agent shall be
civilly liable for the acts of the captain and for the Art. 591. All the part owners shall be liable, in
obligations contracted by the latter to repair, equip, proportion to their respective ownership, for the
and provision the vessel; provided the creditor expenses for repairing the vessel, and for other
proves that the amount claimed was invested for the expenses which are incurred by virtue of a
benefit of the same. resolution of the majority.
By ship agent is understood the person They shall likewise be liable in the same
entrusted with provisioning or representing the proportion for the expenses for the maintenance,
vessel in the port in which it may be found. equipment, and provisioning of the vessel,
necessary for navigation.
Art. 587. The ship agent shall also be civilly liable for
indemnities in favor of third persons which may Art. 592. The resolution of the majority with regard to
arise from the conduct of the captain in the care of the repair, equipment, and provisioning of the vessel
the goods which he loaded on the vessel; but he in the port of the departure shall bind the minority,
may exempt himself therefrom by abandoning the unless the minority members renounce their
vessel with all her equipments and the freight it may interests, which must acquired by the other co-
have earned during voyage. owners after the judicial appraisement of the value
of the portion or portion assigned.
Art. 588. Neither the shipowner nor the ship agent The resolution of the majority relating to the
shall be liable for the obligations contracted by the dissolution of the partnership and sale of the vessel
captain, if the latter exceeds the powers and shall also be binding on the minority.
privileges pertaining to him by reason of his position The sale of the vessel must be made at the
or conferred upon him by the former. public auction, subject to the provisions of the law
Nevertheless, if the amounts claimed were of civil procedure, unless the co-owners
invested for the benefit of the vessel, the unanimously agree otherwise, saying always the
responsibility therefor shall devolve upon its owner right of repurchase and redemption provided for in
or agent. article 575.
A. PART OWNERS Art. 593. The owners of a vessel shall have the
preference in her charter over other persons, under
Art. 589. If two or more persons should be part the same conditions and price. If two or more of
owners of a merchant vessel, a partnership shall be them should claim this right, the one having the
presumed as established by the co-owners. greater interest shall be preferred; and should they
This partnership shall by governed by the have equal interests, the matter shall be decided by
revolutions of the majority of the members. lot.
2

having the books and correspondence relating to

Art. 594. The co-owners shall elect the manager who the vessel and to its voyages at their disposal.
is to represent them in the capacity of ship agent.
The appointment of director or ship agent d. Reimbursement and Liabilities
shall be revocable at the will of the members.
Art. 600. After the account of the managing has been
B. SHIP AGENT approved by a relative majority, the co-owners shall
pay the expenses in proportion with their interest,
Art. 595. the ship agent, whether he is at the same without prejudice to the civil or criminal actions.
time the owner of the vessel, or a manager for an Which the minority may deem fit to institute
owner of the vessel, or a manager for an owner or afterwards.
for an association of co-owners, must have the In order to enforce the payment, the
capacity to trade and must be recorded in the managing agent shall be entitled to an executor
merchants registry of the province. action (accion ejecutiva), which shall be instituted
The ship agent shall represent the ownership by the virtue of a resolution of the majority, and
the vessel, and may, in his own name and in such without further proceedings than the
capacity, take judicial and extra judicial steps in acknowledgement of the signatures of the persons
matters relating to commerce. who voted for the resolution.
a. Powers Art. 601. Should there be any profits, co-owners may

demand of the managing agent the amount
Art. 596. The ship agent may discharge the corresponding to their interests by means of an
duties of the captain of the vessel subject in every executor action (accion ejecutiva), without any
case to the provision in article 609. other requisite than the acknowledgement of the
If two or more co-owners apply for the signatures on the instrument approving the account.
position of the captain, the disagreement shall be Art. 602. The ship agent shall indemnify the captain
decided by a vote of the members; and if the vote for the all the expenses he may incurred with funds
should result in a tie, it shall be decided in favour of of his own or of others, for the benefit of the vessel.
the co-owner having the larger interest in the vessel.
If the interests of the applicants should be e. Discharge of Captain and Crew
equal and there should be a tie, the matter shall be
decided by lot. The following provisions are subject to the Labor
Code for those employed for domestic transportation or
Art. 597. the ship agent shall designate and come to commerce as well as the rules promulgated by the
terms with captain, and shall contract in the name of POEA for seamen.
the owners, who shall be bound in all that refer to
repairs, details of the equipment, armament, Art. 603. before the vessel sets out to sea the ship
provisions of food and fuel , and freight of the agent may at his discretion discharge the captain
vessel, and in general, in all that relate to the and members of the crew whose contracts are not
requirements of navigation. for a definite period or voyage, paying them the
salaries earned according to their contracts, and
b. Limitation on Power without any indemnity whatsoever, unless there is
an express and specific agreement in respect
Art. 598. the ship agent may not order a new voyage, thereto.
or make contracts for a new charter, or insure the
vessel, without the authorization of it owners or Art. 604. If the captain or any other member of the
resolution of the majority of the co-owners, unless crew should be discharged during the voyage, they
these powers were granted him in the certificate of shall receive their salary until they return to the port
his appointment. where contract was made, unless there should be
If he insures the vessel without the just cause for the discharge, all in accordance with
authorization therefore, he shall be subsidiarily article 636 and following of this code.
liable for the solvency of the insurer. Art. 605. if the contracts of the captain and the
c. Duty to Account members of the crew with the ship agent should be
for a definite period or voyage, they may not be
Art. 599. The ship agent managing for an association discharged until the fulfilment of the of their
shall render to his associates an accounts results of contracts except by the reason of insubordination in
the voyage of the vessel, without prejudice to always serious matters, robbery, theft, habitual
drunkenness, or damage caused to the vessel or to
3

its cargo through malice or manifest or proven articles, chartered the banca, named Maria, owned by
negligence. defendant Lauron and of which Ipil was master and
Solamo as the supercargo, for the transportation of
Art. 606. If the captain should be the co-owner of the certain merchandise from the port of Cebu to Catmon.
vessel, he may not be discharged unless the ship The following day, plaintiff delivered the sum of P450 to
agent returns to him the amount of his interest defendants Ipil and Solamo for the purpose of its
therein, which, in the absence of the agreement delivery to the plaintiffs shop in Catmon. While the
between the parties, shall be appraised by experts money was still in said truck aboard the vessel, on the
appointed in the manner established in the law of time scheduled for the departure of the banca from the
civil procedure. port of Cebu, Ipil and Solamo transferred the P450 from
the plaintiffs trunk, where it was, to theirs, which was in
Art. 607. If the captain who is the co-owner should a stateroom of the banca, from which the money
have obtained the command of the vessel by virtue disappeared that same night.
of a special agreement contained in the article of
association, he may not be deprived of his office Issue:
except for the causes mentioned in article 605. Whether or not the defendants, Lauron as owner
and Ipil and Solamo as master and supercargo,
Art. 608. In case of the voluntary sale of the vessel, respectively, are liable for the loss of the P450, the
all contracts between the ship agent and the captain property of defendant.
shall terminate, reserving to the latter his right to the
indemnity which may pertain to him, according to Held:
the agreements made with the ship agent. It is beyond all doubt that the loss or
They vessel sold shall remain subject to the disappearance of the P450 which, was in the possession
security of the payment of said indemnity if, after the of the defendants, the master and the supercargo of the
action against the vendor has been instituted, the banca Maria, occurred through the manifest fault and
latter is found to be insolvent. negligence of said defendants for failing to take the
necessary precautions in order that the place where the
PROBLEM: money was kept should be properly guarded.
X Mining Co. shipped a cargo of machineries on Article 587 of the Code of Commerce in force
board the S/S Good Ship which was chartered by the provides: The agent shall be civilly liable for the
Able Shipping Co., a foreign corporation represented in indemnities in favor of third persons which arise from the
the Philippines by its agent, Best Lines, Inc. When the conduct of the captain in the care of the goods which the
goods were delivered to the consignee, they were found vessel carried; but he may exempt himself therefrom by
to have sustained losses. abandoning the vessel with all her equipments and the
Upon arrival of the S/S Good Ship in Manila, freight he may have earned during the trip.
Best Linesmen took charge of unloading of the cargo The shipowner is in the same case with respect
and issuing of cargo receipts in its name for the purpose to the members of the crew, for, though he does not
of evidencing the condition and the discharge of the appoint directly, yet, expressly or tacitly, he contributes
cargo from the vessel to the arrastre operator; and filing to their appointment. The Code of Commerce clearly
and processing of claims against the vessel S/S Good makes the shipowner liable civilly for the loss suffered by
Ship for damages/losses sustained by the cargo. When those who contracted with the captain, in consequence
sued with Able Shipping Co., Best Lines contended that of the misdemeanors and crimes committed by the latter
it was a disclosed agent and could not be held liable or by the members of the crew.
despite the insolvency of Able Shipping Co. Therefore, the defendant Lauron, as the
Ans: Arts586 and 587of the Code of Commerce proprietor and owner of the craft of which Ipil was the
makes the ship agent liable for the civil liabilities in favor master and in which, through the fault and negligence of
of third persons which arise from the conduct of the the latter and of the supercago Solamo, there occurred
captain in the care of the goods. The liability of the ship the loss, theft, or robbery of the P450 that belonged to
agent is solidary together with the ship owner; hence, the plaintiff and were delivered to said master and
the liability remains even if the principal-shipowner is supercargo, should, for said loss or theft, be held civilly
insolvent. liable to the plaintiff, who executed with said defendant
Lauron the contract for the transportation of the
CASES: merchandise and money aforementioned between the
port of Cebu and the town of Catmon, by means of the
YU CON vs. GLICERIO IPIL said craft.
Facts:
On or about October 17, 1911, the plaintiff, a
merchant engaged in the sale of cloth and domestic
4

Wing Kee Compradoring vs. Bark Monongahela Zamboanga, in the course of its maneuvers. The wharf
was partially demolished and the timber piled on it was
Facts: thrown into the water.
From March 16, 1921 to August 16, 1921, The trial court held that Cadwallader was not
various supplies were furnished the Bark Monongahela liable since the partial demolition was due to the
by Wing Kee Compradoring Company. Most of the bills excessive weight of timber piled and bad conditions of
for these goods are made out against the "Admiral Line, piles supporting the wharf (which is allegedly old
S.S. Monongahela." The trial judge found as a fact that already). The steamship slightly struck the wharf but not
on or before August 4, 1921, the Admiral Line had with such force since it was difficult for her to strike it
ceased to act as agent for the Monongahela. with such force. However, it did not make any definite
Nevertheless, supplies were furnished the Monongahela findings on the negligence of the captain. Smith infers
after these dates by the plaintiff. that there was negligence on the part of the captain of
The plaintiff in this case seeks to recover from ship and that the impact of the ship with the wharf was
the defendants, principally the Admiral Line, as agent for due to the excessive force with which the captain
the Bark Monongahela, the sum of P17,675.64, with ordered the winches to work.
interest and costs, on account of goods, wares, and
merchandise sold and delivered by the plaintiff to the Issues:
defendants for the use of the crew of the Bark 1. Whether or not the Code of Commerce or the
Monongahela. The owners were not cited to appear. No Civil Code should apply.
action against the bark was taken. 2. Whether or not defense of exercise of due
care and diligence in the selection and supervision of
Issue: employees valid.
Whether or not an agent may be held liable.
Held:
Held: 1. The instant case, dealing, as it does, with an
Art. 586 of the Code of Commerce provides that: obligation arising from culpa aquiliana or negligence,
The owner of a vessel and the agent shall be civilly liable must be decided in accordance with articles 1902 and
for the acts of the captain and for the obligations 1903 of the Civil Code.
contracted by the latter to repair, equip, and provision Article 1902 of the Civil Code prescribes: Any
the vessel, provided the creditor proves that the amount person who by an act or omission causes damage to
claimed was invested for the benefit of the same. By another by his fault or negligence shall be liable for the
agent is understood the person intrusted with the damage so done.
provisioning of a vessel, or who represents her in the And article 1903 of the said Code states: The
port in which she happens to be. obligation imposed by the next preceding article is
It is to be noted that the plaintiff has not followed enforceable, not only for personal acts and omissions,
out its allegation that it has a claim against the Bark but also for those of persons for whom another is
Monongahela. The plaintiff has made no effort to bring responsible. Xxx the liability imposed by this article shall
the owner of the bark into the case and has pushed with cease in case the persons subject thereto prove that
no enthusiasm its case against the captain of the boat. they exercised all the diligence of a good father of a
What apparently the plaintiff wants is for the Admiral family to prevent the damaged.
Line, as the agent for the Bark Monongahela, to pay the The action for damages caused by an act or
claim, leaving the latter to reimburse itself, if sees fit, omission arising from fault or negligence, requires an
from the owners. allegation of one or the other of said causes, which is the
The bills presented covers the period when the basis of said action, according to articles 1089, 1093,
Admiral Line was yet the agent. The Court held that the 1902, and 1903 of the Civil Code; and such proof must
Admiral Line, as agent for the Bark Monongahela, is be made by the plaintiff in accordance with the general
liable to the plaintiff for supplies furnished the principle of evidence regarding obligations; and it is not
Monongahela between March 16, 1921 and August 2, sufficient merely to suggest - what at any rate cannot be
1921, but is not responsible for supplies furnished after admitted - that from the mere existence of damage,
that date, when it has ceased to become the agent of liability must be presumed and that the defendant must
Bark. rebut such a presumption.
In Cangco vs. Manila Railroad Co. (38 Phil.,
Walter Smith vs. Cadwallder Gibson Lumber Co. 768), this court held that article 1903 of the Civil Code is
not applicable to obligations arising from contracts, but
Facts: only to obligations arising without any agreement; or, to
On Aug. 30, 1926, steamer Helen C, owned by employ technical language, that article refers only to
Cadwallader and commanded by Capt. Miguel Lasa, culpa aquiliana and not to culpa contractual. In a
struck the wharf of Walter Smith at the port of Olutanga, contract of maritime transportation existing between the
5

parties, the same should be decided upon Articles 587 with good ground, is imputable to the negligence of the
and 618 of the Code of Commerce. persons having charge at that time of said motor boat.
It is true that under article 1903 of the Civil 2. It is proven that the agents and employees,
Code, the law presumes that the master, if regarded as through whose negligence the explosion and fire in
an establishment, has been negligent in the selection of, question occurred, were agents, employees, and
or instruction to, its servants, but that is a mere juris mandatories of the defendant. Where the vessel is one
tantum presumption and is destroyed by the evidence of of freight, a public concern or public utility, its owner or
due care and diligence in this respect. A master who agent is liable for the tortious acts of his agents (arts.
takes all possible precaution in selecting his servants or 587, 613, and 618, Code of Commerce; and arts. 1902,
employees, bearing in mind the qualifications necessary 1903, 1908, Civil Code).
for the performance of the duties to be entrusted to The general liability of a vessel owner extends to
them, and instructs them with equal care, complies with losses by fire arising from other than a natural or other
his duty to all third parties to whom he is not bound excepted cause, whether occurring on the ship
under contract, and incurs no liability if, by reason of the accidentally, or communicated from another vessel, or
negligence of such servants though it be during the from the shore; and the fact that fire produces the motive
performance of their duties as such, third parties should power of a boat does not affect the case.
suffer damages.
Yu Biao Sontua & Co. vs. Miguel Ossorio II. CAPTAINS AND MASTERS OF VESSELS
Facts: A. CONCEPT
On the evening of the 13th of March, 1920, a fire The name of captain or master is given,
broke out on board the motor boat Alfonso when this according to the kind of vessel, to the person in charge
boat was in the Pasig River ready to weigh anchor. A of it.
short distance from the Alfonso, the steamer Y. Sontua, Captain governs vessels that navigate the
owned by plaintiff, was lying alongside moored to the high seas or ships of large dimensions and importance,
wharf of said river.The fire in the motor boat Alfonso although they be engaged in the coastwise trade.
spread to the steamer Y. Sontua, causing damages to Masters commands smaller ships engaged
her deck exclusively in the coastwise trade.
The plaintiff brought this action to recover from However, for purposes of maritime commerce,
the defendant, the owner and agent of said motor boat these two terms have the same meaning.
Alfonso damages alleged by the plaintiff to have been
sustained by him through the negligence of the agents B. QUALIFICATIONS
and employees of the said defendant, which caused the
fire in the aforesaid motor boat Alfonso, wherefrom it Art. 609. Captains, masters or patrons of vessels
spread, and caused said damages to the steamer Y. must be Filipinos, have legal capacity to contract in
Sontua. accordance with this code, and prove the skill,
The trial court sentenced the defendant to pay capacity, and qualifications necessary to command
the plaintiff holding the former to have been negligent of and direct the vessel, as established by marine or
his agents and employees. Hence, this appeal. navigation laws, ordinances or regulations, and
must not be disqualified according to the discharge
Issues: of the duties of the position.
1. Whether or not the fire resulted from the If the owner of the vessel desires to be the
negligence of the persons in charge of the boat Alfonso. captain thereof, without having legal qualifications
2. Whether or not the owner is liable for such therefor, he shall limit himself to the financial
negligence, if present. administration of the vessel, and shall intrust the
navigation to a person possessing the qualifications
Held: requires by said ordinances and regulations.
1. Expert testimony was introduced by the
plaintiff to the effect that it is but natural that, after pp.512523(cher)
several transshipments, there is bound to be a leakage
due to the fact that the loading is effected by means of
straps which, quite frequently, receive violent bumps C. POWERS AND FUNCTIONS
resulting in damage to the cans and the consequent
leakage of either gasoline or petroleum, as the case may SC explained in Inter-Orient Maritime Enterprises, Inc. et
be. al. v. C.A.
The Court held that the explosion and fire in the Alfonso,
-the captain of a vessel is a confidential and managerial
6

employee acting in accordance with the instructions

received and protecting the interests of the
-A master or captain (for maritime purposes) has owner with utmost care.
command of a vessel
5. To adopt all proper measures to keep the vessel
- commonly performs 3 distinct roles: well supplied and equipped, purchasing all that
may be necessary for the purpose, provided
1) general agent of ship owner : has authority to sign there is no time to request instruction form the
bills of lading, carry goods aboard and deal with the ship agent.
freight earned, agree upon rates and decide whether to
take cargo; has legal authority to enter into contracts 6. To order, in similar urgent cases while on
with st ject to applicapect to the vessel and the trading of voyage, the repairs on the hull and engines of
the vessel, subject to limitations established by statute, the vessel and in its rigging and equipment,
contracts or regulations of the shipowner which are absolutely necessary to enable it to
continue and finish its voyage; but it he should
2) commander and technical director of the vessel (most arrive at a point where there is a consignee of
important role of all 3) :operation and preservation of the the vessel, he shall act in concurrence in the
vessel during its voyage and the protection of the latter.
passengers if any and crew and cargo
3) representative of the country under whose flag he

navigates: ARTICLE 611. Sources of funds to comply with the
inherent powers of the captain (in successive order)
- Captain is committed to the governance and care and
management of the vessel: both management and 1. from the consignee of the vessel
fiduciary functions
2. from the consignee of the cargo
3. by drawing on the ship agent

CODE OF COMMERCE PROVISIONS ON POWERS
AND OBLIGATIONS OF CAPTAIN OR MASTER: 4. by a loan on bottomry
ARTICLE 610. The following powers shall be inherent in 5. by sale of part of the cargo
the position of captain, master or patron of a vessel:
In 4 and 5:
1. To appoint or make contracts with the crew in
the absence of the ship agent, to propose said -he must apply to the judicial authority of the port, if
crew, should said agent be present; but the ship in the phils
agent may not employ any member against the
captains express refusal. -he must apply to the consul of the Phils if in a
foreign country
2. To command the crew and direct the vessel to
the port of its destination, in accordance with the - where there is none, to the local authority (all in
instruction he may have received from the ship accordance with article 583 and laws on civil
agent. procedure)
3. To impose, in accordance with the contracts and ARTICLE 612. Inherent Obligations of the office of
with the laws and regulations of the merchant the captain:
marine, and when on board the vessel,
correctional punishment upon those who fails to 1) To have on board before starting a voyage:
comply with his orders or are wanting in
a) detailed inventory of hull, engines, rigging, spare
discipline, holding a preliminary hearing on the
masts, tackle, other equipment
crimes committed on board the vessel on the
seas, which crimes shall be turned over to the b) royal or navigation certificate
authorities having jurisdiction over the same at
the first port touched. c)roll of the persons making up the crew of the
vessel and contracts entered with them
4. To make contracts for the charter of the vessel n
the absence of the ship agent or its consignee, d) passengers list
7

e) bill of health 8. Protest arrivals under distress : maritime authority

if in the phils, and ti consul of Phils if in foreign
f) certificate of registry proving ownership of the country; before the elapse of 24 hours
vessel and obligations encumbered upon it
9. To take the necessary steps before the competent
g) chartered parties authority in order to record in the certificate of the
vessel in the registry of vessels the obligation which
h) invoices/manifests of cargo he mamy contract ina ccordance with Article 583
i) memorandum of visit/ inspection of experts 10. To place under good care and custody all the
papers and belonging of any members of ht crew
2) Copy of Code of Commerce on board who might die on the vessel and to draw inventory in
presence of other passenfers or members of crew
3) To have log book, accounting book and freight
as witness
book
11. To conduct himself liable for which he may do in
log book - First book which has entries of: 1) day by
violation of the rules and precepts in th instructions
day condition of atmosphere, courses taken, engine
of the ship agent.
power used and distances covered; 2) damages
suffered or impairment or dame suffered by the 12. To inform the ship agent from the port at which
cargo; 3) decisions adopted by vessel officers or the vessel arrives the reason of his arrival, and notify
crew in cases advice or meeting is required him of the cargo he may received. Stating the
names and domiciles of the shippers, freightage
accounting book- Second book which has entries of:
eanred, and amounts borowed on bottomry loan
1) amounts collected and paid for the account of the
vessel and its source of collection and sum spent for 13. Observe rules with respect to situation, lights
provision, repairs, acquisitions of equipment, goods, and maneuvers to prevent collisions
fuel, food , outfits, wages, and other expenses; 2) list
of crew members stating their domiciles, wages and 14. Remain on board in case the vessel is in danger
salaries, and any sum received on their account until all hope to save it is lost and before abandoning
directly or by delivery to their families. it to hear the officers and crew; if the boarts are to
be taken to he shall takewith him the books and
freight book - Third book which has entries of: 1) papers and articles of most value
record of loading and discharge of all the goods,
with marks and packages and names of shipper and 15. Protest in case of shipwreck : maritime authority
consignees, ports and freightage; 2) record names if in the phils, and ti consul of Phils if in foreign
and places of sailing of passengers, number of country; before the elapse of 24 hours
packages in their baggage and price of baggage.
16. Comply with obligation imposed by the laws and
4. Examination of the ship before voyage, if required regulations on navigation, customs, health, and
by shippers and passengers, in order to ascertain others.
whether it is watertight ensuring equipment good for
navigation. D. DISCRETION OF CAPTAIN OR MASTER
5. Be on deck while leaivng or entering the port and - SHip captain must be accorded a reasonable
not to consent to the loading of any dangerous measure of discretionary authority to decide what
merchandise without precautions recommended for the safety of the ship and of its crew and and cargo
their packing specifically requires on a stipulated ocean voyage.
6. Demand the pilot at the expense of the vessel - Captain responsible for the safety.
whenever required by navigation or principally when
he has to enter port, canal, or river - Captain is in command of the vessel and
knowledgeable of its seaworthiness and particular
7. To be on deck on reaching land and to take risks and perils.
command on entering and leaving ports, canals,
roadsteads, and rivers unless there is a pilot on -Applicable principle: Captain has control of all
board discharging his duties. Not to spend the night departments of sevice in the vessel, and reasonable
away from the vessel except for serious causes or discretion as to its navigation.
by reason of official business.
- Captain's right and duty to do all things for the
8

protection and preservation of the interests under his such reasonable opportunity, he is bound to act
charge. promptly according as he has elected either to
repari, or abandon the voyage or tranship.
-Captain must be left free to exervise his own
judgment. E. PILOTAGE
Compaignie de Commerce v. Hamburg (no. 10986, What is a Pilot?

March 31, 1917)
- "mercantile law" - person duly qualified, and license
Facts: A charter party was executed between to conduct a vessel into or out of ports or in certain
Compaigne de Commerce and the owners of the waters.
vessel Sambia, under which the former loaded on
board at the port of Saigon, certain cargo destined - "broad sense" 1) those whose duty is to guide
for the Ports of Dunkirk and Hamburg in Europe. vessels into or out of ports, or in particular waters; 2)
The Sambia, flying the German flag, could not, in the those netrusted with the navigation of vessels ont he
judgment of the master, reach its ports of destination high seas
because war had been declared between Germany
and Grance. The master of the Sambia decided to - "generally understood" - a person taken on board
deviate from the stipulated voyage and saled instead at a aprticular place for the purpose of conducting a
to the Port of Manila. Compaingie de Commerce ship through a river, road or channel , or from a port.
sued in the Philippines for damages arising from the
breach of the charter party and unauthorized sale of - Master pro hac vice ( for the time being) in the
the cargo. command and navigation of the ship
Issue: Whether or not the captain had reasonable What is compulsory pilotage?
grounds to apprehend that the vessel was in danger
- States possessing harbors have enacted laws or
or seizure or capture by the Frewnch authorities in
promulgated rules requiring vessels approaching
Saigon and was justigied by necessity to elect the
their ports to take on board pilots olicensed under
course which he took.
the local law.
Held: SC held yes. The danger from which the
-Port of Manila within Manila Pilotage District
master of the Sambia fled was a real and not merely
(pursuant to Section 8 Article III of Phil Ports
and imaginary one as counsel for shipper contends.
Authority Administrative Order No. 03-85, 47)
The word "necessity" when applied to mercantile
affairs where the judgment must be in the nature of Section 8. Compulsory Pilotage Service- Every
things be exercised, cannot of course mean an vessel engaged in coastwise and foreign trade shall
irresistible compelling power. What is meannt is be under compulsory pilotage; for 1) entering a
cases by which force of circumstance determine the harbor and anchoring thereat; 2) passing through
course a man ought to take. Thus, when by such rivers or straits within pilotage district; 3) docking
force of circumstances, a man has the duty cast and undocking at any pier; 3) shifting from one berth
upon him of taking some action for another, and to another
under that obligation adoots a course which, to the
judgment of a wise and prudent man, is apprently Sections 11 and 32. Duties and Responsibilities of
the best for ht einterest of hte persons for whom he compulsory pilot and the master
acts ina given emergency, it may properly be said of
the course os taken that it was in metcantile sense a) Responsibility of Harbor Pilot for damage cause
necessary to take it. to a vessel or to life and porperty at ports due to his
engligenfe or fault. Absolution of liability is only
Compaignie de COmmerce contended that the possible if its through force majeure or natural
shipowner should at all evgents be held resonsible calamities provided he has exercised prudence and
for the deterioration int he value of the cargo as long extra diligence to prevent or minimize damage.
as it is stayed on the vessel from the arrival in
Manila until it is sold. SC rejected this contention b) Countermand or overrule by the master of the
and stated that the master could not be required to vessel in which case the registered owner of the
act ont he very day of his arrival he must have a vessel is liable
reasonable opportunity to ascertain whether he
could hope to carry out his contract and earn his c) Pilot responsible for the direction of the vessel
greight and such delay would be upon his from the time he assumes work until the vessel is
responsibility. But once the time has elapsed for anchored but such ceases upon the Master's neglect
9

or refusal to carry out his order. qualified, and licensed, to conduct a vessel into or out
ports, or in certain waters)
a. Master and Pilot
b. Shipowner and Pilot
Far Eastern Shipping Co. v. Court of Appeals (SC
explained duties of pilot in relation to the master) (Far Eastern Shipping Co. vs. CA)
Gen. rule: pilot is personally liable for the damages
- The pilot supersedes the master for the time being caused by his own negligence or default to the owners of
in the command and navigation of the ship and his the vessel, & to third parties for damages sustained in a
orders must be obeyed in all matters connected with collision maritime tort
her navigation.
In case of collision, the colliding vessel is prima facie
-Becomes master pro hac vice and should give all
responsible burden of proof is upon the party claiming
directions as to speed, course, stopping and
the benefit of exemption from liability.
reversing, anchoring, towing and the like.
- In a place where pilotage is compulsory, it is the It must be proven that the pilot was at fault and there
pilot's duty to insist on having effective control of the was no fault on the part of the officers or crew.
vessel or to decline to act as a pilot.
The fact that the law compelled the master to take the
-Purpose of laws: create a body of seamen pilot does not exonerate the vessel from liability.
thoroughly acquainted with the harbor, to pilot
vessles, seeking to enter or depart, and this protect The parties who suffer are entitled to have their remedy
life and property from the dangers of navigation against the vessel that occasioned the damage, and are
not under necessity to look to the pilot from whom
- The Steamship China v. Walsh- duty of the master redress is not always had for compensation. The owners
to interfere in cases of the pilot's intoxication or of the vessel are responsible to the injured party for the
manifest incapacity, in cases of danger which he acts of the pilot, and they must be left to recover the
does not foresee, and in all cases of great necessity. amount as well as they can against him.
The master has the same power to displace the pilot
that he has to remove any subordinate officer of the It cannot be maintained that the circumstances of having
vessel, at his discretion. a pilot on board, and acting in conformity to his
directions operate as a discharge of responsibility of the
- Jure v. United Fruit Co. - Where a compulsory pilot owners. Except insofar as their liability is limited or
is in charge of a ship, the master being required to exempted by statute, the vessel or her owner are liable
permit him to navifate it, if the master observes that for all damages caused by the negligence or other
the pilot is incompetent or physically incapable, then wrongs of the owners or those in charge of the vessel.
it is the duty of the master to refuse to permit the When the pilot is employed voluntarily by the owners,
pilot to act. But if no such reason are present, then they are, all the more, liable for his negligent act.
the master is justified in relying upon the pulot, but
not blindy. Under the situations of the case, where a
circumstance arose where the master exercising c. Pilot and his Association
that reasonable vigilance which the master of the
ship should exercise, observed or should have The fact that the pilot is a member of an association
observed, that the pilot was so navigating the vesel does not make the association jointly and severally
that she was going or was likely to go into danger, liable. Art. 2180 of the Civil Code does not apply
and there was int he exercise of reasonable care because there is no employer-employee relationship.
and vigilance an opportunity for the master to
intervene so as to save the ship from dangerm the
master should have act accordingly. The master of a (Ruga vs. NLRC 181 scra 266)
vessel must exercise a degree of vifiland The pertinent provisions in Chapter I of Customs
commensurate with the circumstances. Administrative Order No. 15-65 are:
pp.523531(diana) PAR. XXVII. In all pilotage districts where pilotage is

compulsory, there shall be created and maintained by
(Shipowner person who has possession, control, the pilots or pilots' association, in the manner hereinafter
management of the vessel and the consequent right to prescribed, a reserve fund equal to P1,000.00 for each
direct her navigation and receive freight earned and pilot thereof for the purpose of paying claims for
paid, while his possession continues; Pilot person duly damages to vessels or property caused through acts or
10

omissions of its members while rendered in compulsory of the liability referred to in the immediately preceding
pilotage service. In Manila, the reserve fund shall be paragraph which is left unsatisfied by the insurance
P2,000.00 for each pilot. proceeds, in the following manner:
1) Each pilot in the Association shall contribute from his
PAR. XXVIII. A pilots' association shall not be liable own account an amount of P4,000.00 (P6,000.00 in the
under these regulations for damage to any vessel, or Manila Pilotage District) to the reserve fund. This fund
other property, resulting from acts of a member of an shall not be considered part of the capital of the
association in the actual performance of his duty for a Association nor charged as an expense thereof.
greater amount than seventy-five per centum (75%) of 2) Seventy-five percent (75 %) of the reserve fund shall
its prescribed reserve fund; it being understood that if be set aside for use in the payment of damages referred
the association is held liable for an amount greater than to above incurred in the actual performance of pilots'
the amount above-stated, the excess shall be paid by duties and the excess shall be paid from the personal
the personal funds of the member concerned. funds of the member concerned.
xxx xxx xxx
PAR. XXXI. If a payment is made from the reserve 5) If payment is made from the reserve fund of an
fund of an association on account of damages caused Association on account of damage caused by a member
by a member thereof, and he shall have been found at thereof who is found at fault, he shall reimburse the
fault, such member shall reimburse the association in Association in the amount so paid as soon as
the amount so paid as soon as practicable; and for this practicable; and for this purpose, not less than twenty-
purpose, not less than twenty-five per centum of his five percentum (25 %) of his dividend shall be retained
dividends shall be retained each month until the full each month until the full amount has been returned to
amount has been returned to the reserve fund. the reserve fund. Thereafter, the pilot involved shall be
entitled to his full dividend.
PAR. XXXIV. Nothing in these regulations shall 6) When the reimbursement has been completed as
relieve any pilots' association or members thereof, prescribed in the preceding paragraph, the ten
individually or collectively, from civil responsibility for percentum (10%) and the interest withheld from the
damages to life or property resulting from the acts of shares of the other pilots in accordance with paragraph
members in the performance of their duties. (4) hereof shall be returned to them.
Correlatively, the relevant provisions of PPA c) Liability of Pilots' Association Nothing in these
Administrative Order No. 03-85, which timery amended regulations shall relieve any Pilots' Association or
this applicable maritime regulation, state: members thereof, individually or collectively, from any
civil, administrative and/or criminal responsibility for
Art. IV damages to life or property resulting from the individual
Sec. 17. Pilots' Association The Pilots in a Pilotage acts of its members as well as those of the Association's
District shall organize themselves into a Pilots' employees and crew in the performance of their duties.
Association or firm, the members of which shall
promulgate their own By-Laws not in conflict with the
rules and regulations promulgated by the Authority. F. Code of Commerce provisions on captains
These By-Laws shall be submitted not later than one (1)
month after the organization of the Pilots' Association for 613. A captain who navigates for freight in common
approval by the General Manager of the Authority. or on shares may not make any separate transaction
Subsequent amendments thereto shall likewise be for his own account; and should he do so, the profit
submitted for approval. which may accrue shall belong to the other persons
interested, and the losses shall be borne by him
exclusively.
. 25. Indemnity Insurance and Reserve Fund 614. A captain who, having made an agreement to
a) Each Pilots' Association shall collectively insure its make a voyage, fails to perform his undertaking,
membership at the rate of P50,000.00 each member to without being prevented by fortuitous accident or
cover in whole or in part any liability arising from any force majeure, shall indemnify for all the losses
accident resulting in damage to vessel(s), port facilities which he may cause without prejudice to the
and other properties and/or injury to persons or death criminal penalties which may be proper.
which any member may have caused in the course of his
performance of pilotage duties. . . . . 615. w/out the consent of the agent, the captain
cannot have himself substituted by another person;
b) The Pilotage Association shall likewise set up and and should he do so, besides being liable for all the
maintain a reserve fund which shall answer for any part acts of the substitute and bound to the indemnities
11

mentioned in the foregoing articles, the captain as should not have taken without sufficient
well as the substitute may be discharged by the ship cause, in the opinion of the officers of the
agent. vessel, at a meeting with the shippers or
supercargoes who may be on board.
616. If the provisions and fuel of the vessel should No exceptions whatsoever shall exempt him
be consumed before arriving at the port of from this obligation.
destination, the captain shall order, with the consent 7. For those arising by reason of his voluntary
of the officers of the same, the arrival at the nearest entering a port other than that of his
port to get a supply of either; but if there are destination, outside of the cases or without
persons on board who have provisions for the the formalities referred to in Article 612.
common consumption of all those who may be on 8. For those arising by reason of non-
board, paying the price thereof at the same time, or observance of the provisions contained in
at latest, at the first port reached. the regulations on situation of lights and
617. The captain may not contract loans on maneuvers for the purpose of preventing
respondentia secured by the cargo; and should he collisions.
do so, the contracts shall be void.
619. The captain shall be liable for the cargo from
Neither may he borrow money on bottomry for his the time it is delivered to him at the dock or afloat
own transactions, except on the portion of the alongside the vessel at the port of loading, until he
vessel he owns, provided no money has been delivers it on the shore or on the discharging wharf
previously borrowed on the whole vessel, and there at the port of unloading, unless the contrary has
does not exist any other kind of lien or obligation been expressly agreed upon.
chargeable against the vessel. If he may do so, he
must state what interest he has in the vessel. 620. The captain shall not be liable for damages
caused to the vessel or to the cargo by force
In case of violation of this article, the principal, majeure; but he shall always be so for those arising
interest, and costs shall be for the personal account through his own fault, no agreement to the contrary
of the captain, and the ship agent may furthermore being valid.
discharge him.
Neither shall he be personally liable for the
618. The captain shall be civilly liable to the ship obligations he may have contracted for the repair,
agent, and the latter to the third persons who may equipment, and provisioning of the vessel, which
have made contracts with the former; shall devolve upon the ship agent, unless the former
has expressly bound himself personally or has
1. For all the damages suffered by the vessel signed a bill of exchange or promissory note in his
and its cargo by reason of want of skill or name.
negligence on his part. If a misdemeanor or
crime has been committed, he shall be liable 621. A captain who borrows money on the hull,
in accordance with the Penal Code. engine, rigging or tackle of the vessel, or pledges or
2. For all the thefts committed by the crew, sells merchandise or provisions outside of the cases
reserving his right of action against the and without the formalities prescribed in this Code,
guilty parties. shall be liable for the principal, interests, and costs,
3. For all the losses, fines, and confiscations and shall indemnify for the damages he may cause.
imposed an account of violation of customs,
police, health, and navigation laws and He who commits fraud in his accounts shall pay the
regulations. amount defrauded and shall be subject to the
4. For the losses and damages caused by provisions of the Penal Code.
mutinies on board the vessel or by reason of
faults committed by the crew in the service 622. If while on a voyage the captain should learn of
and defense of the same, if he does not the appearance of the privateers or men of war
prove that he made timely use of all his against his flag, he shall be obliged to make the
authority to prevent or avoid them. nearest neutral port, inform his agent or shippers,
5. For those caused by the misuse of the and await an occasion to sail under convoy, or until
powers and the non-fulfillment of the the danger is over or he has received express orders
obligations pertaining to him in accordance from the ship agent or the shippers.
with Articles 610 and 612.
6. For those arising by reason of his going out 623. If he should be attacked by a privateer, and,
of his course or taking a course which he after having tried to avoid the encounter and having
12

resisted the delivery of the effects of the vessel or pp.532541(princess)

its cargo, they should be forcibly taken away from
him, or he should be obliged to deliver them, he Problems: p. 532
shall make an entry thereof in his freight book and
shall prove the fact before the competent authority Inter-Orient Maritime Enterprises, Inc. Sea Horse
at the first port he touches. Ship, Inc. and Trenda World Shipping (Manila), Inc.
v. National Labor Relations Commission and
After the force majeure has been proved, he shall be Rizalino Tayong
exempted from liability. G.R. No. 115286 . August 11, 1994
624. A captain whose vessel has gone through a
hurricane or who believes that the cargo has
Facts: Private respondent Captain Rizalino Tayong, a
suffered damages or averages, shall make a protest
licensed Master Mariner with experience in commanding
thereon before the competent authority at the first
ocean-going vessels, was employed on by petitioners
port he touches, within 24 hours following his arrival
Trenda World Shipping (Manila), Inc. and Sea Horse
and shall ratify it within the same period when he
Ship Management, Inc. through petitioner Inter-Orient
arrives at his destination, immediately proceeding
Maritime Enterprises, Inc. as Master of the vessel M/V
with the proof of the facts, and he may not open the
Oceanic Mindoro, for a period of one (1) year. While at
hatches until after this has been done.
the Port of Hongkong and in the process of unloading
cargo, Captain Tayong received a weather report that a
The captain shall proceed in the same manner, if, the
storm code-named "Gordon" would shortly hit
vessel having been wrecked, he is saved alone or
Hongkong. So, Tayong followed-up the requisition by the
with part of his crew, in which case he shall appear
former captain of the Oceanic Mindoro for supplies of
before the nearest authority, and make a sworn
oxygen and acetylene, necessary for the welding-repair
statement of facts.
of the turbo-charger and the economizer. The vessel
arrived at the port of Singapore. The Chief Engineer
The authority or the consul shall verify the said facts
reminded Captain Tayong that the oxygen and acetylene
receiving sworn statements of the members of the
supplies had not been delivered. Captain Tayong
crew and passengers who may have been saved;
inquired from the ship's agent in Singapore about the
and taking such other steps as may assist in arriving
supplies. The ship agent stated that these could only be
at the facts he shall make a statement of the result of
the proceedings in the log book and in that of the delivered later on as the stores had closed.
sailing mate, and shall deliver to the captain the
original record of the proceedings, stamped and Captain Tayong called the shipowner, Sea Horse Ship
folioed, with a memorandum of the folios, which he Management, Ltd., in London and informed them that
must rubricate, in order that it may be presented to the departure of the vessel for South Africa may be
the judge or court of the port of destination. affected because of the delay in the delivery of the
supplies. When the vessel arrived at the port of Richard
The statement of the captain shall be accepted if it is Bay, South Africa on 16 August 1989, Captain Tayong
in accordance with those of the crew and was instructed to turn-over his post to the new captain.
passengers; if they disagree, the latter shall be He was thereafter repatriated to the Philippines, after
accepted, always saying proof to the contrary. serving petitioners for a little more than two weeks. He
was not informed of the charges against him. Captain
625.The captain, under his personal responsibility as Tayong instituted a complaint for illegal dismissal before
soon as he arrives at the port of destination, should the Philippine Overseas Employment Administration but
get the necessary permission from the health and the latter dismissed the complaint and such dismissal
customs officers, and perform the other formalities was later reversed by the NLRC.
required by the regulations of the administration,
delivering the cargo without any defalcation, to the Issue: W/N the petitioners are justified in dismissing
consignee, and in a proper case, the vessel, rigging, Captain Tayong
and freightage to the ship agent.
Held: No. Three reasons:
(In the absence of the consignee captain should place
it to the disposal of the proper judge or court or authority
A. It is well settled in this jurisdiction that
in order to determine what is proper with regard to its
confidential and managerial employees cannot
deposit, preservation and custody)
be arbitrarily dismissed at any time, and without
cause as reasonably established in an
13

appropriate investigation. Such employees, too, law that in navigating a merchantman, the
are entitled to security of tenure, fair standards master must be left free to exercise his own best
of employment and the protection of labor laws. judgment. Under all the circumstances of this
Moreover, The captain of a vessel is a case, we, along with the NLRC, are unable to
confidential and managerial employee within the hold that Captain Tayong's decision (arrived at
meaning of the above doctrine. A master or after consultation with the vessel's Chief
captain, for purposes of maritime commerce, is Engineer) to wait seven (7) hours in Singapore
one who has command of a vessel. A captain for the delivery on board the Oceanic Mindoro of
commonly performs three (3) distinct roles: (1) the requisitioned supplies needed for the
he is a general agent of the shipowner; (2) he is welding-repair, on board the ship, of the turbo-
also commander and technical director of the charger and the economizer equipment of the
vessel; and (3) he is a representative of the vessel, constituted merely arbitrary, capricious
16
country under whose flag he navigates. Of or grossly insubordinate behavior on his part.
these roles, by far the most important is the role
performed by the captain as commander of the
vessel; for such role (which, to our mind, is
analogous to that of "Chief Executive Officer" SWEET LINES, INC., petitioner,
[CEO] of a present-day corporate enterprise) vs.
has to do with the operation and preservation of
THE HONORABLE COURT OF APPEALS, MICAELA
the vessel during its voyage and the protection
B. QUINTOS, FR. JOSE BACATAN, S.J., MARCIANO
of the passengers (if any) and crew and cargo.
CABRAS and ANDREA VELOSO, respondents.
G.R. No. L-46340 . April 28, 1983
B. It is plain from the records of the present petition

Facts: private respondents purchased first- class
that Captain Tayong was denied any opportunity
tickets from petitioner at the latter's office in Cebu City.
to defend himself. Petitioners curtly dismissed They were to board petitioner's vessel, M/V Sweet
him from his command and summarily ordered Grace, bound for Catbalogan, Western Samar. Instead
his repatriation to the Philippines without
of docking at Catbalogan, which was the first port of call,
informing him of the charge or charges levelled
the vessel proceeded direct to Tacloban at around 9:00
against him, and much less giving him a chance
P.M. of July 10, 1972. Private respondents had no
to refute any such charge. recourse but to disembark and board a ferryboat to
Catbalogan. For having by-passed a port of call without
previous notice, petitioner shipping company and the
ship captain were sued for damages by four of its
C. A ship's captain must be accorded a reasonable passengers, private respondents herein, before the then
measure of discretionary authority to decide Court of First Instance which ruled in favor of the
what the safety of the ship and of its crew and passengers and which decision was affirmed by the CA.
cargo specifically requires on a stipulated ocean
voyage. The captain is held responsible, and Issue: W/N there was a force majeure which the right to
properly so, for such safety. He is right there on damages and indemnity would not exist against a
the vessel, in command of it and (it must be captain
presumed) knowledgeable as to the specific
requirements of seaworthiness and the
Held: None. Two reasons:
particular risks and perils of the voyage he is to
embark upon. The applicable principle is that the
captain has control of all departments of service A. As found by both Courts below, there was no
in the vessel, and reasonable discretion as to its fortuitous event or force majeure which
navigation. It is the right and duty of the captain, prevented the vessel from fulfilling its
in the exercise of sound discretion and in good undertaking of taking private respondents to
faith, to do all things with respect to the vessel Catbalogan. In the first place, mechanical
and its equipment and conduct of the voyage defects in the carrier are not considered a caso
which are reasonably necessary for the fortuito that exempts the carrier from
protection and preservation of the interests responsibility. In the second place, even
under his charge, whether those be of the granting arguendo that the engine failure was a
shipowners, charterers, cargo owners or of fortuitous event, it accounted only for the delay
underwriters. It is a basic principle of admiralty in departure. When the vessel finally left the port
14

of Cebu on July 10, 1972, there was no longer international trade (Memorandum Circular No. 137) are
any force majeure that justified by-passing a port the following:
of call. The vessel was completely repaired the
following day after it was towed back to Cebu. In 1. Master is a person having command of a ship.
fact, after docking at Tacloban City, it left the
next day for Manila to complete its voyage. 2. Deck Officer means an officer qualified in accordance
with the provisions
B. Furthermore, the conditions relied upon by petitioner of the International Convention on Standards of Training,
in small bold print at the back of the ticket reading: Certification
and Watchkeeping for Seafarers (STCW) 1978, as
amended, Chapter II.
The passenger's acceptance of this
ticket shall be considered as an
3. Chief Engineer is a senior licensed marine engineer
acceptance of the following conditions:
officer responsible for
the mechanical propulsion and the operation and
3. In case the vessel cannot continue or maintenance of the
complete the trip for any cause mechanical and electrical installations of the ship.
whatsoever, the carrier reserves the
right to bring the passenger to his/her 4. Engineer Officer means an officer qualified in
destination at the expense of the carrier accordance with the
or to cancel the ticket and refund the provisions of the International Convention on Standards
passenger the value of his/her ticket; of Training,
Certification and Watchkeeping for Seafarers (STCW)
xxx xxx xxx 1978, as amended,
Chapter III.
cannot prevail over Articles 614 and 698 of the
Code of Commerce heretofore quoted. 5. Radio Officer is a person holding an appropriate
certificate issued and
The voyage to Catbalogan was "interrupted" by the recognized by the Administration under the provisions of
captain upon instruction of management. The the Radio
"interruption" was not due to fortuitous event or for Regulations.
majeure nor to disability of the vessel. Having been
caused by the captain upon instruction of 6. Ratings man is a member of the ship's crew other
management, the passengers' right to indemnity is than the master or an
evident. The owner of a vessel and the ship agent officer.
shall be civilly liable for the acts of the captain.
7. Seagoing ship refers to Philippine-registered ships
engaged in
international trade.
III. Officers and Crew of Vessels
8. STCW Code means the Seafarer's Training,
Art. 648 of the Code of Commerce provides that:
Certification and
Watchkeeping (STCW) Code as adopted by the STCW
the complement of a vessel shall be understood
Convention 1978, as amended.
all the persons on board, from the captain to the cabin
boy, necessary for the management, maneuvers and
On the other hand, Memorandum Circular No. 148
service and therefore, the complement shall include the
issued by the MARINA for domestic trade specifies the
crew, the sailing mates, engineers, stokers and other
following officers, among others:
employees on board not having specific designations;
but it shall not include passengers or the persons whom
1. Officer means a member of the crew, other than
the vessel is transporting.
the master, who has been designated as such national
law or regulation or, in the absence of such designation,
RA 8544 The Philippine Merchant Marine Officers Act of
by collective agreement or custom.
1998 refers to either a marine deck officer or a marine
deck engineer.
2. Master means the person having command of a
ship.
The officers who are named in the regulation issued by
the MARINA in connection with safe, manning for
15

3. Chief Mate means an officer next in rank to the 15. Electrician means a licensed master electrician
master and upon whom the command of a ship will fall in who is responsible for the maintenance of the electrical
the event of the incapacity of the Master. and electronic installations of the ship.
4. Deck Officer means an officer qualified in 16. Rating means a member of the ships crew other
accordance with the provisions of Chapter II of the than the master or an officer.
Convention.
5. Chief Engineer Officer means a senior engineer pp.541550(angel)

officer responsible for the mechanical propulsion and the
operation and maintenance of the mechanical and A. Regulation of Merchant Marine Profession
electrical installations of the ship.
Philippine Merchant Marine Officers Act of 1998
6. Second Engineer Officer means the engineer regulates Merchant Marine Profession in the
officer next-in-rank to the Chief Engineer and upon Philippines
whom the responsibility for the mechanical propulsion -creted the Board of Marine Deck Officers and
and the operation and maintenance of the mechanical Board of Marine Engineer Officers
and electrical installation of the ship will fall in the event
of the incapacity of the Chief Engineer. Declaration of Policy:
1. to promote and insure the safety of life and
7. Engineer Officer means an officer qualified in
accordance with the provisions of chapter III of the property at sea, protect and serve the
Convention. marine environment and ecology, and
prevent marine pollution and accident at sea
8. Medical Practitioner means a registered Doctor of by complying with the Standards of Training,
Medicine in charge of the medical department of a ship. Certification and Watchkeeping for
Seafarers 1978 (STCW '78), as amended, to
9. Radio Officer means a person holding an
appropriate certificate issued and recognized by the which the Philippines is signatory.
Administration under the provisions of the Radio 2. to institutionalize radical changes as
Regulations Act. required by international and national
standards to insure that only qualified,
10. Paramedic are auxiliary medical personnel such competent and globally competitive Marine
as midwives, or nurses with special training on Deck/Engineer Officers as determined
administering first aid.
through licensure examinations shall be
11. Major Patron (MAP) shall refer to a marine deck allowed entry to the practice of the Merchant
officer duly registered and certificated to act as officer or Marine profession
master of vessel/ship of not more than 500 GT
navigating in the major coastwise trade routes within the Definition of Terms:
territorial limits of the Philippines.
(a) "Practice of Merchant Marine Profession"
12. Minor Patron (MIP) shall refer to a marine deck shall refer to the profession requiring the
officer duly registered and certificated to act as officer or application of fundamental and known principles
master of vessel/ship of not more than 250 GT of navigation, seamanship and engineering to
navigating within a specified body of water in the minor the peculiar condition and requirements of on
coastwise trade routes in the Philippines. board management, operation and maintenance
of main propulsion and auxiliary engines,
13. Boat Captain means a person authorized by the stability and trim of the vessel and cargo
Administration to act as officers and/or in command of a handling. It shall also cover but will not be
boat/ship or the qualification/license to act as such. limited to the following:
14. Marine Diesel Mechanic (MDM) means a person (1) The proper handling and stowage of
authorized by the Administration to operate and maintain cargoes on board ship which includes the safe
the ships diesel engine/s or the qualification/license to carriage of passengers from port of origin to port
act as such. of destination;
16

(2) The safe watchkeeping of the university duly recognized by the Commission on Higher
vessel's navigation in accordance with the Rules Education [CHED];
of the Road at Sea;
[e] For an applicant taking the examination other than
(3) The Maritime Education and Training that for the Marine Deck/Engineer Officer, he must have
of Cadets and other Marine Professionals; completed a course approved by the appropriate
government agency, as defined in the rules and
(4) Employment with government, regulations implementing this Act.
provided such item or position requires the
knowledge and expertise of a Merchant Marine Sec. 15. Fraudulent Application. The Board may
Officer. suspend or revoke any Certificate of Registration
obtained through misrepresentation made in the
(b) "Merchant Marine Vessel" shall apply application for examination.
only to the commercial ships, propelled by
machinery, public or private, strictly engaged in Sec. 16. Scope of Examination. The subjects that
maritime commerce, both seagoing and/or near- shall be included in the examination for Marine
coastal trade, vessels engaged in the training of Deck/Engineer Officer shall include, among others, the
cadets for the merchant marine profession, and following major functions:
noncombatant vessels of the Philippine
Government. (1) Navigation;
(2) Cargo Handling and Stowage;
(c) "Merchant Marine Officer" shall refer to (3) Controlling the Operation of the Ship and Care for the
marine deck or engineer officer. Persons On-Board;
(4) Marine Engineering;
(d) "Merchant Marine Deck Officer" shall (5) Electrical, Electronic and Control Engineering;
refer to a duly registered, certified and licensed (6) Maintenance and Repair;
master mariner, chief mate and officer-in-charge (7) Radio Communications at the following levels of
of a navigational watch. responsibility:
(1) Management Level

(e) "Merchant Marine Engineer Officer"
(2) Operation Level
shall refer to a duly registered, certified and
licensed chief engineer, second engineer, and
officer-in-charge of an engineering watch in a The said subjects and their syllabi may be amended by
manned engine-room or designated duty the Board so as to conform to technological changes
engineer in a periodically unmanned engine- brought about by continuing trends in the profession.
room, and coastal engineer.
Sec. 27. Practice of Merchant Marine Profession.
Sec. 14. Qualifications of Applicant for Examination. No person shall practice or offer to practice the merchant
Every applicant for examination shall establish the marine profession in the Philippines or offer himself as a
following requisites: marine deck/engineer officer, or use the title, word,
letter, figure or any sign tending to convey the
impression that he is a marine deck/engineer officer, or
[a] He is a citizen of the Philippines
advertise or indicate in any manner whatsoever that he
is qualified to perform the work of a marine
[b] He is of good moral character; deck/engineer officer unless he has satisfactorily passed
the licensure examination given by the Board and is a
[c] He has met standards of medical fitness, particularly holder of a valid Certificate of Registration and
with good eyesight and hearing as certified by a Certificate of Competency duly issued to him by the
Department of Health [DOH] accredited medical Board of Marine Deck/Engineer Officers.
institution conducting physical and medical examinations
for seafarers In compliance with the STCW '78 convention and its
amendments, the person holding senior merchant
[d] In the case of Marine Deck/Engineer Officer, he must marine licenses namely, the master, chief officer, chief
be a graduate of Bachelor of Science in Maritime engineer and second engineers must be able to function
Transportation or Bachelor of Science in Marine under the management level of responsibility while the
Engineering in a school, academy, institute, college or officers-in-charge of navigational and engineering watch
17

must be able to function under the operational level of Philippines subscribes to the rules provided in
responsibility the Convention on Standards of Training,
Certification and Watchkeeping for Seafarers
Sec. 28. Recognition of Certificates. A foreigner 1978 (STCW78)
holding a Certificate of Competency issued by his MEMORANDUM CIRCULAR 137
national administration in accordance with STCW '78 - provides for the rules on minimum safe
Convention, as amended, requirements shall be issued manning in the Philippine registered vessels
special dispensation to serve on board a Philippine engaged in international trade
registered vessel engaged in the international trade:
Provided, That the Philippine Certificate of Competency IV. GENERAL PROVISIONS:
issued and endorsed by the Board shall be reciprocally
recognized by the said foreign national administration to 1 Seagoing ships shall be completely manned by Filipino
allow the Filipino merchant marine to practice his seafarers. No foreign officers shall be allowed onboard
profession on board the foreigner's flag vessel. unless approved by the
Sec. 29. Quality Standards. The Boards shall Administration.

establish a system of standards that shall be subject to
external management assessment or audit in 2. Master, officers and ratings onboard seagoing ships
accordance with the STCW '78 Convention, as amended shall be duly qualified, competent, certificated and
medically fit in accordance with the existing rules on the
Sec. 30. Funding Provision. Such sums as may be issuance of certificates and endorsements for
necessary to carry out the provisions of this Act shall be
included in the General Appropriations Act of the year seafarers.
following its enactment into law and thereafter.
3 Seagoing ships shall have onboard an approved
Sec. 31. Integration of Marine Deck/Engineer minimum safe manning certificate indicating the
Officers. All marine deck/engineer officers shall be minimum number of officers and crew and their
integrated into one [1] national organization which shall corresponding licenses and qualification requirements.
be recognized by the Board and by the Commission as
the one and only integrated and accredited association 4. Masters, officers and ratings performing watchkeeping
of Marine Deck/Engineer Officers. A Marine shall meet the training requirements of STCW 1978, as
Deck/Engineer Officer duly registered with the Board amended, and those not performing watchkeeping duties
shall automatically become a member of the integrated shall undergo the basic safety training.
and accredited association of Marine Deck/Engineer
Officers, and shall receive the benefits and privileges For high speed craft, the crew shall under-o additional
appurtenant thereto upon payment of the required fees training in accordance with IMO Resolution MSC 36
and dues. Membership in the integrated and accredited (63)1 adopted on 20 May 1994.
association shall not be a bar to membership in other
associations of marine deck/engineer officers 5. By 01 February 1999, at least two (2) deck officers of
seagoing ship must be holders of Radio General
Sec. 32. Code of Ethics for Marine Deck/Engineer Operators' Certificate (GOC).
Officers. The Board shall adopt and approve the Code
of Ethics for Marine Deck/Engineer Officers prescribed V. MINIMUM SAFE MANNING:
by the integrated and accredited national association of
Marine Deck/Engineer Officers.
1. In adopting the Table of Minimum Safe Manning,
herein prescribed, the Administration took cognizance of
B. Minimum Safe Manning the Principles of Safe Manning, under IMO Resolution
No. A.481 (XII). Safe Manning under these Rules shall,
- not enough that the officers manning the therefore, mean that the crew shall include sufficient
merchant vessel have all the qualifications officers and ratings with appropriate skills and
imposed by the Philippine Merchant Marine experience to ensure that the following principles can be
Officers Act and other special laws but it is complied with:
required that there is sufficient number of
officers and crew that are serving in the (a) The capability to maintain a safe bridge watch at sea
in accordance with the STCW Convention 1978, as
vessel
amended;
18

(b) The capability to moor and unmoor a vessel (d) At each end of the ship, there should be sufficient
effectively; persons to enable them to accept and effectively secure
a tug and to send away tension and secure lines and
(c) The capability to operate and maintain effectively all backsprings. Any necessary operation should be
the watertight capable of being performed at bow and stem
simultaneously;
closing arrangements including ability to mount an
effective damage (e) The engineering watch should consist of not less the
one (1) duly qualified engineer officer and may include
control party; appropriate engine room ratings provided that they
comply with the requirements of Parts 3 and 3-2, Section
(d) The capability to operate and when practicable, A-VIII/2 of the STCW 1978, as amended;
maintain efficient, all fire equipment and life saving
appliances provided including the ability to muster and (f) In designating the number of personnel assigned to
disembark passengers and non-essential engineering watches, account shall be taken of the
following:
personnel;
(i) the number, size (KW) and type of the main
(e) The capability to manage the safety functions of the propulsion and auxiliary units over which surveillance is
ship when employed in a stationary or near-stationary to be maintained and the number of machinery spaces
mode at sea; containing these units; and
(f) The capability to maintain a safe engineering watch at (ii) adequacy of internal communication.
sea in accordance with the STCW Convention 1978, as
amended and also to maintain general surveillance of (g) Except in ships of limited propulsion power, a three
spaces containing main propulsion and auxiliary (3) watch system should be adopted; and
machinery;
(h) There should be a sufficient number of designated
(g) The capability to operate the main ropulsion and personnel available to ensure the cleanliness of
auxiliary machinery and maintain it in a safe condition to machinery spaces.
enable the ship to overcome the foreseeable pen 'Is of
the voyage; and 3. The Administration shall issue a minimum safe
manning certificate which needs to contain the following
(h) The capability to maintain the safety arrangements information:
and the cleanliness of machinery spaces to minimize the
risk of fire. (a) A clear statement of the Ship's Name, Call Sign, IMO
Number and Official Number, Gross Tonnage, Type of
2. In the application of the basic principles of safe Ship, Port of Registry, and Kilowatt of the Main
manning to ensure the safe operations of ships, the Propulsion;
following guidelines are hereby adopted:
(b) A table showing the numbers and grades of the
(a) There should be sufficient number of qualified personnel required to be carried, together with any
personnel to meet the peak work-load situations and special conditions or other remarks.
conditions with due regard to the
number of hours of shipboard duties and rest periods

that may be assigned to a seafarer; MEMORANDUM CIRCULAR 148
(b) The bridge watch shall consist of at least one (1) governs the minimum safe manning for domestic trade
officer and one (1) deck rating qualified to take
navigational watch, provided that they comply with the
requirements of Parts 3 and 3-1 Section AVHI/ 2 of the IV. GENERAL PROVISIONS
STCW 1978, as amended;
1. Philippine-registered ships shall be completely
(c) Except in ships of limited size, a three (3) watch manned by Filipino officers and ratings, except as
system shall be adopted; authorized by the Administration.
19

2. Masters, officers and ratings onboard Philippine-

registered ships shall be duly qualified, competent, 1 paramedic
certificated and medically fit in accordance with these
Rules and Regulations. 9.1. Such medical practitioner and paramedics shall
undergo an orientation/refresher course on public health
3. Philippine-registered ships shall have onboard an in relation to ship sanitation to be conducted by the
approved safe manning document indicating therein the health authority.
minimum safe manning complement and their
corresponding licenses and qualification requirements. 9.2. Such medical personnel named as Ship Health
Officer shall be responsible for ensuring at all times the
4. Masters, officers and ratings performing watchkeeping necessary standards of ships hygiene and cleanliness.
shall meet the certification requirements of STCW 1978,
as amended, and those not performing watchkeeping 9.3. During the voyage, the medical practitioner shall
duties shall undergo basic safety training. For high maintain health records/logbooks and supply any
speed craft, the crew shall undergo additional training in information required by the health authority as to health
accordance with IMO Resolution MSC 36(63), and other conditions on boardduring the voyage.
relevant MARINA Circulars.
9.4. The Master shall make known to the health
5. The highest officer on deck shall be of higher rank authority, immediately upon discovery, any case of
than the highest officer in the engine department, except illness which is communicable in nature or death on
in cases where the required engine power (Kw) is much board , in order to protect the interest of the other
greater and not in proportion to gross registered tonnage passengers and to facilitate the clearance of the ship
(GRT). (ex. Tugboats which are of big KW rating but are without endangering public health.
of small GRT).
10. Masters and first officers in the coastwise voyage
6. For vessels with a voyage duration time of less than (Category II) and bay and river voyage (Category III)
eight (8) hours, a minimum of two (2) officers shall be must be holders of Ship Radio Mobile Operators
employed. Certificate issued by theNational Telecommunications
Commission. Radio Officers shall hold the licenses for
7. Engine Output Rating shall be measured in KW the following:
instead of BHP (1KW=1.341 HP).
Class Tonnage Radio License
8. The total aggregate power rating of main propulsion
machineries shall be the basis for determining the A,B Class over 500 gt one Second
minimum manning requirements in the engine class
department.
C,D, E over 250 gt one Third Class
9. Ships shall have on board medical personnel in
relation to the number of passengers and the duration of over 1600 gt one Second
the voyage as shown below. Class
No. of Voyage Duration Medical over 500-1600 gt one Third Class
Passengers Personnel
Required
Vessel certified by a recognized classification society
and/or the National Telecommunication Commission as
500-2000 12 hrs. or less 1 paramedic to compliance with the GMDSS requirement may not
have a radio officer on board.
11. The Steward Department shall be adequately staffed

Over 12 hrs. 1 medical for the provision of food and other services to the crew
practitioner and passengers. All stewards and food handlers shall
comply with the basic safety training and health
Over 2000 12 hrs. or less 1 paramedic requirements and must be holders of valid Seafarers
Identification and Record Books (SIRBs).
Over 12 hrs. 1 medical
practitioner 12. For fishing vessels plying the international waters
with gross tonnage 500 and below, the Master shall be a
20

licensed 3rd Mate and/or a Major Patron. For other (c) The capability to operate and maintain effectively all
fishing vessels the provisions for coastwise voyage shall the watertight closing arrangements including ability to
apply to fishing vessels engaged in international voyage. mount an effective damage control party;
13. The 3rd Mate acting as Master of fishing vessel with (d) The capability to operate and when practicable,
gross tonnage over 500-1600 shall be with experience of maintain efficient, all fire equipment and life saving
not less than five (5) years as Master of a ship. appliances provided including the ability to muster and
disembark passengers and non-essential personnel;
14. The following Chief Engineer Officer for fishing
vessels engage in the domestic/international trade, shall (e) The capability to manage the safety functions of the
be as follows: ship when employed in a stationary or near-stationary
mode at sea;
a. For over 1200-2400 KW, the Chief Engineer shall be a
4th Marine Engineer with five (5) years experience as (f) The capability to maintain a safe engineering watch at
4th Marine Engineer. sea in accordance with the STCW Convention, 1978, as
amended and also to maintain general surveillance of
b. For over 2400 KW, the Chief Engineer shall be a 3rd spaces containing main propulsion and auxiliary
Marine Engineer with five (5) years experience as 3rd machinery;
Marine Engineer.
(g) The capability to operate the main propulsion and
15. Special manning applies only to fishing vessels auxiliary machinery and maintain it in a safe condition to
engaged in international voyage. enable the ship to overcome the foreseeable perils of the
voyage; and
16. For tanker vessels over 250-500 gross tonnage that
are on limited coastwise operation, the 3rd Mate can act (h) The capability to maintain the safety arrangements
as Master. and the cleanliness of machinery spaces to minimize the
risk of fire.
17. Officers and crew of high speed craft shall meet the
training requirements provided under relevant MARINA 2. In the application of the basic principles of safe
Circulars. There shall be an additional one (1) deck manning to ensure the safe operations of ships, the
rating for every one hundred (100) authorized passenger following guidelines are hereby adopted:
capacity.
(a) There should be sufficient numbers of qualified
18. For High Speed Craft, the manning requirement personnel to meet the peak workload situations and
described is limited to daytime navigation only. Nightime conditions with due regard to the number of hours
navigation shall be subject to additional manning shipboard duties and rest periods that may be assigned
requirement as approved by the Administration to a seafarer.
V. MINIMUM SAFE MANNING (b) The bridge watch shall consist of at least one officer
and one deck rating qualified to take navigational watch,
1. In adopting the Table of Minimum Safe Manning provided that they comply with the requirements of Part
herein prescribed, the Administration took cognizance of 3 and 3-1 Section A-VII/2 of the STCW 1978, as
the Principles of Safe Manning under IMO Resolution amended.
No. A.481
(c) Except in ships of limited size, a three watch system
(XII). Safe Manning under these Rules shall, therefore, shall be adopted.
mean that the crew shall include sufficient officers and
ratings with appropriate skills and experience to ensure (d) At each end of the ship there should be sufficient
that the following principles can be complied with: persons to enable them to accept and effectively secure
a tug and to send away tension and secure lines and
(a) The capability to maintain a safe bridge watch at sea backsprings. Any necessary operation should be
in accordance with the STCW Convention of 1978, as capable of being performed at bow and stern
amended; simultaneously.
(b) The capability to moor and unmoor a vessel (e) The engineering watch should consist of not less
effectively; than one duly qualified engineer and may include
appropriate engine-room ratings provided that they
21

comply with the requirements of Part 3 and 3-2, Section A. (1) seafarer completes his period of contractual
A-VIII/2 of the STCW 1978, as amended. service, (2) signs-off from the vessel, and (3)
arrives at the point of hire.
(f) In designating the number of personnel assigned to B. When seafarer arrives at the point of hire for any
engineering watches, account shall be taken of the
of the following reasons:
following:
(1) when he signs-off and is disembarked for
(i) the number, size (Kw) and type of the main propulsion medical reasons pursuant to Section 20
2
and auxiliary units over which surveillance is to be (B)(5) of this Contract
maintained and the number of machinery spaces (2) when he signs-off due to shipwreck, ships
containing these units; and sale, lay-up of vessel, discontinuance of
voyage or change of vessel principal in
(ii) adequacy of internal communication. 3
accordance with Sections 22, 23 and 26.
(g) Except in ships of limited propulsion power, a three (3) When he, in writing, voluntarily resigns and
watch system should be adopted; signs off prior to expiration of contract
pursuant to Section 19 (G) of this Contract
(h) There should be a sufficient number of designated (4) When he is discharged for just cause as
personnel available to ensure the cleanliness of provided for in Section 33.
4
machinery spaces;
3. The Administration shall issue a Certificate of

Inspection with vessels minimum safe manning
indicating the numbers and grades of the personnel
required to be carried, together with any special 2
Sec.20(B)(5):Uponsignoffoftheseafarerfromthevessel
conditions or other remarks.
formedicaltreatment,theemployershallbearthefullcostof
repatriation in the event the seafarer is declared (1) fit for
pp.550560(abdul) repatriation;or (2)fittoworkbuttheemployer isunable to
findemploymentfortheseafareronboardhisformervessel
C. SECURITY OF TENURE
oranothervesseloftheemployerdespiteearnestefforts.
3
Security of tenure Sections 22 and 23 are later discussed here. Meanwhile,
constitutionally protected Section26(ChangeofPrincipal)states:
for all workers in the Philippines A. Where there is change of principal of the vessel
necessitatingtheterminationofemploymentoftheseafarer
an employee cannot be dismissed without just or
before the date indicated in the Contract, the seafarer shall
lawful cause & without due process
be entitled to earned wages, repatriation at employers
expenseandonemonthbasicpayasterminationpay.
Dismissal
B.Ifbymutualagreement,theseafarercontinueshisservice
officers and crew of must be in accordance
onboardthesamevessel,such serviceshallbetreatedasa
merchant vessels with Labor Code
engaged in domestic provisions newcontract.Theseafarershallbeentitledtoearnedwages
trade or coastwise only.
shipping C. in case arrangements has been made for the seafarer to
officers and crew of must be in accordance join another vessel to complete his contract, the seafarer
foreign vessels with (1) applicable shallbeentitledtobasicwageuntilthedatejoiningtheother
involved in overseas laws on overseas vessel.
4
shipping employment, and (2) Most of the offenses punished in Sec. 30 are punishable by
regulations issued by dismissal. Some of them are not punished by dismissal with
1
POEA the first offense, but most of them are punishable by dismissal
with the second offense. This offenses where the punishment
Sec. 18 Termination of Employment of the POEA depends on the discretion of the master are the ones not in
Standard Employment Contract states employment is bold.
terminated when: 1. Smugglingorviolationof anyrules andregulations
ofthePhilippinesandofforeignPorts.
a. smugglinganytaxableitem
b. possession or use of prohibited drug,
1
PhilippineOverseasEmploymentAdministration narcoticsandothercontraband
22

c.
gunrunning or possession of explosives
and the like d. abetting or conniving with b.any other form of gambling which is not
otherstocommitsmuggling purelyrecreational
d. misdeclaration of or failing to declare 9. Violationofcompanypoliciesandregulations
articlesleadingtotheirseizureandfineto a. pilferageortheftofshipsstoreorcargo
vessel b. embezzlementofcompanyfunds
e. misdeclaration of or failing to declare c. unauthorized disposal of d. any act of
articles leading to their seizure but vessel dishonesty with intention to defraud the
notimplicated company
f. possessionofpornographic d. forgrossnegligenceandfailuretoobserve
g. any other violation which will not proper storage and cargo handling
implicatevessel procedures resulting in delay of vessels
h. anyotherviolationwhichwillthevessel and/ordamagetocargoes
2. Desertion e. failure to observe and comply with
a. desertingorattemptingtodesert regulation and non baggage shipment
b. advising, assisting or persuading another andacceptanceofparcelsonboard
todesert f. for failure to observe regulations on
3. Absencewithoutleave expirationofshoreliberty
a. abandoning post or duty without being g. for being left behind by vessel in foreign
propertyrelieved portwithoutjustifiablereason
b. leavingthevesselwithoutpermissionfrom h. for disorderly conduct and/or disrespect
responsibleofficersduringworkinghours towardspassengers
c. entrusting to others assigned duties i. for immorality so as to cast aspersion on
withoutauthorityofdepartmenthead thegoodnameofthevesselandcompany
d. leavingthevesselwithout j. forinflictingharmorinjurytoothers
4. Sleepingonpostwhileonduty 10. Incompetenceandinefficiency
5. Insubordination 11. For inciting mutiny, malicious destruction of ships
a. anyactofdisobediencetolawfulordersof propertyatanyactivitywhichhampertheefficient
asuperiorofficer operationofthevessel
b. attemptingtoassaultasuperiorofficer 12. Concertedactiontobreachapprovedcontracts
c. assaultingasuperiorofficer/otherpersons 13. Any activity which tends to destroy harmonious
on business with the ship without the use harmoniousofthecompany
ofdeadlyweapon 14. Grave abuse of authority a. grave abuse of
d. assaultingasuperiorofficer/otherpersons authority(withtheuseofdeadlyweapon)resulting
on business with the ship without the use in harm or injury to subordinate b. grave abuse of
ofdeadlyweapon authority (without the use of deadly weapon)
e. behaving with disrespect towards a resulting in harm or injury to subordinate c. any
superiorofficer othercaseofabuseauthority
f. insulting a superior officer by words or 15. Forgrossmisbehaviorprejudicialtogoodorderand
deed 16. Causing through neglect, damage loss, spoilage or
g. incitinganothertocommitinsubordination deteriorationofvesselsstocksandproperty
6. Drunkenness 17. Connivancewithorcuddlingofstowaway
a. drunk while on duty Dismissal and to pay 18. For willfully making false statement, reports,
cost1stOffense: certification or spurious seafarers documents for
b. creating trouble on board due to personal gain or with intent to mislead or defraud
intoxication thecompany
c. failure to perform assigned job due to 19. Any other case as to cast aspersion on the good
intoxication nameofthecompanyandvessel
7. Creatingtroubleoutsidethevesselspremises 20. Violation of safety and environmental
8. Gambling rules/regulations
a. whichresultsinfightingoranyincidentsas 21. Failure to observe the drug and alcohol policy of
to upset the harmonious relationship on thecompany
boardthevessel 22.
23

Sec. 19. Repatriation F. The seafarer, when discharged and repatriated

as directed by the employer/master/agency shall
A. If the vessel is outside the Philippines upon the be entitled to basic wages from date of signing
expiration of the contract, the seafarer shall off until arrival at the point of hire except when
continue his service on board until the vessels the discharge is in accordance with the above or
arrival at a convenient port and/or after arrival of for disciplinary reasons. If the seafarer delays or
the replacement crew provided that, in any case, desires a detour and/or another destination
the continuance of such service shall not exceed other than the most direct to the point of hire, all
three months. The seafarer shall be entitled to additional expenses shall be to the seafarers
earned wages and benefits as provided in his account. The seafarers basic wage shall be to
contract. the seafarers replacement.
B. If the vessel arrives at a convenient port before G. A seafarer who requests for early termination of
the expiration of the contract, the his contract shall be liable for his repatriation
master/employer may repatriate the seafarer cost as well as the transportation cost of his
from such port, provided the unserved portion of replacement. The employer may, in case of
his contract is not more than 1 month. The compassionate grounds, assume the
seafarer shall be entitled only to his earned transportation cost of the seafarers
wages and earned leave pay and to his basic replacement.
wages corresponding to the unserved portion of
the contract, unless within 60 days from Sec. 22. Termination Due To Shipwreck
disembarkation, the seafarer is rehired at the
same rate and position, in which case the Where the vessel is wrecked necessitating the
seafarer shall be entitled only to his earned termination of employment before the date indicated in
wages and earned leave pay. the contract, the seafarer shall be entitled to earned
wages, medical examination at employers expense to
C. If the vessel arrives at a convenient port within a determine his fitness to work, repatriation at employers
period of 3 months before the expiration of his cost and one month basic wage as termination pay.
contract, the master/employer may repatriate the
seafarer from such port provided that the Sec. 23. Termination Due To Vessel Sale, Lay-Up Or
seafarer shall be paid all his earned wages. In Discontinuance Of Voyage
addition, the seafarer shall also be paid his
leave pay for the entire contract period plus a Where the vessel is sold, laid up, or the voyage
termination pay equivalent to 1 month of his is discontinued necessitating the termination of
basic pay, provided however, that this mode of employment before the date indicated in the Contract,
termination may only be exercised by the the seafarer shall be entitled to earned wages,
master/employer if the original contract period of repatriation at employers cost and 1 month basic wage
the seafarer is at least 10 months; provided, as termination pay, unless arrangements have been
further, that the conditions for this mode of made for the seafarer to join another vessel belonging to
termination shall not apply to dismissal for the same principal to complete his contract which case
cause. the seafarer shall be entitled to basic wages until the
date of joining the other vessel.
D. The seafarer shall, if discharged at a port abroad
for any reason other than for discipline, be Sec. 24. Termination Due To Unseaworthiness
accommodated ashore and in cases where it is
not intended that he rejoin the vessel, shall be A. If the vessel is declared unseaworthy by a
repatriated to the Philippines via sea or air as classification society, port state or flag state, the
may otherwise be directed by the seafarer shall not be forced to sail with the
employer/master/agency. vessel.
E. When the seafarer is discharged for any just B. If the vessels unseaworthiness necessitates the
cause, the employer shall have the right to termination of employment before the date
recover the costs of his replacement and indicated in the Contract, the seafarer shall be
repatriation from the seafarers wages and other entitled to earned wages, repatriation at cost to
earnings. the employer and termination pay equivalent to
1 month basic wage.
24

Art. 631. The sailing mate shall be responsible for all the
D. CODE OF COMMERCE PROVISIONS damages caused to the vessel and cargo by reason of
his negligence or want of skill without prejudice to the
a. Sailing Mate criminal liability which may arise, if a felony or
misdemeanor has been committed.
Art. 626. In order to be a sailing mate it shall be
necessary:
1. To have the qualifications required by the b. Second Mate and Marine Engineer
marine or navigation laws or regulations.
2. Not to be disqualified in accordance therewith Art. 632. The following shall be the obligations of the
second mate:
for the discharge of his duties.
1. To watch over the preservation of the hull and
rigging of the vessel, and to take charge of the
Art. 627. The sailing mate, as the second chief of the
preservation of the tackle and equipment which make
vessel, and unless the agent orders otherwise, shall take
up her outfit, suggesting to the captain the repairs
the place of the captain in cases of absence, sickness,
necessary and the replacement of the goods and
or death, and shall then assume all his powers, duties,
implements which are rendered useless and are lost.
and responsibilities.
2. To take care that the cargo is well arranged,
keeping the vessel always ready for maneuver.
Art. 628. The sailing mate must provide himself with
charts of the seas in which he will navigate with the
3. To preserve order, discipline, and good service
astronomical tables and instruments for observation
among the crew, requesting the necessary orders
which are in use and which are necessary for the
and Instructions of the captain, and giving him prompt
discharge of his duties, being liable for the accidents
information of any occurrence in which the
which may arise by reason of his omission in this regard.
intervention of his authority may be necessary,
4. To assign to each seaman the work he is to do on

Art. 629. The sailing mate shall particularly and
board, in accordance with the instructions received,
personally keep a book, folioed and stamped on all its
and see that it is prompt and accurately carried out.
pages, denominated the "Binnacle Book," with a
memorandum at the beginning stating the number of
5. To take charge under inventory of the rigging and
folios it contains, signed by the competent authority, and
all the equipment of the vessel, if it should be laid up,
shall enter therein daily the distance and course
unless the ship agent has ordered otherwise.
traveled, the variations of the needle, the leeway, the
direction and force of the wind, the condition of the
With regard to engineers the following rules shall govern:
atmosphere and of the sea, the rigging set, the latitude
and longitude observed, the number of furnace heated,
1. In order to be taken on board as a marine engineer
the steam pressure, the number of revolutions, and
forming part of the complement of a merchant vessel
under the name of " incidents," the maneuvers made,
it shall be necessary to have the qualifications which
the meeting with other vessels, and all the details and
the laws and regulations require, and not to be
incidents which may occur during the voyage.
disqualified in accordance therewith for the discharge
of his duties. Engineers shall be considered as
officers of the vessel, but they shall have no authority
Art. 630. In order to change the course and to take the
o intervention except in matters referring to the motor
one most convenient for a good voyage of the vessel,
apparatus.
the sailing mate shall come to an agreement with the
captain. If the latter should object, the sailing mate shall
2. When there are two or more engineers on board a
state to him the proper observations in the presence of
vessel, one of them shall be the chief, and the other
the other officers of the sea. If the captain should still
engineers and all the personnel of the engines shall
insist on his negative decision, the sailing mate shall
be under his orders; he shall also have the charge of
make the proper protest, signed by him and by one other
the motor apparatus,the spare parts, the instruments
officer in the log book, and shall obey the captain, who
and tools pertaining thereto, the fuel, the lubricating
alone shall be responsible for the consequences of his
material and, finally, whatever is entrusted to an
decision.
engineer on board a vessel.
25

3. He shall keep the engines and boilers in good residing in the country, the number thereof not to exceed
condition and in a state of cleanliness, and shall one-fifth of the crew. If in foreign ports the captain should
order what may be proper in order that they may not find a sufficient number of Filipino seamans, he may
always be ready to wirk with regularity, being liable complete the crew with foreigners, with the consent of
for the accidents or damages which his negligence or the consul or marine authorities.
want of skill may cause to the motor apparatus, or to
the vessel and to the cargo, without prejudice to the The agreements which the captain may make with the
criminal liability which may be proper if there has members of the crew and others who go to make up the
been a felony or misdemeanor., complement of the vessel, to which reference is made in
article 612, must be reduced to writing in the account
4. He shall make not make any change in the motor book without the intervention of a notary or clerk of court,
apparatus, or proceed to repair the averages he may signed by the parties thereto, and visaed by the marine
have noticed in the same, or change the normal authority if they be executed in Philippine territory, or by
speed of its movement without the prior authorization the consuls or consular agents of Philippines if executed
of the captain, to whom, if he should object to their abroad, stating therein all the obligations which each one
being made, he shall state the proper observations in contracts and all the rights he acquires, said authorities
the presence of the other engineers or officers; and if, taking care that these obligations and rights are
notwithstanding this, the captain should insist in his recorded in a clear and definite manner which give no
objection, the chief engineer shall make the proper room for doubts or claims.
protest, entering the same in the engine book, and
shall obey the captain, who, alone shall be The captain shall take care to read to them the articles of
responsible for the consequences of his decision. this Code which concern them, stating in the said
document that they were read.
5. He shall inform the captain of any average which
may occur to the motor apparatus, and shall advise If the book contains the requisites prescribed in article
whenever it may be necessary to stop the engines for 612, and there should not appear any signs of
some time, or when any other incident occurs in his alterations in its clauses, it shall be admitted as evidence
department of which the captain should be in questions which may arise between the captain and
immediately informed, besides frequently advising the crew with respect to the agreements contained
him of the consumption of fuel and lubricating therein and the amounts paid on account of the same.
material.
Every member of the crew may demand of the captain a
6. He shall keep a book or registry called the "Engine copy, signed by the latter, of the agreement and of the
Book," in which there shall be entered all the data liquidation of his wages, as they appear in the book.
referring to the work of the engines, such as, for
example, the number of furnaces heated, the vacuum
in the condenser, the temperature, the degree of Art. 635. A seaman who has been contracted to serve
saturation of the water in the boilers, the consumption on a vessel may not rescind his contract or fail to comply
of fuel and lubricating material, and under the therewith except by reason of a legitimate impediment
heading of "noteworthy occurrences" the averages which may have happened to him.
and maladjustments which occur in the engines and
boilers, the causes thereof, and the means employed Neither may he transfer from the service of one vessel to
to repair the same, likewise, the force and direction of another without obtaining the written permission of the
the wind, the rigging set, and the speed of the vessel captain of the vessel on which he may be.
shall be stated, taking the information from the
Binnacle Book. If, without obtaining said permission, the seaman who
has signed for one vessel should sign for another one,
c. Crew. the second contract shall be void, and the captain may
choose between forcing him to fulfill the service to which
Art. 633. The second mate shall take command of the he first bound himself, or at his expense look for a
vessel in case of the inability or disqualification of the person to substitute him.
captain and sailing mate, assuming in such case their
powers and responsibility. Furthermore, he shall lose the wages earned on his first
contract, to the benefit of the vessel for which he had
signed.
Art. 634. The captain may make up his crew with such
number of men as he may consider proper, and in the A captain who, knowing that a seaman is in the service
absence of Filipino seamans he may take on foreigners of another vessel, should have made a new agreement
26

with him, without having requested of him permission the vessel for the same reason given a destination
referred to in the preceding paragraphs, shall be different than that fixed in the agreement with the crew,
subsidiarily liable responsible to the captain of the vessel the latter shall be indemnified on account of the
to which the seaman first belonged for that part of the rescission of the contract according to the cases, as
indemnity, referred to in the third paragraph of this follows:
article, which the seaman may not be able to pay.
1. If the revocation of the voyage should be decided
upon before the departure of the vessel from the port,
Art. 636. If there is no fixed period for which a seaman each sailor engaged shall be given one mouth's
has been contracted, he may not be discharged until the salary, besides what may be due him, in accordance
end of the end of the return voyage to the port where he with his contract, for the services rendered to the
enlisted. vessel up to the date of the revocation.
2. If the agreement should have been for a fixed

Art. 637. Neither may the captain discharge a seaman amount for the whole voyage, there shall be
during the time of his contract except for just cause, the graduated what may be due for. said month and
following being considered as such: days, shall be determined in the same in proportion
to the approximate number of days the voyage
1. The perpetration of a crime which disturbs order on should have lasted, in the judgment of experts, in the
the vessel. manner established in the law of Civil Procedure; and
if the proposed voyage should be of such short
2. Repeated insubordination, want of discipline or duration that it is calculated at approximately one
non-fulfillment of the service. month more or less, the indemnity shall be fixed for
fifteen days, discounting in all cases the sums
3. Repeated incapacity and negligence in the advanced.
fulfillment of the service he should render.
3. If the revocation should take place after the vessel
4. Habitual drunkenness. has put to sea, the seamen engaged for a fixed
amount for the voyage shall receive the salary which
5. Any occurrence which incapacitates the seaman to may have been offered them in full as if the voyage
perform the work entrusted to him, with the exception had been terminated; and those engaged by the
of the provisions provided in Art. 644. month shall receive the amount corresponding to the
time they might have been on board and the time
6. Desertion. they may require to arrive at the port of destination,
the captain being obliged, furthermore, to pay said
The captain may, however, before setting out on a seamen in both cases, the passage to the said port
voyage and without giving any reason, refuse to permit a or to the port of sailing of the vessel, as may be
seaman whom he may have engaged to go on board, convenient for them.
and leave him on land, in which case he will be obliged
to pay him his wages as if he had rendered services. 4. If the ship agent or the charterers of the vessel
should give it a destination different from that fixed in
This indemnity shall be paid from the funds of the vessel the agreement, and the members of the crew should
if the captain should have acted for reasons of prudence not agree thereto, they shall be given by way of
and in the interest of the safety and good service of the indemnity half the amount fixed in case No. 1,
former. Should this not be the case, it shall be paid by besides what may be owed them for the part of the
the captain personally. monthly wages corresponding to the days which have
elapsed from the date of their agreements.
After the voyage has begun, during the same, and until
the conclusion thereof, the captain may not abandon any
member of his crew on land or on sea, unless, by reason If they accept the change, and the voyage, on account of
of some crime, his imprisonment and delivery to the the greater distance or for other reasons, should give
competent authority in the first port touched should be rise to an increase of wages, the latter shall be privately
proper, a matter obligatory for the captain. regulated, or through amicable arbitrators in case of
disagreement. Even though the voyage may be
shortened to a nearer point, this shall not give rise to a
Art. 638. If, after the crew has been engaged, the reduction in the wages agreed upon.
voyage is revoked by the will of the ship agent or of the
charterers before or after the vessel has put to sea or if
27

If the revocation or change of the voyage should come revocation, delay, or greater extension of the voyage, to
from the shippers or charterers, the agent shall have a anything but the proportionate part of the indemnity paid
right to demand of them the indemnity which may be into the common funds of the vessel by the persons
justly due. liable for said occurrences.
Art. 639. If the revocation of the voyage should arise Art. 643. If the vessel and her freight should be totally
from a just cause independent of the will of the ship lost, by reason of capture or wreck, all rights shall be
agent and charterers, and the vessel should not have left extinguished, both as regards the ship agent to recover
the port, the members of the crew shall have no other the advances made.
right than to collect the wages earned up to the day on
which the revocation took place. If a portion of the vessel or of the cargo, or of both,
should be saved, the crew engaged on wages, including
the captain, shall retain their rights on the salvage, so far
Art. 640. The following shall be sufficient reasons for the as they go, on the remainder of the vessel as well as on
revocation of the voyage: the amount of the freightage of the cargo saved; but
1. A declaration of war or interdiction of commerce ailorss who are engaged on shares shall not have any
with the power to whose territory the vessel was right whatsoever on the salvage of the hull, but only on
bound. the portion of the freight saved. [If they should have
2. The blockade of the port of destination or the worked to recover the remainder of the shipwrecked
breaking out of an epidemic after the agreement. vessel, they shall be given from the amount of the
3. The prohibition to receive in said port the goods salvage an award in proportion of the efforts made and
which make up the cargo of the vessel. to the risks encountered in order to accomplish the
4. The detention or embargo of the same by order of salvage.]
the Government, or for any other reason independent
of the will of the ship agent.
5. The inability of the vessel to navigate. Art. 644. A seaman who falls sick shall not lose his right
to wages during the voyage, unless the sickness is the
Art. 641. If, after a voyage has been begun, any of the result of his own fault. At any rate, the costs of the
first three causes mentioned in the foregoing article attendance and cure shall be defrayed from the common
should occur, the sailors shall be paid at the port which funds, in the form of a loan.
the captain may deem advisable to make for the benefit
of the vessel and cargo, according to the time they may If the sickness should come from an injury received in
have served thereon; but if the vessel is to continue the the service or defense of the vessel the seaman shall be
voyage, the captain and the crew may mutually demand attended and cured at the expense of the common
the enforcement of the contract. funds, deducting before anything else, from the
proceeds of the freightage of the cost of the attendance
In case of the occurrence of the fourth cause, the crew and cure.
shall continue to be paid half wages, if the agreement is
by month; but if the detention should exceed three
months, the contract shall be rescinded and the crew Art. 645. If a seaman should die during the voyage his
shall be paid what they should have earned, according heirs shall be given the wages earned and not received
to the contract if the voyage had been concluded. And if according to his contract and the cause of his death,
the agreement should be for a fixed sum for the voyage, namely:
the contract must be complied within the terms agreed
upon. If he died a natural death and was engaged on wages,
that which may have been earned up to the date of his
In the fifth case, the crew shall have no toher right than death shall be paid.
to collect the wages earned; but if the disability of the
vessel should have been caused by the negligence or If the contract was for a fixed sum for the whole voyage,
lack of skill of the captain, engineer, or sailing mate, they half the amount earned shall be paid if the seaman died
shall indemnify the crew for the damages suffered, on the voyage out, and the whole amount if he died on
always without prejudice to the criminal liability which the return voyage.
may be proper.
And if the contract was on shares and the death
occurred after the voyage was begun, and his heirs shall
Art. 642. If the crew has been engaged to work on be paid the entire portion due the seaman; but if the
shares they shall not be entitled, by reason of the
28

latter died before the departure of the vessel from the required for the accounting book of the captain, and shall
port, the heirs shall not be entitled to claim anything. respect the latter in his capacity as chief of the vessel.
If the death occurred in the defense of the vessel, the The powers and responsibilities of the captain shall
seaman shall be considered as living, and his heirs shall cease, when there is a supercargo, with regard to that
be paid, at the end of the voyage, the full amount of part of the administration legitimately conferred upon the
wages or the integral part of the profits which may be latter, but shall continue in force for all acts which are
due him as to the others of his class. inseparable from his authority and office.
In the same manner, the seaman captured while Art. 650, All the provisions contained in the second
defending the vessel, shall be considered present so as section of Title III, Book II, with regard to capacity,
to enjoy the same benefits as the rest; but should he manner of making contracts, and liabilities of factors,
have been captured on account of carelessness or other shall be applicable to supercargoes.
accident not related to the service, he shall only receive
the wages due up to the day of his capture. Art. 651. Supercargoes may not, without special
authorization or agreement, make any transaction for
their own account during the voyage, with the exception
Art. 646. The vessel with her engines, rigging, of the ventures which, in accordance with the custom of
equipment, and freightage shall be liable for the wages the port of destination, they are permitted to do.
earned by the crew engaged per month or for the trip,
the liquidation and payment to take place between one Neither shall they be permitted to invest in the return trip
voyage and the other. more than the profits from the ventures, unless there is
an express authorization from the principals.
After a new voyage has been undertaken, credits such
kind shall lose their right of preference.

Art. 647. The officers and the crew of the vessel shall be
free from all obligations if they deem it proper, in the
following cases:

1. If, before the beginning of the voyage, the captain
attempts to change it, or a naval war with the power
to which the vessel was destined occurs.

2. If a disease should break out and be officially
declared an epidemic in the port of destination.

3. If the vessel should change owner or captain.

Art. 648. By the complement of a vessel shall be
understood all the persons on board, from the captain to
the cabin boy, necessary for the management,

maneuvers, and service, and therefore, the complement
shall include the crew, sailing mates, engineers, stokers,
and other employees on board not having a specific
name; but it shall not include the passengers or the
persons the vessel is only transporting.

IV. SUPERCARGOES.

Art. 649, Supercargoes shall discharge on board the
vessel the administrative duties which the ship agent or
the shippers may have assigned to them; they shall keep
an account and record of their transactions in a book
which shall have the same conditions and requisites as

29

CHAPTER 9
TABLE OF CONTENTS
Chapter 9
Charter Parties
I. Definitions & Concept
II. Different Kinds of Charter Parties

A. Bareboat Charter
B. Contract of Affreightment
III. Effect of Charter on Character of Carrier
IV. Persons Who May Make Charter
V. Requisites
VI. Freight
VII. Demurrage & Deadfreight

A. Computation of Lay Days
VIII. Rights & Obligations

A. Shipowner or Captain
B. Charterer
IX. Effect of Bill of Lading
X. Code of Commerce Provisions
Cases:
O Farrel y Cia v. Manila Electric Co.
Caltex (Phils.) v. Sulpicio Lines, Inc.
30

pp.561570(lori) A. BAREBOAT CHARTER
CHAPTER 9 - the shipowner leases to the charterer the whole

CHARTER PARTIES vessel transferring to the latter the entire
command, possession & consequent control
over the vessels navigation, including the
I. DEFINITION & CONCEPT master & the crew, who thereby become the
charterers servants
Charter party - As the shipowner is not normally required to
- a contract whereby an entire ship, or some provide for a crew, the charterer gains
principal part of said ship, is let by the owner possession of the vessel bare
thereof to a merchant or other person for a - The charterer becomes the owner pro hac vice
specified time or use for the conveyance of of the vessel since he mans the vessel w/ his
goods, in consideration of the payment of freight own set of master & crew, effectively becoming
(Caltex Phil., Inc. v. Sulpicio Lines, Inc. etc.) the owner for the voyage or service stipulated,
subject however to any liability for damages
- from carta partita or divided document arising from negligence
- Carta partita refers to the ancient practice of
writing out the terms & conditions of the contract - The bareboat charterer assumes, to a large
in duplicate on 1 piece of parchment & then extent, the customary rights & liabilities of the
rd
dividing it down the middle thus providing each shipowner in relation to 3 persons who may
party w/ a copy have dealt w/ him or w/ the vessel
- In this latter instance, the master of the vessel is
- The charter contract is often referred to as a the agent of the charterer, & not of the
form of mercantile lease for it involves a shipowner, & therefore, it is the charterer or
charterer, who is most often a merchant himself, owner pro hac vice, & not the general owner of
who desires to lease a ship or vessel owned by the vessel, who is liable for the expenses of the
another for the transport of his goods for voyage including the wages of the seamen
commercial purposes
- The charter may also involve the transportation B. CONTRACT OF AFFREIGHTMENT
of persons from one port to another. The parties
thereto are therefore the charterer, or charter Time charter
party, & the shipowner - the vessel is leased to the charterer for a fixed
period of time
- The contract arose from the fact that in the
earliest days of commerce, not too many Voyage charter
merchants owned ships or vessels - the vessel is leased for a single or particular
- The charterers, w/ less cost but w/ convenience, voyage
simply leased ships from the shipowners for the
conveyance of their goods from 1 point of - In both, the charterer hires the vessel only,
destination to another, or of their own persons ir either for a determinate period of time or for a
order to transact commerce in far-away places single or consecutive voyage, w/ the shipowner
providing for the provisions of the ship, the
- The situation in the earliest days is still wages of the master & the crew, & the expenses
prevailing today for the maintenance of the vessel
- Hence, the MARINA allows the registration of
merchant vessels under certain conditions even III. EFFECT OF CHARTER ON CHARACTER
if they are only on a bareboat charter OF CARRIER
- Generally, the character of the common carrier

II. DIFFERENT KINDS OF CHARTER as such is not affected by the charter party if the
PARTIES same is a contract of affreightment
- Consequently, the rights & responsibilities of
1) The Bareboat or Demise Charter ownership still rested on the owner, & the
rd
2) Contract of Affreightment charterer is free from any liability to 3 persons
a. Time Charter in respect of the vessel
b. Voyage Charter
31

- Where the parties in the charter entered into a instructions of the agent or owner. The agent or
time charter-party, the common carrier remained owner shall have a right to recover damages
a common carrier against the erring captain or master
- It is only when the charter includes both the
vessel & its crew, as in a bareboat or demise
that a common carrier becomes private V. REQUISITES OF A VALID CHARTER
- A shipowner in a time or voyage charter retains PARTY
possession & control of the ship, although her
holds may, for the moment, be the property of - As the charter party is a contract, it is therefore
the charterer to be governed by the general principles
governing ordinary contracts
- The parties are free to stipulate upon such terms
IV. PERSONS WHO MAY MAKE CHARTER & conditions that would suit their purposes,
subject to the caveat that these should not be
- The owner or owners of the vessel, either in contrary to law or public policy
whole or in majority part, who have legal control
& possession of the vessel, may validly enter Requisites
into charter parties w/ a charterer 1) consent of the contracting parties;
- A third person called a broker may, however, 2) an existing vessel w/c should be placed at the
intervene in the execution of the charter disposition of the shipper;
between the principals 3) the freight; &
4) compliance w/ the requirements of Art. 652 of
- The charterer, by himself, may subcharter the the Code of Commerce
rd
entire vessel to a 3 person but only in the event
that there is no prohibition in the original charter Art. 652
regarding any subcharter A charter party must be drawn in duplicate & signed by
- The subcharter, where entered into, is an the contracting parties, & when either does not know
independent contract by itself involving only the how or is not able to do so, by 2 witnesses at his
charterer & the subcharterer & therefore does request.
not give rise to any contractual relation between
the general owner & the subcharterer The charter party shall contain, besides the conditions
freely stipulated, the following circumstances:
- Part owners of the vessel are not precluded
from chartering the same for their own 1. The kind, name, tonnage of the vessel.
commercial purposes 2. Her flag & port of registry.
- They enjoy preference in the charter of the 3. The name, surname, & domicile of the captain.
vessel over other persons who offer equal 4. The name, surname, & domicile of the ship
conditions & freight agent, if the latter should make the charter party.
5. The name, surname, & domicile of the charterer,
- The ship agent is not allowed to make contracts & if he states that he is acting by commission,
for a new charter unless he is properly or duly that of the person for whose account he makes
authorized by the owner, or by virtue of an the contract.
authority given by a resolution of the majority of 6. The port of loading & unloading.
the co-owners 7. The capacity, number of tons or weight, or
- He may make such charter if the same has been measurement w/c they respectively bind
extended to him in his certificate of appointment themselves to load & transport, or whether the
charter party is total.
- It is one of the inherent powers of the captain or 8. The freight to be paid, stating whether it is to be
master of the vessel to enter into valid & a fixed amount for the voyage or so much per
binding charter parties, but only in the event of month, or for the space to be occupied, or for
absence of the ship agent or consignee, & only if the weight or measurement of the goods making
the said captain or master acts in accordance w/ up the cargo, or in any other manner whatsoever
the instructions of the agent or owner & protects agreed upon.
the latters interests 9. The amount of primage to be paid the captain.
10. The days agreed upon for loading & unloading.
- The validity of the charter is not affected by the 11. The lay days & extra lay days to be allowed &
circumstance that the captain or master who the demurrage for each of them to be paid.
executed the charter violated the orders or
32

Primage unless there is an agreement to the contrary (Art

- payment for the use of the equipment belonging 661)
to the captain
- In a case, the failure of the captain or master to
Art. 654, Code of Commerce carry the goods on his ship or to send them to
- Where the charter is executed w/ the the point of destination in another vessel
intervention of a broker who certifies to the resulted in the abandonment upon any claim for
authenticity of the signatures of the parties as freight thereon, except where it has been made
having been signed in his presence, the charter payable in advance
contract would constitute full evidence in court.
In case of discrepancy between the copy of the
broker & the parties, that of the brokers would VII. DEMURRAGE & DEADFREIGHT
prevail if the same should have been kept in
accordance w/ law. However, even though no - The time for loading & unloading shall be
broker intervened in its execution, the charter provided for in the Charter Party. The period so
shall nonetheless be admitted as evidence in stipulated is what is know as the lay days (Art.
court if the parties thereto duly acknowledged 652, par 10)
the signatures therein to be their own.
Demurrage
- a sum of money due by express contract for the
VI. FREIGHT detention of the vessel in loading or unloading,
beyond the time allowed for that purpose in the
- The parties themselves may fix the manner of charter party
form in w/c the charter price or money shall be
satisfied - On the other hand, where the charterer failed to
- In most cases, the compensation to be paid for occupy the leased portion of the vessel, he may
the utilization of the vessel by the charterer thereby be made liable by the shipowner for the
would consist in a fixed sum of money, deadfreight that occurred
particularly if the charter involves a contract of
affreightment in w/c case, the charter price or A. COMPUTATION OF LAY DAYS
money would be governed by the principles
relative to freight - Unless the contrary intention appears in the
charter party, the stipulated lay days do not
Rules w/ respect to freight begin to run against the consignee until the
- It shall accrue accdg to the conditions stipulated vessel has arrived at berth or other usual &
in the contract customary place for loading or unloading, & is in
- If there should be no stipulation or there is but actual readiness to discharge its cargo in
the same is ambiguous, the rules shall be that: accordance w/ its legal obligation
1) the freight shall begin to run from the
day of loading on the vessel; - If no lay days is provided for in the Charter
2) in charters w/ a fixed period, the freight Party, it is understood that the charterer will
shall begin upon that very day; & unload & discharge the cargoes w/in a
3) if the freight is charged accdg to weight, reasonable time or w/ reasonable diligence
the payment thereof shall be made
accdg to the gross weight, including the
weight of the containers (Art. 659, Code VIII. RIGHTS & OBLIGATIONS OF THE
of Commerce) CHARTER PARTIES
- Where the goods were jettisoned for the A. SHIPOWNER OR CAPTAIN

common safety, freightage shall not accrue
thereon, although the same will be regarded as - Apart from those accruing from the stipulation of
a general average (Art. 660) the parties, the statutory rights & obligations of
the charter parties are to be found in the Code of
- If the goods were lost on account of shipwreck Commerce
or stranding, or due to seizure by pirates or
enemies, no freight will accrue thereby 1) The shipowner is bound to observe, relative to
- However, if the freight should have been paid in the charter party, the capacity of the vessel or
advance, then the same should be returned that w/c is indicated expressly in the registry, a
33

margin greater than 2% between that B. CHARTERER

represented & her actual capacity w/c is not
allowable. 1) The charterer shall have the right to subcharter
the vessel to a third person only if he is so
2) Generally, any loss incurred by a shipper whose authorized by the shipowner. Otherwise, he
cargo is refused on account of the receipt by the shall be liable to the shipowner for any damage
shipowner of a greater amount of cargo caused to the latter by virtue of the subcharter.
belonging to other persons shall be for the
account of the shipowner in the form of 2) A charterer who loads goods different from that
indemnity. If there is only 1 shipper & there was contracted upon, w/o the knowledge of the
apparent fraud or error in the vessels capacity, shipowner or captain, & w/c results to damage
the charterer may opt to have the freight due to confiscation, embargo, detention, & other
reduced if he does not choose to rescind the causes, to the said shipowner, shall be liable to
charter, w/ a further right to be indemnified indemnify the parties injured thereby.
therefor.
3) Should illicit cargo be shipped by the charterer in
3) If there should be several charter parties, & due the chartered vessel w/ the knowledge of the
to lack of space, not all could be accommodated shipowner or of the captain, said charterer shall
although not one would want to rescind the be jointly liable w/ the shipowner for all damages
charter, preference shall be given to the person caused to the other shippers.
who is first in loading his cargo, & the others
shall have preference in the order of the dates of 4) The charterers & shippers may not, for the
their charter. In the absence of priority, the payment of freight & other expenses incurred,
charterers may choose to load in proportion to abandon the goods damaged due to inherent
the amounts of weight or space that they may defects or by reason of fortuitous event.
have contracted, w/ a right to be indemnified for Abandonment may be proper however if the
the loss. cargo, if consisting of liquid, may have leaked
out & none remains except of their contents.
4) The shipowner, under certain conditions, may
effect a substitution in respect of the vessel w/c IX. EFFECT OF BILL OF LADING
had been initially chartered w/ that of another, so
long as the substitute vessel had been duly - If a bill of lading was issued by the shipowner to
inspected & is seaworthy. the charterer, the charter party still governs their
rights & the bill of lading may be used as proof
5) Furthermore, after 3/5 of the vessel is loaded, of receipt of the goods
the shipowner may not substitute the chartered
vessel w/ another one unless he procures the - However, while the bill of lading does not
consent of the charterers or shippers. operate as a new contract or modify the charter
Otherwise, he runs the risk of answering for all party as between the shipowner & the charterer,
damages suffered during the voyage by those the bill of lading does constitute a contract
who did not give their consent. between the vessel & the consignee, & neither
he nor his endorsee is bound by the terms of the
6) The captain may not, if the vessel has been charter party of w/c he has no notice or
chartered in whole, accept cargo from any other knowledge.
person unless the consent of the charterer is
obtained. Otherwise, the captain may be pp.570580(leah)
compelled by the charterer to unload the said
cargo & pay to the charterer any damage that he X. CODE OF COMMERCE PROVISIONS
may suffer on account thereof.
PART I
7) The shipowner may also be generally held liable FORMS AND EFFECTS OF CHARTER PARTIES
for damages incurred by the charterer due to the
voluntary delay of the captain in putting to sea,
provided he was requested, by way of a notarial ART 652. A charter party must be drawn in
or judicial notice, to put to sea at the proper duplicate and signed by the contracting parties, and
time. when either does not know how or is not able to do
so, by two witnesses at his request.
34

The charter party shall contain, besides the If no broker has intervened in the charter
conditions freely stipulated, the following party and the signatures are not acknowledged,
circumstances: doubts shall be decided by what is provided for in
the bill of lading and in the absence thereof, by the
The kind, name and tonnage of the vessel proofs submitted by the parties.
Its flag and port of registry
The name, surname and domicile of the ART 655. Charter parties executed by the
captain captain in the absence of the ship agent shall be
The name, surname and domicile of the ship valid and effective, even though in executing them
agent, if the latter should make the charter he should have acted in violation of the orders and
party instructions of the ship agent or shipowner; but the
The name, surname and domicile of the latter shall have a right of action against the captain
charterer; and if he states that he is acting by for indemnification of damages.
commission that of the person for whose
account he make the contract ART 656. If in the charter party the time in
The port of loading and unloading which the loading and unloading are to take place is
The capacity, number of tons or the weight not stated, the usages of the port where these acts
or measurement which their respectively take place shall be observed. After the stipulated or
bind themselves to load and to transport, or to the customary period has passed, and there is no
whether the charter party is total express proviso in the charter party fixing the
The freightage to be paid, stating whether it indemnity for the delay, the captain shall be entitled
is to be a fixed amount for the voyage or so to demand demurrage for the lay days and extra lay
much per month, or for the space to be days which may have elapsed in loading and
occupied, or for the weight or measure of the unloading.
goods of which the cargo consists, or in any
other manner whatsoever agreed upon. ART 657. If during the voyage the vessel
The amount of primage to be paid to the should be rendered unseaworthy, the captain shall
captain. be obliged to charter at his expense another one in
The days agreed upon for loading and good condition to receive the cargo and carry it to
unloading its destination, for which purpose he shall be
The lay days and extra lay days to be allowed obliged to look for a vessel not only at the port of
and the demurrage to be paid for each of arrival but also in the neighborhood within distance
them. of 150 kilometers.
ART 653. If the cargo should be received without the If the captain, through indolence or malice,
charter party having been signed, the contract shall should not furnish a vessel to its destination, the
be understood as executed in accordance with what shippers, after requiring the captain to charter a
appears in the bill of lading, the sole evidence of title vessel within an inextendible period, may charter
with regard to the cargo for determining the rights one and petition the judicial authority to summarily
and obligations of the ship agent, of the captain and approve the charter party which they may have
of the charterer. made.
The same authority shall judicially (por la

ART 654. The charter parties executed with the via de appremio) compel the captain, to carry out,
intervention of a broker, who certifies to the for his account and under his responsibility, the
authenticity of the signatures of the contracting charter made by shippers.
parties because they were signed in his presence,
shall be full evidence in court and if they should be If the captain, notwithstanding his diligence,
conflicting, that which accords with one which the should not find a vessel for the charter, he shall
broker must keep in his registry, if kept in deposit the cargo at the disposal of shippers, to
accordance with law, shall govern. whom he shall communicate the facts on the first
opportunity which presents itself, the freight being
The contracts shall also be admitted as adjusted in such cases by the distance covered by
evidence, even though a broker has not taken part the vessels with no right to any indemnification
therein, if the contracting parties acknowledge the whatsoever.
signatures to be the same as their own.
ART 658. The freightage shall accrue
according to the conditions stipulated in the
35

contract, and should they not be expressed, or ART 663. Merchandise which suffer deterioration
should they be ambiguous, the following rules shall or diminutions on account of inherent defects or bad
be observed: quality and condition of the packing, or because of
If the vessel has been chartered by months fortuitous event, shall pay freightage in full and as
or by days, the freightage shall begin to run stipulated in the charter party.
from the day the loading of the vessel begun.
In charters made for a fixed period, the ART 664. The natural increase in weight or size
freightage shall begin to run from that very of the merchandise loaded on the vessel shall
day. accrue to the benefit of the owner, and shall pay the
If the freightage is charged according to proper freightage fixed in the contract for the same.
weight, the payment shall be made according
to gross weight, including the containers, ART 665. The cargo shall be specially liable for
such as barrels or any other objects in which the payment of the freightage, expenses and duties
the cargo is contained. arising there from, which must be reimbursed by the
shippers as well as for the part of the general
ART 659. The merchandise sold by the captain to average which may correspond to it; but it shall not
pay for the necessary repairs to the hull, machinery be legal for the captain to delay unloading on
or equipment, or for unavoidable and urgent needs, account of suspicion that this obligation may not be
shall pay freightage. complied with.
The price of this merchandise shall be fixed Should there be reasons for distrust, the judge
according to the result of the voyage, namely: or court, at the instance of the captain, may order
the deposit of the merchandise until he has been
If the vessel should arrive safely at the port paid in full.
of destination, the captain shall pay the price
which the sale of merchandise of the same ART 666. The captain may request the sale of the
kind brings at the port. cargo to the amount necessary to pay the freightage,
If the vessel should be lost, the captain shall expenses and averages due him, reserving the right
pay the price realized from said merchandise to demand the balance due him therefore if the
in the sale. proceeds of the sale should not suffice to cover his
credit.
The same rule shall be observed in the payment
of the freightage, which shall be in full if the vessel ART 667. The goods loaded shall be liable in the
arrives at her destination and in proportion to the first place for the freight and expenses thereof
distance covered if she should be lost before arrival. during twenty days, to be counted from the date of
their delivery or deposit. During this period, the sale
ART 660. Merchandise jettisoned for the of the same may be requested, even though there be
common safety shall not pay freightage; but the other creditors and the bankruptcy of the shipper or
amount of the latter shall be considered as the consignee should occur.
general average computing the same in proportion This right may not be made use of, however, on
to the distance covered when they were jettisoned. the goods which, after being delivered, were turned
over to a third person without malice on the part of
ART 661. Neither merchandise lost by reason of the latter and for a valuable consideration.
shipwreck or stranding nor those seized by the
pirates or enemies, shall pay freightage. ART 668. If the consignee should not be
If the freightage should have been paid in found or should refuse to receive the cargo, the
advance, it shall not be returned, unless there is an judge or court, at the instance of the captain, shall
agreement to the contrary. order its deposit and the sale of what may be
ART 662. If the vessel or the merchandise necessary to pay the freightage and other expenses
should be redeemed, or the effects of the shipwreck on the same.
be salvaged, the freightage corresponding to the
distance covered by the vessel transporting the The sale shall likewise be allowed when the
cargo shall be paid; and should the vessel, after goods deposited run the risk of deteriorating, or by
being repaired, transport said merchandise to the reason of their condition or other circumstances the
port of destination, the full freightage shall be paid, expenses of preservation and custody should be
without prejudice to what may be due by reason of disproportionate.
the average.
36

PART 2
RIGHTS AND OBLIGATIONS OF SHIPOWNERS If the owner or part of the freight already loaded
should procure some more at the same price and
ART 669. The shipowner or the captain shall under similar or proportionate conditions to those
observe in charter parties the capacity of the vessel accepted for the freight received, the person from
or that expressly designated in its registry, a whom the vessel is chartered or the captain cannot
difference greater than 2 per cent between that refuse to accept the rest of the cargo; and should he
stated and her true capacity not being permissible. do so, the shipper shall have a right to demand that
the vessel put to sea with the cargo which it may
If the shipowner or the captain should contract have on board.
to carry a greater amount of cargo than the vessel
can carry in view of her tonnage, they shall ART 671. After three-fifths of the vessel have
indemnify the shippers whose contract they do not been loaded, the person from whom he is chartered
fulfill for the losses they may have caused when by may not, without the consent of the charterers or
reason of their default, according to the following shippers, substitute the vessel designated in the
cases, viz: charter party by another one, under the penalty of
making himself thereby liable for al losses and
If the vessel has been chartered by one shipper damages occurring during the voyage to the cargo
only, and there should appear to be an error or fraud of those who did not consent to the change.
in her capacity, and the charterer should not wish to
rescind the contract, when he has the right to do so, ART 672. If the vessel has been chartered in
the freightage shall be reduced in proportion to the whole, the captain may not , without the consent of
cargo which the vessel cannot receive, the person the charterer, accept cargo from any other person;
from whom the vessel is chartered being and should he do so, said charterer may oblige him
furthermore obliged to indemnify the charterer for to unload it and to indemnify him for the losses
the losses he may have caused him. suffered thereby.
If, on the contrary there should be several ART 673. The person from whom the vessel is
charter parties, and by reason of want of space all chartered shall be liable for the losses caused to the
the cargo contracted for cannot be loaded, and none charterer by reason of the voluntary delay of the
of the charterers desire to rescind the contract, captain in putting to sea, according to the rules
preference shall be given to the person who has prescribed, provided he has been requested,
already loaded and arranged the freight in the notarially or judicially, to put to sea at the proper
vessel, and the rest shall take the places time.
corresponding to them in the order of the dates of
their contracts. ART 674. If the charterer should carry to the
vessel more cargo than that contracted for, the
Should there be no priority, the charterers may excess may be admitted in accordance with the
load, if they wish, in proportion to the amounts of price stipulated in the contract, if it can be well
weight or space for which each may have stowed without injuring the other shippers but if in
contracted, and the person from whom the vessel order to load it, the vessel would be thrown out of
was chartered shall be obliged to indemnify them for trim, the captain must refuse it or unload it at the
losses and damages. expense of its owner.
ART 670. If the person from whom the vessel is In the same manner, the captain may before
chartered, after receiving a part of the freight, should leaving the port, unload merchandise clandestinely
not find sufficient to make up at least three-fifths of placed on board, or transport them, if he can do so
the amount which the vessel may hold, at the price with the vessel in trim, demanding by way of
he may have fixed, he may substitute for the freightage the highest price which may have been
transportation another vessel inspected and stipulated for the said voyage.
declared suitable for the same voyage, the expenses ART 675. If the vessel has been chartered to
of transfer and the increase in the price of the receive cargo in another port, the captain shall
charter, should there be any, being for his account. appear before the consignee designated in the
Should he not be able to make this change, he shall charter party; and should the latter not deliver the
undertake the voyage at the time agreed upon; and cargo to him, he shall inform the charterer and wait
should no time have been fixed, within fifteen days his instructions, then lay days agreed upon or those
from the time the loading began, unless otherwise allowed by custom in the port beginning to run in
stipulated.
37

the meantime, unless there is an express, agreement not changed, and that the price agreed upon is paid
to the contrary. in full to the person from whom the vessel is
chartered, even though the full cargo is not
Should the captain not receive an answer embarked, with the limitation established in the next
within the time necessary therefore, he shall make article.
efforts to find freight; and should he not find any
after the lay days and extra lay days have elapsed, ART 680. A charterer who does not complete
he shall make a protest and return to the port where the full cargo he bound himself to ship shall pay the
the charter was made. freightage of the amount he fails to ship, if the
captain does not take other freight to complete the
The charterer shall pay the freightage in full, load of the vessel, in which case the first charterer
discounting that which may have been earned on the shall pay the difference, should there be any.
merchandise which may have been carried on the
voyage out or on the return trip, if carried for the ART 681. If the charterer should not load
account of persons. goods different from those stated at the time of
executing the charter party, without the knowledge
The same shall be done if a vessel, having of the person from whom the vessel was chartered
been chartered for the round trip, should not be or of the captain, and should thereby give rise to
given any cargo its return. losses, by reason of confiscation, embargo,
detention or other causes, to the person from whom
ART 676. The captain shall lose the the vessel was chartered or to the shippers, the
freightage and shall indemnify the charterers if the person giving rise thereto shall be liable with the
latter should prove, even against the certificate of value of his shipment and furthermore with his
inspection, if one has been made at the port of property, for the full indemnity to all those injured
departure, that the vessel was not in a condition to through his fault.
navigate at the time of receiving the cargo.
ART 682. If the merchandise should have
ART 677. The charter party shall subsists if a been shipped for the purpose of illicit commerce and
declaration of war or a blockade should take place were taken on board with the knowledge of the
during the voyage, the captain not having any person from whom the vessel was chartered or of
instructions from the charterer. In such case, the the captain, the latter, jointly with the owner of the
captain must proceed to the nearest safe and neutral same, shall be liable for all the losses which he may
port, requesting and awaiting orders from the be caused the other shippers; and even though it
shipper, and the expenses and salaries paid during may have been stipulated, they cannot demand any
the detention shall be paid as general average. indemnity whatsoever from the charterer for the
damaged caused to the vessel.
If, by orders of the shipper, the cargo should
be discharged at the port of arrival, the freightage ART 683. In case of making a port to repair
for the voyage out shall be paid in full. the hull, machinery, or equipment of the vessel the
ship owner must await until the vessel is repaired,
ART 678. If the time necessary, in the opinion being permitted to unload it at their own expense
of the judge or court, to receive the orders of the should they deem it proper.
shipper should have elapsed without the captain
having received any instructions, the cargo shall be If, for the benefit of the cargo subject to
deposited, and it shall be liable for the payment of deterioration, the shippers or the court, or the
the freightage and expenses on its account during consul, or the competent authority in a foreign
the delay, which shall be paid from the proceeds of country, should order the merchandise to be
the part first sold. unloaded, the expenses of unloading and reloading
shall b e for the account of the former.
PART 3
OBLIGATIONS OF THE CHARTERERS ART 684. If the charterer without the
occurrence of any of the case of force majeure
ART 679. The charterer of an entire vessel mentioned in the foregoing article, should wish to
may sub-charter the whole or part thereof on such unload his merchandise before arriving at the port of
terms as he may consider most convenient, the destination, he shall pay the full freightage, the
captain not being allowed to refuse to receive on expenses of the arrival at his request and the losses
board the freight delivered by the second charterers, and damages caused the other shippers should
provided that the conditions of the first charters are there be any.
38

From one port to another of the Philippines

ART 685. In charters for transportation of and adjacent islands, the freightage for one
general freight, any of the shippers may unload the month only shall be paid.
merchandise before the beginning of the voyage, 5. If the vessel should make a port during the
paying one-half of the freightage, the expense of voyage in order to make urgent repairs, and
stowing and restowing the cargo, and any other the charterers should prefer to dispose of
damage which for his reason he may cause the other the merchandise.
shippers.
When the delay does not exceed thirty days,
ART 686. After the vessel has been unloaded the shippers shall pay the full freightage for
and the cargo placed at the disposal of the the voyage out.
consignee, the latter must immediately pay the
captain the freightage due and the other expenses Should the delay exceed thirty days, they
for which the said cargo may be liable. shall only pay the freightage in proportion to
the distance covered by the vessel.
The primage must be paid in the same
proportion and at the same time as the freightage, all ART 689. At the request of the person from
the changes and modifications to which the later whom the vessel is chartered the charter party may
should be subject also governing the former. be rescinded:
ART 687. The charterers and shippers may 1. If the charterer, at the termination of the
not abandon merchandise damaged on account of extra lay days, does not place the cargo
inherent defect or fortuitous event, for the payment alongside the vessel.
of the freightage and other expenses.
The abandonment shall be proper, however, In such case the charterer must pay half the
if the cargo should consist of liquids and they have freight stipulated, besides the demurrage due for
leaked out, nothing remaining in the containers but the lay days and extra lay days.
one-fourth part of their contents.
2. If the person from whom the vessel was
PART 4 chartered should sell it before the charterer
TOTAL OR PARTIAL RECISSION OF CHARTER has begun to load it, and the purchase
PARTIES should load it for his own account.
Art 688. A charter party may be rescinded at In such case the vendor shall indemnify the
the request of the charterer: charterer for the losses he may suffer.
1. If before loading the vessel he should not
agree with that stated in the certificate of If the new owner of the vessel should
tonnage, or if there should be and error in not load it for his own account, the charter
the statement of the flag under which he party shall be respected, and the vendor
sails. shall indemnify the purchaser of the former
2. If the vessel should not be placed at the did not inform him of the charter pending at
disposal of the charterer within the period the time of making the sale.
and in the manner agreed upon.
3. If after the vessel has put to sea, she should ART 690. The charter party shall be
return to the port of departure, on account of rescinded and all actions arising therefrom
risk from pirates, enemies or bad weather, shall be extinguished, if, before the vessel
and the shipper should agree to unload her. puts to sea from the port of departure, any of
In the second and third cases the person from the following should occur:
whom the vessel was chartered shall indemnify
the charterer for the voyage out. 1. A declaration of war or interdiction of
4. If the charterer should have been made by commerce with the power to whose ports the
the months, the charterers shall pay the full vessel was to make its voyage.
freightage for one month, if the voyage is for 2. A condition of blockade of the port of
a port in the same waters, and for two destination of said vessel, or the breaking
months, if for a port in different waters. out of an epidemic after the contract was
executed.
39

3. The prohibition to receive at the said port the pp.580589(greg)

merchandise constituting the cargo of the
vessel. OFarrel Y CIa vs Manila Electric Company
4. An indefinite detention, by reason of an
embargo of the vessel by order of the Facts:
government, or for any other reason Societe Francaise des Charbonnages du Tonkin
independent of the will of the ship agent. (hereinafter referred to as the coal company) is engaged
5. The inability of the vessel to navigate, in mining coal company in Hongay, Tongking, China
without fault of the captain or ship agent. while the Manila Electric Company is operating a plant
The unloading shall be made for the for the generation of the electricity in the city of Manila.
account of the charterer. At the same time O'Farrel y Cia. (Malaysian Navigation
Company) was, during the period with which we are here
ART 691. If the vessel cannot put to sea on concerned, a shipping company engaged in operating
account of the closing of the port of departure or freight vessels in oriental seas. In operation of this plant
any other temporary cause, the charter shall remain the defendant company consumes large quantities of
in force, with neither one of the contracting parties coal, and in years past has taken its supplies in part from
having a right to claim damages. the coal company from Hongay. The old arrangement
under which the defendant had been purchasing coal
The subsistence and wages of the crew shall from said company having been found to be
be considered as general average. unsatisfactory, for some reason or other, to the
defendant, a new contract was entered into, in the month
During the interruption, the charterer may at of August, 1923, whereby the coal company agreed to
the proper time and for his own account, unload and sell and the defendant agreed to buy, in the period from
load the merchandise, paying demurrage if he September 1, 1923, to August 31, 1924, 75,000 tons of
delays the reloading after the cause for the detention dust coal, with a margin of 10 percent more or less. In
has ceased. this contract it was agreed that delivery should be taken
by the defendant in lots of about from 2,000 to 4,000
ART 692. A charter party shall be partially tons at regular intervals, as could best be arranged to
rescinded unless there is an agreement to the suit both purchasers and sellers, the purchasers
contrary and the captain shall only be entitled to the agreeing to take not less than about 6,000 tons per
freightage for the voyage out, if, by reason of a month and to send not more than one steamer to be
declaration of war, closing of ports, or interdiction of loaded at the same time. It was also stipulated that the
commercial relations during the voyage, the vessel dust coal, the subject of the sale, should be loaded
should make the port designated for such a case in either in the stream or alongside the wharf or guay at
the instructions of the charterer. Hongay, at the option of the coal company "with the
quick despatch, vessels taking their turn in loading." As
Problem 579 580: neither the coal company nor the Manila Electric
Company was engaged in operating seagoing vessels, it
Rescission of the charter party is allowed under 689 of became necessary for the defendant to make
the Code of Commerce, as in the case, the owner sold arrangement with some shipping company for the
the vessel before the charter has begun to load the service necessary to transport the coal to Manila. This
vessel and the purchaser loads it for his own amount. need being apparent, Gaston O'Farrel, the agent of the
coal company, in Manila, directed the attention of the
If the owner party of the vessel should not load it for his defendant company to the Malaysian Navigation
own account, the charter party shall be respected and Company, the trade name of O'Farrel y Cia., as
the vendor shall indemnify the purchaser if the former operating vessels that would be available for
did not inform him of the charter pending at the time of transporting the coal. In this connection it should be
making the sale. noted that O'Farrel was agent both of the coal company
and the Malaysian Navigation Company.
*Owner Pro Hac Vice generally understood to be the The practice followed by the parties in the
charterer of the vessel who entered into a charter party performance of contract was that, upon the receipt of
with the shipowner which is in the nature of bareboat or information in Manila by the defendant company by the
demise charter. coal company, advising that a cargo of coal was, or soon
would be available in Hongay, the massage was turn
over to O'Farrel y Cia., and the later company made the
arrangements for the sending of a boat to Hongay. But
delay in the taking on of coal occurred in Hongay, owing
to the inability of the coal company to deliver the coal to
40

the waiting boats. The preponderance of the proof stated, the customs of the port where these acts
shows that this delay was due to the fact that the cranes take place shall be observed. After the period
of the coal company at Hongay were defective and often stipulated or the customary one has passed, and
out order. At any rate the result was that the plaintiff's should there not be in the freight contract an
boats were frequently kept waiting in the port; and it in express clause fixing the indemnification for the
fact appears that altogether they were held there idle delay, the captain shall be entitled to demand
one hundred twenty-three days, to say nothing at of the demurrage for the usual and extra lay days
time occupied in the lading of the ships after their turn which may have elapsed in loading and
had come for taking cargo. There can be no doubt, we unloading.
think, that these delays were attributable to the coal
company. We are of the opinion, however, that the
stipulation of the contract making the loading of coal
Issue: subject to the turn of mines renders article 656
Whether or not defendant is responsible for inapplicable, this being a special stipulation determining
demurrage of the plaintiff vessel at Hongay? the order of loading. It results that the defendant cannot
be held responsible for the delay that occurred.
Ruling:
NO: In connection with this matter it will be

noted, upon careful inspection of the contract between
Caltex Philippines vs Suplicio Lines Inc
the plaintiff and the defendant, that the stipulation for
demurrage at the rate of P600 per day, or fraction
thereof, is found in the paragraph of the contract which Facts:
deals especially with the discharge of coal at Manila.
There is no stipulation for demurrage incident to delay at On December 19, 1987, motor tanker MT Vector
Hongay; and, on the contrary, it is stipulated, in the third left Limay, Bataan, at about 8:00 p.m., enroute to
paragraph of the contract, that loading at Hongay should Masbate, loaded with 8,800 barrels of petroleum
2
be "according to customary quick despatch subject to products shipped by petitioner Caltex. MT Vector is a
turn of mines." In appellant's brief emphasis has been tramping motor tanker owned and operated by Vector
placed upon the words customary quick despatch and Shipping Corporation, engaged in the business of
the other words subject to turn of mines have not been transporting fuel products such as gasoline, kerosene,
taken so much into account. It appears in the proof that diesel and crude oil. During that particular voyage, the
the vessels desirous of lading coal at Hongay were MT Vector carried on board gasoline and other oil
laden according to the custom of the port, in strict products owned by Caltex by virtue of a charter contract
rotation, except in one instance where a Malaysian ship between
was given preference over two other ships whose them.
owners did not object. The expression "subject to turn of
mines" should be interpreted, we think, to mean that the On December 20, 1987, at about 6:30 a.m., the
lading of vessels should be subject to the output of the passenger ship MV Doa Paz left the port of Tacloban
mines and that vessels should take their turn in taking on headed for Manila with a complement of 59 crew
the coal. It results that the lading of coal was dependent members including the master and his officers, and
upon the output of the mines and the order of ships passengers totaling 1,493 as indicated in the Coast
seeking cargo at the loading places. The expression Guard Clearance. The MV Doa Paz is a passenger
"subject to turn of mines" was no doubt inserted in the and cargo vessel owned and operated by Sulpicio Lines,
contract in lieu of a stipulation for demurrage. The Inc. plying the route of Manila/ Tacloban/ Catbalogan/
insertion of that expression in clause 3 made the Manila/ Catbalogan/ Tacloban/ Manila, making trips
Malaysian ships dependent upon the loading facilities of twice a week.
the coal company at Hongay, and relieved the defendant
from any liability for demurrage by reason of delays that At about 10:30 p.m. of December 20, 1987, the
might occur in that port incident to the obtaining and two vessels collided in the open sea within the vicinity of
loading of the coal. Dumali Point between Marinduque and Oriental Mindoro.
All the crewmembers of MV Doa Paz died, while the
The plaintiff here invokes article 656 of the Code two survivors from MT Vector claimed that they were
of Commerce, which reads as follows: sleeping at the time of the incident.1wphi1.nt
If in the chapter party the time in which the The MV Doa Paz carried an estimated 4,000
loading and unloading is to take place is not passengers; many indeed, were not in the passenger
41

manifest. Only 24 survived the tragedy after having been the contract of carriage is a bill of lading or
rescued from the burning waters by vessels that equivalent shipping documents on the one
responded to distress calls. Among those who perished hand, or a charter party or similar contract
were public school teacher Sebastian Caezal (47 years on the other.
old) and his daughter Corazon Caezal (11 years old),
both unmanifested passengers but proved to be on Petitioner and Vector entered into a contract of
board the vessel. affreightment, also known as a voyage charter.
On March 22, 1988, the board of marine inquiry A charter party is a contract by which an entire ship, or
in BMI Case No. 659-87 after investigation found that the some principal part thereof, is let by the owner to
MT Vector, its registered operator Francisco Soriano, another person for a specified time or use; a contract of
and its owner and actual operator Vector Shipping affreightment is one by which the owner of a ship or
Corporation, were at fault and responsible for its collision other vessel lets the whole or part of her to a merchant
with MV Doa Paz or other person for the conveyance of goods, on a
particular voyage, in consideration of the payment of
On February 13, 1989, Teresita Caezal and freight.
Sotera E. Caezal, Sebastian Caezal's wife and mother
respectively, filed with the Regional Trial Court, Branch Under the Carriage of Goods by Sea Act :
8, Manila, a complaint for "Damages Arising from Breach
of Contract of Carriage" against Sulpicio Lines, Inc.
Sec. 3. (1) The carrier shall be bound
(hereafter Sulpicio). Sulpicio, in turn, filed a third party
before and at the beginning of the
complaint against Francisco Soriano, Vector Shipping
voyage to exercise due diligence to
Corporation and Caltex (Philippines), Inc. Sulpicio
alleged that Caltex chartered MT Vector with gross and
evident bad faith knowing fully well that MT Vector was (a) Make the ship seaworthy;
improperly manned, ill-equipped, unseaworthy and a
hazard to safe navigation; as a result, it rammed against (b) Properly man, equip, and supply the
MV Doa Paz in the open sea setting MT Vector's highly ship;
flammable cargo ablaze.
Thus, the carriers are deemed to warrant impliedly the
The trial court rendered judgment making seaworthiness of the ship. For a vessel to be
Suplico Lines liable. The Court of Appeals modified the seaworthy, it must be adequately equipped for the
trials court ruling and included petitioner Caltex as one voyage and manned with a sufficient number of
of those liable for damages thereby making said competent officers and crew. The failure of a common
petitioner Caltex and Victor Shipping Co. equally liable carrier to maintain in seaworthy condition the vessel
under the third party complaint to reimburse defendant involved in its contract of carriage is a clear breach of its
Suplico lines of the damages, attorneys fees and costs duty prescribed in Article 1755 of the Civil Code.
which latter is adjudged to pay plaintiffs the same to be
shared half by Victor Shipping, being the vessel at fault The provisions owed their conception to the nature of the
for the collision and the other half by Caltex. business of common carriers. This business is
impressed with a special public duty. The public must of
Issue: necessity rely on the care and skill of common carriers in
the vigilance over the goods and safety of the
(1) Is the charterer of a sea vessel liable for passengers, especially because with the modern
damages resulting from collision between development of science and invention, transportation
the chartered vessel and a passenger ship? has become more rapid, more complicated and
(2) Whether or not Caltex is liable for damages somehow more hazardous. For these reasons, a
under the Civil code? passenger or a shipper of goods is under no obligation
to conduct an inspection of the ship and its crew, the
carrier being obliged by law to impliedly warrant its
Ruling:
seaworthiness.
(1) NO. The charterer has no liability for (2) NO. The charterer of a vessel has no
damages under Philippine Maritime laws.
obligation before transporting its cargo to
The respective rights and duties of a shipper
ensure that the vessel it chartered complied
and the carrier depends not on whether the
with all legal requirements. The duty rests
carrier is public or private, but on whether
upon the common carrier simply for being
42

22
engaged in "public service." The Civil
Code demands diligence which is required
by the nature of the obligation and that
which corresponds with the circumstances
of the persons, the time and the place.
The relationship between the parties in this

case is governed by special laws. Because
of the implied warranty of
23
seaworthiness, shippers of goods, when
transacting with common carriers, are not
expected to inquire into the vessel's
seaworthiness, genuineness of its licenses
and compliance with all maritime laws. To
demand more from shippers and hold them
liable in case of failure exhibits nothing but
the futility of our maritime laws insofar as the
protection of the public in general is
concerned. By the same token, we cannot
expect passengers to inquire every time
they board a common carrier, whether the
carrier possesses the necessary papers or
that all the carrier's employees are qualified.
Such a practice would be an absurdity in a
business where time is always of the
essence. Considering the nature of
transportation business, passengers and
shippers alike customarily presume that
common carriers possess all the legal
requisites in its operation. Thus, the nature
of the obligation of Caltex demands ordinary
diligence like any other shipper in shipping
his cargoes.
Caltex and Vector Shipping Corporation had

been doing business since 1985, or for about two years
before the tragic incident occurred in 1987. Past services
rendered showed no reason for Caltex to observe a
higher degree of diligence.
Clearly, as a mere voyage charterer, Caltex had

the right to presume that the ship was seaworthy as
even the Philippine Coast Guard itself was convinced of
its seaworthiness. All things considered, we find no legal
basis to hold petitioner liable for damages.
43

CHAPTER 10
TABLE OF CONTENTS
Chapter 10
Loans on Bottomry & Respondentia
I. Definitions & Concept
II. Distinguished from Simple Loan
III. Parties
IV. Form
V. Consequences of Loss
VI. Code of Commerce Provisions
44

pp.590600(kc) borrower, the loan shall be valid only for the amount at
which the object is appraised by experts, and the surplus
CHAPTER 10 principal shall be repaid as if it were a simple loan, with
LOANS ON BOTTOMRY AND RESPONDENTIA legal interest thereon.
b. if the full amount of the loan which is contracted in
order to load the vessel is not used for the cargo, or
I. Definitions and Concept given on the goods if all of them could not have been
loaded, the balance will be considered as a simple loan
Bottomry, in maritime law, is a contract whereby the which should be prior to the commencement of the
owner of a ship borrows for the use, equipment or repair voyage.
of the vessel, for a definite term, and pledges the ship
(or the kneel or bottom of the ship pars pro toto) as c. if the effects on which the money is taken not be
security, with the stipulation that if the ship is lost during subjected to any risk, the contract will be regarded as a
the voyage or during the limited time on account of the simple loan.
perils enumerated, the lender shall lose his money. III. Parties to the loans
Where the goods, or some part thereof, are a. the shipowner
hypothecated as security for a loan, the repayment of
which is dependent upon maritime risks, what ensues is - although in case where he is only a part owner, any
a loan on respondentia. The usual form of a loan on bottomry that he may contract shall be limited only to the
respondentia is that of a bond. In this kind of maritime extent of his interest in the vessel
loan, it is the borrowers personal responsibility which is - there are however instances when the captain,
deemed to be the principal security for the performance although he has no interest in the ship, may
of the contract, hence, the term respondentia. nevertheless enter into a loan on bottomry as when on
II. Bottomry or repondentia distinguished from account of extreme necessity, he may borrow by means
simple loan of loan on bottomry in order to comply with the
obligations under article 583 and 611 of the Code of
a. The rate of interest is not The rate of interest must Commerce.
subject to the Usury Law not exceed the ceiling
on account of the fixed by the Usury Law b. the ship captain
extraordinary risks involved - who is also a part owner may only obtain a loan on
b. There must necessarily There need not be such bottomry only to the extent of his interest
be a marine risk the risks involved. - being a mere agent of the ship owner and not of the
existence of which must be cargo owner, may not contract a loan on respondentia
duly established
c. the cargo owner
c. it must be executed in The formal requisites
accordance with the form regarding contracts in - shall have the right to enter into a loan on respondentia
and manner required in the general would apply. involving his cargo
Code of Commerce d. no loans on bottomry may be made in any case on the
d. It must be recorded in No such registration is salaries of the crew nor or the profits which may be
the registry of vessels in required in the case of a expected
order to bind third persons simple loan. IV. Form of the loans
e. Preference is extended The first lender, as a Article 720 and Article 721, Code of Commerce (refer to
to the last lender, then the general rule, enjoys the codal provisions below)
prior lenders would not preference over
have benefited from the subsequent ones. V. Consequences of loss of effects of the loans
preservation of the If the effects of the loans be due to an accident of the
security. sea during the time, and on occasion of the voyage
which has been designated in the contract and it is
proven that the cargo was on board, then the lender
Events where the loan on bottomry or respondentia may loses the right to institute the action which would
be regarded as a simple loan only: pertained to him as such. The lender however, retains
such right of action if the loss was caused by the
a. if the lender should prove that he loaned an amount
inherent defect of the thing or through the fault or malice
which is larger than the value of the object liable for the
of the borrower, or through barratry on the part of the
bottomry loan due to fraudulent means employed by the
45

captain, or if it was caused by damages suffered by the The contracts made during a voyage shall be governed
vessel as a consequence of being engaged in a by the provisions of Articles 583 and 611, and shall be
contraband, or if it arose from having loaded the goods effective with regard to third persons from the date of
on a vessel different from that designated in the contract, their execution, if they should be recorded in the registry
unless in this latter instance, the change was made due of vessels of the port of registry of the vessel before the
to force majeure. lapse of eight days from the date of her arrival. Should
the said eight days elapse without record having been
The lenders on bottomry or respondentia shall suffer in
made in the registry of vessels, the contracts made
proportion to their respective interest, the general
during the voyage of the vessel shall produce no effect
average which may take place in the things upon which
with regard to third persons, except from the day of their
the loans were made. In particular voyages, if there is no
inscription.
agreement between the parties, the lender on bottomry
or respondentia is obligated to contribute in proportion to In order that the policy of the contracts executed in
his respective interest, should it not belong to the kind of accordance with no, 2 may have binding force, they
risks excepted in Article 731. must conform to the registry broker who took part
therein. With respect to those executed in accordance
If what transpires is a shipwreck, the amount for the
with no.3, the acknowledgement of the signature shall be
payment of the loan shall be reduced to the proceeds of
required.
the effects which have been saved but only after
deducting the costs of the salvage. If the loan should be Contracts which are not reduced in writing shall not give
on the vessel or any of her parts, the freight earned rise to judicial action.
during the voyage for which the loan was contracted
Article 721. in a contract on bottomry or respondentia
shall also be liable for its payment, as far as it may
the following must be stated:
reach.
1. the kind, name and registry of the vessel.
If the same vessel or cargo should be the object of a
loan or bottomry or respondentia and marine insurance, 2. the name, surename and domicile of the captain.
the value of what may be saved in case of shipwreck
3. the names, surenames and domiciles of the person
shall be divided between the lender and the insurer, in
giving and the person receiving the loan.
proportion to the legitimate interest of each one, taking
into consideration, for this purpose only, the principal 4. the amount of the loan and the premium stipulated.
with respect to the loan, and without or prejudice to the
right of rpeference of their creditors in accordance with 5. the time for repayment.
Article 580. 6. the objects pledged to secure repayment.
VI. Code of Commerce Provisions 7. the voyage during which the risk is to run.
Article 719. A loan in which under any condition Article 722. The contract may be made to order, in
whatever, the repayment of the sum loaned and of the which case they shall be transferable by indorsement,
premium stipulated depends upon the safe arrival in port and the indorsee shall acquire the rights and shall incur
of the goods on which it is made, or of the price they all the risks corresponding to the indorser.
may receive in case of accident, shall be considered a
loan on bottomry or respondentia. Article 723. Loans may be made in goods and in
merchandise, fixing their value in order to determine the
Article 720. Loans on bottomry or respondentia may be principal of the loan.
executed:
Article 724. The loans may be constituted jointly or
1. By means of a public interest. separately:
2. By means of a policy signed by the contracting parties 1. on the hull of the vessel.
and the broker taking part therein.
2. on the rigging,
3. By means of a private instrument.
3. on the equipment, provisions and fuel.
Under whichever of these forms the contract is
executed, it shall be entered in the certificate of registry 4. on the engine, if the vessel is a steamer.
of the vessel and shall be recorded in the registry of 5. on the merchandise loaded.
vessels, without which requisites, the credits of this kind
shall not have, with regard to other credits , the If the loan is constituted on the hull of the vessel, the
preference which, according to their nature. They should rigging, equipment and other goods, provisions, fuel,
have although the obligation shall be valid between the steam engines and the freightage earned during the
contracting parties. voyage on which the loan is made shall also be
considered as included in the liability for the loan.
46

If the loan is made on the cargo, all that which the loan was made, if it arose from an accident of the
constitutes the same shall be subject to the repayment; sea at the time and during the voyage designated in the
and if on a particular object of the vessel or of the cargo, contract, and it is proven that the cargo was on board;
only the object concretely and specifically mentioned but this shall not take place if the loss was caused by the
shall be liable. inherent defect of the thing, or through the fault or
malice, of the borrower, or barratry on the part of the
Article 725. No loans on bottomry may be made on the
captain, or if it was caused by damages suffered by the
salaries of the crew or on the profits expected.
vessel as a consequence of being engaged in a
Article 726. if the lender should prove that he loaned an contraband, or if it arose from having loaded the
amount larger than the value of the object liable for the merchandise on a vessel different from that designated
bottomry loan, an account of fraudulent measures in the contract, unless this change should have been
employed by the borrower, the loan shall be valid only made by reason of force majeure.
for the amount at which said object is appraised by
Proof of loss as well as of the existence in the vessel of
experts.
the goods declared to the lender as the object of the
The surplus principal shall be returned with legal loan is incumbent upon him who received the loan.
interests for the entire time required for repayment.
Article 732. Lenders on bottomry or respondentia shall
Article 727. if the full amount of the loan contracted in suffer, in proportion to their respective interest, the
order to load the vessel should not be used for the general average which may take place in the goods on
cargo, the balance shall be returned before clearing. which the loan is made.
The same procedure shall be observed with regard to In particular averages, in the absence of an express
the goods taken as a loan, if they were not loaded. agreement between the contracting parties, the lender
on bottomry or respondentia shall also contribute in
Article 728. The loan which the captain takes at that
proportion to his respective interest, should it not belong
point of residence of the owners of the vessel shall only
to the kind of risks excepted in the foregoing article.
affect that part thereof which belongs to the captain, if
the other owners or their agents should not have given Article 733. Should the period during which the lender
their express authorization therefor or should not have shall run the risk not have been stated in the contract, it
taken part in the transaction. shall last, with regard to the vessel, engines, rigging and
equipment, from the moment the said vessel puts to sea
If one or more of the owners should be requested to
until she drops anchor in the port of destination; and with
furnish the amount necessary to repair or provision the
regard to the merchandise , from the time they are
vessel, and they should not do so within twenty four loaded at the shore or wharf of the port of shipment until
hours, the interest which the parties in default may have they are loaded in the port of consignment.
in the vessel shall be liable for the loan in the proper
proportion. Article 734. In case of shipwreck, the amount liable for
the payment of the loan shall be reduced to the
Outside of the residence of the owners the captain may
proceeds of the goods saved, after deducting the costs
contract loans in accordance with the provisions of
of the salvage.
Articles 583 and 611.
If the loan should be on the vessel or any of its parts, the
Article 729. Should the goods on which money is taken
freightage earned during the voyage for which said loan
not be subjected to risk, the contract shall be considered
was contracted shall also be liable for its payment, as far
a simple loan, with the obligation on the part of the
as it may reach.
borrower to return the principal and interest at the legal
rate, if that agreed upon should not be lower. Article 735. If the same vessel or cargo should be the
object of a loan on bottomry or repondentia and marine
Article 730. Loans made during the voyage shall have insurance, the value of what may be saved in case of
preference over those made before the clearing of the
shipwreck shall be divided between the lender and the
vessel and they shall be graduated in the inverse order
insurer, in proportion to the legitimate interest of each
of their dates.
one, taking into consideration, for this purpose only, the
The loans for the last voyage shall have preference over principal with respect to the loan, and without prejudice
prior ones. to the right of preference of other creditors in accordance
with Article 580.
Should several loans have been made at the same port
of arrival under stress and for the same purpose, all of Article 736. If there should be delay in repayment of the
them shall be paid pro rata. principal and premiums of the loan, only the former shall
bear of legal interest.
Article 731. The actions pertaining to the lender shall be
extinguished by the absolute loss of the goods on which
47

CHAPTER 11
TABLE OF CONTENTS
Chapter 11
Averages
I. Averages in General
II. Simple Average

A. Definition
B. By Whom Borne
C. Examples of Simple Average
III. General Average

A. Definition & Requisites
a. Common Danger
b. Deliberate Sacrifice
c. Sacrifice Must be Successful
d. Compliance w/ Legal Steps
B. Examples of General Average
C. By Whom Borne
a. Insurers
b. Lenders on Bottomry & Respondentia
D. Who is Entitled to Indemnity
Cases:
Magsaysay Inc. v. Agan
American Home Assurance v. CA
IV. Proof & Liquidation of Average
Case:
Standard Oil v. Castelo
V. York-Antwerp Rules
48

Transpo Chapter 8 - 11

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Transpo Chapter 8 - 11

Uploaded by

Copyright:

Available Formats

2D20102011DigestPool*TranspoReviewer

pp.490512(han) If the part owners should not be more than

having the books and correspondence relating to

a. Powers Art. 601. Should there be any profits, co-owners may

employee acting in accordance with the instructions

3) representative of the country under whose flag he

3. by drawing on the ship agent

e) bill of health 8. Protest arrivals under distress : maritime authority

Compaignie de Commerce v. Hamburg (no. 10986, What is a Pilot?

pp.523531(diana) PAR. XXVII. In all pilotage districts where pilotage is

resisted the delivery of the effects of the vessel or pp.532541(princess)

G.R. No. L-46340 . April 28, 1983

B. It is plain from the records of the present petition

5. Chief Engineer Officer means a senior engineer pp.541550(angel)

(1) Management Level

Sec. 29. Quality Standards. The Boards shall Administration.

number of hours of shipboard duties and rest periods

2. Masters, officers and ratings onboard Philippine-

11. The Steward Department shall be adequately staffed

3. The Administration shall issue a Certificate of

Sec. 19. Repatriation F. The seafarer, when discharged and repatriated

4. To assign to each seaman the work he is to do on

2. If the agreement should have been for a fixed

I. Definitions & Concept

II. Different Kinds of Charter Parties

III. Effect of Charter on Character of Carrier

IV. Persons Who May Make Charter

VII. Demurrage & Deadfreight

VIII. Rights & Obligations

IX. Effect of Bill of Lading

X. Code of Commerce Provisions

pp.561570(lori) A. BAREBOAT CHARTER

CHAPTER 9 - the shipowner leases to the charterer the whole

- Generally, the character of the common carrier

Primage unless there is an agreement to the contrary (Art

- Where the goods were jettisoned for the A. SHIPOWNER OR CAPTAIN

margin greater than 2% between that B. CHARTERER

The same authority shall judicially (por la

From one port to another of the Philippines

3. The prohibition to receive at the said port the pp.580589(greg)

NO: In connection with this matter it will be

The relationship between the parties in this

Caltex and Vector Shipping Corporation had

Clearly, as a mere voyage charterer, Caltex had

I. Definitions & Concept

II. Distinguished from Simple Loan

VI. Code of Commerce Provisions

II. Simple Average

III. General Average

IV. Proof & Liquidation of Average

You might also like