5 November in the morning, the Dalian Branch of CPI hosted a special topics seminar. The seminar is part of CPI’s member outreach program to address shipowners’ concerns in areas of ship management and risk prevention. Over 30 representatives from member companies in Dalian were in attendance.

The seminar was hosted by General Manager of the Dalian Branch, Mr. Felix Guo. Mr. Guo noted that the IMO 2020 sulphur cap is coming into effect soon and there are already many reports of charterparty disputes. Mr. Guo further noted current developments within the sanctions landscape, where frustration of charterparty contracts are under the industry spotlight. Mr. Guo hoped the seminar would provide members with advice on the relevant legal issues so as to mitigate the risks they face.

CPI Services (UK) Ltd.’s in-house solicitor Mr. Peter Gulvanessian presented a talk on two topics related to these issues: “Charterparty Issues Arising from the 2020 Cap on the Sulphur Content of Fuel” and “The Doctrine of Frustration in Light of the Risks Faced by the Shipping Industry”. Mr. Gulvanessian discussed the likely areas of dispute that might arise upon the 2020 sulphur cap coming into force with reference to the standard forms of charterparty, whilst also analysing the recently adopted BIMCO and INTERTANKO clauses. Mr. Gulvanessian also discussed the doctrine of frustration, with a specific focus upon its application and legal effects, as well as how current sanctions and the threat of designation of shipping entities might affect contracts governed by English law.

The seminar was well received by member representatives, in which they noted that the topics are targeted, educational and practical, as well as helpful in providing advice on ship management. In the future, CPI will continue to improve its services, update members on pressing issues of the moment, raise loss prevention awareness and fully ensure the interest of members.