A new financial year brings with it an increase in the fines for those polluting Australian waters. Ship owners, charterers, masters, operators and their insurers should be aware of potential liabilities for fines in Australia on top of pollution clean up and damage claims.
The International Group Clubs says that they are grateful to Australian lawyers, HWL Ebsworth for advice on fines that have been increased recently.
Fine trends in Australian waters
In 2012, the International Group Clubs advised its Members on changes to the legislation in Australia, which increased fines for pollution from ships and to impose these fines on charterers as well as the shipowners.
The level of fines was increased in 2013 and the terms of the charterparty clause, as recommended by the club, along with BIMCO, were also amended – please see Notice to Members No.2 2013/2014.
As at 1 July 2018, a majority of States (and the Northern Territory) have increased their penalty unit value in accordance with their annual indexation adjustments. The Commonwealth has also completed its three year increase of the applicable penalty unit in accordance with the Consumer Price Index.
Click here for a table of the applicable fines across Australia.
No more oil spills
The discharge of oil in Commonwealth, State or Territory waters is a strict liability offence for Owners and Masters and potentially crew members and those involved in the operation and maintenance of the ship. The Commonwealth legislation expressly includes Charterers in the list of those strictly liable.
The State and Territory legislation and penalties apply to oil spills that are within, or migrate to within, 3 nautical miles of the Australian coast. But beyond 3 nautical miles the Commonwealth legislation will apply.
Shippers warned
These penalty unit increase means that the maximum fine for a spill in Commonwealth waters has increased to $4.2 million for a Master and $21 million for a corporate Owner or Charterer.
Members are advised to take note of these increased fines and to ensure that the recommended pollution indemnity clause is included in charterparties.
A copy of the clause and explanatory notes can be found here.
Both AMSA and the relevant State regulators and port authorities continue to police this area strictly.
It is also recommended that members or ship owners must take these risks into account when involved in trade to Australia and should take immediate steps to reduce any physical damage and manage the resulting liabilities and penalties with care.
Did you subscribe for our daily newsletter?
It’s Free! Click here to Subscribe!
Source: West of England P&I
