Specialised commercial agreements shaping global maritime trade
Maritime contracts are the legal backbone of shipping and trade, setting out rights, duties, risk allocation, and remedies between shipowners, charterers, cargo interests, ports, insurers, and service providers. They range from standard forms (e.g., charterparties, bills of lading) to bespoke agreements (shipbuilding, salvage, tech). In short, they translate complex maritime operations into clear, enforceable terms across borders and jurisdictions.
Contracts in any sector provide clarity, trust, and legal certainty – but in the maritime industry, their importance is amplified. Most major maritime contracts are governed by the common law system, often under English law, because of its flexibility, predictability, and global commercial acceptance. Under common law, precedent matters: today’s disputes and judgments shape tomorrow’s industry practice. This creates a living legal framework that evolves with technology, trade patterns, and risk management needs.
📌 Side note: One reason common law remains so dominant is the influence of BIMCO (Baltic and International Maritime Council), the world’s largest international shipping association. BIMCO publishes widely-used standard forms – from charterparties to bills of lading – drafted primarily with English common law principles in mind. Their clarity, tested clauses, and broad acceptance make them a default choice for many shipowners, charterers, and legal practitioners worldwide.
Well-crafted maritime contracts reduce disputes, manage liability, and keep voyages and port operations on schedule. They define governing law, jurisdiction/arbitration, payment, delivery, force majeure, and other core terms – often determining whether a conflict ends in a swift resolution or years of costly litigation. For maritime professionals, understanding not only the content but also the legal tradition behind these contracts is a critical advantage.
• Map the big four: charterparties, bills of lading, contracts of affreightment, and shipbuilding/sale.
• Spot the critical clauses: liability, off-hire/laytime & demurrage, payment, notice, law & jurisdiction/arbitration.
• Track digital change: e-bills of lading and smart clauses are rising– understand enforceability and standards.
• Understand your legal roots: know when and why contracts follow common law vs civil law frameworks.
• Build your playbook: keep model clauses, checklists, and negotiation notes; learn the major form families (e.g., BIMCO).
The dominance of English common law in maritime contracts dates back to Britain’s role as a global maritime power in the 19th century – a tradition that continues today, even for parties with no UK connection.
1. Why has common law become the preferred system for most maritime contracts?
2. How might a shift in global trade power change the dominant governing law in shipping?
3. Which clauses in your contracts would be interpreted differently under civil law?
