In a nutshell
Shipping and trade work mostly centres upon contract and tort; English case law is awash with examples from the world of shipping. Barristers handle disputes arising from or concerning the carriage of goods or people by sea, air and land, plus all aspects of the financing, construction, use, insurance and decommissioning of the vessels, planes, trains and other vehicles that carry them.
There is often a complex international element to these cases, drawing in multiple parties – for example a wrecked vessel might be Greek-owned, Pakistani-crewed, Russian-captained, last serviced in Singapore, carrying forestry products from Indonesia to Denmark, insured in London and chartered by a French company – but English courts are very often the preferred forum for the resolution of such matters, not least because of the worldwide significance of the London insurance market. Trade disputes are often resolved through arbitration conducted in various locations, Paris and London being among the most important.
‘Wet’ cases deal with problems at sea, while ‘dry’ cases relate to disputes in port or concerns over the manufacture and financing of vessels. The Bar also has a number of aviation, road haulage and rail specialists, and the sets that dominate these areas also tend to be able to offer commodities trading expertise.
Realities of the job
- Cases are fact-heavy and paper-heavy. To develop the best arguments for a case, barristers need an organised mind and a willingness to immerse themselves in the documentary evidence. This can be time-consuming and exhausting.
- There are opportunities for international travel. Cases can run on for years and involve large teams of lawyers, both solicitors and barristers. Young barristers work their way up from second or third junior to leader over a number of years. New juniors do get to run their own smaller cases, like charter party and bills of lading disputes.
- The world of shipping and trade has its own language and customs.
- Solicitor clients will usually work at one of the established shipping firms, but lay clients will be a mixed bag of financiers, shipowners, operators, traders and charterers, protecting and indemnity associations (P&I clubs), salvors and underwriters.
The world of shipping litigation has been busy since the economic crash, with the shipping and commodities sector being one of the slowest to recover since 2008. A weak indusrty typically leads to disputes.
The slowing of economic growth in China and elsewhere is now hitting commodities and freight prices. Demand for goods and raw materials has decreased meaning there's an oversupply of tonnage.
P&I clubs (marine insurers) are increasingly watchful of costs. This has led to increased interest in mediation and the direct instruction of barristers.
An oversupply of container ships in the last few years has seen a decline in companies looking to purchase new ones. Instead, shipping companies are growing their business through acquiring smaller companies and/or competitors.
Hanjin Shipping declared bankruptcy in 2017, disrupting supply chains worldwide with $14 billion worth of containers affected. As a silver lining, this may help to reduce the oversupply we mentioned above.
One success story has been LNG (liquefied natural gas) shipping. This requires both specialised carriers and docking facilities, and Bloomberg forecasts a huge increase in consumption, the majority of which will come from emerging markets.
China’s influence on the shipping trade is growing every year. Sets ranked highly in Chambers UK Bar have offices in English law locations in East Asia: Singapore (Essex Court and 20 Essex Street) and Hong Kong (4 Pump Court).
Piracy cases form a small but fascinating area of work for shipping lawyers. Despite a dramatic drop-off in instances of piracy in the past few years, it still remains a problem. Arrangements for protection of ships and ransom payments are both issues lawyers are involved in.
The potential proliferation of remote-controlled vessels – a trend that should be viewed in parallel with the gargantuan hype around self-driving cars – opens up a whole new front in shipping disputes. Technology will collide with responsibility to create a web of potential legal issues.
- The leading sets are easy to identify. A mini-pupillage with one or more of them will greatly enhance your understanding and chances.
- Despite the prominence of English law, the work calls for an international perspective and an appreciation of international laws. This can be developed during your undergraduate or master’s degree and on the BPTC.