Study Of Some Issues On 'Employment And Indemnity Clause' In Time Charter

'Employment and Indemnity Clause' means that,under time charter,vessel is run and operated by charterer,and master is employed by shipowner,whereas the master is obliged to obey the charterer' orders and direction in relation to the employment of the vessel,therefore,the owner has a right of indemnity from the charterer for loss arisen in the course of the master compliance with the charterer' orders and direction.'Employment' refers to that charterer has a right to give master orders and direction as to the employment of the vessel,including where the vessel bounder for, what goods and how much to load,etc.,whereas orders and direction given by charterer cannot intervene in matters of navigation and safety of vessel.Save orders and direction given by charterer himself,this thesis also analyzes whether vessels' port agents,port authorities,bunker suppliers,and even merchants have rights to order or direct master in accordance with this clause.An valid order or direction given by charterer in according to 'Employment and Indemnity Clause' shall satisfy several qualifications,viz.,the order or direction should not conflict with master's traditional rights with respect to matters of navigation and safety of vessels,the order or direction which charterer has right to give in according to time charter,the order or direction is equitable,reasonable and legitimate,besides,the order or direction should be able to serviced to master so that he can learn of it.'Indemnity' refers to that shipowner has a right of indemnity from charterer for loss of vessel or other economic loss of the shipowner arisen in the course of master compliance with charterer' orders and direction which the charter is entitled to give.CMC merely provides that orders or direction given to master with respect to the operation of the vessel shall not be inconsistent with the stipulations of the time charter in the article 136,but provides nothing with regard to indemnity.Under English law, when loss of vessel or other economic loss of shipowner arisen in the course of master compliance with charterer's orders and direction which the charter is entitled to give, the shipowner will have implied right for indemnity.Not for all loss of vessel or other economic loss of shipowner that he has a right of indemnity from charterer.The shipowner's right should be bound by doctrine of causation and rule of predictability and he should act as reasonable prudent persons and try to minimize their damages.The charterers are not responsible for expenses which should be at the shipowner's cost and loss arisen from risks which the shipowner had agreed to run.