A Study Of Legal Risks Of Domestic Shipbuilders And Countermeasures Under The Financial Crisis

Under the rigorous situation of global financial crisis since 2008, the booming of domestic shipbuilders was lagged and the whole industry-especially in the fields of ship building, repairing and disassembling-has been trapped in imperious problems and confronted with severe challenges. Then, how to deal with these emerging difficulties, in particular, how to cope with legal risks arising from the new condition under global financial crisis? In this paper, the author will focus on this topic and draw out some conclusions from this study.This paper includes three parts as follows. First part is the analysis of legal risks and legal remedies in respect of shipbuilding contracts under the background of global economic crisis. Firstly, according to their various legal statuses, the author tried to elaborate the rights and obligations of shipyards as contracting parties. Secondly, the author managed to investigate every possible legal risk as well as discover its cause of formulation for shipyards in each moment of making and fulfillment shipbuilding contracts. And finally, assisted by a meticulous interpretation of legal clauses, the author attempted to draw out the possible legal remedies for the sake of shipyards. The second part is the analysis of legal risks and legal remedies about ship repairing contracts. By analyzing the possible legal risks and disputes for shipyards to implement the possessory lien, ship mortgage and ship arrest in practice, the author hoped to provide shipyards with several feasible suggestions to keep away all these risks and finally to assure the collection of repair charge. The third part is the analysis of legal risks and remedies on ship disassembling contracts. In this part, on one side, the author pointed out the potential environment pollution responsibilities for the ship-breaking yards in the light of related domestic laws; and on the other side, the author emphasized the present challenge and suggested the counter-measure for the domestic ship-breaking industry under the stipulation of newborn International Convention on the Recycling of Ships.