THE REPUBLIC OF LITHUANIA

THE REPUBLIC OF LITHUANIA The republic of lithuania MARITIME SHIPPING LAW CHAPTER ONE GENERAL PROVISIONS Article 1. Purpose and Application of the Law 1. The Maritime Shipping Law of the Republic of Lithuania regulates relations arising in relation to carriage of goods, passengers and luggage on marine ships, also using said ships for towage, salvage operations, and also in relation to technical survey of marine ships. 2. This Law and other statutes enacted on the basis thereof shall not apply to ships sailing under the flag of the navy of the Republic of Lithuania, and also to sporting ships. Article 2. Definitions. When used in this Law: 1. The term “general average” means losses sustained when any extraordinary expenditure or sacrifice is intentionally or reasonably made for the purpose of preserving the ship, freight, and cargo carried on the ship from a peril common to them. 2. The term “ contract of towage at sea” means a contract by which the manager of a ship undertakes, for remuneration, to tow another ship or other floating object. 3. The term “charterparty” means a contract of affreightment whereby an entire ship, or its part, or certain cargo capacity is let to the charterer. The contract is executed by a document called charter. 4. The term “demurrage” means the amount of money paid to the ship manager by the charterer or receiver as liquidated damages for delay beyond the lay days due to the causes beyond the charterer’s or receiver’s control. 5. The term “dispatch money” means money payable by the ship manager to the charterer or receiver for any time saved in loading or discharging. 6. The term “average statement “ means the document where the total amount of losses and the apportionment thereof among ship, cargo and freight is recorded. 7. The term “average adjuster” means an expert who produces the average statement. 8. The term “freight” means transportation charges payable to the ship manager for cargo carried by ship. 9. The term “chartering” means letting of the entire ship or some part of it for carriage of goods by sea. 10. The term “charterer” means the person who is making a contract of affreightment of a ship with the ship manager. 11. The term “seaman” means a member of the ship’s crew employed on board the ship. 12. The term “sea cruise contract” means a contract whereby the cruise organiser obligates himself to arrange for the passengers a sea voyage following a certain programme and to provide related services to the participants, whereas the participants in the sea voyage obligate themselves to pay the organiser the charges in the fixed amount. 13. The term “contract of carriage of a passenger by sea” means a contract whereby the carrier undertakes to carry the passenger and his luggage to the point of destination, whereas the passenger undertakes to pay the passage money and the charge for the carriage of luggage as provided for. 14. The term “bill of lading” means a document issued by the carrier to the shipper which is the proof of the conclusion of the contract of carriage of goods by sea and receipt of goods and also of the carrier’s undertaking to carry the goods to the place of destination and to deliver them to the person named in the bill of lading or to the person who presents the bill of lading. 15. The term “consignee” means the person entitled to receive goods. 16. The term “contract of carriage of goods by sea” means a contract whereby the carrier undertakes to carry goods by sea from one port to another for the established remuneration. 17. The term “shipper” means the person who has concluded with the carrier the contract of carriage of goods by sea. 18. The term “ship” means any self-propelled or non-selfpropelled floating structure having its own name, crew and sailing under the state flag. 19. The term “the ship’s crew” means the master and other seamen engaged on board the ship in the operation of the ship or provision of services and whose names are on the list of crew. 20. The term “mortgage of ship” means securing the repayment of outstanding or future liabilities. 21 The term “contract of lease with option to purchase” means a contract whereby the shipowner undertakes to provide a ship on a demise charter basis for a specified period to the lessee with option to purchase. 22. The term “chartering contract” means a contract whereby the ship manager undertakes to provide the charterer the entire ship or its part to carry the goods by sea, whereas the carrier undertakes to use the ship according to the contract and to redeliver the ship upon the termination of the contract. 23. The term “shipmaster” means a seaman having command of the crew and charge of the ship. 24. The term “ship manager” means a person who manages the ship, regardless of whether he is the shipowner or makes use thereof based on any other legal grounds. 25. The term “shipowner” means a person who owns the ship. 26. The term “carrier” means the company which enters into a contract of carriage by sea. Article 3. Carriage and Towage at Sea 1. Carriage and towage between ports of the Republic of Lithuania (coastal shipping) shall be effected by ships sailing under the state flag of Lithuania. 2. Carriage and towage between ports of the Republic of Lithuania and foreign ports (international traffic) may be effected by ships sailing under the state flag of Lithuania and by ships sailing under a foreign flag. Article 4. State Management of Merchant Shipping 1. State management of merchant shipping in the Republic of Lithuania shall be carried out by the Ministry of Transport within the limits of its competence. 2. The Ministry of Transport shall issue, based on this Law, other legal statutes and treaties to which the Republic of Transport Lithuania is a party, binding legal acts on the merchant shipping matters and shall supervise the implementation thereof through its subordinate bodies. 3. Technical survey of sea ships sailing under the state flag of Lithuania shall be conducted on behalf of the Republic of Lithuania and their classification shall be made by internationally recognised classification companies. Article 5. Legal Statutes Applied to Merchant Shipping 1. Legal statutes of the Republic of Lithuania and other legislation shall be applicable to the ships registered in the Republic of Lithuania and located outside the boundaries of the territory of the Republic of Lithuania to the extent they do not contradict the legislation of the state in whose territory said ships are located or unless this Law provides otherwise. 2. Legal statutes of foreign states shall be applicable to the ships of said states within the territory of the Republic of Lithuania provided that said statutes do not contradict the requirements of the legal acts of the Republic of Lithuania. 3. Should the treaties to which the Republic of Lithuania is a party prescribe other rules than those laid down by the legislation of the Republic of Lithuania regulating the relations of merchant shipping, the provisions of the treaties and international conventions shall apply. 4. The right of ownership to the ship sailing beyond the territorial boundaries of the Republic of Lithuania shall be determined based on the laws of the state whose flag the ship is sailing under. The right of ownership to the ship being built shall br determined on the basis of the laws of the state where the ship is being built, unless the ship building contract provides otherwise. 5. The legal status of the ship’s crew shall be determined by the legal statutes of the state whose flag the ship is sailing under. The relations between the ship’s crew and the ship manager shall be determined by the legal acts of the state whose flag the ship is sailing under, unless the agreement regulating said relations provides otherwise. 6. The right to the property (the ship, its wreckage, equipment, cargo, etc.) sunken within the internal waters or territorial sea waters, and also the relations arising because of the property shall be regulated by the laws of the state within whose territory the property lies. In case of a ship sunken in open sea, the laws applicable to it shall be those of the state under whose flag she has been sailing. 7. Relations with regard to the carriage of goods by sea shall be regulated by the laws referred to by the parties to the contract of carriage of goods by sea. Unless the parties to the contract agree otherwise, the relations relating to the carriage of goods by sea shall be regulated by the laws of the carrier’s state. 8. Relations with regard to the carriage of passengers and luggage by sea shall be regulated by the regulations of the carrier’s state, unless the parties agree otherwise. 9. Relations regarding the chartering of the ship shall be regulated by the laws of the shipowner’s country, whereas relations with regard to the contract of lease with option to purchase shall be regulated by the laws of the lessor’s country, unless the parties agree otherwise. 10. Relations with regard to the contract of towage at sea shall be regulated by the laws of the country of conclusion of the contract, unless the parties agree otherwise. 11. Relations with regard to the general average shall be regulated by the laws of the country in whose seaport the ship completed her voyage following the event which had caused general average. If the persons who sustained losses by reason of general average come from one state, the laws of the state shall apply. In case the general average has to be apportioned in the Republic of Lithuania, the apportionment shall be effected under this Law. 12. Relations with respect to the collision of ships in the territorial sea shall be regulated by the laws of the country in whose territorial sea the collision took place. In case the ships collided in the open sea, and the dispute is being considered in the Republic of Lithuania, the regulations laid down in this Law shall apply. If the ships in collision were sailing under the Lithuanian state flag, this Law shall be applicable regardless of the place of the collision. 13. If the ship caused losses for the indemnification whereof the rules set out in paragraph 12 hereof are not applicable, the losses caused by the ship shall be made good in accordance with the laws of the state in whose territory the event which caused the losses compensation whereof is demanded occurred, and in case the losses were caused in the open sea, they shall be made good in accordance with the laws of the state under whose flag the ship which caused the losses is sailing. 14. Laws of the state in whose territory the salvage services were rendered shall apply to relations in respect of remuneration for salvage at sea. If salvage services were rendered in open sea and the dispute is considered in the Republic of Lithuania, the provisions of this Law shall apply, unless the parties had agreed otherwise. The laws of the state under whose flag the ship was sailing shall be applied when distributing the remuneration among the manager and the crew of the ship used for salvage operations and also among the individual members of the ship’s crew. 15. Agreements provided for by this Law may stipulate conditions regarding the application of foreign merchant shipping laws and customs, provided this does not annul or limit the carrier’s liability prescribed by this Law for harm caused to the passengers’ health or life, or for the loss of or damage to cargo or luggage. 16. Property dispute related to merchant shipping involving a foreign state natural or legal person may, by agreement between the parties, be referred for consideration to the court or arbitration of the foreign state. 17. Provisions of civil, administrative, labour and other laws of the Republic of Lithuania shall apply accordingly to civil and administrative relations and also those related to work on board the ship and other legal relations, arising from marine shipping and not falling within the sphere of regulation of this Law. CHAPTER TWO THE SHIP Article 6. General Provisions 1. Ships may be in the ownership of the State of Lithuania, and legal or natural persons. 2. A ship must have her own name given to her by the ship’s owner in the manner laid down by the Ministry of Transport of the Republic of Lithuania. 3. A ship shall be permitted to sail after it has been established that she satisfies the requirements of safe navigation. 4. Conditions to be satisfied by ships of internal navigation and ships proceeding into the sea also the limits of the areas of sea navigation of such ships shall be determined by the Ministry of Transport. 5. Ships which discharge, on the authorisation of the Government of the Republic of Lithuania, the obligations of the state of Lithuania may not be seized, mortgaged or transferred to anyone. Claims relative to the damage caused by the above ships shall be filed with the Government of the Republic of Lithuania. Article 7. The Ship’s Flag 1. The right to sail under the state flag of Lithuania shall be granted to ships which are entered in the Register of Ships of the Republic of Lithuania or in the ship book. 2. A ship acquired abroad shall enjoy the right to sail under the state flag of Lithuania from the time a temporary certificate is issued by the consul of the Republic of Lithuania confirming such right. The temporary certificate shall be valid until the ship is entered into the Register of Ships of the Republic of Lithuania or registered in the ship book, but for not longer than one year. 3. Persons guilty of displaying the state flag of Lithuania on a ship lacking the right to such flag shall be held liable under the laws of the Republic of Lithuania. 4. Together with the state flag of Lithuania other flags may be also be displayed on a ship in the manner prescribed by the legal statutes of the Republic of Lithuania. Article 8. Registration of a Ship 1. Ships shall be registered by entering the information thereon in the Register of Ships of the Republic of Lithuania or in the ship book. 2. The Ship Registration Regulations shall be approved by the Government of the Republic of Lithuania. 3. Ships which are subject to technical survey carried out by internationally recognised classification companies shall be entered in the Register of Ships of the Republic of Lithuania. Other ships shall be registered in the ship book of the Republic of Lithuania. 4. Ships shall be registered in the Register of Ships of the Republic of Lithuania or the ship book provided that the shipowner is a citizen of the Republic of Lithuania, an enterprise registered in the Republic of Lithuania, the State of Lithuania or a municipality and if the ship has the documents specified in the Ship Registration Regulations. 5. When a ship is hired on a demise charter basis, it shall be registered in a special register of ships of the Republic of Lithuania or ship book. Article 9. Ship’s Papers 1. A ship must have the following ship’s papers (the original): 1) a certificate of the right to sail under the state flag of the Republic of Lithuania; 2) a certificate of the right of ownership of the ship (certificate of registry) or its notarised copy; 3) a certificate of seaworthiness; 4) a certificate of measurements for ships subject to technical survey by an internationally recognised classification company; 5) the list of the members of the ship’s crew; 6) the ship’s log; 7) the engine-room log (for ships with mechanical engines); 8) the sanitary certification; 9) the deratting certificate; 10) the civil liability for oil pollution certificate (for tankers); 11) a licence certificate, if the ship carries more than 12 passengers and the passenger list; 12) a licence to use the ship’s radio station and a wireless log, if the ship has a ship’s radio station; 13) a load-mark certificate. 2. A ship registered in the ship book must have a ship’s letter instead of the papers mentioned in subparagraphs 1 and 2 of paragraph 1 hereof . A ship departing on a foreign voyage must, in addition to the papers specified herein, have the papers provided for by the international treaties to which the Republic of Lithuania is a party or by other statutes of the Maritime Law, compliance with which is obligatory on other grounds. 3. A ship sailing in port or coastal sea waters need not have a ship’s engine-room log, unless the shipowner establishes otherwise. 4. Recognition of the papers of a ship sailing under a foreign flag and visiting a port of the Republic of Lithuania shall be granted on the basis of international treaties to which the Republic of Lithuania is a party. Article 10. Issue of the Ship’s Papers 1. A certificate of the right to sail under the state flag of the Republic of Lithuania and a certificate of the right of ownership of the ship (certificate of registry) or a ship’s letter shall be issued in the port where the ship is entered into the Register of Ships of the Republic of Lithuania or in the ship book. The procedure for issuing the above papers shall be laid down by the Government of the Republic of Lithuania. 2. The procedure for issuing the certificate of measurements, a licence certificate, a licence to use the ship’s radio station, a load-mark certificate, also the ship’s papers provided for by the international treaties to which the Republic of Lithuania is a party shall be specified by the Ministry of Transport. 3. The list of the members of the ship’s crew, the ship’s log, the engine-room log, passenger list shall be kept in the manner prescribed by the Ministry of Transport. 4. The ship’s sanitary certification and the deratting certificate shall be issued in the manner laid down by the Ministry of Health. 5. A certificate of seaworthiness shall be issued by the internationally recognised classification company which carries out the ship’s technical survey. 6. A fee shall be payable for the issue of the papers specified herein. CHAPTER THREE THE SHIP’S CREW Article 11. Composition of the Ship’s Crew 1. The minimum strength of the crew required for ships to be permitted to put out to sea shall be defined by the Ministry of Transport. The ship manager shall be responsible for adequate remanning of the crew. 2. To qualify for serving as a master, mate, ship’s mechanic, electrician, or radio specialist it is necessary to have the respective rank diploma. The procedure of assignment to such ranks shall be laid down by the Ministry of Transport. 3. No member of the ship’s crew may be appointed without the master’s consent. Article 12. The Master 1. The master shall be appointed and the employment contract shall be concluded with him by the shipowner. In the event of demise chartering the master shall be appointed by the ship manager who shall also conclude with him the contract of employment. 2. The master shall be the ship manager’s representative on board the ship. 3. A person who is 25 years of age and over, has a higher (special secondary) or university diploma of a specialist in navigation, the rank of inshore, home-trade or foreign-going master and the required certification papers, a medical certificate that his health is fit for serving on board the sea-going ships, and having a command of the state language and a foreign language may be the master of a ship. Article 13. The Master’s Rights, Obligations and Responsibility 1. The master shall be the sole commander of the ship. The members of the crew and the passengers shall unconditionally obey the master. The master shall be responsible for the safety of the ship, the ship’s crew, the passengers and the cargo. 2. The master shall act based on the laws and other legal statutes of the Republic of Lithuania and shall supervise compliance with them on board the ship. The master’s orders are obligatory to all those present on board the ship. 3. If the conduct of a person on board endangers the safety of the ship, or of the persons or property on board, the master may place such person in an isolated compartment and confine him there until the arrival of the ship at first port of call of the Republic of Lithuania. Any unlawful confinement in an isolated compartment shall render the master liable in accordance with the laws of the Republic of Lithuania. 4. If, while the ship is on a voyage, an act is committed on board, punishable under the criminal legislation of the Republic of Lithuania, the master, acting in compliance with the criminal procedure legislation and other legal statutes of the Republic of Lithuania, shall perform the functions of the authorities responsible for the preliminary inquiry. 5. The master may detain a person suspected of having committed a crime until his transfer to the competent police officer at the first port of call in the Republic of Lithuania. If necessary, the master may send such person and the records of preliminary inquiry to the Republic of Lithuania on another ship sailing under the state flag of the Republic of Lithuania. 6. If, while the ship is in the port of the Republic of Lithuania, an act is committed on board which is punishable under criminal legislation of the Republic of Lithuania, the master must transfer the person guilty of commission of said act to the police. 7. The master may suspend any member of the crew from the exercise of his official duties if his actions (negligence) may endanger or have endangered the ship’s safe navigation, have created or may create conditions for inflicting any kind of damage on the ship, also on the persons and goods on board. 8. The master shall be the representative of the cargo-owner in concluding transactions with regard to the cargo, also in case of any cargo-related disputes, provided that no other representative of the cargo-owner is available. 9. The master shall record any birth occurring on board in a document drawn up with the participation of two witnesses, the ship’s doctor, or by the medical assistant, provided that they are members of the ship’s crew. An entry to that effect shall be made in the ship’s log. The birth record shall not substitute the birth certificate and must be filed with the civil registration office for the receipt thereof. 10. The master shall attest the will drawn up by a person on board, take it into safekeeping and transfer it to the notary’s office of the testator’s last place of permanent residence. If the testator’s last place of permanent residence or the notary’s office is unknown, the will shall be transferred to the notaries’ chamber of the Republic of Lithuania. 11. The master shall record any death occurring on board in a document drawn up in the participation of two witnesses, the ship’s doctor or the medical assistant, provided they are members of the ship’s crew. An entry to that effect shall be made in the ship’s log. A list of the belongings and documents of the deceased which are on board shall be appended to the death record. The master shall take measures to preserve the belongings of the deceased. On arrival at a port in the Republic of Lithuania the master shall transfer the document recording the death to the civil registration office and the will and the list of the belongings of the deceased - to the notary’s office. Where the ship has to remain on the high seas for a long time and the body of the deceased cannot be preserved, the master shall be entitled to commit the body to the sea in accordance with the maritime custom and shall record such burial in an appropriate document, as well as making a corresponding entry in the ship’s log. 12. If the ship is faced by unavoidable loss, the master shall, after taking every measure to save the passengers, permit the crew to leave the ship. The master shall also do everything in his control to save the ship’s log, the engine log and the wireless log, the charts of the voyage and other papers. The master shall leave the ship last. 13. Disciplinary, administrative, criminal or civil action shall be taken against the master for failure to perform the obligations specified in this Law. CHAPTER FOUR THE CONTRACT OF CARRIAGE OF GOODS BY SEA Article 14. Conclusion of a Contract of Carriage of Goods by Sea 1. A contract of carriage of goods by sea may be concluded: a) with a reservation to provide an entire ship, or part of a ship, or specified compartments of a ship for the carriage of the goods (a charterparty); b) without the reservation specified in subparagraph 1 hereof. 2. The charterparty shall contain the names of the parties, the amount of the freight, the designation of the ship and of the goods, and the place of loading. By agreement between the parties, additional provisions and reservations may be included in the charterparty. The charterparty shall be signed by the ship manager and the charterer or their representatives. 3. The regulations set forth in this Chapter shall be applicable if an agreement between the parties does not provide otherwise. Article 15. Bill of Lading 1. The carrier must issue to the shipper a bill of lading. Bills of lading may be of the following type: straight bills of lading, order bills of lading, bearer bills of lading. 2. Such conditions of the carriage by sea as are not inserted in the bill of lading shall be binding upon the consignee if the bill of lading refers to the document containing them. Article 16. Data Given in the Bill of Lading 1. The bill of lading must carry the following data: 1) the name of the ship; 2) the carrier and the address of his registered office; 3) the name of the shipper; 4) the name of the consignee if specified by the shipper; 5) the port of loading of the goods; 6) the place of destination of the goods; 7) the date of delivery of the goods to the place of destination or the period of carriage, if the parties to the contract have agreed thereon; 8) the designation of the goods, the leading marks necessary for the identification of the goods, the number of pieces and the weight of the goods or the quantity marked in any other manner and, where necessary, data concerning the dangerous nature of the goods, their external condition; 9) the freight and any other payments due to the carrier, or an indication that the freight must be paid according to the conditions of the charterparty, or an indication that the freight has been paid; 10) the time and place of issue of the bill of lading; 11) the number of copies of the bill of lading drawn up, if it is issued in more than one copy; 12) the signature of the master or other representative of the carrier. 2. The absence of in the bill of lading of any particular data specified herein shall not affect the character of the document as a bill of lading provided that it nevertheless meets the requirements set out in Article 2 of this Law. Article 17.   Liability for Inaccuracies in the Data Furnished for Entry in the Bill                                of Lading 1. The data concerning goods shall be recorded in the bill of lading as the data are furnished by the shipper. The shipper must indemnify the carrier for the losses resulting from inaccuracy of the data furnished by him. The carrier’s right to such indemnity shall in no way limit his liability under the contract of carriage to any person other than the shipper of goods. 2. The agreement, whereby the shipper obligates himself to indemnify the carrier for the losses sustained by the latter by reason of the carrier having issued a bill of lading without reservations and without noting the apparent poor condition of the goods, shall be invalid to any third party, the consignee including, to whom the bill of lading has been delivered. Article 18. Transfer of the Bill of Lading 1. The holder of the bill of lading may transfer it to another persons in compliance with the following rules: 1) a straight bill of lading shall be transferred by full endorsement or in other form in accordance with the rules governing the assignment of the debt demand; 2) an order bill of lading shall be transferred by full endorsement or by endorsement in blank; 3) a bearer bill of lading shall be transferred by simple delivery. 2. The shipper shall in due time transfer to the carrier all documents pertaining to the goods, required by the port, customs, sanitary or other administrative regulations, and shall be liable to the carrier for the losses caused by any delay in the transfer of the documents, by their defects or incompleteness. Article 19.   Marking of the Goods, Furnishing of Information on Dangerous                                Goods 1. The shipper must mark the dangerous goods as dangerous and present to the carrier the necessary information of the dangerous character of the goods. 2. Where the shipper hands over dangerous goods to the carrier, the shipper must inform the carrier of the dangerous character of the goods and of the precautions to be taken during the carriage thereof. 3. If the shipper fails to inform the carrier in writing of the dangerous character of the goods: 1) he shall indemnify the carrier for the losses resulting from the shipment of such goods; 2) the goods may at any time be unloaded, destroyed or rendered innocuous, as the circumstances may require, without payment of compensation. Freight for the shipment of such goods shall not be subject to refund. Where it has not been paid, the carrier shall be entitled to recover the due amount. 4. When the carrier takes the goods in his charge having full knowledge of their dangerous character and the dangerous goods become an actual danger to the ship or other goods, the carrier shall have the right to unload, destroy or otherwise render innocuous the dangerous goods without payment of compensation to the shipper for the destroyed goods or goods rendered innocuous in any other way. In this instance the shipper of the dangerous goods shall not indemnify the carrier for the losses sustained as a result of the dangerous goods, except for the contribution in general average. The carrier shall be entitled to a freight the amount whereof shall be proportionate to the distance covered by the ship with dangerous goods on board. Article 20. Packing of Goods Goods requiring a receptacle or a packing to protect them from any loss shall be presented to the carrier in a receptacle or packing which is in good condition and corresponds to international standards, technical conditions or conditions laid down in the contract of carriage of goods by sea. Article 21. Providing a Ship for Carrying Goods 1. Before providing a ship for loading and also before carrying goods the carrier must ensure that: 1) the ship is made seaworthy; 2) the ship is properly supplied and manned; 3) the ship’s holds, refrigerating chambers and other compartments in which the goods are carried are fit for the proper reception, carriage and storage of the goods. 2. If the goods must be carried on a specific ship, they may only be loaded on another ship with the consent of the shipper, except where reloading results from technical necessity arising after the commencement of the loading. Article 22. Stowage of Goods on the Ship 1. The goods shall be stowed on the ship at the discretion of the master. 2. The shipper and carrier of goods may agree on the stowage of goods on the deck of the ship. If the carrier stowed the goods on the deck at his own discretion, he shall be liable for the loss of or damage to the goods or delay in the delivery of the goods to the place of destination if this results from carriage of goods on the deck. Article 23. Freight 1. The amount of the freight shall be established by agreement between the parties to the contract of carriage of goods by sea. In the absence of such agreement the amount of the freight shall be calculated based on the rates applicable in the port to the loading of goods on the day of their loading on board the ship. 2. The carrier shall have the right to refuse delivering the goods to the consignee until the freight or other amounts due to the carrier are paid or guarantees of payment are presented. 3. The freight and other charges due to the carrier shall be paid by the shipper of goods or the charterer if the contract of carriage of goods by sea does not make the consignee liable for said payments. 4. Where the value of the goods loaded does not cover the freight and other expenses of the carrier and the shipper of the goods has not paid the full freight before departure of the ship and has not given payment guarantees, the carrier may cancel the contract of carriage of goods by sea, unload the goods and demand payment to him of half the agreed freight, of the demurrage, if any, and of any other expenses incurred by the carrier in respect of the goods. 5. The full freight shall be payable for the goods lost or damaged in the course of carriage through no fault of the carrier. Where the goods have been lost due to shipwreck or other accident or seizure of the ship by force, no freight shall be payable and if the freight has been paid in advance, it shall be returned. Where the goods are saved, the carrier shall be entitled to freight in proportion to the distance actually covered by the ship with goods on board. 6. Full freight shall be payable for the carriage of goods lost or damaged during the carriage because of their natural properties or as a result of causes which are beyond the carrier’s control. Article 24. Pledging the Goods 1. The carrier shall be entitled to demand that the shipper pledge the goods presented for carriage as a security for the payment of freight and other amounts due to the carrier for the carriage of goods by sea under contract. 2. The agreement for the pledge of goods shall be concluded and implemented in compliance with the norms of the Civil Code of the Republic of Lithuania. 3. Having not received the freight due to him and also other charges under the carriage of goods by sea agreement, the carrier shall have the right to sell the pledged goods upon prior written notice sent to the shipper or charterer and the consignee. 4. If the funds received from the sale of the pledged goods are insufficient for the full satisfaction of the carrier’s claims, the carrier shall have the right to demand that the shipper or the charterer pay the missing amount. Article 25. Repudiation of the Contract of Carriage of Goods by Sea 1. Where an entire ship has been provided to carry the goods, the consignor shall be entitled to repudiate the contract of carriage of the goods by sea on paying: 1) half of the full freight and the demurrage, if any, and any amounts expended by the carrier on account of the goods, which are not included in the freight, if the carrier repudiates the contract before the expiry of the agreed lay days or demurrage time or before the sailing of the ship, whichever is the earlier; 2) the full freight and other amounts mentioned in subparagraph 1 of paragraph 1 hereof, if the shipper repudiates the contract of carriage of goods by sea concluded for one voyage after the expiry of the lay days or demurrage time or after the sailing of the ship; 3) the full freight in respect of the first voyage, other amounts specified in subparagraph 1 of paragraph 1 hereof and half of the freight in respect of other voyages if the shipper repudiates the contract of carriage of goods by sea after the expiry of the lay days or demurrage time or after the sailing of the ship. 2. If the shipper repudiates the contract of carriage before the sailing of the ship, the carrier shall return the goods to him even though the unloading would detain the ship beyond the agreed time limits. 3. If the shipper repudiates the contract of carriage of goods by sea during the voyage, he shall have the right to demand the return of goods only in the port the ship has to enter under the contract of carriage of goods by sea or which she has entered in the event of extreme urgency. 4. Where less than entire ship has been provided to the shipper under the contract of carriage of goods by sea, he may only repudiate the contract upon paying the full freight, the demurrage, if any, and any amounts expended by the carrier on account of the goods, which are not included in the freight. The carrier shall only comply with the shipper’s demand to return the goods before the delivery thereof to the place of destination if this is not detrimental to the carrier and the other shippers. Article 26. Termination of the Contract of Carriage of Goods by Sea 1. Each of the parties to the contract of carriage of goods by sea shall have the right to terminate the contract without indemnifying the other party in any of the following circumstances which occur before the sailing of the ship: 1) acts of war or other activities which may create danger of seizure of the ship and cargo; 2) blockade of the place of departure or of the place of destination of the goods; 3) detention of the ship by order of the authorities for reasons beyond the control of either party to the contract; 4) requisition of the ship for special needs of the state; 5) prohibition by the authorities of export from the place of departure or of import to the place of destination of the goods intended for carriage. 2. Each of the parties to the contract of carriage of goods by sea may in any of the circumstances set out in paragraph 1 hereof terminate the contract during the voyage as well. In this case the shipper shall pay the carrier the freight in the amount proportionate to the distance covered by the ship with the load on board and shall also compensate the carrier for all the expenses incurred by the latter in respect of the cargo. 3. The contract shall be terminated by the parties without any of the parties having to compensate the other for losses arising from the termination of the contract if: 1) the ship is lost or seized by force; 2) the ship is found to be unseaworthy; 3) specifically described goods perish; 4) goods defined by generic characteristics perish after their delivery for loading and the shipper has insufficient time to replace those which perished. 4. In the circumstances specified in paragraph 3 hereof the contract of carriage of goods by sea may also be terminated during the voyage. In such case the carrier shall be paid the freight in proportion to the distance actually covered and also the expenses incurred by the latter in respect of the cargo. Article 27. Carriage of Goods 1. The carrier must carry the goods to the port of destination within the established time limits, and where no such time limits are established in the contract of carriage of goods by sea - within a reasonably necessary time period. 2. Any deviation of the ship from the designated route for the purpose of saving human life, ships and goods at sea, or any other reasonable deviation not caused by the carrier’s misconduct shall not be deemed a violation of the contract of carriage. 3. Where an entire ship has been provided to carry the goods, but owing to prohibition by authorities, acts of the elements, or other causes beyond the carrier’s control the ship cannot enter the port of destination, the carrier shall forthwith notify the shipper of the goods thereof. If within a reasonable time after such notification is dispatched no instructions are received from the shipper as to the unloading of the goods in port, the master shall have the right to unload the goods in one of the nearest ports at his discretion or return the goods to the port of departure, depending on whichever in the opinion of the master seems more advantageous to the shipper. 4. Where less than the entire ship has been provided to carry the goods and the goods may not be delivered to the port of destination for reasons specified in paragraph 3 hereof, the master may, on the instruction of the shipper, unload the cargo in another port. If no instruction regarding the port of unloading is received within three days after the sending of the master’s notification concerning the circumstances which emerged, the master may unload the goods in the nearest port having notified the shipper thereof. The master shall have the right to act similarly also where the shipper’s instruction cannot be fulfilled without causing damage to the owner of other goods on board the ship. 5. The shipper must compensate the carrier for all expenses connected with waiting for his instructions regarding the port of unloading of goods, also all other cargo-related expenses, and must pay the freight in proportion to the distance actually covered by the ship. Article 28. Delivery of Goods 1. At the port of destination the goods shall be delivered: 1) under a straight bill of lading, to the consignee named in the bill of lading or to a person to whom the bill of lading has been transferred by full endorsement or in other form in accordance with the rules governing the assignment of a debt demand; 2) under an order bill of lading, to the shipper or consignee, depending on whether the bill of lading was issued “to the order of the shipper” or “to the order of the consignee”, or, if there are endorsements on the bill of lading - to the last endorsee; 3) under a bearer bill of lading, to the bearer of the bill of lading. 2. The consignee or the carrier shall have the right to demand that the goods be inspected and their quality verified before delivery. The expenses caused thereby shall be borne by the party who demanded inspection. Article 29. Delivery of Goods for Storage 1. Where less than an entire ship has been provided to carry the goods, and at the port of destination the consignee does not claim the goods or refuses to take delivery thereof, the carrier may, on notifying the shipper, store the goods in a warehouse or other safe place at the expense and risk of the shipper. 2. Where an entire ship has been provided to carry the goods and the consignee fails to appear or refuses to take delivery of the goods, the master must forthwith notify the shipper thereof. The unloading and storing of the goods in the port’s warehouse or other safe place at the expense and risk of the shipper shall only be effected by the master on the expiry of the lay days and demurrage time and on condition that the shipper has not, within these time limits, given different instructions. Time spent by the carrier to unload and store the goods shall be regarded as demurrage time to be compensated for to the carrier by the shipper. 3. If, within two months from the day of the ship’s arrival at the port the stored goods are not claimed and the shipper does not pay to the carrier all the sums due in respect of the carriage, the carrier shall have the right to sell the goods. Unclaimed perishable goods may be sold before the expiry of the above mentioned period. Article 30.   Carrier’s Liability for the Loss of, Shortage in, Damage to the Goods                                or Late Delivery thereof 1. The carrier shall be liable for any losses caused by the loss of, shortage in, damage to the goods or late delivery if the circumstances which brought about the loss of, shortage in, or damage to the goods or late delivery thereof emerged when the goods were in the carrier’s care. 2. The goods shall be in the carrier’s care from the moment of loading until the moment of unloading thereof. 3. The goods shall be considered as delivered not on time if they are delivered to the port of destination not within the time limits established by the contract of carriage of goods by sea and in case of absence of such contract - not within the time period reasonably required for the delivery of the goods. 4. The carrier shall not be liable for the losses which occurred due to: 1) force majeure; 2) saving human life, ships and goods; 3) fire, which broke out not through the carrier’s fault; 4) acts or decisions of authorities which prevented the carrier from delivering the goods on time; 5) acts of war or civil commotion; 6) acts or negligence of the shipper or the consignee; 7) defects of the goods, their origin or properties, not discoverable from outside; 8) defective packing and containers of goods; 9) insufficiency of markings; 10) strikes or other circumstances which are beyond the carrier’s control causing stoppage or restraint of labour, whether general or partial. 5. Agreements which are not in compliance with the rules laid down in paragraph 4 hereof shall be invalid except for agreements regarding liability in the periods between the receipt of the goods and their loading, and from their unloading and delivery to the consignee or for storage. 6. The carrier shall not be liable for any shortage in goods if; 1) the goods were carried in the ship’s separate compartments, containers or other cargo spaces under intact seals of the shipper; 2) the goods were delivered in intact receptacles in good repair bearing no traces of having been tampered with during the transit; 3) the goods were accompanied during their carriage by an attendant in service of the shipper or the consignee; 4) the shipper is unable to prove that the shortage in the goods occurred through the fault of the carrier. 7. The carrier shall be liable for the damage caused during the carriage of the goods: 1) for loss of or shortage in goods, to the extent of the real value of the goods lost or short. The carrier shall also return freight received by him, unless it is included in the price of the goods lost or short; 2) for damage to the goods, to the extent of the sum by which their value is decreased. 8. The value of lost or damaged goods shall be ascertained on the basis of the price at the place of destination at the time at which the ship arrived or should have arrived there, and if it is impossible to ascertain the price, then on the basis of the price at the place and time of shipment, plus carriage expenses. Expenses connected with the carriage of the goods (payment of freight, duties, etc.) which should have been incurred by the cargo owner, but have not been incurred due to the loss of, shortage in, or damage to goods, shall be deducted from any compensation for the goods lost or damaged. 9. If the value of goods carried under a bill of lading was not declared and included in the bill of lading, compensation for a lost or damaged unit of the goods may not exceed 700 litas. Any agreement to reduce the amount shall be invalid. If the number of cargo units in the container or other installation used for carrying goods by sea is not specified in the bill of lading, they shall be considered to contain one parcel or one cargo unit. CHAPTER FIVE THE CONTRACT OF CARRIAGE OF PASSENGERS BY SEA Article 31. The Contract of Carriage of Passengers by Sea 1. The carriage covers the time during which the passenger is on board the ship, the time of embarkation and disembarkation, and the time during which the passenger is being conveyed by water from the shore to the ship and vice versa, if the charge for such conveyance is included in the price of the ticket or the ship used for such conveyance is provided by the carrier. 2. The carrier shall issue the passenger with a ticket which shall serve as evidence of conclusion of the contract. A luggage receipt shall be issued to the passenger to certify that his luggage has been received for carriage. 3. The passenger may not transfer to a third person without the carrier’s consent the rights conferred to him under the contract of carriage of passengers by sea. 4. The rules of carriage of passengers and luggage by sea shall be approved by the Ministry of Transport. 5. The provisions of this Chapter shall be applicable unless the parties determine otherwise. However, such agreement may not restrict the passenger’s rights specified in this Chapter. Article 32. Provision of a Ship for Carrying Passengers 1. Before providing a ship for carrying passengers and during the carriage, the carrier must show due diligence to: 1) make the ship seaworthy; 2) properly supply and man the ship; 3) properly equip the compartments and sections used for the carriage of passengers, their embarkation and disembarkation; 4) make the list of passengers on board the ship and enter the data on them in the passengers’ register. The passengers’ register shall be kept in accordance with the Regulations of Carriage by Sea of Passengers and Luggage . 2. The carrier shall have the right to postpone the sailing of the ship, to deviate from the course of the voyage by sea, or the place of embarkation or disembarkation where such acts are necessitated by a natural calamity effects, hostile sanitary or epidemiological conditions at the port of departure or arrival or on route, and also by other perils and circumstances which are beyond the carrier’s control and hinder compliance with the contract of carriage of passengers by sea. Article 33.   Repudiation of the Carriage of Passengers by Sea Contract on the                                Passenger’s Initiative 1. At any time before the ship’s departure, and, after the beginning of the voyage, in any port the ship calls at to take in or land passengers, the passenger may repudiate the contract of carriage. 2. The passenger, who has notified the carrier of his repudiation of the contract, may obtain back the passage money and the money paid for the carriage of his luggage in accordance with the procedure laid down in the Regulations of Carriage by Sea of Passengers and Luggage. 3. If the passenger repudiated the contract within the time limits established by the Regulations of Carriage by Sea of Passengers and Luggage, or failed to board the ship by the time of departure owing to his illness, or repudiated the contract before the departure because of the circumstances for which the carrier is responsible, he shall be returned all the amounts paid for his passage and for the carriage of his luggage. Article 34.   Repudiation of the Contract of Carriage of Passengers on the                                Carrier’s Initiative 1. The carrier shall have the right to repudiate the contract of carriage of passengers by sea if any of the following circumstances occur: 1) acts of war or other activities which may endanger the ship and passengers; 2) blockade of the ship’s port of departure or port of destination; 3) detention of the ship by order of the authorities for reasons beyond the control of either party to the contract of carriage of passengers by sea; 4) requisition of the ship for special needs of the state; 5) loss or forcible seizure of the ship; 6) if the ship is found to be unseaworthy. 2. If the carrier repudiates the contract before the departure of the ship, he must return the passenger all the sums the latter has paid for his passage and for the carriage of his luggage, and if the carrier repudiates the contract at the intermediate port, the passenger shall be returned the amount of the fare in proportion to the distance which remains to be covered to the port of destination. 3. In the cases provided for in this Article, the carrier who has repudiated the contract of carriage of passengers by sea must at his own expense carry the passenger, at the latter’s request, to the port of departure. Article 35.   The Carrier’s Liability for Infliction of Death or any Injury to the                                Health of the Passenger, and for any Loss of, Shortage in, or Damage                                to the Luggage 1. The carrier shall be liable under the Civil Code of the Republic of Lithuania for infliction of death or any injury to the health of the passenger. 2. If international agreements to which the Republic of Lithuania is a party prescribes other conditions, procedure and extent of the carrier’s liability for infliction of death or any injury to the health of the passenger, the international agreements shall prevail. 3. The carrier shall be liable for any loss of, shortage in, or damage to the luggage received for carriage and for any delay in its delivery, unless he proves that the loss, shortage, damage or delay occurred through no fault of his. The carrier shall be liable for any loss of, shortage in, or damage to the cabin luggage only where the passenger proves that the loss, shortage, or damage resulted from malice or negligence on the part of the carrier. Luggage not claimed within three months from the day of the ship’s arrival at the port of destination may be sold in accordance with the procedure established by the Regulations of Carriage by Sea of Passengers and Luggage. 4. The carrier shall be liable: 1) for any loss of, shortage in, or damage to luggage received for carriage with value declared, to the extent of the value declared. Where the carrier proves that the declared value exceeds the real value, to the extent of the real value; 2) for any loss of, shortage in, or damage to luggage received for carriage without any value having been declared, for any loss of, shortage in, or damage to hand luggage, to the extent of the value of the lost, missing, or damaged luggage, but not in excess of the limits prescribed by the Regulations of Carriage by Sea of Passengers and Luggage. 3) for any delay in the delivery of luggage, to the extent fixed in the luggage tariff. 5. The carrier shall return the sums paid for the carriage of the lost or damaged luggage. The limitation of payment provided for by subparagraph 2 of paragraph 4 hereof shall not be applicable if it is proved that the losses have been the result of the carrier’s deliberate actions or negligence. Article 36. Cruise Contract 1. Cruise contract shall be executed in the voucher or any other document issued by the cruise organiser to the passenger going on a cruise. 2. The passenger going on a cruise shall have the right to repudiate the cruise contract before the commencement of the cruise. Having notified the organiser of the cruise about the repudiation of the cruise contract, the passenger going on a cruise shall have the right to the refund of the entire amount or part of the sum paid for the cruise in the manner laid down in the contract. If the cruise organiser is not in the position to provide the passenger with accommodation on board the ship specified in the contract or in any other analogous ship, the passenger shall have the right to repudiate the contract and to receive the entire amount paid. 3. The organiser of the cruise shall have the right to repudiate the cruise contract if the circumstance specified in paragraph 1 of Article 34 of this Law occur. 4. Where the cruise organiser repudiates the cruise contract before the ship’s sailing from the port of departure, the passengers going on the cruise shall be refunded the amounts they have paid. Where the cruise organiser repudiates the cruise contract after the sailing of the ship from the port of departure, the passengers shall be returned the amounts paid in proportion to the distance which remains to be covered to the port of destination. The passengers shall also be delivered to the port of departure at the expense of the cruise organiser. 5. Where the duration of the cruise is prolonged because of circumstances that are beyond the carrier’s control, the cruise organiser shall compensate for the losses sustained by reason thereof in relation to the servicing of the passengers on a cruise. CHAPTER SIX CHARTERING AND LEASING OF A SHIP Article 37. Contract of Affreightment of a Ship for a Time 1. The terms and conditions of chartering of a ship for a certain time shall be set forth in the agreement between the ship manager and the charterer. The time-charter shall be concluded in writing. 2. The charterer shall have the right to give orders to the master relating to the use of the ship for the purposes identified in the time-charter contract. 3. Pursuant to the time-charter contract, the ship manager shall deliver to the charterer a manned ship. The charterer shall have no right to give the master orders relating to the internal order on the ship, composition of the ship’s crew, and also operation of the ship. 4. The rules of this Chapter shall apply where the parties do not agree otherwise. Article 38. Demise Charter 1. The terms and conditions of a demise charter shall be set forth in the agreement between the ship manager and the charterer. The charterer who charters a ship on a demise charter basis shall pay all running expenses and also the ship’s insurance expenses. 2 The charterer who charters a ship on a demise charter basis, shall hire the crew which shall be the charterer’s servants and must fulfil his orders. Article 39. Delivery of a Ship to the Charterer 1. The ship manager must deliver the ship to the charterer in the condition which makes her suitable for the purposes identified in the contract. 2. The charterer must operate the ship in compliance with the charter contract conditions. 3. The charterer shall be entitled to conclude, in his name, contracts of carriage by sea, issue bills of lading or other analogous documents. The charterer shall be liable for the obligations arising from the contracts of carriage by sea concluded by him and other documents signed the charterer. Article 40. The Charterer’s Liability 1. The charterer’s liability shall be stipulated by the charter contract. 2. The charterer shall be liable for the losses related to the salvaging of, damage to or loss of the chartered ship, if said losses were sustained through the charterer’s fault. He shall also be liable for the obligations arising from the use of the provided ship. 3. In the event of loss of the provided ship the freight shall be paid for the period until the day of her loss and where it is impossible to establish the day - until the day of receipt of the last message related to the loss of the ship. Article 41. Concluding the Contract of a Ship’s Lease with Option to Purchase 1. The contract of a ship’s lease with option to purchase shall be concluded in writing. The following must be stated in the contract of a ship’s lease with option to purchase: 1) parties to the contract; 2) subject matter of the contract; 3) ship’s name and date of building, class of ship; 4) the ship’s technical and service characteristics (carrying capacity, cargo capacity, speed, etc.); 5) the period of the lease upon the expiry whereof the right of ownership of the ship shall pass to the lessee; 6) the amount and schedule of rent payment; 7) the place and time of transfer of the ship to the lessee; 8) liability of the parties to the contract; 9) other terms and conditions laid down by the parties to the contract. 2. The lessee shall become the manager of the ship and shall hire the ship’s crew, conclude in his name contracts of carriage by sea, pay all running expenses, also the ship’s insurance expenses, and shall be liable for the obligations arising in relation to the use of the chartered ship. Article 42. Delivery of the Ship to a Lessee 1. The shipowner must deliver the ship to the lessee in the condition allowing her to be employed in a manner consistent with the contract of the ship’s lease with option to purchase. 2. The shipowner shall be liable for the defects of the ship which surfaced prior to the ship’s delivery to the lessee if the shipowner failed to notify the latter of the defects when delivering the ship. The lessee shall be entitled for a year’s period after he accepts the ship to file complaints against the shipowner in relation to the defects specified herein. 3. The lessee must take care of the technical condition of the ship and timely carry out repairs. 4. The risk of the ship’s accidental loss or damage to her shall pass on to the lessee …