THE REPUBLIC

LITHUANIA The republic

lithuania MARITIME SHIPPING LAW CHAPTER ONE GENERAL PROVISIONS Article 1. Purpose and Application

the Law 1. The Maritime Shipping Law

the Republic

Lithuania regulates relations arising in relation to carriage

goods, passengers and luggage on marine ships, also using said ships for towage, salvage operations, and also in relation to technical survey

marine ships. 2. This Law and other statutes enacted on the basis thereof shall not apply to ships sailing under the flag

the navy

the Republic

Lithuania, and also to sporting ships. Article

1. Definitions. When used in this Law:
2. The term “general average” means losses sustained when any extraordinary expenditure or sacrifice is intentionally or reasonably made for the purpose

preserving the ship, freight, and cargo carried on the ship from a peril common to them. 2. The term “ contract

towage at sea” means a contract by which the manager

a ship undertakes, for remuneration, to tow another ship or other floating object. 3. The term “charterparty” means a contract

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

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.

1. The term “dispatch money” means money payable by the ship manager to the charterer or receiver for any time saved in loading or discharging.
2. The term “average statement “ means the document where the total amount

losses and the apportionment thereof among ship, cargo and freight is recorded.

1. The term “average adjuster” means an expert who produces the average statement.
2. The term “freight” means transportation charges payable to the ship manager for cargo carried by ship.
3. The term “chartering” means letting

the entire ship or some part

it for carriage

goods by sea. 10. The term “charterer” means the person who is making a contract

affreightment

a ship with the ship manager. 11. The term “seaman” means a member

the ship’s crew employed on board the ship.

1. 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.
2. The term “contract

carriage

a passenger by sea” means a contract whereby the carrier undertakes to carry the passenger and his luggage to the point

destination, whereas the passenger undertakes to pay the passage money and the charge for the carriage

luggage as provided for. 14. The term “bill

lading” means a document issued by the carrier to the shipper which is the proof

the conclusion

the contract

carriage

goods by sea and receipt

goods and also

the carrier’s undertaking to carry the goods to the place

destination and to deliver them to the person named in the bill

lading or to the person who presents the bill

lading.

1. The term “consignee” means the person entitled to receive goods.
2. The term “contract

carriage

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

carriage

goods by sea.

1. The term “ship” means any self-propelled or non-selfpropelled floating structure having its own name, crew and sailing under the state flag.
2. The term “the ship’s crew” means the master and other seamen engaged on board the ship in the operation

the ship or provision

services and whose names are on the list

crew. 20. The term “mortgage

ship” means securing the repayment

outstanding or future liabilities. 21 The term “contract

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

the contract. 23. The term “shipmaster” means a seaman having command

the crew and charge

the ship. 24. The term “ship manager” means a person who manages the ship, regardless

whether he is the shipowner or makes use thereof based on any other legal grounds.

1. The term “shipowner” means a person who owns the ship.
2. The term “carrier” means the company which enters into a contract

carriage by sea. Article

1. Carriage and Towage at Sea
2. Carriage and towage between ports

the Republic

Lithuania (coastal shipping) shall be effected by ships sailing under the state flag

Lithuania. 2. Carriage and towage between ports

the Republic

Lithuania and foreign ports (international traffic) may be effected by ships sailing under the state flag

Lithuania and by ships sailing under a foreign flag. Article 4. State Management

Merchant Shipping 1. State management

merchant shipping in the Republic

Lithuania shall be carried out by the Ministry

Transport within the limits

its competence. 2. The Ministry

Transport shall issue, based on this Law, other legal statutes and treaties to which the Republic

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

sea ships sailing under the state flag

Lithuania shall be conducted on behalf

the Republic

Lithuania and their classification shall be made by internationally recognised classification companies. Article 5. Legal Statutes Applied to Merchant Shipping 1. Legal statutes

the Republic

Lithuania and other legislation shall be applicable to the ships registered in the Republic

Lithuania and located outside the boundaries

the territory

the Republic

Lithuania to the extent they do not contradict the legislation

the state in whose territory said ships are located or unless this Law provides otherwise. 2. Legal statutes

foreign states shall be applicable to the ships

said states within the territory

the Republic

Lithuania provided that said statutes do not contradict the requirements

the legal acts

the Republic

Lithuania. 3. Should the treaties to which the Republic

Lithuania is a party prescribe other rules than those laid down by the legislation

the Republic

Lithuania regulating the relations

merchant shipping, the provisions

the treaties and international conventions shall apply. 4. The right

ownership to the ship sailing beyond the territorial boundaries

the Republic

Lithuania shall be determined based on the laws

the state whose flag the ship is sailing under. The right

ownership to the ship being built shall br determined on the basis

the laws

the state where the ship is being built, unless the ship building contract provides otherwise. 5. The legal status

the ship’s crew shall be determined by the legal statutes

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

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

the property shall be regulated by the laws

the state within whose territory the property lies. In case

a ship sunken in open sea, the laws applicable to it shall be those

the state under whose flag she has been sailing. 7. Relations with regard to the carriage

goods by sea shall be regulated by the laws referred to by the parties to the contract

carriage

goods by sea. Unless the parties to the contract agree otherwise, the relations relating to the carriage

goods by sea shall be regulated by the laws

the carrier’s state. 8. Relations with regard to the carriage

passengers and luggage by sea shall be regulated by the regulations

the carrier’s state, unless the parties agree otherwise. 9. Relations regarding the chartering

the ship shall be regulated by the laws

the shipowner’s country, whereas relations with regard to the contract

lease with option to purchase shall be regulated by the laws

the lessor’s country, unless the parties agree otherwise. 10. Relations with regard to the contract

towage at sea shall be regulated by the laws

the country

conclusion

the contract, unless the parties agree otherwise. 11. Relations with regard to the general average shall be regulated by the laws

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

general average come from one state, the laws

the state shall apply. In case the general average has to be apportioned in the Republic

Lithuania, the apportionment shall be effected under this Law. 12. Relations with respect to the collision

ships in the territorial sea shall be regulated by the laws

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

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

the place

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

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

the state under whose flag the ship which caused the losses is sailing. 14. Laws

the state in whose territory the salvage services were rendered shall apply to relations in respect

remuneration for salvage at sea. If salvage services were rendered in open sea and the dispute is considered in the Republic

Lithuania, the provisions

this Law shall apply, unless the parties had agreed otherwise. The laws

the state under whose flag the ship was sailing shall be applied when distributing the remuneration among the manager and the crew

the ship used for salvage operations and also among the individual members

the ship’s crew. 15. Agreements provided for by this Law may stipulate conditions regarding the application

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

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

the foreign state. 17. Provisions

civil, administrative, labour and other laws

the Republic

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

regulation

this Law. CHAPTER TWO THE SHIP Article

1. General Provisions
2. Ships may be in the ownership

the State

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

Transport

the Republic

Lithuania. 3. A ship shall be permitted to sail after it has been established that she satisfies the requirements

safe navigation. 4. Conditions to be satisfied by ships

internal navigation and ships proceeding into the sea also the limits

the areas

sea navigation

such ships shall be determined by the Ministry

Transport. 5. Ships which discharge, on the authorisation

the Government

the Republic

Lithuania, the obligations

the state

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

the Republic

Lithuania. Article

1. The Ship’s Flag
2. The right to sail under the state flag

Lithuania shall be granted to ships which are entered in the Register

Ships

the Republic

Lithuania or in the ship book. 2. A ship acquired abroad shall enjoy the right to sail under the state flag

Lithuania from the time a temporary certificate is issued by the consul

the Republic

Lithuania confirming such right. The temporary certificate shall be valid until the ship is entered into the Register

Ships

the Republic

Lithuania or registered in the ship book, but for not longer than one year. 3. Persons guilty

displaying the state flag

Lithuania on a ship lacking the right to such flag shall be held liable under the laws

the Republic

Lithuania. 4. Together with the state flag

Lithuania other flags may be also be displayed on a ship in the manner prescribed by the legal statutes

the Republic

Lithuania. Article 8. Registration

a Ship 1. Ships shall be registered by entering the information thereon in the Register

Ships

the Republic

Lithuania or in the ship book. 2. The Ship Registration Regulations shall be approved by the Government

the Republic

Lithuania. 3. Ships which are subject to technical survey carried out by internationally recognised classification companies shall be entered in the Register

Ships

the Republic

Lithuania. Other ships shall be registered in the ship book

the Republic

Lithuania. 4. Ships shall be registered in the Register

Ships

the Republic

Lithuania or the ship book provided that the shipowner is a citizen

the Republic

Lithuania, an enterprise registered in the Republic

Lithuania, the State

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

ships

the Republic

Lithuania or ship book. Article

1. Ship’s Papers
2. A ship must have the following ship’s papers (the original): 1) a certificate

the right to sail under the state flag

the Republic

Lithuania; 2) a certificate

the right

ownership

the ship (certificate

registry) or its notarised copy; 3) a certificate

seaworthiness; 4) a certificate

measurements for ships subject to technical survey by an internationally recognised classification company; 5) the list

the members

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

the papers mentioned in subparagraphs 1 and 2

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

Lithuania is a party or by other statutes

the Maritime Law, compliance with which is obligatory on other grounds.

1. A ship sailing in port or coastal sea waters need not have a ship’s engine-room log, unless the shipowner establishes otherwise.
2. Recognition

the papers

a ship sailing under a foreign flag and visiting a port

the Republic

Lithuania shall be granted on the basis

international treaties to which the Republic

Lithuania is a party. Article 10. Issue

the Ship’s Papers 1. A certificate

the right to sail under the state flag

the Republic

Lithuania and a certificate

the right

ownership

the ship (certificate

registry) or a ship’s letter shall be issued in the port where the ship is entered into the Register

Ships

the Republic

Lithuania or in the ship book. The procedure for issuing the above papers shall be laid down by the Government

the Republic

Lithuania. 2. The procedure for issuing the certificate

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

Lithuania is a party shall be specified by the Ministry

Transport. 3. The list

the members

the ship’s crew, the ship’s log, the engine-room log, passenger list shall be kept in the manner prescribed by the Ministry

Transport. 4. The ship’s sanitary certification and the deratting certificate shall be issued in the manner laid down by the Ministry

Health. 5. A certificate

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

the papers specified herein. CHAPTER THREE THE SHIP’S CREW Article 11. Composition

the Ship’s Crew 1. The minimum strength

the crew required for ships to be permitted to put out to sea shall be defined by the Ministry

Transport. The ship manager shall be responsible for adequate remanning

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

assignment to such ranks shall be laid down by the Ministry

Transport. 3. No member

the ship’s crew may be appointed without the master’s consent. Article

1. The Master
2. The master shall be appointed and the employment contract shall be concluded with him by the shipowner. In the event

demise chartering the master shall be appointed by the ship manager who shall also conclude with him the contract

employment.

1. The master shall be the ship manager’s representative on board the ship.
2. A person who is 25 years

age and over, has a higher (special secondary) or university diploma

a specialist in navigation, the rank

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

the state language and a foreign language may be the master

a ship. Article

1. The Master’s Rights, Obligations and Responsibility
2. The master shall be the sole commander

the ship. The members

the crew and the passengers shall unconditionally obey the master. The master shall be responsible for the safety

the ship, the ship’s crew, the passengers and the cargo. 2. The master shall act based on the laws and other legal statutes

the Republic

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

a person on board endangers the safety

the ship, or

the persons or property on board, the master may place such person in an isolated compartment and confine him there until the arrival

the ship at first port

call

the Republic

Lithuania. Any unlawful confinement in an isolated compartment shall render the master liable in accordance with the laws

the Republic

Lithuania. 4. If, while the ship is on a voyage, an act is committed on board, punishable under the criminal legislation

the Republic

Lithuania, the master, acting in compliance with the criminal procedure legislation and other legal statutes

the Republic

Lithuania, shall perform the functions

the authorities responsible for the preliminary inquiry. 5. The master may detain a person suspected

having committed a crime until his transfer to the competent police

ficer at the first port

call in the Republic

Lithuania. If necessary, the master may send such person and the records

preliminary inquiry to the Republic

Lithuania on another ship sailing under the state flag

the Republic

Lithuania. 6. If, while the ship is in the port

the Republic

Lithuania, an act is committed on board which is punishable under criminal legislation

the Republic

Lithuania, the master must transfer the person guilty

commission

said act to the police. 7. The master may suspend any member

the crew from the exercise

his

ficial 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

damage on the ship, also on the persons and goods on board. 8. The master shall be the representative

the cargo-owner in concluding transactions with regard to the cargo, also in case

any cargo-related disputes, provided that no other representative

the cargo-owner is available. 9. The master shall record any birth occurring on board in a document drawn up with the participation

two witnesses, the ship’s doctor, or by the medical assistant, provided that they are members

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

fice 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

fice

the testator’s last place

permanent residence. If the testator’s last place

permanent residence or the notary’s

fice is unknown, the will shall be transferred to the notaries’ chamber

the Republic

Lithuania. 11. The master shall record any death occurring on board in a document drawn up in the participation

two witnesses, the ship’s doctor or the medical assistant, provided they are members

the ship’s crew. An entry to that effect shall be made in the ship’s log. A list

the belongings and documents

the deceased which are on board shall be appended to the death record. The master shall take measures to preserve the belongings

the deceased. On arrival at a port in the Republic

Lithuania the master shall transfer the document recording the death to the civil registration

fice and the will and the list

the belongings

the deceased - to the notary’s

fice. Where the ship has to remain on the high seas for a long time and the body

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

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

CARRIAGE

GOODS BY SEA Article 14. Conclusion

a Contract

Carriage

Goods by Sea 1. A contract

carriage

goods by sea may be concluded: a) with a reservation to provide an entire ship, or part

a ship, or specified compartments

a ship for the carriage

the goods (a charterparty); b) without the reservation specified in subparagraph 1 hereof. 2. The charterparty shall contain the names

the parties, the amount

the freight, the designation

the ship and

the goods, and the place

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.

1. The regulations set forth in this Chapter shall be applicable if an agreement between the parties does not provide otherwise. Article
2. Bill

Lading 1. The carrier must issue to the shipper a bill

lading. Bills

lading may be

the following type: straight bills

lading, order bills

lading, bearer bills

lading. 2. Such conditions

the carriage by sea as are not inserted in the bill

lading shall be binding upon the consignee if the bill

lading refers to the document containing them. Article 16. Data Given in the Bill

Lading 1. The bill

lading must carry the following data: 1) the name

the ship; 2) the carrier and the address

his registered

fice; 3) the name

the shipper; 4) the name

the consignee if specified by the shipper; 5) the port

loading

the goods; 6) the place

destination

the goods; 7) the date

delivery

the goods to the place

destination or the period

carriage, if the parties to the contract have agreed thereon; 8) the designation

the goods, the leading marks necessary for the identification

the goods, the number

pieces and the weight

the goods or the quantity marked in any other manner and, where necessary, data concerning the dangerous nature

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

the charterparty, or an indication that the freight has been paid; 10) the time and place

issue

the bill

lading; 11) the number

copies

the bill

lading drawn up, if it is issued in more than one copy; 12) the signature

the master or other representative

the carrier. 2. The absence

in the bill

lading

any particular data specified herein shall not affect the character

the document as a bill

lading provided that it nevertheless meets the requirements set out in Article 2

this Law. Article 17. Liability for Inaccuracies in the Data Furnished for Entry in the Bill

Lading 1. The data concerning goods shall be recorded in the bill

lading as the data are furnished by the shipper. The shipper must indemnify the carrier for the losses resulting from inaccuracy

the data furnished by him. The carrier’s right to such indemnity shall in no way limit his liability under the contract

carriage to any person other than the shipper

goods. 2. The agreement, whereby the shipper obligates himself to indemnify the carrier for the losses sustained by the latter by reason

the carrier having issued a bill

lading without reservations and without noting the apparent poor condition

the goods, shall be invalid to any third party, the consignee including, to whom the bill

lading has been delivered. Article 18. Transfer

the Bill

Lading 1. The holder

the bill

lading may transfer it to another persons in compliance with the following rules: 1) a straight bill

lading shall be transferred by full endorsement or in other form in accordance with the rules governing the assignment

the debt demand; 2) an order bill

lading shall be transferred by full endorsement or by endorsement in blank; 3) a bearer bill

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

the documents, by their defects or incompleteness. Article 19. Marking

the Goods, Furnishing

Information on Dangerous Goods 1. The shipper must mark the dangerous goods as dangerous and present to the carrier the necessary information

the dangerous character

the goods. 2. Where the shipper hands over dangerous goods to the carrier, the shipper must inform the carrier

the dangerous character

the goods and

the precautions to be taken during the carriage thereof. 3. If the shipper fails to inform the carrier in writing

the dangerous character

the goods: 1) he shall indemnify the carrier for the losses resulting from the shipment

such goods; 2) the goods may at any time be unloaded, destroyed or rendered innocuous, as the circumstances may require, without payment

compensation. Freight for the shipment

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

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

compensation to the shipper for the destroyed goods or goods rendered innocuous in any other way. In this instance the shipper

the dangerous goods shall not indemnify the carrier for the losses sustained as a result

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

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

carriage

goods by sea. Article

1. Providing a Ship for Carrying Goods
2. 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

the goods. 2. If the goods must be carried on a specific ship, they may only be loaded on another ship with the consent

the shipper, except where reloading results from technical necessity arising after the commencement

the loading. Article 22. Stowage

Goods on the Ship 1. The goods shall be stowed on the ship at the discretion

the master. 2. The shipper and carrier

goods may agree on the stowage

goods on the deck

the ship. If the carrier stowed the goods on the deck at his own discretion, he shall be liable for the loss

or damage to the goods or delay in the delivery

the goods to the place

destination if this results from carriage

goods on the deck. Article

1. Freight
2. The amount

the freight shall be established by agreement between the parties to the contract

carriage

goods by sea. In the absence

such agreement the amount

the freight shall be calculated based on the rates applicable in the port to the loading

goods on the day

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

payment are presented. 3. The freight and other charges due to the carrier shall be paid by the shipper

goods or the charterer if the contract

carriage

goods by sea does not make the consignee liable for said payments. 4. Where the value

the goods loaded does not cover the freight and other expenses

the carrier and the shipper

the goods has not paid the full freight before departure

the ship and has not given payment guarantees, the carrier may cancel the contract

carriage

goods by sea, unload the goods and demand payment to him

half the agreed freight,

the demurrage, if any, and

any other expenses incurred by the carrier in respect

the goods. 5. The full freight shall be payable for the goods lost or damaged in the course

carriage through no fault

the carrier. Where the goods have been lost due to shipwreck or other accident or seizure

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

goods lost or damaged during the carriage because

their natural properties or as a result

causes which are beyond the carrier’s control. Article

1. Pledging the Goods
2. The carrier shall be entitled to demand that the shipper pledge the goods presented for carriage as a security for the payment

freight and other amounts due to the carrier for the carriage

goods by sea under contract. 2. The agreement for the pledge

goods shall be concluded and implemented in compliance with the norms

the Civil Code

the Republic

Lithuania. 3. Having not received the freight due to him and also other charges under the carriage

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

the pledged goods are insufficient for the full satisfaction

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

the Contract

Carriage

Goods by Sea 1. Where an entire ship has been provided to carry the goods, the consignor shall be entitled to repudiate the contract

carriage

the goods by sea on paying: 1) half

the full freight and the demurrage, if any, and any amounts expended by the carrier on account

the goods, which are not included in the freight, if the carrier repudiates the contract before the expiry

the agreed lay days or demurrage time or before the sailing

the ship, whichever is the earlier; 2) the full freight and other amounts mentioned in subparagraph 1

paragraph 1 hereof, if the shipper repudiates the contract

carriage

goods by sea concluded for one voyage after the expiry

the lay days or demurrage time or after the sailing

the ship; 3) the full freight in respect

the first voyage, other amounts specified in subparagraph 1

paragraph 1 hereof and half

the freight in respect

other voyages if the shipper repudiates the contract

carriage

goods by sea after the expiry

the lay days or demurrage time or after the sailing

the ship. 2. If the shipper repudiates the contract

carriage before the sailing

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

carriage

goods by sea during the voyage, he shall have the right to demand the return

goods only in the port the ship has to enter under the contract

carriage

goods by sea or which she has entered in the event

extreme urgency. 4. Where less than entire ship has been provided to the shipper under the contract

carriage

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

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

destination if this is not detrimental to the carrier and the other shippers. Article 26. Termination

the Contract

Carriage

Goods by Sea 1. Each

the parties to the contract

carriage

goods by sea shall have the right to terminate the contract without indemnifying the other party in any

the following circumstances which occur before the sailing

the ship: 1) acts

war or other activities which may create danger

seizure

the ship and cargo; 2) blockade

the place

departure or

the place

destination

the goods; 3) detention

the ship by order

the authorities for reasons beyond the control

either party to the contract; 4) requisition

the ship for special needs

the state; 5) prohibition by the authorities

export from the place

departure or

import to the place

destination

the goods intended for carriage. 2. Each

the parties to the contract

carriage

goods by sea may in any

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

the cargo. 3. The contract shall be terminated by the parties without any

the parties having to compensate the other for losses arising from the termination

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

carriage

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

the cargo. Article 27. Carriage

Goods 1. The carrier must carry the goods to the port

destination within the established time limits, and where no such time limits are established in the contract

carriage

goods by sea - within a reasonably necessary time period. 2. Any deviation

the ship from the designated route for the purpose

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

the contract

carriage. 3. Where an entire ship has been provided to carry the goods, but owing to prohibition by authorities, acts

the elements, or other causes beyond the carrier’s control the ship cannot enter the port

destination, the carrier shall forthwith notify the shipper

the goods thereof. If within a reasonable time after such notification is dispatched no instructions are received from the shipper as to the unloading

the goods in port, the master shall have the right to unload the goods in one

the nearest ports at his discretion or return the goods to the port

departure, depending on whichever in the opinion

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

destination for reasons specified in paragraph 3 hereof, the master may, on the instruction

the shipper, unload the cargo in another port. If no instruction regarding the port

unloading is received within three days after the sending

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

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

unloading

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

Goods 1. At the port

destination the goods shall be delivered: 1) under a straight bill

lading, to the consignee named in the bill

lading or to a person to whom the bill

lading has been transferred by full endorsement or in other form in accordance with the rules governing the assignment

a debt demand; 2) under an order bill

lading, to the shipper or consignee, depending on whether the bill

lading was issued “to the order

the shipper” or “to the order

the consignee”, or, if there are endorsements on the bill

lading - to the last endorsee; 3) under a bearer bill

lading, to the bearer

the bill

lading.

1. 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
2. Delivery

Goods for Storage 1. Where less than an entire ship has been provided to carry the goods, and at the port

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

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

the goods, the master must forthwith notify the shipper thereof. The unloading and storing

the goods in the port’s warehouse or other safe place at the expense and risk

the shipper shall only be effected by the master on the expiry

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

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

the carriage, the carrier shall have the right to sell the goods. Unclaimed perishable goods may be sold before the expiry

the above mentioned period. Article 30. Carrier’s Liability for the Loss

, Shortage in, Damage to the Goods or Late Delivery thereof 1. The carrier shall be liable for any losses caused by the loss

, shortage in, damage to the goods or late delivery if the circumstances which brought about the loss

, 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

loading until the moment

unloading thereof. 3. The goods shall be considered as delivered not on time if they are delivered to the port

destination not within the time limits established by the contract

carriage

goods by sea and in case

absence

such contract - not within the time period reasonably required for the delivery

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

authorities which prevented the carrier from delivering the goods on time; 5) acts

war or civil commotion; 6) acts or negligence

the shipper or the consignee; 7) defects

the goods, their origin or properties, not discoverable from outside; 8) defective packing and containers

goods; 9) insufficiency

markings; 10) strikes or other circumstances which are beyond the carrier’s control causing stoppage or restraint

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

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

the shipper; 2) the goods were delivered in intact receptacles in good repair bearing no traces

having been tampered with during the transit; 3) the goods were accompanied during their carriage by an attendant in service

the shipper or the consignee; 4) the shipper is unable to prove that the shortage in the goods occurred through the fault

the carrier. 7. The carrier shall be liable for the damage caused during the carriage

the goods: 1) for loss

or shortage in goods, to the extent

the real value

the goods lost or short. The carrier shall also return freight received by him, unless it is included in the price

the goods lost or short; 2) for damage to the goods, to the extent

the sum by which their value is decreased. 8. The value

lost or damaged goods shall be ascertained on the basis

the price at the place

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

the price at the place and time

shipment, plus carriage expenses. Expenses connected with the carriage

the goods (payment

freight, duties, etc.) which should have been incurred by the cargo owner, but have not been incurred due to the loss

, shortage in, or damage to goods, shall be deducted from any compensation for the goods lost or damaged. 9. If the value

goods carried under a bill

lading was not declared and included in the bill

lading, compensation for a lost or damaged unit

the goods may not exceed 700 litas. Any agreement to reduce the amount shall be invalid. If the number

cargo units in the container or other installation used for carrying goods by sea is not specified in the bill

lading, they shall be considered to contain one parcel or one cargo unit. CHAPTER FIVE THE CONTRACT

CARRIAGE

PASSENGERS BY SEA Article 31. The Contract

Carriage

Passengers by Sea 1. The carriage covers the time during which the passenger is on board the ship, the time

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

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

conclusion

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

carriage

passengers by sea. 4. The rules

carriage

passengers and luggage by sea shall be approved by the Ministry

Transport. 5. The provisions

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

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

passengers, their embarkation and disembarkation; 4) make the list

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

Carriage by Sea

Passengers and Luggage . 2. The carrier shall have the right to postpone the sailing

the ship, to deviate from the course

the voyage by sea, or the place

embarkation or disembarkation where such acts are necessitated by a natural calamity effects, hostile sanitary or epidemiological conditions at the port

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

carriage

passengers by sea. Article 33. Repudiation

the Carriage

Passengers by Sea Contract on the Passenger’s Initiative 1. At any time before the ship’s departure, and, after the beginning

the voyage, in any port the ship calls at to take in or land passengers, the passenger may repudiate the contract

carriage. 2. The passenger, who has notified the carrier

his repudiation

the contract, may obtain back the passage money and the money paid for the carriage

his luggage in accordance with the procedure laid down in the Regulations

Carriage by Sea

Passengers and Luggage. 3. If the passenger repudiated the contract within the time limits established by the Regulations

Carriage by Sea

Passengers and Luggage, or failed to board the ship by the time

departure owing to his illness, or repudiated the contract before the departure because

the circumstances for which the carrier is responsible, he shall be returned all the amounts paid for his passage and for the carriage

his luggage. Article 34. Repudiation

the Contract

Carriage

Passengers on the Carrier’s Initiative 1. The carrier shall have the right to repudiate the contract

carriage

passengers by sea if any

the following circumstances occur: 1) acts

war or other activities which may endanger the ship and passengers; 2) blockade

the ship’s port

departure or port

destination; 3) detention

the ship by order

the authorities for reasons beyond the control

either party to the contract

carriage

passengers by sea; 4) requisition

the ship for special needs

the state; 5) loss or forcible seizure

the ship; 6) if the ship is found to be unseaworthy. 2. If the carrier repudiates the contract before the departure

the ship, he must return the passenger all the sums the latter has paid for his passage and for the carriage

his luggage, and if the carrier repudiates the contract at the intermediate port, the passenger shall be returned the amount

the fare in proportion to the distance which remains to be covered to the port

destination. 3. In the cases provided for in this Article, the carrier who has repudiated the contract

carriage

passengers by sea must at his own expense carry the passenger, at the latter’s request, to the port

departure. Article 35. The Carrier’s Liability for Infliction

Death or any Injury to the Health

the Passenger, and for any Loss

, Shortage in, or Damage to the Luggage 1. The carrier shall be liable under the Civil Code

the Republic

Lithuania for infliction

death or any injury to the health

the passenger. 2. If international agreements to which the Republic

Lithuania is a party prescribes other conditions, procedure and extent

the carrier’s liability for infliction

death or any injury to the health

the passenger, the international agreements shall prevail. 3. The carrier shall be liable for any loss

, 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

his. The carrier shall be liable for any loss

, 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

the carrier. Luggage not claimed within three months from the day

the ship’s arrival at the port

destination may be sold in accordance with the procedure established by the Regulations

Carriage by Sea

Passengers and Luggage. 4. The carrier shall be liable: 1) for any loss

, shortage in, or damage to luggage received for carriage with value declared, to the extent

the value declared. Where the carrier proves that the declared value exceeds the real value, to the extent

the real value; 2) for any loss

, shortage in, or damage to luggage received for carriage without any value having been declared, for any loss

, shortage in, or damage to hand luggage, to the extent

the value

the lost, missing, or damaged luggage, but not in excess

the limits prescribed by the Regulations

Carriage by Sea

Passengers and Luggage. 3) for any delay in the delivery

luggage, to the extent fixed in the luggage tariff. 5. The carrier shall return the sums paid for the carriage

the lost or damaged luggage. The limitation

payment provided for by subparagraph 2

paragraph 4 hereof shall not be applicable if it is proved that the losses have been the result

the carrier’s deliberate actions or negligence. Article

1. Cruise Contract
2. Cruise contract shall be executed in the voucher or any other document issued by the cruise organiser to the passenger going on a cruise.
3. The passenger going on a cruise shall have the right to repudiate the cruise contract before the commencement

the cruise. Having notified the organiser

the cruise about the repudiation

the cruise contract, the passenger going on a cruise shall have the right to the refund

the entire amount or part

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

the cruise shall have the right to repudiate the cruise contract if the circumstance specified in paragraph 1

Article 34

this Law occur. 4. Where the cruise organiser repudiates the cruise contract before the ship’s sailing from the port

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

the ship from the port

departure, the passengers shall be returned the amounts paid in proportion to the distance which remains to be covered to the port

destination. The passengers shall also be delivered to the port

departure at the expense

the cruise organiser. 5. Where the duration

the cruise is prolonged because

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

the passengers on a cruise. CHAPTER SIX CHARTERING AND LEASING

A SHIP Article 37. Contract

Affreightment

a Ship for a Time 1. The terms and conditions

chartering

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

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

the ship’s crew, and also operation

the ship. 4. The rules

this Chapter shall apply where the parties do not agree otherwise. Article 38. Demise Charter 1. The terms and conditions

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

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

carriage by sea, issue bills

lading or other analogous documents. The charterer shall be liable for the obligations arising from the contracts

carriage by sea concluded by him and other documents signed the charterer. Article

1. The Charterer’s Liability
2. The charterer’s liability shall be stipulated by the charter contract.
3. The charterer shall be liable for the losses related to the salvaging

, damage to or loss

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

the provided ship. 3. In the event

loss

the provided ship the freight shall be paid for the period until the day

her loss and where it is impossible to establish the day - until the day

receipt

the last message related to the loss

the ship. Article 41. Concluding the Contract

a Ship’s Lease with Option to Purchase 1. The contract

a ship’s lease with option to purchase shall be concluded in writing. The following must be stated in the contract

a ship’s lease with option to purchase: 1) parties to the contract; 2) subject matter

the contract; 3) ship’s name and date

building, class

ship; 4) the ship’s technical and service characteristics (carrying capacity, cargo capacity, speed, etc.); 5) the period

the lease upon the expiry whereof the right

ownership

the ship shall pass to the lessee; 6) the amount and schedule

rent payment; 7) the place and time

transfer

the ship to the lessee; 8) liability

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

the ship and shall hire the ship’s crew, conclude in his name contracts

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

the chartered ship. Article 42. Delivery

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

the ship’s lease with option to purchase. 2. The shipowner shall be liable for the defects

the ship which surfaced prior to the ship’s delivery to the lessee if the shipowner failed to notify the latter

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

the technical condition

the ship and timely carry out repairs. 4. The risk

the ship’s accidental loss or damage to her shall pass on to the lessee from the moment

delivery

the ship to him on the basis

the contract

the ship’s lease with option to purchase. Article 43. Termination

the Contract

a Ship’s Lease with Option to Purchase 1. The lessee shall have the right to terminate the contract

a ship’s lease with option to purchase and claim damages if: 1) the shipowner fails to deliver the ship to the lessee by the due date as prescribed by the contract; 2) the defects which surfaced prior to the ship’s delivery to the lessee prevent her from being employed in a manner consistent with the contract

the ship’s lease with option to purchase. 2. The shipowner shall have the right to terminate the contract

lease with option to purchase and demand the ship be returned if: 1) the lessee fails to pay the rent after the expiry

a three months period from the payment date; 2) deliberately or through negligence worsens the condition

the ship; 3) employs the ship in the manner inconsistent with the contract or not according to the ship’s purpose; 4) fails to fulfil other obligations assumed by the contract

a ship’s lease with option to purchase. 3. When the ship is returned, the shipowner shall be entitled to the unpaid amount

the rent for the use

the ship. The lessee shall be refunded the amounts paid as instalments for the ship. 4. The lessee must return the ship to the shipowner in the same condition as she was when delivered to him, taking into account the fair wear and tear to the ship, or in the condition agreed upon in the contract. In the event

deterioration

the ship’s condition, the lessee must compensate the shipowner for the damage caused thereby. CHAPTER SEVEN THE CONTRACT

TOWAGE AT SEA Article 44. Concluding a Contract

Towage at Sea 1. A contract

towage at sea can be concluded in writing or orally. Agreement to appoint the master

the towboat to be in command

the towage may be proved exclusively by documentary evidence. 2. Each party to a contract

towage at sea must prepare in good time its ship or other object fit for towage. 3. The manager

the towboat shall not be liable for any defects

his ship if he proves that they could not have been discovered prior to the conclusion

the contract

towage at sea (latent defects). 4. The rules laid down in this Chapter shall be applicable in the absence

another agreement

the parties. Article 45. Liability

the Parties to the Contract

Towage at Sea 1. The manager

the towboat shall not be liable for the damage caused to the towed ship or other floating object or to any property on board thereof during the towage amidst ice-floats unless it is proved that the damage has been caused through the fault

the towboat. 2. In the absence

any other agreement by the parties, the manager

the towboat shall be held liable for the damage to the towed ship or other floating object or any property on board thereof, caused during the towage where the master

the towboat is in command

the towed ship or other floating object, unless he proves it was not his fault. 3. In the absence

any other agreement by the parties, the manager

the towed boat or other floating object shall be held liable for the damage to the towboat or the property on board, caused during the towage where the master

the towed ship or other floating object is in command

the towboat, unless he proves it was not his fault. CHAPTER EIGHT GENERAL AVERAGE Article 46. Apportionment

General Average 1. General average shall be apportioned among the ship, freight and cargo in proportion to their respective values. In this Chapter, freight shall also mean passage money and any charges for carrying passengers’ luggage. General average shall also be apportioned in the manner prescribed in this paragraph when the peril calling for extraordinary expenditure or sacrifice was due to the fault

one

the parties to the contract

carriage by sea or

a third person. However, this shall not prejudice any remedies which may be open to those involved in the general average against that person for such loss. 2. Articles 47 - 50

this Law shall be applicable where the parties to the contract

carriage by sea do not agree otherwise. Article 47. Losses and Expenditure Ranking with General Average In the presence

the characteristics

general average referred to in Article 2

this Law, the following shall rank with general average: 1) losses resulting from jettison

cargo or

appurtenances

a ship, also losses resulting from damage done to a ship or cargo in consequence

water penetration into the holds through hatches opened for jettisoning cargo or other openings in the ship for the above purpose; 2) losses resulting from damage done to a ship or cargo in extinguishing a fire on board, including damage by scuttling a burning ship; 3) losses caused to a ship or cargo by intentionally running aground also by refloating; 4) losses resulting from damage done to the engines or other machinery or boilers

a ship which is aground in endeavouring to refloat; 5) expenses arising out

the discharge

cargo, fuel or stores into lighters and back, also expenses for lighter hire when the ship is aground; 6) expenses incurred as a result

damage to or loss

cargo, fuel, or stores in the act

handling on board, discharging, loading and stowing, when the cost

those operations is admitted as general average; 7) expenses incurred as a result

rescue operations in order to protect the ship, freight, and cargo from a peril; 8) loss

freight arising from loss

cargo when loss

cargo is made good in apportioning general average. In this case a deduction

expenses shall be made from the freight, which the carrier would have incurred to earn such freight, but has, in consequence

the sacrifice, not incurred. Article

1. Extra Expenses Constituting or Ranking with General Average
2. The following shall also constitute or rank with general average: 1) expenses caused by the ship’s forced entry

a place

refuge or return to the port

departure in consequence

an accident or other extraordinary circumstances which rendered the ship’s forced entry or a return to the port

departure necessary for the purposes

common safety; 2) expenses connected with the ship’s leaving, with her original cargo or part

it, the place

refuge or the ship’s port

departure if she was forced to return to the latter; 3) expenses

handling on board or discharging cargo, fuel, or store, whether at the port

call or refuge, if they were incurred for the common safety or for repairing damage caused to the ship by an accident or other extraordinary circumstances, if the repairs were necessary for the safe prosecution

the voyage; 4) storage charges, reloading or stowing

cargo, fuel or stores which have been discharged in circumstances set out in item 3

this paragraph. If the ship is recognised unfit for shipping or if the ship interrupted the voyage, expenses

storage incurred prior to the day

recognition

the ship as unfit for shipping or prior to the day

interruption

the voyage, or prior to the day

completion

the ship’s discharging, shall be ranked with general average. 5) expenses for the crew’s wages, board and clothing, for fuel and stores incurred in connection with the prolongation

the voyage occasioned by the ship’s entering a place

refuge or returning to her place

loading in circumstances set out in items 1 and 3

this paragraph. When the ship is condemned or does not proceed on her original voyage, the above expenses shall be admitted as general average if they were incurred up to the date

the ship’s condemnation or the abandonment

the voyage, or up to the date

completion

the discharge

the cargo; 6) expenses for the crew’s wages and maintenance incurred through the ship being detained in the interests

the common safety or in consequence

an accident or other extraordinary circumstances, or for the purpose

repairing the damage caused by such circumstances, if the repairs were necessary for the safe prosecution

the voyage. The expenses for fuel and stores and port charges incurred during the extra period

detention shall be admitted as general average, except those incurred by reason

repairs not allowable as general average; 7) expenses mentioned in items 1-6

this paragraph caused by the necessity for the ship to be removed from the place

refuge to another place because repairs could not be carried out at the place

refuge, also expenses

such a removal, including expenses

towage and temporary repairs; 8) expenses

temporary repairs effected to a ship at the place

loading, call or refuge for the common safety, also expenses

temporary repairs

damage admitted as general average. Temporary repairs

accidental damage to enable the ship to complete the voyage shall be compensated as much as they helped to avoid expenses that would have been allowable in general average if such repairs had not been effected; 9) all extraordinary expenses incurred in place

other expenses which would have been allowable as general average. They shall be compensated as much as they helped to avoid expenses without regard to the saving

such alternative expenses by other participants

the general average.

1. Losses not constituting general average shall be considered as particular average. Such losses shall not be apportioned among ship, cargo and freight. They shall be borne by the person who suffered them or who is responsible for causing them. Article
2. Losses and Expenses not Constituting General Average
3. The following shall not be considered as general average even in the presence

characteristics referred to in the definition

general average in Article 2

this Law: 1) the value

cargo jettisoned on catching fire owing to spontaneous combustion or

cargo carried not in accordance with the stipulations

this Law or the customs

merchant shipping; 2) losses owing to the smoke and heat effect during a fire; 3) losses caused by cutting away the wreck or remains

spars or

other things which have previously been pulled down or lost owing to a sea-peril; 4) expenses

handling on board or discharging cargo, fuel or stores at a place

loading, call or refuge, when damage caused to the ship was established at a place

loading or call, if no sea-perils or extraordinary events connected with such a damage to the ship occurred during the voyage; also when such expenses were incurred due to the reloading

cargo which has been displaced during the voyage if such reloading was not necessary for the common safety; 5) expenses for the crew’s wages, for fuel and stores incurred during repairing the damaged ship if the repairs were necessary for the safe prosecution

the voyage and the damage was established at the place

loading or call, and if no accident or extraordinary circumstances occurred during the ship’s voyage connected with such a damage

the ship; 6) any damage or loss sustained by the ship or cargo through delay on the voyage. 2. Losses caused by damage or perishing

things loaded without the knowledge

the shipowner or his agent, also by damage or perishing

goods which have been wilfully misdescribed at the time

shipment shall not be considered as general average. However, the owner

such property shall remain liable to contribute if the property were saved. Owners whose goods have been wrongfully declared on shipment at a value which is lower than their real value shall contribute upon their actual value but their losses shall be compensated only at the declared value. Article 50. Adjustment

the Amount Allowable as General Average for Loss and Expenses 1. The loss allowable as general average for damage caused to the ship , her machinery or appurtenances shall be: 1) the cost

repairing the damage and replacing the parts

the ship; 2) in other cases - the depreciation in the value

the ship due to the above damage shall be taken into account, not exceeding, however, the normal cost

repairing. 2. Where old material or parts have been replaced by new in a ship not older than 15 years, a deduction

one-third

the cost

repairing

the ship allowable as general average shall be made as new for old. Where there is an actual or constructive total loss

the ship, the amount to be allowed as general average for damage caused to the ship shall be the estimated sound value

the ship after deducting therefrom the normal cost

repairing damage if it is not general average and the proceeds

the sale

the ship, if any. 3. The amount to be made good as general average for losses due to the damage or loss

goods sacrificed shall be adjusted on the basis

value

goods at the time

discharge indicated in the account presented by the consignee; where no such account was presented, the amount shall be adjusted on the basis

the value

goods at the place and day

loading. The value

goods at the time

their discharge shall include the cost

the cargo insurance and freight. Where goods so damaged are sold, the amount to be made good in general average shall be the difference between the sound value

the goods and the proceeds

their sale. 4. A commission

2 per cent on general average disbursements (other than the wages and maintenance

the crew, also the fuel and stores not replaced during the voyage) shall be allowed in general average, to be paid to the party to the contract

carriage

goods by sea who has made such disbursements. 5. Interest shall be allowed at the rate

7 per cent per annum on the amount

expenditure and other allowances charged to general average, to accrue from the day on which such expenditure was incurred until the date

the final average statement. 6. The total value

any property contributing towards the settling

a general average shall be the actual value

the property at the termination

the voyage, with the exception

the contributions for goods whose value shall be established in accordance with the account presented by the consignee. Where no such account is presented, the value shall be adjusted on the basis

the value

goods at the place and day

loading. The value

the cargo shall include its insurance and freight, deduction being made

expenses incurred owing to the damage and losses incurred prior to the discharge from the ship. Article 51. Average Statement and Average Adjusters 1. The existence

general average and a computation

its apportionment (the average statement) shall be prepared upon application

interested persons by the average adjusters, possessing knowledge and experience in the field

maritime law. 2. The onus

proof is upon the party to the contract

carriage

goods by sea, claiming in average statement to show that the loss or expenses claimed is properly allowable as general average. 3. The general adjuster shall have the right to advise the interested persons to submit documents necessary for preparing the average statement. If the interested parties fail to submit the necessary documents within the time limits set by the general adjuster, the average statement shall be prepared in accordance with the materials available to the general adjuster. The average statement may not be revised at the request

the interested persons, in accordance with the documents requested by the general adjuster but not submitted by them. 4. All interested persons must be provided a possibility to inspect all the materials used in the preparation

the average statement, and the average adjuster must, at the request

the interested persons, give them, at their expense, certified copies

such materials. 5. A fee shall be charged for the preparation

the average statement, which shall be included in the average statement and apportioned among all the interested persons in proportion to their general average contributions. 6. Average statements shall be registered in the average statement register in the manner prescribed by the Ministry

Transport. Article 52. Hearing

Disputes Relating to the Average Statement 1. Any mistakes in the average statement ascertained after the registration

the average statement in the average statement register, shall be rectified by the general adjuster either at his own or the interested persons’ initiative. The rectification

the ascertained mistakes shall be recorded in the appendix

the average statement drawn up by the average adjuster and shall be registered in the same manner as average statements. 2. The interested persons may dispute the average statement in court within six months

receiving the average statement. In this case, a copy

the petition to sue shall be sent to the average adjuster. 3. The average adjuster must be present in person during the hearing

the dispute relating to the average statement and must provide explanations if so requested by the court hearing the dispute. 4. If the average statement is not disputed or if it is disputed but left in force by the court, recovery thereunder may be effected by a notarial writ

execution. The average statement must be presented to the notarial

fice along with a certificate

the average adjuster to the effect that the average statement has not been annulled or modified by the court. CHAPTER NINE SAFE SHIPPING, REMUNERATION FOR SALVAGE AT SEA Article 53. Safe Shipping 1. Safe shipping must be guaranteed by the ship manager. 2. Requirements

safe shipping shall be prescribed, in accordance with the international instruments

maritime law, by the Ministry

Transport which exercises the functions

the national maritime administration

the Republic

Lithuania. 3. Requirements

safe shipping shall be made public and shall be obligatory for all managers

ships, irrespective

the country flag the ship is flying. Article

1. The Right to Assistance
2. The master

each ship in distress has the right to request assistance. 2. Upon receiving a signal

distress, the master

the ship, without unduly endangering the ship, its crew and its passengers, must give assistance to the ship in distress. The master has the right not to proceed to salvage the ship in distress only upon receiving from another ship that has reached the area

distress earlier a message to the effect that the ship in distress is no longer in need

assistance. 3. A ship in distress shall send distress signals referred to in international instruments

maritime law. If there is no danger for the ship, these signals cannot be sent, and the person who has sent them shall be held liable under the laws

the Republic

Lithuania. 4. In the event

the collision

ships, the master

each

the ships in collision must, so far as possible, communicate to one another the names

their respective ships, the ports

registry, the ports

departure and destination or the nearest port

call. 5. The masters

ships in collision must organise rendering

assistance without serious danger to his own ship, crew and passengers. Article

1. Remuneration for Salvage at Sea
2. The regulations laid down in this Article shall apply to salvage

seagoing ships in distress, also to salvage by seagoing ships to ships

internal navigation or to any floating or towed objects, irrespective

the waters in which the salvage took place. 2. Every act which has had a useful result, done for the purpose

saving a ship in distress, people, the cargo and other things on board, also for the purpose

preserving freight or payment for carriage

passengers and luggage, shall give a right to equitable remuneration. 3. Remuneration due for salvage shall be distributed to the manager, the members

the crew and other persons in the manner prescribed by the Ministry

Transport. Remuneration shall also be paid in cases where the ship rendering salvage service belongs to the manager

the salved ship. 4. Salvage services rendered notwithstanding an express refusal from the salvage services, also salvage acts done in performance

a contract

towage at sea, shall give no right to remuneration. 5. Persons whose lives have been saved need not pay any remuneration for their rescue. However, salvors

people shall be entitled to a share

the remuneration for the salvage

property on an equal footing with the salvors

the property, if the salving

people was carried out in connection with the same accident as the salving

property. Article 56. Setting the Amount

Remuneration for Salvage at Sea 1. The amount

remuneration for salvage at sea shall be fixed by agreement between the master

the ship in danger and the master

the ship rendering salvage services. In the absence

such an agreement, the amount

remuneration shall be fixed by the court. 2. The salvage remuneration shall include the expenses incurred by the salvor for the purpose

salvage, payment for the services

the salvors and the costs

storing the salved property. 3. The salvage remuneration shall be fixed, taking into account: 1) the result

the salvage; 2) the labour and merits

the salvors; 3) the danger run by the salved ship, its passengers, the crew and cargo; 4) the danger run by the salvors; 5) the time spent in rendering the salvage services; 6) the expenses incurred by the salvor; 7) liability

the salvor in respect

third parties; 8) the value

the salvor’s property in danger; 9) the special mission

the salving ship.

1. The remuneration for salvage at sea may be reduced or its payment may be refused, if the salvors have through their fault put the salving ship in danger, appropriated the salved property or committed other illegal actions.
2. The salvage remuneration shall not exceed the value

the property salved. The value

the property salved shall be deemed its appraised value, or, if the property was sold, the proceeds

the sale, with deduction

the established duties, dues and charges, and

the costs

unloading, storing, and appraising or selling the property.

1. The remuneration to be distributed among several salvors shall be made by their agreement. Failing agreement, the remuneration shall be distributed by the court. Article
2. Compensation for Losses from Collisions

Ships 1. This Law shall establish the procedure for compensation

losses sustained: 1) in a collision between sea-going ships; 2) in a collision between sea-going ships and ships

internal navigation; 3) by persons, cargo or other property; 4) through the non-observance

the rules

navigation, though a collision was averted. 2. Losses shall be compensated by the manager

the ship through the fault

the master or other members

the crew whereof the collision occurred. None

the parties in collision shall be held liable until proved guilty in the manner prescribed by law. 3. If the collision was caused by force majeure, or if it is impossible to establish the cause

the collision, the losses shall be borne by those who have suffered them. 4. If the collision was caused through the fault

the masters or other members

the crew

all the ships in collision, the liability

each party shall be established in proportion to the degree

its fault. If it is not possible to establish the degree

fault

each respective party, the liability shall be apportioned on an equal basis. 5. In the case referred to in paragraph 4

this Article, the managers

the ships shall have a joint and several liability to third parties for losses caused by death or injuries to the health

people. 6. The manager

the ship shall also be held liable if the collision was caused through the fault

a pilot. 7. Losses sustained through pollution

the environment during a collision shall be compensated in the manner established by the laws

the Republic

Lithuania. CHAPTER TEN LIMITED LIABILITY

THE SHIP MANAGER Article 58. Application

Limited Liability 1. The ship manager shall be liable for his obligations by way

his property to which under the laws

the Republic

Lithuania execution can be levied. 2. Agreements on the reduction

limited liability

the ship manager as established by this Law shall be invalid. 3. Limited liability

the ship manager as established by this Law shall not apply if it is proved that damage has been caused through his deliberate actions or negligence. Article

1. Claims Subject to Ship Manager’s Limited Liability
2. The ship manager’s limited liability shall apply to claims in respect

: 1) injury to health or loss

life

the persons on board the ship or from damage to the property on board; 2) injury to health or loss

life in connection with the maintenance

ship and its navigation

the persons not on board the ship or damage to the property not on board. 2. If the damage referred to in paragraph 1

the ship manager who is responsible for the actions or negligence may be reduced if the actions or negligence

that person was connected with the operation or operability

the ship or with the loading, carriage or unloading

cargo or luggage, or with the boarding or disembarkation

passengers. 3. Limitations

the ship manager’s liability shall not apply in the following claims: 1) to compensate for salvage or contribution in general average; 2) for injury to health or loss

life

the crew members or other staff

the ship manager employed on board on a contract basis, also

their heirs or persons entitled to maintenance by them; 3) for raising or destroying the sunken property. Article 60. Limitation

the Ship Manager’s Liability 1. The liability

the ship’s manager shall be limited to the following sums: 1) in respect

the event resulting in a claim for damage to property - 20 Litas for each ton

the ship’s tonnage; 2) in respect

the event resulting in a claim for damage to person - 50 Litas for each ton

the ship’s tonnage; 3) in respect

the event resulting in claims set out in items 1) and 2)

this paragraph - 50 Litas for each ton

the ship’s tonnage, apportioning one part

the sum (30 litas for each ton

the ship’s tonnage) in a claim for damage to person, and the other part

the sum (20 Litas for each ton

the ship’s tonnage) in a claim for damage to property. 2. In calculating the damages, the tonnage

a ship with a mechanical engine shall be established by adding the tonnage

the engine compartment to the net tonnage

the ship, and the tonnage

other ships - in accordance with their net tonnage. A ship with the tonnage

up to 300 tons shall be regarded as a 300 tons ship. 3. If the ship manager whose liability is limited has a right to a counter claim arising from the same event, limitation

liability shall apply only in respect

the difference resulting from the set-

f

mutual claims. Article 61. Liability

the Agent

the Ship Manager 1. If claims for the loss, damage or late delivery

cargo are made directly to the agent

the ship manager, he shall be entitled to invoke the rules for exemption and limitation

liability set out in this Law. In such a case, the total sum

liability applicable to the ship manager and his agent may not be in excess

the limits

liability set out in this Law. 2. The agent

the ship manager is not entitled to the limitation

liability if it has been proved that damage resulted by reason

the agent’s deliberate actions or negligence. CHAPTER ELEVEN PRIVILEGED CLAIMS Article 62. Sequence

Satisfying Privileged Claims

1. Privileged claims are claims related to merchant shipping and are satisfied in the manner prescribed by this Law.
2. Claims secured by mortgage must have the first priority

satisfaction. Other claims shall be satisfied in the following sequence: 1) claims

the manager’s staff in respect

labour relations, claims for compensation for mutilation or other injury to health, also for loss

life and claims for damage arising from injury to a passenger’s health or loss

life; 2) claims relating to port dues; 3) claims for salvage remuneration and general average contributions; 4) claims for compensation

losses arising from collision or other accident at sea, damage to harbour works and other property and aids to navigation; 5) claims arising from the acts done by the master, by virtue

the powers conferred on him by this Law, for the preservation

the vessel and the prosecution

the voyage; 6) claims in respect

loss or damage to cargo or luggage; 7) claims in respect

payment for freight and other charges due for the carriage

goods by sea. 3. Claims in respect

the payment for services rendered in port shall be considered as the sixth and seventh priority claims respectively, depending on the property out

which they are satisfied. 4. Claims mentioned in paragraph 1 shall be satisfied in proportion to the amounts

general claims. 5. Claims in respect

the last voyage shall be satisfied in preference to similar claims in respect

earlier voyages. Claims referred to in paragraph 2

several voyages

the ship shall rank with similar claims in respect

the last voyage

the ship. Article 63. Property and Funds Used for Satisfaction

Privileged Claims 1. Claims referred to in paragraph 2(1-6)

Article 62

this Law must have priority

satisfaction out

: 1) the value

the ship; 2) freight and payment for carriage

passengers and their luggage due for the voyage in the course

which the ground for the claim arose; 3) general average contributions payable to the manager

the ship in respect

the ship in question; 4) remuneration due to the manager

the ship for loss

freight also for unrepaired damage caused to the ship; 5) remuneration due to the manager

the ship for salvage before the end

the voyage, less sums due from the manager to the members

the crew and other persons who took part in the salvage. 2. Claims referred to in paragraph 2 (2,3,5,7)

Article 62

this Law must have priority

satisfaction out

: 1) the value

the cargo not delivered to the consignee; 2) the compensation payable for damaged cargo; 3) general average contributions payable to the cargo owner. Article 64. Period

Limitation

Privileged Claims 1. The right to satisfaction

privileged claims shall terminate upon expiration

one year from the day on which the privileged claim arose. 2. The right

satisfaction

privileged claims referred to in paragraph 2

Article 62

this Law shall terminate upon expiration

six months from the day on which the claim arose. CHAPTER TWELVE SEA PROTESTS Article 65. A Note

a Sea Protest 1. If while the ship is sailing or is moored an event occurs which may form the basis for making property claims to the ship’s manager, the master shall, in order to secure evidence for the protection

the ship manager’s rights and legal interests, see to it that a note

sea protest is drawn up in accordance with the established procedure. 2. A note

sea protest shall contain a description

the circumstances

the event and

the measures taken by the master to preserve the property entrusted to him. Article 66. A Declaration

a Sea Protest 1. A declaration

sea protest shall be made: 1) in a port

Lithuania - to a notary or other

ficial charged with performance

notarial acts by legislation

the Republic

Lithuania; 2) in a port

a foreign state - to the consul

the Republic

Lithuania or a competent

ficial

a foreign state in accordance with the procedure prescribed by the legislation

that state. 2. In a port

the Republic

Lithuania a declaration

a sea protest shall be made within twenty-four hours upon arrival at the port. If the event necessitating declaration

a sea protest happened at a port, the protest must be declared within twenty-four hours after the happening

the event. 3. If it proved impossible to make a declaration

a sea protest within the established time limit, the reasons thereof must be specified in the declaration

a sea protest. 4. If there are grounds to suppose that the event which happened caused damage to the cargo on board, the declaration

a sea protest must be made before the opening

the holds. The cargo may be unloaded before declaring a sea protest only if this is necessitated by the properties

the cargo. Article 67. Submission

an Extract from the Ship’s Log In evidence

the circumstances described in the declaration

a sea protest the master must submit to the notary or other competent

ficial to whom he made a declaration

a sea protest an extract from the ship’s log certified by the master and request him to question the witnesses mentioned by the master to ascertain the circumstances referred to in the extract

the ship’s log. Article 68. Drawing up a Sea Protest Note On the basis

the master’s declaration, the data in the extract from the ship’s log, also the examination

the witnesses, the notary or other competent

ficial shall draw up a sea protest note and shall attest it with his signature and the seal. CHAPTER THIRTEEN CLAIMS AND ACTIONS Article 69. Attestation

the Circumstances which May Serve as the Basis for Liability

the Carrier, Consignors, Consignees and Passengers 1. Circumstances which may serve as the basis for liability

the carrier, consignors, consignees and passengers shall be attested to by documentary or other evidence. In ports

foreign states, such circumstances shall be attested to in accordance with the rules in force in the state concerned. 2. A document shall be drawn up to attest to: 1) factual discrepancy between the name, weight

the cargo or luggage or number

parcels and the data given in the shipping document; 2) damage to the cargo or luggage; 3) discovery

cargo or luggage without documents or

documents without cargo or luggage; 4) return

lost cargo or luggage. 3. The forms for documents, the procedure for drawing them up or refusal to draw them up , also the procedure for contesting the documents shall be established by the Ministry

Transport. Article

1. Claims
2. Before bringing an action arising out

contracts

carriage by sea, filing

a claim shall be mandatory. 2. Claims may be filed against the carrier who effected the carriage, and if the carriage was not effected, against the carrier who under the contract

carriage by sea should have effected the carriage. 3. Claims arising out

carriage

luggage may be filed against the carrier or to the port

departure or

destination at the discretion

the claimant. 4. The claim must be filed in writing. Documents supporting the claim shall be attached thereto. In addition to the documents evidencing the right to file a claim, a document certifying the quantity and the value

the goods shipped must be attached to a claim for loss

, shortage in, or damage to the goods. 5. The procedure for filing and hearing claims arising out

a contract

carriage

passengers by sea shall be prescribed by the Rules

Carriage

Passengers and Luggage by Sea. Article

1. The Right to File Claims and Bring Actions
2. The right to file claims and bring actions shall belong to: 1) in the case

non-arrival or late arrival

the ship for loading, to the consignor

the goods; 2) in the case

overcharge

freight, to the consignor or the consignee

the goods who presents the bill

lading; 3) in the case

shortage in or damage to the goods, to the consignee or consignor who present the bill

lading, the commercial document or a corresponding document drawn up in accordance with the rules in force in the port

the consignee or the consignor; 4) in the case

late arrival

the goods or

a delay in their delivery, to the consignee who presents the bill

lading; 5) in the case

shortage or late delivery

the luggage, to the person who presents the luggage receipt; 6) in the case

damage to the luggage, to the person who presents the commercial document. 2. Absence

a commercial document shall not forfeit the right to file a claim, if it is proved that there was a refusal to draw up such a document and that such refusal was appealed against. 3. The right to file claims and to bring actions may not be transferred to other persons, with the exception

cases when such a right is transferred by the consignor to the consignee or vice versa, also when the consignor or the consignee transfer this right to a forwarding , insurance or some other organisation. Transfer

a right to file a claim and to bring an action shall be attested to by an endorsement

the bill

lading. Article 72. Time Limits for Filing Claims Arising out

Carriage in the Cabotage 1. Claims arising out

carriage

goods or luggage in the cabotage may be filed within six months, and claims for dispatch money or demurrage - within forty-five. The above mentioned time limits shall be calculated: 1) in the case

claims for compensation for the loss

the goods or luggage, upon expiration

thirty days from the day on which the goods or luggage should have been delivered; 2) in the case

claims for compensation for the shortage in or damage to the goods or luggage, for late arrival or delay in delivery

the goods or luggage, for return

any sums overcharged for carriage, from the day

the delivery

the goods or luggage; 3) in the case

claims for shortage in cargo carried in bulk, from the day

signing the commercial document; 4) in the case

claims for payment

penalties for non-arrival or late arrival

the ship for loading, also for payment

dispatch money , upon expiry

the month after carriage started or should have started; 5) in all other cases, from the day

the event which served as the basis for filing the claim. 2. The carrier shall have the right to accept any claim for consideration after the expiration

the time limit for its filing if he accepts that the time limit for filing the claim was due to serious causes. Article 73. Time Limits for Consideration

Claims Arising out

Carriage in the Cabotage 1. The carrier must consider any filed claim arising out

carriage in the cabotage and notify the claimant

it being satisfied or rejected within the following time limits from the day

receipt

the claim: 1) within three months, in the case

claims arising out

carriage by sea; 2)) within 45 days, in the case

the claims for payment

dispatch money or demurrage or payment

penalties for non-arrival or late arrival

the ship for loading. Article 74. Time Limits for Bringing Actions Arising out

Carriage in Cabotage 1. Actions arising out

carriage in cabotage may be brought within six months from the day

the event which served as the basis for bringing the action. 2. If an action arising out

carriage

goods or luggage in cabotage is rejected or if no reply is received within the time limits prescribed in Article 73

this Law, the claimant may bring an action within two months from the day when the reply was received or when the time limit for making a reply expired. Article 75. Time Limits for Filing Claims and Bringing Actions Arising out

Carriage on an International Voyage 1. Limitation periods prescribed in paragraphs 5 and 6

this Article shall apply to claims arising out

carriage

cargo or luggage and passengers on an international voyage. 2. Claims to a carrier in respect

the carriage referred to in paragraph 1 shall be filed within the first six months

the period

limitation

action. 3. Claims in respect

the payment

dispatch money or demurrage shall be filed within the first forty-five days

the period

limitation

action. 4. The carrier must consider any claim arising from carriage during an international voyage within three months from the day on which the claim was received and must notify the claimant

its being satisfied or rejected. 5. In respect

claims referred to in this paragraph a period

six months

limitation shall apply. This period shall be calculated as follows: 1) claims arising out

carriage

cargo or luggage by sea during an international voyage, also claims for payment

dispatch money or demurrage, from the day

delivery

cargo or luggage, an in case

non-delivery

cargo or luggage - from the day when the delivery had to be effected; 2) claims arising out

chartering for a certain period

time, out

contracts

lease with option to purchase and contracts

towage at sea, out

transactions concluded by the master and the use

piloting services, from the day when the right to a claim accrued. 6. In respect

claims referred to in this paragraph a period

one year

limitation shall apply. This period shall be calculated as follows: 1) in the case

claims arising out

contract

carriage

passengers during an international voyage: with respect to the carriage

passengers, from the day when the passenger disembarked or should have disembarked; in the case

an action for damages arising out

personal injury to a passenger or loss

life, from the day

personal injury or death, provided that this period shall not exceed two years from the day

disembarkation; 2) in the case

actions for damages arising out

collision

ships, from the day

the collision; 3) in the case

claims for salvage award, from the day

completion

salvage services. 7. The period

limitation

action prescribed for the claims referred to in paragraph 6

two years, in those cases when the ship for which these claims apply could not during the period

limitation

action be found in the territorial waters

the Republic

Lithuania. 8. A general period

limitation

action prescribed by the Civil Code

the Republic

Lithuania shall apply to the claims which are not covered by the period

limitation laid down in this Law. Article 76. Suspension, Interruption and Renewal

Limitation Periods 1. The rules established by the Civil Code

the Republic

Lithuania concerning the suspension, interruption or renewal

the period

limitation shall apply to the period

limitation

action set out by this Law. 2. Where the calculation

the amount involved in the action depends on the average statement, the period

limitation

action shall be suspended as from the day on which the average adjuster adopts a resolution ascertaining the existence

general average until the day on which the person concerned receives the average statement. Article 77. Additional Compensation 1. In satisfying claims arising out

economic relations provided by this Law, the court may award an additional compensation

up to 12 per cent

the awarded sum. 2. The rules

this Article shall not apply to the claims for dispatch money or demurrage, also for losses compensated in general average. CHAPTER FOURTEEN MARITIME MORTGAGE Article 78. Ship Mortgage 1. Under a ship mortgage, the creditor (the mortgagee) is entitled to obtain satisfaction

his claim from the value

the mortgaged ship before all other creditors in the event

the mortgagor’s failure to discharge the obligation secured by the mortgage. 2. A ship mortgage shall be drawn up in writing and shall be duly signed and attested by a notary. Under this Law, only ships entered in the Ship Register

the Republic

Lithuania or the Ship Book can be mortgaged. 3. A ship mortgage shall secure the claim in the amount at the moment

its satisfaction, including the interest, default interest and losses caused by the failure to meet the obligation within the set time, also the expenses incurred during the recovery. 4. The mortgagor must be the owner

the mortgaged ship. If the title to the mortgaged ship is transferred from the mortgagor to another person, the mortgage shall continue irrespective

whether the new shipowner knew or did not know that the ship had been mortgaged. 5. The ship shall be mortgaged with all its fittings and appurtenances, with the exception

those that are not the property

the shipowner. Article 79. Registration

the Ship Mortgage 1. The ship mortgage shall come into force from the moment

its registration in the Ship Register

the Republic

Lithuania or the Ship Book. A prescribed charge shall be paid for the registration

the ship mortgage. 2. During the registration

a mortgage, the following particulars shall be recorded: 1) the sum

the loan and the date

its repayment; 2) interest and the date

payment; 3) the essential characteristics

the mortgaged ship; 4) the owner

the mortgaged ship; 5) the value

the mortgaged ship; 6) the debtor; 7) insurance

the ship and other claims to the mortgaged ship; 8) the date

the registration

the mortgage; 3. From the moment

registration

a ship mortgage, the owner

the mortgaged ship shall forfeit his right to convey the ship to other persons without the consent

the mortgagee, also to mortgage, lease or make any other charges on the ship. Any contracts entered into in breach

the above restrictions can be invalidated in the prescribed manner. Article 80. Notice

the Forced Sale

a Mortgaged Ship 1. The mortgagee shall notify in writing the debtor and the owner

the mortgaged ship that in the event

failure to repay the debt within the specified time he will request a forcible sale

the mortgaged ship. 2. In the event

failure to repay the debt within the specified time the creditor has the right to submit a request to the registrar

the mortgage to sell the mortgaged ship and to recover the debt. 3. The decision to sell the mortgaged ship shall be adopted in the manner prescribed by the legislation

the Republic

Lithuania. Article 81. Sale

the Mortgaged Ship and Apportionment

the Proceeds 1. The mortgaged ship shall be sold at a public auction organised by the registrar

the mortgage in the manner prescribed by him. 2. The proceeds for the ship sold at an auction shall be transferred to the account

the registrar

the mortgaged ship and within 10 days following the sale shall be apportioned by the registrar

the mortgage among the creditors in accordance with the sequence

satisfaction

the obligations. The decision about the apportionment

the sums shall be circulated to all the creditors whose claims were secured by the ship mortgage. 3. The decision

the registrar

the ship mortgage on the apportionment

the proceeds from the sale

the mortgaged ship may be appealed against to the court within 10 days from adopting it. If there is no appeal against the decision it comes into effect at the end

the time limit

the appeal. The debts shall be repaid to the creditors after ten days following the entry into force

the decision on the apportionment

the debts. 4. If the mortgaged ship is lost, the mortgagee has priority among all others to satisfy his claims from the insurance benefit payment if the ship was insured. Article 82 Satisfaction

the Claim Secured by a Ship Mortgage The creditor shall be paid: 1) the sum

the debt ; 2) interest for the last 3 years preceding the expiry

the specified time

discharge

the debt or the declaration

insolvency or liquidation

the owner

the mortgaged ship; 3) expenses relating to the recovery

the debt. Article 83. Discharge

a Ship Mortgage 1. A ship mortgage shall discharge: 1) upon the expiry

the obligation secured by mortgage; 2) in the event

loss

the ship; 3) upon a forced sale

a mortgaged ship. 2. Upon the expiry

the obligation secured by mortgage, the registrar

a ship mortgage shall, within 5 days after the production

the mortgage deed ascertaining the discharge

the obligation secured by mortgage, make an entry thereon in the Ship Register

the Republic

Lithuania or the Ship Book. CHAPTER FIFTEEN LABOUR RELATIONS ON BOARD A SHIP AND GUARANTEES TO SEAMEN Article

1. Shipping Articles with Seamen
2. Shipping Articles with a seaman shall be entered into in a manner prescribed by the legislation

the Republic

Lithuania. One copy

Shipping Articles shall be given to the seaman, another shall be kept by the ship manager. A copy

Articles shall be given to the master. Each seaman shall be issued a seaman’s certificate in a manner prescribed by the Ministry

Transport. 2. The manager

the ship can authorise the master

the ship to enter into Shipping Articles on behalf

the manager. 3. No persons under the age

sixteen years shall be employed in a ship. No person shall be permitted to be employed in a ship unless he has been found fit to be employed in that capacity in the manner prescribed by the Ministry

Health

Lithuania. Article

1. Adequate Working and Rest Conditions
2. The manager

the ship must see to it that seamen have adequate working and rest conditions. 2. The master

the ship shall see to it that seamen are provided food and drinking water provisions in accordance with the daily allowance prescribed by the Ministry

Health. Where the master

the ship reduces the quantity

provisions during the voyage, the seamen are entitled to request a pecuniary compensation for the deficiency

provisions. Article 86. Rights and Duties

Seamen on Board a Ship 1. The rights and duties

seamen on board a ship shall be provided by this Law, by other laws

the Republic

Lithuania, by the Regulations

Service on Ships

the Republic

Lithuania, by shipping articles and job instructions. 2. A seaman is entitled to rest and sleep. The daily time for rest must not be shorter than 10 hours which may be divided into two periods

no less than 5 hours. The time between two successive rest periods must not exceed 14 hours. This requirement need not be observed while entering or leaving a port if the master

the ship decides that this is permissible for the purpose

safe navigation. 3. Where the ship is berthed in a port or other safe place with the anchor dropped, during his free period a seaman has a right to go ashore if he is not required to stay on board for reasons

security

the ship, cargo or people on board when the ship is about to sail from a port or to change its berth. Where possible, the expenses and other related circumstances permitting, the master may arrange for the seamen a free communication by boat with the shore. 4. A seaman may carry on board as many

his personal effects as would not encumber the ship and would not become a cause

possible disorder on board. A seaman is not allowed to carry goods on board without a prior permission

the master. It shall not be permitted to carry on board radioactive, toxic, controlled or narcotic substances. No firearms or ammunition shall be permitted into the ship without a prior permission

the master. 5. If the master suspects that some things have been brought on board illegally he may institute a search

the seaman’s berthing space or other ship space. The seaman concerned has the right to be present during the search.

1. All things illegally brought on board may be arrested, discharged or, where necessary, destroyed by the master.
2. If owing to an accident at sea all the effects

a seaman that have been legally brought on board the ship perish, the manager

the ship must compensate to the seaman for the loss in accordance with the prices

goods

equivalent type and quality allowing for the wear and tear

the lost or damaged property. The seamen through whose fault the accident at sea occurred shall not be entitled to any compensation for the property. 8. The property

a discharged seaman left behind on board the ship shall be safeguarded at the seaman’s expense. The master

the ship must organise at his earliest convenience taking inventory

the seaman’s property. The accuracy

the inventory shall be attested by two witnesses. 9. If the seaman’s property cannot be safeguarded adequately owing to its properties, high costs

safeguarding or other circumstances, the property may be sold or destroyed. The effects may also be sold or destroyed if the seaman has not contacted the manager

the ship concerning the recovery

property belonging to him. 10. If the property belonging to the seaman was damaged on board the ship or was lost during a burglary, fire or other damage caused to the ship, the manager

the ship must make a payment

a compensation to the seaman. Article

1. Order on Board the Ship
2. The master

the ship shall be charged to maintain order on board the ship. 2. A seaman must obey the orders given on board the ship and observe the regulations

seamen’s duties and work.

1. If a seaman is prevented from arriving on board the ship on time he shall, without delay, inform the ship master about it.
2. In the event

peril or a mutiny

the crew, also

other special occurrences, the ship master may resort to all necessary and legal means to maintain order on board the ship. Every member

the crew must help to maintain order on the ship without a special command. Article

1. Guarantees for the Seamen
2. If the employment agreement

a seaman terminates at a foreign port, the manager

the ship shall compensate the expenses

the seaman incurred because

his trip to the place

residence. If a foreign country, at the port whereof the employment agreement with the seaman terminates, refuses to grant him entry into the country or grants him entry for a deposit which the seaman is not in a position to make, he shall continue his work on board the ship until the ship reaches a port where the seaman may be discharged from work on board. 2. When it is established that a seaman has a disease posing danger for other persons on board the ship, the master

the ship, if it is impossible to prevent the danger on board the ship, shall land the sick seaman at the nearest port

call. 3. When the sick or injured seaman is left in a foreign country, the master

the ship shall leave him in the care

the Consulate

the Republic

Lithuania; if there is no Consulate

the Republic

Lithuania at that place, he undertakes to secure a proper care and nursing for the seaman and notifies about it the nearest Consulate

the Republic

Lithuania. At the seaman’s request, the master

the ship conveys a message from the seaman to a person indicated by him. 4. If a seaman fell ill or was injured during his employment on board the ship, the manager

the ship defrays all the costs related to the seaman’s treatment, care and nursing. 5. The manager

the ship must not defray the costs referred to in this paragraph if the seaman has a sickness and injury insurance policy from an insurance company. I promulgate this Law passed by the Seimas

the Republic

Lithuania. Algirdas Brazauskas President

the Republic Vilnius 12 September 1996 No. I-1513