Metamorphoses of the Law of the Flag Connection and other Connecting Factors applied for the Carriage of Dangerous Goods

The concept of "a flag of convenience" is equated with the possibility of free registration of a vessel, which can hardly provide for any high safety criteria. Free flags imply the possibility to apply a governing law different from that stipulated in a Bill of Lading. As a result, extraordinary forms of implementing connecting factors are declared. The need to use a specific conflict-of-laws rule is also quite high. The parties are ready to administer the presumption of implied choice of applicable law, should only the continuity of a contract, agreement, commercial transport transaction be permitted. A free flag adjusts the scope of the definition of an applicable law, supplements the contract with corrective clauses if the principle of a genuine connection is not commensurate with the principle of proportionality of the transaction. The insurance value includes nonoperational expenses, and the decrease in insurance costs is incontestable. Also, a flag of convenience means concluding a new treaty where conditions are determined in accordance with the carrier will or by a dealer acting as a freight agent. Any cargo on board is regarded as an evidence of a proper performance of obligations, while the law of the country of the flag provides for real rather than actual insurance indemnity paid by an insurer. It is enough to obtain a privilege to dispose of the costs of operation of a ship, no matter whether they are entered in operating or balance sheet accounts. However, the law under which the country of the flag should also explain its position in accordance with the legislation of the country where the indemnity at the expense of an insurer takes place has been simplified. Then some preference is given to the indemnification liabilities recovered from creditor's foreclosures at the moment when a charter is confirmed. The law applied to construct cost proportions between the value of the ship and freight serves the function of classifying risk-producing factors, the priority being given to the law favorable to an underlying agreement. Justification of the cargo in question is involved in the procedure of clarifying the statute governing obligations and a relevant law.

ship, cargo, assortment, registration, insurance, indemnity, contract, risks, carrier, agent

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