First-step analysis: shipping law and practice in Egypt

Newbuilding contracts

When does title in the ship pass from the shipbuilder to the shipowner? Can the parties agree to change when title will pass?

The ownership of the ship shall be held by the shipbuilder, and shall not be transferred to the principal ordering its building except after the ship is handed over and tested by the principal. However, the Egyptian Maritime Law allows the parties to agree other conditions to determine the period for transferring the ownership of the ship.

What formalities need to be complied with for the refund guarantee to be valid?

There are no specified formalities by law, as the legislator leaves this to the parties’ mutual agreement.

Are there any remedies available in local courts to compel delivery of the vessel when the yard refuses to do so?

Egyptian law gives the principal ordering the building of the ship the right to resort to a competent court seeking to oblige the yard to deliver the ship. However, it must be added that the court will investigate the reason for refusing to let the yard deliver the vessel and whether the principal performed its obligations as per the conditions of the contractual agreement between the parties to build the vessel.

Where the vessel is defective and damage results, would a claim lie in contract or under product liability against the shipbuilder at the suit of the shipowner; a purchaser from the original shipowner; or a third party that has sustained damage?

Under Egyptian Maritime Law, the shipbuilder will be liable for the hidden damage or defects resulting from a manufactoring fault. Furthermore, the shipbuilder shall guarantee that the ship will be free of hidden damages and defects, even if the principal ordering its construction accepts the ship after testing it. Moreover, the Egyptian Maritime Law defines that the action to guarantee that a ship is free of hidden damages and defects shall lapse after one year, calculated from the date the damage or the defect was known. Likewise, the action shall lapse after two years from the time the ship is handed over, unless the shipbuilder is proven to have deliberately hidden the defect in advance.

Ship registration and mortgages

What vessels are eligible for registration under the flag of your country? Is it possible to register vessels under construction under the flag of your country?

Generally, all types of ships are eligible for registration under the Egyptian flag. A vessel shall acquire Egyptian nationality if it is registered in an Egyptian port with a name accepted by the competent administrative quarter, which will review the vessel’s certificates and sketches. The ship’s name accompanied by its register number shall be put up in a prominent place, according to such provisions as shall be prescribed in a decree by the competent minister. However, foreign cargo vessels that can acquire the Egyptian flag shall not exceed 20 years from the year of build. This period is reduced to 15 years in the case of passenger ships.

It is also not possible to register a ship under construction under the Egyptian flag. The ship owner is entitled to apply for registration while the vessel is under construction, but the registration will not be executed until the construction is completed and the vessel is in the water.

Who may apply to register a ship in your jurisdiction?

The physical or juridical Egyptian person. If the vessel is jointly owned, the majority of shares should be held by Egyptians for the ship to acquire Egyptian nationality.

What are the documentary requirements for registration?

The essential documents required for registration are (i) a construction certificate in the case of newly built vessels or the vessel’s bill of sale clarifying that it has been sold to an Egyptian company or person, and detailing that there is no mortgage on the vessel; and the vessel’s classifications; (ii) Egyptian party documents such as the commercial registry that will be detailing the purpose of the company owning vessels and the company’s article of association; and (iii) the deletion certificate.

The technical documents required are as follows:

• a general chart of the vessel (accredited by one of the International Association of Classification Societies (IACS) rating agencies);
• balance and immersion calculations;
• load measurements according to Egyptian rules (Oslo 47);
• capacity plan approved by one of the IACS rating agencies;
• the plate thickness report at the beginning of the design and the latest sheet thickness measurement report;
• ship compliance report for the requirements of the International Rules for the Prevention of Collisions at Sea 1972;
• a fire scheme (certified by a member of IACS);
• a certificate of validity issued by the previous flag state as well as classification bodies;
• ship plans (marine oil pollution plan, garbage disposal plan, maritime security plan, ballast water management plan); and
• a report concerning dry dock for the ship and the works carried out and approved by one of the IACS classification societies.

Is dual registration and flagging out possible and what is the procedure?

Egyptian vessels may not fly another flag as such an act is not commensurate with Egyptian law.

Who maintains the register of mortgages and what information does it contain?

An official copy of the mortgage contract shall be submitted to the ship’s registration office, accompanied by two statements signed by the applicant for registration comprising, in particular, the following:

• the names of each of the creditor and the debtor and their respective addresses and professions;
• the date of contract;
• the amount of the debt as indicated in the contract;
• the conditions for debt settlement;
• the name of the mortgaged ship and its descriptions, as well as the date and number of the registration certificate or a declaration of ship construction; and
• the creditor’s elected domicile in the precinct of the registration office where the entry is processed.

Limitation of liability

What limitation regime applies? What claims can be limited? Which parties can limit their liability?

The Egyptian Maritime Law allows the shipowner to limit its liability, even if the debt is in favour of the state or public sector, and if damage arises from any of the following causes:

• the damages caused by the ship to the harbour’s installation, dockyards, water courses, or navigational aids; or
• physical or material damages occurring on board the ship, or those connected directly with maritime navigation or the operation of the ship.

The ship-owner is not the only party who has the right to limit liability. Pursuant to the provisions of Egyptian Maritime Law, the limitation of liability can also be applied in respect of the ship’s operator, who is not the owner, charterer, manager, master or seaman, in addition to other subordinates of the owner, operator, charterer or manager, as regards the performance of their duties and according to the same conditions as those applicable to the owner, provided always that the liability of the owner as well as his or her subordinates shall not exceed the limits set down in the Egyptian Maritime Law with regard to the same accident. The law also grants the right to apply limitation to the master or the seaman if proceedings are brought against them.

Egypt has ratified the London Convention on Limitation of Liability for Maritime Claims (LLMC 1976). Therefore, if a claim is brought before the Egyptian Courts and involves an of the persons defined in the LLMC 1976 as parties to the Convention, then the said person shall be entitled to seek the application of the provisions of the limitation of liability stipulated in the Convention. However, we cannot yet ascertain when the new limits will come into effect as Egypt has not yet adopted 1996 protocol. It should be borne in mind that the provisions of any international convention Egypt may ratify do not come into effect until a local legislation (law or decrees, as appropriate) is rendered allowing the implementation of such convention.

What is the procedure for establishing limitation?

Although Egypt is a signatory to the LLMC 1976, there are no specification formalities for establishing a limitation fund in Egypt. Also, the Egyptian Maritime Law does not regulate the procedure for setting one up. Meanwhile, the shipowner must present a limitation defence before the court when the litigation process starts and insist on applying it to the claim brought against it.

In what circumstances can the limit be broken? Has limitation been broken in your jurisdiction?

As mentioned in question 11, the limitation rules are to be considered as a defence to be raised before the court during the litigation process and thus it will be up to the court’s own discretion as to whether it allows such a defence or not, especially as the formalities of establishing fund are not specified or regulated by the Egyptian Maritime Law.

Limitation of liability shall not be applied to:

• floating a sunken, stranded or deserted ship, lifting wrecks, or cargo, and objects found on them;
• salvaging the ship;
• participating in general average;
• nuclear damage;
• the rights of the ship’s master, crew and all other subordinates to the shipowner working on the ship or whose job is related to serving the ship. This right is also determined for the successors and heirs of the said persons; and
• damage resulting from oil pollution and contamination by other materials.

The limitation rules shall not also apply in cases where the claimant established by proof that damage has resulted from a deliberate act on the part of the carrier or the carrier’s deliberate refraining from carrying out an act with the aim of causing harm, or if the damage occurred as a result of recklessness accompanied by awareness that this act might result in causing such damage.

What limitation regime applies in your jurisdiction in respect of passenger and luggage claims?

Egypt has acceded to the Athens Convention relating to the Carriage of Passengers and their Luggage by Sea, 1974 (PAL 1974). However, if the Convention is not applied in certain cases the Egyptian Maritime Law will be applicable, which determines the limitation of the carrier’s liability in the event of a passenger’s death or injury. This law also determined a limitation for damage or loss occurring to the passenger’s recorded luggage, as well as for cars or other vehicles. The limitation may not be applied if the accident occurred because of an act by or negligence of the carrier designee with the aim of causing harm, or owing to carelessness or recklessness coupled with a perception that harm could occur.

Port state control

Which body is the port state control agency? Under what authority does it operate?

The Port State Control in Egypt, a department of the Egyptian Authority for Maritime Safety, which is one of the Ministry of Transport’s ‘maritime sector’ institutions.

What sanctions may the port state control inspector impose?

The Port State Control inspector has the authority to prevent a vessel from departing any Egyptian port or delaying a vessel for a designated period until the vessel carries out the requested rectification work or completes the necessary certificates. In some cases it will leave the vessel with a warrant to carry out the requested repairs at the next port of call.

What is the appeal process against detention orders or fines?

In general, the ship’s classification society or in some occasions, the flag state, are the ones who tend to meet the requirements of the Port State Control.

A ship can always protest against the decisions of the Port State inspector to the same authority but to higher ranked officials if it is deemed that the inspector’s decisions are somehow arbitrary.

Finally, there is always an option to resort to litigation to challenge any decision that can be proven to be lacking legal grounds or that is abusive.

Classification societies

Which are the approved classification societies?

The Port State approves most, if not all, of the classification societies. However, the Egyptian flag only recognises the 12 IACS member societies.

In what circumstances can a classification society be held liable, if at all?

Usually the classification society is not to be held liable for deficiencies or any remarks and the observations the Port State inspectors may have with respect to a particular vessel, despite the fact that the classification society is responsible for issuing and validating the majority of a vessel’s certificates except for the following four certificates, which are to be issued by the ship’s flag: ship’s register certificate, ship’s station licence, minimum safe manning certificate and ship’s continuous synopsis record.

Should inaccurate or falsified certificates (in the eyes of the Port State) be issued by a specific classification society, such society will lose its credibility before the Port State, which will have the right to double check any certificate to be issued by the society or, in a worst-case scenario, even temporarily suspend dealings with that society.

Collision, salvage, wreck removal and pollution

Can the state or local authority order wreck removal?

Yes, a competent local authority can order wreck removal.

Which international conventions or protocols are in force in relation to collision, wreck removal, salvage and pollution?

Egypt acceded to the Convention for the Unification of Certain Rules of Law with respect to Collisions between Vessels, 1910, as well as the International Convention on Salvage, 1989. Moreover, Egypt acceded to the Protocol to the International Convention on Civil Liability for Oil Pollution Damage, 1969 and the Protocol of 1992 to amend the International Convention on Civil Liability for Oil Pollution Damage, 1969.

Is there a mandatory local form of salvage agreement or is Lloyd’s standard form of salvage agreement acceptable? Who may carry out salvage operations?

We must differentiate between whether the salvors are a governmental authority or entity or not, as in the latter case, the form or conditions of the salvage agreement will be decided upon freely between the ship’s owners and the salvors, whereas if the salvors happened to be a governmental entity, they will be dictating their terms.

Whenever the salvage operation is carried out within port limits or within the Suez Canal waters, the operation will be carried out by the use of the Port Authority or the Suez Canal Authority tugboats and, in some cases, the Egyptian Navy may attempt to take matters into its own hands. In addition, the Lloyd’s standard form is acceptable in Egypt.

Ship arrest

Which international convention regarding the arrest of ships is in force in your jurisdiction?

Egypt ratified the Brussels Convention 1952 and has not ratified the International Convention on the Arrest of Ships 1999.

In respect of what claims can a vessel be arrested? In what circumstances may associated ships be arrested? Can a bareboat (demise) chartered vessel be arrested for a claim against the bareboat charterer? Can a time-chartered vessel be arrested for a claim against a time-charterer?

An arrest could be applied for security owing to a claim, which would come within the ‘maritime claims’ as defined in the 1952 Arrest Convention, a concept that the Egyptian Maritime Law has adopted. Moreover, in the event that the ship subject to the creditor’s claim is not available, under Egyptian Maritime Law the creditor can apply to arrest a sister ship owned by the claim debtor. However, for claims related to dispute over the ship’s ownership, or dispute over common ownership of the ship, disputes over holding or exploiting and using it, or a marine mortgage, the arrest shall be applied only to the ship subject to the debt.

Generally, the concept of arrest is to determine a security on the creditor over the ship that is related to his or her debt. Therefore, there are no restrictions on a third party applying an arrest for security on the ship subject to his or her debt. Meanwhile, the shipowners could raise the defence on his or her liability under bareboat charter party or time charter party before the court if an arrest has been successfully applied.

Does your country recognise the concept of maritime liens and, if so, what claims give rise to maritime liens?

The Egyptian Maritime Law recognises the concept of maritime liens, as the creditor could exercise lien on the cargo that is in the creditor’s custody and owned by the debtor.

What is the test for wrongful arrest?

In the case of wrongful arrest that occurred in the light of bad faith or ultimate failure of the claim and this has been proven by the aggrieved party, the latter shall have the right to instigate a compensation or recovery action against the arrest applicant.

Can a bunker supplier arrest a vessel in connection with a claim for the price of bunkers supplied to that vessel pursuant to a contract with the charterer, rather than with the owner, of that vessel?

The bunker supplier could apply to arrest a vessel in connection with a claim for the price of the bunker supplied to that vessel as a security, even if that debt is exclusively the responsibilty of the charterer who assumes the vessel’s navigational management.

Will the arresting party have to provide security and in what form and amount?

No security from the arresting party is required to be provided as a security to apply before the competent judge for obtaining an arrest order.

How is the amount of security the court will order the arrested party to provide calculated and can this amount be reviewed subsequently? In what form must the security be provided? Can the amount of security exceed the value of the ship?

As stipulated in the Egyptian Maritime Law, the competent judge is entitled to issue another order to lift the arrest if the execution debtor submitted a security sufficient to cover the debt under which the arrest is imposed. And in such case the effect of the arrest will be transferred to the security, the vessel will be allowed to sail and the security will be held by the court until final judgments are issued in the consequential legal actions to be filed by both litigants (the affirmation of arrest or objection on the arrest).

The Egyptian courts are familiar with banks’ letters of guarantees as acceptable security for transferring the effect of the arrest from the vessel to the submitted letter of guarantee.

Practically and legally speaking, the amount of security is not bonded by the value of the vessel and in some cases it does exceed the value of the ship.

What formalities are required for the appointment of a lawyer to make the arrest application? Must a power of attorney or other documents be provided to the court? If so, what formalities must be followed with regard to these documents?

First, the arrest application shall be submitted through a lawyer according to a power of attorney (POA) empowering them to attend before the court on behalf of the arrestor. Second, a detailed explanation of the claim must be prepared by the lawyer of the arrestor including reasons for applying for security and detailing the claim amount. Third, all of the relevant documents must be submitted in hard copy by the applicant before the court proving the claim and its quantum, showing that the debt is a maritime claim and the subject vessel is berthing at an Egyptian port. However, the supporting documents should be original documents and officially translated into Arabic to be accepted by the Egyptian courts, otherwise, the chances of obtaining an arrest order from the court will not be good. The preparation for submitting the arrest application can take between two and three days if the POA and the supporting documents are ready.

Who is responsible for the maintenance of the vessel while under arrest?

The owner of the vessel is the party responsible for the vessel’s maintenance as the vessel is under his or her custody and management. Furthermore, the owner of the vessel will be the aggrieved party if any harm is sustained to the vessel during the arrest period.

Must the arresting party pursue the claim on its merits in the courts of your country or is it possible to arrest simply to obtain security and then pursue proceedings on the merits elsewhere?

According to Egyptian Maritime Law, in the case of acceptance the applicant is entitled to file the court case for affirming the arrest order within right days from the date of executing the arrest order, otherwise the arrest order will be considered null and void. So, any granted arrest order is usually followed by an affirmation action to be issued by the arresting party in which the arrestor will try to establish the righteousness of the merits of his or her claim.

Having said that, theoretically and legally speaking, the Egyptian courts shall be competent to deal with the provisional and conservative measures that are carried out in Egypt, even if they are not competent to examine in the original case. And in such case, the applicant may request the court in the affirmation of the arrest legal action to suspend the proceedings associated with the arrest that take place in Egypt until the competent court abroad decides on the merits of the dispute. It will be at the Egyptian’s court discretion whether to allow the request of suspending the proceedings.

Apart from ship arrest, are there other forms of attachment order or injunctions available to obtain security?

There are no other forms of attachment orders or injunctions available to obtain security.

Are orders for delivery up or preservation of evidence or property available?

It is possible under Egyptian law to file an urgent case before the court seeking to deliver evidence or property available from the opponent.

Is it possible to arrest bunkers in your jurisdiction or to obtain an attachment order or injunction in respect of bunkers?

The principal rule under Egyptian law is that the creditor may apply before the court to obtain an order to arrest the assets of the debtor as security for the claimed debt. The court would consider such application and may or may not grant the said order.

On the other hand, as far as the arrest of bunkers is concerned, from our vast experience in such disputes, we have always found that Egyptian courts are extremely reluctant to grant these kinds of orders of arrest. Furthermore, if the courts grant such an order it would be difficult to enforce it owing to the facilities needed to execute it.

Judicial sale of vessels

Who can apply for judicial sale of an arrested vessel?

The creditor who has an executive deed accepted by the Egyptian courts may apply for judicial sale of an arrested vessel owned by the debtor.

What is the procedure for initiating and conducting judicial sale of a vessel? How long on average does it take for the judicial sale to be concluded following an application for sale? What are the court costs associated with the judicial sale? How are these costs calculated?

If a court orders the sale of a vessel the creditor shall prepare a notice about the sale, which shall be published in a daily newspaper. The sale conditions shall also be affixed at the office of registration of the ship, on the ship itself, and at any other place to be determined by the court. The notice shall include all the required information on the vessel and the sale details. The sale process may take around three to six months to be accomplished from the date of the court order by selling the vessel provided that none of the parties who requested the sale or the creditors have instigated legal actions to challenge the sale procedure.

The court’s dues for selling vessel in auction are up to 2.5 per cent of the proceeds of sale.

What is the order of priority of claims against the proceeds of sale?

The following would exclusively constitute privileged rights against the proceeds of sale:

• court dues incurred in selling the vessel and distribution of the proceeds of sale;
• dues and taxes owed to the state or any public body, tonnage dues, port, towage and pilotage dues; the cost of watching and preservation and other maritime services;
• claims arising out of the contract of engagement of the master, crew and other persons hired on board.
• remuneration for assistance and salvage, and the contribution of the vessel in general average;
• indemnities for collision or pollution or other accidents of navigation, and indemnities for damages sustained to harbour installations, basins and navigable ways, indemnities for personal injury to passengers or crew, indemnities for loss of or damage to cargo or baggage; and
• claims resulting from contracts entered into or acts done by the master, acting within the scope of his authority, away from the vessel’s home port, where such contracts or acts are necessary for the preservation of the vessel or the continuation of its voyage, whether the master is at the same time owner of the vessel, and whether the claim is his or her own or that of ship chandlers, repairers, lenders or other contractual creditors or because of an agent’s acts.

What are the legal effects or consequences of judicial sale of a vessel?

Yes, the legal effect of the judicial sale of vessel is giving the purchaser clean title.

Will judicial sale of a vessel in a foreign jurisdiction be recognised?

Yes, according to the law.

Is your country a signatory to the International Convention on Maritime Liens and Mortgages 1993?

Egypt is not a signatory to the International Convention on Maritime Liens and Mortgages 1993.

Carriage of goods by sea and bills of lading

Are the Hague Rules, Hague-Visby Rules, Hamburg Rules or some variation in force and have they been ratified or implemented without ratification? Has your state ratified, accepted, approved or acceded to the UN Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea? When does carriage at sea begin and end for the purpose of application of such rules?

Egypt has ratified the United Nations International Convention on the Carriage of Goods by Sea, Hamburg Rules and its conditions are applicable in Egypt.

Are there Conventions or domestic laws in force in respect of road, rail or air transport that apply to stages of the transport other than by sea under a combined transport or multimodal bill of lading?

Egypt is a signatory to the Montreal Convention 1999. In the case of combined transportation or multimodal bill of lading, each stage of transportation will be governed by its own law.

Who has title to sue on a bill of lading?

In general, the three parties of the bill of lading or any third party who has received any right from those three parties or the legitimate holder of the bill of lading are the parties entitled to instigate any legal action relating to the contract of carriage.

To what extent can the terms in a charter party be incorporated into the bill of lading? Is a jurisdiction or arbitration clause in a charter party, the terms of which are incorporated in the bill, binding on a third-party holder or endorsee of the bill?

The terms of a charterparty could be incorporated with the bill of lading if the bill of lading is issued pursuant to a charter party, and the charter party’s terms govern the relationship between the carrier and the holder of the bill of lading, who is not the charterer.

If the charter party contains a provision by referring the disputes to arbitration and a bill of lading issued pursuant to the charter party. The arbitration clause provision must clearly state that the clause is binding on the bill of lading holder, otherwise the carrier’s chances of invoking the provision against the third-party holder or endorsee will be poor.

Is the ‘demise’ clause or identity of carrier clause recognised and binding?

Demise and identity of carrier clauses are not recognised or binding under the Egyptian Maritime Law.

Are shipowners liable for cargo damage where they are not the contractual carrier and what defences can they raise against such liability? In particular, can they rely on the terms of the bill of lading even though they are not contractual carriers?

Normally the cargo interests’ claim should be oriented against the contractual carrier and the latter should be entitled to implicate the shipowner in the proceeding by means of a collateral sub-lawsuit.

If it is proved that the damage giving rise to a particular cargo claim occurred while the cargo was in the custody of the actual carrier and not the contractual carrier, the shipper will be entitled to claim jointly and severally from both the actual and contractual carrier for the value of the loss.

What is the effect of deviation from a vessel’s route on contractual defences?

See question 46.

What liens can be exercised?

In the charter party, the owner of the vessel is legally entitled to exercise lien on the cargo owned by the charterer if the latter failed to pay the required amounts to the owner. Another right given to the owner by Egyptian laws is to exercise a lien on cargo that has not been delivered by the consignee.

What liability do carriers incur for delivery of cargo without production of the bill of lading and can they limit such liability?

If the carrier fails to issue a bill of lading, it may run high legal risks. When a person other than the real receiver of the goods legally possesses the bill of lading, it usually constitutes a false delivery by the carrier.

What are the responsibilities and liabilities of the shipper?

Once the shipper submits to the shipping line or agency a shipping declaration that includes the cargo’s particulars, this is a clear disclosure of its intention to ship the goods via that shipping line to its desired route. Accordingly, the shipper has to withdraw the assigned empty container from the shipping agency’s yard for stuffing and sealing, gating-in the container prior to the vessel’s arrival for shipping on board the assigned vessel. It receives the original copies of bills of lading from the shipping line or agency once the vessel sails and sends these originals to the assigned consignee, enabling it to receive the goods at the port of discharge. If the receiver nominated by the shipper does not deal with the carrier’s agent at the port of discharge, the shipper is then liable as regards the carrier for compensation because of undelivered cargo. Moreover, the shipper is responsible for loss or damage sustained by the carrier or the ship resulting from the shipper’s cargo or shipper’s fault or neglect, its agents or its servants.

Shipping emissions

Is there an emission control area (ECA) in force in your domestic territorial waters?

Within the limits of the ports and the Suez Canal waters, the competent authorities are entitled to impose fines on vessels emitting heavy smoke.

What is the cap on the sulphur content of fuel oil used in your domestic territorial waters? How do the authorities enforce the regulatory requirements relating to low-sulphur fuel? What sanctions are available for non-compliance?

So far, Egypt has not ratified the Marpol Annex VI regarding provision. The prevention of air pollution from ships is presently governed by both the Egyptian law for the environment and internal ports’ regulations. According to the environment law, the percentage of sulphur should not exceed 1.5 per cent. In the case of non-compliance, the port authority normally asks the vessel’s local agents to pay the penalty and may deduct this amount from the agents’ bank guarantee, which it withholds.

Ship recycling

What domestic or international ship recycling regulations apply in your jurisdiction? Are there any ship recycling facilities in your jurisdiction?

No, there are no laws or regulations controlling ship recycling in Egypt. The vessels usually come to dry dock for scrapping and not for recycling.

Jurisdiction and dispute resolution

Which courts exercise jurisdiction over maritime disputes?

There are no specialist courts that handle maritime disputes. The competent courts that deal with this kind of case are the Egyptian commercial courts in the domicile of the defendant or at any of the loading or discharging port are located or at which the vessel was arrested.

In brief, what rules govern service of court proceedings on a defendant located out of the jurisdiction?

The laws governing the service of the court proceedings are the general rules stipulated in the Egyptian Procedures Law for Civil and Commercial Matters and in cases where the defendant is located abroad, the law regulates the serving of such documents through diplomatic channels.

Is there a domestic arbitral institution with a panel of maritime arbitrators specialising in maritime arbitration?

Yes (though not so active due to the presence of the local jurisdiction).

What rules govern recognition and enforcement of foreign judgments and arbitral awards?

Egypt has duly acceded to the New York Convention of 1958 on the recognition and enforcement of foreign arbitral awards, and the Egyptian Procedures Law for Civil and Commercial Matters stipulates the formalities of enforcing the foreign judgments and arbitral awards.

Are asymmetric jurisdiction and arbitration agreements valid and enforceable in your jurisdiction?

The Egyptian legislator recognises the pacta sunt servanda principle and thus the disputing parties should be entitled to agree resorting to arbitration and the arbitration clause should be binding on both contracting parties.

What remedies are available if the claimants, in breach of a jurisdiction clause, issue proceedings elsewhere?

The principle of domestic jurisdiction is not one of the public order rules, and thus a defendant who insists on the application of the arbitration clause has to clearly raise, and insist on, the defence related to the local court’s incompetency to rule over such dispute before raising any subjective defence related to the merits of the dispute itself. In normal cases the court should examine the jurisdiction’s defence and decide upon it before examining the subjective aspects of the case.

What remedies are there for the defendant to stop domestic proceedings that breach a clause providing for a foreign court or arbitral tribunal to have jurisdiction?

See question 59.

Limitation periods for liability

What time limits apply to claims? Is it possible to extend the time limit by agreement?

The Egyptian maritime law stipulates a time bar of two years for most claims of a maritime nature, whereas Egyptian civil law stipulates a time bar of three years with respect to the liability in tort. Such periods are binding and it is not permissible to agree on the appliance of different periods. However, the party beneficiary of the statute of limitations is entitled to waive the time bar defence provided that this waiver is presented following the completion of the limitation period.

May courts or arbitral tribunals extend the time limits?

The courts or arbitral tribunals cannot extend time limits.

Miscellaneous

How does the Maritime Labour Convention apply in your jurisdiction and to vessels flying the flag of your jurisdiction?

According to Egyptian law, conventions are legally binding and have force over the law.

Is it possible to seek relief from the strict enforcement of the legal rights and liabilities of the parties to a shipping contract where economic conditions have made contractual obligations more onerous to perform?

A party can seek relief from its obligation without compensating the other party for non-execution if it becomes impossible for the obligation to be executed. In this respect, at its own discretion the court may allow the aggrieved party’s request for a partial relief of its obligations to proportionate unexpected new economic conditions.

Are there any other noteworthy points relating to shipping in your jurisdiction not covered by any of the above?

No.

Update and trends

Are there any emerging trends or hot topics that may affect shipping law and regulation in your jurisdiction in the foreseeable future?