Increased focus on decarbonization has led to more shipbuilding involving state of the art technologies, such as:
duel-fuel LNG and LPG vessels, able to burn both traditional conventional HFO bunkers;
exhaust gas cleaning equipment – also known as scrubbers;
modifications or new-build designs to comply with decarbonisation rules such as EEXI / CII regulations;
ammonia-ready ships, built with the intention to be ready to switched to ammonia fuel once reliable supply becomes available. (As ammonia contains no carbon its use does not emit any CO2), and projects to install and retrofit sails on cargo ships to harness wind power to lessen reliance on mechanical propulsion.
Incorporation of new and innovative systems means the scope for warranty disputes is increased. There are some points that buyers should be aware of.
Warranty claims are subject to strict time limits and the courts will uphold these
A shipyard will typically provide a warranty covering defects in a newbuild vessel, machinery and equipment for 12 months from delivery.
English courts will only intervene to interpret a warranty time bar narrowly against the person relying on it (because it is an exclusion clause) if the time bar is ambiguous in the first place. If the time bar is not sufficiently ambiguous, the courts will not intervene to put a strained interpretation on a clear contractual time limit.
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