Kuala Lumpur: One of the top maritime lawyers in Malaysia has some useful advice for shipowners in today’s Maritime CEO profile.
James David, a founding partner in Kuala Lumpur-based law firm Shaikh David Raj, says owners need to choose their vessel employment and charterers carefully. “There are many operators out there who are working on an opportunistic basis and may not necessarily have the experience to cope with more difficult economic times,” he suggests.
David says clients are currently cautious in their approach to litigation matters.
“They will pursue or defend cases which are only going to be cost-effective in the long run,” he explains. A lot of effort is being put into exploring alternative means of dispute resolution without rushing to the courts or arbitration.
“In the course of this year, we have seen an increase in claimants against shipowners seeking to arrest vessels. While obtaining pre-litigation security has always been an important step it is perhaps more important now than ever,” says David.
In Asia in particular shipping companies need to keep a lean operation, David says. “Managing cash-flow and credit will probably be the biggest challenge as many Asian countries have started to severely restrict the flow of credit,” he warns. [11/09/13]
