What is ship agent? Conditions for shipping agency services in Vietnam

What is ship agent?

Based on the provisions of the Vietnam Maritime Code 2015, ship agent refers to a kind of service related to the ship operating at ports which the person acting on behalf of the ship owner as an agent or the operator of the ship performs, including

+ Undertaking procedures for the ship’s entering and leaving the port;

+ Signing the contract for carriage, marine insurance contract, goods loading or unloading contract, charter-party, contract for employment of seafarers;

+ Signing and issuing bills of lading or equivalent transport documents;

+ Furnishing the ship with materials, fuel, food supplies, potable water; filing a sea protest;

+ Keeping in contact with the ship owner or operator; performing seafarer-related services;

+ Collecting and spending sums relating to ship operating activities;

+ Resolving any dispute regarding the contract for carriage or marine accidents as well as rendering other ship-related service.

What is ship agent? Conditions for shipping agency services in Vietnam (Internet image)

Conditions for shipping agency services in Vietnam

Pursuant to Article 11 and Article 12 of Decree 160/2016/ND-CP regulating shipping agency service business conditions include:

(1) Conditions for shipping agency services

Any enterprise providing shipping agency services in Vietnam must be established in accordance with legal provisions. In a case where a foreign-invested enterprise provides shipping agency services, the foreign investors’ capital holding may not exceed 49% of the enterprise’s charter capital.

(2) Conditions for organizational structure and personnel

- Any person in charge of business and operation of shipping agency services must obtain at least a college’s degree in one of maritime, foreign trade, commercial or economic specialties.

- Any person in charge of legal affairs must obtain at least a college’s degree in law speciality.

- Any staff member of a shipping agency must be a Vietnamese citizen, granted with a professional certificate of shipping agencies as prescribed by the Minister of Transport.

Regulating the obligations of shipping agents and entrusting party in Vietnam

(i) Obligations of the ship agent

Pursuant to Article 238 of the Vietnam Maritime Code 2015, the obligations of the ship agent are stipulated as follows:

- The ship agent shall be responsible for performing necessary acts to take good care of legitimate rights and benefits of the entrusting party; bound to comply with requirements and instructions of the entrusting party; notify the entrusting party in a timely manner of events relating to entrusted duties; accurately calculate receipts and expenditure associated with entrusted duties.

- The ship agent shall be responsible to pay the entrusting party compensation for any loss or damage resulted from his fault.

(ii) Liabilities of the entrusting party

Pursuant to Article 239 of the Vietnam Maritime Code 2015, the liabilities of the entrusting party are specified as follows:

- The entrusting party shall be responsible for instructing the ship agent to perform entrusted services whenever necessary and must pay an estimated sum of advance for entrusted services upon the request of the ship agent.

- Where the ship agent performs acts beyond the scope of fiduciary duties, the entrusting party shall remain responsible for these activities to the extent that the entrusting party with his knowledge of this issue has not notified persons involved of his refusal to recognize these acts of the ship agent.

Mai Thanh Loi

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