NAVIGATING THE OCEANS OF TRADE RELATIONS: A DIVE INTO MARITIME AND INTERNATIONAL TRADE LAWS

K. Sonudeep Rathod, Student, Damodaram Sanjivayya National Law University

Introduction 

International and maritime trade laws now act as a compass for this connected world across which goods move daily across oceans. These laws promote the healthy functioning of international trade by ensuring that those involved can exercise their rights while promoting the health of the marine environment and balancing economic opportunities.

The essence of maritime laws 

Maritime law, colloquially known as admiralty law, comprises the corpus juris governing the private maritime business aspects and all other matters similar to shipping, navigation, seafarers’ rights, and marine resource management. Having such historical roots, it assumes an extremely important role in the regulation of commerce and the maintenance of order on the high seas.

Historical Roots

This law is probably the oldest in the world, starting with the Rhodian Sea Laws (circa 900 BC) which went on to form the basis. Maritime trade has grown significantly since these ancient days, and as such legal enactments became comprehensive, such as Lex Mercatoria (Law Merchant) in medieval Europe. The Rules of Oleron from the 12th century provided some of the first guidelines for resolving disputes between traders and seafarers.

The Constitution of Principles of Maritime Law

• Freedom of Seas: It is a general accepted principle of maritime law that navigable international waters be made free for navigation and trade by all. The principle prohibits the monopoly by any one country over international waters. It is part of the codification of the United Nations Convention on the Law of the Seas (UNCLOS).

– Jurisdiction and Flag States: Ships fly the flags corresponding to the nations under whose laws they are registered. Flag states are required to provide that the vessels flying their flags will conform to international safety and environmental standards, a condition of unique mix of sovereignty and accountability.

• Salvage and Treasure Recovery: In this respect, maritime law defines the rights and obligations in enforcement of salvage operations, providing incentives to rescue distressed vessels at the same

• time providing equity and fair compensation for salvage services. This consists of rules by which under water treasures could be recovered and adjudication of disputes on ownership settled.

• Maritime Liens and Claims: This principle secures creditors like the seafarer or service provider of compensation to their effort in a marine venture. The holding of the lien can be enforced by arresting ships, which is the peculiar feature of maritime legal proceedings.

• Rights and Obligations of Seafarers: Maritime Labour Convention, or MLC, is the Convention widely known as “Seafarers’ Bill of Rights.” It prescribes minimum working and living standards for the members of a crew, ensuring that they are fairly paid, they receive adequate rest, and that safety is maintained at their workplace.

The Framework of International Trade Law

International trade law will govern cross-border trade but unlike maritime law which concentrates on the sea This includes ;

• Trade Agreements: WTO rules on the fair trading practices of nations.
• Incoterms: Standardised terms defining buyers’ and sellers’ responsibilities in international transactions.
• Customs and Tariffs: These are the regulations specifying the imports and exports of goods.

Dispute Resolution: Mechanisms such as arbitration via UNCITRAL rules for an efficient use of resolving trade disputes.

The Confluence: Maritime and Trade Laws in Action

Therefore, although international trade law shall govern trade across borders, it does not revolve around the seas like maritime law does. These are the characteristics:

Trade Agreements: Fair trading practices towards nations through WTO rules.

• Incoterms: Standardized terms defining the responsibilities of buyer and seller in international transactions.

Customs and Tariffs: These are the regulations which prescribe imports and exports of goods.

• Dispute Resolution: Mechanisms such as arbitration via UNCITRAL rules for an efficient use of resolving trade disputes.

1. Shipping Logistics: The Lifeblood of Global Trade

At the interface of maritime laws and trade laws lies the broad logistics chain that ensures that goods reach their destination smoothly.

• Role of Incoterms in Logistics:

Incoterms or International Commercial Terms determine the responsibilities of the buyer and seller in trade agreements-e.g., who pays freight, insurance, and clearance costs. The maritime law leverages this agreement by constructing the carriage of goods by sea at law.

• Bills of Lading and Trade Documents:

A bill of lading makes up the three elements: a document of title, a receipt, and a contract of carriage together under governing maritime law. International trade law ensures that documents always conform to international standards for customs clearance or payment used in it, except the house bills for internal use by the transportation companies.

2. Environmental Compliance: Ensuring Sustainable Trade

Both maritime and trade laws prioritize environmental sustainability, with regulations aimed at reducing the ecological impact of shipping.

• MARPOL and Carbon Emission Caps:

The International Maritime Organization (IMO) mandates the reduction of greenhouse gas emissions through MARPOL regulations. Trade laws complement these efforts by incentivizing eco-friendly shipping practices through carbon credits and green financing.

• Sustainable Shipping Routes:

Trade laws encourage the adoption of routes that minimize environmental damage, while maritime laws ensure safe navigation through ecologically sensitive areas like the Arctic.

3. Port operations and customs clearance

Ports are the meeting points between maritime and trade laws.

•  Port State Control (PSC). To the extent that they are established by the laws of both trade and maritime law, port states have powers to commence inspection of foreign flag ships on matters such as safety, labor, and environmental regulations. At the same time, they are the trade laws with regard to customs clearance of cargoes with respect to tariff calculations in addition to import/export policies.

• Free Trade Zones (FTZs). Across many ports are FTZs within which goods can be stored or processed or re-exported without any customs duties levied. More so, this requires combining maritime law with the trade law that have a scope on port operations and duty exemption and compliance, respectively.

4. The Current Technology and Future for Integration.

Technological changes, like blockchain, AI, and IoT, have completely changed the way maritime law relates to trade law.

Blockchain in Shipping:

• Because of blockchain, the trade documents, such as smart contracts or even digital bills of lading, are entirely encoded and secured. Such a system has simplified compliance with maritime and trade laws.

•  Automated Shipping and Logistics Automation:

The advent of autonomous ships means that maritime law will have to embrace liability and operational guiding principles, while trade law must accommodate fully digitised transactions.

Contemporary Issues and Prospects

The growing volume of trade has brought with it challenges such as piracy, cyber threats to shipping systems, and degradation of the environment, which require innovative legal solutions. Some new emerging technologies such as blockchain that will revolutionise trade documentation have autonomous vessels challenging existing maritime laws.

The Role of India in Maritime and Trade Laws

India has a long stretch of coastline, with a strategic geolocation in terms of relationships across the globe. Therefore, it is expected of India to play a major role in international maritime trade. The laws of the country are directed to international conventions and the domestic needs of the country. For example, Sagarmala development programs and compliance with UNCLOS are two major indicators of India’s initiatives toward maritime sustainability in development.

Conclusion

Maritime and international trade laws are the lifelines of global commerce. As nations, industries, and stakeholders collaborate to overcome challenges, these legal frameworks will continue to evolve, ensuring fair trade, environmental stewardship, and prosperity for all.