LEGAL OPINION – Agreement for the management of a vessel belonging to a third party

Modern practice has seen the emergence of various schemes whereby the owner of a vessel entrusts her management to a manager, who undertakes the technical management of her. Such management involves maintenance, supplying and crewing of the vessel.

Another alternative is the agreement for technical and commercial management, which also includes chartering of the vessel, receipt of the freight/ hire and tasks related thereto.

The manager contracts on behalf of the owner, in the latter’s name, and he is not liable for grounds arising from such contracts, as he acts for the owner.

Piraeus Court of Appeal Judgment no 162/2018, President: D. Tsoutsani, Rapporteur Judge: A. Theofanis, Attorneys at law: V. Antoniadis, Gr. Timagenis, Maritime Law Review vol. 46, p. 20.

NOTE: The capacity of exploiter (efoplistis) of the vessel is distinct. In that case a party exploits on his own account a vessel owned by another party.

Here, liabilities arising out of the exploitation of the vessel are for the exploiter (efoplistis) and not the owner.