Explain why voyage and time charteres are exempted from the application of liabilities of OPA-90?

Voyage charters and time charters are exempted from the application of liabilities under the Oil Pollution Act of 1990 (OPA-90) for specific reasons. To understand why these charters are exempt, let's first explain what voyage and time charters are and then delve into the OPA-90 legislation.

1. Voyage Charter: In a voyage charter, the shipowner agrees to transport goods or passengers from one port to another at a specified price. The shipowner is responsible for fuel expenses, crew wages, and other costs associated with the voyage.

2. Time Charter: In a time charter, the shipowner leases the vessel to the charterer for a specific period of time. The charterer has more control and bears the expenses related to the operation, including fuel, port charges, crew wages, etc.

Now, let's talk about the Oil Pollution Act of 1990 (OPA-90). This legislation was enacted in response to major oil spills like the Exxon Valdez incident. OPA-90 imposes liability on vessel owners and operators for the costs associated with oil spills and provides measures to prevent and respond to such incidents.

However, voyages and time charters are exempt from the application of liabilities under OPA-90 due to the following reasons:

1. Lack of operational control: In voyage charters, the shipowner has little to no control over the vessel's operations once it is under the control of the charterer. The charterer assumes operational control, including navigation, handling of cargo, and compliance with regulations. Therefore, it is considered fair to exempt the shipowner from liabilities associated with operational decisions made by the charterer.

2. Allocation of responsibilities: Time charters transfer most operational and legal responsibilities to the charterer during the charter period. As a result, the charterer assumes the obligations related to oil pollution prevention, response, and potential liabilities under other relevant regulations. This division of responsibilities intends to facilitate clearer accountability and prevent disputes between the vessel owner and the charterer.

It is important to note that while voyage and time charters are exempted from the direct application of liabilities under OPA-90, they may still have other legal obligations and responsibilities concerning oil pollution prevention and response, as well as compliance with other applicable regulations related to environmental protection.