Merchant Shipping Code of Ukraine (Edition of July 04, 2013)

SECTION X. Limitation of Shipowners' Liability.

Chapter 2. Preferential Claims.

Clause 358. Priority of Claims.

The following claims shall have a priority over the other claims including those that are provided with a security:

  1. in the first place - the claims arising out of labour relationships, claims for reimbursing damage inflicted by injury, other impairment of health or death and, after said claims are paid out in full - the claims relative to social insurance as far as all said claims refer to a given vessel;
  2. in the second place - claims arising out of nuclear damage and marine environment pollution as well as elimination of said pollution consequences;
  3. in the third place - the claims regarding port and channel dues;
  4. in the fourth place - the claims regarding salvage remuneration and payment of general average installments;
  5. in the fifth place - the claims for reimbursement of losses resulting from collision of vessels or from other sea casualty, or from damage to port facilities and other property located in the port as well as to navigational aids;
  6. in the sixth place - the claims arising out of the actions taken by the Master by virtue of his lawful rights in order to preserve the vessel or continue the voyage;
  7. in the seventh place - the claims for reimbursement of losses relating to cargo or baggage;
  8. in the eighth place - the claims for payment of freight, and other payments due in connection with the carriage of a given cargo.

The claims regarding the payment for the services rendered in the port shall have to be equaled to the rules of item 7 or 8, depending on the property they are satisfied from.

Clause 359. Claims to Be Satisfied at Vessel's Expense.

The claims listed in items 1-7 of Clause 358 of this Code shall have to be preferentially satisfied out of:

  1. value of the vessel;
  2. freight and fare for carrying passengers and their baggage due for the voyage wherein said claim originated;
  3. general average installments due to the Shipowner relative to a given vessel;
  4. reimbursement due to the Shipowner for the loss of freight as well as for the damage inflicted to the vessel and not yet repaired;
  5. remuneration due to the Shipowner for salvage that took place before the end of the voyage less the sums that are to be paid by the Shipowner in accordance with Clause 336 of this Code.

Clause 360. Claims to Be Satisfied at Cargo's Expense.

The claims listed in items 3, 4, 6 and of Clause 358 of this Code shall have to be preferentially satisfied out of:

  1. value of cargo that has not been delivered to the Consignee;
  2. reimbursement due for damaged cargo;
  3. general average installments due to the Shipowner.

Clause 361. Proportional Satisfaction of Claims in One Queue.

The claims listed in Clause 358 of this Code, shall have to be satisfied in a queue order in proportion to the amount of claims.

However, the claims listed in items 4 and 6 of Clause 358 of this Code shall have to be satisfied within the limits of said queues in the order that is reverse to the time of their origination. The claims that have arisen in connection with the same incident shall be considered as those that occurred simultaneously.

Clause 362. Satisfaction as per Last Voyage.

The claims referring to the last voyage shall be satisfied preferentially relative to similar claims referring to preceding voyages.

However, the claims indicated in item 1 of Clause 358 of this Code and referring to several voyages shall be equated with similar claims referring to the last voyage.

Clause 363. Term of Preferences' Validity.

A right for preferential satisfaction shall expire in one year from the day of claim origination excluding the claims indicated in item 6 of Clause 358 of this Code, the right of their preferential satisfaction expiring in six months from the day of their origination.