Section 347: Damage to vessel

(1)
Where a vessel is damaged but not in total loss as defined in this part of this Act, the claimant shall be entitled to recover as damages:
(a)
the cost of temporary repairs reasonably effected, and the reasonable cost of permanent repairs:
(i) the cost of those repairs shall include but not limited to the cost of any necessary dry-docking, gas-freeing or tank cleaning, port charges, supervision and classification surveys, together with dry-dock dues and or wharfage, for the time occupied in carrying out such repairs,
(ii) where the collision damage repairs are carried out in conjunction with owners' work which is essential to the seaworthiness of the vessel or with essential repair work arising out of another incident or are deferred to and carried out at a routine docking, the damages shall include, but not limited to, dry-dock dues, wharfage or other time-based charges but only to the extent that the period to which such charges relate hasbeen extended by reason of the collision damage repairs;
(b)
reimbursement of salvage, general average and other charges and expenses reasonably incurred as a result of the collision;
(c)
reimbursement of sums, for which the claimant has become legally liable and has paid to third parties in respect of such liability, arising out of the collision by reason of contractual, statutory or other legal obligations;
(d)
reimbursement for the net freight lost and the cost of replacing bunkers and vessel's gear lost as a result of the collision and not included in the cost of repairs under subsection 1 (a) of this section.
(2)
Without prejudice to the provisions or subsection (1) of this section, the damages recoverable shall include:
(a)
subject to reimbursement for any claim for loss of freight under subsection (1) (d) of this section, compensation for the net loss of earnings arising from the collision;
(b)
compensation assessed by establishing the gross earnings or the vessel lost during detention, calculated by reference to the vessel's earnings or by reference to the earnings of comparable vessels in the same trade and deducting from the gross earnings the operating costs which would normally have been incurred in order to achieve the gross earnings, such as hire payable, crew and bunkers costs, port disbursements and insurance; and
(c)
operating costs and expenses actually incurred during detention, other than those included under subsection (1) of this section.
(3)
In the application of subsection (2) of this section, the following particular provisions shall be relevant:
(a)
where detention occurs during the performance of a voyage charter party and such detention does not require the cancellation of the charter party, compensation shall be calculated by applying the average net earnings on the two voyages prior to and the two voyages subsequent to the detention;
(b)
where no reference to two prior and two subsequent voyages is possible, the net earnings on other relevant voyages or if there are no other relevant voyages on the voyage during which the collision took place shall form the basis of compensation;
(c)
if in consequence of such detention the charter party is cancelled, and freight remains unearned, compensation shall include the net freight lost;
(d)
when detention occurs while the vessel is being operated on a Iiner service, compensation for detention shall be assessed in the following circumstances:
(i) where detention occurs during the voyage which the vessel is performing at the time of the collision by applying to the detention the net daily earnings for that voyage, computed for the time the voyage would have taken had the collision not occurred,
(ii) where detention occurs other than during the voyage which the vessel is performing at the time of the collision, by applying to the detention the average net earnings on the two voyages prior to and the two voyages subsequent to the detention,
(iii) where reference to two prior and two subsequent voyages is not possible, the basis of the computation will be the net earnings on other relevant voyage and if there are no other relevant voyages, the compensation wiII be assessed by reference to the net earnings of a similar vessel operating in a similar trade.
(e)
where detention occurs while the vessel is performing under a time charter, compensation shall include the net loss of hire during the detention. If in consequence of such detention the charter party is cancelled, compensation shall include the net hire which would have been paid during the unperformed portion of the charter, allowance being made for any actual net earnings during that portion.
(4)
Where collision damage repairs are carried out in conjunction with the work of the owner which is essential to the seaworthiness of the vessel or with essential repair work arising out of another incident or are deferred to and carried out at a routine docking, damages shall include compensation for detention only to the extent that the period under repair is extended by reason of the collision damage repairs.