New Mexican law of Navigation and Maritime Commerce

The last version of this legislation dated back to 1994. After two years discussion in the legislative chambers in June 2006 the new version was issued with effective entry into force as of the 1 July 2006. 

The law gives precedence to international treaties ratified by the country to allow uniformity on the type of regime applicable to specific instances such as the Hague Visby Rules, CLC/FUND Conventions, 1976 Limitation Convention, Salvage Convention, COLREGS, and MARPOL. 

Listed below are some of the salient points of the legislation: 

• The usual provisions enabling authorities to carry out inspections of vessel and investigation of incidents
• New regulations concerning registration of vessels and waivers to Mexican companies to operate foreign flag vessels in otherwise reserved domains
• Foreign vessels are obliged to designate a shipping agent in order to call at Mexican ports.
• Mexican flag vessels are required to operate with Mexican crews only and cabotage is in principle reserved to Mexican vessels.
• Where a foreign vessel is abandoned by the owners with their compliment on board, there are provisions to coordinate repatriation and temporary maintenance of the crew which the law deems ultimately to be the joint and several liability of the owner and agent
• The carriage of passengers, cargo and towage in port and pilotage are also regulated.
• Pilots are responsible for damage and loss caused to vessel or port installations due to negligence, lack of proper qualification, carelessness or bad faith, except for instances where damage was caused by act of god or force majeure. There is, however, no requirement for Pilots to have insurance cover.
• Companies providing towage services must have insurance arrangements to cover their liabilities to the satisfaction of the authorities.
• Pollution is regulated by international treaties, however this will only cover CLC-type liabilities. Pollution in respect of other substances is dealt with under local legislation which allows no limitation. This is irrespective of any criminal proceedings or sanctions against the party responsible for the incident.
• Maritime privileges are also considered within the law.

• The law contemplates 6 specific types of contract and establishes time limits for commencement of proceedings as follows:
•  Bareboat charter
• Time charter
• Voyage charter
• Carriage of Goods
• Passengers and
• Towage

There is a one year time limit for all actions under these contracts except for actions under a towage contract where the time limit is only six months.

• Provisions dealing with towage deem that both parties are, in principle, liable to third parties for any loss or damage caused. However, if the tow has no crew on board during the towage the tug is considered the only party responsible for any loss or damage caused to third parties. Any rights that the tug may have against the tow are as yet uncertain under the new law. Where this regime applies, Members are advised to consult the Club to ensure that the risks undertaken in this type of operation are duly covered.

In cases of collision involving a tug and tow with another vessel the convoy is considered as a unit if the tow controls the operation. Otherwise the liability is solely that of the tug. 

• All vessels navigating Mexican waters must have protection and indemnity insurance.

The new law also acknowledges the cover provided by the members of the International Group of P&I Clubs, and specifically states that when a vessel owner has to provide security a Letter of Undertaking from the owners P&I Club will be accepted provided it is issued by a Club that is a member of the International Group.  

• There is a detailed procedure on the arrest of vessels but it is not possible to arrest for the security purposes only as the local courts will seize jurisdiction on the principal cause. 
• There are also detailed procedures on the establishment of a limitation fund. 

 Further evaluation of the new legislation will follow once its application in practice becomes evident.