ABSTRACT
This chapter describes how the rule can still affect commercial law in the shipping and offshore context. It discusses the limits to the principle, and how far these can be used to advantage in the structuring of transactions. With ships constantly more costly and maritime business ever more capital-intensive, joint ventures involving the use of marine special purpose vehicles are growing fast. Operation by multiple-vessel corporations through wholly owned one-ship companies and other subsidiaries such as ship management companies is the norm these days. There are any number of good reasons for this, such as insulation from liability. On occasion, however, owners need to bear in mind that arrangements made through such companies could give rise to traps. With ships constantly more costly and maritime business ever more capital-intensive, joint ventures involving the use of marine special purpose vehicles are growing fast.
