20.04.2020

COVID-19: Yachting update

The Covid-19 pandemic has already had a significant impact on the marine industry.  In this briefing, we summarise the current situation for the yachting sector in New Zealand and the Pacific.

New Zealand 

Following the implementation of Level 4 restrictions, we are aware of businesses facing issues with cancellation of charters, repatriation of crew, cancellation or suspension of sale and purchase agreements, and delays in completing build, refit, repair or maintenance projects.  Businesses have also been re-assessing their business development and sponsorship commitments for future events. 

In each case, contract terms will need to be carefully reviewed.  Contracts may include terms allowing suspension of performance or even termination of contracts. 

Businesses with business interruption insurance policies should check with their brokers whether these might respond in the present circumstances.

We have prepared a number of updates and briefings to help companies navigate these and other issues (including employment, solvency and property), as well as specific advice for yacht owners

Our team is able to assist and to provide relevant guidance, whether you need advice or are facing a dispute with your contractor, supplier, customer or employees.

Navigation in New Zealand and the Pacific

At the time that travel restrictions began to be implemented in New Zealand and across the Pacific, a number of yachts were already visiting or were on their way to or from the region.  

The immigration and quarantine position in each country is different and is changing on a regular basis.  Our friends at the New Zealand Marine Industry Association and Albatross PR are providing excellent updates on the status across the region at:

https://www.albatrosspr.com/ 

http://nzmarine.nzmarine.nz/wp-content/uploads/sites/10/2020/03/COVID-19-Information-relating-to-the-visitation-of-small-craft-and-superyachts.pdf

More information on the position in New Zealand can also be found on Immigration New Zealand’s website:

www.immigration.govt.nz/about-us/covid-19/border-closures-and-exceptions

Level 3 and beyond?

Today the government will clarify when Level 4 restrictions will lift and what restrictions will be in place for Level 3 and beyond.  This situation will have further consequences for visiting pleasure craft, superyachts and their crew.  We will provide an update when that clarification is issued. 

Yachting New Zealand also provides ongoing guidance at:

https://www.yachtingnz.org.nz/clubs/covid-19-information

Realistically there are unlikely to be significant changes in the short term.  The expectation is that border restrictions are likely to remain in place for some time.

At this stage, there has been no announcement regarding the America’s Cup to be held in Auckland next year.  The Prada Cup (Challenger series) is due to start in January 2021 and the 36th America’s Cup Match in March 2021.   The programme for this event has already been affected:

  • Already two of the three AC75 preliminary races (the America’s Cup world series) have been cancelled due to COVID-19: Sardegna (23-26 April 2020) and Portsmouth (4-7 June 2020).  The third event is scheduled to be in Auckland at the end of December 2020.
  • The construction of the boats that will be competing in Auckland could be delayed;
  • The construction of infrastructures for the event is likely to be delayed; and
  • It is unsure when the challengers’ teams will be allowed to enter NZ.

For more information in this respect, refer to the following webpages:

https://www.nzmarine.com/events/

https://emirates-team-new-zealand.americascup.com/

If you have any questions about COVID-19 and the issues facing the yachting sector , please get in touch with our marine team or your usual contact at Hesketh Henry.

Disclaimer:  The information contained in this article is current at the date of publishing and is of a general nature.  It should be used as a guide only and not as a substitute for obtaining legal advice.  Specific legal advice should be sought where required.

 

 

Do you need expert legal advice?
Contact the expert team at Hesketh Henry.
Kerry_100x100 1
Media contact - Kerry Browne
Please contact Kerry with any media enquiries and with any questions related to marketing or sponsorships on +64 9 375 8747 or via email.

Related Articles / Insights & Opinion

Bereavement Leave Confirmed for Miscarriages and Stillbirths 
New Zealand has become the second country in the world to pass legislation that provides bereavement leave for mothers and their partners after a miscarriage or stillbirth.
26.03.2021 Posted in Business Advice & Employment Law
Court of Appeal Overturns Employment Court’s Decision in Tourism Holdings
Tourism Holdings Limited v A Labour Inspector of the Ministry of Business, Innovation and Employment (Tourism Holdings) is the first decision in which the Employment Court considered section 8(2) of the Holidays Act 2003 (Act). The Court of Appeal has recently overturned this decision.
26.03.2021 Posted in Business Advice & Employment Law
Guarantees must be in writing and signed to be enforceable
For a guarantee to be enforceable, the requirements set out in section 27 of the Property Law Act 2007 (Act) must be strictly complied with.  This is what the NZSC held in Brougham v Regan. The key i...
19.03.2021 Posted in Business Advice
UK Supreme Court Delivers Decision on Uber Driver Employment Status
The distinction between employee and independent contractor can be complex, particularly where the nature of the business model blurs the lines of standard employment practices.
16.03.2021 Posted in Business Advice & Employment Law
Holidays Act Overhaul – Taskforce Recommendations
There have been calls for an amendment of the Holidays Act 2003 (Act) for some time.
16.03.2021 Posted in Business Advice & Employment Law
Unwanted Land Covenants and Easements: Seeking a Court Order
The Supreme Court recently considered an application by Synlait Milk to modify a land covenant restricting the burdened land use to farming, grazing and forestry operation to protect the ability of the benefited land owner to develop a quarry.  This article looks at the circumstances in which the courts might give relief to parties in an application to extinguish or modify a covenant or easement.
15.03.2021 Posted in Property Law
New ICC Arbitration Rules 2021 come into force
The revised International Chamber of Commerce (ICC) Arbitration Rules for 2021 (2021 Rules) have now come into force and apply to all ICC arbitrations begun after 1 January 2021.  While the new Rules...
10.03.2021 Posted in Litigation & Dispute Resolution
Send us an enquiry
For expert legal advice, please complete the form below or call us on (09) 375 8700.
  • This field is for validation purposes and should be left unchanged.
-->