What is maritime law in Canada?

Published by:
Nontle Nagasawa

Reviewed by:
Alistair Vigier
Last Modified: 2024-06-01
To ask, “What is maritime law in Canada?” is to delve into hundreds of years of history spanning the globe. It deals with everything from piracy laws to the laws of international shipping, fishing, and oil and gas pollution, among a host of other issues and controversies that happen on the high seas.
It harkens back to a time that is difficult to imagine: before computers, air travel, phones, and all other technologies that have come together to truly globalize the world’s economy.
Before digital technologies tethered nations together electronically before air travel ushered in the modern era of the global village in which we now live, international shipping and the world’s oceans dominated the world of commerce and trade.
Maritime law and admiralty law are closely related private and public bodies of law that govern the world’s seas, oceans, lakes, and rivers.
They have evolved over the centuries and been shaped by many forces: war, colonialism, imperialism, revolution, marine disasters such as the sinking of the Titanic, modern technological advancements, and the signing of international treaties among hundreds of nations.

The United Nations and the International Maritime Organization
With the establishment of the United Nations after the Second World War, international maritime regulations soon after fell under the guise of the International Maritime Organization.
Established in 1948, the IMO is a “specialized agency” under the United Nations that seeks to ensure that international shipping routes are safe and secure while also seeking to prevent ocean pollution due to global shipping activity.
According to its website, the IMO has 175 members and holds an assembly meeting between those member states every two years.
When it was first established, the IMO set out to make international treaties and uniform legislation among its members related to marine safety and the prevention of ocean pollution.
It took until the late 1970s for widespread adoption of IMO-led regulations, which the agency now seeks to modernize while trying to get as many nations as possible on board to adopt and uphold its mission. The agency boasts that many of its “conventions” now cover nearly all of the world’s shipping activities.
Ship-based oil pollution
It was back in 1954 when the world saw a treaty among member states seeking to deal with the issue of ship-based oil pollution. Five years after the treaty’s adoption, it fell under the responsibility of the IMO. According to the agency, the shipping world was rocked by a disaster in 1967 involving an oil tanker called the Torrey Canyon.
The tanker ran aground in the coastal waters of the United Kingdom, spilling more than 100,000 tons of oil, a catastrophic event that’s said to have awoken world governments to the growing threat of ocean-based pollution caused by international shipping activity.
After the Torey Canyon disaster, the IMO adopted a host of conventions to prevent marine pollution and better respond to shipping disasters involving oil and other harmful substances that poison the aquatic environment and its delicate ecosystems.
Other maritime regulations under the IMO include rules preventing shipping companies and ocean-goers from using “harmful anti-fouling systems” and regulations related to managing potentially harmful substances and invasive species in ocean vessels’ ballast systems.
Uniform maritime regulations
The agency’s international scope is incredibly important for uniform maritime regulations rather than a nation-by-nation patchwork of laws that the IMO claims would resemble “a maze of differing, often conflicting international laws.”
The International Maritime Organization points out that, as a hypothetical example, one country could require that lifeboats be made of steel while others may require a different material, such as glass-reinforced plastic.
Without an international body to streamline and enforce maritime legislation and regulations, the IMO claims there would be a danger of some countries having much higher standards than others, potentially leading to some countries becoming “havens for sub-standard shipping.”
However, the UN agency merely adopts specific legislation surrounding maritime rules and regulations, while its member state governments are responsible for implementing the IMO’s rules.
The International Maritime Organization, though, seeks to aid countries with developing economies in maritime regulations through what it calls an “extensive technical co-operation program.
Preventing ocean pollution from oil or garbage
The agency claims that preventing ocean pollution from oil garbage or sewage is only one piece of a giant puzzle. It also seeks to ensure the safety of international shipping routes and maintain healthy aquatic ecosystems by establishing protected marine areas home to hundreds of thousands of fish species and other organisms.
According to the IMO, though, marine shipping remains an environmentally friendly method of transporting goods around the globe when the ratio of energy to cargo shipped is considered.
That being said, the IMO is now also “energetically pursuing” legislation limiting and reducing the international shipping industry’s greenhouse gas emissions. These efforts include new energy efficiency standards for newly built vessels and other measures mandating specific energy efficiency standards “for all ships.”
International Maritime Organization and Admiralty Jurisdiction
However, the International Maritime Organization is not without its critics or controversies. On the “frequently asked questions” section of the agency’s website, for example, one question concerns how the IMO adopts and aims for the “lowest common denominator” when it comes to marine safety regulations.
In its defence, the IMO points out that it tries to reach a consensus among member states when adopting new treaties and marine safety and pollution regulations.
According to the IMO, the thinking behind this consensus-based approach is recognizing a potential dilemma in dividing its member states about specific regulations. The agency says that a measure that gets 51 percent of support would still have opposition from nearly half its membership while having “a major impact on” the global shipping industry.
The agency claims that the danger of a majority rule rather than seeking broad and widespread support among the shipping world would be the resulting division among the “maritime community.”
One of the most widely adopted and important treaties, which went through several iterations over the first half of the 20th century, is the Convention for the Safety of Life at Sea, also called SOLAS for short.
First signed in 1914 after the sinking of the Titanic, SOLAS now has more than 160 members and covers most of the world’s merchant vessels. It remains one of the most crucial international treaties ever adopted regarding the safety of marine merchant shipping vessels.
The Sinking of the Titanic and its Effect on Maritime Law
The Titanic disaster of 1912 highlighted how merchant shipping laws had not kept pace with modern technological developments in ship design.
Though it was famously touted as being unsinkable, the Titanic’s now infamous run-in with an iceberg in the North Atlantic saw the ship in less than three hours, killing more than 1,500 passengers and crew members. At the time, British merchant shipping laws didn’t require vessels to have enough lifeboats for every person on board.
By the time the Titanic set out for its ill-fated voyage, the country’s shipping regulations were outdated, only covering ships up to 10,000 tons.
The British Merchant Shipping Act dates back to 1894, and by the time the Titanic was built at more than 45,000 tons, ships were routinely being constructed with gross tonnages far exceeding the act’s scope.
The Titanic had marine insurance?
While the vessel only had enough lifeboats for about a third of its passengers and crew, they were unfortunately not designed for a mass-scale, ship-wide evacuation.
The lifeboat system on the Titanic did not contemplate its sinking and planned only for the ship’s lifeboats to ferry passengers and crew to awaiting rescue ships, which didn’t help in the hours after the collision in the frigid waters of the North Atlantic.
It was in 1914 when the SOLAS convention was adopted in response to the Titanic disaster and has been updated most recently in 1998, the main purpose of it being to give marine passengers and ships’ crew members a greater chance of surviving an ocean-based disaster, dealing with ship design, fire suppression systems, communications, as well as training standards for crew members.
Maritime Law and Admiralty Law in Canada
The Federal Court of Canada primarily deals with maritime and admiralty laws. However, private claims involving vessel repairs, collisions, liens, and other ship and marine vessel-based disputes can end up in provincial superior and supreme courts.
Lawsuits involving shipping and navigation in the Federal Court of Canada can involve matters that happen both in the country’s territorial waters and the high seas, and the laws under which vessels fall depend on the flags flown by ships.
The Federal Court’s jurisdiction over Canadian maritime law was clarified by the Supreme Court of Canada in Ordon v. Grail. This case dealt with appeals and cross-appeals involving a lake-based fatal boating accident in Ontario.
In that case, the court found that navigation and shipping issues in the country made a uniform maritime law regime across the country a “practical necessity.”

Development of maritime law in Canada
However, the court recognized that the development of maritime law in Canada was not “static or frozen.” Though federal legislation ruled the day for most naval law issues, provincial courts could still have jurisdiction over a maritime law issue if it met a four-part test.
The first part of that test, for example, involves determining whether the dispute involves navigation or shipping, which, under Canada’s Constitution, is the federal government’s exclusive domain.
The Federal Court deals with property and cargo damage claims, crashes, injuries and deaths at sea, and pollution issues affecting fisheries and Canadian marine environments.
Canadian maritime law also involves the rules around salvaging sunken ships and marine liability limitation, which is somewhat different from corporation law, which involves the limitation of legal liabilities.
Marine liability, for instance, can involve lawsuits against a ship’s owner or even individual crew members. It is heavily intertwined with the marine insurance industry, which has deep roots in Britain during its colonialist and imperialist eras, where it dominated international marine commerce.
Canadian maritime law and Confederation in 1867
Canadian maritime law has evolved decades since the confederation in 1867 and is said to be “uniform” across the country. Canada’s naval law regime was inherited from the body of admiralty law in England.
Canadian maritime law now comprises several pieces of legislation, including the Canada Marine Act, the Canadian Transportation Accident Investigation and Safety Board Act, the Canada Shipping Act, the Coasting Trade Act, and the Marine Liability Act.
Under the country’s maritime law regime, the Federal Court of Canada can enforce foreign-based judgements and arbitral awards while resolving disputes about unpaid crew wages, ship and marine vessel mortgages, seizures, warrants, and potential insolvency issues with bankrupt international shipping companies.
In 2016, for example, the bankruptcy of the international Hanjin Shipping Company saw ships under the company’s ownership refused permission to moor and unload at several international ports.
The company, based in South Korea, went bankrupt, leaving several of its vessels stranded and unable to offload cargo containers. This disruption of global supply chains threw a wrench into the gears of retailers and other import and export firms.
Flags of Convenience and tax havens
Other maritime law controversies in Canada include so-called “flags of convenience,” where a ship flies a country’s flag for tax purposes. During his tenure, former Prime Minister Paul Martin came under fire for his family’s company, Canada Steamship Lines, using flags of convenience on several of its ships, including Barbados, Bermuda, and Liberia.
Though he left the company to his sons when he was elected prime minister in 2003, Canada Steamship Lines had been using flags of convenience and tax havens in its operations for years, including the period in the 1990s when he was Canada’s finance minister.
But it was in 2017 that Martin’s former company was again in the news after the leak of confidential law firm records known as the Paradise Papers.
The leak showed Canada Steamship Lines had used offshore entities and flags of convenience on some of its vessels to enjoy low-tax and no-tax benefits of flying the flags of Barbados and Bermuda, despite the company being known as Canada Steamship Lines. Martin defended the practice, which remains widespread and problematic in the global shipping and marine industry.
Admiralty jurisdiction and the limitation of liability
Below are some challenges that can come up in the shipper industry.
Jurisdiction is always difficult. Did an incident happen in the Port of Vancouver or in international waters? What happens if something happens 12 miles away from the shore of Vancouver? Was it in Canada or not?
What happens if something happens in the Arctic? Does the Arctic belong to Canada and, therefore, is covered by the Canada Shipping Act?
Can ship owners sign a limitation of liability with others to return their liability for bad things they do?
As you can see, maritime matters are not simple.
Some other topics you might want to research include:
- The Federal Courts Act
- Contracts of carriage
- Canadian Maritime Law Association
- The body of law for shipbuilding
- What does pilotage or charter party mean?
- How about the carriage of goods or bills of lading?
- What are forwarders?
- What laws govern harbours?
- Undertakings in law, what does it mean?
It’s helpful to know all the maritime law terms. There are too many to cover in this article. After completing this article, you can do further research into these terms.
Maritime law conclusion
The establishment and evolution of maritime law around the globe continue to this day dating back to ancient Rome and ancient Egypt.
The threat of climate change and looming military conflicts among some of the world’s most powerful nations will undoubtedly shape the continual evolution of maritime and admiralty laws and regulations over the next century.
Globalization and the interconnectedness of national economies have seen the widespread adoption of uniform maritime regulations among UN member states under the International Maritime Organization.
However, as the world learned after the First World War, international cooperation can be undermined by rogue, ultra-nationalist states and other malevolent actors who seek to sink ships and dam the stream of global commerce.
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