Joseph Christian G. del Rosario
Managing Partner

Mr. Del Rosario has been in Philippine legal practice for more than fifteen (15) years. Before striking out on his own and putting up CDRP Law, he started at the Philippines’ top maritime law office founded by his grandfather. He has acted as counsel to P&I Clubs, ship owners, charterers, insurers, re-insurers, shipping lines, manning agencies and their principals, terminal operators, freight forwarders, and various other maritime industry stakeholders. His maritime practice includes both wet and dry work.

Aside from his core maritime practice, Mr. del Rosario has modestly expanded his roster of clients whose interests include business process outsourcing, real estate development, construction, hospitality, securities, telecommunications, retail trade, manufacturing, private equity/investments, information technology and fintech, gaming, health/wellness, and energy. He has assisted them in company formation, procurement of secondary licenses/ accreditations, labor law concerns, general business advice, contract preparation/review, and other corporate planning activities.

Overview of Recent Developments in Maritime Law in the Philippines

The Magna Carta for Seafarers

The Philippines is an archipelago consisting of more than 7,000 islands. It is mostly known as a sea-faring country. Various sources state that the country supplies anywhere from 20% to 30% of the world’s seafarers. In 2024, a total of 504,057 seafarers were deployed. Of which there were 108,016 officers, 178,480 ratings, and another 215,561 in related work not necessarily in vessel operations. The top five (5) flags of registry that employed Filipino seafarers are the Bahamas, Panama, Liberia, Marshall Islands, and Malta¹Statistics were provided by the Department of Migrant Workers.

This leads to a vibrant ship manning industry under the supervision of the Department of Migrant Workers (“DMW”). This is reflected in numerous policies supporting the ship manning industry and the creation of organizations within the ship manning industry with the common goal of protecting the Filipino seafarer and ensuring industry growth. This has culminated in the creation of the Magna Carta for Seafarers via Republic Act 12021.

With the Magna Carta for Seafarers in place, the Philippines has taken great strides in improving the industry. Some notable features of the Magna Carta include:

• Fair terms and conditions of employment including access to immediate and adequate medical services.
• Right to free legal representation at the expense of the government in case the seafarer is unable to afford counsel.
• Institution of the pre-employment medical examination in Department of Health accredited institutions.

more interesting provision in the Magna Carta is the immediately executory nature of the award of wages, monetary and welfare benefits, and any undisputed amount. This means that even if the decision of the National Labor Relations Commission or Arbitrator is appealed, payment thereof is still made.

Prior to the enactment of the Magna Carta, this was a contentious area as payments made by ship owners based on awards that were eventually reversed by the Court of Appeals or the Supreme Court could not be recovered. With the codification of what portions of the award are immediately executory, there may be clearer perspectives on how to move this forward for the benefit of both the seafarer and the shipowners. We also point out that ship insurers are interested in the play out of this provision as an increase in claim amounts unrecovered/unreturned may result in higher risks and higher premiums.

Recent Jurisprudence related to seafarers – April 07, 2025²Hisanza vs. Bright Maritime Corporation et. al. G.R. No. 265454, April 07, 2025

With a vibrant ship manning industry, there have been numerous cases wherein the Philippine Supreme Court has had the opportunity to clarify certain issues. In disability claims of seafarers, the company designated physicians play a key role. They are doctors who are familiar with the work performed by seafarers and their conditions at sea. As such, they are charged with making disability assessments of seafarers which determine the amount of their compensation.

In a recent case, a seafarer was repatriated for severe back pain. On examination by the company designated physician, he was given a “final” medical assessment with a disability grade of 11. He disputed the same. On review by the Supreme Court, the medical assessment ruled that the same was not final. An examination of the medical assessment showed that the seafarer was not discharged from his physical therapy regimen with the company designated physician recommending continued therapy and medication. It was also described as “interim”.

Thus, the Supreme Court ruled that the assessment is neither final nor definitive. Since the assessment was not final, the 240 extended treatment period lapsed without a final and definitive assessment. This resulted in the seafarer being deemed totally and permanently disabled resulting in the payment of higher benefits.

With this and other previous rulings, care must be given in the examination of assessments given by the company designated physician. It is not enough to be mindful of the 120-days and 240-days period within which to give the final assessment. The assessment must clearly be characterized as final and definitive.

Shipping enterprises open to full foreign ownership

The Philippines has long maintained ownership of domestic shipping enterprises with Filipinos. With the enactment of the amended Public Service Act, limitations on the foreign ownership of shipping enterprises has been lifted. Foreign shipping lines may now engage in inter-island transport. This development seems to have encouraged foreign investments in direct shipping and in related activities. These include:

• CMA CGM engages in domestic shipping³https://tribune.net.ph/2024/09/25/french-shipping-firm-to-ply-domestic-trade
• Maersk opens a large distribution center to serve as its transport hub in the island of Luzon⁴https://www.maersk.com/news/articles/2024/11/04/largest-distribution-centre-in-the-philippines#:~:text=Optimus%20is%20the%20largest%20Maersk%20distribution%20centre%20in,- serve%20as%20the%20transport%20hub%20for%20southern%20Luzon.
• Norwegian Cruise Lines opens medical clinic for seafarers⁵https://www.gmanetwork.com/news/money/companies/943978/norwegian-cruise-line-opens-first-ph-medical-clinic/story/

Some other investments were made below the radar but are nonetheless significant. More investments have been made in ship management, sea-farer training, and others. Significantly, the Philippine government has made a strong push towards renewable energy⁶PH push for renewable energy yields record-breaking installations | Department of Energy Philippines which has spurred the carriage and transport of machines and related parts into the country.

Reports from the Philippine Ports Authority indicates encouraging activities in the maritime industry. Post COVID 19 statistics show that shipcalls in the Philippines has slowly but steadily increased. In 2022, shipcalls amounted to 476,000. For 2023, they amounted to 562,000. In 2024, they were 612,000⁷Statistics were provided by the Philippine Ports Authority.

Rules of Procedure for Admiralty Cases

There are Special Rules of Procedure for Admiralty Cases which were promulgated last September of 2019.

With almost six (6) years in implementation, the Philippine Supreme Court continues to enhance the capability of the admiralty courts by having judges sent to different countries for continuous training and exposure to the maritime industry.

The procedure and requirements for the arrest of a vessel has been streamlined by the rules. The arrest of a vessel or cargo has been a go to remedy for maritime cases. With the Philippine Supreme Court proactively putting special rules of procedure in place, rights of stakeholders both foreign and local will be protected and resolution of issues will be swift.

Detention and Demurrage Claims

Fairly recently, our Firm has had the opportunity to advice on Detention and Demurrage claims. A senior manager from an international shipping line pointed out that it seems that in the Philippines it was very difficult to recover detention and demurrage as compared to other countries.

In line with this, we suggested that they do a few preparatory acts before pursuing a detention or demurrage case. First, the target company should be subject to an asset to check to determine whether it can eventually satisfy the judgment award, if ever. Second, the basis for the detention and demurrage should be clearly documented. Resorting to commercial and industry practice may affect the merit of your claim. Third, you have to ensure that demand is made to the proper entity.

Once these preparations have been made, a case can be filed in Court. The Court with jurisdiction over the case will depend on the amount of the claim.

Other Developments in the Maritime Industry

The business process outsourcing (BPO) industry has remained strong in the Philippines. It has expanded into the maritime industry. Recent business activities indicate that companies in the shipping and related industries have been increasing outsourced activities to Philippine BPO. This includes back-office operations, administrative work, claims handling, processing, and information technology support. Outsourced activities may yield savings for shipping companies as special incentives are available for the conduct of these in the Philippines. Aside from lower costs in general, a tax holiday can be availed of.

The developments place the maritime industry at a crucial point in the continued development of the Philippines. While there have been challenges, the future continues to look promising.

Note: The views expressed in this article are for general information purposes only and not intended to be legal advice. Any legal matter has facts and circumstances specific to it and as such can affect the application of information from the article. No attorney -client privilege is created due to this article. If you need legal or expert advice, please ask a duly licensed professional.