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On June 20, 2025, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued Venezuela General License 5S, authorizing certain transactions related to the Petróleos de Venezuela, S.A. 2020 8.5 Percent Bond.  Under this general license, transactions related to the Petróleos Bond that were generally prohibited by Executive Order 13835 in May 2018 by will be allowed. The May 2018 Executive order addresses transactions involving entities in which the Government of Venezuela has a 50% or greater ownership interest.  The first Trump administration specifically named Petróleos as agency or instrumentality of the Venezuelan Government for sanctions purposes in Executive Order 13857 of January 25, 2019.  General License 5S replaces General License 5R and will extend the timeframe for transactions related to the Bond from July 3, 2025 to December 20, 2025.

The license is available on OFAC’s website and can be found here: General License 5S

To learn more about US Sanctions and/or the US Treasurys Office of Foreign Asset Control, please contact us at: info@chaloslaw.com

 

We share the following significant outcomes for vessel owners and operators from this Spring’s International Maritime Organization’s (IMO’s) Committee Meetings:

LEG 112: The 112th session of IMO’s Legal Committee (LEG 112) took place from March 24 to 28, 2025 and focused on seafarer abandonment, fraudulent ship registrations, liability regimes for alternative fuels, and lost container reporting requirements. One of the most significant outcomes of LEG 112 was the adoption of the Guidelines on Fair Treatment of Seafarers Detained in Connection with Alleged Crimes, developed by the IMO-International Labour Organization (ILO) Joint Tripartite Working Group, which seek to address fair treatment of seafarers, including legal representation, due process rights, and protection from arbitrary detention.

The guidelines further clarify responsibilities for other interested industry stakeholders:  Flag States must provide consular assistance, legal support, and ensure detained seafarers receive fair treatment. In addition, Flag states should intervene if their nationals face unjust detention.  Port and Coastal States must conduct investigations promptly, avoid unnecessary vessel delay and seafarer detention, and ensure seafarers have access to legal representation. They must also communicate with flag States and shipowners to facilitate fair treatment.  Shipowners are required to pay wages, provide medical care, arrange repatriation if necessary, and otherwise ensure their crew is not abandoned during legal proceedings.  Seafarers are encouraged to understand their rights, seek legal assistance when/if detained, and are encouraged to cooperate with investigations.  The guidelines further promote collaboration between IMO, ILO, and member states to prevent prolonged detentions and ensure seafarers do not face coercion or intimidation.

There are two (2) significant agenda items for the next meeting of the Legal Committee (LEG 113, Spring 2026): Developing Guidelines or Best Practices for Ship Registration (these guidelines will be aimed at preventing fraudulent registrations via clear procedures to verify ship ownership and Flag State authorization; improving ship registration alignment with IMO conventions to prevent substandard vessel operations through fraudulent registries; strengthening verification mechanisms for ship registries, ensuring accurate records in databases like the Global Integrated Shipping Information System (GISIS); and increasing accountability for flag States, shipowners, and registries to prevent misuse of registration systems) – AND – Regulatory Scoping Exercise on Unlawful Ship Operations: (correspondence Group (CG) was established to begin evaluating possible new regulatory work).

MEPC 83:  IMO’s Marine Environment Protection Committee (MEPC 83) met April 7–11, 2025 and approved mid-term greenhouse gas (GHG) reduction measures, finalized Phase 1 of short-term GHG reduction strategies, and adopted new regulations on fuel oil reporting transparency.  The fuel oil reporting transparency regulations will have several direct impacts on shipowners, particularly in terms of compliance, operational adjustments, and financial considerations. These new requirements will formally take effect on March 1, 2027, following expected adoption in October 2025 and are expected to include stricter reporting obligations (shipowners must ensure that their vessels submit detailed fuel oil consumption reports in a standardized format. This means developing accurate data collection systems and training crew to comply with the new reporting requirements); verification & compliance costs (the amendments introduce stricter verification procedures to prevent data manipulation. Shipowners may need to implement third-party audits or digital monitoring tools to ensure compliance, potentially increasing operational costs); digital reporting systems (shipowners are encouraged to adopt automated data collection tools to streamline compliance. This may require upgrading onboard systems or integrating new software solutions to meet IMO transparency standards); public data accessibility (fuel oil consumption data will be publicly accessible, meaning shipowners may face increased scrutiny from regulators, environmental groups, and industry stakeholders); and potential fines and/or penalties for non-compliance.

For more information on the IMO’s spring committee meetings and/or how anticipated changes may affect your business, please contact: info@chaloslaw.com.

 

 

 

 

George M. Chalos of Chalos & Co, P.C. was a speaker at the 2024 Malta Maritime Summit in Valetta, Malta wherein he delivered a riveting presentation to a packed house of delegates on the rise to prominence of the United States in the maritime industry despite a seemingly invisible presence on the ocean and its robust port state law enforcement practices, including the fair treatment of seafarers and prosecutions of suspected Marpol and sanctions violations. The message was clear that education, training, and compliance practices in the ever-changing landscape of complex regulations have become necessary for even small businesses in the industry.

During the event, Mr. Chalos had the privilege of meeting with the Malta Minister of Transport, Infrastructure and Public Works, Chris Bonnet. Minister Bonnet was elected to Parliament in March 2022 and serves as Parliamentary Secretary for European Funds.

The Malta Maritime Summit is a biennial event hosted in Valletta, Malta in which prominent and influential maritime stakeholders gather to discuss and debate the advancements, concerns, and challenges facing the various sectors in the maritime and transportation industry, including technology, regulations & compliance, the environment, and finance.

To read more about the presentation by Mr. Chalos, please click here

For more information about the Malta Maritime Summit, please click here.

For more information about George M. Chalos and Chalos & Co, P.C., please contact us at info@chaloslaw.com.

Chalos & Co is pleased to share that its principal and founder, George M. Chalos, Esq. will be speaking at the Marine Claims International Conference in Dublin, Ireland on September 26th, 2024. This annual conference “brings together the key players in the global marine insurance claims sector to discuss the market landscape and take an in-depth look at the challenges and opportunities that lie ahead for 2024 and beyond.”  George will discuss the power of the ex parte remedy to arrest and/or attach vessels and property in the United States as a means to obtain jurisdiction and/or to enforce foreign arbitral awards and judgements.

If you wish to learn more about the presentation and the Marine International Conference, please click here.

Chalos & Co is pleased to share that George M. Chalos, Esq. and Briton P. Sparkman were selected to author the “Shipping Laws and Regulations – USA Chapter” of the Global Legal Group’s publication: “The International Comparative Legal Guide – Shipping Law 2024.”  Established in 2002, Global Legal Group (GLG) is an independent London-based legal media company which provides primary legal, regulatory and policy information and reporting to businesses worldwide.  The Group is passionate about highly relevant, real-time information that empowers learning and advice as it’s shared among its global community, which is made up of private practice lawyers, in-house counsel, compliance officers and businesspeople.

If you wish to read the chapter authored by Chalos & Co, please click here

Chalos & Co was recently published in the February 2024 Issue of The Arbitrator, for its article “Sire, Hire, Price Majeure and a Global Pandemic: Are Vetting Clauses a Warranty or a Due Diligence Obligation?”  The article was part of a presentation made by George M. Chalos, Esq. at the November 2023 meetings of the International Congress of Maritime Arbitrators  (ICMA XXII) in Dubai.

The Arbitrator is published quarterly by the Society of Maritime Arbitrators.  To read the article in full, please click here.

We are thrilled to share a recent triumph at Chalos & Co that reinforces our commitment to justice and litigation expertise.  Last week, George M. Chalos secured a resounding defense verdict in a difficult premises liability trial presided over by NY State Supreme Court Justice, Dawn Jiminez.   At trial, the plaintiff alleged that an unreasonably dangerous condition caused an unfortunate series of events which lead to serious personal injuries and permanent partial disabilities.  With the assistance of our clients, our team meticulously presented evidence from various fact and expert witnesses to counter the plaintiff’s claims and to demonstrate the lack of liability on the defendants’ behalf.  After thorough examination of the evidence, the jury, comprised of six (6) thoughtful individuals, engaged in careful deliberation.  The persuasive arguments presented in a compelling summation and closing were well received by the jury which swiftly returned a complete defense verdict.  This victory underscores the depth of our firm’s litigators in navigating complex legal terrain and representing our clients in diverse challenging matters.

For more information on the Chalos & Co litigation team, contact us at: info@chaloslaw.com.

George M. Chalos of Chalos & Co, P.C. presented at the Marine Claims International 2023 conference in Dublin, Ireland during September 27-29, 2023. Mr. Chalos’ lively presentation posed the following question, “The United States and Maritime Claims: Have the Colonials become the Judge, Jury, and Executioner.” The presentation explored the United States’ commercial prominence in the shipping industry, and how U.S. authorities have exploited that position to enforce MARPOL and sanctions beyond the traditional limits of U.S. jurisdiction.

Chalos & Co, P.C. was also a proud sponsor of the event.  To learn more about the annual conference, please visit the website here.

For more information, please do not hesitate to contact us at info@chaloslaw.com.

The US National Transportation Safety Board (NTSB), reports that at least 38 people have died in Duck Boat casualties in the last 24 years. In 1999, the MISS MAJESTIC was carrying passengers on Lake Hamilton near Hot Springs, Arkansas. Due to what would later be determined by an NTSB investigation to be the tour company’s failure to properly repair and maintain the vessel, the Duck Boat began listing hard to port and sank, taking the lives of 21 people on board. In addition, the NTSB uncovered several other safety issues, including a need for improved oversight by the USCG.

Despite the concerns, additional action was not taken by the USCG. Nearly 20 years later, another fatal sinking occurred on Table Rock Lake near Branson, Missouri in 2019, which claimed the lives of 17 people when the STRETCH DUCK 7 took on excessive water during a severe weather event. That NTSB investigation found some of the same maintenance and safety related concerns previously outlined following the MISS MAJESTIC accident were contributing factors to the tragedy. We previously wrote about the criminal case against the former Master and Managers of the STRETCH DUCK 7, which was dismissed for lack of admiralty jurisdiction, and can be accessed here.  That decision dismissing the government’s criminal charges under the seaman’s manslaughter act was affirmed by the Eighth Circuit Court of Appeals. United States v. McKee, 68 F.4th 1100 (8th Cir. May 30, 2023).

The USCG has now sought to enact regulations which would subject Duck Boat vessels, their owners and operators to certain uniform and regulatory mandated safety requirements. The 9 requirements of the Interim Rule, which took effect September 11, 2023 are:

(1) Remove the canopies and any window coverings of such vessels for waterborne operations, or install a canopy that does not restrict horizontal or vertical escape by passengers in the event of flooding or sinking;
(2) If a canopy and window coverings are removed from any such vessel pursuant to paragraph (1), require that all passengers wear a personal flotation device approved by the Coast Guard before the onset of waterborne operations of such vessel;
(3) Re-engineer such vessels to permanently close all unnecessary access plugs and reduce all through-hull penetrations to the minimum number and size necessary for operation;
(4) Install independently powered electric bilge pumps that can dewater such vessels at the volume of the largest remaining penetration in order to supplement an operable Higgins pump or a dewatering pump of equivalent or greater capacity;
(5) Install in such vessels not fewer than four independently powered bilge alarms;
(6) Conduct an in-water inspection of any such vessel after each time a through-hull penetration has been removed or uncovered;
(7) Verify the watertight integrity of any such vessel through an in-water inspection at the outset of each waterborne departure;
(8) Install underwater light emitting diode (LED) lights that activate automatically in an emergency; and
(9) Otherwise comply with any other provisions of relevant Coast Guard guidance or instructions in the inspection, configuration, and operation of such vessels.

Vessel operators have 180 days from the date of this rule’s issuance to comply. See 88 FR 62295.

To read the interim rule click here.

For more information, please visit our website at chaloslaw.com, or contact us at info@chaloslaw.com.