delete The Merchant Shipping (Liability of Shipowners and Others) (Rate of Interest) Order 1998
Sets statutory interest rates (12%, 6.75%, 8.5%) for maritime liability claims under the 1976 Convention on Limitation of Liability for Maritime Claims, replacing the 1994 Order with updated rates effective 31 August 1998.
This Order imposes government-determined interest rates on maritime liability claims, which are arbitrary price controls that distort the maritime insurance market. The specific percentages (12%, 6.75%, 8.5%) reflect political negotiation rather than market discovery. Such micro-management of legal monetary adjustments is precisely the kind of intervention that, as Friedman recognized, creates unintended distortions in capital allocation and insurance pricing. Market participants — not regulators — are better placed to determine appropriate risk-adjusted returns in maritime litigation. The 1976 Convention's limitation framework can function without rigid statutory interest rate fixation; courts could apply reasonable commercial rates or existing case law principles.