Muhammad Hasnain Zulfiqar

Enrollment No. 01-278231-015

Admiralty and Jurisdiction (LL.M IML)
Assignment topic:
The law of ship arrest: Procedures and implications for
creditors and debtors
Abstract
Ship arrest is an attractive and exceptional tool available to creditors seeking to obtain satisfaction
for their claims. However, the very characteristics and features of ship arrest, which are conducive
to its attractive nature, are precisely what expose this institution to vulnerability in the face of
potential abuse by creditors. The law plays a crucial role in striking a balance between creditors’
entitlement to arrest their debtor’s vessel whilst simultaneously preventing illegitimate or careless
creditors from taking advantage of this right and pursuing wrongful arrests.1 Therefore, the
prevailing situation grants claimants the possibility of arresting a ship without ascertaining whether
the relevant legal requisites have been satisfied and moreover, without having to answer for the
consequences of their actions. Reform is essential in order to bring claimants and ship owners on
an equal footing at law and provide ship-owners with the protection they deserve. Thus, the
ultimate scope of this study is to provide recommendations as to how this issue surrounding
liability and damages for wrongful arrests may be remedied.
Key Words: Creditors, Debtors, Ship arrest, Ship owners, Wrongful arrest of ship,

Historical development of ship arrest

It is stated, according to opinion of some legal historians, the action in rem in the English admiralty
law was derived from a process of arrest of property to compel the appearance of the defendant, a
procedure developed in medieval Europe and firmly established in England by the fifteenth
century. This processus contra contumacemus was in use in the continent by the fourteenth century
and in England the procedure was well established in the Admiralty court by the sixteenth century.
The primary purpose of the process was to counteract the defendant’s contumacious refusal to
appear before the court and contest the suit brought against him2.

1
Oslo Conference 1933, CMI Bullettin n. 96, 1934, respectively at pages 86, 127, 21, 39, 29, 60, 94, 54, 202, 68 and
49. For a review of the debate on wrongful arrest, starting from the 1933 CMI Oslo Conference: F. Berlingieri, On
arrest of ships, VI ed., Vol. I, Informa Law from Routledge, 2017, p. 602
2
Marsden, Select Pleas in the Court Admiralty (Selden Society, 1892) pp. xxi-xxii, see Ryan, note 28 at 188
 In England, the person and/or the property of the defendant in the jurisdiction of the Admiral
could be arrested by the Admiral Marshal or other officer at the same time as the defendant (or
anyone else having an interest in the property) was cited to appear.
The law of ship arrest is a complex and fascinating area of maritime law with significant
implications for both creditors and debtors. Maritime business is widely impacted by the
phenomenon of ship arrest worldwide.
What is ship arrest?
Ship arrest is a legal procedure whereby a maritime creditor can detain a vessel within a
jurisdiction to secure payment of a debt or claim associated with its operation. This essentially acts
as a security measure, preventing the ship from leaving port until the debt is settled.
This action is typically taken to ensure that the ship's value can be used to satisfy a debt or other
financial obligation. Ship arrest allows a party with a legitimate maritime claim to obtain security
for their claim by preventing the ship from leaving port until the matter is resolved. 3
Here's a breakdown of key points related to ship arrest:
1. Maritime Claims: Ship arrest usually arises in the context of maritime claims, which can
include unpaid debts, damages arising from collisions, salvage claims, unpaid crew wages,
or other disputes related to maritime activities. 4
2. Legal Process: Ship arrest is a legal procedure initiated by filing a case in court. The party
seeking the arrest (the claimant) provides evidence to the court, demonstrating the validity
of their claim. If the court finds the claim to be legitimate, it may issue an arrest warrant
for the ship.
3. Port Authorities' Role: Once a ship is arrested, port authorities are typically involved in
enforcing the court order. They may physically prevent the ship from leaving port until the
legal dispute is resolved or security for the claim is provided.
4. Security for Claims: Ship arrest serves as security for the claims made against the ship
owner. By detaining the vessel, the arresting party ensures that there is an asset of value
that can be sold to satisfy the judgment if the court rules in their favor.
5. Resolution: The ultimate goal of ship arrest is often to encourage the parties involved to
reach a settlement. Once the ship is detained, there is increased pressure on the parties to
negotiate and resolve the underlying dispute. Settlement may involve the release of the ship
and the provision of security for the claim.

3
(1995) 1 Lloyd’s Rep.11
4
See Convention on Liens and Mortgages, 1993. Art. 9 (1).
 6. International Considerations: Ship arrest may involve considerations of international
maritime conventions and laws. The arrest of a ship in one country can have implications
for its activities in other jurisdictions. 5
It's important to note that ship arrest is a legal remedy and is subject to the laws and regulations of
the specific jurisdiction in which it occurs. The process and implications can vary based on the
legal systems involved and the nature of the maritime claim. Ship owners and operators facing the
possibility of ship arrest often seek legal advice to navigate the complexities of maritime law.
When can a ship be arrested?
The grounds for arresting a ship vary depending on the jurisdiction and applicable conventions.
However, some common reasons include:
 Unpaid maritime claims: This includes wages owed to crew, salvage costs, collision
damage, bunker supply debts, and more.
 Breach of mortgage or maritime lien: If a ship is subject to a mortgage or lien and the
owner defaults on the terms, the creditor can seek arrest to secure their interest. 6
 Safety or environmental concerns: A ship can be arrested if it poses a danger to
navigation or the environment.
Procedures for ship arrest:
 Filing a claim: The creditor must file a claim with the court in the jurisdiction where the
ship is located.
 Obtaining an arrest warrant: The court will review the claim and, if satisfied, issue an
arrest warrant.
 Serving the warrant: The warrant is served on the shipmaster, effectively detaining the
vessel.
 Security: The creditor must provide financial security to cover the costs of arresting and
maintaining the ship.
 Court hearing: The debtor can challenge the arrest in court, and the court will ultimately
decide whether to uphold or release the arrest.
Implications for creditors:
 Benefits: Ship arrest provides a powerful tool for creditors to secure payment and
incentivize prompt settlement. It can also improve their bargaining position in negotiations.
 Risks: The process can be expensive and time-consuming, and there's no guarantee of
success. Creditors may face challenges proving their claim or overcoming legal hurdles.

5
Currie, the Federal Courts and the American Law Institute (pt. 2), 36 U. CHL L. REV. 268, 303 (1969).
6
See Convention on Liens and Mortgages, 1993. Art. 9 (1).
 Implications for debtors:
 Disruption: Ship arrest can significantly disrupt operations, causing delays, revenue loss,
and reputational damage.
 Financial burden: Debtors must bear the costs of defending the arrest and potentially
providing security to secure the ship's release.
 Negotiation leverage: The threat of arrest can incentivize debtors to negotiate and reach a
settlement with creditors.

International conventions:

There are two main international conventions that provide a framework for ship arrest
procedures:

International Convention for the Unification of Certain Rules Relating to the Arrest of Sea-
going Ships, 1952 (1952 Arrest Convention):

 Aims to unify national laws on ship arrest across different jurisdictions.

 Defines "maritime claims" eligible for arrest, including salvage, collision damage, wages, and
more.7
 Establishes procedures for obtaining an arrest warrant and challenging the arrest in court.
 Prioritizes claims according to their nature, ensuring secured creditors (like mortgage holders)
receive payment first.8
 Currently adopted by over 70 countries.

 International Convention on Arrest of Ships, 1999 (1999 Arrest Convention):

 Aims to modernize and update the 1952 Convention, addressing limitations and clarifying
certain provisions.
 Expands the definition of "maritime claims" to include environmental claims and claims arising
from offshore exploration activities.
 Simplifies procedures for obtaining an arrest warrant and reduces judicial discretion in granting
arrests.
 Strengthens protection for crew members' wage claims.
 Currently adopted by around 10 countries, primarily newer maritime nations.

7
N. Gaskell & R. Shaw,”The Arrest Convention 1999”, LMCLQ (1999) 470-490 at 472.
8
Berlingieri, ”The Scope of Application of the 1952 Brussels Convention on the Arrest of Ships”, JMLC, Vol. 22,
No. 3 (1991) 405 at pp. 407-408.
 Comparison of the Conventions:

Feature 1952 Arrest Convention 1999 Arrest Convention

Scope Broad range of maritime claims Broader scope, including environmental and offshore claims

More complex, with greater

Procedures Simpler, more streamlined procedures
judicial discretion

Crew claims Protected, but not prioritized Strong priority for crew wages

Adoption Widely adopted Less widely adopted, mainly newer maritime nations

Overall, both conventions aim to provide a predictable and standardized legal framework for ship
arrest, offering benefits for both creditors and debtors by promoting transparency, consistency,
and fairness in resolving maritime disputes.

Procedures for Creditors and Debtors

Ship arrest is a powerful legal tool in maritime law, allowing creditors to detain a ship to secure
payment of maritime debts. It's a complex process with distinct procedures for both creditors and
debtors, impacting them significantly. Let's dive into the specifics:
Procedures for Creditors:
 Filing a Claim: The creditor initiates the process by filing a claim with the court in the
jurisdiction where the ship is located. This claim outlines the maritime debt owed, the basis
for arrest, and the desired relief (arrest and potential sale of the vessel). 9
 Obtaining an Arrest Warrant: The court reviews the claim and, if satisfied with its
validity and grounds for arrest, issues an arrest warrant. This warrant authorizes the court
bailiff to detain the vessel. 10
 Serving the Warrant: The court bailiff, along with the creditor's legal representative,
serves the arrest warrant on the ship's master, effectively detaining the vessel and
preventing it from leaving port.

9
Jackson, note 5 at 376
10
See The Anna H (1995) 1 Lloyd’s Rep 11 (C.A.)
  Providing Security: The creditor usually needs to provide financial security to cover the
costs of arresting and maintaining the ship while under detention. This can include
expenses for the bailiff, crew wages, and ship upkeep.
 Court Hearing: The debtor has the right to challenge the arrest in court. The court will
then hold a hearing to determine whether to uphold or release the arrest based on legal
arguments presented by both parties.
 Settlement or Enforcement: If the arrest is upheld, the creditor can either negotiate a
settlement with the debtor (leading to potential release of the ship) or proceed with the sale
of the vessel to satisfy the debt.
Procedures for Debtors:
 Responding to the Claim: Upon receiving notice of the creditor's claim and potential
arrest, the debtor should immediately seek legal counsel and strategize a response. This
may involve disputing the claim, offering alternative security, or attempting to negotiate a
settlement.
 Challenging the Arrest: If the ship is arrested, the debtor can file a motion with the court
to challenge the validity of the arrest warrant or the grounds for arrest. This can be based
on procedural errors, lack of sufficient evidence, or immunity from arrest under specific
conventions.11
 Providing Security: To potentially secure the release of the vessel before a court hearing,
the debtor can offer an alternative form of security to the creditor, such as a bank guarantee
or another ship under their ownership.
 Negotiating Settlement: Throughout the process, the debtor should consider negotiating
a settlement with the creditor to avoid the potential consequences of a prolonged arrest and
sale of the vessel. This can involve offering payment plans, partial settlements, or other
forms of debt restructuring.
 Participating in Court Hearings: If the arrest is challenged, the debtor's legal
representation will argue their case during the court hearing, aiming to convince the judge
to release the ship.12
Additional Considerations:
 Local Laws and Conventions: Ship arrest procedures and grounds can vary significantly
across jurisdictions. International conventions like the Arrest Conventions of 1952 and
1999 offer some harmonization, but local laws ultimately govern specific procedures.

11
Alcantara, J., ”Some Reflections Over the Brussels Convention Relating to Arrest of Sea Going Vessels and its
Amending Process”, Georgia Journal of International Comparative Law, Vol. 26 (1997) No. 3, 551 at p.554.
12
Tetley, note 67 at 962
  In Pakistan we have Admiralty Jurisdiction of High Court’s 1980 Ordinance which
explains the procedure for ships arrest.
 Costs and Risks: Both creditors and debtors face significant financial risks associated with
an arrest. Legal fees, security deposits, and operational disruptions can be substantial.
 Reputational Impact: An arrest can negatively impact the reputation of both the creditor
and the debtor, affecting future business relationships and creditworthiness.
 Alternative Solutions: Exploring alternative dispute resolution methods like mediation or
arbitration can be beneficial to both parties, potentially leading to quicker and less costly
solutions than litigation.
Conclusion:
The law of ship arrest is a complex legal realm with significant implications for both creditors and
debtors. Understanding the procedures and potential consequences is crucial for navigating this
process effectively. Seeking professional legal advice is essential for both parties to protect their
interests and minimize risks. Remember, open communication and exploring alternative solutions
can often lead to mutually beneficial outcomes, even in the face of a potential ship arrest.