China -  Chinese law firm

Under current law, a time chartered vessel may be arrested because of a claim against her charterer even though the owner is not responsible for the claim. Is this provision valid under the new MPL?

Under current law, a time chartered vessel may be arrested because of a claim against her charterer even though the owner is not responsible for the claim. Is this provision valid under the new MPL?

Pre-trial arrest of ships for the purpose of preservation of maritime claims is an important system in maritime procedures. According to the previous MPL, the bareboat charterer of the ship concerned was liable for a maritime claim. If at the time of arrest the charterer was also the bareboat charterer or owner of the ship concerned, the ship may be arrested. This means that a ship chartered by the person against whom a maritime claim is made under a time charter party or a voyage charter party, could no longer be arrested. The MPL rules out the arrest of the other ships chartered or operated by the person who is liable for the maritime claim, and provides that only those other ships that are owned by the person liable may be arrested. However, under circumstances where the maritime claims concern the ownership or possession of a ship, only the ship concerned may be arrested. According to the MPL, a ship can be re-arrested in the following circumstances: 1) the person against whom a claim is made fails to provide sufficient security; 2) the security may not be able to fulfill the obligation under the charge in whole or in part; 3) the maritime claimant has on reasonable grounds agreed to release the ship in return of the security provided; 4) or he has not been able to stop the releasing of the ship or the return of the security provided.

 

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