Maritime Debt Recovery: Shipping Sector Collection Guide

Ship arrestUltimate pressure tool

1 yearHague-Visby cargo

15–30%No cure no fee

The Anatomy of Maritime and Shipping Debt

1 yearHague-Visby cargoArt.III rule 6 from delivery

6 yearsCharterparty UKLimitation Act 1980

48–72hRotterdam arrestFastest EU venue

15–30%NCNF contingencyNo upfront retainer

NY Conv.LMAA / SIACArbitration enforcement

Collection process

1

Classify claim + sanctions screen

B/L vs charterparty vs DA vs bunkers vs cargo. Screen vessel/owner/charterer against OFAC SDN, EU, UN, UK OFSI. Check maritime liens vs ordinary claims.

2

Track vessel + instruct arrest counsel

AIS monitoring for friendly arrest port. Instruct admiralty counsel 48h before ETA. Rotterdam, Piraeus, Singapore, Gibraltar — ex parte order within 24h.

3

Arrest + P&I security negotiation

Court order prohibits vessel departure. Owner's P&I club issues Letter of Undertaking covering claim + interest + costs. LMAA/SMA arbitration for merits.

A charterer owes USD 1.8M unpaid hire. The vessel is still trading. Three days of arrest often produces a settlement that twelve months of correspondence could not — a capesize burns USD 20,000-30,000/day in hire alone.

Key Ship Arrest Jurisdictions

JurisdictionSpeedCost est.

Rotterdam (NL)

24–48h

Rechtbank Rotterdam Maritime Chamber — largest EU port, LoU within 24h

EUR 5–12K

Piraeus (GR)

24h

Greek courts — ~20% world fleet by DWT, fast ex parte

EUR 6–18K

Gibraltar

24–48h

UK Supreme Court jurisdiction — Med transit corridor

GBP 6–15K

Malta

48–72h

First Hall Civil Court Admiralty — Valletta Grand Harbour

EUR 6–14K

Singapore

24h

High Court Admiralty — dominant Asian arrest venue

SGD 15–30K

DIFC Dubai

48h

UAE Maritime Code — Gulf & East Africa corridor

Varies

How does maritime debt recovery work?

Classify the claim (B/L, charterparty, DA, bunkers), confirm limitation (1yr Hague-Visby, 6yr English CP), screen for sanctions, track AIS, arrest in a friendly port (24-48h ex parte). P&I club posts Letter of Undertaking. Merits resolved through LMAA/SMA arbitration or New York Convention enforcement.