Maritime Debt Collection: A Creditor's Procedural Guide

Ship arrestUltimate pressure tool

1 yearHague-Visby limitation

15–30%No cure no fee

The Maritime Debt Taxonomy

1 yearHague-Visby cargoFrom delivery date

6 yearsCharterparty EnglishLimitation Act 1980

48–72hRotterdam arrestFastest EU venue

15–30%ContingencyNo upfront fee

NY Conv.Arbitral awardsLMAA/ICC/SIAC

Collection process

1

Classify claim + sanctions screen

Charter hire, bunker, DA, cargo, demurrage. Screen vessel/owner/charterer against OFAC SDN, EU, UN, UK OFSI lists.

2

Formal demand + AIS monitoring

Demand on owner/charterer citing BIMCO form and arbitration clause. Track vessel AIS for friendly arrest jurisdiction.

3

Ship arrest or LMAA arbitration

Arrest in Rotterdam/Piraeus/Singapore (24–48h ex parte). P&I club issues LoU. Settle via arbitration in London under LMAA Small Claims.

A vessel is en route to Rotterdam. Your invoice for charter hire, bunker supply, or ship agent disbursements is 90 days past due. Maritime debt collection is one of the few B2B recovery disciplines where the creditor has a tool that truly changes the negotiation: the right to arrest the ship itself. Used correctly, a prima facie maritime claim and a call to local admiralty counsel can produce wire transfers within 48 hours.

Maritime receivables fall into specific categories: unpaid charter hire (NYPE/GENCON/BALTIME), unpaid bunker bills, unpaid ship agent disbursements (DA balances), cargo claims, demurrage and detention, port dues, crew wages, classification/survey fees. Each has a different limitation period, procedural route, and leverage profile.

Ship Arrest: The Ultimate Pressure Tool

Ship arrest prohibits the vessel from leaving port until security is posted. A capesize bulker costs USD 20,000–30,000/day in hire alone. Three days of arrest often produces a settlement that twelve months of correspondence could not. The Arrest Convention 1952/1999 applies across most maritime jurisdictions. Requirements: prima facie maritime claim + forum with jurisdiction + counter-security from creditor. Most continental jurisdictions grant ex parte within 24–48 hours.

Rotterdam (Rechtbank Rotterdam): 24–48h, EUR 5,000–12,000. Piraeus (Greek courts): 24h, EUR 6,000–18,000. Gibraltar: 24–48h, GBP 6,000–15,000. Malta (First Hall Civil Court): 48–72h. Singapore (High Court Admiralty in Rem): 24h. DIFC Dubai: 48h. Rotterdam Maritime Chamber: arrest + P&I LoU within 24 hours is realistic for most commercial files.

Limitation Periods: The Clock Runs Faster at Sea

Hague-Visby Rules: 1-year limitation from delivery (Article III, rule 6). Hamburg Rules: 2 years from delivery. Charterparty claims under English law: 6 years (Limitation Act 1980), subject to arbitration clause. Dutch Book 8 BW: typically 2 years. CMR (road+maritime door-to-door): 1 year for ordinary claims. The practical rule: if the Hague-Visby window is inside 60 days, escalate to specialist counsel immediately for a protective writ or time extension agreement.

Charterparty disputes almost never go to national courts. Standard BIMCO forms incorporate arbitration clauses: LMAA (London), SMA (New York), CMAC (China). LMAA handles the largest volume globally. The existence of an arbitration clause does not prevent arrest of the vessel in another jurisdiction as security for the arbitration award.

How does maritime debt collection work?

Maritime debt collection combines commercial recovery with admiralty tools. The collector classifies the claim, confirms governing law and limitation period, screens the debtor for sanctions, and pursues payment through negotiation. If the debtor resists, arrest the vessel in the next port of call under the Arrest Convention 1952, forcing security before departure. Most maritime claims settle within 48–72 hours of arrest via P&I club letter of undertaking.