The uncertain shipping market makes the issue of arrest a topical one. The key questions being; where are the most advantageous arrest jurisdictions? And what makes them so favourable? The UK P&I Club has issued a new legal briefing to provide a quick overview of ship arrest in some popular jurisdictionsand sets out why they are potentially advantageous.
South Africa
The Club says that is area is arguably one of the most well-known arrest jurisdictions is South Africa; it has numerous procedures which make it favourable for arrest. There are effectively three ways to arrest or attach a ship in South Africa; i) an arrest in rem, ii) an arrest in personam,and iii) a security arrest. An interesting feature of this jurisdiction is that of associated ship arrests.This allows for the arresting party to take a step further than under the traditional sister or surrogate ship arrest procedure.
Australia
Australia is not a signatory to any arrest convention. Ship arrest is governed by the Admiralty Act 1988.To arrest in Australia your claim would need to be a maritime lien,a proprietary maritime claim or a general maritime claim. Arrest in Australia is relatively straightforward and there is the added advantage of a dedicated Maritime court.
USA
The US is not a signatory to any arrest convention. Under US law the two primary tools for arresting/attaching a vessel are to be found under Rule C and Rule B of the Federal Rules of Civil Procedure’s Supplemental Rules for Certain Admiralty and Maritime Claims. Unlike South Africa, the courts in the USA will always have jurisdiction over the substantive claim unless a forum selection clause requires that the claim be bought in a different jurisdiction. There is no associated or sister ship arrest available.
Hong Kong
Hong Kong is signatory to the 1952 Brussels Arrest Convention and ship arrest in Hong Kong is based on the principles of English law. It is both quick and cheap to arrange, and does not require the provision of counter-security. Ship arrest is available to claimants predominantly for possession or ownership disputes, mortgages, damage to the ship, salvage etc.and also for maritime liens available under Hong Kong law including damage done by ship, salvage, wages and masters’ disbursements.
Further details may be found by reading Club’s Legal Briefing below
Source: The UK P&I Club
