Who Can Actually Arrest Your Vessel?

 ⚖️ Who Can Actually Arrest Your Vessel?

Understanding Charter Party Chains, Claims, and When Arrest is (Not) Possible

 

❓ Can a sub-charterer arrest your vessel if you're not on a demise charter?

❓ Does a claim with no details still pose a legal threat?

❓ Are you exposing your vessel to unnecessary risk without knowing it?

 

🔍 Clause Breakdown & Legal Insight

In a recent charter party dispute, a key clause raised the following point:

"If the claim is made by sub-charterers... an arrest would be possible only if the head charterers have the vessel on demise/bareboat charter. That is not the case."

This clause refers to the legal right to arrest a vessel, and more importantly, who actually has the standing to do so under maritime law.

🚢 1. What is a Demise/Bareboat Charter?

A bareboat (or demise) charter is a charter arrangement where the charterer takes full control and responsibility of the vessel — including crewing, insurance, and operations — for a defined period. The vessel is essentially theirs for the duration.

• Why this matters:
  In many jurisdictions (e.g., England & Wales, Singapore), only a demise charterer can be treated like the ship’s "owner" for arrest purposes.

So if a sub-charterer wants to arrest a vessel due to a dispute under a time charter, but the vessel is not under a demise charter, their legal footing is weak — often non-existent.

 

⚠️ Implications & Common Pitfalls

🧱 Key Implication

A sub-charterer or sub-sub-charterer may believe they can arrest the vessel, but if the head charter is a time charter or voyage charter (not bareboat), the courts will likely not entertain the arrest.

❌ Common Pitfalls

• Confusing charter hierarchy: Sub-charterers often misunderstand their legal standing relative to the vessel.
• Assuming arrestability = leverage: A weak or uninformed arrest attempt may backfire, leading to court costs and reputational damage.
• Failing to verify the claim basis: Owners sometimes rush to provide security (LoU) without knowing the claimant, claim value, or nature — increasing exposure.

 

📚 Case Law & Commentary

• The "Tychy" [1999]: Reinforced that only a demise charterer has standing to arrest the vessel in jurisdictions following English maritime law.
• BIMCO Commentary: Charterers should not assume arrest rights unless they are demise charterers or have contractual security provisions.

 

✅ Actionable Steps for Operators & Owners

🔎 1. Verify Charter Type

Confirm whether the head charter is a time, voyage, or demise charter. Arrest rights vary significantly depending on this.

📄 2. Request Claim Specifics

Before responding to arrest threats or LoU requests, ask for:

• Identity of claimant
• Legal basis of claim
• Exact claim value

🚫 3. Do Not Offer Security Blindly

Avoid offering security or LoU unless there's legal clarity. Doing so prematurely may open doors to future liability.

🧩 4. Communicate Up the Chain

Ensure sub-charterers and brokers are aware of their standing. Misunderstandings can waste time and risk unnecessary conflict.

👥 5. Engage P&I Early

Involve your P&I Club as soon as arrest is suggested. They can advise on jurisdictional exposure and help assess if security is needed.

 

🚀 Final Thoughts

In the complex world of multi-layered charter parties, legal rights aren’t always what they seem. If you're not on a demise charter, sub-charterers likely can’t arrest your vessel — even if they threaten to.

Before reacting, pause, verify, and act smart.

 

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⚠️ Disclaimer:

This blog post is for informational purposes only and does not constitute legal advice. Always consult your P&I Club or legal counsel for guidance specific to your charter party and jurisdiction.