What are the legal grounds for "arresting" a ship in a foreign port?

You can arrest a ship to secure a "maritime claim," which is a specific list of debts defined by international conventions (like the 1952 or 1999 Arrest Conventions ). Common grounds include unpaid crew wages, collision damage, loss of cargo, or unpaid suppliers (like fuel or repair yards). The arrest is an "in rem" action, meaning you technically sue the ship itself, not the owner. This forces the ship to stay in port until the owner provides security—usually a bank guarantee or cash—to cover the claim.

What is "General Average" and why do cargo owners have to pay for a ship's rescue?

General Average is an ancient maritime principle that says "all for one, and one for all." If a captain voluntarily sacrifices part of the ship or cargo to save the rest of the voyage (e.g., throwing containers overboard to lighten a ship during a storm), everyone who benefits must share the cost. This means even if your cargo arrived safely, you cannot pick it up until you pay your share of the lost containers' value. Lawyers act as adjusters to calculate these complex contributions.

How does a lawyer handle a "demurrage" claim for delays in loading/unloading?

Demurrage is effectively a "parking ticket" for ships. If a charterer takes too long to load or unload cargo, they must pay the shipowner a daily penalty (often $20,000+ per day). Lawyers fight these claims by analyzing the "Statement of Facts" to see why the delay happened. If the delay was caused by bad weather or a crane breakdown, the charterer might be excused under the "laytime exceptions" clause, saving them from paying the fine.

What is the difference between a "Time Charter" and a "Voyage Charter" dispute?

The difference lies in what is being rented. In a Time Charter, you rent the ship for a period (e.g., 2 years); disputes usually involve the ship's speed and fuel consumption (e.g., "You said this ship burns 30 tons of fuel a day, but it burns 40"). In a Voyage Charter, you rent the ship for a specific trip (e.g., A to B); disputes usually focus on "laytime" (how long loading took) and cargo safety. A lawyer determines which standard form contract (like NYPE vs. Gencon) applies to resolve the argument.

How are damages calculated in a ship collision case?

Collision damages are calculated based on the "proportion of blame." If Ship A is 70% at fault and Ship B is 30% at fault, Ship A pays 70% of Ship B's repair bill, and Ship B pays 30% of Ship A's bill. Lawyers work with technical experts to reconstruct the accident using "VDR" (Voyage Data Recorder) black box data to argue these percentages. They also calculate "loss of use"—the profit the ship would have made while it was sitting in the repair drydock.

Why is London (LMAA) the center for so many maritime arbitrations?

London dominates because of history, expertise, and the "English Law" standard. Most global shipping contracts automatically select English Law because it is predictable and commercially focused. The London Maritime Arbitrators Association (LMAA) handles more maritime disputes than any other venue globally. The arbitrators are industry experts (often ex-captains or brokers) rather than general judges, meaning they understand technical terms like "demurrage" without needing an explanation, making the process faster and more accurate.

What is the "limitation of liability" for shipowners under international conventions?

This is a unique "get out of jail cheap" card for shipowners. Under the 1976 or 1996 LLMC Conventions, a shipowner can cap their total financial liability for an accident based on the ship's size (tonnage), regardless of the actual damage caused. For example, if a small ship causes $100 million in damage, the owner might legally only have to pay $10 million. Lawyers often fight to "break the limit" by proving the owner acted with "reckless intent," but this is notoriously difficult to prove in court.

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Incisive Law LLC

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Shipping Litigation FAQ

A shipping litigation lawyer handles conflict on the high seas and in the boardroom. Their work falls into two buckets: "Wet" disputes involve physical accidents like collisions, groundings, salvage operations, and oil pollution. "Dry" disputes involve contracts, such as charterparty breaches, cargo damage claims, ship building disputes, and unpaid bunker (fuel) bills. They effectively act as the "emergency services" for the maritime industry, resolving crises that can cost millions of dollars a day in lost trade.

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