Ship Arrest: Strategic Considerations Before You Act

Arresting a ship is one of the most effective ways to put pressure on a counterparty in a shipping dispute. A vessel is a valuable, mobile asset, and its owner or operator rarely wants it held in port for long. A well-timed arrest often brings security or serious negotiation. A hasty one, however, can bring heavy costs and even liability for the claimant.

What is the purpose of an arrest?

In most cases the aim is to obtain security for the claim, not to sell the ship. The vessel is usually released once a bank guarantee, cash deposit or P&I club letter of undertaking is provided, and the merits are then decided in court or arbitration. Before acting, the claimant should be clear about the end goal: security for a future judgment or award, leverage for settlement, or direct recovery.

Five questions to answer first

• Is it a maritime claim? Freight, cargo damage, demurrage, repairs, bunkers and crew wages usually qualify, but the exact categories depend on the law of the country where the arrest is sought.
• Who owns the ship? Your contractual debtor may be a time or voyage charterer rather than the registered owner. Arresting a third party’s vessel for a charterer’s debt is difficult in many jurisdictions, so registry, flag and ownership checks are essential.
• Where is the ship, and for how long? An arrest is only possible where the vessel is. Timing, knowledge of the local authorities and documents ready to file make the difference in practice.
• What counter-security is required? Courts commonly require the claimant to provide security against the owner’s potential losses. The amount and how it will be provided should be settled in advance.
• Who pays to keep the ship under arrest? Port dues, guarding and sometimes crew welfare can fall on the claimant in practice, especially if the owner abandons the vessel.

Arrest in Iran and abroad

Before the Iranian courts, ship arrest is generally pursued through an attachment order or an interim injunction, applying the Maritime Code and the rules of civil procedure. If the ship is in a port in the UAE, Türkiye or elsewhere, the arrest must follow local law and be filed by locally licensed counsel. Our role in that case is to set the strategy, prepare the evidence and coordinate between the client and local counsel.

The risk of wrongful arrest

If an arrest later proves unfounded or made in bad faith, the claimant may have to compensate the owner for delay and lost employment of the vessel, sometimes for more than the original claim. Assessing the evidence and the proportionality of the step is therefore part of the decision to arrest.

Alternatives to consider

A P&I letter of undertaking, an agreement to provide security without arrest, or arbitration combined with a request for interim measures can sometimes achieve the same result at lower cost and risk. The right route depends on the contract of carriage, the dispute resolution clause and the counterparty’s financial position.

Learn more about our maritime and shipping law work, and for matters in foreign ports see commercial and maritime disputes in the UAE and Türkiye.

This note is general information and is not legal advice on any particular matter. To discuss your situation, request a consultation.