Introduction to Commercial Maritime Law

 

• Governs sea-based commercial activity.

• Rooted in historical laws like Rhodian Sea Law and the Black Book of the Admiralty.

• Key features include international scope, unique legal traditions, and flag state control.

• Concept of the ship as a juridical person.

 

Scope of Commercial Maritime Law

 

• Covers territorial waters, high seas, and exclusive economic zones.

• Regulates vessels, carriage of goods, marine insurance, salvage, torts, mortgages, and financing.

 

Jurisdiction in Maritime Law

 

• Includes flag state, port state, coastal state, and admiralty jurisdiction.

• In personam targets individuals/companies; in rem targets vessels.

• Forum non conveniens allows court to defer jurisdiction.

Maritime Liens

 

A maritime lien is a privileged legal claim against a vessel that arises by operation of law. It remains attached to the ship irrespective of ownership changes and can be enforced through an action in rem. It is not dependent on possession and often remains invisible or unregistered.

 

• Privileged legal claim that attaches to vessels regardless of ownership.

• Enforced in rem; requires no possession or registration.

• Exists by operation of law and is independent of contractual agreements.

 

Types of Maritime Liens

• Seamen’s wages, salvage, tort claims, ship mortgages, necessaries.

• Includes historical types like bottomry and respondentia.

 

Characteristics of Maritime Liens

• Arise instantly when claim occurs.

• Secret, persistent, time-limited, and extinguished with vessel destruction.

 

Contractual vs. Damage Liens

• Contractual: Based on services like wages or repairs.

• Damage: Based on torts like collisions or personal injury.

 

Enforcement and Priority of Maritime Liens

• Custodia legis, wages, salvage, torts, mortgages, necessaries in typical order.

• Enforced via arrest and judicial sale.

• Priority varies across jurisdictions.

 

Possessory Liens Introduction

• Right to retain property until payment; depends on possession.

• Arises by contract or law and lacks right of sale.

• Used by shipyards, stevedores, and service providers.

 

Types of Possessory Liens

• Includes shipyard, stevedore, warehouseman, carrier, and agency liens.

• Requires continuous possession to remain valid.

 

Priority of Possessory Liens

• Generally ranked below maritime liens.

• Follows 'first in time, first in right' unless statutes override.

• Conflicts may arise with ship mortgages or statutory interests.

 

Case Study – Bold Buccaneer

 

Crew – £180,000 (Unpaid Wages)
Maritime lien – Highest-ranking substantive claim

 

South Coast Salvage – £120,000 (Salvage Services)
Maritime lien – Next in priority after wages

 

Northern Star Shipping – £350,000 (Collision Damage)
Maritime lien – Tort-based claim

 

Master – £25,000 (Disbursements for Essentials)
Maritime lien – Typically recognised for ship-related disbursements

 

Southampton Port Authority – £45,000 (Port Dues)
Statutory right in rem – Priority after maritime liens

 

Maritime Finance Bank – £5 million (Registered Mortgage)
Statutory right in rem – Below all maritime liens and port dues

 

Southampton Marine Services – £275,000 (Unpaid Repairs)
Lost possessory lien; may claim under statutory in rem as necessaries
Ranks below mortgage unless specific circumstances elevate priority

 

Cargo Owners – £2.1 million (Unsecured Cargo Concerns)
No lien or statutory claim unless cargo is unlawfully sold or mishandled
Would rank last if they assert a valid claim

Comparison Between Maritime and Possessory Liens

 

• Maritime liens don't require possession; possessory liens do.

• Maritime liens persist through ownership; possessory liens don't.

• Enforceability, assignability, and recognition differ