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How do you arrest a ship?


kangforpres
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The meaning of ship arrest

In 77 countries the arrest of ships is based on the national laws giving effect to the 1952 Brussels Convention on the Arrest of Sea-going Ships (‘the 1952 Convention’), while in 10 other countries the arrest of ships is based the 1999 International Convention on Arrest of Ships 1999 (‘the 1999 Convention’).

An arrest prevents the ship from leaving port. It is under the authority of a court or of the appropriate judicial authority. It is different to the detention of a ship under the MLC by port state control authorities since this is not a court supervised process. Your rights under the MLC are additional to your other rights. You may invoke your rights under the MLC or arrest the ship on the basis of your maritime lien or arrest a sister ship. You should take advice from a local lawyer as to your best course of action.

 

https://seafarersrights.org/seafarers-rights-fact-files/arrest-of-ships/

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14 minutes ago, kangforpres said:

I think the mean "impound" but then again it is Florida so who knows...."Florida Man arrests cruise ship" 

 

https://www.cruiseindustrynews.com/cruise-news/26642-arrest-warrant-issued-for-crystal-symphony.html

 

 


Well, that topic got my attention! 😉

 

Apparently there are many unpaid fuel bills (plus some for other cruise ships/lines).

 

But the title of the article is slightly (only slightly!) less sensational:

"Arrest Warrant Issued for Crystal Symphony"

 

"...

On Thursday United States Distrcit Judge Darrin P. Gayles ordered that the court issue a warrant for the arrest of the Symphony.

The ship was set to dock in Miami this weekend but is instead ending its current sailing out of U.S. waters in the Bahamas.

..."

 

So it looks like the "arrest" warrant was indeed issued, and the ship jumped bail (or whatever it would be called).


Given that the suit was against Crystal Cruises as well, and not just the ship, I wonder if other Crystal ships will avoid Florida waters, or perhaps any USA waters?  That would be a problem!

Could the powers that be impound or put a lien on (or "arrest"!?) another Crystal ship if it ventured into the "wrong" waters while this is in play?

 

It looks like Global Maritime Security usually *protects* ships, rather than assisting in somehow confiscating them.

 

This will be interesting!

 

ETA:  Thanks to richwmn for adding some helpful information. Very interesting!


GC

Edited by GeezerCouple
add thanks to richwmn
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This is a very unfortunate set of circumstances that does little to help the cruise industry and its current PR problems.  We recall previous ship "arrests"  (one in particular involved the long gone Regency Cruise Lines) and it certainly is an incentive for Genting to somehow pay its bills.  But the recent cancelations related to the Omicron variant make me wonder just how long NCLH, CCL and RCI can continue to function.  Each of these corporations had arranged for substantial cash infusion via borrowing and financial obligations, but none of these companies have unlimited funds.  Most of the planning assumed that operations would be moving back to normal by now but Omicron (and continues issues with ports) couples with a reluctance of many folks to cruise are causing a constant cash drain.  We are keeping our fingers crossed that most of the industry can somehow survive COVID.

 

Hank

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I worked with a law firm some time ago that specialized in maritime law.  

 

One of the partners described to me the challenges of 'arresting' a ship for creditors. 

 

Challenge is ships are mobile, can reach international waters before the seizure paperwork is processed..   It apparently can take time in many jurisdictions to prepare the necessary paperwork and by that time the ship could have sailed.

 

Creditors have the right to secure payment.....in many forms.

Edited by iancal
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3 minutes ago, iancal said:

I worked with a law firm some time ago that specialized in maritime law.  

 

One of the partners described to me the challenges of 'arresting' a ship for creditors. 

 

Challenge is ships are mobile, can reach international waters before the seizure paperwork is processed..   It apparently can take time in many jurisdictions to prepare the necessary paperwork and by that time the ship could have sailed.

 

Creditors have the right to secure payment.....in many forms.

 

I'm not questioning the right to secure payment, and I doubt others are, either.

I think we are mostly (I am, at least!) amused by the phrase "arrest a ship".  Upon seeing that for the first time, it's hard not to have a momentary image, or at least a thought, of somehow putting handcuffs on a ship or throwing it in jail. 🤣

 

For those civilians among us, "impound" or some other similar word would *seem* to be the one to use.  But apparenly "arrest" IS what the word is when properly used.

For once, the phrase "but that ship has sailed" is REALLY appropriate! 😉 

 

And on a less humorous note, how *will* the cruise lines stay afloat (ohhh, not again! 🙂 ).

I wonder what the capacity is for them to at least cover immediate operating costs?  And that probably wouldn't include the full crew, which would make ramping up again all the more difficult.

 

GC

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Okay.  Yes, a ship can be "arrested".  These for what are called in many states as "mechanic's liens".  The creditor goes to court and presents their case, and the judge will swear out a US Marshal to serve the papers.  Yes, if the debtor hears of the proceedings, they can move the ship outside of the US jurisdiction, but if the Marshal serves the papers, then they will notify the USCG, which will deny permission to depart.  If another Crystal ship enters US waters, then that ship can be seized as collateral until the debt is paid.  In maritime law, the ship itself has financial obligations, further to those of the ship owner.

 

As for the crew, under the international law mentioned above as the "MLC", the shipowner is liable for wages for the crew, and repatriation costs, which, if they cannot pay at the time, the "Port State" will pay, and then make a further lien against the shipowner.  This lien, and the one that led to the arrest of the ship become primary lienholders, meaning they get paid first from the company's assets, ahead of all others.  Seaman's liens for wages, etc, are the primary lien in maritime law, followed by salvage, personal injury or death, liens for "necessaries" (goods and services provided to the ship), all ahead of even mortgage liens.

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It sounds like the excitement is just starting and nobody really knows what is going to happen next except for the possibility of the media running away with the story.

 

Where is Dog the bounty hunter when you need him?

 

 

 

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2 minutes ago, Aquahound said:

Yep, chengkp75 pretty much nailed it.  

 

And ref the OP's post, the state of Florida had nothing to do with it.  This is a federal action.  

Thanks, Paul.

 

Another different characteristic of a maritime lien is that they are referred to as "silent" liens, meaning the entire procedure can be done without any notification to the shipowner, right up until the Marshal shows up.

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1 hour ago, chengkp75 said:

Okay.  Yes, a ship can be "arrested".  These for what are called in many states as "mechanic's liens".  The creditor goes to court and presents their case, and the judge will swear out a US Marshal to serve the papers.  Yes, if the debtor hears of the proceedings, they can move the ship outside of the US jurisdiction, but if the Marshal serves the papers, then they will notify the USCG, which will deny permission to depart.  If another Crystal ship enters US waters, then that ship can be seized as collateral until the debt is paid.  In maritime law, the ship itself has financial obligations, further to those of the ship owner.

 

As for the crew, under the international law mentioned above as the "MLC", the shipowner is liable for wages for the crew, and repatriation costs, which, if they cannot pay at the time, the "Port State" will pay, and then make a further lien against the shipowner.  This lien, and the one that led to the arrest of the ship become primary lienholders, meaning they get paid first from the company's assets, ahead of all others.  Seaman's liens for wages, etc, are the primary lien in maritime law, followed by salvage, personal injury or death, liens for "necessaries" (goods and services provided to the ship), all ahead of even mortgage liens.

 

It pleases me to know that the crew's wages rank so high in repayment.

 

L.

 

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36 minutes ago, chengkp75 said:

Thanks, Paul.

 

Another different characteristic of a maritime lien is that they are referred to as "silent" liens, meaning the entire procedure can be done without any notification to the shipowner, right up until the Marshal shows up.

I found you over here Mr Chengkp because you know so much. Apparently, the Grand Voyage Serenity was almost arrested in Cozumel today due to unpaid bills. The ships Captain came on the speaker to tell passengers. They are also concerned about fuel and food provisions for the next 8 days. Who knows what country will let them dock? 

Edited by TrulyBlonde
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20 minutes ago, chengkp75 said:

Thanks, Paul.

 

Another different characteristic of a maritime lien is that they are referred to as "silent" liens, meaning the entire procedure can be done without any notification to the shipowner, right up until the Marshal shows up.

 

Thanks once again, Chengkp75, for adding to our knowledge.  It's all very fascinating.

 

I was wondering if there wouldn't have been some "secret" ("silent") was to process this so that the ship couldn't get away, or in this case, fail to arrive, when I read the following in the link above:

 

"...The ship was set to dock in Miami this weekend but is instead ending its current sailing out of U.S. waters in the Bahamas..."  [The preceding link includes "The Crystal Symphony’s current cruise will now end in Bimini as opposed to Miami with a letter to guests aboard citing operational issues..."]

So... "operational issues". 😉 

 

So did someone "goof" and the information became public too soon?

 

How many other Crystal cruises are still sailing to/from US waters in the very near future?

Sounds like the passengers might be on their own getting home if the ship can't reach it's proper final US port...?

 

IIRC, there was one cruise line that was left out of a list of lines that were covered by travel insurance in case of bankruptcy or something like that.  I'm thinking that was Crystal?

 

Another reason to think twice about getting on a cruise ship.  Yikes!

At least at a hotel, one can just walk out the door where one planned to be...

 

GC 

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2 hours ago, GeezerCouple said:

 

I'm not questioning the right to secure payment, and I doubt others are, either.

I think we are mostly (I am, at least!) amused by the phrase "arrest a ship".  Upon seeing that for the first time, it's hard not to have a momentary image, or at least a thought, of somehow putting handcuffs on a ship or throwing it in jail. 🤣

 

For those civilians among us, "impound" or some other similar word would *seem* to be the one to use.  But apparenly "arrest" IS what the word is when properly used.

For once, the phrase "but that ship has sailed" is REALLY appropriate! 😉 

 

And on a less humorous note, how *will* the cruise lines stay afloat (ohhh, not again! 🙂 ).

I wonder what the capacity is for them to at least cover immediate operating costs?  And that probably wouldn't include the full crew, which would make ramping up again all the more difficult.

 

GC

🤣🤣🤣 I also had a vision of gigantic handcuffs.

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2 hours ago, chengkp75 said:

Okay.  Yes, a ship can be "arrested".  These for what are called in many states as "mechanic's liens".  The creditor goes to court and presents their case, and the judge will swear out a US Marshal to serve the papers.  Yes, if the debtor hears of the proceedings, they can move the ship outside of the US jurisdiction, but if the Marshal serves the papers, then they will notify the USCG, which will deny permission to depart.  If another Crystal ship enters US waters, then that ship can be seized as collateral until the debt is paid.  In maritime law, the ship itself has financial obligations, further to those of the ship owner.

 

As for the crew, under the international law mentioned above as the "MLC", the shipowner is liable for wages for the crew, and repatriation costs, which, if they cannot pay at the time, the "Port State" will pay, and then make a further lien against the shipowner.  This lien, and the one that led to the arrest of the ship become primary lienholders, meaning they get paid first from the company's assets, ahead of all others.  Seaman's liens for wages, etc, are the primary lien in maritime law, followed by salvage, personal injury or death, liens for "necessaries" (goods and services provided to the ship), all ahead of even mortgage liens.

Glad to hear the crew comes first in all this, and at a minimum gets transportation home.

 

What about passengers? Are they stuck in whatever port the ship is arrested in? Is anyone responsible for them, or are they on their own?

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5 minutes ago, ontheweb said:

Glad to hear the crew comes first in all this, and at a minimum gets transportation home.

 

What about passengers? Are they stuck in whatever port the ship is arrested in? Is anyone responsible for them, or are they on their own?

In this case, Crystal will be ferrying them back to Port Everglades, but obviously not on one of its own vessels.

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10 minutes ago, ontheweb said:

Glad to hear the crew comes first in all this, and at a minimum gets transportation home.

 

What about passengers? Are they stuck in whatever port the ship is arrested in? Is anyone responsible for them, or are they on their own?

 

3 minutes ago, Fouremco said:

In this case, Crystal will be ferrying them back to Port Everglades, but obviously not on one of its own vessels.

I'm not sure about the above.  Typically, passenger refunds are way down the line in priority of creditors.  Not sure what the ticket contract specifies, but then like I say, they are low priority.

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7 minutes ago, chengkp75 said:

 

I'm not sure about the above.  Typically, passenger refunds are way down the line in priority of creditors.  Not sure what the ticket contract specifies, but then like I say, they are low priority.

I had a feeling that the passengers did not rate very high in this process. I would imagine travel insurance would come in handy in this situation. And I would also guess that it had better be private insurance rather than insurance through the cruise line.

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10 minutes ago, chengkp75 said:

 

I'm not sure about the above.  Typically, passenger refunds are way down the line in priority of creditors.  Not sure what the ticket contract specifies, but then like I say, they are low priority.

There are a number of media outlets reporting that the passengers are to be ferried back. Here's one article: https://www.seatrade-cruise.com/legal-regulatory/fuel-supplier-secures-arrest-warrant-crystal-cruises-ship

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6 minutes ago, Fouremco said:

There are a number of media outlets reporting that the passengers are to be ferried back. Here's one article: https://www.seatrade-cruise.com/legal-regulatory/fuel-supplier-secures-arrest-warrant-crystal-cruises-ship

Okay, this is the flag state exercising it's responsibility to get the passengers home, and place a further lien on the ship to recoup the cost.

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