Arrest of ships
The Club provides a comprehensive debt collection service, which has resulted in the collection of more than USD 5 million in the past two years. In order to accomplish recoveries it is often necessary to arrest ships on behalf of Members. (One or two ships have been arrested in each month). Before an arrest is effected we ask the Member to confirm the existence of the debt by replying to a communication on the following lines:
An arrest to obtain security for your debt is being prepared. Prior to arranging arrest the Club must seek your confirmation that the debt is owed to you by the owners and is now due and not subject to any known, or suspected, set-off or counterclaim. The arrest will be in the name of your company and you will appreciate that the Club is totally relying on the information you have provided and is unable to accept any liability for any damages that would become payable should the arrest be declared wrongful.
Members have expressed concern on receipt of this letter that the Club expects them to know whether there is a right to arrest in the particular jurisdiction. We would like to reassure Members that we are only asking for confirmation that the debt is owed and there is no counterclaim or set-off. If a ship were to be arrested and for instance it subsequently emerged that the debt had already been paid to the Member, then the Member would face responsibility for wrongful arrest. Whether there is a right to arrest in any jurisdiction for a particular debt is a question on which the local lawyers will advise, and the club would not hold the Member liable for wrongful arrest if the information provided by him is accurate.
Container of glass detained in Jakarta
A liner agent Member in the UK received two separate requests from the same glass manufacturer for opentop containers to be positioned at their premises for loading with high-tech glass and thereafter carriage to the Far East on...
Failure to manifest correct freight
A liner agent Member in Australia was asked to quote for the freight payable on a number of containers of wool from Melbourne to Annaba, Algeria. A price of AUD 211 per 1000 kgs was quoted verbally, but subsequently AUD...
Misdescription of cargo capacity of vessel
A shipbroker Member acted for owners in the fixing of their ship to charterers. Unfortunately, when describing the cargo capacity of the ship, the figure of 119,995 cubic metres was given by the Member, whereas the correct...
Frozen lobster in general stow
A linger agent Member in Taiwan booked a 20 foot reefer container of lobster from Keelung to Melbourne. When the agent prepared the stowage plan for the port of Keelung the container of lobster was shown as part of the general...
Recovery of outstanding disbursements
A ship agent Member in Puerto Rico acted for charterers who operated a regular service between San Juan and Florida using a particular ship which called at San Juan two or three times each month. The charterers informed the...
Boxship or tweendecker?
A shipbroker Member had represented the same charterer for many years and the same broker had always handled the account. The business involved fixtures for cargoes of borax for which the charterers required ships with box...
Broker's failure to pass voyage instructions to correct party
The broker acted for a chartering company with offices in the USA and Europe, and the agreement between them required the broker to advise the US company of the status of the charter arrangements for all shipments to the...
Release of container of TV sets without original B/L
The German agent of a Far Eastern shipping line took delivery of four 40 foot containers, each holding 368 TV sets. Each container was covered by a separate B/L which showed 'C' as the shipper and consignee "To...
Nineteenth-century yacht sinks
A marine surveyor was instructed to determine the suitability for towage to a drydock of a steel hulled yacht built in the nineteenth century. The surveyor produced his preliminary report which stated that, although the...
Theft of loaded vehicles from road haulier's premises
An Italian freight forwarder was instructed by shippers to transport a consignment of copper pipes from a factory in Brescia to the load port, La Spezia, for onward shipment to Algiers. The forwarder instructed haulier 'A'...
Ship manager makes late payment of release P&I call
The former manager of a ship which had been sold received a debit note for the P&I release call. The terms of payment of the release call were that failure to pay by a specified date would result in a substantial...
Ship manager orders repairs in the name of the wrong company
Scandinavian ship managers were appointed as technical managers of a tanker owned by a K/S limited partnership. The management agreement was originally between the ship managers and the shipowning company but was...