Shipbreakers besieged by cargo claims from former charterers

Image: CC.
Image: CC.

Spate of beached tanker arrests in Pakistan and Bangladesh as recyclers hit by cargo claims.


Ship recyclers in Pakistan and Bangladesh have been hit by a spate of cargo claims from former charterers, with at least four vessels arrested on the Sub Continent.

The claims have come from Middle East-based oil traders who are using the Pakistani and Bangladeshi legal systems to obtain arrest warrants against dead ships that have already been beached.

Recyclers have been put in the position of owning ships against which they stand liable for expensive legal claims and of having work-stoppage orders issued against them, effectively tying up yard space for months on end.

Lawyers have told the recyclers that they should insist on revised clauses to their non-encumbrance certificates that stipulate that even if a vessel is arrested post-delivery, the sellers will indemnify the buyers and provide security against litigation by third parties.

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