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Section: Page No.
Introduction 3
cont’d…
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Whilst care has been taken in the preparation of this guide, the matters referred to herein are subject to change and
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The contents of this booklet are descriptive only and should not be used as a substitute for legal advice.
Contents
Section: Page No.
…cont’d
Whilst care has been taken in the preparation of this guide, the matters referred to herein are subject to change and
no liability or responsibility is accepted by anyone for any errors or omissions which may exist in it. The contents of
this booklet are descriptive only and should not be used as a substitute for legal advice.
Maritime Liens
Introduction
Maritime liens are important. They are unusual in that they give rights against a vessel which survive a
sale of the ship and which enjoy priority ahead of registered mortgages, even though they need not be
registered themselves. They may give rights against a vessel even if the lien is created by a charterer or
manager of the vessel. The classification of certain claims as maritime liens varies around the world.
International Conventions have attempted, most recently in 1993, to impose a degree of uniformity.
Under English law by virtue of the decision of the Privy Council in the Halcyon Isle [1980] 1 Lloyd’s Rep.
325, and under some other laws such as those of Cyprus and South Africa, whether a claim is a maritime
lien is dictated by the law of the place of arrest. It is irrelevant whether the claimant has a maritime lien
under their local law. In the US and Canada the position is different and the law of the place of creation
of the lien can be significant.
The Conventions of 1926, 1967, and 1993 also deal with mortgages. However, the relevant provisions
relating to the international regulation of the creation, registration and deletion of registered mortgages
is outside the scope of this guide.
3
1926 Lien 1967 Lien 1993 Lien
English Law
Convention Convention Convention
1. Are Maritime Liens Yes. Scope of the law is, Yes. Yes. Yes.
conferring priority however, not completely
identified? certain.
2. Lien for master’s and Yes. Extends to cover sick Yes. “Claims arising out of Yes. “Sums due… in respect Yes. Art 4(1)(a).
crew wages? pay and paid leave and the contract of engagement of their employment on the
applies even if wages are of the master, crew..”. vessel”. Art 4(1)(i).
partly paid to a third party Art 2(2).
at the crew member’s
request. For master’s wages
“see section 41 Merchant
Shipping Act 1995 and The
“Ever Success” [1999] 1
Lloyd’s Rep 824” and for
crew’s wages see The
“Turiddu” [1999] 2 Lloyd’s
Rep 401.
3. Lien for repatriation Yes (Westport (No. 4) [1968] Not specifically mentioned. Not specifically mentioned. Yes. Art 4(1)(a).
Costs of crew? 2 Lloyds Rep. 559). Local courts may interpret Local courts may interpret
Convention to include such Convention to include such
costs. costs.
4. National social No, if compulsorily due Not specifically mentioned. Not specifically mentioned. Social insurance
insurance and under national law. Yes if Local courts may interpret Local courts may interpret contributions payable on
pension contributions payable under contract of Convention to include such Convention to include such behalf of crew members.
for crew? employment (Westport (No. costs. costs. Art 4(1)(a).
4), Acrux [1962] 1 Lloyds
Rep. 405). For pensions see
The Halcyon Skies [1977] 1
Q.B 14, [1976] 1 Lloyd’s Rep
461.
5. Lien for claim for Yes (The “Blessing” [1877] 3 Not specifically mentioned. Not specifically mentioned. Uncertain.
wrongful termination P.D) . N.B. Does not cover Local courts may interpret Local courts may interpret
of employment? severance pay (The Tacoma Convention to include such Convention to include such
City [1991] 1 Lloyd’s Rep. costs. costs.
330).
6. Lien for master’s Yes. Provided for benefit of Yes. Provided within scope No. No.
disbursements? vessel and within scope of of authority and “necessary
master’s (ostensible) for preservation of vessel or
authority. See section 41 continuation of voyage”. Art
Merchant Shipping Act 1995. 2(5).
Does not include
disbursements made on
account of charterers as
opposed to the shipowners,
see The “Castlegate” [1893]
A.C 38, but see The “Ever
Success” at pg 828.
7. Lien for salvage Yes. Unaffected by Yes. Art 2(3). Yes. Art 4(1)(v). Yes. Art 4(1)(c).
claims? International Convention on
Salvage 1989. Does not
include claims for towage.
8. Lien for vessel’s GA Not unless salvage claim. Yes. Art 2(3). Yes. Art 4(1)(v). No.
contribution? However, at common law
a shipowner has a
possessory lien over the
cargo for cargo owners’
proportion of GA which is
enforceable against the
(cont’d…) consignee of the cargo even
4
Maritime Liens
9. Lien for port dues? No. Yes. Art 2(1). Yes. Art 4(1)(ii). Port, canal, and other
waterway dues. Art4(1)(d).
10. Lien for pilotage dues? Although the question was Yes. Art 2(1). Yes. Art 4(1)(ii). Yes. Art4(1)(d).
left open in The
“Ambetelios” and The
“Cephalonia” [1923] P. 68, it
is likely that if the matter
were to be decided today
the court would decide that
no maritime lien existed,
the position of the pilot
being similar to that of a
supplier of necessaries or a
person performing towage
services”. See Meeson
“Admiralty Jurisdiction and
Practice” (2nd Ed) 2-097.
11. Lien for death Probable that damage lien Yes. Art 2(4). Yes. “Whether on land or on Yes. “Whether on land or on
and personal (see 12 below) extends to water, in direct connection water, in direct connection
injury claims? cover personal injury with the operation of the with the operation of the
providing the test under 12 vessel”. Art 4(1)(iii). vessel”. Art 4(1)(c).
below is satisfied claims but
may not cover all loss of life
claims. See The “Vera Cruz”
No 2 (1884) 9 P.D 96 which
concerned a claim by the
deceased executors for
injury done to the family.
12. Lien for damage Yes providing: Yes. Damage to vessels, Yes. “Claims against the Yes. Tort claims other than
claims/damage 1. the damage is caused by shore installations, owner, based on tort, and those for damage to cargo
done by ship something done by “indemnities for loss of or not capable of being based etc. carried on vessel. Art
(collisions etc)? those engaged in the damage to cargo or on contract” for loss or 4(1)(e).
navigation or baggage”. Art 2(4). damage to property. Art 4
management of the (1)(iv).
ship in a physical sense,
2. the ship is the actual or
noxious instrument by
which the damage is
done and
3. the damage is sustained
by a person or property
external to the ship. See
The “Rama” [1996] 2
Lloyd’s Rep 281 at 293.”
Damage done by a ship
does not include a claim
for personal injuries
after falling into the
hold of a ship (The
“Theta” [1894] P. 280)
or a claim for damage
to cargo on board the
carrying ship (The
“Victorea” (1887) 12
P.D 105)”.
Damage to other vessels,
shore installations, or even
cargo external to the ship
(The Rama [1996] 2 Lloyd’s
Rep. 281).
5
1926 Lien 1967 Lien 1993 Lien
English Law
Convention Convention Convention
13. Lien for oil The damage lien extends to No. May be covered by No. May be covered by Specifically excluded if
pollution? any claim in respect of damage lien depending on damage lien depending on damage covered by
liability incurred under local court’s interpretation. local court’s interpretation. international Convention or
chapter III of Part VI of the national law providing for
Merchant Shipping Act 1995 strict liability and
and any liability falling on compulsory insurance or
the International Oil other means of securing
Pollution Compensation claims. Art 4(2)(a).
Fund or International Oil
Compensation Fund 1984
under Chapter IV of part IV
of the Merchant Shipping
Act 1995.
14. Lien for bottomry Yes but redundant. No. No. No.
and respondentia?
15. Lien for No (The Heinrich Bjorn Yes. Art 2(5). See 6 above. No. No.
“necessaries”? (1886) 11 App. Cas. 270).
16. Maritime Lien for No (Halcyon Isle [1980] 2 No. No. No.
ship repairers? Lloyd’s Rep. 325) cf
(see 30 below) e.g. US law.
17. Other liens? Class may be more Law costs due to the state Wreck removal. Art 4(1) (v). Only those permitted by
extensive. It has been and expenses incurred in national law. See 29 below.
suggested that additional preserving the vessel.
maritime liens arise by Harbour dues and public
implication out of statutory taxes. Art 2(1), tonnage dues
provisions, namely i) fees and the costs of watching
and expenses of the receiver and preservation from the
of a wreck (see s249 MSA time of the entry of the vessel
1995) and ii) damage into the last port.
sustained by the owner or
occupier of lands by means
of which assistance is
tendered to a wreck (see
s234(5) and 234(6) MSA
1995. These provisions
essentially provide that
these amounts shall be
recoverable in the same
manner as salvage.
See also s250(3) MSA
1995 which provides for the
remuneration of officers or
men of the coastguard
service in watching or
protecting shipwrecked
property.
19. Lien for claims against Yes. Yes. Art 13. Except in cases Yes. Art 4 (1) and Art 7 (1). Yes. Claims against “owner,
Demise/bareboat where owner has been demise charterer, manager
charterers disposed by illegal act or or operator”. Art 4.
not bona fide claimant.
20. Lien for claims Possible where charterers Yes. Art 13. Except in cases Yes. Art 4 (1) and Art 7 (1). Not unless “manager or
against time/voyage create lien. where owner has been operator”.
charterers? disposed by illegal act or
not bona fide claimant.
6
Maritime Liens
21. Lien for claims Not unless interested Yes. Art 13. Except in cases Yes. Art 4 (1) and Art 7 (1). Yes.
against managers? in vessel. where owner has been
disposed by illegal act or
not bona fide claimant.
22. Can maritime lien be A maritime lienee who No specific provision. No specific provision. No specific provision.
enforced against a utilises alternative sister
sister ship? ship proceedings enjoys no
higher right or priority that
that enjoyed by a statutory
lienee (See The “Leoborg”
(No 2) [1964] 1 Lloyd’s Rep
380.)
23. Maritime lien For salvage claims. No. But effective against GA No. No.
against cargo? contributions due to owner.
Art4(2).
24. Maritime lien Yes where freight earned at Yes. On freight in owner’s No. No.
against freight? date lien created. possession, for the voyage
during which claim giving
rise to lien arises or any
voyage made during the
subsistence of the same
contract of engagement for
crew wages claims.
Arts 10, 2 and 4.
25. Priority of Liens (NB the rules below apply 1. costs of preserving 1. immediately arising 1. immediately arising
(ranking in order unless there is any special vessel and sale costs. salvage and GA claims. salvage claims.
of priority) reason why a maritime lien 2. immediately arising 2. crew wages etc. 2. crew wages etc.
claimant should be salvage and GA claims. 3. port etc. dues. 3. death and personal
subordinated, see The 3. masters and crew wages. 4. death and personal injury claims.
“Ruta” [2000] 1 Lloyd’s Rep 4. salvage and GA claims. injury claims. 4. other salvage claims.
359.) 5. damage and personal 5. tort/collision claims. 5. port etc. dues
injury claims. 6. other salvage claims. 6. tort/collision claims.
1. Salvage 6. master’s disbursements 7. shiprepairer’s lien 7. registered mortgages.
2. Damage or necessaries. (see below). 8. national maritime liens
3. Crew wages and 7. registered mortgages. 8. registered mortgages. (see 15 below). Art 5(2),
Master’s wages 8. other claims. 9. national maritime liens. Art 6.
4. Master disbursements 10. other claims.
5. Bottomry (N.B. Apart from 2. claims Art 5(2), Art 6(1),(2). (N.B. 7 is not a maritime
(now obscelete) arising in last voyage rank lien).
6. Mortgages ahead of earlier voyage (N.B. 8 and 10 are not
7. Statutory liens claims. Arts 5 and 6. maritime liens).
(6 and 7 are not maritime N.B. II, 7 and 8 are not
liens) maritime liens).
7
1926 Lien 1967 Lien 1993 Lien
English Law
Convention Convention Convention
(…cont’d) is subordinate to a
later damage lien,
another later salvage
lien or a later wages
lien if that lien has
preserved the res.
iii) Crew wages no longer
have priority over
master’s wages. They
rank pari passu, see
The Royal Wells [1985]
QB 86 and The “Ever
Success” [1999] 1
Lloyd’s Rep 824 at 828.
iv) A bottomry lien is
wholly subordinate to
both prior and later
wages liens and damage
liens and subordinate
to later salvage liens,
all subject to limited
exceptions.
v) The possessory lien is
subordinate to all
maritime liens which
attach prior to the
assumption of
possession, but takes
priority over all such
liens which accrue
subsequent to
the assumption of
possession.
26. Do Liens rank ahead Yes. Yes. See 25 above. Art 3. Yes. See 25 above. Art 5(1). Yes. See 25 above. Art 5(2).
of mortgages?
27. Ranking of liens in Usually pari passu except Pari passu. Art 5. Except Apart from salvage and GA, Apart from certain salvage
same category. Pari salvage liens. The last salvage and claims resulting claims rank pari passu. claims, rank pari passu.
passu, or priority salvage lien in time prevails from contracts or acts of Art 5(3). Art 5(3).
based on date over earlier salvage liens master (i.e. disbursments/
of creation? (see The “Veritas” [1901] P. necessaries).
304).
28. Special ranking for Last salvage lien has priority Last salvage lien has priority Yes. Most recent salvage or Yes. Most recent salvage
salvage claims? over earlier liens. May be over earlier liens. GA claims rank first. Art 5(4). claims rank first. Art 5(4).
subject to later damage
claim or later wages claim if
this has preserved the res.
29. Additional liens N/A. Not excluded. “Nothing.. Yes. Art 6(1). Yes. However claims will
permitted under shall be deemed to affect… cease to be liens after 6
national law? modes of procedure or months (unless vessel
methods of execution arrested within this period),
authorized by national law”. or 60 days after a bona fide
Art 16. sale. Art 6.
30. Possessory lien Yes. No specific provision. Yes. “May” rank ahead of States have power to create
for shiprepairer registered mortgages but possessory lien. Lien lost
or shipbuilder? lost when vessel ceases to when vessel ceases to be in
be in possession of yard. Art possession of yard. Art 7.
6.
8
Maritime Liens
31. Do maritime liens Yes, even where purchaser is Yes. “Claims secured by a Yes. Art 7. Yes. Art 8.
survive sale of a bona fide purchaser for lien follow the vessel into
vessel/change of value without notice of the whatever hands it may pass’
ownership? claim (see The “Bold Art 8, but see 33 below
Buccleugh” (1851) 7 Moo PC
257) the lien.
32. Do maritime liens Yes. Logically, yes but not Yes. Art 7. Yes. Art 8.
survive change of specifically addressed. Art 8.
flag/registration?
33. Do maritime liens No (Cerro Colorado [1993] “Sale shall extinguish a lien No. Art 11(3). No. Art 12. Provided vessels
survive the judicial 1 Lloyds Rep. 58). Other only if accompanied by in jurisdiction and sale has
sale of the vessel? circumstances where a formalities of publicity laid been effected in accordance
maritime lien will be down by national law”. Art with the law of the state
extinguished: 9. and Article 11 and 12.
34. Priority of claims (NB the rules below apply 1. costs of preserving 1. costs of arrest and sale. 1. costs of arrest and
against proceeds of unless there is any special vessel and sale costs. 2. immediately arising detention which
judicial sale reason why a maritime lien 2. immediately arising salvage and GA claims. includes costs for the
claimant should be salvage and GA claims. 3. crew wages etc. upkeep of the vessel and
subordinated, see The 3. master’s and crew’s 4. port etc. dues. crew as well as wages
“Ruta” [2000] 1 Lloyd’s Rep wages. 5. death and personal and other sums referred
359.) 4. salvage and GA claims. injury claims. to in Art 4 (1) (a)
5. damage and personal 6. tort/collision claims. incurred from the time
1. Costs of detention injury claims. 7. other salvage claims. of arrest Art 12 (2).
2. Arresting party’s costs 6. master’s disbursements 8. shiprepairers lien 2. wreck removal costs
3. Salvage or necessaries. (see below). (if provided for by
4. Damage 7. registered mortgages. 9. registered mortgages. national law). Art 12 (3)
5. Crew wages and 8. other claims. 10. national maritime liens. 3. immediately arising
Master’s wages N.B. Apart from 2 claims 11. other claims. salvage claims.
6. Master disbursements arising in last voyage rank 12. owner’s interest. 4. crew wages etc.
7. Bottomry ahead of earlier voyage Art 11(2). 5. death and personal
(now obsolete) claims. Arts 5 and 6. injury claims.
8. Mortgages 6. other salvage claims.
9. Statutory liens 7. port etc. dues.
10. Shipowner’s interest 8. tort/collision claims.
(6 and 7 are not 7. mortgages.
maritime liens) 9. national maritime liens.
10. other claims.
However there are a 11. shipowner’s interest.
number of more detailed Art 12.
rules regarding their inter-
relationships:
(…cont’d) i) The damage lien stands
9
1926 Lien 1967 Lien 1993 Lien
English Law
Convention Convention Convention
35. Can maritime liens Probably not. It is certain Claims must be bona fide Yes. Provided simultaneous Yes. Mere assignment of
be assigned by that the underlying claim but no specific provision. assignment of underlying claim or subrogation of
a claimant? can be assigned. Transfer of Not excluded. Will depend claim effected. Art 9. rights sufficient to transfer
the status of a maritime lien on national law. lien. Art 10.
is less certain. “The “Wasp”
(1867) LR 1 A&E 367 is not
authority for the
proposition that the right of
a maritime lien would be
assigned with a claim giving
rise to a maritime lien” See
also The “Sparti” [2000] 2
Lloyd’s Rep 618 (HK).
10
Maritime Liens
36. Can a maritime lien Yes under s79 Marine Claims must be bona fide Yes. Provided simultaneous Yes. Art 10.
pass to an insurer Insurance Act 1906. but no specific provision. subrogation of underlying
by subrogation? Not excluded. Will depend claim effected. Art 9.
on national law.
38. When does the N/A. Maritime liens are If action taken in Applies to “all sea-going Sea-going vessels registered
Convention apply? treated under English law as contracting state provided vessels registered in a in contracting state and
being determined by the vessel is registered in a contracting state or a non- other vessels provided
legal system (lex fori) contracting state, or if local contracting state”. Art 12. subject to states jurisdiction.
applicable in the place the law applies it to other Art 13.
lien is to be enforced in rem vessels. Art 14.
(Halcyon Isle [1980] 2
Lloyd’s Rep 325).
39. Does the Owner Yes. Under the 1976 Acknowledged by Arts 4 and Yes. Art 14. Yes. Provided applicable
have a right to Limitation Convention 7. limitation convention and
limit liability? (Merchant Shipping Act 1979). claim covered. Art 15.
40. How long does a Subject to appropriate Subject to national law, liens Extinguished after one year Extinguished after 1 year
maritime lien limitation period for claim. cease to exist at the from the time the claim unless vessel is arrested and
survive? E.g. 2 years for collision expiration of one year, or 6 arises unless vessel has been sold in the meantime. Time
damage under s190 MSA months for supplies made to arrested in meantime, and runs from date claim arises,
1995, 6 years for claims master. Can extend period up the arrest leads to a judicial or discharge of seaman for
for crew’s wages and to maximum of 3 years if sale. crew claim. Art 9.
master’s wages and vessel does not call at port Art 8.
disbursements under in claimant’s territory inside
the Limitation Act 1980. a year. Art 9.
41. Does a maritime lien No. See circumstances No. Expressly excluded by Not expressly prohibited. No. Art 10. “Claimants may
give rights against where a maritime lien is Art 4. not be subrogated to
the ship’s insurers extinguished above. Only compensation payable to the
(if e.g. vessel is rights enforceable would owner of the vessel under
actual total loss)? arise under Third Party an insurance contract”.
(Rights Against Insurers) Act
1930.
42. Entry into force N/A In force. In force. 6 months after 10 countries
ratify or accede
Art 19 (1).
11
Contracting parties to the
1926, 1967 and 1993 conventions
Algeria Yes
Argentina Yes
Belgium Yes
Brazil Yes
Cuba Yes
Denmark1 R2
Estonia Yes A
Finland1
France Yes
Haiti Yes
Hungary Yes
Iran Yes
Italy Yes
Lebanon Yes
Luxembourg Yes
Madagascar Yes
Monaco Yes A
Morocco A2
Norway1 R2
Poland Yes
Portugal Yes
Romania Yes
Russian Federation A
Spain Yes A
Switzerland
Sweden1 R2
12
Maritime Liens
Syria A
Turkey Yes
Tunisia R
Ukraine A
Uruguay Yes
Vanuatu A A
Zaire Yes
R – Ratified A – Acceded
1 Denmark, Finland, Norway and Sweden all denounced the 1926 Convention on 1st March 1966. All
except Finland have now ratified the 1967 Convention.
The 1967 Convention will come in to force three months after five States have deposited instruments of
ratification. Although there are currently six instruments of ratification/accession deposited, four of
these are subject to reservations. The treaty does not specifically say that it requires deposit without
reservation although this is the case for some treaties. Norway and Sweden have made reservation
stating that they intend to legislate, Denmark has made reservation in respect of applicability to the
Pharoe Islands and Morocco has stated that Article 15 of the Convention will not apply to it.
The 1993 Convention will come into force six months after ten States have expressed their consent to be
bound.
13
Notes
14
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