A Guide to Ship Arrest for Maritime Claims and Security Calculation

Maritime trade, by its very nature, is a fast-paced sector with international dynamics. One of the most effective tools for creditors to protect their rights in legal disputes arising within this dynamic structure is the precautionary arrest of a ship and the prohibition of the ship from sailing. However, this process is quite different from general execution law and is subject to strict formal requirements and strict deadlines. The complexity of the process and the strictness of procedural rules may rightfully cause concern; but with the right steps and an expert approach, it is possible to secure your claims.

In this guide, prepared in light of our experience in maritime law as Esenyel Partners, we detail for which claims ship arrest can be requested, how the 10,000 SDR security calculation is made, and the critical time limits during the execution phase.

The Concept of Maritime Claim: Under Which Circumstances Can a Ship Be Arrested?

The basic condition for a ship to be precautionary arrested is that the claim in question is not an ordinary commercial claim, but a “maritime claim” explicitly defined in the law.

• Out-of-Scope Situations: It is not legally possible to prohibit a ship from sailing for personal debts or unconnected commercial loans that do not qualify as maritime claims.
• Numerus Clausus Principle: Article 1352 of the Turkish Commercial Code (TCC) No. 6102 has listed the situations that are considered maritime claims in a limited (numerus clausus) manner.

Competent and Authorized Courts for Precautionary Ship Arrest

In disputes arising from maritime trade matters, the jurisdiction of the court is determined by the flag and the actual status of the ship. The competent court is always the Commercial Court of First Instance.

• Turkish Flagged Ships: The court where the ship is registered in the registry or where it is actually located has jurisdiction.
• Foreign Flagged Ships: Transit passage does not grant jurisdiction. It is mandatory to apply to the court of the place where the ship drops anchor, is moored to a buoy, berths, or is put on a slipway.

Security Regime in Ship Arrest and the 10,000 SDR Calculation

The most curious part of the precautionary ship arrest process, which sharply separates it from general law, is the security system. Courts request a security from the creditor to secure the damages the shipowner may suffer due to an unjustified arrest.

What is SDR and How is the Security Determined?

While in general attachment methods, a proportional security (e.g., 10% or 15%) of the claim is required, a fixed security system is applied in ship arrests.

• Fixed Security Amount: Pursuant to TCC Article 1363, regardless of the amount of the claim, the requesting party must provide a security of 10,000 SDR (Special Drawing Rights).
• Calculation Method: SDR is an international reserve currency determined by the IMF. The calculation is made over the current SDR/TRY exchange rate announced by the Central Bank of the Republic of Turkey (CBRT) on the day the precautionary arrest lawsuit is filed, and the resulting amount is deposited into the court’s cash desk.

Security Exception for Seafarer Claims

The legislator has introduced an important exception to protect seafarers who are in a weak position in legal processes. There is no obligation to deposit security in precautionary arrest processes initiated by seafarers for their wage claims (salary, severance pay, notice pay, repatriation expenses).

Execution Process: Critical Deadlines in Ship Arrest

Obtaining the decision from the court is only the first step of the process. The execution and implementation process, which begins after the decision to ban the ship from sailing is made, is subject to very strict deadlines where even seconds matter.

• Actual Arrest and Notification: The execution office immediately contacts the Port Authority and the Coast Guard Command to prevent the departure of the ship.
• 1-Month Supplementary Action Period: In order for the precautionary arrest to become final, pursuant to TCC Art. 1376, it is mandatory to file the main lawsuit or initiate execution proceedings within 1 month from the execution of the decision.
• The 3 Working Days Rule: Following the issuance of the court decision, the execution of the decision (actual detention of the ship) must be requested by applying to the competent execution office within 3 working days at the latest. If this deadline is missed, the decision automatically drops.

Comparison of General Precautionary Attachment and Precautionary Ship Arrest

You can clearly see the fundamental differences between the two different legal regimes in the table below:

Expert Support in Maritime Law with Esenyel Partners

The collection of maritime claims and the precautionary ship arrest process is a highly technical field where minor procedural errors can lead to major commercial losses and irreparable damages. The international dimension of the process, security calculations made over exchange rates, and strict time limits make expert legal support mandatory. To get more detailed information on the subject, to initiate the collection process of your maritime claims, or to resolve your disputes, you can contact the expert maritime law attorneys of Esenyel Partners.