One unfortunate effect of the downturn is that there are more ships being arrested in ports as vessel operators become insolvent and different parties - from marine suppliers to ship financiers - look to secure claims against debtors'' assets.
Widely publicised recently was the arrest of multiple Russian vessels in Hong Kong by DVB bank. Another Russian vessel was recently under arrest in the Port of Liverpool for over six months and had to be sold by the Admiralty Court to satisfy creditors' claims.
While not hitting epidemic proportions Mike Burns of Weightmans points out there is certainly an increasing global trend. This can present a headache for ports and harbours with detained vessels taking up valuable space, although there is some consolation in ports' costs/tariffs (which may be substantial) usually being given first priority in the pecking order of payment in these claims.
And on the subject of tying up space, Mr Burns says that one issue ports and their insurers should heed in the current climate of multiple ship lay ups is their liability exposure in terms of long term laid up ("cold") ships. "Unmanned vessels could present a potential hazard to port infrastructure and access as 'runaway' ships do occasionally break moorings in winter months," he says.
Another feature of this risk exposure is where ports permit or undertake lay ups within their jurisdiction and whether the port fully recognises the increased legal duties and insurable risks they will be undertaking.
"The liability profile for ports is certainly under the renewed scrutiny of marine insurers during this downturn," says Mr Burns. So if a few port managers don't exactly sleep easy during a storm, there's now another problem to keep them awake.
