Recently, Haikou Maritime Court lawfully arrested a giant tanker at Yangpu port upon the application of a French entity for pre-action preservation of maritime claims.

On 17 December 2018, a French bank made an application with the Yangpu tribunal of Haikou Maritime Court for pre-action preservation of maritime claims against the vessel “** Gem” owned by the respondent, a Hong Kong tanker company. It was learnt that the bank provided a loan of USD45.5 million to the respondent against the mortgage of the ship. However, during the performance of the loan contract, the respondent did not repay the principal and interest up to USD43.0 million. The applicant therefore requested Haikou Maritime Court to arrest the vessel. Considering that the parties were either a foreign entity and a Hong Kong entity and the ship to be arrested was of great value, to prevent any negative international impact that may arise, Yangpu tribunal examined the subject qualifications, primary evidence and counter guarantee strictly with reference to applicable international treaties and practices as well as domestic laws. Learning that the ship had not yet entered the Chinese territory, Yangpu tribunal told the applicant that the ship could only be arrested after she entered the jurisdiction area of Haikou Maritime Court, before which, as the Court suggested, the applicant might continue to supplement the primary evidence and counter guarantee that had been submitted.

As the ship finally entered the sea areas of Hainan province after a long journey at sea, Yangpu tribunal immediately reported the movement of the ship to the Chief Judge following the requirements of the major and sensitive case reporting system. The Chief Judge Xu Yahui took the case seriously and made assignments accordingly. He required the handling judges to observe the international treaties and practices and the principle of fairness in justice, and to protect the legitimate rights and interests of both parties. Yangpu tribunal swiftly worked out a detailed arrest plan and assigned personnel to conduct the job. On one hand, technology approaches were applied to verify the status of the ship and follow her movements. On the other hand, maritime and boarder control departments and ship forwarders were contacted to ensure that the ship was not allowed to depart ahead of schedule. Senior judges and the young judges with good command of foreign languages were called on to make preparations for the ship arrest.

On the morning of 4 January 2019 when the ship had just berthed at Yangpu terminal, Haikou Maritime Court issued the ruling and warrant for the arrest of the ship promptly. The handling judges and the young judges who could speak foreign languages embarked and arrested the ship, and required the respondent to provide a security of USD44.0 million. The judges spoke fluent English with the Master. Although the Master tried to reject the service of the legal instruments because he could not read Chinese, he finally accepted the instruments after the judges explained and translated the content of the ruling and warrant of arrest to him. The arrest of the ship was completed within 7 hours in a lawful, efficient and civil manner. Now the ship has been transferred to the custody of the respondent according to law, the movement of which was under close monitoring of the maritime and boarder control departments. The parties are now negotiating on the provision of security.

The USD60-million worth tanker “** Gem”, with a dead weight of 300-thousand tons, a length of more than 300 meters and a height of nearly 30 meters, has been the biggest ship ever arrested by Haikou Maritime Court since its inception. It is also rare among maritime courts nationwide to arrest such a giant tanker.