On 1 March 2019, Haikou Maritime Court held a press conference to announce the entertainment of a case concerning a dispute in relation to a ship mortgage contract in which a foreign party was involved.

BNP Paribas had applied to Haikou Maritime Court for pre-trial maritime attachment on the grounds that Brightoil Gem Tanker Ltd. had borrowed from it and failed to repay on time a loan of USD 40 million odd, and requested to arrest the vessel “Brightoil Gem” which was owned by Brightoil Gem Tanker Ltd. and mortgaged for the loan. BNP Paribas provided security along with its application. Upon receipt of the application, Haikou Maritime Court promptly started to verify the vessel’s particulars and request the maritime safety administration, entry and exit inspection administration and other competent authorities to track the vessel by information means, making sure that the court would be informed as soon as the vessel entered any port within the court’s jurisdiction. In addition, to facilitate communication with the foreign crew on the vessel and enhance the efficiency of document service, Haikou Maritime Court arranged for judges with English proficiency to board the vessel. On 4 January 2019, Haikou Maritime Court ruled to grant the pre-trial maritime attachment application made by BNP Paribas and ordered to arrest the vessel.

On the same day, the vessel called at Yangpu Port and the court immediately arrested her. At the moment, the vessel is detained at No. 1 Anchorage of Yangpu Port. The vessel is 319 metres in length, 60 metres in width, and 27.8 metres in depth. She has a net tonnage of 110,773, a gross tonnage of 161,296, and a loading capacity of up to 300,000 tons odd. With an estimated value of approximately USD 60 million some, she is the vessel of the greatest tonnage and highest value that has been arrested by Haikou Maritime Court since its founding.

According to the agreement between the litigants, BNP Paribas could opt to refer the dispute to a court in the UK, Singapore or Hong Kong. However, the bank indicated through its agent that their concerns about Chinese maritime justice had been dispelled by Haikou Maritime Court’s impartial judicial manner and professional judicial skills in arresting the vessel. They believed the case would be tried fairly by Haikou Maritime Court. On 28 January 2019, BNP Paribas brought an action before the court, requesting the court to order Brightoil Gem Tanker Ltd. to repay a sum of CNY 270 million some for the principle of and interest on the loan plus transaction fees and other costs. Haikou Maritime Court entertained the case on the same day and set to try the case in an open hearing on 26 March. At this stage, BNP Paribas has in compliance with Chinese law applied to the court for auctioning off the vessel during the litigation. The case is now under further trial.