Freight claim and preventing unlawful ship arrest in Egypt

Interlegal client – a Shipowner whose vessel was a subject to Voyage Charter for cargo transportation by sea from Giurgiulesti, Moldova, to Damietta, Egypt, – applied for legal assistance. Having already arrived at the port of destination, the vessel became a hostage to the situation, since freight still remained unpaid.

Case specification was that, despite unpaid freight, the Shipowner issued bills of lading marked Freight Prepaid, which at the moment of vessel arrival had already been handed over to the Consignee and showed its absolute right on the cargo. In view of such circumstances, having found out the Shipowner’s intention to suspend unloading, the Consignee threatened ship arrest and made a counterclaim for damages in the amount exceeding 600 thousand USD, which was in no way unacceptable to the client.

Therefore, the Client’s main goal was to avoid unlawful ship arrest and to maintain control over the cargo in order to receive freight in full.

In the process of claims handling, Interlegal team granted professional legal assistance, including but not limited to:

- detailed analysis of documents and correspondence between all parties to the dispute;

- step-by-step plan of further actions and recommendations for the Client aimed to defends its rights and interests;

- drafting and proper execution of Notice on Lien on cargo;

- drafting the corresponding Letter of Claim addressed to the Charterer and the Consignee;

- regular and prompt consulting the Client upon all possible issues on the merits.

Given that the vessel stayed in Egypt at the moment when dispute arose, it was also extremely important to comply with the Egyptian legislation in order to properly exercise the lien on cargo and to prevent ship arrest. Therefore, our Egyptian colleagues were involved in case proceedings, which made it possible to quickly and efficiently provide all the necessary legal support to the Client on site.

It should be noted that the dispute settlement process was quite complicated and required for urgent decisions and actions. Due to harmonious and coordinated Interlegal teamwork featuring associated office in Egypt, the Client received freight in full, avoided ship arrest and left the port of discharge without unnecessary losses and expenses.

Due to well-thought-out strategy and professionalism of Interlegal experts, our Client was able to achieve the set goal quickly and efficiently.

Interlegal law team led the case: associate attorney Mykola Kozachenko, junior lawyers Diana Mykhailova and Danylo Mykhailovskyi, managed by partner Alexey Remeslo