Ship arrests on the up

South Africa needs more
transhipment options,
especially out of the port
of Durban, to ensure cargo
owners are not negatively
impacted by the global rise in
vessel arrests due to bad debts.
“The global economic doom
and gloom has seen a number
of shipping line business
rescues and liquidations of
late,” said Carol Holness, senior
associate at legal company,
Norton Rose Fulbright,
speaking at the Special Interest
Group (SIG) Transport Forum
held in Durban last week.
“Unfortunately, many
vessels whose companies are in
liquidation or business rescue
are still carrying cargo and
docking at ports around the
globe where they face the strong
possibility of being arrested at
the port,” she pointed out.
The cargo sometimes stayed
on that vessel from six months
to up to 18 months – which had
huge financial implications,
said Holness.
This means local suppliers
not being paid, bunker
suppliers not being paid and
cargo owners not meeting their
clients’ delivery demands.
“South African shippers
should look at risk mitigation
safeguards around this,”
Holness commented.