Arrest of vessel: security or more than security?

Kallang Shipping SA Panama v AXA Assurances Senegal, Comptoir Commercial Mandiaye Ndiaya (The Kallang) [2008] EWHC 2761(Comm) (QBD) AND Sotrade Denizcilik Sanayi ve Ticaret AS v Amadou LO, Tiger Denrees Senegal, Axa Assurance Senegal, Axa France Assurance SA (The Duden) [2008] EWHC 2762 (Comm) (QBD)

Melis Özdel, postgraduate researcher, University of Southampton

After the arrest of a vessel, a hive of activity ensues as owners strive to agree upon the type and wording of the letter of indemnity with the cargo receivers for the release of the vessel within the shortest possible time. Having seen the owners under this significant financial pressure, arrest could be perceived by the cargo receivers as more than just a conservatory measure. Nevertheless, it has now been made clear that arrest cannot be used to force owners to avoid exclusive jurisdiction or arbitration clauses in their contracts of carriage.