Cargo Claims: The Essential Guide
| Cargo Claims: The Essential Guide, 1st edition (c) 2026 |
Page 102
CHAPTER 12
Security for cargo claims and P&I club letters of undertaking
12.1 Cargo claims are frequently secured by a P&I club either as the result of an arrest of the ship or, more commonly, by agreement to avoid an arrest. The provision of security reduces the risk for cargo claimants that, once they obtain a judgment or award many years after the events giving rise to the cargo claim occur, they are unable to enforce that judgment or award against the carrier.