Ship Agents’ Disbursements and the Right of Arrest

Paul Smith, founder of Paul Smith & Co and author of ‘The Ship Arrest Handbook’ explains how ship agents frequently find themselves in a position in which they are owed unpaid fees and disbursements from a company or ship to which they have provided agency services. Remedies are of course available but the only certain way of avoiding the risk of a bad debt is for the agent to obtain funds prior to the ship’s arrival or, at the very least, before it sails.

Although it is appreciated that there may be occasions when, for a very good reason, funds do not arrive in time or unforeseen expenses arise at very short notice, nevertheless agents should always try to ensure that they receive advance funds. On this subject it is worth quoting the words of the Baltic and International Maritime Council (BIMCO) who, in their publication Check Before Fixing, state: