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ARTICLE · 28 SEPTEMBER 2025

The Yangze 22: To release or not to release

Holding Redlich
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Federal Court of Australia has provided important guidance on the wording of a Letter of Undertaking (LOU) to secure the release a ship from arrest.

AustraliaTransport
Nathan Cecil
Nathan Cecil
Michael Tatham
Michael Tatham
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The Federal Court of Australia has provided important guidance on the wording of a Letter of Undertaking (LOU) to secure the release a ship from arrest.

In Mitsui O.S.K. Lines Ltd v The Ship: Yangze 22 [2025] FCA 563, delivered on 29 May 2025, the Court dismissed an application by the defendant, Yangze 22 (Owners), to release the ship. The application was made on the basis that sufficient and reasonable security had been provided to the plaintiff, Mitsui O.S.K.Lines, in an LOU issued by an International Group P&I Club. The decision provides much needed guidance on a topic not previously entertained by Courts, being the wording of the LOU proffered to release the ship from arrest.

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