As the global economic recession grows, so does the number of
vessel arrests by maritime creditors. We highlight below four
trends observed in the vessel arrest cases that are multiplying in
the U.S. Some of these trends are tied to the particularities
of the COVID-19 recession. Others resurface at every economic
downturn. It is particularly important for preferred ship
mortgagees to be aware, and beware, of these trends.
First, vendors may be more willing to move to arrest vessels
during these uncertain times. For example, a New York marina
has arrested multiple vessels docked on its premises for
non-payment of its fees. This development is significant
because the claims of some vendors may take priority over preferred
mortgages. Under U.S. law, maritime liens for necessaries
provided to vessels in the U.S. take priority over foreign
(i.e., non-U.S. flag) ship mortgages. Maritime liens
for necessaries provided outside the U.S. are generally subordinate
to
