China top court clarifies ship seizure, auction in admiralty dispute

The Supreme People's Court (SPC) on Saturday released judicial interpretation on the possession and auction of boats chartered without crew in admiralty disputes.

The explanation stipulated that admiralty claimants may apply for the sale of detained bareboats by auction to settle debt disputes with ship charterers.

Ship detention and auction will effectively protect the rights of claimants, said Luo Dongchuan with the SPC.

The 25-item judicial interpretation will be effective as of March 1, 2015.

Luo said China had grown into a maritime judicial power in the Asia-Pacific region. Its admiralty courts have detained 7,744 ships nationwide in the past three decades, 1,160 were foreign vessels.

Among the seized boats, 623 have been sold by auction, 123 of which belonging to foreign owners from more than 40 countries and regions.

The BAOSTEEL EMOTION, a ship owned by a Japanese firm, was seized last April at a port in Zhejiang Province. It was released after its owner paid 2.9 billion Japanese yen (28.5 million U.S. dollars) in delayed rent and losses to a Chinese firm.

"The detention successfully forced the ship owner to fulfill his obligations that had been ruled in a legally effective verdict and the case shows how the system works," Luo said.