catalogue

1. Chen Zhen and Chen Chun's Application for Compulsory Execution of the Arrest of Ships in the "Zhongwei Case"

2. Zhoushan Haili Ocean Fisheries Co., Ltd. applied for the "Xuemansi" ship case

3. Oleg and other foreign crew members applied for the arrest of the "Misham" ship case

4. Case of Shanghai Maritime Court Seizing and Aucting the "Futong 09" Ship

5. The "Three Lakes Sapphire" Series Detention Case

6. Danish Oil Supply Co., Ltd. applied for the seizure of the "Starlight" ship case

7. The German Shipping Loan Bank applied for the seizure and auction of the "Amin" ship case

8. Case of Minmetals International Freight Co., Ltd. Applying for Seizure of the "Haizhi" Ship

9. Panama Tianyu Shipping Co., Ltd. applied for the seizure of "Shanni 1" case

10. Application for Seizure of the "L-710" Round by Ickleps Property Company in the Marshall Islands

Case 1

Chen Zhen and Chen Chun's Application for Compulsory Execution of the Arrest of Ships in the "Zhongwei Case"

（1） Basic facts of the case

In 1936, Zhongwei Shipping Company leased all of its "SF Express" and "New Taiping" ships to Datong Shipping Co., Ltd. During the lease period, two ships were "detained" by the Japanese Navy and later handed over to Datong Shipping Co., Ltd. for continued operation until the two ships sank. Zhongwei Shipping Company later claimed two losses from the Japanese government through political, diplomatic, and judicial channels, but failed to do so. In December 1988, the plaintiffs Zhongwei Shipping Company, Chen Zhen, and Chen Chun filed a lawsuit in the Shanghai Maritime Court, demanding that the defendant Japan Shipping Co., Ltd. (later known as Datong Shipping Co., Ltd.) pay rent and compensate for the losses. During the litigation period, Japan Shipping Corporation was changed to Mitsui Corporation.

On December 7, 2007, the Shanghai Maritime Court ruled that the defendant, Mitsui Corporation, paid and compensated the plaintiffs Chen Zhen and Chen Chun for the total amount of Japanese yen 2916477260.80 in respect of ship rent and interest, ship operation losses and interest, and ship losses and interest. Both the plaintiff and the defendant are dissatisfied and file an appeal. On August 6, 2010, the Shanghai Higher People's Court made a final judgment, rejecting the appeal and upholding the original judgment. After the judgment came into effect, Merchant Shipping Mitsui Co., Ltd. refused to actively fulfill the compensation obligations determined by the effective judgment.

（2） Judgment results

On April 19, 2014, the Shanghai Maritime Court, in the enforcement proceedings of this case, lawfully detained the "BAOSTEEL EMOTION" vessel owned by the executed merchant ship Mitsui Co., Ltd., which was moored at Majishan Port in Shengsi, Zhejiang Province, China. Four days later, the merchant ship Mitsui Co., Ltd. paid the judgment principal of 2916477260.80 yen in accordance with the requirements of the Shanghai Maritime Court's "Notice of Performance within a Time Limit"; 1、 Second instance case acceptance fees and application execution fees; At the same time, cash guarantee was provided for the interest on delayed debt performance. On April 24th, the Shanghai Maritime Court lifted the seizure of the "Baoyun" ship in accordance with the law.

（3） Typical significance

This case, through the seizure of ships, prompted Japanese merchant ship Mitsui Co., Ltd. to fulfill the effective judgment of the Chinese court, marking a successful end to the 26 year "Zhongwei Case", greatly safeguarding the authority of China's law and justice, causing strong reactions in the international shipping and maritime judicial sectors, becoming the focus of media coverage at home and abroad, and establishing a good image of China's rule of law.

Case 2

Zhoushan Haili Ocean Fisheries Co., Ltd. applied for the "Xuemansi" ship case

（1） Basic facts of the case

The "SNOWMASS" ship is a Russian ocean shipping vessel, originally registered as Eastwind SHIPPING AGENCIES SA, and registered as SMART SHIPPING AGENCY LTD. In November 2009, the ship carried a batch of frozen squid from the southwestern waters of the Atlantic Ocean off Argentina and arrived at Zhoushan Port, causing the goods to deteriorate and be damaged. On December 29, 2009, the shippers Shanghai Heshun Fishery Co., Ltd., Zhoushan Haili Ocean Fishery Co., Ltd., and Zhoushan New Geely Ocean Fishery Co., Ltd. applied to the Ningbo Maritime Court for the seizure of the "Xuemansi" ship anchored at the Mashi anchorage in Zhoushan Port, requesting the shipowner to provide a guarantee of 3 million yuan, citing the serious damage to the frozen squid they had shipped due to the failure of the ship's refrigeration equipment.

（2） Judgment results

After examination, the Ningbo Maritime Court ruled in accordance with the law to seize the "Xuemansi" ship and ordered the owner of the "Xuemansi" ship to provide the court with 3 million yuan or other reliable guarantees. The shipowner of the ship has been declared bankrupt and taken over by the bankruptcy administrator. Due to being busy with bankruptcy affairs and unable to attend to the disputes involved, the foreign crew member is stranded and helpless. One foreign crew member died due to illness during the detention period. In response to this, the Ningbo Maritime Court has taken the following measures: first, arrange for the accommodation and food of crew members during the detention period, and coordinate with the shipping company to take charge of the custody; Secondly, advance the repatriation fee for the crew, and immediately arrange for the crew to return home after completing the handover of the ship; Thirdly, notify the plaintiff to provide sufficient additional guarantees; Fourthly, by auctioning the ship in accordance with the law, priority will be given to the repatriation expenses, including medical expenses for crew members and cremation expenses, among the ship's auction proceeds.

（3） Typical significance

In the case of shipowners abandoning the ship, there is no clear legal provision in China on how to properly handle matters related to the return of foreign crew members, especially the remains of crew members. The Ningbo Maritime Court upholds the spirit of international humanitarian law, arranges accommodation and meals for foreign crew members during their detention period when they are stranded and helpless, timely pays repatriation fees, and coordinates with the shipping agency to arrange for crew members to return home smoothly. The inclusion of medical expenses, funeral home storage fees, and cremation fees advanced by government departments for foreign crew members in crew repatriation expenses, taking into account the interests of both domestic and foreign parties, has facilitated the rapid and proper resolution of this foreign-related incident, showcasing the humanistic sentiment of China's courts in serving the people and establishing a good international image.

Case 3

Oleg and other foreign crew members applied for the arrest of the "Misham" ship

（1） Basic facts of the case

The Maxima is a bulk carrier owned by the Maxima Shipping Company, registered at Williamstad Port in the Netherlands. In June 2012, the ship accidentally collided with another ship while sailing in the coastal waters of China, causing serious damage to the other ship. At the same time, an oil spill accident occurred due to the collision, causing pollution to the nearby waters. After the accident, the "Misam" ship was sent to Chongming Port for maintenance. Since then, 11 Ukrainian crew members, including Oleg, have not been paid their wages on board. Afterwards, 6 crew members returned to their home country at their own expense, while the remaining 5 crew members remain on board and are responsible for guarding the ship. In July 2013, five Ukrainian crew members on board the "Mism" ship filed a maritime preservation application for the arrest of the ship with the Shanghai Maritime Court on July 17, 2013, due to the shipowner's long-term arrears of their wages. They also filed a lawsuit against the shipowner Mism Shipping Company regarding the dispute over the crew service contract. Other crew members subsequently filed lawsuits.

（2） Judgment results

After receiving the application, the Shanghai Maritime Court made a detention order on the same day. Considering the eagerness of foreign crew members to return home as soon as possible, the court coordinated and implemented the supply of fresh water, materials, and daily necessities for crew members, actively contacted crew service companies, shipowner agents, and foreign crew lawyers, and entrusted domestic crew service companies to send personnel to take care of the ship, enabling foreign crew members to return home.

After the trial, the Shanghai Maritime Court quickly made a judgment in support of all the claims of the crew. After the judgment came into effect, due to the defendant's failure to fulfill the obligations determined in the judgment within the statutory time limit, Ogley applied for compulsory execution to the Shanghai Maritime Court in January 2014. The Shanghai Maritime Court has initiated a ship auction procedure in accordance with the law. In the end, the "Misham" ship was won by a German shipping company for RMB 39.9 million, and the crew's labor remuneration was legally prioritized in the auction proceeds.

（3） Typical significance

In the process of handling this series of cases, the Shanghai Maritime Court focused on crew members, held on-site meetings several times on board ships, cared about crew members' lives and ship safety, strengthened various links such as ship inspection, evaluation, and safety supervision, ensured that ship inspection and evaluation reports objectively reflected the actual situation and value of the ship, overcame the impact of unfavorable factors such as the sluggish shipping market, and smoothly promoted the judicial auction process. After the successful auction, RMB 1.543 million was allocated as the labor compensation for 11 Ukrainian crew members from the auction price of the ship. The Shanghai Maritime Court, in accordance with Chinese laws and international practices, exercises judicial power in accordance with the law, equally protects the legitimate rights and interests of domestic and foreign parties, and allows foreign crew members to feel the warmth of Chinese justice. Received recognition and gratitude from the Ukrainian Consulate in Shanghai, and established a good image of Shanghai International Shipping Center.

Case 4

Case of Shanghai Maritime Court Seizing and Aucting the "Futong 09" Ship

（1） Basic facts of the case

The "Futong 09" gear train is a dry cargo ship registered under the name of the executed person Zhu, with a total tonnage of 3880 tons and a carrying capacity of 8300 tons. Far East International Leasing Co., Ltd. applied to the Shanghai Maritime Court on August 13, 2014 to seize Zhu's "Futong 09" ship at Shanghai Port in order to resolve a dispute over the loan contract for ship operation between Wuhu Futong Shipping Co., Ltd. and Zhu. The Shanghai Maritime Court ruled to grant permission and implemented the seizure. On the 26th of the same month, Far East International Leasing Co., Ltd. and Shanghai Bank Co., Ltd. Pudong Branch jointly filed a lawsuit against the court regarding this dispute. On the 5th of the following month, the plaintiff and defendant reached a mediation agreement under the auspices of the court, and each defendant agreed to pay the corresponding loan principal, interest, etc. to the plaintiff. If the payment is not made on time, the plaintiff can apply to the Shanghai Maritime Court to auction the "Futong 09" round and receive priority compensation from the auction proceeds. Later, due to the defendant's failure to pay the mediation fee within the time limit confirmed in the mediation agreement, the plaintiff applied for compulsory execution.

（2） Judgment results

After receiving the enforcement application, the Shanghai Maritime Court immediately conducted an investigation into the executable property and ultimately decided to auction the seized "Futong 09" ship. Given that in previous ship auctions, due to the slow economic recovery of the shipping market, a ship often required multiple auctions, price reductions, and auctions to achieve final results, the court decided to attempt to auction the ship online. On October 20, 2014, the Shanghai Maritime Court established the "Futong 09" auction committee in accordance with the relevant provisions of the Maritime Litigation Special Procedure Law. After repeatedly demonstrating the feasibility of online auctions, in accordance with the relevant provisions of the "Shanghai Court's Rules for Judicial Entrusted Auction of State owned Assets", the Shanghai Maritime Court and the Shanghai Stock Exchange have negotiated to carry out online bidding for ships. At 15:17 on November 28th, after 32 rounds of intense bidding, the "Futong 09" round was successfully auctioned off on the trading platform of the official website of the Shanghai United Property Exchange for 6.04 million yuan.

（3） Typical significance

Ship auction is an important way to realize maritime claims. In traditional models, bidders need to attend the auction site to participate in the bidding, and the cost of expenses and time reduces the enthusiasm of potential bidders to participate in the bidding. Online auctions make full use of modern internet information technology, greatly saving transaction costs and time for bidders, improving the competitiveness of ship auctions, and making it more conducive to discovering the price of the underlying assets and protecting the interests of creditors. In this case, the Shanghai Maritime Court relied on the mature trading platform of the Shanghai Stock Exchange to ensure the safety of the auction process. It is a beneficial exploration to innovate maritime execution methods and improve the level of convenient services for the people.

Case 5

The "Three Lakes Sapphire" Series Seizure Case

（1） Basic facts of the case

On June 9, 2011, the applicant, OMEN TRADING INTERNATIONAL LIMITED, applied to the Wuhan Maritime Court for the seizure of the "SAMHO SAPPHIRE" ship belonging to the respondent due to a debt dispute with the respondent, SAMHO SHIPPING CO., LTD. Afterwards, six overseas creditors applied for seizure measures against the round, involving seven countries and regions, with a total debt amount of over 6 million US dollars. In addition, the mortgagee of this round, Busan Bank of South Korea, has a mortgage debt exceeding $40 million.

（2） Judgment results

On June 11, 2011, the Wuhan Maritime Court detained the "Three Lakes Sapphire" ship in Nantong. The shipowner Sanhu Shipping Co., Ltd. has been placed under bankruptcy protection by a South Korean court due to two consecutive hijackings by Somali pirates, causing heavy damage to the company's operations. Due to the shipowner's inability to provide guarantees, in accordance with China's Maritime Litigation Special Procedure Law, the ship will be auctioned off in accordance with the law. Some crew members were extremely unstable after the ship was seized and requested to abandon the ship and return home. The South Korean Consulate in Wuhan issued a note to the Foreign Affairs Office of Hubei Province, expressing concern about the safety of the detained ship and crew.

Due to the sluggish international shipping market at that time, the estimated auction price for this round was only over 10 million US dollars, which was far from enough for the mortgagee's family to be compensated. At the same time, the auction of the ship also requires payment of inspection, evaluation, and auction fees, and the shipowner will bear huge losses. Therefore, the auction results have no benefits for shipowners, mortgagees, or ordinary creditors.

The Wuhai Maritime Court actively contacted and communicated with all parties involved, explained Chinese laws, analyzed the costs and results of the auction, and through patient and meticulous mediation work, finally facilitated a settlement agreement between the parties. It agreed that Busan Bank, the mortgagee of the "Three Lakes Sapphire" ship, would provide 450000 US dollars to be paid according to the proportion of ordinary creditors' rights, All ordinary creditors agree to release the seizure of the "Three Lakes Sapphire" vessel. On September 23, 2011, the Wuhan Maritime Court lifted the seizure of the ship, and the "Three Lakes Sapphire" ship safely departed Nantong for Busan.

（3） Typical significance

The "Three Lakes Sapphire" series of seizure cases involve multiple parties from multiple countries, making coordination difficult. In addition, the vessel is a chemical vessel, and both the captain and crew are foreign nationals from multiple countries. The safety of the vessel and the pacification of the crew during the detention period are significant challenges. The Wuhan Maritime Court fully leverages the unique advantages of mediation, a Chinese experience in resolving complex disputes, and facilitates the parties to reach a settlement, enabling the vessel involved to be released from detention and resume operation. It has achieved good legal and social effects, and has received praise from all parties involved in the case. After the case was concluded, the Consul of the South Korean Consulate in Wuhan made a special trip to the court to express gratitude and highly appreciate the judicial actions of Chinese courts in protecting the legitimate rights and interests of Korean enterprises in a fair and efficient manner. The applicant, Oman International Trading Company, presented a plaque to the Nantong Court of Wuhan Maritime Court, stating "High quality and efficient mediation".

Case 6

Danish Oil Supply Co., Ltd. applied for the seizure of the "Starlight" ship case

（1） Basic facts of the case

The applicant, A/S Dan Bunkering Ltd., provided 485.1820 metric tons of Fol80Cst and 158.5280 metric tons of Gas Oil for the Panamanian owned "Xing Yao" vessel on December 12, 2012 in Hong Kong waters, at a cost of $461238.21. The respondent only paid RMB 1000000 (equivalent to USD 158730) and still owes USD 302508. After the ship sailed into the waters of Shantou, Guangdong, the respondent has contacted the buyer and is preparing to deliver the ship to the new shipowner. In order to prevent the failure of the creditor's rights, the applicant urgently submitted a pre litigation maritime preservation application to the Guangzhou Maritime Court on January 22, 2013, applying for the seizure of the "Star Yao" ship, and ordering the respondent to provide a guarantee of $302508 or equivalent in RMB. Due to its large tonnage, the "Xingyao" ship was unable to dock at the dock and anchored in the waters about 25 nautical miles offshore of Shantou Port, which may depart at any time.

（2） Judgment results

After receiving the application, the Guangzhou Maritime Court immediately formed a collegial panel for examination, requesting the applicant to provide the specific location of the detained ship; On the other hand, it is necessary to produce a ship arrest ruling and a ship arrest order. According to legal regulations, the maritime claimant should submit a pre litigation maritime preservation application to the maritime court of the location of the ship. In this case, the maritime claimant provided evidence that the "Star Yao" ship had departed from Hong Kong waters and anchored in the Shantou waters of Guangdong, and the Guangzhou maritime court should exercise maritime jurisdiction to detain the ship in accordance with the law. After examination, the Guangzhou Maritime Court believes that the applicant's application meets legal requirements and should be granted permission. According to Article 21 (12), Article 23 (1), (2), and Article 28 (1) of the Maritime Litigation Special Procedure Law of the People's Republic of China, the applicant's application for pre litigation maritime preservation shall be granted a ruling; Seizure of the "Xingyao" ship anchored at Shantou Port belonging to the respondent; Order the respondent to provide a guarantee of $302508 or equivalent in RMB. On January 24, 2013, the judge boarded the 60000 ton "Xingyao" ship in a 25 nautical mile offshore water area after traveling in a traffic boat for nearly seven hours and braved the sea waves; After the arrest of the ship, the judge actively facilitated negotiations between the applicant and the respondent. Pre litigation mediation was conducted under the auspices of the court. On January 29, the applicant received full compensation from the respondent.

（3） Typical significance

This case is a dispute involving the parties in Denmark, Panama and other countries as well as the Hong Kong jurisdiction of China. After the ship involved entered the sea area of Guangdong, China, the maritime court in mainland China effectively exercised jurisdiction in a timely manner, seized the ship before litigation, and carried out pre litigation mediation. It took only five days to effectively resolve the dispute between the parties, and really achieved "the case is closed". On March 26, 2013, the Guangzhou Maritime Court received a letter from the applicant expressing gratitude to the Chinese court for timely and efficient detention of ships to resolve disputes. The thank-you letter states: "The effective detention of the ship by your judge has provided the fastest protection for our company's legitimate rights and interests, and is the key to helping our company achieve its debt." According to the general international litigation procedures, this process will be very long. Foreign parties have chosen to engage in litigation activities in Chinese courts, and through timely arrest and successful mediation, their legitimate rights and interests have been safeguarded and realized as quickly as possible. This has strengthened the trust of foreign parties in Chinese maritime justice, established the judicial credibility of Chinese courts, and established a good judicial image of Chinese judges.

Case 7

German Shipping Loan Bank's Application for Seizure and Auction of the "Amin" Ship Case

（1） Basic facts of the case

The applicant, DVB Bank SE, has signed a loan agreement with ISIM Amin Limited and other companies in the Republic of Malta. The latter uses MV Amin (later renamed MV Amin 2 or "Amin 2") as collateral, and both parties have signed legal documents such as the "Mortgage Agreement" and registered the first priority ship mortgage. On October 29, 2013, the German shipping loan bank applied to the Xiamen Maritime Court for pre litigation maritime preservation, seized the Iranian MV Amin2 anchored at Zhangzhou Port, and ordered the respondent to provide a guarantee in the amount of 27777581.76 euros, citing the breach of many contractual agreements by Esme Amin Shipping Co., Ltd., which owed 27777581.76 euros in principal and interest.

（2） Judgment results

After examination, the Xiamen Maritime Court found that the application of the German Shipping Loan Bank met legal requirements and ruled on November 4, 2013 to grant permission. The bank subsequently filed a lawsuit with the Xiamen Maritime Court. Due to the respondent's failure to provide guarantees, the German Shipping Loan Bank applied for the auction of the ship and was granted permission on May 5, 2014.

On the morning of October 28, 2014, bidders from countries and regions such as Norway, Panama, the Republic of the Marshall Islands, Liberia, and Hong Kong, China participated in the auction. After 157 rounds of bidding, the super tanker "Amin 2" with a capacity of nearly 160000 tons sold at a price of 324 million yuan, exceeding the starting price by nearly 80 million yuan.

（3） Typical significance

The value of the ship in this case is enormous, and both parties are foreign enterprises, and the bidders are mostly foreign enterprises. Chinese courts strictly follow legal provisions in the process of arresting and auctioning ships. According to the Vienna Consular Convention, promptly notify the embassy or consulate of the country of registry in China. Actively coordinate with foreign shipping agents and border inspection departments, develop work processes in advance, and fully meet the requirements of Chinese and foreign bidders for on-site inspection of ships. The professional standards, professional dedication, and work style of strictly ruling in accordance with the law, decisive execution, seriousness and responsibility, and meticulous consideration have also fully established the judicial credibility of Chinese courts and demonstrated the good image of China's maritime justice.

Case 8

Case of Minmetals International Freight Co., Ltd. Applying for Seizure of the "Haizhi" Ship

（1） Basic facts of the case

On September 6, 2000, Minmetals International Freight Co., Ltd. (hereinafter referred to as Minmetals Company) signed a bareboat lease agreement with Hainan Longzhu Shipping Co., Ltd. (hereinafter referred to as Longzhu Company) to lease the "Haizhi" ship operated by Longzhu Company under bareboat lease, with a lease term of 1 year+1 year+1 year, at the option of Minmetals Company. In November 2000, both parties reached an agreement to return the ship, and Minmetals Corporation returned the "Haizhi" ship to Longzhu Corporation. However, Longzhu Corporation owed Minmetals Corporation 3483887.37 yuan in rent deposit and other payments. On January 18, 2002, Minmetals Company filed a pre litigation maritime preservation application with the Ningbo Maritime Court, requesting the seizure of the "Haizhi" ship, which was operated by Longzhu Company and moored at Wenzhou Port, and ordering Longzhu Company to provide a guarantee of 4 million yuan.

（2） Judgment results

On January 21, 2002, the Ningbo Maritime Court made a ruling allowing Minmetals Company's pre litigation maritime claim for preservation, and seized the "Haizhi" ship at the Xiaomen Island Liquefied Gas Terminal in Wenzhou. After investigation, the "Haizhi" ship was registered as owned by OCEAN LINK SHIPPING LIMITED of Saint Vincent and Grenadines. On August 5, 1999, it was leased to Longzhu Company for operation and registered as a ship under customs supervision at Haikou Port. After the detention of the "Haizhi" ship, Minmetals Corporation, the mortgagee of the ship, China Shipbuilding Industry Trading Corporation, and the ship manager, Zhuhai Hongzhou Shipping Co., Ltd., respectively filed lawsuits with the Ningbo Maritime Court; All crew members agreed to have the captain act as a representative to sue for wages due to lack of labor remuneration; Haikou Customs applies for creditor's rights and requires the withholding of relevant taxes during the ship auction process. After the judgment on the dispute over the bare lease contract between Minmetals Company and Longzhu Company came into effect, the Ningbo Maritime Court, based on Minmetals Company's application, ordered the auction of the "Haizhi" ship for 23.38 million yuan (including tax). After prioritizing the allocation of litigation costs, national taxes, ship storage, auction and other expenses, the remaining balance shall be distributed by each creditor in accordance with the law.

（3） Typical significance

Firstly, it is clarified through specific cases that the maritime claimant can apply for the seizure and auction of the charterer's leased vessel, which effectively connects the seizure and auction procedures of the leased vessel and effectively protects the legitimate rights and interests of the maritime claimant. The second is to clarify that when foreign ships enter the country under charter only and are converted into domestic ships through auction, national taxes in the import process should be prioritized for payment. The "Haizhi" vessel, which enters the country under customs supervision, shall pay relevant national taxes (including customs duties, value-added tax collected on behalf of others, and light charter tax totaling 4762785.75 yuan) in accordance with the law when converted into a domestic vessel through judicial auction by the court. This fee shall be deemed as "other fees paid for the common interests of maritime claimants" as stipulated in Article 24 of the Maritime Law of the People's Republic of China, and shall be prioritized for payment. This case has protected the national tax revenue and maintained the customs supervision system in accordance with the law, while properly allocating and handling multiple claims.

Case 9

Panama Tianyu Shipping Co., Ltd. applied for the seizure of "Shanni 1" case

（1） Basic facts of the case

The "TENYU" vessel belonging to TENYU SHIPPING S.A. PANAMA, the applicant, loaded 3006 tons of aluminum ingots in September 1998 and set sail from the port of Kula Tianqiong in Indonesia to Incheon Port in South Korea. On September 27, 1998, all the ship, cargo, and crew disappeared. On December 17, 1998, a cargo ship named "SANEI-1" under the Honduran flag, equipped with 16 Indonesian crew members and carrying 3000 tons of palm oil, sailed into Zhangjiagang, China. After investigation by the International Maritime Organization, it is suspected that it is the missing "Tianyu" ship. On December 23, 1998, Tianyu Company submitted a pre litigation property preservation application to the Wuhan Maritime Court, requesting the seizure of the "Shanni 1" vessel anchored in Zhangjiagang, China.

（2） Judgment result

The Wuhan Maritime Court, in accordance with Article 93 and Article 251 (2) of the Civil Procedure Law of the People's Republic of China, has ruled to grant the applicant Tianyu Shipping Co., Ltd.'s pre litigation property preservation request; Seizure of the "Shanni 1" ship belonging to the respondent; Order the respondent to provide a guarantee of 100 million yen (833000 US dollars). After the Wuhan Maritime Court delivered the order to seize the ship to the captain of the vessel, the shipowner recorded on the certificate of the "Shanni 1" vessel had not responded. On January 11, 1999, Tianyu Company filed a lawsuit for the confirmation of ship ownership with the Wuhan Maritime Court, and subsequently submitted an application for advance execution to the Wuhan Maritime Court, requesting the return of the "Tianyu" ship in advance. On April 6, 1999, Tianyu Company submitted a pre execution guarantee issued by the International Business Department of China Insurance Property and Casualty Insurance Co., Ltd. Wuhan Branch to the Wuhan Maritime Court. On April 15, 1999, the Wuhan Maritime Court issued a civil ruling (1999) No. 25, which returned the "Shanni 1" ship, also known as the "Tianyu" ship, detained in Zhangjiagang, China, to Tianyu Company. On November 22, 1999, the Wuhan Maritime Court made a judgment confirming that the "Shanni 1" ship was owned by Tianyu Company as the "Tianyu" ship.

（3） Typical significance

This case is an arrest of a ship caused by international maritime fraud or pirate attacks leading to the disappearance of the ship. Tianyu Company is a single vessel company registered by Japanese shipowners in Panama. The hull insurer of the "Tianyu" ship is Japan's Gongrong Fire and Marine Insurance Co., Ltd., the cargo insurer is Lloyd's, and the missing crew members come from South Korea and China. The "Tianyu" ship disappeared in the Strait of Malacca and was rebranded as the "Shanni 1" ship to China, with Indonesian crew members on board. The case file involves multiple languages such as Japanese, Korean, English, and Chinese.

The arrest and trial of ships in this case effectively cracked down on international maritime fraud and the arrogance of international criminal groups, and established a fair and efficient judicial image of Chinese courts. Tianyu Company and its Japanese parent company presented the banner of "resolving suspicious cases, upholding justice, and maintaining judicial fairness" to the Wuhan Maritime Court. Mr. Max Taylor, then Chairman of the world-renowned insurance association Lloyd's, wrote on behalf of the insurer to the Wuhan Maritime Court, stating that your court has taken a fair stance and provided us with prompt and impartial support. We believe that with a high sense of responsibility for justice, your court has made significant contributions to China's legal construction process, especially to China's goal of becoming a maritime trial center in the Asia Pacific region!

Case 10

Application for the seizure of the "L-710" round by Ickleps Property Company in the Marshall Islands

（1） Basic facts of the case

On December 1, 2006, the applicant, Icklips Property Co., Ltd. of the Republic of the Marshall Islands, signed a "Ship Construction Contract" with the respondent, Fujian Shenglong Shipbuilding Co., Ltd. and Wenzhou Runyang Import and Export Trading Co., Ltd., agreeing that the two defendants would design and build a 57000 deadweight ton single shell bulk cargo ship (construction ship number "SL-710") for the applicant in Fu'an, Fujian, with a price of 38 million US dollars, to be prepaid in five installments, Each installment is worth 7.6 million US dollars, and both parties agree to submit the dispute to arbitration in London, UK for resolution. After paying the first installment of $7.6 million for the purchase of the ship, the applicant cancelled the contract on the grounds of breach of contract by the two defendants. In July 2009, the two defendants applied for arbitration to the London Arbitration Court in the UK, requesting a ruling that the applicants had no right to cancel the contract or request a refund of the advance payment. The applicant has filed a counterclaim, requesting a ruling that they have terminated the contract in accordance with the agreement, and has the right to request a refund of the advance payment of 7.6 million US dollars and interest; Or ruling that the two defendants constitute a breach of contract, and compensating the assessed amount of losses. In September 2010, the applicant learned that the two defendants were preparing to sell the "SL-710" ship under construction, and therefore applied to the Xiamen Maritime Court to seize the ship, ordering the two defendants to provide a reliable guarantee of 9.08 million US dollars.

（2） Judgment results

After examination, the Xiamen Maritime Court found that the applicant's application meets the legal conditions for arresting ships in China, and in accordance with Article 12, Article 14, Article 21 (13), and Article 23 (1) of the Maritime Litigation Special Procedure Law of the People's Republic of China, According to Article 21, Paragraph 2 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of the Maritime Litigation Special Procedure Law of the People's Republic of China, the "SL-710" ship moored in Fu'an City, Fujian Province was ordered to be seized, and the two defendants were ordered to provide reliable guarantees worth 9.08 million US dollars. During the arrest of the ship, the London Arbitration Tribunal ruled that the applicant has the right to terminate the contract and request compensation for damages in accordance with common law. Subsequently, the two defendants reached a settlement with the applicant and fulfilled their compensation obligations, and the Xiamen Maritime Court lifted the arrest of the "SL-710" ship in accordance with the law.

（3） Typical significance

This case is a maritime preservation case where a foreign party applied to a Chinese court for the arrest of a ship during the arbitration process of their dispute by a foreign arbitration institution. The arbitration procedure often takes several years from applying for arbitration to acknowledging enforcement, during which the successful award may not be enforced due to the transfer of assets by the parties. As a contracting party to the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, China has an international obligation to recognize and enforce foreign arbitral awards in accordance with the law. At the request of foreign arbitration parties, taking measures of seizure and preservation of ships located in China can help ensure the smooth execution of foreign arbitration awards.

Article 14 of the Maritime Litigation Special Procedure Law of the People's Republic of China stipulates that "maritime claim preservation shall not be bound by the litigation jurisdiction agreement or arbitration agreement between the parties regarding the maritime claim." Article 21, paragraph 2 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of the Maritime Litigation Special Procedure Law of the People's Republic of China further clarifies, If a foreign court has accepted the relevant maritime case or the relevant dispute has been submitted for arbitration, but the property in question is within the territory of the People's Republic of China, and the party applies for maritime preservation to the maritime court in the place where the property is located, the maritime court shall accept it. In this case, the Xiamen Maritime Court has ruled in accordance with the law to allow the arrest application of the ship by Iclipus Property Co., Ltd., and promptly stopped the two defendants from disposing of the ship, Promote the smooth implementation of the rights and obligations determined by relevant foreign arbitration awards. The Greek shipowner has made a special trip to Xiamen Maritime Court to express gratitude and respect for the strict application of the law and equal protection of the legitimate rights and interests of both Chinese and foreign parties, which has won international recognition and praise.