Legal Definitions - Federal Maritime Lien Act

The Federal Maritime Lien Act (FMLA) is a United States federal law designed to protect businesses and individuals who provide essential goods, services, or repairs to vessels. Under this Act, an automatic "maritime lien" is created on the vessel itself whenever necessary supplies or services are furnished to it. This lien gives the supplier a legal claim against the ship, allowing them to potentially seize or sell the vessel to recover payment if the owner fails to pay for the goods or services rendered. It ensures that those who contribute to the operation and maintenance of ships have a secure way to obtain payment, even if the ship's owner becomes financially unstable or difficult to locate.

Here are some examples of how the Federal Maritime Lien Act applies:

• Imagine a company that supplies thousands of gallons of marine fuel to a large container ship docked in a U.S. port. If the shipping company that owns the vessel fails to pay the fuel bill, the Federal Maritime Lien Act automatically places a lien on that container ship. This means the fuel supplier has a direct legal claim against the ship itself, which they can enforce in court to recover the unpaid amount, potentially by having the vessel arrested (legally seized) until the debt is settled.

• Consider a specialized shipyard in Louisiana that performs extensive and costly engine repairs on an offshore oil rig supply vessel. The FMLA ensures that the shipyard automatically has a maritime lien on that supply vessel for the value of the repairs. If the vessel's owner defaults on payment, the shipyard's lien provides a powerful legal tool to pursue payment directly from the asset that benefited from their work, rather than just relying on a lawsuit against the owner.

• Suppose a provisioner delivers a large order of fresh food, potable water, and medical supplies to a research vessel preparing for an extended scientific expedition. Should the organization operating the research vessel fail to pay for these essential provisions, the Federal Maritime Lien Act grants the provisioner an automatic maritime lien on the vessel. This lien provides a legal mechanism for the provisioner to seek payment directly from the value of the ship if necessary, ensuring they are compensated for the goods supplied.