Legal Definitions - Maritime Lien

A Maritime Lien is a special type of legal claim that attaches directly to a vessel, such as a ship, boat, or other seafaring craft, or sometimes to its cargo or freight. Unlike many other liens that require a specific contract or local law to be created, maritime liens arise automatically under federal maritime law (also known as admiralty law) when certain services are provided to a vessel or when an incident involving the vessel occurs.

A key characteristic of a maritime lien is that this claim "travels with the ship." This means it remains attached to the vessel itself, even if the vessel is sold to a new owner who was unaware of the lien. This gives those with maritime liens a powerful right to seek payment by potentially having the vessel arrested and sold to satisfy the debt.

Here are some examples to illustrate how a maritime lien works:

• Unpaid Fuel Bill:

  Imagine a large container ship, the Ocean Explorer, docks in a port and takes on a substantial amount of fuel from a local supplier. The ship's operating company, based in a foreign country, later fails to pay the fuel bill. The fuel supplier automatically acquires a maritime lien against the Ocean Explorer itself. This lien exists even though there wasn't a specific agreement stating a lien would be created. If the ship sails to another port and is later sold to a new company, the fuel supplier can still enforce their claim against the ship, potentially leading to its arrest, regardless of whether the new owner knew about the unpaid bill.

• Emergency Ship Repairs:

  A fishing trawler, the Sea Serpent, suffers severe engine trouble far offshore and is towed to the nearest port for urgent repairs. A local shipyard quickly fixes the engine to get the trawler operational again. The trawler's owner later declares bankruptcy and cannot pay the repair bill. The shipyard automatically holds a maritime lien against the Sea Serpent for the value of the repairs. This lien arose because the repairs were necessary for the vessel's continued operation. Even if the owner sells the trawler to a new fisherman, the shipyard's claim remains attached to the vessel itself, allowing them to pursue payment by enforcing the lien against the trawler, not just the bankrupt owner.

• Unpaid Crew Wages:

  The crew of a cargo vessel, the Star of the East, completes a six-month voyage but is not paid their final two months' wages by the ship's operating company, which is experiencing financial difficulties. Each crew member automatically has a maritime lien against the Star of the East for their unpaid wages. This lien arises directly from their service to the vessel and is often considered a very strong type of maritime lien, frequently given priority over many other claims. Even if the ship is sold to a new owner, the crew members can still enforce their wage claims against the vessel itself, ensuring they have a powerful means to recover their earnings.