askST: What does it mean for cruise ship MV Odyssey to be under arrest?

SINGAPORE – Luxury residential cruise ship MV Odyssey has been arrested in Singapore following a mounting financial dispute, shortly after sailing from Cambodia without its 200 passengers.

The legal action – reportedly initiated by local law firm Helmsman on behalf of a regional fuel supplier owed roughly US$500,000 (S$639,000) – places the detained vessel under the control of its lender. 

This development follows months of escalating financial distress for the ship’s Florida-based operator, Villa Vie Residences.

The Maritime and Port Authority of Singapore (MPA) said on Nov 10, in reply to media queries, that the vessel arrived here on Nov 8 and is anchored in the Republic’s port waters.

According to Singapore government website SG Courts, MV Odyssey is currently at Changi General Purpose Anchorage.

MPA added that the crew on board are reported to be well, and arrangements for their welfare and well-being are being managed by the vessel’s creditors. There are no passengers on board, MPA added.

The arresting solicitor is listed as Helmsman.

The Straits Times looks at the legal process the ship is under.

What is a ship arrest?

A ship arrest is not a criminal charge. Rather, it is a legal procedure in which a court orders that a marine vessel be detained in port, in order to secure an unpaid maritime claim.

Under arrest, a ship cannot sail or continue operations until the maritime claim or debt is paid or secured.

How does it work?

A ship arrest does not mean that the owner of the ship has committed a criminal offence. It provides the claimant with a form of security for its unpaid claims.

However, if the ship owner takes the vessel out when it is under arrest, that would be considered contempt of court and legal proceedings would follow.

For a ship arrest, lawyers for the claimant will file a claim. If a warrant of arrest is approved and served by the court, the lawyers will notify the MPA. According to the SG Courts website, the Immigration and Checkpoints Authority and the Police Coast Guard must also be notified.

The ship will then be tagged so that it cannot operate by law.

What are common grounds for a ship arrest?

• Charter party disputes

• Unpaid crew wages

• Cargo loss or damage

• Unpaid bunkers

How does it end?

The ship will remain detained until the ship owner provides financial security to cover the claim or until the court orders that the vessel be sold to pay off creditors.

One option is for the owner to settle the claim. If there is a dispute against the claim, the owner can put money in court to secure a release document, after which he will regain possession of the ship.

He may also take back control of his ship if he can prove that the claims are wrong.

If he is unable to pay, the ship will remain in arrest and the creditor can petition to sell the ship.

When the ship is sold, the money will be held in court which the creditor can retrieve his money from – but only if he gets a favourable judgment.

Andy Ng is a correspondent at The Straits Times’ ST Now desk, covering breaking news both locally and globally.