Arctic Arrest

A South American ship agent advised ITIC that the owners of a cruise ship owed them over USD 25,000 relating to the costs of crew and supplies incurred during various calls. Reminders and chasers to the owners had not resulted in payment and it was decided that more aggressive action was needed.

ITIC ascertained that the ship was chartered to a cruise line and was due to sail from a port in the Canadian Arctic for the High Arctic, and had no apparent plans to revisit South American waters. ITIC instructed its Canadian lawyers to arrest the ship where she was in the Canadian Arctic and within hours of the arrest being served the owners paid all the outstanding debts in full.

The owners admitted that they did not think that anyone would be able to arrest the ship in such a desolate place. The owners were wrong and they paid not only the outstanding disbursements, but also the arrest costs.