Abstract
In the event of default by a head charterer, a ship owner may advance a direct claim under the bill of lading against the shipper for freight, with an alternative claim against the charterer to enforce the charterparty lien on sub-freights. With maritime-related insolvencies increasingly common these claims are important to ship owners as they provide another method of debt recovery. This article explores the contentious ship owner’s lien on sub-freights payable to the charterer. Clear guidance on the nature of the lien has particular importance in New Zealand, Australia, Canada and other countries where statutory personal property securities regimes are operated. Finally, the article considers the nature of the lien in the light of the policy rationale underlying personal property securities regimes.