Legal Problems Arising out of the Financial Collapse of a Container Line Service

Abstract

This paper explores a few of the problems that arise following the financial collapse of a container line service, and some of the legal considerations that may apply. This issues include: those which arise in the situation where a liner service uses its own vessels (thus the collapse will be of the shipowner itself), restructuring, and those issues which arise in the situation where a newly insolvent ship operator time-charters vessels on the open market from third-party shipowners. The author also draws attention to container leasing companies, these being significant creditors whenever a container line goes under, the application of marine insurance, and the position under the sale contract.