The Collapse of ABC Containerline: The Movement and Management of Vessels Under Arrest

Abstract

Ritchie presents on the topic of the ABC Containerlines Demise - A Plethora of Issues (Business Session 3). Ritchie looks in particular at the arrest of the ship Martha II and subsequent litigation, as a case study of the problems and issues which may arise in proceedings in rem. Ritchie also examines the Court's management of the ship in permitting it to undertake sea voyages while under arrest between ports in Australia, and the considerations weighed up the Court. Ritchie considers that allowing an arrested vessel to engage in extended operations may be inconsistent with not only the statutory framework for the conduct of arrest proceedings, but also the past approach of Admiralty courts to the release of defendant vessels, and the theoretical justifications for in rem proceedings and arrest. Further, permitting an arrested vessel to continue operations may cause a further dislocation to the rights and interests of the various parties affected by a proceeding in rem. While this may constitute a return to the owners of the arrested vessel some degree of direct managerial control over the fate of their property, and for that reason may be considered a 'commercial' approach, the Court must take the necessary implications into account.