Maritime and Shipping Disputes in the UAE: Cargo Claims, Vessel Arrest and Urgent Remedies

A maritime claim can lose practical value if evidence disappears, notice periods expire or a vessel leaves port. Early legal action should focus on the contract, available security and the steps needed to preserve the claim.

The UAE is a major regional centre for shipping, ports and logistics, and maritime disputes can involve significant value and tight timelines. Cargo may be damaged, freight may remain unpaid, a charterparty may break down, or a claimant may need security before a vessel leaves UAE waters.

Federal Decree-Law No. 43 of 2023 Concerning the Maritime Law is the principal federal maritime legislation in the UAE. It came into force on 29 March 2024 and repealed Federal Law No. 26 of 1981. The law regulates matters including chartering, carriage of goods, maritime debts, vessel attachment, marine accidents, seafarers and marine insurance.

Start With the Contractual Chain

A shipping dispute is rarely governed by one document. A single movement of goods may involve a charterparty, bill of lading, freight forwarding agreement, terminal terms, cargo insurance and a sale contract. Different documents can allocate responsibility differently and may contain separate governing-law or dispute-resolution provisions.

A maritime law lawyer should therefore identify the parties, contractual chain, governing documents and location of the vessel or other assets. Article 161 of the Maritime Law is relevant where a bill of lading has been issued under a charterparty and addresses the relationship between those documents in the circumstances specified by the law.

AY Advocates advises on charterparties, bills of lading, carriage of goods, vessel sale and purchase, ship finance, marine insurance and port-related arrangements.

Cargo Claims Depend on Evidence and Deadlines

Cargo claims may involve loss, shortage, contamination, physical damage or delay. Article 175 addresses carrier liability for loss or damage occurring between receipt and delivery, subject to the statutory defences available where the carrier establishes that reasonable measures were taken to prevent the loss or damage or that taking such measures was impossible.

Determining when the damage occurred is therefore important. Survey reports, photographs, temperature records, bills of lading, delivery documents, container records and correspondence should be secured before cargo is repaired, sold, destroyed or otherwise altered.

Timing is equally important. Under Article 183, apparent partial loss or damage should generally be reserved in writing before or during delivery. Where partial loss or damage is not apparent, Article 183 generally requires the carrier to be notified in writing at the port of unloading within 15 days following takeover of the cargo.

Delay is treated separately. Article 185 requires written notification to the carrier within 60 days from delivery where compensation for delay is claimed. Article 187 also establishes a one-year non-hearing period for cases arising from contracts of carriage by sea, calculated from delivery or the date delivery should have occurred, subject to the statutory conditions.

Vessel Arrest Can Secure a Maritime Debt

Article 53 identifies the maritime debts capable of supporting prejudgment attachment of a vessel. These include claims arising from the use of a ship, carriage contracts, cargo loss or damage, towage, pilotage, supplies, port charges, crew remuneration, certain insurance premiums, ship mortgages and vessel-sale disputes.

Article 54 allows a holder of a qualifying maritime debt to seek attachment of the vessel to which the debt relates and, in certain circumstances, another vessel owned by the debtor when the attachment application is made.

The sister-ship remedy is not unlimited. Certain claims concerning ownership or possession, co-ownership, mortgages and vessel-sale disputes cannot be used to attach an unrelated vessel. Maritime lawyers in Dubai should therefore examine both the nature of the maritime debt and vessel ownership before relying on arrest as a security measure.

Vessel Arrest Has Strict Procedural Requirements

Article 56 requires the competent court to accept a financial guarantee submitted by the arrest applicant to cover necessary requirements relating to the security and safety of the vessel and crew during the attachment period.

Once attachment is imposed, Article 57 prevents the vessel from sailing. Article 57 generally also provides for the lifting of prejudgment attachment where sufficient security is provided, subject to statutory exceptions for certain ownership, possession and co-ownership disputes. The law also recognises certain guarantees issued by P&I clubs or financial institutions where accepted by the competent court.

There is another important deadline. Article 59 requires the arrest applicant to file an action for the validity of the attachment before the competent court within five working days from the date of attachment. Failure to do so causes the attachment to become null and void. This is one reason vessel arrest remains specialist work for top maritime law firms.

Liability May Extend Beyond the Carrier

The carrier is not always the only relevant party. The Maritime Law separately addresses contracting and actual carriers, loading and unloading contractors and freight forwarders. Depending on the transaction, a freight forwarder may act as a contracting carrier, principal carrier or agent.

For a maritime lawyer, identifying the correct defendant requires more than reviewing a commercial invoice. A carrier, charterer, terminal operator, freight forwarder, actual carrier or insurer may become relevant depending on the contractual arrangements, insurance coverage and stage at which the loss occurred.

The best maritime law firms therefore examine the complete transport chain before proceedings begin.

Cross-Border Elements Affect the Strategy

Maritime disputes commonly involve foreign owners, charterers, cargo interests, banks and insurers. In relation to charterparties, Article 130 provides that the law of the ship's flag applies unless the contracting parties agree otherwise.

The merits of the dispute and available interim remedies should still be considered separately. A dispute may be governed by foreign law or subject to arbitration while a vessel located in the UAE may still be considered for prejudgment attachment, provided the claim qualifies as a maritime debt and the statutory arrest requirements are satisfied.

For law firms in UAE maritime matters, the practical question is not only whether a claim is legally strong, but whether security and eventual enforcement are realistically available. Top legal firms in Dubai and top law firms in Dubai handling shipping disputes should consider the contract, forum, available assets and urgent remedies together.

Act Before the Commercial Position Changes

Maritime disputes are particularly sensitive to delay. Vessels leave port, cargo is released and evidence can become harder to preserve. Early advice may allow surveys to be arranged, notices to be issued and security options to be examined before those opportunities disappear.

AY Advocates advises shipowners, charterers, traders, cargo interests, marine insurers, P&I clubs, port and terminal operators and vessel financiers on contentious and transactional maritime matters in the UAE.

When a shipping dispute concerns cargo, unpaid freight, a charterparty or a vessel in UAE waters, early action can materially affect the available options. Consult with AY Advocates about maritime and shipping matters in the UAE.

FAQs

1. What is the main law governing maritime matters in the UAE?

Federal Decree-Law No. 43 of 2023 Concerning the Maritime Law is the principal federal maritime legislation. It came into force on 29 March 2024 and repealed Federal Law No. 26 of 1981.

2. Can a vessel be arrested in the UAE for an unpaid maritime claim?

Yes. A vessel may be subject to prejudgment attachment where the claim qualifies as a maritime debt under Article 53 and the statutory conditions for attachment are satisfied.

3. Can another vessel owned by the debtor also be arrested?

Yes, in certain circumstances. Article 54 permits attachment of another vessel owned by the debtor, but the remedy is subject to statutory conditions and does not apply to certain ownership, co-ownership, mortgage and vessel-sale disputes.

4. Does the arrest applicant have to provide financial security?

Yes. Article 56 requires the competent court to accept a financial guarantee from the applicant covering necessary requirements relating to the security and safety of the vessel and crew during attachment.

5. Is there a deadline after a vessel has been arrested?

Yes. Under Article 59, the applicant must file the action for validity of the attachment within five working days from the date of attachment. Otherwise, the attachment becomes null and void.

6. Are there notice deadlines for damaged cargo?

Yes. Apparent partial loss or damage should generally be reserved in writing before or during delivery. Non-apparent partial loss or damage generally requires written notification to the carrier at the port of unloading within 15 days following takeover of the cargo. Claims for delay generally require written notification within 60 days from delivery.