Mastering Ship Arrest in Norway: A Practical Guide

Legal basis for ship arrest in Norway

Ship arrests in Norway are governed by the Norwegian Maritime Code (NMC) and the Norwegian Dispute Act, closely aligning with international standards, particularly the 1952 Arrest Convention, to which Norway is a signatory. This alignment provides predictability for international stakeholders.

Under Norwegian law, a ship may be arrested as security for a maritime claim, which includes but is not limited to:

• Claims for damages caused by the ship’s operation
• Salvage claims
• Ownership or possession disputes
• Cargo-related claims
• Unpaid crew wages

Norway does not recognize “freezing orders” for general claims unrelated to maritime disputes, highlighting the importance of demonstrating a valid maritime claim.

Procedural requirements for ship arrest

1. Establishing jurisdiction

A ship arrest must typically take place in a Norwegian port where the vessel is located or expected to arrive. Norwegian courts have jurisdiction over any vessel in Norwegian waters, regardless of the ship’s or owner’s nationality. Sister ship arrests are also permitted if the vessel is owned by the same legal entity as the ship related to the claim.

2. Filing the arrest application

The arrest process begins with an application to the local district court where the vessel is located. The application must include:

• The identity of the claimant and debtor
• A clear description of the maritime claim
• Supporting evidence (contracts, invoices, correspondence)
• Proof that the ship is within Norwegian waters

The claimant must also demonstrate a valid security ground, meaning there is a risk that enforcement could be obstructed or must take place outside Norway. However, this is not required if the claim is secured by a contractual or maritime lien on the vessel.

The court may, at its discretion, require the claimant to provide security to cover potential damages resulting from a wrongful arrest. This is typically in the form of a cash deposit or bank guarantee from a Norwegian bank. Additionally, the claimant is usually required to cover harbor dues incurred while the vessel remains under arrest.

3. Court review and decision

The court reviews the application without notifying the shipowner in most cases to avoid alerting them before an arrest order is issued. If the claim is sufficiently substantiated, the court may issue an arrest order without prior notice, allowing enforcement authorities to detain the vessel before it leaves the jurisdiction.

4. Execution of the arrest

Once granted, the arrest order is executed by Norwegian enforcement authorities, and the vessel remains detained until the underlying claim is resolved or adequate security—typically a bank guarantee from a Norwegian bank—is provided.

5. Subsequent oral hearings

If an arrest order is issued without an oral hearing, affected parties may request a subsequent hearing. The court may then confirm, amend, or revoke its decision, potentially requiring additional security for the arrest to be upheld.

Key considerations and practical tips

Timing is crucial

Ships are mobile assets and can leave the jurisdiction quickly. Creditors must act promptly and ensure all necessary documentation is in order to secure an arrest.

Security Requirements

Since Norwegian courts have discretion in determining security requirements, claimants should be prepared to provide security for potential wrongful arrest claims. While the amount is discretionary, it cannot exceed a reasonable compensation claim. Seeking legal advice early is recommended. Additionally, courts may require claimants to provide security for at least 14 days’ worth of harbor dues at the arrest location.

Countersecurity from Shipowners

To release a vessel from arrest, shipowners often provide countersecurity, such as a P&I Club Letter of Undertaking (LOU). Claimants should carefully assess whether the offered security sufficiently covers their claim and potential costs.

Procedural Challenges

Although Norway adheres to international conventions, local procedural requirements may impact the arrest process. Missing or improperly formatted documentation can cause delays. To avoid setbacks, claimants should ensure compliance with Norwegian legal and procedural requirements in advance.