Ship Arrest in Turkey: A Strategic and Practical Guide for Foreign Creditors

In the global maritime industry, the ability to secure a claim through the detention of a vessel is a powerful legal tool. Due to its strategic location—encompassing the Bosphorus and Dardanelles straits—Turkey has become one of the most preferred jurisdictions for ship arrest. Following the alignment of the Turkish Commercial Code (TCC) with the 1952 Brussels Convention and the 1999 Geneva Convention, the process for a ship arrest in Turkey has become streamlined, predictable, and highly effective for foreign creditors.

1. What Constitutes a Maritime Claim?

Under Article 1352 of the TCC, a vessel can only be arrested for specific “Maritime Claims.” A foreign creditor must ensure their claim falls under these categories to qualify for a ship arrest in Turkey. Common examples include:

• Loss or damage caused by the operation of the ship.
• Salvage operations and costs.
• Costs for the supply of goods or services (bunkers, provisions, repairs).
• Crew wages and repatriation expenses.
• Disputes regarding the ownership or possession of the ship.
• Port, canal, and dock dues.

2. The Jurisdiction and Competent Courts

The Turkish legal system features specialized Maritime Courts (notably in Istanbul). If a maritime court is unavailable in a specific province, the Civil Courts of Commerce handle the proceedings. For a ship arrest in Turkey to be valid, the vessel must be physically present (or expected to arrive shortly) within Turkish territorial waters at the time of the application.

3. Procedural Steps for Executing a Ship Arrest

The process is characterized by its speed, often taking as little as 24 to 48 hours:

• The Application: The creditor files a petition for a “Precautionary Attachment” (İhtiyati Haciz). This must include prima facie evidence of the debt (invoices, contracts, etc.).
• Counter-Security (The SDR Rule): Unlike many jurisdictions that require security based on a percentage of the claim value, Turkey utilizes a fixed-rate system. For a ship arrest in Turkey, the claimant must generally provide a fixed security of 10,000 Special Drawing Rights (SDR) (approx. $13,500 USD), regardless of the claim’s total value. This is a significant advantage for creditors with high-value claims.
• Execution of the Order: Once the court issues the arrest warrant, it is delivered to the relevant Enforcement Office. They immediately notify the Port Authority and the Coast Guard to prohibit the vessel’s departure.

4. Releasing the Vessel: Security and LOU

To lift a ship arrest in Turkey, the shipowner or their P&I Club must provide sufficient security to the court:

• Cash or Bank Guarantee: A bank guarantee from a first-class Turkish bank is the standard for release.
• Letter of Undertaking (LOU): While common in international practice, a P&I Club LOU is only accepted in Turkey if the creditor explicitly agrees to it. If the creditor refuses, the shipowner must provide a bank guarantee or cash to the court’s file.

5. Time Limits and Merits of the Case

An arrest is a temporary measure. After the ship arrest in Turkey is executed, the creditor must initiate the “Proceedings on the Merits” (the main lawsuit or arbitration) within 3 days. Failure to do so will result in the automatic lifting of the arrest, and the creditor may be liable for damages caused by the wrongful detention of the vessel.

6. Why Turkey is a Preferred Forum for Ship Arrest

Foreign creditors frequently choose ship arrest in Turkey for several tactical reasons:

1. Fixed Security: The 10,000 SDR rule provides cost-predictability for the claimant.
2. The Straits Factor: Ships transiting the Turkish Straits must follow specific pilotage and reporting procedures, making them easier to track and arrest compared to vessels in the open sea.
3. Speed of Judiciary: Turkish Maritime Courts are accustomed to the urgency of shipping disputes and operate with high efficiency.

Conclusion

A ship arrest in Turkey is a formidable instrument for debt recovery, but it requires strict adherence to procedural timelines and documentation. For a foreign creditor, the combination of a low fixed-security requirement and the geographical bottleneck of the Turkish Straits makes Turkey an indispensable jurisdiction for enforcing maritime liens and claims.