Lien on Sub-Freight for Unpaid Freight: The Perspective of Singapore Law and Its Applicability in Indonesia

Abstract

Charter party chains are prevalent in shipping practices of today. Unfortunately, non-payment of freight - which is harmful to ship owners - is also a common occurrence. To accommodate this, ship owners need a robust protection scheme under charter parties, especially in the charter party chains situation. The protection for shipowners under a charter party is necessary to create a safe environment for the shipping industries. In tackling this unresolved problem of unpaid freight, the current ship-owners protection scheme under Indonesian law is considered archaic in light of the evolution of international shipping practice. To this note, Singaporean law on the other hand extensively protects the ship-owner from unpaid freight in a more specific, definitive way by acutely following the development of shipping practices. One of the most popular remedies a shipowner can resort to in the case of unpaid freight under a charter party chain is the application of lien on sub-freight. Such modern approach has led Singapore to become the world’s maritime hub. Therefore, the Author finds it to be of interest to compare Indonesian law with Singaporean law in the application of lien on sub-freight for unpaid freight in a charter party.