Lien in Shipping: Meaning and Types

A lien is a right to hold property until a debt is paid. In shipping it appears in two main forms: the ship operator's right over the cargo, and a claim that attaches to the ship itself.

What a lien is

A lien lets a party keep something that belongs to another until what is owed has been paid. It is a security for a debt. In chartering the word is used for the right over the cargo, and for claims against the ship. The exact rights depend on the charter party and on the law that applies to it.

Cargo lien

The charter party often gives the ship operator a lien on the cargo for freight, demurrage, dead freight and other sums due under the charter. In practice this means the ship operator may refuse to release the cargo at the discharge port until these sums are paid or a satisfactory security is given. The clause is normally written so that it covers only the amounts that really belong to the voyage.

Maritime lien on the ship

A maritime lien is a claim that follows the ship, whoever owns or operates it at the time. Typical claims are unpaid crew wages, salvage and damage caused by the ship. Because the claim attaches to the ship itself, a charterer or a buyer of the ship may be affected even if they did not cause the debt. Charterers look at this when they check the ship before they agree a fixture.

Lien on sub-freights

A ship operator may also hold a lien on sub-freights and sub-hires, the money that the charterer collects from the next party in the chain. The right lets the ship operator claim that money directly if the charterer does not pay what it owes. Read the clause with care when you sub-let a ship.

Why it matters before you agree

Ask whether the charter party has a lien clause, what it covers and whether it also applies to the bill of lading. A clear clause protects the ship operator, and an unclear one can lead to a dispute at the discharge port. This page is general information, not legal advice. A maritime lawyer should read the clause in a large contract. See also the charter party and the bill of lading.

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