IMO Welcomes Adoption of UN Convention on Judicial Sale of Ships

Padmesh Praabhune

IMO has welcomed the signing of the UN Convention on the International Effects of Judicial Sales of Ships which took place at a ceremony in Beijing, the People’s Republic of China, on 5th September.

IMO was represented at the signing ceremony by Jan Engel de Boer, Senior Legal Officer.

The Convention was signed by 15 countries: People’s Republic of China; Burkina Faso; Comoros; El Salvador; Grenada; Honduras; Kiribati; Liberia; Sao Tome and Principe; Saudi Arabia; Senegal; Sierra Leone; Singapore; Switzerland; and Syrian Arab Republic.

The Beijing Convention on the Judicial Sale of Ships, as it is now known, was developed by the United Nations Commission on International Trade Law (UNCITRAL) to address the problem of bonafide new owners and those financing the purchase of vessels who, for instance, find themselves dealing with previous creditors laying claim to the ship as security for a loan.

This document, which was endorsed by the UN General Assembly in December of the preceding year, has the primary objective of addressing the challenges associated with the cross-border recognition of judicial sales of ships. It serves to safeguard the interests of financial institutions involved in ship financing and to facilitate the advancement of international shipping and trade.

Delegates from 34 countries and regions participated in this event, with 15 nations and regions, including China, Switzerland, Singapore, and Saudi Arabia, being the initial signatories to the convention.

China’s Vice Minister of Commerce, Wang Shouwen, who signed the document on behalf of the country, said, “The convention has filled the gaps in relevant international rules in maritime commerce, which is conducive to reducing the transaction costs of the judicial sale of ships and will safeguard the stability of several rights, such as the ownership of ships.” He expressed optimism about the convention’s positive role in promoting ship transactions, fostering the development of the shipping industry, and enhancing global trade.

With the Convention on the International Effects of Judicial Sales of Ships having now been adopted, IMO is encouraging its Member States to ratify the agreement. Article 21 of the Convention provides that it will enter into force 180 days after the date of the deposit of the third instrument of ratification, acceptance, approval or accession.

-Marex Media