No, the vessel generally cannot be arrested for the charterer's unpaid debts unless said debts can be considered as a maritime lien.

The following are some of the recognized maritime liens under Philippine law: crew wages, general average, ship repairs, supplies, salvage/ towage, use of dry dock or marine railway, and other necessaries. It is necessary that these were furnished to and for the benefit of the vessel, and were provided upon order of Owner or a person authorized by the Owner.

No, the court only accepts either cash or a surety bond.

It depends on whose name the bill of lading was issued. If bill of lading was issued in the name of the Owners, the charterers cannot be sued as the latter cannot be considered as a party to the contract of carriage because the identity of the charterers is not stated and not provided in the Owner's Bill of Lading. On the other hand, in a bill of lading issued in the name of the Charterers, the Owners can be sued because the latter is considered a party to the contract of carriage considering that the name of the vessel is mentioned therein. The practice in the Philippines is to implead the Owners as "Unknown Owners" if identity cannot be determined in the first instance.

The time limit is one year from date of delivery or the date when the cargo should have been delivered.

No. Under Philippine law, negligent Owners shall be liable for all the damages which are the natural and probable consequence of the act or omission complained of, which may include loss of profits.

No convention applies as the Philippines has not ratified any of them. However, the Philippines applies some principles of the Hague Rules as the US Carriage of Goods by Sea Act (US COGSA 1936) was adopted as part of domestic law.

Under general law (Civil Code of the Philippines, Article 1146), an action based on negligence (quasi-delict) must be instituted within four (4) years from the time the cause of action accrues.

In crew claims, the action must be brought within three (3) years from the time the cause of action accrues provided the negligence arises from an employer-employee relationship.

Article 1144 of the Civil Code of the Philippines provides that an action to enforce a judgment shall prescribe in 10 years. As the law makes no distinction, it is submitted that a foreign judgment or arbitration award is covered by this provision.

Yes. The lien on the goods can be exercised for the payment of (1) freightage, (2) expenses (including lighterage and averages when applicable) and (3) duties arising from the carriage of the goods

Yes. The lien can be exercised as long as the cargo is in the actual possession of the vessel.

Please note that credits for transportation of the goods carried, for the price of the contract and incidental expenses shall constitute a preferred claim or lien on the goods carried until their delivery and for thirty (30) days thereafter. During this period, the sale of the goods may be requested, even though there are other creditors and even if the shipper or consignee is insolvent. But this right may not be made use of where the goods have been delivered and were turned over to a third person without malice on the part of the third person and for a valuable consideration.

Generally, lien over cargo is in the nature of a possessory lien. If the cargo is delivered to the consignee, the lien over the cargo is lost. However, the lien over the cargo can still be exercised if the said cargo is still in the custody of the Bureau of Customs and the lien is for freight, lighterage or general average.

Generally it is not possible. Only in instances where the debt is for unpaid freightage or expenses (including lighterage or general average) can the Bureau of Customs withhold delivery of cargoes on the strength of a valid notice of lien filed by the carrier.

In cases not covered by the foregoing, court action is likely required and the cargo has to be attached. In the event the court allows the attachment of the cargo, the attaching party is required to post security in the form of an attachment bond.

For Filipino Crew Members:

Under the POEA Standard Employment Contract, the prescriptive period to claim disability benefits for injuries sustained by a crew member aboard the vessel is three (3) years from the time the cause of action accrues;

An action based on tort, for alleged negligence of the vessel owners, must be instituted within four (4) years from the time the cause of action accrues.

For Passengers:

An action based breach of contract of carriage must be instituted within ten (10) years from the time the cause of action accrues;

On the other hand, if the cause of action is based on tort, the prescriptive period is four (4) years.

Article 1144 of the Civil Code of the Philippines provides that an action to enforce a judgment shall prescribe in 10 years. As the law makes no distinction, it is submitted that a foreign judgment or arbitration award is covered by this provision.

The Court recognizes as valid and binding any receipt, release and quitclaims or indemnities and hold-harmless letters executed by the contracting parties as long as these agreements were voluntarily and freely entered into, with full understanding of what they were executing.

However, insofar as receipt, release and quitclaims are concerned, the court also requires the consideration for the quitclaim to be credible and reasonable for said agreement to be considered as valid and binding.

The Court also expressly sanctions the presence of forum-selection clause in the contract of employment. In fact the POEA Standard Employment Contract for Filipino seafarers serving on-board-ocean-going vessels contain a forum selection clause which is binding on the parties.

As a general rule, it is not possible to disembark and repatriate stowaways.

Under a Memorandum of Bureau of Immigration dated 12 April 1999, stowaways are not allowed to disembark, and shall be deported aboard the same ship which brought them within the jurisdiction of the Philippines.

However, on very exceptional circumstances, the Bureau of Immigration allows disembarkation and repatriation depending on the stowaway's nationality.

For stowaways, a fine of Php50,000.00 (about US$1,000.00) is imposed for each stowaway brought into the Philippines. Further, immigration guards are posted and the Owner is liable to pay their fees (about US$100.00 a day per guard).

Also, the Commissioner of Immigration may withhold the clearance of a vessel when there are findings of violation of the laws on immigration until determination of questions of the liability to the payment of the fine or actual payment of imposed fines.

If a stowaway escapes, the Owner is liable to pay for the costs of locating / recovering the stowaway and other related expenses.

In case of desertion of a crewmember, the crewmember shall be treated as an illegal alien and shall be penalized in accordance with the general laws on Immigration.

Note that a fine of Php50,000.00 is imposed for every instance and for each person (ie illegal alien on board) not prevented by the master, agent, owner or consignee of any vessel to land on the Philippines.

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