Asia/Pacific News
China Confirms Process for Auctioning of Arrested Bareboat Charter Vessels
China's highest court has clarified that arrested bareboat charter vessels can be auctioned off at the behest of creditors, IHS Maritime 360 reports.
At the same time, the Supreme People's Court also said that ship arrest and auction cases will be solely under the jurisdiction of the maritime courts in the provinces where the ships are located or registered.
According to Supreme People's Court judge Luo Dongchuan, rules regarding arrested bareboat charter vessels had been unclear, as there was little clarification on the auction issue.
The clarification also reportedly comes with a new set of rules which are aimed at speeding up the process, and include reducing the amount of time that second auctions must be announced to seven days instead of the original 30 days.
If there are no bidders after the second round, creditors have the option of selling the ship at a discount.
As the country's maritime industries develop, the number of ship arrests in China is expected to grow, with changes in regulations elsewhere having already begun to take place.
Late last year, it was reported that China had begun to slowly allow a some Valemaxes into the country's ports despite a regulatory ban on them that was instituted in 2011.
