Typically, maritime law follows international conventions, but Brazil has unique interpretations, especially regarding maritime liens (“Privilégios Marítimos”). For shipowners and P&I Clubs, understanding Maritime Law in Brazil is critical when a vessel is navigating Brazilian waters, as an unpaid claim can lead to the arrest of the ship.
1. What Constitutes a Maritime Lien in Brazil?
Unlike US law, which recognizes a broad range of liens (including necessaries), Brazil strictly follows the Brussels Convention of 1926.
- Key Insight: Only specific claims (wages, salvage, collision damages, port dues) create a maritime lien that follows the vessel.
2. The “Supply of Necessaries” Trap
This is the most common dispute. In Brazil, supplying fuel (bunkers) or provisions does not automatically create a maritime lien. It is a personal debt of the charterer or owner.
- Risk: If you supply a charterer and they don’t pay, you might not be able to arrest the ship itself to get paid.
3. Ship Arrest Procedure
Arresting a ship in Brazil requires a court order. You must prove the “fumus boni iuris” (likelihood of success on merits) and “periculum in mora” (risk of dissipation).
- Timeline: Brazilian courts can act quickly (24-48 hours) in urgent cases, but you need a local attorney to physically file the motion.
4. Jurisdiction Clauses
Foreign jurisdiction clauses (e.g., “Disputes settled in London”) are generally respected, unless the claimant is Brazilian or the incident occurred in Brazil and public policy is at stake.
- Advice: Always have your Bills of Lading and Charter Parties reviewed for enforceability in Brazilian courts.
Doing business in Brazilian ports requires local knowledge. Don’t assume your standard international practices apply. For expert guidance on Maritime law in Brazil, cargo claims, and vessel arrests, contact the maritime specialists at Ajax Law.