Yew Huoi, How & Associates | Leading Malaysia Law Firm

MARITIME LAW – PORT CHARGES – BERTH AND BILL – COURT ANCHORS LIABILITY FOR PORT DUES ON IDLE VESSEL

1. Summary and Facts

Marina Developments Ltd v Owner(s) of “SY Explorer” [2025] 1 Lloyd’s Rep 428 concerns a dispute over unpaid berthing charges between the Port Authority (plaintiff) and the owners of the vessel SY Explorer (defendant). The vessel had been berthed at the port for an extended period, during which time it failed to pay accumulated port and berthing dues. The Port Authority initiated proceedings to recover the charges, asserting its statutory right to impose and collect such dues under applicable port regulations. The owners disputed liability, raising issues regarding the alleged abandonment of the vessel, quantum of charges, and enforcement procedures.

2. Legal Issues

• Whether the Port Authority was entitled to claim berthing and port charges from the owners of the SY Explorer under the governing port laws.
• Whether the vessel had been abandoned, thus disentitling the port to continue charging berthing fees.
• Whether the Port Authority followed proper legal procedures in notifying and pursuing recovery.

3. Court’s Findings

• The Court ruled in favor of the Port Authority.
• The port has a statutory right to impose and recover charges for berthing and related port services, regardless of the duration the vessel remains in port.
• The vessel was not deemed abandoned under the law, as there was no formal notice or legal process initiated by the owners to disclaim responsibility.
• The port had duly followed applicable procedures in claiming arrears, and the charges were calculated according to published tariffs and schedules.

4. Practical Implications

This judgment affirms the Port Authority’s rights under maritime and port regulations to enforce the recovery of berthing fees and other port-related charges:
• Vessel owners should be vigilant about ongoing port dues, particularly when vessels remain idle or unattended.
• Berthing charges will continue to accrue unless formal abandonment procedures are triggered and accepted by port authorities.
• Port authorities must adhere to procedural requirements in claiming outstanding dues, including proper notice and quantification.

This case serves as a clear reminder of the ongoing financial obligations tied to vessel berthing and the enforceability of port dues under statutory frameworks.

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