Attachment of Cargo

Cargo attachment is a preservation measure taken by the interested parties (such as the shipowners) to protect their own rights.

Conditions for Attachment
a The cargo shall be owned by the party liable;
b The value of the cargo against which an attachment is applied for shall be equal to the amount of the claim;
c A counter security to the satisfaction of the court is usually required by the court.

If the person against whom the claim is made fails to provide security, there is a risk for the cargo to be auctioned.

Time Limit
The time limit for cargo attachment is 15 days. Where the claimant brings a lawsuit or applies for arbitration within 15 days or, the cargo attachment is made in the process of litigation or arbitration, the period of cargo attachment is not limited by such 15 days.

Risks
The claimant who has wrongly applied for cargo attachment shall indemnify the interested party for the losses incurred thereby.