On 19 June, Malta officially signed a crucial United Nations maritime convention: the UN Convention on the International Effects of Judicial Sales of Ships (the Beijing Convention), a convention aimed at providing certainty to purchasers of ships sold in judicial sales by preventing old creditors from rearresting these ships.
The Convention enhances legal certainty by ensuring that judicial sales of ships are recognized internationally, reducing the risk of conflicting legal decisions across different jurisdictions. It standardizes procedures and legal frameworks for these sales, creating predictable outcomes and clear expectations for all involved parties.
This move is expected to enhance the stability and attractiveness of the international shipping sector, one in which Malta plays a significant role. Initially signed by 15 countries, the Convention seeks to address the instability caused by illegitimate claims from old creditors.
Additional benefits of the Convention include increased investment and financing, as the legal certainty makes ships more attractive assets for financiers and investors. It also leads to more efficient dispute resolution by providing a common legal framework, reducing legal costs and delays. The Convention facilitates international trade by ensuring smoother and more secure transactions in the maritime industry.
Maritime experts highlight that the Convention will ensure increased stability, better sale prices, and more certainty for crews.
