Some thoughts on the special maritime privilege under Maltese law and in a comparative context

Abstract

Under the provisions of the Merchant Shipping Act of Malta ships and other vessels are deemed to be a special type or class of movable property, being separate and distinct assets within the estate of their owners. The main reason for this 'ring-fencing' appears to be the protection of those creditors of the owners who have claims relating to such ships and other vessels. The law in fact states that this is 'for security of actions and claims to which the vessel is subject. ' Even in the case of the owner's bankruptcy all actions and claims to which the ship may be subject have preference on such ship over all other debts of the owner's estate. It is submitted that these provisions apply to all ships and other vessels, and not simply to those that may have Maltese nationality. It may however be presumed that they do not apply to ships and other vessels that enjoy immunity from civil process.