On the 19th of June, Malta, together with six other countries signed the United Nations (UN) Convention on the International Effects of Judicial Sales of Ships (the “Beijing Convention on the Judicial Sale of Ships”), making Malta the 20th State to sign this Convention.
The Beijing Convention creates a unified framework for recognising judicial sales internationally while maintaining domestic laws on the procedures and conditions under which judicial sales confer clean title.
The Convention aims to enhance legal certainty regarding the title a purchaser acquires for a ship navigating internationally. This legal clarity is intended to increase the ship's market value and the proceeds available for distribution among creditors, thereby promoting international trade.
By ensuring that a judicial sale in one State Party confers clean title on the purchaser in all other State Parties, the Convention seeks to prevent the risk of the same ship being re-arrested for claims arising from pre-existing rights or interests.
Various maritime practitioners worldwide have described the Convention as being one of the most significant maritime conventions in recent years, offering certainty and stability in a sector responsible for 90% of the global trade.
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