Introduction

Shipping is the lifeblood of international trade, and Egypt, through the Suez Canal and its strategic ports, plays a pivotal role in global maritime activity. With this significance comes legal complexity. When disputes arise, whether over cargo loss, charter party terms, demurrage, or vessel damage, shipping litigation becomes inevitable.

Egypt has a well-established maritime legal framework, but navigating a shipping dispute requires a strong understanding of local law, procedural nuances, and international conventions. This article outlines the key aspects of shipping litigation under Egyptian law and the strategic considerations for shipowners, charterers, cargo interests, and insurers.

1. Legal Framework and Jurisdiction

Egyptian maritime law is primarily governed by Maritime Trade Law No. 8 of 1990, which regulates contracts of carriage, charter parties, collisions, salvage, and general average. Egypt is also a party to several key international conventions, including the International Convention for the Unification of Certain Rules of Law relating to Bills of Lading (Hague Rules) and the United Nations Convention on the Carriage of Goods by Sea, 1978 (Hamburg Rules).

Shipping disputes are typically handled by the Economic Courts, which have jurisdiction over maritime claims. However, jurisdiction can also depend on the contract terms, particularly in bills of lading or charter parties, which may refer disputes to arbitration or a foreign court. Egyptian courts generally respect jurisdiction clauses but may assert jurisdiction if the dispute relates to a vessel located in Egypt or an event that occurred in Egyptian waters.

2. Common Types of Shipping Disputes

Several categories of maritime litigation frequently arise before Egyptian courts:

a) Cargo Damage or Loss

Cargo owners often sue carriers for damage or delay. Under Egyptian law, the carrier has a duty to deliver the cargo safely and on time. Defenses include force majeure, inherent defect in the cargo, or insufficient packing.

b) Charter Party Disputes

Charterers and owners frequently litigate over issues like demurrage, off-hire periods, and laytime calculations. These disputes depend heavily on the precise contract terms and the documentation exchanged between the parties, such as Statements of Facts and Laytime Reports.

c) Collision and Salvage

Collisions involving Egyptian-flagged vessels or occurring in Egyptian waters are subject to domestic regulations, with liability typically assessed based on fault and navigational rules. Salvage claims are also governed by local law unless a specific salvage contract or international convention applies.

3. Arrest of Vessels in Egypt

Egyptian law allows creditors to seek conservatory arrest of a vessel in Egyptian ports to secure maritime claims. Common grounds include unpaid charter fees, damage to cargo, or crew wage claims. The arrest process requires filing a petition supported by documentation, and the applicant must usually provide a guarantee to cover potential wrongful arrest damages.

Once arrested, the vessel cannot sail unless released by court order or by posting security (often in the form of a bank guarantee or P&I Club letter). This makes arrest a powerful tool in shipping litigation, but also one that requires precision and speed.

4. Enforcement and Arbitration

Many shipping contracts contain arbitration clauses, often referring disputes to London, Paris, or other international forums. Egyptian courts generally uphold valid arbitration clauses and can stay proceedings pending arbitration. Egypt is a signatory to the New York Convention, which means foreign arbitral awards are enforceable in Egypt, provided they do not violate public order.

Enforcement of court judgments and arbitral awards requires a clear path: legal translation, authentication, and court procedures, often through the Cairo Economic Court or the court of enforcement.

Conclusion

Shipping litigation in Egypt involves a complex mix of local maritime law, international norms, and contractual nuances. Whether you re managing demurrage disputes, arresting a vessel, or defending a cargo claim, success depends on swift action, strong evidence, and local legal knowledge.

With Egypt’s strategic maritime position, businesses involved in shipping must be prepared, not only to trade across Egyptian waters but also to resolve disputes effectively under Egyptian law.