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Shipping Dispute Resolution in Bangladesh: A Legal Overview

Bangladesh’s strategic position along international trade routes makes it a hub for maritime activity. However, the growing volume of imports, exports, and coastal shipping also leads to increasing legal conflicts. Whether it’s cargo loss, vessel damage, or contract breaches, shipping dispute resolution in Bangladesh plays a critical role in safeguarding commercial interests.

To resolve such issues, Bangladesh relies on a mix of domestic maritime legislation, civil procedure rules, and international best practices. Law firms like Credence LP help clients navigate these disputes effectively and protect their maritime assets.

Common Causes of Shipping Disputes

Disputes in maritime trade can arise from a variety of issues, such as:

  • Cargo loss or damage during transit

  • Breach of charter party agreements

  • Delay in delivery or port access

  • Collisions or accidents at sea

  • Crew wage or employment disagreements

  • Unpaid freight or demurrage charges

  • Pollution and marine environmental damage

Many of these issues involve high-value contracts and international parties, which makes proper legal handling essential.

Legal Framework for Maritime Disputes in Bangladesh

Merchant Shipping Ordinance, 1983

This is the primary maritime law in Bangladesh, covering:

  • Registration and regulation of Bangladeshi ships

  • Safety of vessels and crew

  • Liability in case of collisions or marine casualties

  • Ship surveys and inspections

  • Marine pollution incidents

Carriage of Goods by Sea Act, 1925

This British-era legislation still applies and governs the rights and responsibilities of cargo carriers and consignees. It applies when there is no express agreement otherwise in contracts of carriage.

Arbitration Act, 2001

This law provides the legal framework for resolving commercial disputes — including shipping disputes — through arbitration. Arbitration is commonly used in maritime contracts.

High Court (Admiralty Jurisdiction)

The High Court Division of the Supreme Court of Bangladesh has admiralty jurisdiction. This includes the power to:

  • Order vessel arrest

  • Enforce maritime liens

  • Resolve cargo claims, collision cases, and salvage issues

The court follows a mix of domestic statutes and English admiralty principles, especially where local law is silent.

Methods of Shipping Dispute Resolution

1. Negotiation & Mediation

Often the first step. Both parties may attempt to resolve issues informally or with legal assistance to avoid formal proceedings.

2. Arbitration

If the shipping contract includes an arbitration clause, the matter is referred to a panel of arbitrators. Under the Arbitration Act, 2001, both domestic and international arbitration are recognized.

3. Litigation in Admiralty Court

If alternative dispute resolution fails or isn’t agreed upon, parties can file a case in the High Court’s Admiralty jurisdiction. The court can issue orders such as:

  • Vessel arrest to secure maritime claims

  • Injunctions to prevent ship departure

  • Monetary compensation for losses

Note: Foreign shipowners or charterers with claims in Bangladesh can also invoke admiralty jurisdiction.

Why Legal Expertise Matters

Shipping disputes often involve:

  • Multiple jurisdictions

  • Complex contracts with international law clauses

  • Technical maritime knowledge (e.g., bills of lading, port handling charges)

  • Urgent matters like ship arrest before vessel departure

Without experienced maritime legal counsel, businesses risk procedural errors, delays, and financial loss.

How Credence LP Can Help

Credence LP, based in Dhaka, is experienced in admiralty and shipping law. We handle:

  • Cargo damage and insurance claims

  • Vessel arrest and High Court litigation

  • Arbitration for breach of contract

  • Port and customs-related legal issues

  • Drafting and reviewing shipping contracts

We act quickly and decisively to protect our clients’ maritime and trade interests across Bangladesh’s ports.

Frequently Asked Questions (FAQs)

Q1: Can I arrest a foreign ship in Bangladesh?
Yes, under admiralty jurisdiction of the High Court Division, if the claim is maritime in nature and the ship is within Bangladeshi waters.

Q2: How long does arbitration take?
It depends on the complexity of the case, but arbitration is usually faster than court trials and often completed within a few months.

Q3: What if the dispute involves an international party?
Bangladeshi courts and arbitrators can still resolve such disputes if jurisdiction is agreed upon in the contract or if the cause of action arose locally.

Contact Credence LP – Maritime Law Experts

For expert support with shipping dispute resolution in Bangladesh, get in touch:

External References