Commercial and Maritime Law in China and Europe
Chapter 13
Page 183
Deficiency and Remedy of a Cargo Lien Clause under Multiple Charterparties: From the Perspective of Chinese Law
Page 183
I Introduction
In the chartering industry, the nature of a shipowner's cargo lien appears to be unquestionable, given that it is generally accepted to be a legal possessory security in China. Unlike contractual security, the creation of a cargo lien does not depend on mutual agreement between a shipowner and a charterer to a charterparty. If only the condition precedent is satisfied, including possession of the cargo and the debt is due, the law will give the shipowner a security interest on the cargo in accordance with the Chinese Maritime Code 1992 (hereinafter referred to “CMC 1992”).2