Maritime Law in Bangladesh (2026): Admiralty Claims, Ship Arrest, Shipping and Logistics

by Barrister Tahmidur Rahman | Oct 20, 2026 | Disputes & Public Law, Insights | 0 comments

TRW Insight / Bangladesh

Every ship that calls at Chattogram, Mongla or Payra brings its owners, charterers, cargo interests and lenders within reach of the Admiralty Court. Knowing which claims support an arrest, which time bars apply and which statute governs decides whether a maritime claim is secured or lost.

Updated 20 October 2026Legal insightBangladesh23 min read

Maritime law in Bangladesh: the 2026 framework

Maritime law in Bangladesh governs one of the busiest trading coastlines in South Asia. Nearly all of the country's seaborne imports and exports pass through Chattogram, Mongla and Payra, and every one of those voyages depends on a body of law that decides who owns a ship, who can arrest it, who pays when cargo is lost, and how a collision, salvage or pollution incident is resolved. For shipowners, charterers, cargo interests, banks, insurers, bunker suppliers and port users, the framework is old in places, modern in others, and unforgiving of missed deadlines.

This guide sets out the 2026 position: the Admiralty Court Act 2000, ship arrest, the Bangladesh Merchant Shipping Ordinance 1983 and the plan to replace it, the Carriage of Goods by Sea Act 1925, ports, maritime zones, ship recycling, marine insurance, casualty claims and logistics regulation, with the practical steps that protect a claim.

Maritime law in Bangladesh — container ship berthed at a busy port with gantry cranes
Chattogram, Mongla and Payra carry almost all of Bangladesh's seaborne trade

Summary: Maritime law in Bangladesh rests on a small number of core statutes: the Admiralty Court Act 2000, which makes the High Court Division the Admiralty Court; the Bangladesh Merchant Shipping Ordinance 1983 on registration, safety, seafarers, collisions, salvage and limitation; and the Carriage of Goods by Sea Act 1925, which applies the Hague Rules to outbound cargo. Port, maritime-zone, flag-protection, ship recycling and insurance statutes complete the framework.

Key point: An action in rem against a ship is available only for the claim heads and conditions the Admiralty Court Act 2000 sets out. A claimant who cannot connect the claim to the ship, its owner or a maritime lien will not hold an arrest, as the High Court Division confirmed when it vacated an arrest of bunkers at Mongla in January 2025.

At a glance

01

Admiralty Court

The High Court Division is the Admiralty Court under the Admiralty Court Act 2000, hearing claims in personam and in rem.

02

Ship arrest

An arrest follows an action in rem, which is available only for defined claim heads, maritime liens and ownership-linked claims.

03

Merchant shipping

The Merchant Shipping Ordinance 1983 still governs registration, safety, seafarers, collisions, salvage and limitation of liability.

04

Cargo claims

The Carriage of Goods by Sea Act 1925 applies the Hague Rules, with a one-year time bar, to carriage from Bangladeshi ports.

05

Ports and zones

Chattogram, Mongla and Payra operate under their own authority statutes, and maritime zones run to 200 nautical miles.

Table of Contents

Sources of maritime law in Bangladesh

Maritime law in Bangladesh is statute-led. There is no single maritime code. Instead, a handful of principal statutes divide the field, supported by rules, port regulations, international conventions given domestic effect, and the case law of the High Court Division and the Appellate Division. Because several of these statutes derive from British-era legislation, English and Indian admiralty authorities remain persuasive, and Bangladeshi judges cite them regularly alongside local precedent.

The Admiralty Court Act 2000

The Admiralty Court Act 2000 (Act No. 43 of 2000), dated 27 November 2000, repealed the Courts of Admiralty Act 1891 and ended the application in Bangladesh of the English Admiralty Court Acts of 1840 and 1861.[1] It declares the High Court Division to be the Admiralty Court, lists the questions and claims it may hear, and sets out when its jurisdiction may be exercised in personam and when in rem. The Act is in Bangla; it contemplates a notified authentic English text but provides that the Bangla text prevails in any conflict.[1]

The Merchant Shipping Ordinance 1983 and its planned replacement

The Bangladesh Merchant Shipping Ordinance 1983 (Ordinance No. XXVI of 1983) is the main regulatory statute for seagoing ships. It establishes the Department of Shipping and covers registration and nationality, ship mortgages, the engagement, wages and discipline of seafarers, passenger ships, safety and load lines, collisions, casualty inquiries, wreck and salvage, limitation of shipowners' liability and maritime liens.[2]

A replacement Bangladesh Merchant Shipping Act has been in preparation for several years, and drafts dated 2020 and 2023 have circulated. As at October 2026, however, the official Laws of Bangladesh database continues to list the 1983 Ordinance as the operative law, and we have not identified an enacted successor. Anyone relying on a "Merchant Shipping Act 2020" should check the official text first: on the record available today, the 1983 Ordinance, as amended, still governs.[2]

The Carriage of Goods by Sea Act 1925

The Carriage of Goods by Sea Act 1925 (Act No. XXVI of 1925) gives the force of law to the Hague Rules set out in its Schedule.[3] Section 2 applies the Rules to carriage of goods by sea in ships carrying goods from any port in Bangladesh to any other port, whether inside or outside Bangladesh. Section 3 excludes any implied absolute undertaking of seaworthiness, and section 4 requires every bill of lading issued in Bangladesh to state that it takes effect subject to the Rules.[3] Inbound cargo is not covered by the Act as such, so the bill of lading terms and the law it chooses matter greatly on imports.

Other statutes that complete the framework

The wider framework includes the Territorial Waters and Maritime Zones Act 1974, substantially rewritten in 2021; the Bangladesh Flag Vessels (Protection of Interest) Act 2019; the port authority statutes for Chattogram, Mongla and Payra; the Bangladesh Ship Recycling Act 2018; the Insurance Act 2010; and, for inland waterways, the Inland Shipping Ordinance 1976.[5] [6] [7] [11] Each is discussed below.

The Admiralty Court and its jurisdiction

Under section 3(1) of the Admiralty Court Act 2000, the High Court Division is the Admiralty Court.[1] Every admiralty suit is filed, heard and decided by a single-judge bench, although the Chief Justice may constitute a bench of two or more judges for a particular case.[1] In practice this means admiralty work in Bangladesh is concentrated in Dhaka, before judges assigned to the admiralty jurisdiction, regardless of where the ship lies.

The claims the Admiralty Court can hear

Section 3(2) lists the questions and claims within the jurisdiction. In summary, they cover possession and ownership of a ship and its documents; disputes between co-owners about possession, employment or earnings; mortgages or charges on a ship or its shares; damage done by a ship and damage received by a ship; loss of life or personal injury caused by defects in a ship or by the wrongful act, neglect or default of the owner, charterer or persons for whom they are responsible; loss of or damage to cargo.[1]

The list continues with claims arising from agreements for the carriage of goods or the use or hire of a ship; salvage; towage; pilotage; supply of goods or materials for a ship's operation or maintenance; construction, repair or equipment of a ship and dock charges; wages of masters and crew; disbursements by masters, shippers, charterers or agents; general average; bottomry and respondentia; and forfeiture, condemnation and droits of admiralty.[1]

Foreign ships, foreign owners and foreign mortgages

The jurisdiction is deliberately wide. Section 3(5) applies it to every ship, whether Bangladeshi or not and whether registered or not, wherever the owner resides or is domiciled, and to all mortgages and charges, legal or equitable, including those created under foreign law and whether registered or not.[1] A foreign lender holding a mortgage over a foreign-flag ship that calls at Chattogram can therefore bring its claim before the Admiralty Court, subject to proving the mortgage and its terms.

In personam and in rem

Section 4(1) provides that admiralty jurisdiction may be exercised in personam in every case, subject to the special rule for collisions in section 5.[1] An action in rem, the route that supports a ship arrest, is narrower. It is available for ownership, co-ownership and mortgage claims and for forfeiture and droits; against any ship or property subject to a maritime lien or other charge; and, for the long middle list of claims from damage by a ship through to bottomry, against the ship concerned if the person liable in personam beneficially owns all its shares when the suit is filed, or against another ship that person then beneficially owns.[1] That last limb is the basis for sister-ship arrest.

Procedure, court fees and immunity

An admiralty suit is instituted by a written, signed and verified plaint under the Code of Civil Procedure 1908. In an action in rem the defendant may be described as the owner and parties interested in the named ship or property.[1] Court fees follow the Court Fees Act 1870, but section 7 caps the fee at Tk 1,00,000 for all claims except seafarers' wage claims, where the fee is Tk 100.[1] Section 9 bars any action in rem against the Republic and any arrest, detention or sale of ships or aircraft of the armed forces, the border force, the police or the Coast Guard.[1] Our separate note on admiralty suits in Bangladesh walks through the statutory text in detail.

Maritime law in Bangladesh — merchant vessel at anchor awaiting release from arrest
An arrest holds the ship in port until security is provided

Ship arrest under maritime law in Bangladesh

Ship arrest is the remedy that gives maritime law in Bangladesh its commercial bite. A claimant files an admiralty suit in rem and applies for an order of arrest; once the order is made, the ship cannot sail until it is released by the court, usually against security. Because a detained vessel earns nothing, an arrest often produces security or settlement within days.

What a claimant must show

The first question is always whether the claim falls within an in rem category. A claim that sits within section 3(2) but cannot be connected to the ship through ownership, a maritime lien or the beneficial-ownership test in section 4(4) will support only an action in personam.[1] The claimant must also identify the correct defendant at the date the cause of action arose and the date the suit is filed, which is why current registry extracts, charter chains and ownership records should be gathered before filing.

The Schuyler Trader decision on bunker arrest

The High Court Division's order of 12 January 2025 in Admiralty Suit No. 43 of 2024 shows the limits clearly. A pool operator with unpaid freight, hire and bunker claims against a sub-charterer of other vessels obtained an arrest of the bunkers on board M.V. Schuyler Trader at Mongla on 18 December 2024. On the registered owner's application, Justice Zafar Ahmed recalled and vacated the arrest.[12]

The court held that there is no maritime lien over bunkers, applying Marine Oil Broking Co Pte Ltd v MV Daizu Maru (55 DLR 471); that bunkers cannot be arrested independently of a claim against the ship or its owner; that a contractual lien under a bunker sale contract does not bind non-parties; and that an action in rem is founded on arrest of the ship itself. It drew on English, Indian and South African authority, including M.V. Elisabeth and Peninsula Petroleum v M.V. Geowave Commander.[12] Suppliers should read our guide to bunker supplier claims in Bangladesh before acting.

Release, security and wrongful arrest

Release normally follows the provision of security acceptable to the court or the claimant, such as a bank guarantee, a cash deposit or, where the claimant agrees, a club letter of undertaking. The Act itself does not prescribe the form or amount of security, so terms are fixed by the court in each case and negotiated between the parties. Owners should challenge jurisdiction where the claim does not support an action in rem and offer security in a form that limits cost. Our briefing on vessel arrest and release in Bangladesh covers the procedural record.

Judicial arrest and regulatory detention distinguished

An admiralty arrest is different from detention by the state. Under the Merchant Shipping Ordinance 1983, an unsafe Bangladesh ship may be provisionally detained for survey, with a reference to a Court of Survey, and if there was no reasonable and probable cause for the detention the Government must pay the owner's costs and compensation.[2] Port, customs and environmental authorities hold their own detention powers, and the route to release depends on which power is used.

Most maritime claims in Bangladesh fall into a recognisable set of categories, each with its own legal basis and pressure points.

Cargo loss, damage and short delivery

Cargo claims are the most common maritime dispute. For outbound shipments, the Hague Rules in the Schedule to the 1925 Act apply. The receiver must give written notice of loss or damage at the port of discharge before or at the time the goods are removed or, if the loss is not apparent, within three days; and the carrier and the ship are discharged from all liability unless suit is brought within one year after delivery or the date when the goods should have been delivered.[4]

Liability is limited to £100 per package or unit unless the nature and value of the goods were declared and inserted in the bill of lading.[4] Our article on cargo loss and short delivery claims explains how to assemble the evidence.

Charterparty, freight and hire claims

Claims for unpaid freight, hire, demurrage and damages for breach of a charterparty are within section 3(2) as claims arising from agreements for carriage or the use or hire of a ship.[1] Many charterparties carry London or Singapore arbitration clauses, so the question is often whether the Admiralty Court can be used to obtain security in Bangladesh while the merits are decided abroad. The answer depends on the clause, the claim and the ship's ownership. See our guide to freight and charterparty claims in Bangladesh and our overview of arbitration law in Bangladesh.

Necessaries, repairs and supply claims

Ship chandlers, repairers, dry docks, agents and suppliers of goods and materials for a ship's operation or maintenance all have recognised claim heads.[1] Their difficulty is usually the in rem connection: the supplier contracted with a charterer or manager, not the owner, and the Schuyler Trader decision shows that contractual liens do not bind the ship.[12] Credit terms, owner confirmations and guarantees should be secured at the contracting stage, not after default.

Mortgage and finance claims

The Merchant Shipping Ordinance 1983 provides for registered mortgages of Bangladesh ships, the rights of mortgagees, transfer and transmission of mortgages, and the principle that a mortgage is not affected by the mortgagor's insolvency.[2] Enforcement runs through the Admiralty Court by action in rem, culminating where necessary in a judicial sale. When the court orders a sale, it can determine title to the proceeds and the priority of competing claims in the same jurisdiction.[1] Our note on registered ship mortgages and maritime lien terminology sets out the vocabulary lenders need.

Crew wages and seafarers' claims

Seafarers enjoy the strongest protection in the system. Under the 1983 Ordinance a seaman has a lien on the ship for wages that cannot be forfeited by agreement, the master has the same rights and liens for his wages, and the seaman's lien takes precedence over all other liens or charges on the ship, with the master's lien ranking next.[2] The token court fee of Tk 100 for wage claims removes any cost barrier to filing.[1]

Casualty claims: collision, salvage, pollution and personal injury

Casualties combine civil liability, regulatory inquiry and, sometimes, criminal exposure. Maritime law in Bangladesh treats each element separately, and a well-run casualty response deals with all of them from day one.

Collision

Ships within Bangladesh jurisdiction must observe the Collision Regulations made under the 1983 Ordinance, and damage arising from non-observance is treated as caused by the wilful default of the person in charge unless the circumstances justified departure from the rules.[2] After a collision the master must enter a statement in the official log. Where two or more ships are at fault, liability for damage to the ships, their cargo or property on board is apportioned in proportion to each ship's degree of fault; liability for loss of life or personal injury is joint and several, with a right of contribution between owners.[2]

Collision claims also have a special jurisdictional rule. Under section 5 of the Admiralty Court Act 2000, an action in personam for collision damage, loss of life or personal injury may be entertained only if the defendant ordinarily resides or carries on business in Bangladesh, the cause of action arose within Bangladesh's internal or territorial waters or port limits, or a related action is already pending or decided in the court, unless the defendant submits.[1] A claimant must not have an earlier action on the same facts still alive abroad.

Salvage and wreck

Salvage is recognised both as an admiralty claim and under the 1983 Ordinance.[1] Where services are rendered in saving life from a Bangladesh ship within territorial waters, in assisting a vessel wrecked, stranded or in distress on or near the coast, or in saving wreck, the owner of the vessel, cargo or wreck must pay a reasonable sum having regard to all the circumstances, and life salvage ranks ahead of other salvage claims.[2]

Salvage disputes are decided by the District Judge where the amount claimed does not exceed Tk 1 lakh and by the High Court Division above that figure.[2] The Ordinance also provides for Receivers of Wreck, who take charge of wrecked and stranded vessels and wreck found on the coast.[2]

Marine pollution

Since the 2021 amendments, the Territorial Waters and Maritime Zones Act 1974 carries a modern pollution regime. Discharging prohibited pollutants, discharging in breach of the Act or above the standard, and failing to take immediate measures after a pollution incident are punishable by up to three years' imprisonment, a fine of Tk 2 crore to Tk 5 crore, or both.[5] Where a foreign vessel or installation fails or neglects to take measures to prevent marine pollution, the master or person in charge faces up to five years' imprisonment or a fine of not less than Tk 10 crore.[5]

Offences are tried by a Maritime Tribunal, which must dispose of a case within 180 days of filing.[5] Pollution exposure is therefore personal to the master as well as financial for the owner and its P&I club.

Personal injury and loss of life

Claims for loss of life or personal injury caused by a defective ship or by the wrongful act, neglect or default of those operating it, including in loading, discharging or embarking passengers, fall within section 3(2) of the 2000 Act.[1] Port workers, stevedores, crew and passengers may all bring such claims, and where several ships are at fault liability is joint and several.[2]

Casualty inquiries and limitation of liability

Part X of the 1983 Ordinance provides for preliminary inquiries into shipping casualties and, where the Government directs, judicial inquiries by an empowered court, which may examine charges of incompetency or misconduct against masters, mates and engineers.[2] In parallel, an owner may limit liability for loss of life, personal injury or property damage caused without its actual fault or privity, and may apply to the Supreme Court where several claims are made or apprehended. For this purpose "owner" includes the charterer, manager and operator.[2] On inland waters, Marine Courts constituted under the Inland Shipping Ordinance 1976 try offences connected with casualties.[2]

Maritime law in Bangladesh — tug assisting a vessel in coastal waters after a casualty
Collision, salvage and pollution each carry their own rules

Ports of Bangladesh: Chattogram, Mongla and Payra

Port law is a distinct layer of maritime law in Bangladesh. Each major port has its own authority and statute, which control pilotage, berthing, charges, port limits and the leasing of terminals and land.

The port authority statutes

Chattogram, the country's principal port, is governed by the Chattogram Port Authority Act 2022 (Act No. 8 of 2022), which replaced the Chittagong Port Authority Ordinance 1976.[8] Mongla, on the Pasur river in the south-west, operates under the Mongla Port Authority Act 2022 (Act No. 7 of 2022), passed on the same day, 13 April 2022.[9] Payra, in Patuakhali, was established under the Payra Port Authority Act 2013 (Act No. 53 of 2013).[10]

The 2021 maritime zones amendments treat the outermost permanent harbour works of Chattogram, Mongla, Matarbari and Payra, with their outer anchorages, as part of the coast for delimiting the territorial sea.[5] Our note on the Matarbari territorial sea context explains why that matters for the new deep-sea port.

Terminal concessions in 2025 and 2026

The ports are opening to foreign terminal operators. On 8 October 2026 the Chittagong Port Authority signed a 15-year concession with DP World to operate the New Mooring Container Terminal and its overflow yard, with a reported upfront payment of US$50 million and a US$150 million modernisation commitment; the Shipping Minister, Shaikh Rabiul Alam, has stressed that the port authority keeps ownership and that harbour management, security and customs remain with the state.[14] APM Terminals began construction of the US$550 million Laldia container terminal on 31 August 2026, designed for ships of up to 6,000 TEU.[14] For contractors, lenders and port users, these concessions add a new layer of contract to the statutory framework.

Maritime zones and international boundaries

The Territorial Waters and Maritime Zones Act 1974, as amended by Act No. XXIX of 2021, now expressly references the United Nations Convention on the Law of the Sea 1982.[5] The territorial sea extends 12 nautical miles from the territorial sea baseline, the contiguous zone to 24 nautical miles, and the exclusive economic zone to 200 nautical miles, with provision for the continental shelf beyond 200 nautical miles where the continental margin extends further.[5] These limits were settled following the resolution of Bangladesh's maritime boundaries with Myanmar and India through international adjudication.

Civil jurisdiction over foreign ships

The 2021 amendments also address civil arrest at sea. The Government may not stop or divert a foreign ship merely passing through the territorial sea in order to exercise civil jurisdiction over a person on board, and may arrest such a ship for civil proceedings only for obligations incurred by the ship in the course of that passage. That restriction does not affect the right to arrest a foreign ship lying in internal waters or in the territorial sea, or passing through after leaving internal waters.[5] In practice, arrests are made against ships in port or at the outer anchorages, which sit within that permitted zone.

Resources, research and offences at sea

Exploring or exploiting resources in the exclusive economic zone or on the continental shelf requires Government authority, and breaches carry minimum fines of Tk 10 crore.[5] The Act also criminalises piracy, maritime terrorism and armed robbery at sea.

Ship recycling under the Bangladesh Ship Recycling Act 2018

Bangladesh is one of the world's largest ship recycling destinations, centred on the Sitakunda coast north of Chattogram. The Bangladesh Ship Recycling Act 2018 (Act No. 8 of 2018), dated 12 February 2018, regulates the industry.[6] The Government declares ship recycling zones, a yard may be established only with Government permission, and a ship imported or locally sourced for recycling may be recycled only after the Bangladesh Ship Recycling Board issues a no-objection certificate and the required clearances.[6] Yard owners must take out life insurance for every worker in the yard, and establishing a yard without permission or recycling without a no-objection certificate are offences.[6]

The international layer now matters as much as the domestic one. Bangladesh deposited its instrument of accession to the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships on 26 June 2023, and the Convention entered into force on 26 June 2025.[13] Sellers, cash buyers and yards should align sale contracts and recycling documentation with both the Act and the Convention.

Maritime law in Bangladesh — ship recycling yard on the coast
Recycling now answers to the 2018 Act and the Hong Kong Convention

Marine insurance and P&I in Bangladesh

Marine insurance sits at the edge of maritime law in Bangladesh, which has no standalone marine insurance statute. Marine cargo and hull policies are written under the Insurance Act 2010 (Act No. 13 of 2010) and regulated by the Insurance Development and Regulatory Authority, and English marine insurance principles and policy wordings are widely used in practice.[11]

The local insurance rule

Section 19 of the Insurance Act 2010 prohibits any person from insuring abroad a risk relating to property or an interest in Bangladesh unless the Authority certifies that the risk cannot be covered in Bangladesh; the Authority may grant exemptions, and must communicate any refusal within 15 days of the application.[11] Importers and project owners therefore usually place marine cargo cover locally, with reinsurance placed abroad under the Act's reinsurance provisions.

Insurance in claims and casualties

On the liability side, shipowners' protection and indemnity cover is provided by international P&I clubs, whose letters of undertaking are a common form of security for releasing an arrested ship when the claimant accepts them. The 1983 Ordinance confirms that insurance against events for which an owner's liability is limited is not invalid by reason of the nature of the risk.[2] Subrogated cargo insurers bring a large share of cargo claims in the Admiralty Court, and must therefore manage the same one-year Hague Rules time bar as the cargo owner.[4]

Transport and logistics regulation

Maritime law in Bangladesh also shapes the commercial logistics chain, from cargo reservation for national-flag ships to inland waterway transport and the contracts that tie them together.

Cargo reservation for Bangladesh-flag ships

The Bangladesh Flag Vessels (Protection of Interest) Act 2019 (Act No. 18 of 2019) repealed the 1982 Ordinance and provides that at least 50 per cent of cargo carried by sea in Bangladesh's foreign trade must be carried by Bangladesh-flag vessels, subject to exceptions for bilateral arrangements, general exemptions, routes not served by national-flag ships, and waiver certificates.[7] An application for a waiver must be made at least 15 working days before loading, and cargo carried with public funds must move through a state-owned shipping organisation.[7] Traders and freight forwarders who ignore the waiver procedure risk delay at the worst possible moment.

Inland and coastal shipping

Inland vessels, including the lighterage fleet that links seaports with river terminals across the delta, are regulated separately under the Inland Shipping Ordinance 1976, with Marine Courts trying offences under that Ordinance.[2] The 1983 Ordinance restricts foreign sailing vessels from the coasting trade of Bangladesh without the Government's written permission.[2]

Logistics contracts, customs and trade compliance

For importers and exporters, the legal risk usually sits in the contracts: bills of lading, sea waybills, forwarding terms and terminal tariffs, many with foreign law and forum clauses. Customs clearance is governed by customs law, but delays at that stage frequently drive demurrage and detention claims. Our ports, terminals and maritime infrastructure practice works alongside our maritime team on those points.

Bringing or defending a maritime claim: step by step

Whatever the claim, the same discipline protects a position under maritime law in Bangladesh. The sequence below reflects how we prepare a claim before the ship leaves port.

Step 01

Secure the facts

Collect the bill of lading, charterparty, invoices, survey reports, log extracts and correspondence while the ship and witnesses are still available.

Step 02

Identify the ship and its owner

Check the registry, IMO records and charter chain to confirm who owned and operated the ship when the claim arose and today.

Step 03

Classify the claim

Match the claim to a head in section 3(2) of the Admiralty Court Act 2000 and test whether it supports an action in rem.

Step 04

Check every time bar

Calendar the Hague Rules one-year limit, contractual notice periods and arbitration deadlines, and agree written extensions where needed.

Step 05

Read the dispute clause

Confirm whether the contract requires arbitration or a foreign court, and whether security can still be sought in Bangladesh.

Step 06

File and seek arrest

Present a verified plaint in the High Court Division and apply for arrest before the ship sails, with the Marshal ready to serve.

Step 07

Negotiate security

Agree a bank guarantee, cash deposit or club letter of undertaking in a form and amount that protects the claim.

Step 08

Run the merits

Pursue the suit or arbitration to judgment or award, then enforce against the security or the sale proceeds.

Two points run through every step. First, time bars in maritime matters are short and strict, and negotiations with a carrier or its club do not stop them running unless an extension is agreed in writing. Second, the ship is mobile: evidence, ownership records and security should be lined up before filing, so that an arrest order can be served before the vessel sails.

Organisations that administer the system

Knowing which public body holds the relevant power often decides how quickly a problem is solved.

Admiralty

High Court Division

Sits as the Admiralty Court, hears in personam and in rem claims, orders arrest, release and judicial sale.

Regulator

Department of Shipping

Administers the Merchant Shipping Ordinance 1983, ship registration, seafarers, surveys and casualty inquiries.

Port

Chittagong Port Authority

Runs the country's principal seaport under the Chattogram Port Authority Act 2022 and grants terminal concessions.

Port

Mongla and Payra Port Authorities

Administer the south-western and southern seaports under their own authority statutes.

Recycling

Bangladesh Ship Recycling Board

Issues no-objection certificates and clearances for ships imported or sourced for recycling.

Insurance

Insurance Development and Regulatory Authority

Regulates insurers and certifies when a Bangladesh risk may be insured abroad.

Comparing the main maritime claims

The table below compares the main categories of claim, their legal basis and the route to security. On a phone, scroll it sideways.

Main maritime claims in Bangladesh: basis, forum and route to security
ClaimLegal basisForumAction in rem?Key point
Cargo loss or damageAdmiralty Court Act 2000 s 3(2); COGSA 1925 and Hague RulesHigh Court Division (Admiralty)Yes, if owner or charterer liable owns the shipOne-year suit time bar; three-day notice for hidden damage
Charterparty, freight and hireAdmiralty Court Act 2000 s 3(2)Admiralty Court or arbitral tribunalYes, subject to the ownership testArbitration clauses common; security still possible
Necessaries and repairsAdmiralty Court Act 2000 s 3(2)High Court Division (Admiralty)Only where the owner is liableContractual liens do not bind the ship
MortgageMerchant Shipping Ordinance 1983; Admiralty Court Act 2000High Court Division (Admiralty)YesForeign and unregistered mortgages within jurisdiction
Crew wagesMerchant Shipping Ordinance 1983; Admiralty Court Act 2000High Court Division (Admiralty)Yes, maritime lienSeaman's lien ranks first; Tk 100 court fee
CollisionMerchant Shipping Ordinance 1983; Admiralty Court Act 2000 s 5High Court Division (Admiralty)YesLiability apportioned by fault
SalvageMerchant Shipping Ordinance 1983 s 468District Judge up to Tk 1 lakh; High Court Division aboveYesLife salvage ranks first
Pollution offenceTerritorial Waters and Maritime Zones Act 1974 (2021)Maritime TribunalNot applicable (criminal)Fines from Tk 2 crore; master personally exposed

The role of a maritime and admiralty law firm

A firm practising maritime law in Bangladesh does three jobs. The first is urgent: obtaining or resisting an arrest, negotiating security and coordinating with P&I correspondents, surveyors and port authorities while the ship is in port. The second is contentious: admiralty suits, limitation actions, salvage disputes and appeals, and local security for foreign arbitration. The third is advisory: charterparties, bills of lading, ship sale and recycling contracts, mortgages, terminal agreements and insurance programmes, drafted so that the dispute never happens or is won on paper.

TRW acts for owners, charterers, cargo interests, lenders, insurers and suppliers across all three. Where a maritime dispute is heading to arbitration, our international arbitration practice runs the proceedings and the enforcement of any award in Bangladesh, and our shipping finance and ship leasing team handles ship finance enforcement and guarantee disputes.

What to watch in maritime law in Bangladesh in 2026 and beyond

Three developments will shape the next year. First, any new merchant shipping statute, which will need careful reading for changes to registration, liens and limitation. Second, the port concession programme, which will put foreign operators' contract terms at the centre of port-user disputes.[14] Third, enforcement of the Hong Kong Convention, which will test the documentation and compliance of every recycling sale into Bangladesh.[13]

When a ship, cargo or claim is at stake, the first forty-eight hours usually decide the outcome. If you need advice on an arrest, a casualty or a maritime contract, contact TRW for a prompt review.

Frequently asked questions

Which court hears maritime claims in Bangladesh?

The High Court Division of the Supreme Court sits as the Admiralty Court under section 3(1) of the Admiralty Court Act 2000. Cases are normally heard by a single judge.[1]

What are the main sources of maritime law in Bangladesh?

The Admiralty Court Act 2000, the Bangladesh Merchant Shipping Ordinance 1983 and the Carriage of Goods by Sea Act 1925, supported by the maritime zones, port authority, flag vessel, ship recycling and insurance statutes.[1] [2] [3]

Has the Merchant Shipping Ordinance 1983 been replaced?

Not on the official record available in October 2026. Draft merchant shipping bills have circulated, but the Laws of Bangladesh database still lists the 1983 Ordinance as the operative law. Check the current text before relying on any draft.[2]

Can I arrest a foreign ship in Bangladesh?

Yes, if the claim supports an action in rem. The Admiralty Court's jurisdiction extends to ships whether Bangladeshi or not and wherever the owner resides, and a foreign ship lying in internal waters or the territorial sea may be arrested for civil proceedings.[1] [5]

Is sister-ship arrest available?

For many claims, yes. Section 4(4) of the Admiralty Court Act 2000 allows an action in rem against another ship beneficially owned, when the suit is filed, by the person liable in personam.[1]

Can bunkers be arrested separately from the ship?

Generally not. In January 2025 the High Court Division vacated an arrest of bunkers at Mongla, holding that there is no maritime lien over bunkers and that they cannot be arrested independently of a claim against the ship or its owner.[12]

What is the time limit for a cargo claim?

Where the Hague Rules apply under the 1925 Act, suit must be brought within one year after delivery or the date the goods should have been delivered, and notice of non-apparent damage must be given within three days.[4]

What is the court fee for an admiralty suit?

Court fees follow the Court Fees Act 1870 but are capped at Tk 1,00,000 for most admiralty claims, and seafarers' wage claims carry a fee of Tk 100.[1]

Must marine cargo insurance be placed in Bangladesh?

Usually. Section 19 of the Insurance Act 2010 bars insuring abroad a risk relating to property or an interest in Bangladesh without a certificate from the regulator that the risk cannot be covered locally.[11]

Which law governs ship recycling in Bangladesh?

The Bangladesh Ship Recycling Act 2018, administered by the Bangladesh Ship Recycling Board, together with the Hong Kong Convention, which Bangladesh joined in 2023 and which entered into force on 26 June 2025.[6] [13]

Source register

Primary legal and regulatory sources

Materials checked on 20 October 2026. Confirm the current official text before relying on any provision.

  1. Admiralty Court Act 2000 (Act No. 43 of 2000) — Laws of Bangladesh
  2. Bangladesh Merchant Shipping Ordinance 1983 (Ordinance No. XXVI of 1983) — Laws of Bangladesh
  3. Carriage of Goods by Sea Act 1925 (Act No. XXVI of 1925) — Laws of Bangladesh
  4. Carriage of Goods by Sea Act 1925, Schedule (Hague Rules) — Laws of Bangladesh
  5. Territorial Waters and Maritime Zones Act 1974, as amended by Act No. XXIX of 2021 — Laws of Bangladesh
  6. Bangladesh Ship Recycling Act 2018 (Act No. 8 of 2018) — Laws of Bangladesh
  7. Bangladesh Flag Vessels (Protection of Interest) Act 2019 (Act No. 18 of 2019) — Laws of Bangladesh
  8. Chattogram Port Authority Act 2022 (Act No. 8 of 2022) — Laws of Bangladesh
  9. Mongla Port Authority Act 2022 (Act No. 7 of 2022) — Laws of Bangladesh
  10. Payra Port Authority Act 2013 (Act No. 53 of 2013) — Laws of Bangladesh
  11. Insurance Act 2010 (Act No. 13 of 2010) — Laws of Bangladesh
  12. Supreme Court of Bangladesh, High Court Division — Admiralty Suit No. 43 of 2024 (M.V. Schuyler Trader), order of 12 January 2025
  13. International Maritime Organization — Hong Kong Convention set to enter into force (Bangladesh and Liberia accessions)
  14. Maritime Gateway, 10 October 2026 — NCT concession keeps ownership with Bangladesh, says shipping minister

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