Charter parties and shipping contracts
Charter party disputes with a Turkish connection: securing the claim by arrest, enforcing an LMAA or other foreign award under the New York Convention, and the one-year time bar. Practice areas are listed; no claim of specialisation is made.
Written forOwners · Charterers · Brokers · P&I and FD&D clubs
Articles cited checked against the official text of the legislation · 17 September 2026
Which disputes end up in Turkish courts?
- Charter disputes reach Türkiye at two points: arresting a vessel here to secure the claim, and enforcing the award against a Turkish party or its assets.
- A London arbitration clause does not prevent a Turkish arrest (TCC art. 1356).
- Foreign awards are enforced under the New York Convention, which Türkiye joined in 1992; the court does not review the merits.
- Every claim under a charter or bill of lading is time-barred one year after it falls due (TCC art. 1246).
Most charter party disputes with a Turkish connection are decided elsewhere — in London arbitration under the clause the parties chose — and reach Türkiye at one of two points: when a vessel has to be arrested here to secure the claim, or when the award has to be enforced against a Turkish owner, charterer or their assets. Both are Turkish-court matters, and both are governed by rules that do not change with the law of the contract.
The Turkish Commercial Code recognises the same contract types the market uses:
| Contract | What the Code says | Rule |
|---|---|---|
| Bareboat charter | The owner gives the charterer the use of the vessel for a period | TCC art. 1119 |
| Time charter | The owner places the commercial management of a manned vessel with the charterer for a period while keeping technical management and possession | TCC art. 1131 |
| Contract of carriage by sea | A voyage charter of the whole or part of the vessel, or a contract for the carriage of particular goods | TCC art. 1138 |
| Bill of lading | Governs the relationship between the carrier and the holder; the charter party governs that between carrier and charterer | TCC art. 1237 |
Securing the claim by arrest
- A claim under any contract for the use or hire of a vessel, or for the carriage of goods, is a maritime claim whether or not a charter party was signed (TCC art. 1352).
- The procedure, the 10,000 SDR security and the one-month limit for starting proceedings are on the ship arrest page.
Read the full section
A claim under any contract for the use or hire of a vessel, or for the carriage of goods, is a maritime claim whether or not a charter party was signed (TCC art. 1352). It can therefore be secured by arresting the vessel in a Turkish port, and the Turkish court is competent to order the arrest even though the contract provides for arbitration or a foreign court and even though foreign law governs the merits (TCC art. 1356).
Which vessel depends on who is liable
- Owner against charterer — unpaid hire. The chartered vessel cannot be arrested: that is the owner's own ship. A vessel the charterer owns can be, because a vessel belonging to the person liable may be arrested where that person was the bareboat, time or voyage charterer of the vessel concerned when the claim arose (TCC art. 1369(2)).
- Charterer against owner — breach, off-hire, damage to cargo. Secured by arresting the chartered vessel herself if the owner still owns her (TCC art. 1369(1)).
The security the owner gives to free the vessel is the fund from which the award will later be paid.TCC art. 1360 — the arrest court enforces the award while the vessel or the security is within its reach
The procedure, the 10,000 SDR security and the one-month limit for starting proceedings are on the ship arrest page.
Enforcing a foreign award or judgment
- An LMAA or other foreign award in a shipping dispute — a commercial matter, rendered in a contracting state — is therefore enforceable in Türkiye through the Turkish courts.
- Most of these are for the defendant to prove (Private International Law Act, art. 62).
- A judgment of a foreign court on a charter party or a bill of lading is enforced under the same Act's provisions on foreign judgments; the general procedure for enforcing foreign judgments in Türkiye is set out on our sister site, Lexin Legal.
Read the full section
An LMAA or other foreign award in a shipping dispute — a commercial matter, rendered in a contracting state — is therefore enforceable in Türkiye through the Turkish courts.
Where and how
- Court. The civil court of first instance at the place the parties agreed in writing or, absent agreement, at the defendant's domicile in Türkiye, failing that its residence, failing that the place where assets capable of enforcement are located (Private International Law Act, art. 60).
- Petition. Accompanied by the original or certified copy of the arbitration agreement or clause, the original or certified copy of the award showing that it is final, enforceable or binding, and certified translations of both (Private International Law Act, art. 61).
- Where a vessel is already under arrest. The arrest court is itself competent to enforce the award while the vessel is in its district or the release security is with the court (TCC art. 1360).
What the Turkish court may refuse
The court does not review the merits. It refuses enforcement only on the grounds listed in the Act (Private International Law Act, art. 62):
- no arbitration agreement or clause;
- an award contrary to morality or public order;
- a subject matter not arbitrable under Turkish law;
- a party not duly represented before the arbitrators and not having ratified the proceedings;
- a party not properly notified of the appointment of the arbitrators or deprived of the right to be heard;
- an arbitration agreement invalid under the law chosen by the parties or, failing that, the law of the seat;
- arbitrators appointed or procedure conducted contrary to the parties' agreement or the law of the seat;
- an award going beyond the agreement, as to that part;
- an award not yet final, binding or enforceable under the law of the seat, or set aside there.
Most of these are for the defendant to prove (Private International Law Act, art. 62). Recognition of a foreign award follows the same rules (Private International Law Act, art. 63).
Judgments of foreign courts
A judgment of a foreign court on a charter party or a bill of lading is enforced under the same Act's provisions on foreign judgments; the general procedure for enforcing foreign judgments in Türkiye is set out on our sister site, Lexin Legal. Where the judgment concerns a maritime claim secured by an arrest here, TCC art. 1360 again gives the arrest court competence.
- Award final and binding under the law of the seatPrivate International Law Act, art. 61
Apostille and sworn translationart. 61
Petition to the civil court of first instanceart. 60
Closed list of refusal grounds; no review of the meritsart. 62
Executed like a Turkish judgment — against arrest security where a vessel was heldTCC art. 1360
Türkiye has been a party to the New York Convention since 30 September 1992 (UNCITRAL status list, checked 17 September 2026).
Disputes decided in Türkiye
Not every charter dispute goes to London. Where the contract has no arbitration clause, or the clause is invalid, or the parties agree, the Turkish commercial courts decide, applying the law chosen in the contract or, absent a choice, the law designated by the Private International Law Act. The Code's own rules then supply the framework:
- laytime and demurrage (TCC arts 1154–1155, 1170–1171);
- the carrier's lien on the cargo for freight and demurrage (TCC art. 1201);
- the relationship between charter party and bill of lading (TCC art. 1237);
- the one-year time bar (TCC art. 1246).
The disputes that arise most often with a Turkish party on one side
- Unpaid hire and bunker balances on redelivery.
- Demurrage at Turkish ports, where the terminal's records and the harbour master's log decide the timeline.
- Cargo damage claimed by receivers against a time-chartered vessel, where the bill of lading, the charter party and the identity of the carrier (TCC art. 1238) decide who answers.
- Enforcement of an award or judgment against a Turkish company that has stopped paying.
Documents we need from you
- Charter party, recap and any addenda
- Bills of lading, statements of facts, notices of readiness and time sheets
- Hire statements, bunker surveys and the correspondence on the balance claimed
- Arbitration agreement or clause and the award, with certified translations, for enforcement
- Vessel name, IMO number and, if a vessel is to be arrested, where she is now
- Company documents and signatory details; power of attorney in the form Turkish courts accept
Common questions
Can an LMAA award be enforced in Türkiye?
Yes. Türkiye acceded to the New York Convention with effect from 30 September 1992, with the reciprocity and commercial reservations (UNCITRAL status list, checked 17 September 2026). Enforcement is sought from the civil court of first instance at the defendant's domicile or where its assets are (Private International Law Act, art. 60), with the arbitration agreement, the award and certified translations (Private International Law Act, art. 61); the court may refuse only on the listed grounds and does not review the merits (Private International Law Act, art. 62).
We have a London arbitration clause. Can we still arrest the vessel in Türkiye?
Yes. A Turkish court can order the arrest of a vessel for a maritime claim even though the merits are for arbitrators or a foreign court and even though foreign law applies (TCC art. 1356). The award is then enforced by the arrest court while the vessel or the release security is within its reach (TCC art. 1360).
As owner, can I arrest the vessel I chartered out for unpaid hire?
Not your own vessel. A claim against a charterer is secured by arresting a vessel the charterer owns, provided that person was the charterer of the vessel concerned when the claim arose (TCC art. 1369(2)). Where the charterer owns nothing in Türkiye, the claim is pursued by enforcement of the award against its other assets.
Ports where we attend
Where the vessel is decides the court, the enforcement office and the timing. Istanbul directly; other ports through correspondent counsel.