Is a P&I Letter of Undertaking Accepted to Release a Vessel from Arrest in Egypt?
Prepared by the Maritime & Admiralty Team at Soliman Advocates
This article has been prepared by the firm's maritime lawyers as part of Soliman Advocates' Maritime Legal Insights series, drawing on the team's experience in Egyptian maritime law and shipping disputes.
One of the most important practical issues facing shipowners and Protection and Indemnity Clubs following a vessel arrest is determining the security required for the vessel’s release.
In Egypt, a P&I Letter of Undertaking is not accepted as security for the release of an arrested vessel.
The release of the vessel requires an unconditional bank guarantee, subject to the requirements applicable to the release proceedings.
Accordingly, identifying and arranging acceptable security at an early stage is critical. Providing security that is not accepted may result in the continued detention of the vessel and additional operational costs and losses.
Shipowners, operators and P&I Clubs should therefore obtain appropriate legal advice regarding the form, terms and conditions of the security before it is submitted for the release of the vessel.
Prepared by: Ship Arrest & Vessel Release Department – Soliman Advocates
Legal Disclaimer
This article provides a general overview and does not constitute legal advice. Ship arrest procedures, requirements, defenses, and consequences depend on Egyptian maritime law, specific facts, supporting evidence, court procedures, and timing. Urgent legal advice should be obtained before arresting a vessel or defending against arrest proceedings.
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