Cruise & Ferries

Cruise

Usually, we are instructed at an early stage to guide clients through the negotiation of shipbuilding contracts and their ancillary equipment through to delivery of the ready-for-service ships.

For clients seeking to finance the construction or refinance the acquisition of a cruise ship, our Ship Finance expertise allows us to guide them through the complexities of export credit financing, US debt and capital market financing, sale and leaseback arrangements and bridge financing. We have advised on new cruise line ventures with state and individual investors, tax and corporate restructurings, jurisdiction migrations and chartering and other operating arrangements.

As the sector adapts to meet an increasingly more challenging regulatory climate and clients seek to maximise the return on their investments, we are assisting cruise lines and investors to expand the fleets under their ownership as the industry develops the next generation of ships, including extensive modifications during the construction process to comply with environmental regulation and take advantage of new technology.

We also work closely with our Dispute Resolution colleagues and specialist foreign counsel to ensure we can protect our clients’ interests where their position is at risk and have advised our clients in relation to a wide range of international disputes including disputes arising from shipbuilding contracts, order cancellations, passenger claims, charter disputes, and shipyard and service provider insolvencies.

Ferries

Hannaford Turner is a market leader in providing legal services to the ferry sector.

The ferry sector, like the wider shipping industry, is heavily regulated by comprehensive safety and environmental measures (driven by the International Maritime Organisation (IMO) and the relevant flag state, with a critical role played by Classification Societies). Owners, having to balance continuous regulatory compliance, passenger satisfaction and profitability, demand ever more efficient and reliable vessels. Many have embarked on fleet renewal projects in recent years. Given that a ferry often has a critical and very visible role in its areas of operation, it is hardly surprising that owners have been at the forefront of the drive to reduce or eliminate fossil fuels as a bunkering solution, with an array of fuel and propulsion solutions in development (and, increasingly, in service), whether biofuels, LNG or full electrification with battery and other technology.

We act for some of the leading players in this exciting, vibrant and important maritime space. Our team has experience with shipbuilding projects for all sizes of ferry, with owners ranging from one of the largest ferry companies in the world to smaller (but to the communities they serve, no less important) operators. We help them negotiate with the builders and draft the shipbuilding contracts. We help with refit, repair and conversion projects – from a small (but crucial) repair scope that needs a little more than just a standard form, to a full-blown conversion (perhaps a mid-life upgrade, lengthening or engine replacement project). We can help with the full range of contracting over the course of a ferry’s life – build, refit/repair, conversion, sale and end of life recycling arrangements. We can assist with the ancillary contracts, such as ship management and crewing contracts, including ship delivery agreements. And if it all goes wrong with a counterparty, we can help with dispute resolution in either Court or arbitration.

Our thanks to BC Ferries for permission to use the image of its “Salish” and “Spirit” class vessels entering Active Pass, British Columbia, Canada. We assisted BC Ferries with the shipbuilding and mid-life upgrade contracts for these vessels. (Image © British Columbia Ferry Services Inc. 2024)