The Guangzhou Maritime Court (GZMC) recently mediated a dispute over liability for damages arising from a collision between two foreign vessels, earning rare praise from both the plaintiff and defendant. In an unusual gesture, the parties jointly sent their lawyers from Nanjing and Shanghai to present a banner of appreciation to the court.

The incident occurred on April 21, 2024, at Phase III of Guangzhou's Nansha Port, where the Panamanian-flagged DE XIN SHANG HAI collided with the Sierra Leone-flagged Vladivostok during berthing operations. The collision caused significant damage to both vessels and the loss of some containers from Vladivostok into the sea.

In September 2024, the owner of Vladivostok applied to GZMC's Case Registration Division for the pre-litigation arrest of DE XIN SHANG HAI, backed by a counter-guarantee. After careful review, the court approved the arrest and referred enforcement to the Execution Bureau. In October, DE XIN SHANG HAI was released after its owner posted a RMB 21 million security bond. With guarantees in place from both parties, the case moved to the Maritime Administrative Division for formal proceedings. By late November, pre-litigation mediation began but faced challenges.

At first, significant gaps remained between the parties due to undetermined losses for certain items and complications from international sanctions. When mediation stalled in February 2025, the case proceeded to litigation. The adjudication team noted that both parties were incurring significant interest costs on their vessel guarantees and encouraged settlement to reduce financial losses. On March 21, 2025, during the evidence exchange phase, the trial team reconvened mediation. Despite an initial willingness to settle, negotiations faltered due to issues such as unconfirmed input from a foreign P&I club, a sanctioned surveyor's inability to issue an appraisal report, and disputes over cargo damage liability limits.

Undeterred by all these complex challenges, the trial team provided clear legal guidance, explaining maritime liability limitation rules and conditions for shipowner reimbursement after compensating cargo owners. Their persistence paid off. On April 27, the parties reached an online settlement agreement for RMB 10.19 million in compensation. On May 19, Vladivostok's owner received the payment, which marked the full resolution of the dispute.

This successful mediation highlights GZMC's judicial expertise in applying the "Fengqiao Model" to modern maritime disputes, ensuring equitable protection for both domestic and foreign parties and showcasing a Chinese approach to resolving international maritime conflicts.