“We Chose Qingdao Maritime Court” – First Trial of a Dispute Over Maritime Armed Escort Service Contract

　　High-level opening up cannot be achieved without a market-driven, law-based, and internationally-oriented business environment. In recent years, Qingdao Maritime Court has been effectively and fairly resolving various foreign-related disputes, striving to establish itself as the preferred venue for resolving international maritime disputes. An increasing number of domestic and foreign parties are voluntarily choosing the court’s jurisdiction. Over the past three years, the number of foreign-related maritime disputes, including those involving Hong Kong, Macao, and Taiwan, has risen by 53% year-on-year.

　　On July 5, Qingdao Maritime Court heard a case involving a maritime armed escort service contract dispute. The parties, registered in Hong Kong and Dalian respectively, have their residences and places of contract performance outside the jurisdiction of Qingdao Maritime Court. However, they voluntarily agreed to resolve the dispute through litigation in Qingdao.

　　In 2021, the plaintiff, a Hong Kong-based security company, entered into a Maritime Armed Escort Service Contract with the defendant, a Dalian-based deep-sea fishing company. Under the contract, the security company was to provide escort services for the fishing company’s operations in Somalia’s exclusive economic zone and Indian Ocean. The security company subsequently dispatched eight armed guards aboard the fishing vessels. After completing their escort duties, the guards disembarked in Sri Lanka and left. In August 2023, the security company filed a lawsuit in Qingdao Maritime Court, seeking a judgment ordering the fishing company to pay the overdue escort fees as agreed.

　　During the trial, the defendant, who had been legally summoned by the court, failed to appear without reason. The plaintiff submitted additional evidence to support its claims, which the court verified for authenticity while fully considering the opinions of the parties involved. The court will issue its judgment in another date.

　　As China deepens its high-level opening-up strategy and the “Belt and Road” initiative, an increasing number of Chinese enterprises are capitalizing on the situation by taking their steps to “go out”. This has led to a growing demand for maritime escort services, as more Chinese companies engage in overseas security operations.

　　The presiding judge noted that this is the first case handled by Qingdao Maritime Court involving a contractual dispute related to maritime armed escort services. As a new industry, maritime armed escort services are evolving in response to the rapid growth of Chinese enterprises’ overseas investments and trade. The judge emphasized that security companies must align with international regulations and standards, strengthen their legal awareness, familiarize themselves with international and national laws, and understand international conventions and related provisions in order to meet the demands of the time and situation, and enhance their international competitiveness.