The freedom of vessels to operate at sea without interference from foreign governments has been reinforced by an international tribunal ruling.
The International Tribunal for the Law of the Sea (ITLOS) backed Panama in a case involving the arrest and detention of a bunker tanker by the Italian state 21 years ago.
ITLOS, an independent judicial body established by the United Nations Convention on the Law of the Sea, found that Italy violated article 87, paragraph 1, of the Freedom of the Seas Convention.
It awarded Panama $285,000 compensation plus interest for the loss of the ship.
The amount represents the value of the 457-dwt Norstar (built 1966), a Panama-flagged vessel.
The tanker has been owned by Inter Marine of Norway since at least 1997 and is still operational, according to Equasis.
Between 1994 and 1998, it supplied gasoil to megayachts in the Mediterranean Sea.
On 11 August 1998, the public prosecutor at the court of Savona, Italy, issued a decree of seizure against the vessel, in a move related to criminal proceedings instituted against eight individuals for alleged smuggling and tax evasion, the tribunal said.
At the request of Italy, the vessel was seized by Spanish authorities when anchored in the bay of Palma de Mallorca, Spain, in September 1998.
Proceedings in the current case were started by Panama in 2015. A hearing took place last year.
Ships free to operate
Article 87 proclaims that the high seas are open to all states and that “save in exceptional cases, no state may exercise jurisdiction over a foreign ship on the high seas.”
ITLOS said: “As no state may exercise jurisdiction over foreign ships on the high seas, in the view of the tribunal, any act of interference with navigation of foreign ships or any exercise of jurisdiction over such ships on the high seas constitutes a breach of the freedom of navigation, unless justified by the Convention or other international treaties.”
It added: "Even acts which do not involve physical interference or enforcement on the high seas may constitute a breach of the freedom of navigation."
Ship held for five years
In 2003, the shipowner received an official communication from the court of Savona that the vessel was unconditionally released from detention.
No compensation was awarded with regard to Panama’s other claims for loss of profit, continued payment of wages, payment due for fees and taxes, loss and damage to the charterer, and material and non-material damage to persons.
ITLOS said: “Even when enforcement is carried out in internal waters, article 87 may still be applicable and be breached if a state extends its criminal and customs laws extra-territorially to activities of foreign ships on the high seas and criminalises them."
Further claims by Panama alleging breach of the good faith obligation by Italy under article 300 were rejected because Panama failed to show evidence of bad faith with regard to the timing of the arrest.
The tribunal also found that Italy did not exercise its rights under the Convention in a manner that would constitute an abuse of rights.
