Iranian Agency Seizes Cargo Ship Bound for Scrapping at Alang
An ageing cargo vessel destined for dismantling at India’s Alang shipbreaking yards has been dramatically seized following a complaint lodged by a UAE-based maritime services company. The 8,700-deadweight-ton Lord 17 (built in 1996) was intercepted ahead of its planned beaching after it allegedly left Iran while evading payment for services rendered, leaving a trail of maritime debts in its wake.
The Iranian Ports and Maritime Organisation, acting through a local agency in Bandar Abbas, issued an arrest order for the vessel after World Atlantic Shipping accused the vessel’s registered owner, Friend Ships, of absconding from Iran without settling outstanding accounts. The total value of the alleged unpaid dues is reported to be $714,000.
World Atlantic Shipping, which operates out of the UAE, claims that the sum covers a series of supplies and port services provided not only to Lord 17 but to other ships linked to Friend Ships over several months. The company has characterised Friend Ships’ recent actions as a calculated attempt to liquidate its assets without honouring commercial obligations, with Lord 17 seen as the latest casualty in a wider pattern of evasion.
A Sudden Departure and a Surprise Arrest
The Lord 17 had been docked in Bandar Abbas, a key Iranian port on the Strait of Hormuz, where it received provisions and services from local suppliers coordinated through World Atlantic. However, port records suggest that the vessel abruptly departed the port earlier this month, allegedly without obtaining the necessary clearance or notifying port authorities. Shortly afterwards, it was tracked sailing towards Alang, India—a globally renowned hub for shipbreaking, raising red flags among creditors and port officials.
Acting swiftly, World Atlantic sought legal recourse through the Iranian courts. An arrest warrant was granted and executed via the Ports and Maritime Organisation before the vessel could reach the Indian coast and be scrapped. According to sources familiar with the case, the warrant was issued just in time, as the vessel was reportedly within a few days’ sailing distance of Alang.
“This arrest is a significant development,” said a maritime law expert based in Dubai. “It’s not uncommon for shipowners under financial strain to try and dispose of their vessels quickly, especially by scrapping them, to free up some cash or escape mounting debts. But authorities are increasingly vigilant about ensuring claims are settled before vessels are allowed to disappear.”
Alang’s Crucial Role and Growing Oversight
Alang, located in Gujarat, India, is home to one of the world’s largest shipbreaking industries. It has long been a final destination for ageing commercial ships, which are beached and dismantled by hand for scrap steel and reusable components. While the industry provides thousands of jobs and plays a significant economic role in the region, it has also drawn international scrutiny over labour safety and environmental issues.
To address global criticism and align with international regulations, India has tightened oversight of shipbreaking activities in recent years, requiring stricter documentation and environmental clearances before vessels can be scrapped. The seizure of Lord 17 underlines the challenges shipbreakers face when legal and financial disputes emerge at the last moment.
Officials in Alang said the vessel had been expected to arrive within days and that a scrapping deal had already been arranged. One Alang-based broker, speaking on condition of anonymity, confirmed that “negotiations had been underway for several weeks” to take delivery of Lord 17, but that “all movement has now been suspended pending legal proceedings.”
Patterns of Financial Misconduct?
Industry insiders suggest that the Lord 17 case might not be an isolated incident involving Friend Ships. There are growing concerns in the Gulf maritime sector that the company may be systematically defaulting on obligations and attempting to offload vessels before claimants can catch up.
Several suppliers who previously dealt with Friend Ships have reportedly begun reviewing contracts and debt exposure amid fears of further defaults. “This kind of behaviour, if proven, undermines the trust that keeps our maritime ecosystem functioning,” said a marine services contractor based in Fujairah. “We rely on payments being made on time. When companies start jumping ports and sending ships for scrap without settling dues, it sends a ripple through the entire industry.”
World Atlantic Shipping has stated that it will pursue all available legal channels to recover the owed amount and prevent the sale or scrapping of the ship until the matter is resolved. Legal experts believe the arrest may now trigger a broader investigation into Friend Ships’ operations and financial health.
Future of the Lord 17
With the vessel now effectively detained under Iranian jurisdiction, its future remains uncertain. Any planned scrapping at Alang is now indefinitely postponed, and the ship may be subject to a prolonged legal process. If World Atlantic Shipping’s claims are upheld, the vessel could be sold through judicial auction to satisfy creditors’ demands.
This case also highlights the increasing role of cross-border maritime litigation in policing the complex web of commercial shipping. As ships move rapidly across jurisdictions and ownership structures grow more opaque, creditors and port authorities are becoming more proactive in tracking down errant operators.
Until now, Friend Ships has made no public comment on the arrest or the allegations of unpaid debts. Attempts to reach representatives of the company have so far been unsuccessful.
Meanwhile, industry observers warn that this incident could prompt tougher port protocols in Iran and neighbouring regions, particularly in monitoring ships with outstanding claims. For Alang, it serves as a reminder of how quickly deals can unravel when legal and financial questions come to light, right on the cusp of a vessel’s final voyage.
