In a nutshell: 

Following the required number of ratifications, the United Nations Convention on the International Effects of Judicial Sales of Ships (the "Beijing Convention") will enter into force on 17 February 2026. Currently 33 states (including several important flag states such as Antigua & Barbuda, Cyprus, Malta and Panama) have signed the Beijing Convention, without having ratified same yet.

Until now, the unencumbered acquisition of a ship following a judicial auction or a court-ordered sale of a ship was not always recognised and protected in third countries. In some jurisdictions the ship could be arrested again to enforce encumbrances which were deleted by the judicial sale, and some ship registers refused to recognise the change of title or delete the mortgages originally registered on the ship despite the existence of a court sale order.

The Beijing Convention now regulates a uniform system for the international recognition of judicial ship auctions and sales, although only where the jurisdiction of the judicial sale and the jurisdiction where recognition is sought have both ratified the convention.

In detail:

In the case of a judicial sale, i.e. a public auction or a sale of the ship by a court or a public authority, the court and the relevant authorities are bound by a procedure that applies to all contractual states. The parties and ship registers involved are informed in advance of the impending judicial sale, and the judicial sale is made public. After completion of the transaction, the buyer of the ship may apply to the appropriate national court or authority for a certificate of judicial sale, which is recognised in all contractual states as proof of the lawful and unencumbered acquisition of the ship.

Upon presentation of the certificate of judicial sale, the ship register in which the sold ship is registered is obliged to delete the mortgages registered on the ship and the ship itself, or to enter the change of ownership there. In the past, this process could take several months. The standardised procedure laid down in the Beijing Convention could now lead to a significant reduction in the length of the deletion process.

Furthermore, the courts of the respective contractual states must reject applications for the arrest of ships for claims that arose before the judicial sale of the ship. If a ship is nevertheless arrested, the court is obliged to release the ship immediately upon presentation of the certificate of judicial sale.

The International Maritime Organisation (IMO) acts as the database administrator for the implementation of the Beijing Convention and collects all notifications of pending and completed judicial sales in the contractual states. The Convention provides for the establishment of a central online register (repository) in which information on pending judicial sales and the judicial sale certificates issued is to be made publicly available worldwide.

The Beijing Convention thus regulates the effect and recognition of judicial sales abroad, whereby the auction or sale process remains subject to the national law of the state in which the judicial sale takes place.

The legal certainty achieved through the implementation of the Beijing Convention means that court-supervised ship sales are expected to generate higher sale proceeds than before, as there are likely to be fewer risks involved in the transaction process. Furthermore, the realisation of maritime securities should be more efficient and faster for creditors. The acquisition of ships from court proceedings will become more predictable and thus more attractive for all market participants. 

If you have any further questions, please do not hesitate to contact your contact person at EHLERMANN RINDFLEISCH GADOW or Maje Tode or Sven Deters