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Calcimator

Maritime Lien Priority Calculator

Lien priority distribution from vessel arrest and sale proceeds.

About this calculator

When a vessel is arrested and sold at judicial auction to satisfy creditors, U.S. maritime law doesn't pay claimants proportionally — it pays them in strict priority order, and lower-ranked creditors get whatever is left over, which can be nothing. This calculator models that waterfall: it first deducts an estimated marshal's fee (3% of sale price, covering the court-appointed custodian who maintained the arrested vessel) off the top, then pays remaining claims in sequence — crew wages first, then salvage, then the preferred ship mortgage, then suppliers'/necessaries claims, and finally port charges — with each tier fully satisfied from whatever funds remain before the next tier gets anything. For each claim category the calculator reports a recovery percentage (amount actually paid divided by the amount claimed), which drops toward zero once the sale proceeds run out partway through the priority stack, and it flags any total shortfall where combined claims exceed what the vessel sold for.

This is a simplified model of a genuinely complex area of admiralty law: real maritime lien priority under the Commercial Instruments and Maritime Liens Act (CIMLA), 46 U.S.C. Chapter 313 — enacted in 1988 to recodify prior ship-mortgage and lien statutes — also weighs tort claims (like collision or pollution damage) and applies reverse-chronological ordering within some lien classes, neither of which this tool represents, and actual adjudication can turn on facts specific to each lien's timing and nature. Crew wage and salvage liens ranking above the ship mortgage — reflecting maritime law's traditional priority for the people and services that kept the vessel and voyage safe — is the single most important takeaway, but anyone facing an actual multi-lien vessel arrest needs a maritime attorney, not just this estimate.

Inputs

Results

Crew Recovery (%)

100

Mortgage Recovery (%)

99.3

Salvage Recovery (%)100
Suppliers Recovery (%)0
Marshal Fees ($)$60,000.00
Total Shortfall ($)$160,000.00
Surplus / Deficit ($)$0.00

Figures current as of 1988. Source: Commercial Instruments and Maritime Liens Act, Pub. L. 100-710 (Nov. 23, 1988), codified at 46 U.S.C. Chapter 313.

How to Use This Calculator
  1. Enter Vessel Sale Price from the judicial foreclosure sale.
  2. Set Crew Wages Claim (highest priority), Salvage Claim, and Port Charges.
  3. Enter Suppliers Claim and Mortgage Balance.
  4. Review recovery percentages by priority — crew wages and salvage claims rank above ship mortgages.
  5. If sale proceeds are insufficient, lower-priority creditors recover nothing.
  6. Maritime lien priority is governed by U.S. maritime law (46 U.S.C.) — consult a maritime attorney for complex multi-lien disputes.

What each input means

Vessel Sale Price ($)
Judicial sale proceeds of the arrested vessel.
Crew Wages Claim ($)
Outstanding crew wages and maintenance/cure.
Salvage Claim ($)
Salvage award claim.
Suppliers Claim ($)
Necessaries/suppliers lien claims.
Mortgage Balance ($)
Preferred ship mortgage outstanding balance.
Port Charges ($)
Outstanding port fees and charges.

What each result means

Crew Recovery (%)
Percentage of crew wages claim recovered.
Salvage Recovery (%)
Percentage of salvage claim recovered.
Mortgage Recovery (%)
Percentage of mortgage recovered.
Suppliers Recovery (%)
Percentage of suppliers claim recovered.
Marshal Fees ($)
Court-appointed marshal fees (~3%).
Total Shortfall ($)
Total claims exceeding sale proceeds.
Surplus / Deficit ($)
Remaining funds after all claims (negative = deficit).

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Vessel Sale Price ($) = 2000000, Crew Wages Claim ($) = 150000, Salvage Claim ($) = 300000, Suppliers Claim ($) = 100000 = 6 input(s) provided
  2. Calculate Crew Recovery
    100 = 100
  3. Calculate Mortgage Recovery
    99.3 = 99.3
  4. Calculate Salvage Recovery
    100 = 100
  5. Calculate Suppliers Recovery
    0 = 0

Figures and sources

Engine last updated . Checked against 3 independently-derived tests — how we verify calculators. Built by Paul Gunder, a software engineer, not a licensed financial, medical, or legal professional.

Frequently Asked Questions

In what order does this calculator pay out the claims?

After deducting the marshal's fee (3% of Vessel Sale Price) off the top, it pays claims strictly in sequence: crew wages first, then salvage, then the mortgage balance, then suppliers/necessaries, and finally port charges. Each tier is paid in full from whatever proceeds remain before the next tier receives anything, so a lower-priority claim can be reduced or wiped out entirely by higher-priority claims ahead of it.

Why does the Crew Recovery Percentage matter more than the raw dollar amount?

Crew Recovery (%) is the amount actually paid to crew wage claimants divided by what they claimed, and it shows how close the sale proceeds came to fully satisfying that tier. Since crew wages sit at the top of the priority waterfall in this model, their recovery percentage typically stays at or near 100% unless the marshal's fee alone consumes most of the sale price — it's later tiers, like suppliers, that are more likely to see a reduced percentage.

Why does the mortgage rank below crew wages and salvage in this calculator?

This reflects a real feature of U.S. maritime law: even a properly preferred ship mortgage is subordinate to certain maritime liens, particularly crew wages and salvage awards, because the law treats the people and services that physically kept the vessel and voyage safe as deserving priority over the lender's security interest. That's why the calculator pays Crew Wages Claim and Salvage Claim in full before touching Mortgage Balance.

What does a negative Surplus / Deficit mean?

Surplus / Deficit is what's left of the sale proceeds after all five claim tiers have been paid out. If it's zero, the proceeds ran out somewhere in the priority stack and one or more lower-tier claims went partly or fully unpaid — check Total Shortfall and the individual recovery percentages to see exactly where the money ran out.

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