Ship repair dispute with a Turkish shipyard? Learn how foreign shipowners can claim compensation for delayed redelivery, defective repairs, vessel damage, additional repair costs and loss of earnings in Turkey.

Turkey is a major destination for commercial vessel maintenance, dry-docking, conversion and repair. Foreign shipowners regularly send bulk carriers, tankers, container vessels, offshore vessels, yachts and other ships to Turkish yards for scheduled maintenance or emergency repairs.

Most projects are completed commercially without serious disagreement. However, a repair period can quickly develop into a substantial dispute when the shipyard misses the redelivery date, performs defective work, causes new damage to the vessel, exceeds the agreed price or refuses to release the ship because invoices are disputed.

For a foreign shipowner, several losses can arise simultaneously. The owner may face additional repair expenses, replacement equipment, survey costs, classification problems, off-hire exposure, loss of charter income and cancellation of the vessel’s next employment.

Turkish law treats claims concerning the construction, reconstruction, repair, outfitting or alteration of a vessel as maritime claims under Article 1352 of the Turkish Commercial Code (“TCC”). (2M Hukuk Avukatlık Bürosu)

At the same time, ship repair agreements are generally analyzed as contracts for work under Turkish obligations law, making the precise repair contract, technical specification and evidence of defective performance particularly important. (DergiPark)

For foreign owners, the central question is therefore not simply whether the yard performed badly. It is:

What does the contract require, what went wrong, who caused it, how much loss resulted and how can the claim be secured?

What Is a Ship Repair Contract in Turkey?

A vessel repair agreement generally requires the shipyard to perform specified maintenance, repair, conversion or technical work in return for an agreed price.

The scope may include engine overhaul, steel renewal, propulsion systems, electrical systems, hull repairs, coating, ballast systems, piping, dry-docking, class works or major conversion projects.

Shipyard disputes in Turkey commonly involve delivery delay, defective construction or repair, technical specification disagreements, warranty claims and payment disputes. (2M Hukuk Avukatlık Bürosu)

The written contract is therefore the starting point.

Review the Repair Contract First

Before making a claim against a Turkish shipyard, the foreign owner should obtain the complete contractual package.

This may include:

the main repair agreement,

technical specifications,

quotation,

work list,

change orders,

yard rules,

delivery schedule,

warranty provisions,

liquidated damages clause,

limitation-of-liability provisions,

and dispute-resolution clause.

Email correspondence can also become part of the contractual evidence.

Delayed Vessel Redelivery

Delay is one of the most commercially serious shipyard disputes.

Suppose a vessel enters the yard for a 20-day repair period.

The agreed redelivery date is 1 September.

The vessel remains in the yard until 25 September.

During those additional 24 days, the owner may lose its next fixture and incur continuing crew, insurance and financing expenses.

The first question is whether the delay is legally attributable to the shipyard.

Yard Delay vs Owner-Caused Delay

Not every late redelivery creates shipyard liability.

The yard may argue that delay resulted from:

additional works requested by the owner,

late delivery of owner-supplied spare parts,

unexpected structural conditions,

classification requirements,

force majeure,

or changes to the repair specification.

A detailed project chronology is therefore essential.

Every delay should be allocated to a cause.

Change Orders

Change orders are one of the most common sources of disagreement.

During dry-docking, previously hidden defects may become visible.

The yard proposes additional steel replacement.

The superintendent approves the work verbally.

At final invoicing, the owner discovers a substantial additional charge and extended repair period.

The parties then disagree over whether the extra work was authorized.

Foreign owners should insist that substantial variations are documented in writing with price and time consequences clearly identified.

Delay Compensation

Where the shipyard is responsible for late completion, the owner may potentially seek compensation subject to the contract and applicable Turkish law.

Potential losses may include additional expenses and certain commercial losses where the requirements for recoverability, causation and proof are satisfied.

The repair contract should first be checked for a liquidated-damages or delay-compensation provision.

Liquidated Damages

Many sophisticated repair contracts specify a daily amount payable for delay.

For example:

EUR 20,000 per day after the contractual redelivery date.

This can simplify loss calculation.

However, the contract may also establish a maximum liability cap.

The wording should be reviewed carefully to determine whether liquidated damages are the exclusive remedy or whether additional damages may potentially be claimed.

Lost Charter Hire

For commercial vessels, lost charter hire may be one of the largest components of the claim.

Suppose a tanker should have left the yard on 10 October but is not redelivered until 30 October.

The vessel had a confirmed charter commencing on 12 October.

The owner loses the fixture.

The owner may attempt to claim lost earnings where the applicable contractual and legal requirements are established.

Evidence becomes crucial.

Proving Lost Earnings

The owner should preserve:

the signed charterparty,

broker correspondence,

fixture recap,

daily hire rate,

cancellation notice,

and evidence showing that the charter was lost because of the yard’s delay.

A general allegation that “the vessel could have earned USD 40,000 per day” is much weaker than evidence of an actual cancelled fixture.

Defective Ship Repair

A second major category involves defective workmanship.

The yard may complete the project on time, but the repairs do not meet contractual or technical requirements.

Examples include defective welding, incorrect engine assembly, electrical faults, coating failures, leaking pipes, propulsion problems or improperly installed equipment.

The defect may become apparent immediately or only after the vessel leaves Turkey.

Owner’s Rights for Defective Work

The legal remedies depend on the severity of the defect, contract wording and applicable law.

Potential remedies can include requiring correction of defective work, reduction of the contract price, damages and, in sufficiently serious circumstances, remedies affecting the continuation of the contractual relationship.

The owner should avoid authorizing extensive third-party repairs before preserving evidence of the original defect unless emergency safety considerations require immediate intervention.

Notify the Yard Immediately

When a defect is discovered, the shipyard should generally be notified promptly and in accordance with the contract.

The notice should identify:

the defective work,

when it was discovered,

its operational consequences,

and what remedy is requested.

Do not rely exclusively on telephone conversations.

Written records are critical.

Independent Marine Survey

A substantial repair dispute almost always requires technical evidence.

An independent marine surveyor may need to determine:

what work was performed,

whether it complied with specifications,

what defect exists,

what caused it,

what repairs are required,

and how much those repairs will cost.

Shipyard disputes frequently require both technical and legal expertise precisely because the core issue often concerns whether work complied with contractual specifications. (2M Hukuk Avukatlık Bürosu)

Classification Society Evidence

Classification records can be particularly important.

If a repair was required to satisfy class standards but the vessel fails inspection after the yard declares completion, this can provide powerful evidence.

Preserve:

class survey reports,

conditions of class,

recommendations,

inspection notes,

and correspondence between class and the yard.

Vessel Damaged While in the Yard

Sometimes the dispute is not about defective repair at all.

The vessel may suffer new physical damage while under the yard’s control.

Examples include:

fire,

flooding,

crane damage,

dry-dock accidents,

incorrect lifting,

damage during shifting,

collision within the yard,

or machinery damage caused during testing.

The owner’s claim should distinguish the original repair requirement from damage newly caused by the yard.

Fire During Repair

Shipyard fires can produce exceptionally large claims.

Hot work, welding, cutting and electrical work create obvious risks.

If a fire occurs, evidence should be secured immediately concerning:

hot-work permits,

fire-watch procedures,

CCTV,

yard safety records,

contractor identity,

and the exact location where the fire began.

Multiple subcontractors may be involved.

Damage During Sea Trial

A vessel may complete repairs but suffer machinery failure during the post-repair sea trial.

A recent Turkish case reported in 2026 involved a vessel whose main engine overheated shortly after leaving a shipyard following maintenance and repair; the vessel lost control and required salvage assistance. The dispute concerned responsibility for resulting salvage expenses where the malfunction was alleged to arise from defective shipyard work. (2M Hukuk Avukatlık Bürosu)

This illustrates an important point:

Shipyard liability may extend far beyond the cost of correcting the defective component.

Salvage Costs

If defective repair causes the vessel to lose propulsion or become exposed to marine danger, salvage or emergency towage may become necessary.

Those expenses can be substantial.

Where the owner’s insurer pays the salvage expenses, subrogation claims against the responsible shipyard may also arise depending on the circumstances. (2M Hukuk Avukatlık Bürosu)

Third-Party Damage

A defective repair can also cause damage to third parties.

Suppose steering repairs are performed incorrectly.

The vessel leaves the yard, loses steering and strikes another vessel.

The owner may face collision claims while simultaneously alleging that the underlying technical failure was caused by the yard.

This can create parallel maritime, insurance and contractual disputes.

Subcontractor Caused the Damage

Turkish shipyards frequently use specialist subcontractors.

A subcontractor may perform electrical, engine, welding or coating work.

From the shipowner’s perspective, the existence of a subcontractor does not automatically eliminate the contractual shipyard’s responsibility.

The repair contract and allocation of responsibility should be examined carefully.

The owner should identify exactly who performed the defective work.

Defective Spare Parts

Sometimes workmanship is acceptable but the installed component itself is defective.

Potentially responsible parties may include:

the yard,

equipment manufacturer,

supplier,

or another contractor.

The investigation should determine who selected and supplied the part.

Preserve the defective component whenever possible.

Do not allow it to be discarded.

Warranty Claims

Ship repair contracts commonly provide warranty periods for completed work.

The owner should identify:

the duration of the warranty,

what work is covered,

notification requirements,

where warranty repairs must occur,

and whether the yard has the right to attempt correction first.

Missing a contractual notification requirement can unnecessarily complicate an otherwise valid claim.

Defect Appears After Vessel Leaves Turkey

This is common.

A vessel leaves the Turkish yard and sails to Rotterdam.

Three weeks later, the repaired main engine fails.

The owner should notify the Turkish yard immediately and arrange a joint inspection where practicable.

If emergency repairs are necessary, the condition should be documented comprehensively before components are dismantled.

Emergency Repairs Abroad

Safety may make waiting for the original yard impossible.

In that situation, preserve evidence through photographs, videos, survey reports, damaged parts, class records and repair invoices.

The Turkish yard should be invited to inspect or send a representative where reasonably possible.

This can reduce later arguments that the yard was denied an opportunity to investigate.

Cost of Corrective Repairs

The owner may potentially claim reasonable costs required to correct defective shipyard work, subject to applicable contractual and legal requirements.

The claimant should preserve competing quotations where available.

This helps demonstrate that the chosen corrective repair cost was commercially reasonable.

Consequential Loss

Repair failures can cause losses much greater than the repair invoice itself.

Potential losses can include:

replacement repair costs,

survey expenses,

towage,

salvage,

port expenses,

lost charter hire,

additional bunkers,

and other operational costs.

Whether each category is legally recoverable depends on causation, foreseeability, contractual limitations and applicable law.

Liability Limitation Clauses

Shipyard contracts frequently attempt to limit liability.

The contract may contain:

a monetary cap,

exclusion of consequential loss,

exclusion of loss of profit,

short claim-notification periods,

or restrictions concerning subcontractor liability.

These clauses should be reviewed before calculating the claim.

Their enforceability under the applicable law must also be analyzed rather than automatically accepted.

Owner’s Own Fault

The shipyard may argue that the owner or crew contributed to the loss.

Examples include incorrect operating instructions, failure to disclose technical history, supplying defective spare parts or operating machinery contrary to yard recommendations.

Under general Turkish liability principles, fault and causation can affect compensation. Turkish obligations law places importance on proving damage and the wrongful party’s fault in tort-based claims. (Türkiye Sigorta Birliği)

Shipyard Refuses to Release the Vessel

Payment disputes can become especially urgent when repairs are completed but the owner disputes the final invoice.

The yard may refuse release or seek security for its claim.

Ship construction, reconstruction, repair, outfitting and alteration claims are expressly recognized as maritime claims under TCC Article 1352. (2M Hukuk Avukatlık Bürosu)

The owner’s contractual payment obligations and the yard’s asserted security rights should therefore be reviewed immediately.

Ship Arrest by the Repair Yard

Repair-related claims can potentially support ship-arrest proceedings because they fall within the statutory maritime-claim framework.

Turkish case law has considered provisional attachment applications concerning vessel maintenance and repair claims under TCC Articles 1352 and 1353. (CML CMI Database)

However, classification as a maritime claim does not automatically mean every arrest application will succeed. The statutory requirements for arrest must still be established.

Foreign-Flagged Vessel

Foreign vessels regularly undergo repairs in Turkey.

The regulatory framework specifically addresses foreign-flagged vessels, and Turkey introduced a new Regulation on the Construction, Modification and Maintenance-Repair of Ships and Watercraft published on 14 January 2026. (LEXPERA)

Foreign ownership therefore does not prevent Turkish regulatory or judicial rules from becoming relevant to repair activities carried out in Turkey.

Can a Foreign Shipowner Sue a Turkish Yard?

Yes, subject to jurisdiction, applicable law and contractual dispute-resolution provisions.

The first document to check is the repair agreement.

Many sophisticated ship-repair contracts contain:

Turkish court clauses,

foreign court clauses,

or arbitration agreements.

The owner should determine the proper forum before commencing substantive proceedings.

Arbitration

International ship repair agreements frequently use arbitration.

If arbitration has been agreed, the merits may need to be decided by the specified tribunal.

However, urgent evidence or asset-preservation requirements in Turkey should be considered separately.

A foreign arbitration clause should not cause the owner to ignore a vessel, documents, witnesses or assets currently located in Turkey.

Evidence Preservation in Turkey

This can be crucial.

A vessel may be scheduled to leave the yard within days.

The defective machinery may be replaced.

The yard may dismantle the relevant equipment.

The owner should therefore consider mechanisms for preserving technical evidence before the physical condition changes.

Independent surveys and formal evidence-preservation procedures may be appropriate depending on the dispute.

Expert Evidence

Shipyard disputes are highly technical.

Courts and arbitral tribunals may require expertise concerning naval architecture, marine engineering, metallurgy, welding, propulsion or electrical systems.

The legal case should therefore be developed together with technically qualified experts.

A lawyer cannot prove defective welding merely by arguing that the vessel failed.

The technical causal chain must be established.

Claim Against Shipyard Insurer

Shipyards commonly maintain liability insurance, although coverage varies significantly.

Where substantial vessel damage occurs, the yard should be requested to notify its insurer.

The existence of insurance can materially affect settlement and recovery strategy.

The owner’s own hull and machinery insurer should also be notified promptly.

Hull & Machinery Insurance

The owner’s H&M insurer may pay for physical damage and subsequently pursue subrogated recovery against the responsible yard.

The owner should avoid prejudicing those recovery rights.

Do not sign broad releases with the shipyard without coordinating with insurers.

Practical Example: 20-Day Redelivery Delay

A foreign bulk carrier enters a Turkish yard for scheduled repairs.

The contract provides for redelivery on 1 May.

The vessel is delivered on 21 May because the yard failed to complete agreed steel works.

The owner loses a confirmed charter.

The owner should preserve the repair schedule, daily progress reports, superintendent correspondence, charterparty and cancellation notice.

The dispute should focus on both responsibility for the 20-day delay and quantification of the resulting loss.

Practical Example: Main Engine Failure After Repair

A Turkish yard overhauls the main engine.

Four days after redelivery, the engine suffers a major failure.

An independent survey finds incorrect assembly during the overhaul.

The owner incurs EUR 600,000 in corrective repairs and loses 18 operating days.

The claim may include corrective repair costs and potentially additional proven losses, subject to the repair contract and applicable liability rules.

Practical Example: Vessel Damaged During Dry-Docking

A vessel is incorrectly positioned during docking and suffers hull deformation.

The yard argues that the vessel’s docking plan was inaccurate.

The owner argues that the yard failed to follow the approved plan.

Relevant evidence includes the docking plan, communications, CCTV, photographs, measurements and expert engineering analysis.

Practical Example: Repair Causes Salvage Incident

A vessel leaves the yard after engine maintenance.

The engine overheats during sea trial and the vessel becomes unable to maneuver.

Emergency tug assistance is required.

The owner or insurer may investigate whether the repair defect caused both the machinery damage and salvage expenditure. A Turkish commercial court decision reported in 2026 addressed precisely this type of post-repair malfunction and salvage-cost dispute. (2M Hukuk Avukatlık Bürosu)

First 24 Hours After a Serious Shipyard Dispute

The foreign shipowner should immediately preserve the repair contract, technical specification, change orders, superintendent reports, photographs, class records, invoices, emails and repair schedule.

If physical damage or defective work exists, arrange an independent technical survey before the condition changes.

The shipyard should receive written notice identifying the defect or damage and reserving the owner’s rights.

If the vessel must leave urgently, document its condition comprehensively before departure.

If the dispute involves significant money, counsel should also identify the yard’s assets and insurance position and determine whether provisional judicial measures are appropriate.

Frequently Asked Questions

Can a foreign shipowner sue a Turkish shipyard for defective repairs?

Potentially yes. The repair contract, technical specifications, applicable law, jurisdiction clause and evidence of defective performance must be examined.

Can compensation be claimed for delayed redelivery?

Potentially, where the shipyard is legally responsible for the delay and recoverable losses can be established.

Can lost charter hire be claimed?

Potentially. A confirmed lost fixture supported by charterparty and broker evidence will generally present a stronger factual case than speculative earning estimates.

What if additional repairs caused the delay?

The parties must determine whether the additional work was contractually authorized and who bears the resulting extension of time.

What if the vessel is damaged while inside the shipyard?

The owner should immediately preserve evidence, arrange a technical survey and identify whether the yard, subcontractor or another party caused the damage.

What if defective repairs cause an accident after the vessel leaves?

The shipyard may potentially face claims if causation between the defective work and subsequent damage can be established. Recent Turkish litigation has addressed post-repair machinery failure leading to salvage expenses. (2M Hukuk Avukatlık Bürosu)

Can the yard use subcontractors to avoid liability?

The existence of subcontractors does not automatically eliminate the contractual yard’s responsibility. The contract and allocation of responsibility must be examined.

Can a Turkish repair yard arrest a vessel over unpaid repair invoices?

Potentially. Ship repair claims are classified as maritime claims under TCC Article 1352, and arrest may be available where the additional statutory requirements are satisfied. (2M Hukuk Avukatlık Bürosu)

Should the owner notify its insurer?

Yes. Hull and machinery insurers should generally be notified promptly where significant physical damage exists.

What is the most important evidence in a defective-repair claim?

The repair specification, condition before and after repair, independent technical survey, class records, damaged components, photographs and evidence connecting the defective work with the resulting loss are particularly important.

Ship Repair and Shipyard Dispute Lawyer in Turkey

Ship repair disputes require technical evidence and legal strategy to develop together.

A foreign shipowner should not wait until the vessel has left Turkey and defective equipment has been replaced before investigating responsibility.

The strongest claims generally establish a clear sequence:

What did the shipyard agree to do? What work was actually performed? What was defective or delayed? What caused the failure? What financial loss resulted?

For delay claims, daily progress reports and charter evidence can be decisive. For defective workmanship, independent engineering evidence is critical. For physical vessel damage, the owner should preserve photographs, survey reports, class documentation and damaged components immediately.

Where substantial claims arise, the strategy may involve contractual damages, corrective repair costs, loss of hire, warranty claims, insurance recovery, expert evidence, provisional measures, Turkish court proceedings or international arbitration.

Shipowners should also remember that Turkish law expressly classifies claims relating to vessel construction, reconstruction, repair, outfitting and alteration as maritime claims. (2M Hukuk Avukatlık Bürosu) This can have important consequences for maritime procedural remedies.

Fırat Fesih Kaya Law Office assists foreign shipowners, vessel operators, managers, P&I interests and marine insurers with ship repair yard disputes in Turkey, delayed vessel redelivery, defective ship repairs, vessel damage at shipyards, warranty claims, loss of hire, shipyard invoice disputes, maritime arbitration, provisional measures and ship repair litigation in Turkey.

Phone: +90 312 434 22 22
Mobile: +90 532 769 22 22
Email: info@firatfesihkaya.av.tr
Address: Mevlana Boulevard No: 221, Yıldırım Tower, Balgat, Çankaya, Ankara, Turkey