Seems like the parties trying to get possession of the ships and cargoes were playing the international law card. The Court ruled that the president did have power to blockade "the so-called confederate states" (the Court's phrase), as well as suppress the rebellion, based on the Militia Act and another act from 1807.
Walt
"On this first question, therefore, we are of the opinion that the President had a right, jure belli, to institute a blockade of ports in possession of the States in rebellion which neutrals are bound to regard."
The Court's phrase.