Archives: Cargo Issues

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The “Majesty”: Cargo claims, LoUs, and the importance of clear cross-referencing

At a glance: In a recent judgment, the Commercial Court highlighted the difficulties that can arise of out of LoU wording in terms of arbitration agreements and extensions of time. Background The M/V Majesty was carrying 25,000 mt of rice under a voyage charterparty on an amended Synacomex 90 form. Five Bs/L were issued. The … Continue Reading

Power to order sale of cargo – when is cargo the subject of arbitral proceedings?

Earlier this month the Commercial Court handed down an interesting judgment which considered the question of when a cargo is the “subject of the [arbitral] proceedings”, so as to give rise to a power to order the sale of the cargo under Section 44(2)(d) Arbitration Act 1996 – Dainford Navigation Inc v PDVSA Petroleo SA … Continue Reading

India extends service tax on freight

Indian authorities have recently extended the service tax on ocean freight, payable under the Finance Act 1994 (“Service Tax”), to cargoes imported on a CIF basis. The amendments to the Act in this regard came into effect from 22 January 2017. This Service Tax has been levied since June 2016 over freight on cargoes imported … Continue Reading

English Court confirms that package limitation under the Hague Rules excludes a bulk cargo

A recent decision provides authority for the broadly accepted understanding that a “unit”, for the purposes of limitation under Article IV Rule 5 of the Hague Rules, cannot apply to a bulk cargo – it can only mean a physical unit for shipment and not a unit of measurement or a customary freight unit (the … Continue Reading

Cargo owner has no claim for conversion where a shipper has discharged cargo into storage due to cargo owner’s failure to present a bill of lading

Sang Stone Hamoon Jonoub Co Ltd v Baoyue Shipping Co Ltd (“The Bao Yue”) [2015] EWHC 2288 (Comm) The dispute related to a cargo of iron ore carried from Iran to China by the Defendant Shipper. The bill of lading had been issued “to order”, with no consignee named. The Shipper was requested to discharge … Continue Reading

“At the expenses and risk of Charterers” – what does this mean?

The decision of Mr. Justice Flaux in (1) Societe de Distribution de Toutes Merchandises en Cote D’Ivoire trading as “SDTM-CI” (2) Kouma Assitan (3) Amlin Corporate Insurance N.V. (4) Axa Corporate Solutions Assurance and (1) Continental Lines N.V. (2) Genshipping Corporation [2015] EWHC 1747, considers the effect of clause 5 of the Synacomex 90 form, … Continue Reading

High Court rules on inconsistency in charterparty arbitration clauses and applicable curial law

Reed Smith (Lianjun Li and Min Li of the Hong Kong office, Nick Shaw and Halani Lloyd of the London office) recently represented the successful Charterers in Shagang South-Asia (Hong Kong) Trading Co. Ltd v Daewoo Logistics [2015] EWHC 194 (Comm). The Respondent Owners chartered their vessel to the Claimant Charterers by a fixture note, … Continue Reading

Indonesian Ore Export Ban and Language Law

On 12 January 2014, the Indonesian Government imposed an effective ban on the export of some unprocessed mineral ores, incorporating some last minute amendments aimed at easing the ban in respect of some products. Further information is available in the Reed Smith Client Alerts dated 10 January and 13 January 2014. The 10 January alert … Continue Reading

Court rules on the formation of a sale contract and whether it contained an implied term as to the origin of the goods

In Proton Energy Group SA v Orlen Lietuva [2013] EWHC 2872 (Comm), the court was required to decide whether a binding contract had been agreed between the parties. If a contract had been agreed, the court was required to decide whether it contained an implied condition precedent that it would only be binding if the … Continue Reading

Tribunal rules on liability between Owners and Charterers where cargo was contaminated with fuel oil

London Arbitration 8/13 Charterers faced cargo claims arising from the contamination of containerised cargo with fuel oil. Charterers settled these claims and claimed an indemnity from Owners under the time charter between them. Charterers also claimed for survey fees, off-hire and bunkers during the period of off-hire. Facts During the first voyage under the charter, … Continue Reading

Norwegian Saleform 1993 – Seller Beware!

In a recent client alert, Adam Morgan comments on the High Court’s decision in Dalmare SpA v Union Maritime Ltd and another (The “Union Power”). This case was summarised in a previous post, and considered the issue of whether a term as to satisfactory quality was to be implied into the Norwegian Saleform 1993. The … Continue Reading

New IMO Regulation and amendment to SOLAS: corrosion protection of crude oil tanks

Following several incidents resulting from structural failure in oil tankers, the Maritime Safety Committee of the IMO has made mandatory certain performance standards aimed at inhibiting corrosion in cargo oil tanks. The MSC has adopted Resolution MSC.291(87), which incorporates into SOLAS Regulation II-1/3-11, “Corrosion Protection of Cargo Oil Tanks of Crude Oil Tankers” (the “Regulation”). … Continue Reading

Intercargo launches “Guide for the Safe Loading of Nickel Ore”

Intercargo, the trade association representing the interests of the bulk shipping industry, has launched the “Intercargo Guide for the Safe Loading of Nickel Ore”. The Guide explains how nickel ore can continue to be safely shipped, whilst at the same time raising awareness of the seriousness of liquefaction. The Guide has been produced in response … Continue Reading

Liquefaction of bulk cargoes back on the IMO’s agenda

For some parts of the world, the monsoon season is fast approaching. Such extreme weather conditions are known to cause serious problems with the carriage of certain bulk cargoes. The IMO has, therefore, recently considered issues relating to the dangers posed by the carriage of such cargoes at a meeting of the Sub-Committee on Dangerous … Continue Reading