A shipper of fresh fish and seafood, Mr. Den Denmark, delivered a refrigerated van of goods to the G.V. Suntide Vessel at the port of St. George’s, Grenada on July 15th, 2022 for shipment
A shipper of fresh fish and seafood, Mr. Den Denmark, delivered a refrigerated van of goods to the G.V. Suntide Vessel at the port of St. George’s, Grenada on July 15th, 2022 for shipment to Liverpool, UK. The ship was scheduled to sale on July 15th, 2022 but the vessel had several leaks, and had a boiler problem. The problems included the refrigeration mechanism in the ship’s hold which was not freezing the frozen goods to below zero-degree Celsius temperatures.
The ship sailed on July 18th, 2022 instead of the originally intended July 15th, 2022. The fish was received by the carrier on July 15th, 2022 and a bill of lading was issued to the shipper in the following terms.
TEMPERATURE STATED BY SHIPPER TO BE SET AT MINUS 25 DEGREES
C. CARRIAGE SUBJECT TO CLAUSE 15 OF THIS B/L.” S/C NO
_ID0000R1U15,436.00 KGS GROSS WEIGHT
_ 38,450.00 LBS = 17,456.30 KGS GOODS ARE TRANSPORTED IN A REFRIGERATED CONTAINER WITH A SET POINT OF MINUS 25 DEGREES CELCIUS. SETTING TEMPERATURE _ MINUS 25 DEGREES CELCIUS 2300 CASES CONSIST OF 1,800 CASES OF FROZEN LOBSTER 500 CASES OF FROZEN RED SNAPPER PURCHASE ORDER _ 51101 NETT WEIGHT
_ 34,000.00 LBS. Hague Visby SDR rules to apply.
Along the journey the ship encountered an unexpected storm and the ship’s log recorded that seams and water were breaking over deck, hatches and upper works.
The vessel heaved and twisted as the waves broke over her; and she shuddered and vibrated as she was pounded and wrenched by the heavy seas. A hole was formed in the galley of the ship and some seawater entered the vessel. The fish was stored in a container in the refrigerated area of the vessel.
On arrival in Liverpool, UK, a pungent scent emerged from the pallet holding the fish, and it was clear that it was no longer good. The shipper claimed that the carrier should be found liable because the ship G.V. Suntide was not seaworthy from the start of the journey. The carrier argued that the refrigeration mechanism stopped working due to the storm conditions.
(a) Based on facts presented, the rules in the Hague Visby SDR and based on the case law in this area, is the carrier liable to the shipper for the loss and damage resulting from the rotten fish?
(b) How would your answer differ (if at all) if the applicable convention was the Hamburg Rules?
In a circumstance like this, what incoterm would be most beneficial to the shipper and the beneficiary (consignee) of the fish and seafood product. State the reason for your conclusion in your answer.
Should the vessel G. V. Suntide be insured for this voyage? If so, what are some of the key terms that should be included in the insurance policy?
** Use the FIRAC method to answer these questions (FACTS, ISSUES,
RULE, ANALYSIS AND CONCLUSION). See PowerPoint slide from week
1.
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