Confirming the Responsibility for Marine Losses according to Law, Effectively Safeguarding the Shipowner's Interests—Disputes over contracts of carriage of goods by sea between Zhongjie Company and Weihai Hongsheng Shipping Co., Ltd.

Update:Oct,25,2023 Views:2507

【Summary】

In June 2021, the vessel "HONG SHENG 99," registered in Belize and owned by Hongsheng Ship Services Co., Ltd., carried 321 pieces of ship-use steel structures from Changshu Port, China, to the port of Vladivostok, Russia. The bill of lading identified the shipper as Zhongjie Company and the consignee as China Communications Construction Group Russian Branch. Upon arrival of the cargo at the port of Vladivostok, the consignee found that 100 pieces of cargo were damaged, showing signs of bending, deformation, indentation, and scraping. Zhongjie Company, acting as the shipper and seller of the goods, compensated the consignee and subsequently filed a lawsuit with the Nanjing Maritime Court, seeking compensation for cargo damage from Hongsheng Ship Services Co., Ltd., the carrier.

【Judgment】

After trial, the court held that the cargo damage manifested as "bending, deformation, indentation, scraping," which could have been observed through visual inspection during unloading. However, neither the shipper nor the consignee informed the carrier within a reasonable timeframe, and the cargo discharge report provided by the carrier did not mention the discovery of cargo damage. According to relevant provisions of the Maritime Law, this could be considered preliminary evidence that the carrier had delivered the goods in good condition as recorded in the transport documents. Additionally, Zhongjie Company provided a "Letter of Guarantee" to Hongsheng Ship Services Co., Ltd., before cargo loading, indicating that some of the cargo had deformations prior to delivery. The "Cargo Damage Inspection Report" provided by Zhongjie Company also indicated that improper stowage and lashing methods in the cargo hold were the main causes of the damage. As both parties had agreed that the shipper was responsible for cargo loading and securing, the carrier could be exempted from liability according to relevant provisions of the Maritime Law. Based on this, the court dismissed Zhongjie Company's compensation claim in accordance with the law. Following the verdict, neither party appealed.

【Significance】

According to statistics, 90% of global trade volume is carried out through maritime transportation. Due to the long distances, extended duration, and high risk factors involved in maritime shipping, cargo damage incidents are not uncommon.As the reasons behind cargo damage are usually complex, disputes over compensation between shipping parties often arise, requiring judges to comprehensively assess the case facts.Against the backdrop of advancing the "Belt and Road" initiative and increasing international economic and trade cooperation, properly handling disputes over maritime cargo damage between countries along the route holds significant importance. It contributes to enhancing the efficiency of cargo circulation, promoting the creation of convenient cross-border trade channels, and better serving the "Belt and Road" construction.This case involves a Chinese company participating in international capacity cooperation, investing in shipbuilding overseas, and a dispute arising from cargo damage during the transportation of raw materials.The court, based on establishing the facts, accurately applied relevant provisions of the Maritime Law, determined the responsible party for cargo damage, and legally protected the legitimate rights and interests of the shipowner.

[Case No.] (2022)Su72Minchu No.889