Cargo Claims by Richards, David;

Short description:

Cargo claims are the most frequent form of third-party liability incurred by carriers by sea and their P&I insurers. Written for practitioners and those working on cargo claims day-to-day, the book will be invaluable for ship operators, shipping law firms, barristers’ chambers, cargo recovery agencies and P&I insurers. 

Long description:

Cargo claims are the most frequent form of third-party liability incurred by carriers by sea and their P&I insurers. They are the bread-and-butter work of ship operators and P&I clubs, with each club handling thousands of cargo claims every year. This new book examines every aspect of cargo claims from a legal and practical perspective and complements other legal textbooks which specialise in bills of lading or charterparties.  

Following the life of a typical cargo claim, the book analyses the basis upon which carriers face liability for cargo loss and damage; the law on delay and deviation; cargo interests’ responsibilities for the cargo they ship; defences to cargo claims; the role of cargo insurers and subrogation; P&I cover for cargo claims; and the recovery options available to a carrier facing a cargo liability. Cargo Claims also includes a detailed clause-by-clause commentary on the InterClub Agreement.

Written for practitioners and those working on cargo claims day-to-day, the book will be invaluable for ship operators, shipping law firms, barristers’ chambers, cargo recovery agencies and P&I insurers. Readers will gain a comprehensive guide to the handling of cargo claims by way of a detailed analysis of the underlying legal principles and through practical guidance.

Table of Contents:

Table of cases xi

CHAPTER 1 INTRODUCTION 1

CHAPTER 2 THE CONTRACT OF CARRIAGE 2

CHAPTER 3 CARRIER’S RESPONSIBILITY TOWARDS CARGO 6

Responsibilities in contract 6

(A) To issue an accurate bill of lading or other transport document 6

(B) To state the condition of the cargo 8

(C) To take reasonable care of cargo 14

(D) To exercise due diligence to ensure the ship is seaworthy prior to the commencement of the voyage 16

(E) To collect General Average securities and procure an adjustment 25

Responsibilities in tort 26

Responsibilities in bailment 27

CHAPTER 4 DELAY AND DEVIATION 31

Deviation 33

CHAPTER 5 CARGO INTERESTS’ RESPONSIBILITIES IN RESPECT OF CARGO 35

(A) Not to ship dangerous cargo without consent 35

(B) To accurately declare particulars of the goods 36

(C) To take delivery 36

(D) To pay General Average and salvage 37

CHAPTER 6 DEFENCES TO CARGO CLAIMS 39

(A) Common law defences 39

(B) Exercise of due diligence 39

(C) Carrier’s orbit 40

(D) Contracting out of cargo care 40

(E) Proof of condition on loading 40

(F) Proof of condition on discharge 41

G) Causation 42

(H) Deck cargo 42

(I) Article IV defences 43

(J) Title to sue 53

(K) Limitation 58

(L) Time bars 63

(M) Quantification rules 69

CHAPTER 7 ASPECTS OF COMMON CARGO CLAIMS 75

(A) Misdelivery 75

(B) Shortage and over-carriage 77

(C) Liquefaction 79

(D) Contamination 81

CHAPTER 8 CARGO CLAIMS UNDER CHARTERPARTIES AND SHIP SHARING AGREEMENTS 83

(A) Charterparties 83

(B) Space sharing agreements 84

CHAPTER 9 PROOF AND CAUSATION 86

(A) Factual causation 86

(B) Legal causation 86

(C) Circumstantial evidence 87

(D) Process of elimination 87

(E) Burden of proof in cargo claims 89

(F) Dangerous cargo claims 92

CHAPTER 10 CARGO INSURERS, SUBROGATION AND RECOVERY AGENTS 97

CHAPTER 11 P&I COVER FOR CARGO CLAIMS 99

CHAPTER 12 SECURITY FOR CARGO CLAIMS AND P&I CLUB LETTERS OF UNDERTAKING 102

CHAPTER 13 ABANDONMENT OF CARGO 110

CHAPTER 14 RECOVERY ACTIONS – LETTERS OF INDEMNITY 113

CHAPTER 15 RECOVERY ACTIONS – CHARTERPARTIES 116

(A) Cargo responsibility clauses 116

(B) Employment order indemnity 117

(C) Unsafe port 120

(D) Dangerous cargo 120

CHAPTER 16 RECOVERY ACTIONS – THE INTER-CLUB AGREEMENT 122

Index 145