Home | Business News | Browse by Publication | M | Mondaq Business Briefing

Hague Rules: Dangerous Goods And Negligent Stowage.

Article Excerpt
Compania Sud Americana de Vapores S.A. v. Sinochem Tianjin Import & Export Corp. (The Aconcagua) [2009] EWHC 1880

The Aconcagua is the first dangerous goods case to deal directly with a carriers' right to recover an indemnity under Art IV rule 6 of the Hague Rules where loss arises from a combination of the shipment of dangerous cargo and a breach of the carriers' obligation to properly and carefully load, handle, stow, carry, keep, care for, and discharge the goods under Article III rule, 2.

On 30 December 2008, an explosion took place in the no 3 hold of the m.v. Aconcagua off Ecuador causing widespread damage to the vessel and her cargo. The cause of the explosion was self ignition of a container of calcium hypochlorite, which is a dangerous cargo and had been declared as such. The IMDG Code required the cargo to be stowed "away from" sources of heat. Despite this, the cargo was stowed in a position where it was surrounded on 3 sides by a bunker tank, which was heated during the voyage.

The vessel was on time charter to CSAV, who paid US$27,750,000 in settlement of the shipowners' claim. CSAV then pursued a claim against Sinochem, the shippers of the container, for breach of the terms of the bill of lading. The bill of lading was subject to the Hague Rules, under Art IV, rule 6 of which the shipper is liable for all damages and expenses directly or indirectly arising out of or resulting from the...

View this article FREE - Now for a Limited Time, try Goliath Business News
Free for 3 Days!