Transport of Goods by Sea and Air
- On 28 May 2017, Chinese Steel is Great Inc (CSIG) (a company incorporated and carrying on business in China, contracted with Build Granny a Flat Pty Limited (BGF) (a company incorporated and carrying on business in Australia) to ship steel from China to Sydney. CSIG, contracts by bill of lading with Angelic Shipping Group (ASG), a Greek shipping company, to hire The Steel Magneta, a Panamanian ship owned by ASG, to transport the steel from Beijing to Sydney in late 2017. The contract for carriage between ASG and CSIG is governed by the Amended Hague Rules (as set out in Schedule 1A of the Australian Carriage of Goods by Sea Act 1991 (Cth). During the course of the voyage, the steel in the hold is damaged through exposure to moisture. ASG claims the damage is due to a peril of the sea as there was a severe storm on the journey from China to Australia on 15 and 16 December 2017. [unique_solution]However, CSIG says the storm was predictable and the damage only occurred due to either poor packing of the steel on board by the employees of The Steel Magneta or rust in the hull of the ship which caused it to list excessively during the storm such that water got into the onboard storage area. It is alleged the rust had been present for some years. CSIG wishes to argue that The Steel Magneta was not seaworthy and/or that the goods were not properly packed. You act for CSIG. Please consider the advice you will give CSIG in relation to potential breaches of seaworthiness and packing requirements by ASG of the Amended Hague rules in COGSA 1991 (Cth – Australia) and relevant cases.
- What are the types of charter party and what are their similarities and differences? What function does a charter party serve?
- Is a bill of lading like an Elephant (easy to recognise but hard to define) or is a bill of lading hard to recognise and hard to define? Discuss with reference to Cro Travel Pty Ltd v Australia Capital Financial Management Pty Ltd [2018] NSWCA 153.
- Why is seaworthiness so complicated? Discuss with reference to Articles 3 and 4 of the amended Hague Rules as defined in s 7 of the COGSA 1991 (Cth) and set out in Schedule 1A of COGSA Great China Metal Industries Co Ltd v Malaysian International Shipping Corporation Berhad [1998] HCA 65; (1998) 196 CLR 161 and C V Sheepvaartonderneming Ankergracht v Stemcor (A/sia) Pty Limited [2007] FCAFC 77 (31 May 2007).