Alianca Navegacao E Logistica LTDA v Ameropa SA

[2019] EWHC 3152 (Comm)

Case details

Case citations
[2019] EWHC 3152 (Comm) · [2020] Bus LR 360 · [2020] WLR (D) 1
Court
High Court (Commercial Court)
Judgment date
22 November 2019
Judgment text

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Subjects
Contract Carriage of goods by sea Cargo care and ventilation
Keywords
voyage charterparty usual and reasonable route deviation Hague-Visby Rules cargo care ventilation dewpoint rule three-degree rule demurrage quarantine
Outcome
claim succeeded in part
Judicial consideration

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Summary

A vessel must ordinarily proceed by the usual and reasonable route, assessed by commercial and navigational evidence. The carrier is not required, when selecting a customary ocean route, to undertake a detailed comparison of the effects of alternative routes on cargo care. A localised failure to alter course to protect cargo may nevertheless breach the Hague-Visby cargo-care obligation.

A sound ventilation system for hygroscopic cargo ordinarily applies the dewpoint rule or the three-degree rule whenever the relevant conditions exist, including at night unless weather or safety genuinely prevents ventilation. Failure to ventilate in accordance with that system can cause cargo damage and consequential discharge delay.

Factual background

Alianca, the disponent owner of the vessel Santa Isabella, claimed discharge-port demurrage and associated expenses from Ameropa under a voyage charterparty for the carriage of Mexican white maize to Durban and Richards Bay.

Ameropa alleged that the vessel had taken an impermissible route via Cape Horn, proceeded below warranted speed, failed properly to ventilate and disinfest the cargo, and caused the resulting damage, infestation and discharge delays. Alianca relied on the customary nature of the route, fumigation restrictions and weather conditions.

The principal issues were whether the route was contractually permissible, whether route selection could breach the cargo-care obligation, whether ventilation and disinfestation were adequate, whether quarantine exceptions applied, and what loss was caused by any breach.

Held

  1. Route. The Cape Horn route was a usual and reasonable route on the evidence and was not a deviation. The usual route is not necessarily the shortest geographical route. It may be established by commercial and navigational practice, including evidence from a single shipping line, and more than one usual route may exist. The court rejected the proposed broad inquiry requiring detailed comparison of alternative routes by reference to temperature, weather, ventilation and cargo effects.
  2. Route and cargo care. A localised decision to maintain course through a storm which could reasonably be expected to damage cargo may fall within the Hague-Visby cargo-care obligation. That principle, reflected in The Washington [1976] 2 Lloyd’s Rep. 453, did not justify treating the overall choice of a customary ocean route as a cargo-care breach.
  3. Ventilation. Under Article III rule 2 of the Hague-Visby Rules, “properly” means in accordance with a sound system and “carefully” requires careful application of that system. A sound system for corn would apply the dewpoint rule or the three-degree rule. Neither rule is confined to daylight. Where the criteria indicate ventilation and weather permits it, night ventilation is ordinarily required. Safety concerns must be genuine and managed by appropriate crewing and equipment.
  4. Alianca’s records showed only 107 hours of ventilation, although 308 hours were safe opportunities after fumigation. The cargo was therefore not ventilated in accordance with a sound system. Proper ventilation would probably have limited damage to a dried crust 6–12 inches deep on the top of each stow. The damage was not an inevitable consequence of the Cape Horn route or the fumigation period, so Article IV rule 2(q) did not apply.
  5. The vessel proceeded below its warranted speed, prolonging the voyage and exposure to condensation conditions, although no separate quantification of damage or delay was possible. Inadequate cleaning and disinfestation of the vessel’s topsides probably caused successive insect infestations, constituting a further breach of Article III rule 2.
  6. The events at Durban did not amount to “quarantine” within the charterparty exceptions because there was no real isolation of the cargo, vessel or crew. But for the breaches, discharge would probably have taken 8.5 days at Durban, producing 3.7 days’ excess over remaining laytime, and about 3.4 days at Richards Bay within the contractual laytime.

The court found Alianca in breach of the charterparty and reserved the consequential order.

The court’s approach to earlier authorities

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Key cases cited

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