LQB7018: CARRIAGE OF GOODS BY SEA
ACADEMIC SESSION 2021/2022: SEMESTER II
Answer TWO (2) questions only.
1. Explain what is meant by the term “safe port” . To what extent was the charterer’s obligation to nominate a safe port modified by the decision of the House of Lords in The Evia (1982)? What questions, if any, have been left unanswered by that case? (*20 marks)
2. “While deductions from hire are permissible, deductions from freight are not.” Is this an accurate statement of the law and, if so, do you consider that the distinction is justified? (*20 marks)
3. Solo Carriers S.A. let their ship, the Millennium Falcon to Galactic Empire on time charter for a period of “ minimum 5 months maximum 6 months” . The charterparty provided,
“The Captain is to sign Bills of Lading for cargo presented in accordance with Mate’s or Tally Clerk’s receipts.”
The Millennium Falcon was delivered under the charterparty on 1 April 2021. On 19 August the ship was performing her fourth voyage and was due to complete discharging her cargo on or about 29 August. On 19 August, Galactic Empire gave instructions to Solo Carriers to proceed to Alderaan to load a cargo of sugar for discharge at two safe ports, Tatooine. After inquiries , Solo Carriers established that there was severe congestion at Alderaan and that it was unlikely that the ship could complete discharge at the second discharge port until early October.
Solo Carriers were also informed of rumours that ammunition had been found in bagged sugar cargoes from Alderaan in recent months. Solo Carriers are also concerned that Galactic Empire is suffering from a cash flow problem. Solo Carriers would like to clause any bills of lading issued in respect of the last voyage to protect Solo Carrier’s right to lien the cargo should Galactic Empire fail to pay the final hire instalment in full.
On 22 August Solo Carriers ask for your advice. (*20 marks)
4. Luke chartered the Death Star from Vader under a voyage charter to proceed to one or two safe ports in Coruscant, to be nominated by the charterer and thereat to load a full cargo of frozen fish for carriage to Stewjon. The terms of the charterparty required the charterer to nominate a reachable berth at each port and made provision for five lay days at each loading port, Sundays and public holidays excepted. A further clause provided that laytime would not run while loading was prevented by ice, floods or strikes. Luke subsequently nominated the ports of Naboo and Dagobah.
The Death Star reached Naboo late on Saturday evening 20 November 2021, but was required to anchor at the usual waiting place outside port limits for two days, because no berths were available. When a berth became free at 8.00 am on 23 November, the Death Star was prevented from proceeding to it because of a temporary shortage of tugs. When the Death Star did berth at 8.00 am on 24 November, loading was delayed for a further four days because Luke was unable to transport a consignment of haddock from a local refrigerated warehouse, where it had been stored awaiting shipment, because of ice on a canal linking the warehouse with the docks. When the consignment of haddock eventually reached the docks on 28 November, loading proceeded normally for two days, after which it was interrupted by a 48-hour strike of stevedores. Loading was completed within a further 24 hours.
The Death Star then sailed for Dagobah where the bulk of the remaining cargo was loaded within two days. However, Luke held back five crates of fish for a further three days because he had heard of a fall in the market price of fish at Stewjon. The loading was nevertheless completed within the five lay days, but the Death Star was prevented from sailing for a further 21 days by a combination of ice and thick fog which was a frequent occurrence off Dagobah at that time of year.
Advise Vader as to any claims he might have in respect of the delay at the two ports. (*20 marks)