Rusting in the rain

A ship agent was instructed to arrange for the collection of engine spare parts from the ship and deliver them to the principal’s yard.

However, the agent failed to arrange for the pickup in time and the parts sat outside the yard for four days. It was alleged that this waiting time caused rust and damage of over EUR135,000.

The principal held the agent liable for the full amount. However upon review, ITIC identified that the principal had never provided implicit instructions that the cargo could not be left outside.

It was argued on behalf of the agent that whilst they may have made a mistake with the timings, if instructions about storage were clear, they may have been able to take action to avoid the damage occurring.

The principal agreed with this and accepted a 50/50 settlement. ITIC paid approximately US$66,000.