Failure to forward full information

A shipbroker received a request to find a suitable ship for a shipment of steel pipes. Shortly after negotiations had commenced the charterer called to inform the broker that there was an additional dunnage requirement of approximately 7cm between each of the layers of pipes. Unfortunately the broker failed to forward this new information over to the owners.

Only once the ship was fully fixed did it transpire that the dunnage requirement meant that the ship was too small to carry the cargo.

The charterers could not use the ship for the intended cargo. The owners refused to accept the unilateral cancellation of the fixture and reserved their right to deadfreight in the absence of a full cargo being fully shipped. Unfortunately efforts to find alternative employment were unsuccessful. As the shipbroker had not passed on the message, the claim was passed onto them.

After a brief discussion regarding the amount of the owner’s claim it was settled by ITIC in the sum of Euro 40,000.

It is important to ensure that all correspondence is passed between the relevant parties, preferably in writing, so there are no misunderstandings.