The Claims Review - Issue 30, March 2014

27/03/2014

Two channel communication

At the outset of negotiations the principal instructed his broker that they were prepared to pay a daily rate plus a lumpsum for redelivery in the Far East. The principal and the broker were communicating on an electronic messenger system while the broker was having exchanges with the other party via email.

27/03/2014

Ensure you incorporate your standard terms and conditions

Shippers of a cargo of wheat instructed a marine surveyor to survey and certify the holds of a bulk carrier as fit for loading.

27/03/2014

Counting confusion

A new regulation was issued by local maritime authorities in South America, stipulating the type and number of tugs to be used depending on the size of a vessel.

27/03/2014

Foils fitting failure

The design of a passenger ship was undertaken by a naval architect, who was appointed by aship yard. Once the ship entered service, a number of problems were reported by the operator.

27/03/2014

Zeroing in on the mistake

A ship agent issued a manifest for seven containers of fruit to be shipped from the Caribbean. The system used did not allow for a zero figure to be put in front of the decimal point, so the temperature read as “-.5C”.

27/03/2014

Hydrographic howler

A hydrographic surveyor was appointed to conduct a survey for a harbour authority. The surveyor made a mistake taking the readings as they had not allowed for the depth of the transducer on the survey vessel. A total of three data sets were taken, each containing the same error. This resulted in the readings showing half a metre too little and the harbour authority restricted access to the harbour for certain seagoing vessels.

27/03/2014

The price of proving innocence

A ship agent was named as a second defendant by cargo interests in a claim for damage to significant quantities of imported aluminium.

A sinking feeling

A naval architect was approached by a research and development company who had produced a prototype “wave power generator” (WPG), a floating device used to convert ocean wave energy into electricity using air pressure created by waves. The naval architect was engaged to provide the necessary design and stability approval for the prototype, as required by local regulations.

27/03/2014

Shipbroker gets lost commission

A shipbroker fixed a ship on time charter from owners to charterers and then a voyage charter from the time charters to voyager charterers.

27/03/2014

Grand theft marine

Cash was stolen from a Master’s safe on a vessel. The matter was reported to the local police and investigated. The Master also initiated his own onboard investigations. The safe had a combination lock and only the Master knew...

27/03/2014

The high cost of enforcing your right to commission

A survey of London solicitors by ITIC shows the high cost of litigation. A simple claim for commission in the English Courts will cost over GBP 175,000. ITIC gave a panel of London solicitors – all who had previously been instructed on cases involving ITIC’s members – a claim scenario involving a broker who had been cut out of commission. The solicitors were asked to estimate the costs that the broker would have to pay to take the matter to court.