Latest news from Heavy Lift & Project Forwarding International Magazine

Mind your T & Cs says specialist insurer

June 3 - ITIC, the specialist provider of professional indemnity insurance, has emphasised the need for marine surveyors and other shipping and transport intermediaries to include their terms and conditions in all their business dealings in order to prote

In the latest issue of its Claim Review, ITIC cites the case of a marine surveyor instructed by the shippers of a cargo of wheat to survey and certify the holds of a bulk carrier as fit for loading. The surveyor issued a certificate of fitness to load, and 70,000 tonnes of wheat was loaded. Following the arrival of the ship at the discharge port, the local authorities ordered the stevedores to stop discharge operations because they suspected that the cargo was heat-damaged. A subsequent survey report, obtained by the shippers, indicated that the cargo was contaminated by de-laminating paint, rust, dirt and paint powder from the ship's holds.

The shippers negotiated a reduction in price with the receivers as a result of the deterioration of the cargo, and pursued a claim against the shipowners under the terms of the contract of carriage. That dispute was resolved at mediation, but the shippers then brought a separate claim against the surveyor. They were seeking to recover alleged losses in excess of USD1million, including loss of sale proceeds, additional hire paid to the owners, and costs, on the basis that the surveyor had negligently certified the vessel as fit for loading in circumstances when it was not.

ITIC appointed lawyers, and expert evidence was sought. That evidence suggested that the damage may have been caused by bobcats used in cargo discharge operations. The surveyor had terms and conditions which - if properly incorporated into its business dealings - would have reduced its liability to a fraction of the shipper's claim. Unfortunately, the surveyor had not explicitly made the shipper aware of the terms and conditions, so it was unlikely that a court would find that these had been incorporated into the business dealing.

It also became apparent that, after the surveyor had inspected the vessel, customs inspectors had carried out their own inspection and had ordered that the vessel be cleaned prior to loading. This was both helpful and unhelpful for the surveyor: while it was a strong indication that the surveyor had failed to properly carry out its survey, it also arguably meant that it was not the surveyor's report that the shippers were relying on, but rather customs' approval to load.

A mediation took place, but the claim could not be settled. Negotiations continued nevertheless, and the matter was resolved with the surveyor contributing to around 30 per cent of the claim, which was covered by ITIC.

ITIC has written guidelines on the incorporation of terms and conditions, which can be found here.

www.itic-insure.com

Heavy Lift | News

Still time to enter ESTA Awards  thumbnail image

Still time to enter ESTA Awards 

January 17 - The deadline to enter the 2020 ESTA Awards of Excellence, which will be held on the evening of April 23 at the Postillion Hotel Amsterdam in the Netherlands, has been extended to January 25, 2020. 
Views: 411
Wijnne Barends opts for LNG newbuilds  thumbnail image

Wijnne Barends opts for LNG newbuilds 

January 17 - Wijnne Barends, based in the Netherlands, has placed an order with China’s WuHu Shipyard for four shortsea cargo ships featuring LNG propulsion and battery storage systems.
Views: 585
Methanex hat trick for Mammoet thumbnail image

Methanex hat trick for Mammoet

January 17 - Methanex has awarded the levee crossing and heavy haul scope of work for the construction of its Geismar 3 methanol plant in Louisiana, USA to Mammoet.
Views: 540
Charter rates fall in January  thumbnail image

Charter rates fall in January 

January 17 - Time charter rates in the multipurpose shipping sector have dropped over the last month, according to shipbroker Toepfer Transport.
Views: 476

Heavy Lift Across The World

Discover heavy lift and project logistics industry news from around the world by region.