In: Accounting
You will need to answer this question using the four steps process. In your answer, you are required to discuss and apply relevant cases, sections of Acts of Parliament and/or terms of a treaty. The question has three parts.
The Happy Wanderer is a ship registered in the United States which is regularly maintained by its owners. The vessel was loaded at Fremantle, Western Australia, with a cargo of flour, bound for South Africa. During the voyage the ship collided with a whale which was migrating north to breed. When the ship docked in Cape Town it was found that the flour had been damaged due to seawater leaking into the hold. An inspection of the hull showed that the collision with the whale had caused a crack that lead to the water seepage.
Discuss the carrier's obligations under the Hague-Visby Rules.
Carrier's obligations under the Hague -Visby Rules
Article III paragraph 2 provides that, subject to the provisions
of Article IV, the carrier must “properly and carefully load,
handle, stow, carry, keep, care for and discharge any goods
carried”. Unlike seaworthiness, this duty extends throughout the
voyage and implies a greater degree of care than exercising “due
diligence”. The courts do not expect perfection from the carrier,
but it has been held that stowage was improper where -
• contamination of other goods occurred;
• there was inadequate or no ventilation;
• dry cargo was damaged by liquid goods; and
• vehicles were secured only by their own brakes.
The carrier must have a proper system for looking after the cargo
when stowed. He has a duty to use all reasonable means to ascertain
the nature and characteristics of the cargo and to care for it
accordingly, although the shipper should give special instructions
where special care is required. (Where water in tractor radiators
froze, it was held that the carrier should have been told of the
risks.)
In the given scenario Carrier has taken proper measures as required by law, however, collision with whale is out of the control vessel, hence carrier ship can't be held accountable for the same.