Onego Shipping & Chartering BV v JSC Arcadia Shipping

This High Court judgment by Mr Justice Hamblen arises from an appeal by Onego Shipping & Chartering BV against an arbitration First Final Award in a dispute with JSC Arcadia Shipping concerning the time charter of the vessel Socol 3 on the NYPE 1993 form. After timber was loaded at Loviisa and Kokkola, deck cargo shifted in heavy weather en route to Alexandria on 1 March 2008, prompting refuge at Halmstad and discharge and partial restow of deck cargo. The Tribunal found three effective causes: poor stowage, inadequate container-type lashings and care, and instability rendering the vessel unseaworthy. The court addressed two questions of law. On Question 1, it held that under Article 1(c) of the Hague-Visby Rules, the relevant “contract of carriage” for the on-deck statement is the bill of lading; thus the Rules apply to deck cargo unless the bills state carriage on deck and such cargo is so carried. On Question 2, applying Canada Steamship guidance, the court construed clause 13(b) to indemnify only losses effectively caused by the carriage of deck cargo, not those effectively caused by Owners’ negligence or breach of seaworthiness. The Tribunal’s contrary construction of clause 13(b) could not stand, and consequential orders were left for further submissions.