Lloyd's Maritime and Commercial Law Quarterly
DEFINING THE LIMITS OF THE CARRIER’S RESPONSIBILITIES
The Jordan II
Article III, r 2 of the Hague Rules states that ‘‘the carrier shall properly and carefully load, handle, stow, carry, keep, care for, and discharge the goods carried’’. Read literally, the provision would require the carrier to perform all these tasks and to do so ‘‘properly and carefully’’. Until 1954 two of the three major academic texts adopted this view.1
However, in Pyrene
v. Scindia
2
Devlin J propounded the following alternative interpretation, which was based on a purposive reading.
It is difficult to believe that the rules were intended to impose a universal rigidity in this respect, or to deny freedom of contract to the carrier. The carrier is practically bound to play some part in the loading and discharging, so that both operations are naturally included in those covered by the contract of carriage. But I see no reason why the rules should not leave the parties free to determine by their own contract the part which each has to play. On this view the whole contract of carriage is subject to the rules, but the extent to which loading and discharging are brought within the carrier’s obligations is left to the parties themselves to decide.
These views were dicta
only, but three years later they were to form an important part in the reasoning of the majority of the House of Lords in Renton
v. Palmyra
.3
The issue there involved a clause in a bill of lading permitting discharge at an alternative port in the event of a strike at the contractual discharge port. The bill of lading specified discharge at London but, due to a strike there, the cargo was discharged at Hamburg. Their Lordships held that the shipowners were entitled to rely on the clause and were not, therefore, liable for the costs of transhipping the cargo to London. The majority approved Devlin J’s dicta
and classified the clause as one which defined the voyage undertaken by the carrier. As the carrier retained freedom of contract as to the scope of the contractual services it would undertake, there was no question of the clause falling foul of Art III, r 8. If such a clause operates by defining the scope of the carrier’s responsibilities, then it cannot amount to a ‘‘clause, covenant or agreement in a contract of carriage relieving the carrier or the ship from liability for loss or damage to, or in connection with goods arising from negligence, fault, or failure in the duties and obligations provided in this article or lessening such liability otherwise than as provided in these Rules’’.
Devlin J’s dicta
are of obvious relevance to FIOST (‘‘free in, out, stowed and trimmed’’) clauses, which purport to allocate responsibility for loading, stowing and trimming to the shipper and for discharge to the receiver. Such a clause recently came before the House of Lords in The Jordan II
.4
The case involved the carriage of a cargo of steel coils from Mumbai, India, to Motril, Spain. The cargo was alleged to have been damaged due to the manner of its stowage as well as due to the manner of its discharge.5
1. Scrutton on Charterparties and Bills of Lading
, 15th edn (1948), 26–27 and Temperley, The Carriage of Goods by Sea Act 1924
, 4th edn (1932), 26. The contrary position was taken by Carver on Carriage of Goods by Sea
, 9th edn (1952), 186.
2. Pyrene Co Ltd
v. Scindia Navigation Co Ltd
[1954] 2 QB 402, 418.
3. G.H. Renton & Co Ltd
v. Palmyra Trading Corporation of Panama (The Caspiana)
[1957] AC 149.
4. Jindal Iron and Steel Co Ltd and others
v. Islamic Solidarity Shipping Co Jordan Inc (The Jordan II)
[2004] UKHL 49.
5. The claims were brought against the shipowner by the shipper, charterer, and receiver.
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