Lloyd's Maritime and Commercial Law Quarterly
US MARITIME LAW
Robert Force*
Martin Davies**
CASES
266. Chem One Ltd v MV Rickmers Genoa 1
Dangerous goods—knowledge by the carrier of the nature of the goods—failure to take adequate precautions to neutralise danger—liability of consignee
The ship Rickmers Genoa exploded four hours after colliding with the ship Sun Cross. Rickmers Genoa was carrying cargo from China to the United States, including a cargo of 600 tons of a magnesium-based desulphurisation reagent known as Super-Sul Mg-89. The collision breached Rickmers Genoa’s hull, causing seawater to flood the holds. The seawater reacted with the Super-Sul Mg-89, making flammable hydrogen gas. The accumulated hydrogen ignited, causing an explosion that significantly damaged the ship and cargo, and killed a crew member. The owners and charterers of Rickmers Genoa sued the owner of the Super-Sul Mg-89, which moved to dismiss. The US District Court for the Southern District of New York dismissed the claims.2 The shipowner and charterer appealed to the US Court of Appeals for the Second Circuit.
Decision: Affirmed. Appeal dismissed.
Held: (1) The defendant was not strictly liable under the Carriage of Goods by Sea Act (“COGSA”), s.4(6).3 Under that section, it is crucial that the carrier has not consented to carry the goods with “knowledge of their nature and character”. The district court found that the shipper of the goods gave the carrier a “US Harmonized Tariff Schedule (HTS) Code identifying its cargo of SS-89 as a magnesium-based substance”, and that the master of the vessel knew that the magnesium could emit highly flammable hydrogen when exposed to water. The crucial fact is not necessarily the way the shipper gives the carrier notice. It is the carrier’s knowledge of the goods’ dangerous nature, not the shipper’s, that conditions shipper liability. COGSA does not specify the form of notice. It has never been held that a reference to the IMDG code is necessary to place the carrier on notice of the cargo’s dangerous nature. It was undisputed that the shipper informed the carrier of the nature of the cargo and that the master knew that magnesium reacted to seawater to produce hydrogen. It is not necessary for the carrier to know the precise characteristics of
* Niels F Johnsen Professor of Maritime Law and Director Emeritus, Maritime Law Center, Tulane University Law School, New Orleans.
** Admiralty Law Institute Professor of Maritime Law and Director, Maritime Law Center, Tulane University Law School, New Orleans.
1. (2012) 502 Fed Appx 66; 2012 AMC 2986 (2d Cir).
2. In re Rickmers Genoa Litigation (2010) 752 F Supp 2d 379; 2011 AMC 843 (SDNY); digested [2011] IMCLY §264.
3. 46 USC §30701, Statutory Note, §4(6), equivalent to the Hague Rules, Art.IV, r.6.
US MARITIME LAW
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