TRADE

International Trade And Transportation Law



International Trade And Transportation Law

Scenario

Sammy, in Cardiff, sold 100 tons of sugar to Benny, in Manchester, FOB Cardiff. Benny then sold the goods to Carlos in Spain, FOB Cardiff. The contract provided that in the contract would be resolved under English Law and in England. Carlos sent instructions to Benny for the sugar to be shipped to Spain and requested that Benny make the shipping arrangements. Benny booked the shipping space and instructed Sammy to deliver the goods to the port. Sammy did so and obtained a 'received for shipment' bill of lading made out in Benny's name and to his order which he gave to Benny in return for Benny's payment.

During loading, a fire broke out destroying 10 tons of sugar and this lot was discharged from the ship. Under the terms of the contract, sellers were entitled to be paid the price on tender of a clean “on board” bill of lading. The bill of lading that was tendered to the buyer had by a printed clause acknowledged the shipment of the sugar in apparent good order and condition. There was a notation on the bill which stated that fire damage had occurred on part of the cargo amounting to 10 tons that had been discharged. The remaining cargo was damaged when the ship encountered an unusual storm.

When Carlos received the bill of lading he rejected it and refused to accept and pay for the goods because he doesn't have to accept a 'received for shipment' bill of lading. Further, not having been informed of the shipment, he had not insured the goods. Benny wants firstly to obtain payment from Carlos for the entire shipment, and secondly to recover from Sammy at least the price paid in respect of the 10 tons that were destroyed. He also wants Sammy to pay export duties which have become payable on the goods and to recover a proportion of the freight as a reimbursement for port handling and loading costs at Cardiff. Benny wishes to bring his suit in the case against both parties in England.

Case Analysis

100 tons of sugar had arrived but on arrival were found to be in poor condition, not because of the storm, but because the cargo of sugar was unable to withstand the length of the journey and the high temperatures involved in transit to Spain

Statutes offer a comprehensive collection of statutory provisions un-annotated and therefore ideal for this case. Goods in transit are a target for opportunities of all risks. Fire can break out almost anywhere. More rarely, some goods like road and rail accidents occur. Goods carried across water are subject to the predictable risks of loss or damage during the course of loading and of discharging, by sinking, stranding, by the ingress of water, by contamination by other goods, sweating and damage through shifting, etc. Perishable goods suffer if delayed.

Some cargoes, especially bulk cargoes, suffer a measure of inevitable loss due (for example) to natural shrinkage or to ...