Serena Navigation Ltd and Anr v Dera Commercial Establishment and Anr (The “Limnos”) – QBD (Com Ct) (Burton J) – 15 May 2008
Carriage of goods by sea – Limitation of liability – Part of corn cargo physically damaged as result of water ingress – Remaining cargo acquiring reputation as distressed cargo and suffering diminution in value – Hague-Visby Rules Article IV Rule 5(a) – Whether “goods lost or damaged” referred to entire cargo or only to cargo physically damaged
A cargo of 43,998.66 tons of US corn was carried from Louisiana to Aqaba on the vessel Limnos. Heavy weather was encountered during the voyage, and on arrival at Aqaba a small amount of wetting damage was discovered in the holds, primarily in holds 2 and 3. The damage was caused by leakages through the hatch covers. The quantity of wet damaged cargo (around 12 tons) was disposed of. Another 250 tons of cargo in holds 2 and 3 was physically damaged and suffered an increased number of broken kernels because it had to be discharged by bulldozers. The total cargo physically damaged (around 262 tons) was referred to as “the conceded tonnage”.
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Michael Daiches, Barrister
Jun 4 2008
