Marine & Transit - March 2011

In this quarterly instalment of our newsletter, we review a number of recent marine law cases, including the important Supreme Court decision in The Cendor MOPU on the scope of the inherent vice exclusion in marine insurance and the Court of Appeal’s judgment in Rohlig (UK) Ltd v Rock Unique Ltd on the validity of the nine month time limitation in the BIFA standard terms.

Supreme Court rules on extent of inherent vice exclusion

What is the ambit of the inherent vice exclusion under the standard Institute Cargo Clauses? Terry Donaghy reviews the Supreme Court’s clarification of this issue in The Cendor MOPU, a judgment that is of some importance to the marine insurance market.

BIFA Terms revisited: time bar and set off

Is there scope for challenging the nine month limitation and prohibition against set off provisions in the standard BIFA terms? Mike Burns considers the recent Appeal Court decision on these topics in Rohlig (UK) Ltd v Rock Unique Ltd.

Cargo insurance: capture by pirates not a total loss

The Court of Appeal has confirmed that detention of a vessel and cargo by Somali pirates does not automatically enable an insured to claim for actual or constructive total loss. Emma Rice reviews the decision in The Bunga Melati Dua which provides further clarity and certainty to the marine market on this topical issue.   

Bunker supply: owners acquire good title against unpaid suppliers

What rights does a bunker supplier have if time charterers do not pay for bunkers which are then consumed by the owners following redelivery? Terry Donaghy reviews the decision of HH Judge Mackie QC in The Fesco Angara and the effect of section 25(1) of the Sale of Goods Act 1979 which will be of concern to bunker suppliers in the shipping industry.

Lien or bust: insolvency and charterparty liens on sub freights

In the prevailing difficult economic situation, the contractual right of lien on sub hires and freights can be an important weapon in a shipowner’s armoury. Mike Burns examines the decision of Briggs J in the Companies Court of Cosco Bulk Carrier v Armada Shipping.