In a keenly awaited development,1 a strong appellate committee of the House of Lords has given judgment in The Starsin, 2 reversing in part the majority decision of the Court of Appeal.3 The three issues raised by the appeal generated nearly 70 pages of reasoned judgment from their Lordships.4 The first issue was whether the shipowners or charterers were the carriers under the bills of lading, an intractable point litigated frequently5 and sorely in need of their Lordships’ guidance.6 The second issue was whether the shipowners were liable in tort. The third issue7 concerned what, if any, protection was afforded to the shipowners by the terms of the Himalaya clause8 in the bills of lading.

The facts were uncontroversial. The Starsin, a vessel of about 27,000 tonnes, was demise chartered by her registered owners to Agrosin. Agrosin fixed the Starsin on NYPE terms to Continental Pacific Shipping Ltd (“CPS”). Various cargoes of timber and timber products were loaded at Malaysian ports and, although some of the cargo was wetted by rain before shipment, clean bills of lading were issued. The cargo was also improperly stowed and 17 consignments were out-turned seriously damaged by water.