The Sanko Steamship Co Ltd and Grandslam Enterprise Corporation v. Sumitomo Australia Ltd & Ors - Federal Court of Australia (Sheppard J.) - 29 November 1995.

Carriage of goods by sea - Loss of cargo in sinking - Whether demise and time charterers entitled to limit liability under 1957 Convention - Role of ship managers and manning agents

In February 1991 the bulk carrier Sanko Harvest sank after grounding on a reef in the Recherche Archipelago near Esperance, Western Australia whilst on passage from Tampa, Florida, with a cargo of phosphate. The ship had been bareboat chartered to Grandslam Enterprise Corporation and time chartered to Sanko Steamship & Co Ltd, who in turn issued a voyage charter to the owner of the phosphate, Sumitomo Australia Ltd. Bills of lading had been issued naming Sumitomo’s US buying agents as consignor and Sumitomo as consignee. US COGSA was incorporated into both the voyage charterparty and the bills of lading. Grandslam and Sanko brought an action claiming they were entitled to limit their liability under the 1957 Limitation Convention. Sumitomo brought a cross-claim for he value of the cargo lost, in the sum of $8,900,000.