Trade Star Lines Corporation v Mitsui & Co Ltd (The “Arctic Trader”) - Court of Appeal (Evans, Peter Gibson and Brooke LJJ) - 4 July 1996

NYPE charterparty - Whether implied term that Master is under a duty to the charterers to clause the Mate’s Receipts for the cargo shipped if it is not in apparent good order and condition

The vessel Arctic Trader loaded a cargo of crude salt. The arbitrator found that the salt was contaminated by substantial quantities of stone, cement, pieces of tarpaulin, and pieces of metal. The arbitrator also found that the Master saw a level of contamination which ought to have induced him to clause the Mate’s Receipts. The Master did not do so. He issued clean Mate’s Receipts. Thereafter, clean bills of lading in accordance with the receipts were issued by the agents. The agents were appointed by the shippers, but they acted in this respect for the vessel’s time charterers who were authorised themselves or by agents to sign the bills on behalf of the shipowners.