Morlines Maritime Agency Ltd v IKO Industries Ltd - Federal Court (Trial Div)(Lutfy J) - 7 December 1999

Freight - Action by carrier against shipper for recovery of freight costs - Shipper already having paid freight forwarder in respect of shipments - Whether carrier entitled to recover unpaid freight costs against shipper

In 1996 the defendant was just starting out in the export business. It contacted Marine Marketing Ltd ('Marine'), a freight forwarder, to arrange for the shipments of cargo from Montreal to the door of the defendant's plant in Belgium. The defendant asked for and was offered by Marine a flat rate for shipments. The flat rate included all freight and handling charges as well as the freight forwarder's commission. It was the defendant's understanding that Marine would invoice the defendant and that the defendant would then pay Marine. Although it was clear that Marine would engage one or more shipping lines to carry the defendant's cargoes, the defendant had no detailed knowledge of Marine's subsequent arrangements. The defendant dealt directly with Marine to provide all necessary information about the cargoes that were to be shipped.