London Arbitration 14/01

Cargo of rice - Receivers alleging that cargo was infested with insects - Vessel incurring considerable delays at discharge port - Whether owners entitled to claim indemnity from charterers in respect of costs incurred by reason of receivers’ allegations - Whether charterers under express or implied duty to fumigate cargo

The vessel was chartered on an amended Gencon form for the carriage of a cargo of bags of rice from Bangkok and Kosichang to Nouakchott, Mauritania. On discharge at Nouakchott the receivers complained that the cargo was infested with insects. Discharging was held up for a considerable period. The ship was arrested, and the owners only obtained her release - after considerable delay - against payment to the receivers of $500,000. The owners claimed an indemnity against the charterers in respect of that payment, as well as additional expenses at Nouakchott of $129,123 and damages for detention of $177,300.