CMA CGM SA v Classica Shipping Co Ltd (The "CMA Djakarta") - QBD (Com Ct)(David Steel J) - 27 March 2003

Limitation - Shipowners claiming against time-charterers damages and an indemnity in respect of explosion and fire on vessel allegedly caused by time-charterers' breach of charter in shipping dangerous cargo - Whether time charterers entitled to limit liability under 1976 Limitation Convention

The vessel CMA Djakarta was chartered on an amended NYPE form for trading in the charterers' liner network. During the currency of the charter there was an explosion and fire on the vessel, leading to her abandonment. The shipowners claimed against the charterers damages in the sum of $26,638,032 together with an indemnity in respect of their exposure to cargo claims and general average contributions. The basis for the claim was that the explosion and the fire was attributable to the shipment of two containers containing bleaching powder, such shipment being in breach of the express terms of the charterparty relating to dangerous cargo.