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Lloyd's Maritime Law Newsletter

London Arbitration 12/04

Charterparty - Derrick collapsed during discharge of rice cargo preventing closure of hatch cover - Hatch opening covered by tarpaulin but cargo subsequently damaged by heavy rain - Whether collapse of derrick caused by stevedores or by unseaworthiness of vessel - Whether charterers liable for damage caused by stevedores - Whether owners liable for failing to prevent rainwater damage to cargo

The vessel, a 24 year old bulk logger/bulk carrier, was chartered on an amended North American Grain Charter Party 1973 form with rider clauses for the carriage of a full cargo of paddy rice in bulk from the Mississippi River to a named discharge port. The vessel arrived at the discharge port on 11 August, commenced discharge on 13 August and completed discharge on 30 August. On 22 August the boom of the vessel's No.2 Derrick collapsed across Hatch No.2. As a result, it became impossible to close Hatch No.2 despite the opening being covered by tarpaulin, and rainwater damage was subsequently caused to the cargo in Hold No.2.

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