The "Yahroma" - W Sw AC - 30 June 2003

Marine insurance - Institute Cargo Clauses - Vessel foundering in bad weather - Cargo totally lost - Insurers rejecting insurance claim - Whether vessel sent to sea in unseaworthy state with privity of shipowner

Turkish Ocumuslar Tic. sold a cargo of larch and redwood to Swedish ESI "c&f free out Alexandria" with special duty for ESI to charter a vessel for the cargo. ESI sold the cargo on to El Tawfik "cif Alexandria port free and out". The timber was loaded at Lososibirsk on Russian river freighter Yahroma, chartered by Ocumuslar for carriage down the Jenissej River, west over the Kara Sea past Nova Semlja and south through Russian rivers for transhipment. The vessel foundered in hard weather in the Kara Sea, cargo being totally lost. The cargo was insured on ESI's behalf with Atlantica Modern Insurance (Atlantica) with policy assigned to Tawfik, who claimed compensation.