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Lloyd's Maritime Law Newsletter

China Pacific S.A. v. Food Corporation of India (The Winson) - House of Lords (Lords Diplock, Simon, Keith, Roskill and Brandon) - 12 November 1981

Cargo owners to reimburse salvors for storage charges incurred for preservation of salved cargo

The respondent cargo owners chartered the vessel Winson to carry a cargo of wheat from a United States port to Bombay. During the voyage, on 21 January 1975, the Winson stranded on a reef in the South China Sea. The appellant salvors entered into a salvage agreement with the shipowners on Lloyd’s open form and managed to salve 15,429 tons of wheat in six parcels between 10 February and 20 April 1975. The salvors took the wheat to Manila where it was off-loaded and stored at the salvors’ own expense. Although aware that the wheat had been put in store by the salvors to preserve it from deterioration, the cargo owners made no request to the salvors for the delivery of the goods during the relevant period nor did they reply to a request by the salvors on 25 February 1975 to take delivery of the parcels of wheat on arrival at Manila.

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