ONEGO SHIPPING & CHARTERING BV V JSC ARCADIA SHIPPING (THE M/V "SOCOL 3")

[2010] EWHC 777 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Hamblen, 23 April 2010

Charterparty (time) - Deck cargo - Application of deck cargo rule to charterparty - Statement in charterparty that cargo will or may be carried on deck - No statement of what or how much cargo - On-deck statement in a bill of lading sufficient to exclude the application of the Hague-Visby Rules to the charterparty - Construction of clause 13, NYPE 1993 - Owners not entitled to indemnity for loss damage or liability caused by negligence or breach of seaworthiness obligation - Hague-Visby Rules, article I(c) - NYPE 1993, clause 13

The claimant charterers appealed an arbitration award in relation to a time-trip charter of Socol 3 on an amended NYPE 1993 form. The charterparty stated that cargo would or might be carried on deck, but not what cargo or how much ("an on-deck statement"). Deck cargo had been lost and the vessel had taken refuge at the port of Halmstad. The arbitration tribunal had found three causes of the loss: an inadequate method of stowage of the deck cargo; unsatisfactory lashing equipment and inadequate care of the lashings during the voyage; and the instability of the vessel. The award allowed owners' claims for hire during the period at Halmstad; dismissed charterers' claims for expenses relating to discharge and restowage; and ordered charterers to indemnify owners in respect of any cargo claims. Charterers appealed. On appeal, the first question was whether an on-deck statement in a bill of lading was sufficient to exclude the application of the Hague-Visby Rules to the charterparty. The second question was in respect of what loss, damage or liability clause 13(b) of the NYPE 1993 form provided an indemnity.