The Rena – still incurring costs

When do freight costs become payable? The MV Rena disaster is one of the most significant and worst maritime environmental disasters for New Zealand. On 5 October 2011 the cargo ship grounded on the Astrolabe Reef in the Bay of Plenty causing huge losses both environmentally and economically. The environmental clean-up cost alone was approximately NZ$47 million. Some two and a half years later there are still unresolved issues and losses resulting from Rena’s grounding.

Resource New Zealand Ltd v Mediterranean Shipping Co SA [2014] NZHC 292 is a recent case highlighting one of the ongoing issues. The New Zealand High Court was required to determine a key question regarding freight costs.