Lloyd's Maritime and Commercial Law Quarterly
LIABILITY AFTER DISCHARGE
The Bunga Teratai
On 14 April 1986 a full container load of cartons of frozen prawns was discharged from the Bunga Teratai at Glebe Island Terminal in Sydney. Within about two hours the container and its contents were stolen. The container had been shipped from Sibu in Sarawak via Singapore on a through port-to-port bill of lading issued by the defendant carrier. The consignee sued the carrier but not the terminal operator. (The terminal operator was joined by way of cross claim by the carrier but the cross claim was settled during the course of the hearing at first instance.)
That portion of the contract of carriage which governed carriage by sea was subject to the Hague Rules as set out in the Carriage of Goods by Sea Order of the State of Sarawak. Article VII of those Rules allows the carrier a contract on whatever terms he wishes for the period after discharge.
Clause 8 of the bill of lading contained the critical provisions:
(2) Under no circumstances shall the Carrier be liable or responsible in any capacity for or in respect of—
(a) Any loss or damage to or in connection with Goods which arises or is due to any
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