VOLCAFE LTD AND OTHERS V COMPANIA SUD AMERICANA DE VAPORES SA

[2016] EWCA Civ 1103, Court of Appeal, Lady Justice Gloster, Lady Justice King, Mr Justice Flaux, 10 November 2016

Carriage of goods by sea - Bill of lading - Carrier's liability – Carrier's duty to properly and carefully perform its duties - Inherent vice - Condensation on inside of container - Hague Rules, article III rule 2

The claimants were bill of lading consignees in respect of a number of shipments of coffee beans from Buenaventura in Colombia, transshipped in Balboa in Panama and then via different routes to north Germany. The beans had been damaged by condensate. Before stuffing, the bare corrugated steel of the container was lined by the stevedores with Kraft paper. The question was of the defendant carrier's liability; more specifically whether or to what extent stowage was properly effected and adequate to meet the threat of condensation, and whether the carrier was liable for any consequent damage. Under condition 10 of the bills of lading the carrier undertook responsibility for the whole of the intermodal transport. Condition 2 was a clause paramount subjecting the carriage to the Hague Rules, and the carrier accordingly argued that the stowage was not subject to the Hague Rules, having taken place before the loading on board ship. The judge gave judgment for the claimants against the carrier. The carrier appealed.