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Lloyd's Maritime and Commercial Law Quarterly

BILL OF LADING TERMS: ASCERTAINMENT AND CONSTRUCTION

Ahmet Gelgeç*

The Alion
In The Alion,1 548 containers and their contents (“the Cargo”) were shipped by the claimants, the cargo interests on board the vessel MV Alion, for carriage from India, the UAE and Saudi Arabia to Mombasa, Kenya. The defendants, who were the time charterers of the vessel, issued several identical bills of lading for the cargo as the carrier. The bills were subject to English law and jurisdiction and incorporated the Hague Rules (“the Rules”) as a matter of contract. On 15 September 2021, the vessel suffered a motor engine failure near the Salalah coast in the Arabian Sea, resulting in the vessel’s receiving salvage services. On or around 5 October 2021, general average was declared. With the assistance of the salvors, the vessel managed to discharge its cargo at Mombasa on 6 December 2021. Thereafter, the cargo was delivered to the receivers upon the salvage security and general average security provided. The claimant cargo interests reached a settlement with the salvors around 29 July 2022.2 Following this, they sought indemnity from the defendants under the carriage contract contained in or evidenced by the bills of lading for the salvage liability and particular average. An extension agreement was reached on 18 November 2022 between the carrier and the cargo interests, which they subsequently renewed until 20 June 2023. The cargo interests issued their claim concerning the salvage and particular average costs and expenses against the carrier under the bills of lading on 16 June 2023, which was within the one-year period of the Hague Rules, Art.III r.6; but it was served only after a year, on 5 July 2024, as the order from the court was obtained only on 27 June 2024, extending the period of the validity of the claim form for service until 16 December 2024.3
The relevant terms of the bills of lading with the issue before the court were as follows:
2. CLAUSE PARAMOUNT
(1) Save where the English Carriage of Goods by Sea Act 1971 applies the Hague Visby Rules compulsorily to this Bill of Lading, in which event this Bill of Lading shall be subject to the Hague Visby Rules, the Hague Rules shall apply and the Carrier shall be entitled to the benefit of all privileges, rights and immunities contained in Articles I to VIII of the Hague Rules, save that, notwithstanding the provisions of Article III Rule 8 of the Hague Rules, the limitation sum for the purpose of Article IV Rule 5 of the Hague Rules shall be £100 pounds sterling.
18. NOTICE OF LOSS OR DAMAGE, TIME BAR

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