Trafigura Pte Ltd v TKK Shipping Pte Ltd

Trafigura Pte Ltd v TKK Shipping Pte Ltd

'Goods lost or damaged' in Article IV(5)(a) of the Hague-Visby Rules includes goods economically damaged, not just physically damaged. Therefore, carrier’s liability for salvage and on-shipment costs is limited by reference to the weight of the entire cargo, not only physically damaged cargo.

Parties
Claimant: Trafigura Pte Ltd; Defendant: TKK Shipping Pte Ltd
Jurisdiction
England and Wales
Judgment Date
13 January 2023
Procedural Posture
Application Under Arbitration Act 1996 / Judgment on Point of Law Arising in Arbitration
Outcome
Application granted; point of law determined in favour of Claimant’s interpretation.
Legal Topics
Limitation of Liability, Hague Visby Rules, Economic Loss, Salvage, Mitigation of Damages
Shipping Law International Trade Law Arbitration Limitation of Liability Hague Visby Rules Economic Loss Salvage Mitigation of Damages

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Parties

Trafigura Pte Ltd

Claimant

TKK Shipping Pte Ltd

Defendant

Procedural Posture

Application Under Arbitration Act 1996 / Judgment on Point of Law Arising in Arbitration

Legal Issues

  1. 1 Whether 'goods lost or damaged' in Article IV(5)(a) of Hague-Visby Rules includes economic damage or is limited to physical damage
  2. 2 Whether carrier's liability for salvage and on-shipment costs is limited by reference to weight of salved cargo or only physically damaged cargo
  3. 3 Whether imposition of maritime lien constitutes physical damage for limitation purposes

Ratio Decidendi

'Goods lost or damaged' in Article IV(5)(a) of the Hague-Visby Rules includes goods economically damaged, not just physically damaged. Therefore, carrier’s liability for salvage and on-shipment costs is limited by reference to the weight of the entire cargo, not only physically damaged cargo.

Court Disposition

Application granted; point of law determined in favour of Claimant’s interpretation.

Orders

  • Carrier’s liability for salvage and on-shipment costs is limited to 2 SDRs per kilogramme of the entire cargo.
  • Counsel to agree an order giving effect to the judgment.