Loss of MSC Carla Shakes Ship Repairers

Friday, August 06, 2004
The 2,400-teu containership MSC Carla, which was originally built in Sweden in 1972, broke in two during storms in the Atlantic during November 1997. The vessel was lengthened by South Korea’s Hyundai Mipo Dockyard (HMD) during 1984, the original contract being signed by Hyundai Corp and subsequently sub-contracted to HMD. At that time the owner was Sweden’s Brostrom. A US court has ruled that the loss ship was a result of deficiencies in work carried out at HMD during the lengthening operation. The North of England Protecting & Indemnity Association could recover $20m from HMD and Hyundai Corp (HMD’s owning company) after claiming that work was negligent, in breach of warranty, or otherwise gave rise to a product liability claim. HMD and Hyundai Corp have not yet decided whether to appeal this significant judgment – there is a 30 day period during which the companies can appeal. The key judgment is that HMD, which at that time had a very full order book including general repair contracts and other lengthening projects, hired sub-contracted welders to enable the contract to be completed on time and therefore the yard avoiding costly penalty clauses. Lloyd’s Register (LR) was the Classification Society involved, and there are possibilities that LR will also face court on this particular case. Part of the judgment was that no-one individual or organization would have been able to detect the fault at the time the ship left the shipyard. Hyundai has put forward some other reasons for the loss – including in-appropriate routing, overloading and flawed hatch covers. All these have been rejected. The judgment is seen as landmark case in determining how US courts will view the product liability of shipyards.
Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Schlumberger Announces Q1 Results

Schlumberger Limited (NYSE:SLB) today reported first-quarter 2014 revenue from continuing operations of $11.24 billion versus $11.91 billion in the fourth quarter of 2013, and $10.

Russia Ships First Oil From Offshore Arctic Platform

President Vladimir Putin hailed Russia's first shipment of Arctic offshore oil on Friday, saying the platform decried by environmentalists will help Moscow expand its global energy markets share.

Shipping Turns From Banks to Equity Markets for Cash

Shipping companies are turning to equity markets to fill a growing funding gap, betting that investors hungry for decent returns will provide capital to a sector

Legal

Korean Ferry Captain's Detention Could Extend As Death Toll Mounts

South Korean prosecutors investigating a ferry disaster said on Sunday they would seek to extend the detention of the ship's captain and two other crew by 10

Reports: Brazilian Tycoon Batista Investigated For Financial Crimes

Brazils federal police have opened an investigation into former billionaire Eike Batista for financial crimes, including insider trading, manipulation of markets and money laundering,

Shell Commited To Russia Expansion Despite Sanctions

Royal Dutch Shell is committed to expansion in Russia, Chief Executive Ben van Beurden told Russian President Vladimir Putin at a meeting on Friday amid sanctions

 
 
Navigation Offshore Oil Pipelines Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1301 sec (8 req/sec)