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 July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

U.S. Drillers Add Rigs Despite Crude Collapse

U.S. energy firms added 5 oil rigs this week after putting 21 rigs into service last week, the most in over a year, despite a collapse in U.S. crude prices from recent highs in June,

West Africa's August Crude Exports to Asia to Slip

West African crude oil exports to Asia were expected to fall to 1.84 million barrels per day (bpd) in August, Reuters data and a survey of traders showed.     Slower

DryShips Reaches Agreement with Ocean Rig

DryShips Inc. (NASDAQ: DRYS), a global provider of marine transportation services for drybulk and petroleum cargoes, and through its subsidiary, Ocean Rig UDW Inc.

Legal

DryShips Reaches Agreement with Ocean Rig

DryShips Inc. (NASDAQ: DRYS), a global provider of marine transportation services for drybulk and petroleum cargoes, and through its subsidiary, Ocean Rig UDW Inc.

Cruise Industry Wins Key Norovirus Judgment

In what is being seen as a landmark decision, Hill Dickinson is the first law firm to have successfully defended a UK class action case involving a Norovirus outbreak onboard a cruise liner.

South China Sea Hotline in the Works

China and Southeast Asian nations have agreed to set up a foreign ministers' hotline to tackle emergencies in the disputed South China Sea, a senior official of

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Ship Simulators 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: 0.2841 sec (4 req/sec)