Manufacturer-shipper Liable for Containership Loss

Monday, October 24, 2005
In a high visibility (but not precedent setting) case, a company that both manufactured a chemical product and was the shipper of the product was held liable for loss of the container ship and the other cargo that the ship carried. The court found that the containership caught fire and became a constructive total loss after a container holding 120 drums (300 pounds each) of calcium hypochlorite spontaneously ignited. The ship owner and operator and numerous cargo interests sued the manufacturer-shipper, alleging strict product liability, failure to warn, and negligence. Regarding product liability, the court held that, while the manufacturer did not have actual knowledge of the full extent of the danger presented by shipping this particular cargo in this particular manner, it was in a better position than the carrier to ascertain ahead of time the true nature of the shipped goods. The court found that manufacturers have a duty to warn of dangers that are known or should be known through the exercise of reasonable diligence. The court also found that previous incidents involving shipment of this product and published reports should have caused the manufacturer to further investigate the risks of transporting the product in this particular manner, although the shipment was in accord with the basic requirements of the IMDG Code as of the time of the shipment. Note: the IMDG Code has been amended since this incident. In re M/V DG HARMONY, No. 98-Civ-8394 (S.D.N.Y., October 18, 2005).

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter February 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Cautious Optimism on Pacific NorthWest LNG Report

Canadian Environmental Assessment Agency (CEAA)  has ruled that Pacific NorthWest LNG’s project in British Columbia would likely harm harbour porpoises and contribute to climate change,

UPS Oposes CP-NS Merger

UPS, one of North America’s largest intermodal shippers, has told federal regulators that it is against Canadian Pacific Railway's (CP's) proposed acquisition of Norfolk Southern Corp.

SunEdison Restrained from 'Unusual' Asset Transfers

Solar company SunEdison Inc said a U.S. court has restrained the company from making any unusual asset transfers until a hearing in a lawsuit brought on by investors

Offshore

Premier Oil and Rockhopper Abandon Ocean Rig Contract

Two of the major British players in Falkland Islands offshore oil development, Premier Oil and Rockhopper Exploration, cancelled a joint venture contract with Ocean Rig UDW.

US Oil Drillers Cut Rigs to Least in 6 Years

U.S. energy firms this week cut oil rigs for an eighth week in a row to the lowest levels since January 2010, data showed on Friday, as energy firms continue to

Eni, Exxon, Statoil Win Irish Offshore O&G Licences

The Irish government said on Thursday it had awarded oil and gas licences to companies including oil majors Eni, Exxon and Statoil , allowing them to explore for hydrocarbons off the coast of Ireland.

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
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: 0.0861 sec (12 req/sec)