Skuld P&I Club issues loss prevention bulletin to address the problem
The Skuld P&I Club has issued loss prevention bulletin to address the problem of mis-declaration of container contents as a way of dumping waste. In January, it was reported that a shipment of 50 containers was intercepted at the Port of Manila after being allegedly found to contain waste materials instead of the described “scrap plastic materials for recycling.
The mis-description of carfo is a potential risk, especially when dealing with container vessels. The are several reasons why cargo may be misdescribed – to secure a lower freight rate, to comply with terms and conditions of a contract of sale or to evade restrictions imposed by Customs or national authorities, including smuggling attempts. A shipper may also at time unintentionally misdescribe a cargo.
According to Art3. Rule 5 of the Hague Visby Rules and Article 17 Rule 1 of the Hamburg Rules, the shipper is deemed to guarantee the accuracy of the information provided by him.
When cargo is mis-described, the legal responsibility thus falls on the shipper. The Hague and Hague Visby Rules (Art 4 Rule 5(h)) provide that the carrier or ship is not responsible for any loss or damage for goods if they have been misstated by the shipper in the bill of lading.
However, despite the carrier having a right of reimbursement for any losses from the shipper or charterer, in reality the shipper or charterer may not have the financial resources to reimburse the carrier or may be half the world away and not easily pursued.
Furthermore, even if there is a right of resource against the Shipper, this does not necessarily protect the Carrier from being held primarily responsible by the authorities in the country where the container is discharged, or arrived at.
| The Skuld recommends that if operators are offered cargo for shipment which may consist of chemical and/ or waste materianl, it will be important to verify that these are being legitimately exported from the load port and legitimately imported in to the discharge port country. Legitimate shipments, subject to ensuring the cargo is carried safely, are unlikely to present much of a practical problem. |
It is usually the carriage of deliberately mis-declared/ unlawful shipments which place carriers in to a difficult position.
Source: The Skuld P&I Club
