Deteriorated Seafood Claim Leads to Issues of Due Diligence in a Latent Defect Defence:

The recent decision of Justice Ryan in the Federal Court of Australia in Seafood Imports Pty Ltd v ANL Singapore Pte Ltd (2010) FCA 702, confirmed and followed the approach of the High Court of Australia in Great China Metal Industries Co Limited v Malaysian International Shipping Corporation Berhad (the 'Bunga Seroja') 1998 196 CLR 161, in a case involving heating damage to a consignment of frozen seafood.

BACKGROUND

In November 2005, a refrigerated container of seafood was shipped from Yokahama, Japan to Melbourne on the vessel 'CSCL Yantai' and was delivered in Melbourne with evidence of having sustained thaw damage. Seafood Imports Pty Ltd, being the consignee, brought proceedings against ANL Singapore Pte Ltd as bill of lading carrier maintaining that there had been a breach of the carrier's obligations under the Hague Visby Rules which applied to the bill of lading.