Vinnlustodin HF and Anor v Sea Tank Shipping AS (The
"Aqasia") [2016] EWHC 2514 (Comm.)
This case was concerned with a claim for US$367,836 for damage
suffered to a cargo of 2,000 tonnes of fish oil shipped in bulk for
a lump sum freight. The carrier admitted liability but sought to
limit its liability to £54,730.90 calculated with reference
to the limitation of liability under Article IV Rule 5 of the Hague
Rules of 100 pounds per metric tonne of cargo damaged.
It was held by Sir Jeremy Cooke in the High Court in England
that the word "unit" in Article IV Rule 5 referred to a
physical unit for shipment and did not mean a unit of measurement
or customary freight unit. Furthermore, he held that even if
"unit" was capable of applying to bulk cargoes it could
only apply to a "freight unit", and because the cargo was
shipped for a lump sum there was no assistance to be gained by the
carrier from such an interpretation.
