Shipowner Not Liable For Cargo Damage Resulting From Poor Stowage

In Yuzhny Zavod Metall Profil LLC v Eems Beheerder B.V. (The "EEMS SOLAR") [2013], the Court was asked to examine whether the shipowner was liable to the lawful holder of the bill of lading for damage caused to the cargo, and found that it was not.

Background

Russian metal trading company Yuzhny Zavod Metall Profil (YZMP), the holder of a CONGEN 1994 bill of lading, took delivery of 411 coils of steel sheets at Novorossiysk, Russia, all with varying degrees of damage. YZMP decided to claim under the bill of lading against the owner, Eems Beheerder B.V., as carrier under the bill of lading. YZMP maintained that the owner was in breach of Article III Rule 2 of the Hague Rules 1924 (incorporated into the bill of lading) whereby the owner is required to "properly and carefully load, carry and discharge the goods".