Class II Liability

Damage to hull arising from stevedore negligence

The Assured charters a container ship under a long term time-charter on an amended NYPE form. This charterparty contains the usual provisions with regard to the charterers being responsible for the loading, stowing and discharge operations of the vessel, under the supervision of the Master, with stevedores being appointed by the charterers. The vessel is ordered to a Far East port to load containers for Northern Europe.

All progresses normally and without incident until, during a scheduled stevedore meal break interrupting container loading operations, the wind speed at the port increases significantly. Unfortunately the stevedores have neglected to properly apply the shore-side container gantry crane’s braking system which results in the crane actually being propelled by the wind along its dockside rail track. Since the crane had been left with its overhanging gantry still in the lower container handling position, this strikes the ship’s accommodation housing towards the aft end of the vessel, causing significant damage and also destroying a communications mast along the way.

The stevedores, deemed to be the charterer’s servants, are negligent in leaving the crane in a dangerous condition, and there being absent some other technical explanation of a malfunction in the braking system. The vessel owner brings a claim under the charterparty arbitration clause against the charterers seeking to recover the cost of the extensive vessel repairs. The Club is able to assist the Assured initially by appointing a suitably qualified surveyor to inspect the vessel damage, in order to verify the amount of damage sustained, whilst also inspecting the shore-side crane and investigating the reason for the casualty. The Club is then able to assist the Assured in defence of the Owner’s action and reimburses the litigation costs and the amount awarded to the Owner as charterer’s liability for the cost of repairs. .