The executing carrier was obliged to pay damages

The carrier was responsible for the damage that occurred in a container with machinery that was being transported from Copenhagen to Hudson, Illinois, USA.

The process

On December 2014, Blue Water took over the transport of a container with various machine equipment from Soroe to Hudson, Illinois, USA for Kongskilde Industries A/S in Soroe, Denmark.

Blue Water contracted all transport from Copenhagen to Hudson to Cosco. In this context, a Sea Waybill was issued on December 31, 2014.

Upon arrival at the destination in the USA on January 26, 2015, it was found that the container was damaged and that the machinery in the container was totally damaged.

If Damage Insurance, as insurer, paid compensation to Kongskilde and thus entered into the claim against Blue Water.

The claims of the plaintiff and the defendant

If damage insurance applied, Blue Water Shipping A/S was ordered to pay DKK 340,743.52.

Blue Water applied for acquittal, subsidiary acquittal in exchange for payment of $14,500.

Blue Water also requested that Cosco be required to indemnify Blue Water for any claim that Blue Water had to pay to If Insurance.

The judgment of the Danish Maritime and Commercial Court

The matter was brought before the court in Glostrup but subsequently referred to the maritime and commercial law.

The dispute was brought to the attention of co-defendants, Cosco Container Lines America, Inc. North America Operation Center, but the co-defendant failed to respond within the allotted time.

The Sea and Commercial Court found that Kongskilde Industries A/S should also be aware that Blue Water had a disclaimer and that it applied to the carriage see Sea Waybill.

The Maritime and Commerce Court determines that the damage occurred during transportation on land in the United States and not during transportation by sea.

Thereafter, Blue Water’s liability was not limited to $500 per package unit.

The court ordered Blue Water Shipping A/S to pay If Schadenversicherung DKK 340,743.52 within 14 days, with interest thereon.

Inc. Cosco Container Lines America North America Operation Center has been ordered to indemnify Blue Water Shipping A/S against any claim, with associated interest and legal costs, which Blue Water Shipping A/S should pay to If Schadensversicherung.

Remarks

It was assumed that the damage happened in the custody of the carrier, but that the damage happened under the land transport.

This meant that the conditions for the exemption from liability or limited liability, see the Sea Waybill, were not met. As a result, Blue Water was found guilty and ordered to pay compensation.

Cosco did not file a statement of defense within the allotted time. This resulted in the Blue Water statement being used. After that, Cosco was to pay whatever Blue Water was supposed to charge.