Comment on the Decision of the Supreme Court in Volcafe Ltd v Compania Sud Americana de Vapores SA [2018] UKSL 61
| Author | Jia Jia |
| Position | PhD (Soton) |
| Pages | 49-57 |
[2020]
Vol.10
49
Comment on the Decision of the Supreme Court in Volcafe Ltd v Compania
Sud Americana de Vapores SA [2018] UKSL 61
Dr Jia Jia*
Abstract
The Hague Rules are si lent on the burden of proof issue and now, the Supreme Court provides a clear judgment
on the legal burden of proving negligence and exceptions under the Hague Rules in Volcafe Ltd v Compania Sud
Americana de Vapores SA.
1
Considering the popularity of containers in the carriage of goods by sea, the English
court has some interesting findings in relation to container transport. The Supreme Court ruled that the carrier had
the burden of proof under Art III rule 2 and Art IV rule 2(m) of the Hague Rules.
Facts and Issues
ags of coffee beans were carried in 20 unventilated containers from Colombia to
north Germany. Coffee beans are hygroscopic cargo; they absorbed, stored and
emitted moisture. When they were carried from a warm to a cooler climate in an
unventilated container, as in the present case, the beans would inevitably emit moisture which
would cause condensation to form on the walls and roof of the container.
2
At destination, all
but two containers suffered condensation damage.
The carriers issued nine bills of lading which incorporated the Hague Rules by a Paramount
clause (condition 2) and there were LCL/FCL (Less Container Load/Full Container Load)
terms.
3
The cargo interests claimed that the carrier did not fulfilled his obligation of care for cargo
under Art III rule 2 of the Hague Rules because he failed to use adequate Kraft paper to protect
the coffee beans from condensation damage. The carrier argued that even if he was liable under
Art III rule 2, he could rely on inherent vice exception under Art IV rule 2(m) on the ground
that the coffee beans were unable to withstand the ordinary levels of moisture forming in
unventilated containers from a warm to a cool climate.
* PhD (Soton)
1
[2015] EWHC 516 (Comm) (hereinafter Volcafe (QB)); [2016] EWCA Civ 1103 (hereinafter Volcafe (CA));
[2018] UKSC 61 (hereinafter Volcafe (SC)).
2
Volcafe (SC) [3].
3
FCL/LCL terms mean that the containers were provided and stuffed with the bags by the carrier but unloaded
by the consignee after arrival at the destination.
B
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