Courts show less sympathy to carriers

Courts in the UK are increasingly ruling against sea carriers in global cargo disputes, signalling a notable shift in the judicial landscape. David Richards, the director at Shearwater Law and former deputy global head of P&I claims at NorthStandard, notes that recent rulings reflect a growing liability for carriers when faced with cargo damage and loss. "We’ve seen more rulings on cargo claims coming from the UK Supreme Court in recent years, which has not traditionally been the case." This shift began in 2019 when the UK Supreme Court clarified that carriers must demonstrate reasonable care for cargo. Significant cases following this change have included The CMA CGM Libra and The Happy Aras, where rulings underscored carriers' responsibilities.

Lower courts have also adjudged against carriers, exemplified by The Sur and The Santa Isabella, where failures in stowage planning and ventilation protocols resulted in lost claims. The recent landscape shows an evolution of legal attitudes, with judges less inclined to accept traditional defences that previously protected carriers. Richards emphasizes, "“Major container lines will face about 20,000 cargo claims every year while a large P&I club might get up to 10,000."

In light of these developments, Richards recently published Cargo Claims: The Essential Guide, aimed at addressing the gap in current shipping law literature regarding cargo disputes. "This new book is designed to look at the current trends in cargo claims through the lens of those who have legal and practical experience in defending these types of cases," he explains. Available now, the comprehensive guide serves as an essential resource for professionals engaged in maritime law and insurance, ensuring they navigate the increasingly complex cargo claims landscape adeptly.