Dangerous Cargo; A Minefield for Cargo Interests and Their Insurers

Introduction

The carriage of dangerous goods remains a legal minefield for cargo interests and their insurers in relation to their potential exposure to liability. The 2005 case of 'Primetrade v Ythan Limited' highlighted the possibility of liabilities attached to a bill of lading being transferred to a receiver of goods or to an intermediate holder of a bill. This article seeks to elaborate on the situations where this becomes a possibility and the need to seek specialised legal advice at the earliest opportunity.

It is estimated that more than 50% of the cargoes transported by sea today may be regarded as dangerous, hazardous and/or harmful and need to be handled with special care. Figures show that some of the most common claims resulting from the carriage of dangerous goods arise from the carriage of bulk cargo, these are not only high in number but also in value.

Problems may arise with the carriage of dangerous goods for any number of reasons, the most common of which being the pressure to work on cargoes before hatches have been properly ventilated or due to ship's monitoring equipment not being maintained. This area is particularly pertinent in the current climate as 2010 saw the commissioning of around 1,300 bulk carriers and as from January 2011 the International Maritime Solid Bulk Cargo Code ("IMSBC") becomes mandatory under chapter VI of the International Convention for the Safety of Life at Sea ("SOLAS").

Dangerous Goods

Concern in relation to the carriage of dangerous substances is demonstrated by the number of conventions that cover safety, although not all provide a definition of 'dangerous goods'. Neither SOLAS nor the Hague/Hague-Visby Rules nor the Hamburg Rules define dangerous goods, they either refer to relevant codes or give some examples. The main code used to define dangerous goods is the International Maritime Dangerous Goods Code ("IMDG Code").

The IMDG Code classifies dangerous goods in different classes, subdivides a number of these classes, defines and describes characteristics and properties of the goods which would fall within each class or division. There are ten main classes of dangerous goods under this code:

Explosives;

Toxic and infectious substances;

Gases;

Radioactive Materials;

Flammable liquids;

Corrosives;

Flammable solids or substances;

Miscellaneous;

Oxidizing substances;

Marine pollutants.

The International Code for the Construction and Equipment of Ships Carrying Dangerous Chemicals in Bulk...

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