News 07 Oct, 2024 Shipowners success in China’s Supreme Court: no change in cargo condition during transit Myrto Anghelakis Deputy Head of Claims The Club has in recent years experienced a large number of cargo claims in China arising from the shipment to China of agricultural products especially soyabeans. The Club supported Shipowner members in a recent case and successfully defended a claim for alleged damage to a cargo of DDGS before the Chinese Supreme People’s Court with the assistance of UK solicitors Waterson Hicks and PRC lawyers Wang Jing & Co. The Supreme Court set out a number of principles which may be usefully applied in future cases involving alleged damage to grain and other bulk agricultural cargoes particularly where damage is believed to be of preshipment origin.   Download PDF The Vessel “TOBA” arrived at Huangpu in October 2015 with a cargo of 55,000 mt Distiller's dried grains with solubles (DDGS) loaded at Destrehan, Louisiana. Immediately upon arrival the Receivers alleged cargo damage on the grounds the cargo was caked and burned. The Receivers set about segregating the DDGS into separate warehouses according to the lightness of its colour. The Receivers’ surveyors refused to allow Owners’ surveyors to observe the sampling of the cargo. Some 26,000 mt of the lighter coloured cargo was sold and, over two months later, Receivers alleged that the remaining 29,000 mt of darker cargo was off-specification due to a Hunter-L value below the contractually agreed value of 50. A higher Hunter-L value represents a lighter colour which is considered more desirable by Receivers in China. The cargo’s Certificate of Quality recorded a Hunter-L value of 50.8. The cargo sample relied on by Receivers returned a Hunter-L value of 42.5. It was clear that sampling of the darker 29,000 mt balance of cargo would return a lower Hunter-L value than if a proper composite sample of the whole 55,000 mt cargo had been tested. The Guangzhou Maritime Court r