cargo, damage, Hague Rules, Court of Appeal, freight, unit Home Publications Articles The Aqasia – Package Limitation and Bulk Cargo under the Hague Rules The Aqasia – Package Limitation and Bulk Cargo under the Hague Rules Articles Joanne Sharma Published: June 01, 2018 Contact author Download article pdf The Court of Appeal in Vinnlustodin Hf and Another v Sea Tank Shipping AS (The Aqasia) recently upheld the decision of the Commercial Court on the applicability of the limitation in Article IV rule 5 of the Hague Rules to bulk cargoes. Background The dispute arose out of damage to a cargo of fish oil in bulk carried on board the “Aqasia” pursuant to a Charterparty that incorporated into its terms the Hague Rules.  That the cargo had been damaged was not in dispute.  The contested issue was the right to limitation under Article IV rule 5 of the Hague Rules.   Article IV rule 5 provides that: “Neither the carrier nor the ship shall in any event be or become liable for any loss or damage to or in connexion with goods in an amount exceeding 100 pounds sterling per package or unit,…” Charterers’ claim was based on 547,309 kg of cargo amounting to a claim for losses of US$367,836, plus interest and costs. Owners argued that the claim should be subject to the limitation provisions of Article IV rule 5 and that the word “unit” could applied to the measurement used to quantify the cargo in the contract of carriage.  Freight had been paid as a lump sum. However, the cargo had been described in the Charterparty as “2,000 tons cargo of fish oil in bulk, 5% mol chopt” .  Therefore, Owners argued that the limitation of £100 pounds should be applied with the relevant “unit” being a metric ton. If Owners were correct, the claim would be limited to approximately £54,700. The parties agreed to submit the point to the Commercial Court as a preliminary issue. The Commercial Court determined that the phrase “package or unit” referred to physical item