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cargo, receivers, contamination, Arbitration Tribunal, Korea, Korean courts Home Publications Articles Rejection of Cargo by Receivers - A Case Study in Cargo Contamination Rejection of Cargo by Receivers - A Case Study in Cargo Contamination Articles Shirley Wu Published: February 04, 2019 Contact author Download article pdf Image It is not uncommon that, upon arrival at the discharge port, cargo receivers may delay taking delivery or reject the cargo for various reasons, for example, damage to the cargo, delay in arrival of the original bill of lading, disputes under the sale contract, or difficulties in the market. Carriers are often caught in a very difficult position of trying to mitigate loss and finding a way to dispose of the cargo, often without any cooperation from the receivers. The urgency of the next voyage, extra cost and expenses in keeping the cargo, additional risks to the safety of the cargo and other reasons may put great pressure on the carriers. Do the carriers have to keep the cargo until the receivers finally take delivery or formally abandon the cargo, or are they free to take steps to dispose of the cargo and/or leave the discharge port? This article, by analysing a recent cargo contamination case, tries to illustrate the difficulties faced by the carrier in a situation where receivers rejected a (partially) contaminated cargo and refused to cooperate with the carrier in finding ways to dispose of and/or salvage the cargo, leaving the carrier on its own to try to mitigate loss. We highlight the importance of exploring all possible legal and commercial options to resolve a situation which could potentially expose the carrier to substantial loss/damage and consequential loss claims. Position under English law Delivery is an action completed by both sides – proffering delivery and taking delivery – which together accomplish the final stage of a contract of carriage. However, this does not mean that receivers are obliged to take de
Rejection of Cargo by Receivers - A Case Study in Cargo Contamination
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