|
For centuries, admiralty lawyers have concerned themselves
with the concept of seaworthiness as it relates to the
transportation of goods by sea. Unless a vessel is reasonably fit
to carry a specific cargo on a particular voyage, it is
unseaworthy.
Under general maritime law, a shipowner's duty to furnish a
seaworthy vessel is absolute and non-delegable. It is also
independent of the shipowner's knowledge or intent. Breaching this
duty will result in liability for cargo loss or damage.
The shipowner's absolute duty to furnish a seaworthy vessel
has been modified in modern times by the Carriage of Goods by Sea
Act (COGSA). Under this statute, the ocean carrier is bound at the
beginning of a voyage to exercise "due diligence" to make the ship
seaworthy. There is no longer an absolute obligation on a
shipowner to send a seaworthy vessel to sea. Exercising due
diligence will suffice.
Due diligence requires the use of all reasonable means to make
the vessel seaworthy. Whether due diligence has been exercised
when an unseaworthy condition has been found is always a question
of fact. Some of the factors considered are: what was actually
done by the shipowner, and was it all that reasonably could have
been done to make the vessel seaworthy under the prevailing
circumstances.
The shipowner's due diligence duty is non-delegable.
Therefore, the ocean carrier is responsible for the negligent acts
of ship repairers or agents used to fulfill its duty. For example,
seaworthy certificates issued by classification societies hired by
shipowners to inspect vessels do not establish due diligence.
However, failing to perform classification inspections may be
considered a failure to exercise due diligence.
The shipowner's duty to use due diligence to make the vessel
seaworthy ends when cargo loading is completed and the ship breaks
ground on the voyage. Under the doctrine of "seaworthiness by
stages," this duty can arise again if the vessel calls at an
intermediate port during the voyage and the shipowner takes
substantial control of the vessel from the master during the
period.
The recent New York maritime arbitration of the M/V
TROPEOFOROS (S.M.A. No. 3148) illustrates this point. Here a cargo
consignee sought to recover for water damage to sugar carried from
New Orleans to Peru. While transiting the Panama Canal, the vessel
struck a lock and sustained damage to shell plates three feet above
the waterline. Bilge soundings were taken twelve minutes after the
incident and no water was found.
Divers examined the vessel and found only an indent below the
waterline. However, no inspection of the loaded cargo hold was
performed. Shortly thereafter, the shipowner's superintendent
engineer and repair team boarded and made temporary repairs. The
classification society approved the repairs and issued a seaworthy
certificate. However, a hose test of the repaired area was not
performed.
In the arbitration, cargo interests argued the shipowner
failed to establish the superintendent exercised due diligence and
his intervention made the shipowner liable for the faulty repairs.
The owner argued the damage was caused by a latent repair defect
which is excusable under COGSA.
The arbitrator found: "The apparent failure of the
superintendent to periodically monitor the vessel's watertight
integrity [by additional bilge soundings] cannot be considered an
exercise of due diligence. Similarly, his failure to conduct a
hose test in way of the temporarily repaired damage to the
[adjoining] wing tank also does not qualify as an exercise in due
diligence."
The arbitration reaffirms that shipowners must exercise due
diligence to make vessels seaworthy at the commencement of voyages.
More significantly, the arbitration serves as a reminder for
shipowners to insure their superintendents exercise due diligence
if they intervene in vessel repairs during a voyage.
|