Posted: April 8th, 2015

The Division of Responsibility for Maritime Cargo

The Division of Responsibility for Maritime Cargo

Assignment 2: The division of responsibility for maritime cargo

Distance students: Electronically through MyLO assignment Dropbox
On-campus students: Electronically through MyLO assignment Dropbox AND hard
copy into the Assignment box in the MLM administration office
Before attempting this assignment:
1. Ensure the ‘Assessment‘ section in this Unit Outline is read and understood. If you
have any questions, please do not hesitate to contact the lecturer.
2. Ensure you understand the assignment question(s) and/or tasks. Once again,
consult your lecturer should you be unsure of any matters.
3. Carefully read the information contained in the ’Preparing assignments’ section of
the ’Toolbox’ and any other relevant information.

Task description & requirements
The Grand Keppel is a container ship plying a liner trade between Australia, New Zealand
and the United States. The Grand Keppel is registered in Australia and is owned by an
Australian company, Sea Sure Pty Ltd (SS). On 15 November 2014, she left the Port of
Melbourne and very soon after leaving, she encountered extremely heavy weather. At that
point, the ship’s engine failed. The powerless ship was severely rocked by the heavy seas.
The Ship’s Master ordered an urgent distress call be made. In the wild weather and
turbulent seas, a number of cargo lashings failed and 12 containers were lost overboard
before the ship was able to be towed back to port.
An initial investigation report issued by the Australian Transport Safety Bureau (ATSB)
indicated that the ship’s engine failed due to blockages in the fuel lines. While the ATSB
report was an initial report, it indicated that the blockages may have been caused by a lack
of proper maintenance and servicing of the engines. A final ATSB report will be issued after
further investigation and analysis.
One of the containers lost contained a very valuable cargo of bottles of premium first
pressing Olive Oil. The oil was owned by a shipper, Premium Producers Pty Ltd (PP). A bill
of Iading had been issued to the shipper PP with respect to the carriage of that container.
The bill was in the form of the BIMCO Conlinebill 2000 (Reading 4.2).

Department of Maritime and Logistics Management -JNBZS3 Maritime Law 22
PP subsequently commences an action against SS for breach of contract in the Federal
Court of Australia seeking substantial damages for loss of the oil. PP seeks the wholesale
value of the oil as damages in its action. Both parties accept that Australia’s amended
Hague Rules (aHR) applies to the cargo carriage and that the Federal Court of Australia has
jurisdiction to hear and determine the action. Note that Reading 2.2 contains the complete


Develop and justify the legal arguments that would likely be pursued by PP and SS in
respect of the legal action.

As to the body of the opinion, the approach to be applied is the FILA approach:

1. Facts

(In practice, working under this heading would require a brief overview of relevant facts.
However, for this assignment, all that is required here is a simple statement: ‘The facts are
as explained in the assignment task.’)

2. Issues

(A short description of relevant issues)

3. Law

(A discussion of relevant law. This must be the bulk of the assignment.)


3. Law

3.1 Overview – liability under contracts of carriage

3.2 PP arguments

3.3 $5 arguments

4. Application

(A short summary of the task for the court – what are the key arguments it needs to

NOTE: Further detail of the FILA approach can be found under Module 3.

Thus the overall assignment plan should be:

Cover page


Table of Contents


1. Facts

2. Issues

3. Law (with sub headings)

4. Application

References page

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