A fire breaks out in the hold of a container ship between Singapore and Le Havre. The investigation traces it to a container declared as “spare parts” which in fact held lithium batteries. The shipowner declares general average; the shippers with cargo on board discover that they must contribute, and look for the party responsible.
The duty to declare
The IMDG Code, mandatory under the SOLAS Convention (Chapter VII), requires the shipper to classify, pack, mark and label the goods, and to draw up a dangerous goods declaration (Chapter 5.4). Misdeclaration, often prompted by the wish to avoid a freight surcharge or by the refusal of certain lines to carry the goods, is one of the identified causes of fires on board container ships.
The shipper’s liability
The Hague-Visby Rules allow a carrier which has not knowingly consented to the carriage of dangerous goods to land, destroy or render them innocuous without compensation; the shipper is liable for all damages and expenses arising from such shipment (Article IV, Rule 6). Under the French Transport Code, the shipper is liable for damage caused to the ship or to other goods through its fault or through the inherent vice of its goods (Article L. 5422-10). The carrier is not liable where the nature or value of the goods has been knowingly misdeclared by the shipper (Article L. 5422-17).
The other shippers: contribute first, then seek recourse
The fire often leads to a declaration of general average: the cargo interests must contribute to the sacrifices and expenditure incurred for the common safety, before any discussion of liability. They obtain delivery against security, then turn against the shipper at fault and its insurer. Identifying the container in which the fire started, through the fire survey, is the key to that recourse.
What the firm checks first
- The IMDG declaration and the description in the bill of lading.
- The survey findings on the origin of the fire.
- The identity of the shipper and of its insurer.
- The general average declaration and the security demanded.
- The time limits for bringing proceedings, in principle one year.
For the firm’s services, see Carrier liability and General average.
Further reading
- False container weight (VGM): the shipper’s liability
- General average: who pays, and how to challenge the adjustment?
- Cargo insurance: claiming under the policy after cargo damage
This analysis is part of the firm’s work in maritime law.
Frequently asked questions
Is the shipper liable for a fire caused by its misdeclared goods?
Yes, it is liable for damage caused through its fault or through the inherent vice of its goods (Article L. 5422-10 of the Transport Code; Hague-Visby Rules, Article IV, Rule 6).
Must the other shippers pay general average?
They contribute, then seek recourse against the party responsible.
May the carrier destroy undeclared dangerous goods?
Yes, without compensation, where it has not knowingly consented to their carriage (Hague-Visby Rules, Article IV, Rule 6).