Yew Huoi, How & Associates | Leading Malaysia Law Firm

CONTRACT (BILL OF LADING) – NO DUTY TO DETECT FRAUD: COURT CLEARS MAERSK OF LIABILITY FOR FALSE CONTAINER WEIGHTS

1. Summary and Facts:
In Stournaras Stylianos Monoprosopi EPE v Maersk A/S [2025] 2 Lloyd’s Rep 323, the claimant, Stournaras Stylianos Monoprosopi EPE, purchased three consignments of copper scrap from a Dubai seller. The containers were shipped on Maersk Klaipeda under three clean straight bills of lading naming SSM as consignee. Upon arrival at Piraeus, Greece, the cargo was found to consist of concrete blocks, not copper.
As a result, the Claimant sued Maersk for breach of the Hague Rules, negligent misstatement, and breach of duty of care. Maersk denied liability, arguing that it relied on the weights declared by the shipper. The Carrier also stated that the Verified Gross Mass (“VGM”) was intended for safety purposes only and that the bills of lading were issued with the remark “weight unknown.” Maersk further counterclaimed for freight and damages.

2. Legal Issues:
• Whether Maersk was breach of contract or duty in issuing clean bills of lading in the present case.
• Whether Maersk was negligent or made a negligent misstatement.
• Whether Maersk owed a duty of care to the consignee.
• Whether Maersk could rely on the contractual clauses in the bills of lading.

3. Court’s Findings:
• The claim was dismissed, and Maersk’s counterclaim was allowed.
• The Court found no evidence that the Carrier knew or should have known the Shipper provided fraudulent weight data.
• “Apparent order and condition” under Article III rule 3(c) of the Hague Rules refers only to the external appearance of containers.
• The Carrier was not obligated to verify the declared weight against the VGM data.
• The Carrier was entitled to rely on the Shipper’s declarations and the disclaimer in its B/L terms.
• No negligent misstatement was made, and the Hague Rules imposed no duty to verify cargo particulars.
• The Carrier owed no duty of care to prevent the fraud that occurred.

4. Practical Implications:
This judgment affirms the rights of the carriers and shippers including:
• Carriers owe no duty to double-check a shipper’s declared weight unless they have reason to suspect inaccuracy or fraud.
• The shippers bear primary responsibility to truthful weight declarations.
• Shipping companies can keep using computer systems to handle cargo details efficiently, and they don’t have to manually check every piece of information for each shipment.

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