China Pacific Insurance Co., Ltd. Shipping Insurance Operation Center v. Teh May Maritime Corporate Limited

Abstract

The Plaintiff insurance company sought to recover monetary damages for loss of goods, when iron ore purchased by the Plaintiff’s client and loaded unto the Defendant carrier’s ship in Brazil was alleged to be lacking in weight upon delivery in Shanghai. The Defendant argued that the difference in weight, as measured in wet metric tons, was due to the quality of the iron ore, which naturally drained off water weight during the voyage to Shanghai. This drained water had to be removed from the hold at sea to maintain the safety of the ship. The court found that the Plaintiff did not provide sufficient evidence to refute this argument, either through documentation or by using an alternative method of weighing the delivered ore in dry metric tons. The Plaintiff’s claim that goods were lost was not supported and judgment was rendered for the Defendant.