Glencore International AG v Stanley Shipping Ltd: Bills of Lading, Cargo Loss, and Conversion
Glencore International AG sued Stanley Shipping Ltd, Crest Shipping Ltd, and Wyndham Shipping Ltd in the High Court of Singapore, regarding the loss of fuel oil cargoes shipped from Kuwait to Fujairah on the vessels Cherry, Epic, and Addax. Glencore claimed the defendants breached their obligations under the bills of lading and were liable for conversion. The court, presided over by Justice Kan Ting Chiu, found in favor of Glencore, holding the defendants liable for the undischarged cargoes and ordering damages to be assessed by the Registrar.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for the plaintiffs in these three actions for the cargoes which were not discharged or not fully discharged with costs, with damages to be assessed by the Registrar.
1.3 Case Type
Admiralty
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Glencore International AG sued Stanley Shipping Ltd for cargo loss and conversion after fuel oil was not fully discharged. The court found the defendants liable.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Glencore International AG | Plaintiff | Corporation | Judgment for Plaintiff | Won | |
| Stanley Shipping Ltd | Defendant | Corporation | Claim Dismissed | Lost | |
| Crest Shipping Ltd | Defendant | Corporation | Claim Dismissed | Lost | |
| Wyndham Shipping Ltd | Defendant | Corporation | Claim Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Kan Ting Chiu | Judge | Yes |
4. Counsels
4. Facts
- Glencore purchased oil from Metro and chartered vessels to carry it from Kuwait to Fujairah.
- The bills of lading stated the oil was to be delivered to the order of Banque Trad Credit Lyonnais.
- Glencore issued discharge instructions to Metro to discharge the oil into storage facilities at Fujairah.
- Metro instructed the vessels to discharge cargo as per Metro Trading International Inc orders without production of the original bill of lading.
- Only part of the oil was discharged at Fujairah; the remainder was carried to Singapore without Glencore's consent.
- The bank made payment under the letter of credit upon presentation of the bills of lading.
- Glencore UK, Glencore's agent, held the bills of lading.
5. Formal Citations
- The "Cherry", Adm in Rem 834/1998, 750/1998, 784/1998, [2002] SGHC 68
6. Timeline
| Date | Event |
|---|---|
| Plaintiffs purchased oil from Metro and chartered the Cherry. | |
| Oil loaded on the Cherry at Mina Abdulla, Kuwait; bill of lading issued. | |
| Plaintiffs issued discharge instructions to Metro. | |
| Metro instructed the Cherry to follow local instructions from Metro storage coordinator. | |
| Cherry arrived at Fujairah. | |
| Plaintiffs instructed Banque Trad Credit Lyonnais to endorse bills of lading. | |
| Credit Lyonnais forwarded bills of lading to Glencore UK. | |
| Decision Date |
7. Legal Issues
- Title to Sue on Bills of Lading
- Outcome: The court held that the plaintiffs were the holder of the bill for the purposes of the Act, even though the bill was in the physical possession of their agent.
- Category: Substantive
- Sub-Issues:
- Possession of bill of lading
- Agency relationship
- Conversion
- Outcome: The court held that the title to sue in conversion was transferred to the plaintiffs when the bills of lading were endorsed and delivered to their agent.
- Category: Substantive
- Sub-Issues:
- Title to sue in conversion
- Immediate right of possession
- Breach of Contract
- Outcome: The court held that the defendants did not fulfill their obligation to deliver the oil by complying with the instructions of Metro, as the instructions were to discharge all the oil into the storage facilities at Fujairah.
- Category: Substantive
- Sub-Issues:
- Delivery of cargo
- Discharge instructions
- Agency
- Outcome: The court held that the defendants could not avail themselves of the principle in Lloyd v Grace, Smith & Co because Metro's instructions were outside their authority as storage coordinators and the defendants did not regard Metro as anyone's agents.
- Category: Substantive
- Sub-Issues:
- Scope of authority
- Fraudulent acts of agent
- Causation
- Outcome: The court held that the plaintiffs had established their claims against the defendants and did not have to establish that they would not have suffered loss through other causes.
- Category: Substantive
- Sub-Issues:
- Proof of loss
- Inevitable loss
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
- Conversion
10. Practice Areas
- Admiralty
- Shipping
- Commercial Litigation
11. Industries
- Shipping
- Commodities Trading
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| The Shravan | High Court | Yes | [1999] 4 SLR 194 | Singapore | Cited regarding the requirement for a party suing on a bill of lading to be in possession of the bill at the time of the commencement of the action. |
| The Aramis | Unknown | Yes | [1989] 1 Lloyd’s Rep. 213 | Unknown | Cited in the context of possession of a bill of lading by an agent. |
| The Aliakmon | House of Lords | Yes | [1986] A.C. 785 | United Kingdom | Cited regarding a buyer taking delivery of goods as agent for the seller. |
| White v. Jones | House of Lords | Yes | [1995] 2 A.C. 207 | United Kingdom | Cited regarding the rights of a buyer to sue the carrier in contract as lawful holder of the bill, even if he held it as agent of the seller. |
| Bristol & West of England Bank v Midland Railway Co | Court of Appeal | Yes | [1891] 2 QB 653 | England | Cited regarding the transfer of the right to sue in conversion from a preceding party. |
| The "Berge Sisar" | Unknown | Yes | [2001] 1 LLR 663 | Unknown | Cited regarding the distinction between discharge and delivery of cargo. |
| British Shipowners v. Grimon | Unknown | Yes | (1876) 3 Rett. 968, 972 | Unknown | Cited regarding when delivery occurs. |
| Knight v. Fleming | Unknown | Yes | (1898) 25 Rett. 1070 | Unknown | Cited regarding when delivery occurs. |
| Chartered Bank v. British India S.N. Co. | Privy Council | Yes | [1909] A.C. 369, 375 | United Kingdom | Cited regarding when delivery occurs. |
| Lancashire and Yorkshire Railway Company, London and North Western Railway Company, and Graeser Ltd v MacNicoll | Unknown | Yes | (1918) 118 LT 596 | Unknown | Cited regarding intention in conversion when a party interferes with the goods of another. |
| Hollins v Fowler | House of Lords | Yes | (1875) LR 7 HL 757 | United Kingdom | Cited regarding dealing with goods at the request of a person with custody of them. |
| Lloyd v. Grace Smith | House of Lords | Yes | [1912] A.C. 716 | United Kingdom | Cited regarding the principle that a principal is liable for the fraud of his agent acting within the scope of his authority. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Bills of Lading Act (Cap 384) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Bill of Lading
- Voyage Charterparty
- Time Charterparty
- Conversion
- Discharge Instructions
- Delivery
- Holder
- Letter of Credit
- Storage Coordinator
15.2 Keywords
- Admiralty
- Shipping
- Bills of Lading
- Cargo Loss
- Conversion
- Glencore
- Stanley Shipping
- Fujairah
- Fuel Oil
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Shipping Law | 90 |
| Bills of Lading Act | 90 |
| Admiralty and Maritime Law | 90 |
| Carriage of goods by sea | 85 |
| Torts | 80 |
| Voyage charterparties | 80 |
| Conversion | 75 |
| Contract Law | 70 |
| Title to Sue | 70 |
| Breach of Contract | 60 |
16. Subjects
- Admiralty
- Shipping
- Contract Law
- Tort Law