Shun Da Marine v Pacific Inter-Link: Voyage Charter, Epoxy Coating, Cargoworthiness
In Shun Da Marine Transportation Co (S) Pte Ltd v Pacific Inter-Link Sdn Bhd, the Singapore Court of Appeal dismissed an appeal by Shun Da Marine, affirming the trial judge's decision that they were in breach of a fixture agreement. The agreement, evidenced by a fixture note dated 15 November 2003, chartered the vessel Asia Star to Pacific Inter-Link for the carriage of refined bleached and deodorised palm oil (RBD palm oil). The court found that Shun Da Marine failed to provide a vessel with epoxy-coated tanks as stipulated in the fixture, and that the vessel was not cargoworthy. The court held that clause 1(b) of the Vegoilvoy form did not provide a defense to the breach.
1. Case Overview
1.1 Court
Court of Appeal1.2 Outcome
Appeal Dismissed
1.3 Case Type
Admiralty
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The Court of Appeal held Shun Da Marine in breach of contract for failing to provide a vessel with epoxy-coated tanks suitable for carrying RBD palm oil. The court found the vessel uncargoworthy.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Pacific Inter-Link Sdn Bhd | Respondent | Corporation | Judgment for Respondent | Won | |
| Shun Da Marine Transportation Co (S) Pte Ltd | Appellant | Corporation | Appeal Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Belinda Ang Saw Ean | Judge | Yes |
| Chan Sek Keong | Chief Justice | No |
| Andrew Phang Boon Leong | Justice of the Court of Appeal | No |
4. Counsels
4. Facts
- Owners chartered the Asia Star to Charterers for carriage of RBD palm oil.
- Fixture note stated tanks were epoxy coated.
- Surveyor reported poor condition of cargo tanks due to coating failure.
- Charterers cited poor tank condition as reason for not accepting the vessel.
- Owners cancelled the fixture via e-mail.
- Charterers commenced action claiming loss and damage.
- Tanks' coating had broken down by as much as 40%.
5. Formal Citations
- Asia Star, CA 81/2006, [2007] SGCA 17
6. Timeline
| Date | Event |
|---|---|
| Fixture note for vessel Asia Star issued | |
| Gold River/Pacific Interlink charterparty dated | |
| Asia Star arrived at Belawan and Owners gave notice of readiness to load cargo | |
| Asia Star berthed and cargo tanks inspected by ITS surveyor | |
| Charterers cited poor tank condition as reason for not accepting vessel for loading | |
| Jason Wang cancelled the fixture via e-mail | |
| Charterers invited to re-inspect cargo tanks | |
| Daily work report for the vessel | |
| Asia Star left port | |
| Fixture of the Asia Star to Raffles Shipping and Investments Pte Ltd | |
| Cargo tanks accepted by SGS Testing & Control Services Singapore Pte Ltd | |
| Vessel carried two consecutive shipments of refined palm oil | |
| Vessel carried two consecutive shipments of refined palm oil | |
| Trial judge held the appellants in breach of a fixture | |
| Judgment reserved |
7. Legal Issues
- Breach of Contract
- Outcome: The court held that the Owners were in breach of the fixture agreement.
- Category: Substantive
- Sub-Issues:
- Failure to provide vessel with epoxy-coated tanks
- Vessel's cargoworthiness
- Related Cases:
- [2006] 3 SLR 612
- Cargoworthiness
- Outcome: The court found that the vessel was not cargoworthy at the time she was presented to the Charterers for loading.
- Category: Substantive
- Sub-Issues:
- Fitness of vessel to carry designated cargo
- Due diligence in making vessel cargoworthy
- Interpretation of Contractual Clauses
- Outcome: The court held that clause 1(b) did not protect the Owners from the consequences of a breach of the term relating to the vessel's description (epoxy coated).
- Category: Substantive
- Sub-Issues:
- Interplay between clauses 1(a) and 1(b) of the Vegoilvoy form
- Effect of clause 1(b) on liability for breach of clause 1(a)
- Related Cases:
- [1900] 2 QB 333
- [2004] 1 SLR 171
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Shipping Litigation
- Admiralty Litigation
11. Industries
- Shipping
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Pacific Inter-Link Sdn Bhd v Shun Da Marine Transportation Co (S) Pte Ltd | High Court | Yes | [2006] 3 SLR 612 | Singapore | The current judgment is an appeal of this case. |
| Sleigh v Tyser | Queen's Bench Division | Yes | [1900] 2 QB 333 | England | Cited for the principle that an overriding obligation on the Owners to exercise due diligence to provide a cargoworthy vessel could only be modified or restricted by clear words to that effect. |
| Sunlight Mercantile Pte Ltd v Ever Luck Shipping Co Ltd | Court of Appeal | Yes | [2004] 1 SLR 171 | Singapore | Approved and followed Sleigh v Tyser regarding the overriding obligation to provide a cargoworthy vessel. |
| The Brabant | Not Available | Yes | [1965] 2 Lloyd’s Rep 546 | Not Available | Applied to the present case, the judge read clause 5 as prevailing over the standard printed provision of clause 15. |
| The Lipa | Not Available | Yes | [2001] 2 Lloyd’s Rep 17 | Not Available | Cited as authority regarding the effect of qualifying words such as 'about' or 'without guarantee' on a vessel's description. |
| Sirius International Insurance Co (Publ) v FAI General Insurance Ltd | Not Available | Yes | [2004] 1 WLR 3251 | Not Available | Cited for the principle of ascertaining the contextual meaning of contractual language. |
| The Ficus | New York arbitral tribunal | Yes | SMA 2473, 25 April 1988 | United States | Cited as persuasive authority regarding the adequacy of tank coatings and the impact of deterioration on cargoworthiness. |
| The TFL Prosperity | Not Available | Yes | [1984] 1 Lloyd’s Rep 123 | Not Available | Cited by analogy regarding the effect of a clause limiting liability on obligations in respect of a detailed description of the vessel. |
| The Maaskant | New York arbitral decision | Yes | SMA 2688, 31 July 1990 | United States | Cited regarding the principle that typewritten clauses should govern and override printed clauses in the event of a conflict. |
| Maxine Footwear Co Ltd v Canadian Government Merchant Marine Ltd | Privy Council | Yes | [1959] AC 589 | England | Cited obiter regarding the interpretation of the word 'before' in the context of due diligence. |
| Malayan Motor & General Underwriter (Pte) Ltd v MH Almojil | Not Available | Yes | [1982-1983] SLR 52 | Singapore | Cited regarding the principle that cargoworthiness is judged by the standards and practices of the trade. |
| The Product Star (No 2) | Not Available | Yes | [1993] 1 Lloyd’s Rep 397 | Not Available | Cited regarding the principle that a discretion conferred by contract must be exercised honestly and in good faith. |
| Hongkong Fir Shipping Co v Kawasaki Kisen Kaisha Ltd | Court of Appeal | Yes | [1962] 2 QB 26 | England | Cited regarding the principle that a breach must be serious enough to go to the root of the fixture to allow the innocent party to treat the fixture as discharged. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Voyage charterparty
- Fixture note
- Epoxy coated
- Cargoworthiness
- RBD palm oil
- Vegoilvoy form
- Coating failure
- Due diligence
- Cargo contamination
15.2 Keywords
- voyage charter
- epoxy coating
- cargoworthiness
- palm oil
- shipping contract
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Shipping | 90 |
| Admiralty and Maritime Law | 90 |
| Voyage charterparties | 80 |
| Carriage of goods by sea | 80 |
| Contract Law | 70 |
| Breach of Contract | 70 |
| Charterparty Disputes | 60 |
16. Subjects
- Shipping
- Contract Law
- Charterparties