On 15 February 2022 Contented Cow Co, Melbourne, Australia, contracts to sell to Shenzhen Provisions Inc., Shenzhen, Chi
Posted: Wed Apr 27, 2022 11:48 am
On 15 February 2022 Contented Cow Co, Melbourne, Australia,
contracts to sell to Shenzhen Provisions Inc., Shenzhen, China,
5,000 tins of its best quality, lactose-free milk powder on FCA
Melbourne terms (Incoterms, 2020).
On 24 February, Contented Cow Co informed Shenzhen Provisions
that the goods are ready to be shipped. In accordance with the
contract of sale, Shenzhen Provisions transfers the payment to
Contented Cow's account at the Bank of Melbourne.
Contented Cow Co packed the goods into five containers supplied
by China Line Shipping (CLS) and the containers are shipped aboard
the CLS vessel Navigator at the Port of Melbourne on 2
March 2021. A Bill of lading is issued the same day, which records
the shipment of five containers containing powdered milk.
The journey to Shenzhen is an eventful one. While passing off
the coast of Papua New Guinea (PNG), the ship is hijacked by a
small band of well-armed independence fighters from the island of
Bougainville. The pirates commandeer the Navigator and
force the captain and crew to sail to Kieta Port, on the Eastern
coast of Bougainville. There the crew are forced to unload valuable
cargo, including containers of grain, canned meat products and two
containers of milk powder shipped by Contented Cow Co. The armed
fighters hold the ship and its crew captive for three weeks, during
which time the ship's Captain was forced to file false reports that
the ship had docked to make necessary repairs. When the armed
fighters finally leave the ship, they warn the captain and crew to
leave PNG and not report the incident.
A fearful captain was careful not to report the hi-jacking until
after the ship with its crew had safely arrived in Shenzhen, just
over three weeks late. The Shenzhen Maritime Police finally receive
a report of the incident on 5 April 2021. A copy of the report is
sent to PNG Maritime Police in Port Moresby (capital of PNG), but
no other action is taken. Finally, the remaining three containers
of powdered milk are released to Shenzhen Provisions, over six
weeks later than the expected date of arrival.
Shenzhen Provisions is most disappointed. The milk was to be
supplied to local hospitals under a Government contract at very
favourable terms. The hospital managers were so angry with the
delay they refuse to buy anything from Shenzhen Provisions ever
again. In addition, due to (largely unfounded) fears over imports
being contaminated with Covid-19, the demand for imported food
products has dropped. Shenzhen Provisions can only sell the 3
remaining containers of powdered milk to alternative customers at a
large discount (below cost) and has lost all profits.
As the shipment of powdered milk has departed from an Australian
Port, destined for an overseas Port under a Bill of Lading, you can
assume that the Australian modified version of the Hague Visby
Rules applies to the contract of carriage.
contracts to sell to Shenzhen Provisions Inc., Shenzhen, China,
5,000 tins of its best quality, lactose-free milk powder on FCA
Melbourne terms (Incoterms, 2020).
On 24 February, Contented Cow Co informed Shenzhen Provisions
that the goods are ready to be shipped. In accordance with the
contract of sale, Shenzhen Provisions transfers the payment to
Contented Cow's account at the Bank of Melbourne.
Contented Cow Co packed the goods into five containers supplied
by China Line Shipping (CLS) and the containers are shipped aboard
the CLS vessel Navigator at the Port of Melbourne on 2
March 2021. A Bill of lading is issued the same day, which records
the shipment of five containers containing powdered milk.
The journey to Shenzhen is an eventful one. While passing off
the coast of Papua New Guinea (PNG), the ship is hijacked by a
small band of well-armed independence fighters from the island of
Bougainville. The pirates commandeer the Navigator and
force the captain and crew to sail to Kieta Port, on the Eastern
coast of Bougainville. There the crew are forced to unload valuable
cargo, including containers of grain, canned meat products and two
containers of milk powder shipped by Contented Cow Co. The armed
fighters hold the ship and its crew captive for three weeks, during
which time the ship's Captain was forced to file false reports that
the ship had docked to make necessary repairs. When the armed
fighters finally leave the ship, they warn the captain and crew to
leave PNG and not report the incident.
A fearful captain was careful not to report the hi-jacking until
after the ship with its crew had safely arrived in Shenzhen, just
over three weeks late. The Shenzhen Maritime Police finally receive
a report of the incident on 5 April 2021. A copy of the report is
sent to PNG Maritime Police in Port Moresby (capital of PNG), but
no other action is taken. Finally, the remaining three containers
of powdered milk are released to Shenzhen Provisions, over six
weeks later than the expected date of arrival.
Shenzhen Provisions is most disappointed. The milk was to be
supplied to local hospitals under a Government contract at very
favourable terms. The hospital managers were so angry with the
delay they refuse to buy anything from Shenzhen Provisions ever
again. In addition, due to (largely unfounded) fears over imports
being contaminated with Covid-19, the demand for imported food
products has dropped. Shenzhen Provisions can only sell the 3
remaining containers of powdered milk to alternative customers at a
large discount (below cost) and has lost all profits.
As the shipment of powdered milk has departed from an Australian
Port, destined for an overseas Port under a Bill of Lading, you can
assume that the Australian modified version of the Hague Visby
Rules applies to the contract of carriage.