Ask the Law explains when a shipowner is liable for cargo damage during a voyage
Question: A person rented (chartered) my ship to deliver some cargo to one harbour. During the trip, a storm broke out and some of his cargo was destroyed before delivery. The charterer (renter) refused to pay the full agreed-upon freight on the basis that the ship was not well equipped against storms, even though I did everything he requested for the trip, and he had checked it carefully before sailing.
My question is: does he have the right not to pay the full freight? Please advise.
Answer: According to Article 141 of Federal Decree by Law No. (43) of 2023 Concerning the Maritime Law, the shipowner shall be liable for the damage caused to the cargo received by the captain aboard the ship within the limits defined in the charter party.
The shipowner shall be relieved of the liability referred to in this Article if it proves that all its obligations have been fulfilled or that the damage has not occurred because of defective performance of such obligations.
A voyage charter is a contract whereby the shipowner undertakes to put at the disposal of the charterer a specific seaworthy ship, or any part thereof, provided that the chartered ship or part thereof is equipped with the necessary provisions, supplies and seafarers for one or more voyages, in consideration of a freight agreed upon between the parties to the charter party.
The shipowner must place at the disposal of the charterer, at the agreed-upon place and time, a seaworthy ship equipped with the required provisions, supplies and seafarers for the agreed voyage or voyages, and must maintain the ship in such condition throughout the period of the voyage or voyages.
Therefore, the charterer must pay the full agreed-upon freight if you can prove that you fulfilled all your obligations and that the damage did not occur because of any defective performance of such obligations.
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