LAW OF CARRIAGE

(LAW530)

NAME : ABDUL SYAREEZ AIMAN BIN ABD RASHID

MATRICS NUMBER : 2020976915
GROUP : BA2474C
SUBMISSION DATE : 22/7/2021 (5PM)
LECTURER’S NAME : NURRULHUDA BINTI AHMAD
MUHAMMAD AZRIL BIN ROSLAN
 QUESTION 1

ISSUE

Issues found in the question falls under Carriage of goods by sea. It is possible
that Mat Kool Sdn Bhd (MKOSB) and Ihsan Sdn Bhd (ISB) have rights and liabilities to
cease the payment because of the issues that happened fall under Carriage of goods by sea
could be applied to solve this issue.

LAW

Based on the issue, a off hire clause that falls under Clause 11,Baltime 1999
could be applied where no hire shall be paid in respect of any time lost thereby during the
period in which the vessel is unable to performed the service immediately required. Besides
that,breakdown machinery and defficiency of men which falls under the Off Hire Clause
could also be applied. Under the same clause, in the event of loss of time from deficiency of
men or stores, fire, breakdown or damages to hull, machinery or equipment, grounding,
detention by average accidents to ship or cargo, dry docking for the purpose of examination
or painting bottom, or by any other cause preventing the full working of the vessel, the
payment of hire shall cease for the time thereby lost and if upon the voyage the speed be
reduced by defect in or breakdown of any part of her hull, machinery or equipment, the time
so lost, and the cost of any fuel consumed in consequence there of, and all extra expenses
shall be deducted from hire. For example, the breakdown of machinery case is The
Westfalia, deficiency of men case is the Bentson vs Shank and The Bridgestone is for any
other cause that preventing the working of vessel.

Moreover, under the Time Charter, Charterer’s Right to Employ Vessel

(Employment) the charterer has the right to order the vessel as where to sail,the charterer is
under obligation to indemnify the shipowner against any loss or direct consequence of master
obeying its order regarding employment or agency. For example case The Larrinage vs The
King.

Other than that, under Section 2 of the Seaworthiness Act also can be applied
in this case whereby a ship is considered unseaworthiness when,because if defects in
hull,equipment,machinery or crewing or due to overloading or deficient loading or other
grounds,it is in such condition that is consideration of the vessel’s trade the risk to human life
associated with going to sea exceeds what is customary. Under the condition of the crew or
manning – sufficiency which state the law regarding the number of crews on board. For
example, in the case of Annen v Wood.

Applications

For application, Mat Kool Sdn Bhd (MKOSB) hired vessel M.V Selasih owned
by Ihsan Sdn Bhd (ISB) where MKOSB is not satisfied with the service of M.V Selasih and
wanted to cease payment of hire during repairing time and detention period,this can be
applied under clause 11, Baltime 1999 where no hire shall be paid in respect of any time lost
thereby during the period in which the vessel is unable to performed the service immediately
required.

In addition, during upon its arrival at the Port of Sandakan, the ship’s high-
pressure engine broke down and required immediate repair. In addition, it was also
discovered that the ship’s cranes were malfunctioning . Under hire clause 15 breakdown of
machine from this clause M.V Selasih owned by ISB facing high pressure engine broke down
and ship’s crane were malfunctioning. In this situation M.V Selasih required extend time for
repairing time and MKOSB has right to cease the payment of hire during repairing time also
the ship resumed its service with only 12 instead of the required 20 crew members. So this
falls under the Clause 11, Baltime 1999, Off Hire Clause, in the event of loss of time from
deficiency of men or stores, fire, breakdown or damages to hull, machinery or equipment,
grounding, detention by average accidents to ship or cargo, dry docking for the purpose of
examination or painting bottom, or by any other cause preventing the full working of the
vessel, the payment of hire shall cease for the time thereby lost and if upon the voyage the
speed be reduced by defect in or breakdown of any part of her hull, machinery or equipment,
the time so lost, and the cost of any fuel consumed in consequence there of, and all extra
expenses shall be deducted from hire.

Besides that, any charterer has the given right to employ a vessel as well as the
right to order the vessel as where it should sail. Based from this case, MKOSB hired the
vessel M.V Selasih owned by (ISB) come to an agreement under the term of standard Baltime
time charterparty. In this case MKOSB is a charterer and ISB is the shipowner. This is
related under the Charterer’s Right to Employ the Vessel, the charterer has the right to
order the vessel as where to sail. But, the master (in the absent of any written contract) will
find the way (run the vessels). The charterer is under obligation to indemnify the shipowner
against any loss or direct consequence of master obeying its order regarding employment or
agency.

Two weeks later, the ship resumed its service with only 12 instead of the
required 20 crew members. The COVID-19 virus had affected those eight crews who had to
be hospitalized. Captain Sudin decided to continue the course with the available crews,also
M.V Selasih experienced machine breakdown which requires them to extend their stay in
Port Sandakan for another 2 weeks. because the lack of workers due to those who are affected
COVID-19. The vessel travel without the eight workers in order to avoid risk of spreading
further infection.This is applicable under the Section 2 of the Seaworthiness a ship is
considered unseaworthiness when,because if defects in hull,equipment,machinery or crewing
or due to overloading or deficient loading or other grounds. In such condition these must be
taken into consideration of the vessel’s trade the risk to human life associated with going to
sea exceeds the customary.

Conclusions

To conclude, according to all the issues mentioned above, this indicates that
MKOSB has the right and liabilities as a charterer towards vessel ISB and the cost of
repairing should be under ISB duty because the half cost of vessel must be borne by both
parties. So MKOSB has the right to cease payment towards ISB because they failed to follow
the initial period of time and incurred extra time because of the time taken for maintenance.
 QUESTION 2

a) Issue of this question is under Private Carriage of Goods by Road. Wether Setia
Hala Malaysia Sdn Bhd (SHMSB) could place the responsibility on the standard of
care to Setia Bersama Sdn Bhd (SETIA) over the loss and damage of consignment.

Under Section 101 Contract Act a “bailment” is the delivery of goods by one person
to another for some purpose, upon a contract that they shall, when the purpose is
accomplished, be returned or otherwise disposed of according to the directions of the
person delivering them. The person delivering the goods is called the “bailor”. The
person to whom they are delivered is called the “bailee”.

Section 104 of Contract Act cases of bailment,the bailee is bound to take as much as
care of the goods bailed to him as a man of ordinary prudence would,under similar
circumstances,take of his own goods of the same bulk,quality,and value as the goods
bailed. For example we can see from the case of Rothmans of Pall Mall vs Neo Kim
Har.

Clause 21 (1) Condition of Carriage by Integrated Haulage Sdn Bhd stated “the
liability of carriage in any event of delay in the carriage of any complete Consignment
shall not exceed the sum equal to the carriage charges received by the Carrier in
respect of that Consignment

According to Section 7 of Association of Malaysian Hauliers Conditions of

Carriage 2013,the carrier shall be relieved from its obligation to perform the contract
to the extent that the performance of the same is prevented by failure of the
customer,events of Force Majeure,weather conditions or cause beyond the reasonable
control of the carrier. The carrier is not liable for the performance of the contract if it
is unable to perform its obligation or effect termination of the contract due to an event
of Force Majeuere. In the event of the same,the customer shall endeavor to help the
carrier in whatever ways to mitigate any effect that the same might have on the
performance of the contract of both parties.
 The next law related is to loading and unloading. Section 10 (6) of Association of
Malaysia Hauliers Conditions of Carriage 2013 stated that the carrier shall not be
liable for any loss or damage caused as a result of negligence acts committed by the
consignor or consignee or their servants or agents in assisting with loadng and or
uploading and the customer shall indemnify the carrier against any claim made
against the carrier in respect of such loss or damage including claims for death or
personal injury, Section 10 (3).

According to Clause 8 (1) Condition of Carriage by Integrated Haulage Sdn Bhd ,

the carrier shall be relived from its obligation to perform the Contract to the extent
that the performance of same is prevented by failure of the Customer , events Force
Majuere, weather conditions or cause beyond the reasonable control of the Carrier.
Under Clause 8 (1) in the same condition, the carrier is not liable for the Performance
of the Contract if it is unable to perform its obligation or effect Termination of the
Contract due to an event of Force Majuere.

In conclusion, Setia Bersama Sdn Bhd (SETIA) should imposed a legal action
because of the failure to comply with all the law stated above.

b) Due to the absent of regime that governing carriage of goods in Malaysia the
Convention on the Contract for the International of Carriage of Goods by Road
(CMR) 1959 are used as a reference in Article 17 Section 1 stated that “the carrier
shall be liable for the total or partial loss of the goods and for the damage occurring
between the time when he takes over the goods and the time of delivery as well as
delay in delivery”. The other reference in under the Carriage of Goods by Road
Convention, the bailor are liable for the loss of or damage to goods that occur during
transportation, as well as for any delay in delivery. Therefore, both Common Carrier
and Private Carrier are under obligations to be liable for the delay in delivering goods
to the consignee. The duty is to deliver the goods within a reasonable time (in the
absence of any express terms in the agreement). However, in order to render a carrier
liable for the delay the consignor must show that the carrier failed to delivered goods
within reasonable time and it was due to the carrier’s negligence.
c) According to the General Rule of Contract Act 1950,which states that “only the
parties in the contract can sue or be sued, “SHMSB” has the right to sue SETIA. This
can be shown in the case of Scrutton vs Midlands Silicone.
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________ syareezaiman___________________
Name: Abdul Syareez Aiman bin Abd Rashid
Matric Number: 2020976915
Course Code: LAW530
Programme code: BA247
Faculty / Campus : Uitm Selangor Kampus Puncak Alam
*Students are required to sign one pledge for each course taken.

Bahagian Pentaksiran & Penilaian Akademik 0404/2021