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Lloyd's Maritime Law Newsletter

China Pacific SA v. Food Corporation of India - Lord Justices Megaw, Bridge and Cumming-Bruce - C.A. - Apr. 30, 1980

Whether cargo owners liable for storage charges on salved cargo - Lloyd’s Standard Form of Salvage

Defendant cargo owners chartered a vessel to carry wheat. The vessel stranded on a reef in the South China Seas and a Lloyd’s Standard Form of Salvage was signed. Parcels of wheat were salved between Feb. 10 and Apr. 20 and stored in Manila. On Apr. 24 the voyage was abandoned and the cargo owners were notified. On Aug. 5 the cargo owners took possession of the wheat stored in Manila having given security for their proportion of the salvaged award. They accepted stevedoring and storage charges from Apr. 24 but denied liability for expenses for the period between the arrival of the cargo in Manila and the abandonment of the voyage. They submitted that the salvors should go against the shipowners if they had any remedy in law.

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