GLENCORE INTERNATIONAL AG V MSC MEDITERRANEAN SHIPPING CO SA AND ANOTHER

[2015] EWHC 1989 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Andrew Smith, 10 July 2015

Bills of lading - Delivery under electronic release system - Containers going missing at port of discharge - Whether carrier's obligations discharged by supplying an import pin code permitting the recipient to take delivery - Damages - Breach of contract - Bailment - Conversion - Obligations of carrier in delivering containers

Two out of three containers containing cobalt briquettes shipped under a bill of lading dated 21 May 2012 had gone missing. This was the claim of Glencore, the shipper, against MSC, the carrier, for damages for breach of contract, bailment and conversion. The cargo had been shipped from Fremantle to Antwerp on MSC Eugenia and trans-shipped to MSC Katrina. The bill of lading named Glencore as the shipper, and their agents at Antwerp as notify parties. It was a negotiable bill, the consignee box being completed "to order". The bill of lading contained the clause: "If this is a negotiable (To order/of) Bill of Lading, one original Bill of Lading, duly endorsed must be surrendered by the Merchant to the Carrier ... in exchange for the Goods or a Delivery Order". At Antwerp, an electronic release system was in place and used by MSC. Accordingly the practice was that the carrier did not issue paper delivery orders or release notes against bills of lading, but "import pin codes". Glencore's local agent was accustomed to operating this system and billed Glencore accordingly under the item "delivery notes". The judge found that Glencore was unaware of the system being in use by MSC.