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Lloyd's Maritime and Commercial Law Quarterly

AUSTRALIAN MARITIME LAW DECISIONS 1990

Martin Davies*

A. Carriage of goods by sea

1. Sonmez Denizcilik Ve Ticaret Anonim Sirketi v. The M.V. Blooming Orchard (The Blooming Orchard (No. 2)) 1

This case establishes that an arbitration clause in a voyage charterparty for carriage of goods out of (and, it seems, into) Australia has no effect if it provides for arbitration other than in Australia. Section 9 of the Commonwealth Sea-Carriage of Goods Act 1924 provides that any agreement in a “bill of lading or document relating to the carriage of goods” purporting to oust or lessen the jurisdiction of Australian Courts is “illegal, null and void, and of no effect”. Section 9(2) makes this provision in respect of carriage of goods into Australia; s. 9(1) makes similar provision for carriage of goods out of Australia, and it also provides that the parties are deemed to have intended to contract according to the laws in force at the place of shipment (i.e., Australian law).
Section 9 has previously been held to override the effect of a London arbitration clause in a bill of lading for carriage of goods into Australia,2 and a London arbitration clause in a voyage charterparty for carriage of goods out of Australia that specifically incorporated the Act by virtue of a Clause Paramount.3 In The Blooming Orchard (No. 2), Carruthers, J., in the Supreme Court of New South Wales, has taken the further step of holding that s. 9 applies to a voyage charterparty for carriage of goods out of Australia, even in the absence of a Clause Paramount specifically incorporating the provisions of the Act. The plaintiff was a Turkish importer of coal from Australia. It had chartered the ship Blooming Orchard, a very large bulk carrier, as part of a long-term contract of affreightment for carriage of coal from Port Kembla, New South Wales, to Iskenderun in Turkey. On arrival at Port Kembla, the Blooming Orchard was found to be unseaworthy: the Commonwealth Department of Transport issued a notice of unseaworthiness under the Commonwealth Navigation Act 1912, s. 210(1). The charterer then instituted proceedings in rem for breach of the charterparty and had the ship arrested. By notice of motion, the shipowner applied for the proceedings to be stayed, and the ship released from arrest, because the charterparty contained a clause whereby the

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