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Lloyd's Maritime and Commercial Law Quarterly

CONTAINERS SUPPLIED TO A SHIP FOR HER OPERATION?

The River Rima
This case concerns the application of statutory provisions not perhaps drafted with modern shipping practices in mind. The issue was whether a claim based on the supply of containers to a shipowner fell within English Admiralty jurisdiction. That jurisdiction is set out in the Supreme Court Act 1981, ss. 20–24 and reflects at least in part the Convention Relating to the Arrest of Seagoing Ships 1952 (hereafter the “Arrest Convention”). It is a well-established principle that the statutory provisions are to be construed with that Convention in mind.
It has to be said first that the general approach in the case at appellate level seems somewhat removed from modern reality. Sheen, J., felt that, where containers were provided to a shipowner for use on his ships and were in fact used on his ships, they were “supplied to a ship for her operation or maintenance” within s. 20(2)(m) of the 1981 Act.1 In the Court of Appeal2 and in the House of Lords,3 a much more direct link between the arrangement and a ship was thought to be required before a claim could be said to be so supplied and therefore to found a “maritime claim” within Admiralty jurisdiction. The present claimants failed: on one view, because the arrangement was that the containers were to be delivered to shippers, not to a ship; and, on another, because the arrangement was with the shipowner and not with the ship, in that no particular ship was specified. The House of Lords reached its conclusion (expressed in a speech by Lord Brandon of Oakbrook) through a linguistic construction of the particular statutory provision at issue supported by the historical roots of the provision, which, in Lord Brandon’s view, were reflected in the Arrest Convention.

The background facts

On 9 March 1987 Tiphook Container Rental Company Ltd. (Tiphook) issued a writ in rem against the River Rima and arrested her in Liverpool. Tiphook’s claim was for the conversion of containers supplied to the River Rima, which was owned by the Nigerian National Shipping Line (NNSL). The origin of the claim lay in an agreement (called a “lease plan”) between Tiphook and NNSL for the supply of containers. The agreement provided for the hire of containers by NNSL from Tiphook and for their collection and redelivery to Tiphook by NNSL. The hire of each container was to be treated as a separate contract. There was no term in the contract relating to the use of the container.

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