China: Bulk liquid cargo shortage claims


Published: 26 August 2016

Cargo shortage occurs frequently in bulk liquid cargo carriage due to various kinds of reasons. In cases of dispute over bulk liquid cargo shortage under a contract of carriage of goods by sea, generally carriers plead for exemption from compensation liability by raising various defences, while in the Chinese maritime judicial practice, different courts or even one court in different cases may have different attitudes towards such defences.

Through research and analysis on 22 precedents rendered by various levels of Chinese courts regarding bulk liquid cargo shortage claims, this article aims to reveal the main viewpoints of Chinese courts on carriers' defence of liability exemption in such kind of claims, and gives carriers some advice on how to avoid or mitigate these claims.

China is a very substantial importer of oil and in the enclosed document you will find a summary of the legal position on shortage claims and also advice on how carriers can protect themselves.

A summary of relevant case law is also enclosed.

The Association is grateful to Wang Jing & Co. for contributing to this article.