Heron Sdn Bhd (Malaysia) entered into a contract with Eagles Corp (Taiwan) for the purchase of 500,000 semi-conductors. The contract concerned was an Incoterm 2020 CIF (Port Klang). On 1 June, Eagles informed Heron that the goods have been insured for RM400,000 under an 'all risk' cover. Heron did not consider the sum insured to be sufficient, thus it requested for the particulars of the consignment to facilitate additional insurance. Eagles provided the relevant information but made clear that it would not pay for the additional insurance. Heron insured the goods for an additional RM200,000 and insisted that Eagles reimburse Heron the insurance premium.

On 8 June, the goods were loaded on boardThe Morning Star, a vessel owned by GMS Shipping. On the clean bill of lading issued, the goods were described as '10 units of semi-conductors'. The value of the goods was declared on the bill of lading but no supplementary payment was made in this connection.

During the voyage, the vessel encountered a typhoon-level storm. Several containers were washed overboard, including one container with the semi-conductors. The semi-conductors were also subjected to violent vibrations. Consequently, the semi-conductors in 5 containers were damaged. In Heron's view, if stronger packaging had been used, these semi-conductors would not be damaged.

The Morning Stararrived at Port Klang on 13 June. Klang Ablemen, the stevedores engaged byThe Morning Starto off-load the cargo were negligent in the handling of the containers. As a result, one container with the semi-conductors was accidentally dropped into the water. The container was recovered, but all the semi-conductors inside were damaged.

Answer the following questions:

(a)Can Heron Sdn Bhd bring legal action against Eagles Corp? (13 marks)

(b)Can Heron Sdn Bhd bring legal action against GMS Shipping and/or Klang Ablemen? (12 marks)