MASTERS - ASSESSMENT 1 The mv \"Sheriff\" (the vessel) is one of the 11 ships owned by a South African registered company, Blue Seas Shipping (SSS). All 855 vessels are flagged In Panama and ply the trade between Brazil and the Far East. BSS vessels call into the Port of Cape Town. in both directions, especially for bunkering as BSS deems Cape Town as a convenient mid-point for the company's trade. On 21 July the Sheriff was on her voyage to Chennai (India) from Port Santos (Brazii) with a cargo of near ripe citrus fruit. The master of the Sheriff, Dude McDaddy. decided not to stem bunkers (fuel up) in Cape Town but to pass. The reason for this was that. while he was out at sea, he received a report from another vessel, the my \"Soldief', also owned by 555. advising that the Cape Town port was heavily congested following a violent stevedores' strike that had led to indenite port closure. The Soldier was ordered to outer anchorage until the ofcials had brought the strike under control. McDaddy then sailed past Cape Town with a view of taking bunkers at Dar es Salaam where the B55 fleet. also calls for bunkers albeit rarely. As the Sheriff approached Mauritius, McDaddy received another report that "the Dar es Salaam port is experiencing heavy rains and high winds. All port operations have been temporarily suspended until inclement weather subsides...\" Although it was late in the afternoon, McDaddy decided to set the vessel on course back to Port Louis in Mauritius. McDaddy reached Mauritius at dusk. While the vessel was still making its approach to port, she ran out of bunkers and the main engine switched off. McDaddy sent an urgent distress call to port for bunkers or towage. The only two Mauritius port's distress tugs were engaged in another emergency. The port advised that assistance would be sent as soon as possible. The Sheriff drifted slowly through the night. Pushed by the wind, the Sheriff eventually grounded on a rocky part ofthe shore a few miles outside the port. She sustained substantial hull damage. The next morning the port tugs arrived and managed to tow her to safety. However, during the course of the night while the Sheriff was aground, she lost 10 containers that were dislodged by wave action in the dark. YOUR TASKS You are the Executive Manager: Logistics at 355 at their branch in Cape Town. The 355 CEO has received a claim from the cargo owners who lost their containers. 0n the basis of the applicable law and the relevant cases respond to the following tasks. Task 2 For the purposes of this task (Task 2) assume that the cargo of containers onboard the Sheriff had to be discharged rst; using specialised cranes Onto a special platform for safe container stacking. From there these containers were road hauled to the port for on carriage to India by the Soldier. when she eventually arrives from Cape Town. The haulier company, Pholobas Transport (PT), demands payment from 855 for R3 million. PT states that they were engaged by Blue Seas Agents (BSA) through whom BSS has been concluding business for 10 years in South Africa. BSA has been responsible for ship provisions (as Chandlers) and crew transportation. However, BSA have never before been engaged in this type of work for which they are now claiming. Note that PT has completed the work and have done it perfectly. PT has not been paid for two weeks they now seek to approach the court for an order to exercise a lien over the cargo (to keep it and sell it if the matter remains unresolved). You have tried without success to discuss the matter with BSA. They are not reachable. Bearing in mind the law governing the relationship between the agent and the principal in instances where there is no outright authority to act on behalf of the principal, advise the CEO about the prospect of success against PT's claim as a third party. [10}