The dry bulk vessel "SEA GRACE" loaded a cargo of bagged rice underdeck in all 5 cargo holds and some Machinery/project cargo on deck at the port of Kandla, India for discharge at Jakarta. Clean Bills of Lading were issued separately for Bagged Rice cargo and Machinery/project cargo respectively and signed by the Agents on behalf of the Master. Machinery/project cargo loaded on deck were all properly lashed and secured by the stevedores under the supervision of ship crew prior to vessel's departure. On her approach to Jakarta, the vessel collided with an out-bound vessel "DRAGON BOAT" coming out of Jakarta, when the weather conditions were extremely rough with heavy rains, fog and heavy seas above normal. The OOW (Officer of Watch) on board "SEA GRACE" made an error in panic and went hard to starboard across the bow of "DRAGON BOAT" resulting in the collision. Sea Grace suffered damage to her hull resulting in flooding of Cargo hold No. 1 with sea water damaging about 5000tons of bagged rice in that hold. The lashing of the cargo on deck also parted and the machinery/project cargo went over the ship side and was lost. Sea Grace managed to reach the berth at Jakarta unaided. Both the Consignees of the bagged rice cargo and machinery/project cargo lodged claims for total loss. Cargo interests allege that the lashing of the deck cargo was inadequate and the OOW lacked navigational skills and proper training. Make a thorough analysis of the liability(s) as well as defences available to the owners of Sea Grace under the terms of Bill of Lading. Describe any pre-conditions which must be met to entitle those defences and consider the practical value of these defences in relation to the facts of this case.