The Happy Wanderer is a ship registered in the United States which is regularly maintained by its owners. The vessel was loaded at Fremantle, Western Australia, with a cargo of flour, bound for South Africa. During the voyage the ship collided with a whale which was migrating north to breed. When the ship docked in Cape Town it was found that the flour had been damaged due to seawater leaking into the hold. An inspection of the hull showed that the collision with the whale had caused a crack that lead to the water seepage. An alternative scenario is that just out of Cape Town the master of Happy Wanderer was celebrating his fortieth birthday and all of the crew attended a function where a lot of alcohol was consumed. The ship ran aground because nobody on board was capable of handling her. The damage to the flour was caused by seawater seeping into the hold through a crack in the hull caused during the running aground.

With reference to the above sets of facts, discuss:

(i) The carrier's duty of due diligence.

(ii) Possible exemptions, if any, to the carrier's obligations.