The Tradewinds, a vessel registered in Liberia, is sailing from Melbourne to Colombo, Sri Lanka, with the following cargo: live sheep and containers holding electrical, household and clothing items. One container shipped by Firebrand Pty Ltd has explosive material in it, but this has not been declared to the carrier. All the cargo is shipped under bills of lading.

The vessel is old and has had extensive maintenance prior to the voyage. However substantial patches of rust in the hull have been painted over and not fixed.

During the voyage, the ship's captain received a storm warning and he altered the ship's course fearing that a bad storm may jeopardise the crew and cargo if the rust in the hull gave way. Unfortunately, during the deviation, the ship hit a submerged container and tore a hole in the hull permitting seawater to enter. The vessel began to sink and lean to one side. In order to avoid sinking, the captain jettisoned the live sheep and several containers including the one which contained the explosive material.

The Tradewinds staggered into the nearest port and the remaining cargo was transferred to another vessel for late delivery. REQUIRED Advise the carrier of its liability to the various shippers in the above circumstances.