XYZ Business Printers Pty Ltd is a manufacturer of multifunction business printing and

photocopying machines based in Perth, Western Australia. For several years XYZ has been

exporting multifunction devices to overseas businesses. Because the multifunction devices are

expensive and delicate, they need to be carefully packaged and sealed with protective blanketing

when being transported.

Purple Construction Management Ltd is a large construction business based in Christchurch New

Zealand. Due to an expansion of its business, Purple placed a large purchase order with XYZ for

30 new multifunction devices for its offices throughout New Zealand. XYZ agrees to deliver these

multifunction devices to Purple according to the Carriage Paid To (CPT) 2020 Incoterms.

XYZ engaged Harris Freight Forwarders Pty Ltd to manage the packaging and transportation of

this consignment of multifunction devices to Purple's head office in Christchurch, New Zealand.

Harris arranged for the consignment of to be placed onto the next available Fremantle to

Christchurch shipping carrier service aboard the Southern Ocean Express - a container ship

owned by Green Shipping Services Ltd. The Southern Express held a hull insurance policy

through Western Insurance Ltd, which is valid for 12 months from 20 January 2020 to 20 January

2021.

XYZ Business Printers contacted Howards Insurance Brokers to arrange cargo insurance for the

consignment of multifunction devices that will be sent to Purple Construction Management.

Howards arranges a voyage cargo insurance policy with Eastern Insurance Ltd which

incorporates the Institute Cargo Clauses (A). The schedule to this policy states that it provides

coverage for the 30 multifunction devices while they are being transported between Perth and

Christchurch.

On 15 October 2020, a Harris delivery driver collects the consignment of multifunction devices

from XYZ's factory in Perth and transports them to its depot for packaging. Due to the economic

downturn in Western Australia, Harris has implemented several cost saving initiatives, which have

included ordering less protective blanketing. Bill and Bob, who work at Harris's packaging depot,

place only one sheet around each of XYZ's multifunction devices (whereas usual practice is for at

least four sheets of protective blanketing). Bob remarks to Bill "One sheet of packaging should be

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fine, its usually very calm sailing across to New Zealand this time of year", and Bill agrees. On 20

October 2020 Harris transported the shipping container with the multifunction devices to

Fremantle (Perth's main container port), it was then loaded onto the Southern Ocean Express.

On 22 October 2020 the Southern Ocean Express departed Fremantle on its direct voyage to

Christchurch, with an estimated date of arrival into Christchurch of 4 November 2020. However,

on 26 October 2020 the Southern Ocean Express diverted into Port Adelaide as the Master

(Captain) John becomes ill and required medical attention. On 28 October 2020 the Southern

Ocean Express departs Port Adelaide under the command of Harry, the Chief Mate (second in

command). Although Harry holds the necessary Master Class One qualifications to be in

command of a container ship like the Southern Ocean Express, he has not previously served in

command at sea.

To make up for the delays, Harry orders the Southern Ocean Express to steam faster than

originally planned to make up for lost time. The ship encounters very heavy waves while transiting

Bass Strait between Tasmania and Victoria, with the higher than usual speeds causing the ship to

pitch and roll significantly in the waves.

On 8 November 2020, the Southern Ocean Express arrived in Christchurch and unloaded its

shipping containers. On 10 November 2020, the shipping container containing the XYZ

multifunction devices is delivered to Purple's head office. After unpacking the shipping container,

Purple's manager of business equipment Susan finds that most of the multifunction devices have

arrived in a broken and smashed state. Susan concludes that none of the multifunction devices

are able to be used.

Purple Construction Management seeks your advice its rights to claim against any of the

entities noted above.