Zvi Cars is a car retailer based in the city of Afula, Israel. Zvi Cars imports cars from both China and Europe. In late 2023, Zvi Cars placed an order for 20 (twenty) Atto 3 electric subcompact crossover model cars from the BYD factory in BYD Road, Shenzhen, PRC. The seller, BYD Auto, quotes two separate prices for the order - the first price is for delivery FCA Shenzhen (Incoterms 2020), the second price is for delivery CPT Haifa (Incoterms (2020).

An agreement was finally reached for delivery CPT Haifa (Incoterms 2020) on or before 20 October 2023. The cars were loaded on board the cargo vessel Maersk Gibraltar at the port of Shenzhen, China on 19 October 2023, and a clean, on-board bill of lading was issued for "20 BYD brand cars in apparent good order and condition". The supplier's invoice together with the Bill of lading and relevant customs-clearance documents were sent to the buyer (Zvi Cars) via the buyer's bank - Leumi Bank, London.

Zvi Cars received the shipping documentation on 27 October 2023 and began anxiously awaiting arrival of cargo into Haifa.Like many Israeli businesses, Zvi Cars is worried about the impact of military conflict in Gaza on global shipping through the Red-Sea shipping routes. Zvi Cars' fears are realised in mid-December when it receives copy of a "shipping incident" report from the carrier, Maersk Shipping, as follows:

• Dec. 14, 2023: Al-Houthi forces targeted cargo vesselMaersk Gibraltarwith a ballistic missile in the Bab el-Mandab Strait. The missile exploded a short distance away from the vessel, causing no damage or casualties. Following the attack, an entity claiming to be the Yemeni Navy hailed the vessel in a failed attempt to divert the vessel to Yemen. An Al-Houthi spokesperson later claimed thatMaersk Gibraltarhad been targeted as it was sailing to Israel, and that a successful drone strike had been carried out. Efforts are now underway to trace the vessel, which has disappeared from satellite view. It appears that the electronic systems on the cargo vessel are no longer operational.

Recovery efforts begin, initiated by Maersk Shipping and conducted with the help of government naval patrol vessels from the USA and UK. Unrelated to ocean-based cargo ship recovery efforts, several Houthi-controlled areas of Yemen are bombed. No organisation or government claims responsibility for the bombings, but UK and USA forces do enter the areas devastated by bombing, along with staff from international humanitarian relief organisations. During clean-up and relief operations, a warehouse containing ten (10) BYD Atto 3 electric cars is discovered. The cars are soon identified as part of a larger consignment originating from China on cargo vessel Maersk Gibraltar. The ship has yet to be located.

In early February 2024, Zvi Cars receives the first piece of good fortune it has had for some time when the ten cars arrive in Haifa and are cleared for delivery. Zvi Cars' delight is somewhat dampened, however, when it discovers that faulty wiring has been installed in the cars' transmission. The faulty wiring is poor quality, too thin and degrades very quickly. It needs to be replaced by better quality (thicker and more expensive) wiring before the cars can meet Israeli roadworthy inspection certifications standards.

Zvi Cars seeks your advice on the following questions:

1. The cargo ship Maersk Gibraltarflies a Hong Kong flag, and the shipment of goods departed from a mainland Chinese Port. Which version (if any) of the Hague Visby Rules would you expect to apply to the contract of carriage contained in theMaersk GibraltarBill of Lading.Explain.
2. Discuss whether Zvi Cars can or should sue the carrier for the loss and delay of the Cars. Can the carrier rely on any defences if action is taken against it?
3. Regardless of your answer to question 4, what is the maximum amount of compensation the carrier would be liable to pay for the loss of and/or delay to arrival of goods under the Hague Visby Rules?