Opinion ID: 6572
Heading Depth: 3
Heading Rank: 3

Heading: Carrier Negligence

Text: Because the Carriers proved that section 1304(2)(i) applies, the burden returned to Sun to prove that the Carriers' negligence at least partially caused the loss of the cargo. Attempting to satisfy this burden, Sun contends that even if the load temperature was inadequate, the Carriers' provided an unseaworthy vessel. The unseaworthiness of the vessel, according to Sun, caused the loss of its cargo. Sun additionally avers that the Carriers failed to maintain the loaded temperature of the fuel, as required by the charter party and the voyage orders. Finally, Sun argues that the Carriers failed to exercise due diligence to ensure that the cargo was properly heated. We find no merit in any of Sun's contentions.
12 Although Sun claims that it had no control over the shore facility which loaded the oil, we note that that facility acted as Sun's agent, since it loaded the oil at Sun's behest. See Sigri Carbon Corp. v. Lykes Bros. Steamship Co., Inc., 655 F.Supp. 1435, 1440 (W.D.Ky.1987) (ruling that when the charterer hires a stevedore to load a ship, any damage due to the loading is a result of an act or omission of the shipper, his agent, or representative). 12 Sun first argues that the OVERSEAS ARCTIC was unseaworthy because it could not raise the temperature of the cargo to 135 degrees as required in the charter party. The Carriers conceded that such was the case. However, there is no dispute that Sun, at no time during the voyage, requested that the temperature be raised. To the contrary, it specifically ordered the vessel to maintain the loaded temperature.13 Had Sun ordered the Carriers to increase the temperature during the voyage, we would agree with Sun's argument here.14 However, to carry its burden at this point, Sun must prove that the unseaworthy condition in question not only 13 Even Sun's coordinator for loading and discharging operations, Susan O'Connor, testified that this order meant exactly what it said. The Carriers questioned Ms. O'Connor on the meaning of this instruction: Q. Now you will notice in the voyage orders, those are Sun voyage orders, under heating, Vessel maintain loaded temperature up to 135 degrees Fahrenheit. That means that whatever the loading temperature was, the vessel would keep it at that temperature; is that correct? A. Yes. Q. So, if the cargo came aboard at 89 degrees, the vessel under those instructions would keep it at 89 degrees? A. Yes. That's right. Q. If it came aboard at 90 degrees, they would keep it at 90 degrees? A. Yes. 14 The COGSA provision most applicable in this argument is not the seaworthiness provision, but section 1303(1)(c) which places upon carriers the affirmative duty to make all parts of the ship in which goods are carried[ ] fit and safe for their reception, carriage, and preservation. 46 U.S.C. § 1303(1)(c). 13 existed, but actually caused the loss of the cargo. See Bruszewski v. Isthmian S.S. Co., 66 F.Supp. 210 (D.C.Pa.), aff'd, 163 F.2d 720 (3d Cir.1947), cert. denied, 333 U.S. 828, 68 S.Ct. 451, 92 L.Ed. 1113 (1948). This, Sun has not done. By failing to order the Carriers to increase the temperature of the cargo, Sun never provided the Carriers the opportunity to breach their duty to provide a seaworthy vessel and to ensure that the vessel's storage tanks could properly preserve the fuel oil.15 Sun's seaworthiness claim therefore fails.
Sun next complains that the Carriers did not maintain the temperature of the oil. This contention is logical: If some of the oil cooled to such an extent that it solidified, the Carriers clearly failed to maintain the temperature of that portion of the oil. Captain Beza, in so many words, admitted that such was the case. However, the captain testified that an order to maintain the loaded temperature does not require vessels to maintain every square inch of the cargo at one temperature. According to Captain Beza, a maintain heat order requires vessels to maintain the average temperature of their cargo. Captain Beza testified that his interpretation of the order was consistent with the standards in the high-temperature fuel oil transportation industry. Sun 15 Averring that the law does not require one to do a vain thing, Sun argues that it would have been vain to order the ship to raise the temperature. This axiom is not helpful to Sun's case. The basic premise underlying this axiom is that one who fails to act must know that his act would be vain. One who fails to act out of ignorance or neglect may not take advantage of this principle. 14 proffered no testimony or evidence which contradicted the Carriers' contention that, based upon industry standards, the vessel complied with Sun's orders.16 Sun's argument that the Carriers failed to maintain the load temperature is therefore not well taken.
Sun finally argues that the Carriers had a duty under COGSA to know the special characteristics and heating requirements of the cargo and to properly carry, care for, and discharge the cargo. Sun is only partially correct. COGSA does, indeed, expressly require carriers to properly and carefully load, handle, stow, carry, keep, care for, and discharge the goods carried. 46 U.S.C. § 1303(2); Shell Oil Co., 790 F.2d at 1213. However, this Circuit has rejected the argument that carriers have a legal duty to learn the special needs of their cargo. Tenneco Resins, Inc., 881 F.2d at 214. To the contrary, we have ruled that the charterer has an obligation to inform the carrier of the cargo's special requirements. Id. (emphasis added). We have determined that this view properly places the burden to discern cargo's special stowage needs upon the party which will most likely know or have 16 Our review of the record reveals that the Carriers not only maintained the average temperature of the cargo, but they actually increased the temperature of the fuel oil by three-tenths of one percent. The record also shows that Caleb Brett, Sun's representative at the discharge port, agreed that the Carriers had accomplished Sun's heating requirements during the voyage. During a phone call placed after the OVERSEAS ARCTIC left the first Louisiana port, a Caleb Brett employee informed Sun's discharge coordinator, Susan O'Connor, that the Carriers had increased the temperature of the cargo. Caleb Brett's analysis of the situation confirms Captain Beza's testimony that Sun's maintain-heat order merely required the vessel to maintain the average temperature of the cargo. 15 access to knowledge of such needs. Id. (quoting O'Connell Machinery Co. v. M/V Americana, 797 F.2d 1130, 1134 (2d Cir.1986)). Consistent with our Tenneco Resins, Inc., decision, Captain Beza testified that he expected Sun to know the pour point of the fuel oil and ensure that it came aboard at the proper temperature. Although Captain Beza informed Sun of the load temperature prior to departing Guayanilla,17 Sun, in the best position to know the pour point of the cargo, did not respond. Sun neither informed the Carriers of the pour point nor, more importantly, instructed the Carriers to increase the temperature of the cargo. Even if Captain Beza had recognized a problem with the temperature of the cargo, and even if the OVERSEAS ARCTIC had possessed heating capabilities, Captain Beza could have discharged his duties in no different manner, for he was under express orders to maintain, not increase, the temperature of the oil. We will not penalize the Carriers for following Sun's specific instructions.