A Case from NMC was Selected as a Typical Case of Foreign-related Commercial and Maritime Trials from Jiangsu Courts

Update: 2025-11-28 Views: 5

To better leverage the exemplary and guiding role of the judiciary, in November 2025, the High People's Court of Jiangsu Province released typical cases of foreign-related commercial and maritime trials. One case from NMC was included.

Properly Determining the Carrier's Obligation of Care for Soybeans Transportation and Maintaining order in the Transportation of Bulk Grain Shipments.

——the Insurance Company (Group) of China Limited Shanghai Branch v. the Shipping Co.,Ltd. of the Marshall Islands for Dispute over a Contract of Carriage of Goods by Sea

[Facts]
The Shipping Co.,Ltd. of the Marshall Islands (hereinafter referred to as "The Shipping Company") owned the vessel "STAR ALTAIR" which carried a cargo of soybeans from Santos, Brazil to Zhangjiagang, China with a clean bill of lading. The domestic consignee insured the soybeans under cargo transportation insurance. The loading port quality certificate stated that the soybeans had a moisture content of 12.18%. On August 2, 2021, "STAR ALTAIR" arrived at Zhoushan Port. The domestic consignee discovered that the soybeans were damaged by heat and notified the captain. On August 13, 2021, "STAR ALTAIR" arrived at Zhangjiagang Port, and subsequently unloaded all the soybeans. On August 4, 2022, damage assessment issued by an inspection company report stated that the heat damage was due to insufficient ventilation during the high-temperature season without timely heat dissipation. The loss amounted to 5.545 million RMB. The Insurance Company (Group) of China Limited Shanghai Branch(hereinafter referred to as "The Insurance Company") paid 5.526 million RMB as compensation to the domestic consignee, which then issued a certificate of rights transfer. The Insurance Company filed a lawsuit demanding that The Shipping Company compensate it for its losses of 5.526 million RMB plus interest.

[Findings]

NMC held that The Insurance Company had the right to claim compensation. Firstly, the quality certificate from the loading port indicated that the soybeans` moisture content was 12.18%, which is below the Chinese national standard. A clean bill of lading issued by The Shipping Company indicated that the soybeans were in good condition at the loading port. Secondly, according to the ventilation records, The Shipping Company did not ventilate even when the weather was suitable for ventilation. Furthermore, The Shipping Company did not monitoring the temperature of the cargo. There were instances where the cargo temperature was 3higher than the ambient temperature, yet no ventilation was performed. Therefore, it can be concluded that the "STAR ALTAIR" vessel did not provide proper ventilation, and The Shipping Company failed to fulfill its duty of care for the cargo. Thirdly, the inspection company issued a damage assessment report. While the public adjusting company commissioned by The Shipping Company participated in the sampling work, The Shipping Company still did not submit evidence to overturn the assessment report. So the damage assessment report should be accepted. Therefore, the court ruled that The Shipping Company compensates The Insurance Company for losses of 5.526 million RMB plus interest.

The Shipping Company appealed. The High People's Court of Jiangsu Province dismissed the appeal.

[Significance of the Case]

As important transit bases for grain logistics in East China, ports in Jiangsu Province frequently encounter foreign-related cases involving soybean cargo damage. Properly determining such cases is of great significance to improving maritime business environment. This case as a typical maritime cargo transportation contract dispute concerning soybean heat damage, is characterized by high claim amounts, professional evidence and complex loss calculations. This case clarifies that in the maritime transportation of soybeans, carriers should take reasonable ventilation measures based on the characteristics of the soybeans, the length of the voyage, and seasonal weather conditions. It further refines the specific requirements for carriers' cargo management obligations in soybean transportation and improves the judicial standards for cases involving heat damage in bulk grain maritime transport, providing rule guidance for the transportation of large quantities of grain.