Liquidated damages for concealing dangerous goods in international shipping are as high as 1.8 million yuan (with real cases attached)
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Time of issue：
2024-06-28 17:44
Basic case
The defendant, a logistics company in Guangzhou, as a shipper, consigned 12 containers of goods to a shipping company in Shanghai, the plaintiff. At the time of consignment, the logistics company submitted the "Zhang Guanli Dai" "cargo transport conditions appraisal", the dangerous goods concealed as ordinary goods. It was later found during an inspection by the maritime department.
According to the contract of carriage, if the shipper conceals dangerous goods, the carrier has the right to claim the difference in freight and to charge a breach of contract of 150000 yuan per container. The logistics company argued that there was no dangerous goods safety accident in the transportation involved, the shipping company did not suffer actual losses, and the total liquidated damages agreed in the contract were as high as 1.8 million yuan. If no adjustment was made, the carrier would make improper profits from it, so it requested the court to reduce the liquidated damages.
Referee Results
After hearing, the court held that truthfully declaring dangerous goods is not only the legal obligation of the shipper, but also an important link to prevent the safety accident of dangerous goods transportation. The defendant logistics company used the "Identification of the Conditions of Transport of Goods" of other goods to conceal dangerous goods, subjectively deliberately obvious, objectively put the lives and property of an unspecified majority at sea in danger, and should give a clear negative evaluation of such acts.
Although this case has not yet caused serious consequences of dangerous goods accidents, whether the liquidated damages are too high requires comprehensive consideration of the cost of corporate accident prevention and social governance of dangerous goods concealment. And whether the high liquidated damages stipulated in the contract are triggered depends entirely on the shipper. If the concealed liquidated damages collected by the shipping company are enough to become its important source of profit, it shows the seriousness and rampant concealment of dangerous goods. We should increase the support for liquidated damages, otherwise it is tantamount to encouraging enterprises with speculative fluke psychology to continue to carry out concealment with lower illegal costs. Accordingly, the court ruled that the logistics company should bear the liability for breach of contract to the shipping company in accordance with the contract, and did not support the logistics company's defense of lowering the breach of contract.
typical meaning
In recent years, there have been many major accidents involving the transportation of dangerous goods around the world, causing great damage to life and property, environmental resources and the stability of the industrial chain. In practice, for the purpose of evading the supervision of dangerous goods, reducing transportation costs, and blindly pursuing shipping efficiency, some companies have repeatedly carried out concealment or even false reports with luck, laying hidden dangers to shipping safety and the construction of safe cities on the sea.
As an international shipping center and a super-large city with global attention, once an accident occurs in Shanghai, the impact will be immeasurable. It is under the guidance of the concept of "people's city" that this case clearly shows the judicial value orientation of advocating truthful declaration. By supporting punitive liquidated damages, increasing the economic cost of illegal and breach of contract, forming a strong containment effect on the concealment of dangerous goods, which helps to enhance the people's sense of security, It is of positive significance to protect life, property and marine environment.
In recent years, shipping companies have repeatedly reminded the serious consequences of cargo concealment.
Wanhai Shipping warns that in case of concealment, omission or discrepancy of dangerous goods, once found out, Party A shall pay liquidated damages of USD 100,000/UNIT. (Shipping company reiterates! Notice on concealment/omission/misstatement of cargo)
OOCL also said that if there is concealment and other acts, each container will be fined up to US $30,000.
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