Nanjing Maritime Court resolves international maritime dispute

The Nanjing Maritime Court in Nanjing, East China's Jiangsu province, has resolved an international maritime cargo transportation contract dispute involving parties from the United Kingdom, China, and the Marshall Islands.

The resolution of this case not only highlights the fairness and efficiency of Chinese courts in handling international maritime disputes but also supports the development of foreign-related maritime legal frameworks.

In the fall of 2020, a British company purchased steel structure equipment worth millions of dollars from a Qingdao-based company in China. The Qingdao company entrusted an international logistics firm to manage the sea transport. The cargo was carried by the vessel T, owned by South Korea's No 82 shipping company, departing from Lianyungang, Jiangsu province, and arriving in Liverpool, UK, in February 2021.

Upon unloading, the British company discovered that the packaging was damaged, with scratches and rust on the goods — an appraisal identified that the damage occurred during transport. Consequently, the British company sued the Qingdao company and the No 82 shipping company in the Nanjing Maritime Court, seeking compensation of nearly 500,000 pounds ($6,712.89).

The primary challenge in the case was serving notices to foreign parties. With the No 82 shipping company registered in the Marshall Islands, the process was complex and time-consuming. Judge Xu Yi, who handled the case, effectively resolved the issue by contacting the UK-based protection and indemnity club associated with the No 82 shipping company.

During the trial, all parties agreed to apply Chinese law. The central issue was determining when and where the damage occurred. The British company failed to provide concrete evidence that the damage occurred during sea transport, leading the court to dismiss its compensation claim.

After the judgment, the British company initially appealed but eventually settled with the shipping company and withdrew the appeal. This resolution showcases the Nanjing Maritime Court's expertise and flexibility in handling international maritime disputes.

Li Yalin, executive vice-president of the Nanjing Maritime Court, said that this case exemplifies the implementation of national strategies for foreign-related legal development and demonstrates the advantages of China's maritime legal system, reinforcing Jiangsu's position as a preferred location for resolving international maritime disputes.