Click to view: 

Stockholm Arbitration Report (SAR)

Preview Page SAR 2002 - 1

Subject matters:
(1) Whether a contract for the packing and transport of industrial equipment provided for a fixed or variable price.
(2) When the freight increases due to an increase in the volume of the cargo, who shall bear the risk for such increase?
(3) Duty of a carrier to notify the customer in the event of expected increase of costs for the transportation.

Findings:
(1) Interpreted according to its wording, the contract is not a global lump sum contract (Global-Pauschalvertrag) but a Detail-Pauschalvertrag under German law.
(2) A freight customer providing an estimate of the total volume of a cargo must bear the risk of variations, unless the volume of cargo has been exceeded due to improper packing by the carrier, or its subcontractors.
(3) When a carrier becomes aware of the fact that a contractual estimate of volume might be considerably exceeded, and the freight costs thereby can be expected to increase, the carrier must expressly advise the customer without delay.

Parties:
Claimant: T, logistic and forwarding company (Hong Kong)
Respondent: B, trading company (Hong Kong)

Place of arbitration: Stockholm

Applicable substantive law: German