Using switch bills of lading is tricky as highlighted by The Grand Ace 12 [2019].
Vessel loaded two parcels of oil from China and Taiwan. B/Ls stated the correct loadports. Vsl then proceeded to Philippines to load more cargo and that is where switch B/Ls were issued. It indicated that loadport of all cargo onboard was Subic Bay, Philippines. Cargo was also mis-described as cycle oil. Switch B/Ls were issued by owners’ agents upon instructions of the charterers, allegedly because cargo from Philippines attracted a smaller import duty in China.
Vsl then proceeded to disch. in China, where cargo was impounded by anti-smuggling bureau because wrong origin port had been mentioned in custom docs. Receivers then claimed damages against demise charterers and commenced in rem action in Singapore and arrested the vsl.
In a bid to halt legal proceedings in Singapore, the demise charterers approached English court citing that there was an exclusive English jurisdiction cl. They also tried applying for anti-suit injunction. English court rejected both approaches. It said that as regards anti-suit injunction, even if exclusive English jurisdiction cl. was established, there had been a delay of such magnitude that it would not exercise its discretion to grant the injunction.
Comments