In the case of dispute over contract of carriage of goods by sea between Cathay
Century Products Insurance Co., Ltd. (hereinafter referred to as Cathay Company)
as the plaintiff and Damu International Logistics Group Co., Ltd. and Liaoning
Xindamu Logistics Co., Ltd. (hereinafter referred to as Xindamu Company) as
the defendants27, Xindamu Company entered a transport contract with Dalian
Huarui Heavy Industry International Trade Co., Ltd. (hereinafter referred to as
Huarui Company), the outsider of the case, agreeing that Xindamu Company
was responsible for inland transportation of goods, export declaration and
inspection to delivery of goods EX-ship’s hold at the port of destination from
China factory to Shanyong port of Vietnam. Under a voyage charter, Xindamu
Company transported the above goods by chartering MV YINGFU from Tairong
International Shipping Company, the outsider of the case. The shipping agency
issued the bill of lading on behalf of the captain. When MV YINGFU arrived
at the port of destination, some of the goods were found damaged. The right of
subrogation to claim for compensation was transferred to the cargo insurer, Cathay
Company, after Cathay Company paid the indemnity to Taisu Hejing Company,
the consignee noted in the bill of lading. The Court held that, Xindamu Company
and Huarui Company established the legal relationship of multimodal transport
contract in accordance with the Maritime Code of the People’s Republic of China.
As multimodal transport operator, Xindamu Company, who did not issue the
multimodal transport documents, took the entire transport responsibility only to
its counterpart of the contract, Huarui Company. Cathay Company failed to prove
that the bill of lading involved in the case was authorized by Xindamu Company
or issued by the shipping agency on behalf of Xindamu Company, the contract of
carriage goods by sea proved by the bill of lading was not established between
Xindamu Company and Taisu Hejing Company. Therefore, the Court rejected the
whole claim of Cathay Company