Award 1196 – 2nd degree – C/P Gencon – Damage by sea water to a cargo of fertiliser – Subrogated underwriters – Receiver’s obligation to minimize his damage – Ship owner liability (yes). The failure of watertight hatches having been the cause of wetting by sea water renders the ship owner liable for damages to cargo. Even if the commodity retained its chemical characteristics, its caked aspect made it unfit for spreading leading to a reduction in its market value. The indemnification due from the ship owner is based on the distress sale, of which the principle was agreed by its P and I club, reduced by a certain percentage due to the worsening of damages after improper warehousing by the receiver.
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