| Award 1145

Award N°1145 – Collateral management agreement – Cargo vanishing and cargo damages – Collateral manager liable for the vanishing (Yes) – for the damages (No). According to the contract, the liability of the vanishing of part of the cargo weighs onto the collateral manager because any such vanishing could not have occurred without the fault of 2 employees of the manager. On the other hand, liability for damages to goods in custody does not fall on the collateral manager because the agreement says that “the buyer will be responsible for stevedoring operations inside the warehouse…” and that “…he is to take all necessary actions and precautionary steps to maintain its full value to the pledged goods”. The value of the vanished goods is assessed on its CIF price.