Singapore Freight Company Seeks $3M From Exporter Over Ruined Palm Olein Shipment
Eastern Pacific Chartering (22) (EPC22), a Singapore shipping company, alleged in a July 21 complaint at the U.S. District Court for the District of Delaware that Louis Dreyfus Company Freight Asia (LDCFA), a subsidiary of a Dutch merchant firm, violated its contract by damaging cargo. The suit would send LDCFA a nearly $3 million bill for breach of contract and cost of attorneys and related fees for an arbitration proceeding in London that kicked off due to the damaged cargo. ECP22 alleges that LDCFA's faulty stowage plan soiled the goods (Eastern Pacific Chartering (22) v. Louis Dreyfus Company Freight Asia, D. Del. #22-00958).
The case concerns a large shipment of breached and dried bulk palm olein that LDCFA sold to a Greek company called Agroinvest. Through a voyage charter party, LDCFA chartered a vessel from EPC22 to send the cargo from Indonesia to Greece. The charter party requires LDCFA to indemnify EPC22 from all claims over the cargo and provides for London arbitration of disputes, the complaint said.
After the vessel arrived in Greece, Agroinvest said that the temperature of the palm olein exceeded specifications for the transportation of the goods, meaning it was damaged. EPC22 said, though, that any overheating and resulting damage is LDCFA's fault, specifically that of its "faulty stowage plan." Agroinvest then sought a nearly $1.7 million pay day from EPC22 via an arbitration hearing. The Greek company also threatened to "arrest the Vessel" in South Africa, causing EPC22 to issue a $2.5 million letter of undertaking.
EPC22 launched its case in the Delaware district court to sue LDCFA for breach of contract which caused the plaintiff to pay for damages, avoid the arrest of its vessel and post security in the arbitration proceeding. EPC22 further sought the issue of process of maritime attachment so it can recover its payments made in the arbitration proceeding. In all, the plaintiff is seeking $2,945,801.40 from LDCFA.