The Port of Southampton faces severe disruption this week as 13 port health officers go on strike for five days, from 11 July 2011. The strike has the potential to cause major disruption to both ships entering and leaving the port, and to the release and distribution of cargo containers generally.
The port health officers play a vital role in the port operation through their work inspecting containers/cargo, tankers, cargo vessels and cruise liners, and whilst they may deem this strike action to be unavoidable, there is potential for cargo damage to arise as a result. Whilst time will tell as to whether any major disruption will arise from the action, now may be a prudent time to recap on the strike clauses contained within marine cargo policies.
The Institute Cargo Clauses (A), (B) and (C) 2009, provide that in no case shall the insurance cover loss, damage or expense:
" 7.1 caused by strikers, locked out workmen, or persons taking part in labour disturbances, riots or civil commotions;
7.2 resulting from strikes, lock-outs, labour disturbances, riots or civil commotions ."
The Institute Strike Clauses (Cargo), which are regularly incorporated into cargo policies, will cover damage caused by strikers, but not loss, damage or expense resulting from strike action.
Furthermore clause 3.7 of the Institute Strike Clauses, excludes “loss, damage or expense arising from the absence, shortage or withholding of labour of any description whatsoever resulting from any strike, lock-out, labour disturbance, riot or civil commotion”.
In brief, the physical loss of or damage to cargo caused by the strikers themselves will be covered, whereas if the cause of damage or loss is due to the withholding of labour i.e. deterioration or expense caused by the shortage or withholding of labour, then such loss will not be covered.
Should you wish to discuss this matter further or should you require any further assistance or clarification, then please do not hesitate to contact us.
Hill Dickinson has a wealth of experience in dealing with the full
range of marine, trade and energy issues. If you have any
queries relating to the above, or any other legal matter, please do
not hesitate to contact
us for advice.
