Over 42 cars falling into the sea, whose responsiblity is it?

September 26, 2024

Phuong Anh Transport and Trading Co., Ltd. is suing Vinafaco Shipping Joint Stock Company after 42 new cars were lost at sea during transportation. The incident occurred on December 22, 2023, when 14 containers containing the cars fell overboard as Vinafaco’s vessel passed through Cu Lao Cham. 

Incident summary 

  • Shipping Contract: Phuong Anh signed a contract with Vinafaco to transport goods from Hai Phong to Ho Chi Minh City. 
  • Accident: During the voyage, 14 of Phuong Anh’s containers fell into the sea, so they requested compensation of 38 billion VND for the damages. 
  • Vinafaco’s Response: The company has refused to pay compensation, claiming that the incident was due to a force majeure event. 

Expert assessment and Analysis 

  • First assessment: The securing equipment on the vessel was found to be old, rusty, and unsafe. 
  • Second assessment: It concluded that the accident occurred due to inadequate securing equipment that was not suitable for the weather conditions. 

Legal dispute 

  • Plaintiff: Phuong Anh asserts that the fault lies with Vinafaco for failing to ensure safe transport conditions. 
  • Defendant: Vinafaco claims that the incident was caused by an unavoidable natural disaster and that all necessary safety measures were implemented. 

Insurance considerations 

Bao Viet Insurance Company, which has insurance contracts with both parties, has also been brought into the case as a stakeholder. They have stated that the incident does not fall under the insured risks and have not yet provided an official response. 

Recommendations and progress 

Phuong Anh has requested an investigation into the potential environmental pollution due to chemical leaks from the car batteries in the sunken containers. The case is being processed, with a follow-up mediation session scheduled.

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