Sealed Sample: 5 Hazen at Loading, 12 Hazen on Arrival. Carrier Liable

Background

A Nigerian company entered into a contract with a Tianjin-based Chinese company for the sale of industrial synthetic phenol, stipulating that the color value must not exceed 10 Hazen. At loading, the shipper and carrier jointly sealed a sample, which traveled with the cargo as the basis for quality inspection at destination. Upon arrival, inspection revealed color changes in two of the three holds; after blending into shore tanks, the overall color value reached 12 Hazen — far exceeding the pre-shipment standard of 5 Hazen. The Nigerian company refused acceptance.

Dispute

The Tianjin company entrusted SuitWin Recovery. After adjudication by the Tianjin Maritime Court, the court determined that although national standards impose no mandatory requirement on color value, the indicator may be agreed upon by the parties — and the contract explicitly capped it at 10 Hazen. The sealed loading sample served as crucial evidence, showing the color changed during the carrier’s custody period and exceeded the standard after blending.

Outcome

The court ruled that the shipping company was to compensate the Tianjin company RMB 2.37 million.