Case Analysis: Coordinated Application of International Conventions in a Pearl River Ship Collision

This case concerns a foreign-related dispute arising out of a contract for the carriage of goods by sea, with the core controversy lying in the allocation of liability for container detention charges incurred due to non-taking delivery of goods at the port of destination. Relying on the new-era Maritime "Fengqiao Experience", the court conducted diversified mediation, balanced the rights and interests of multiple parties including the carrier, fishery producers, freight forwarders and foreign trade enterprises within the legal framework, and substantially resolved commercial disputes involving the export of Hainan’s characteristic aquatic products. It sets a model for flexible settlement of similar disputes over aquatic product foreign trade transportation in the Free Trade Port.

A Hainan international trading company purchased frozen tilapia from a Hainan fishery company for resale to an overseas enterprise in Côte d’Ivoire. The fishery company entrusted a freight forwarder to book shipping space with a shipping company, with Haikou as the port of loading and Abidjan of Côte d’Ivoire as the port of discharge. The bill of lading named the fishery company as the shipper and the overseas enterprise as the designated consignee. After the goods arrived at the destination port, the consignee failed to take delivery, resulting in substantial container detention charges. The shipping company filed a lawsuit with Haikou Maritime Court, claiming joint and several compensation of RMB 2,370,480 together with interest for container detention charges from the fishery company, freight forwarder and international trading company. The court of first instance ruled that the Hainan fishery company should pay RMB 600,000 container detention charges plus corresponding interest. Dissatisfied with the judgment, the fishery company appealed to Hainan High People’s Court. Two core legal issues arose in this case. First, identification of the liable party for container detention charges under the contract of carriage of goods by sea. Although the Hainan fishery company was recorded as the shipper on the bill of lading, the actual trade chain involved multiple layers of participants including manufacturers, freight forwarders and foreign trade intermediaries. The overseas consignee’s abandonment of goods constituted the root cause of losses, and all parties held fundamental disagreements on who should bear the detention charges. It was necessary to clarify the liability scope under the carriage contract and the division of obligations under the sales contract for foreign trade. Second, risk allocation rules for multiple participants in the aquatic product export industrial chain. This case involved four parties: manufacturers, freight forwarders, foreign trade intermediaries and the carrier. There was no unified judicial criterion governing the reasonable distribution of cross-border losses arising from breach of contract by overseas buyers among domestic industrial participants, which represented a frequent legal headache for Hainan’s aquatic export industry.

This case represented a typical Free Trade Port-related maritime carriage dispute over aquatic product exports. Taking into account the fishery enterprise’s core demand to sustain long-term foreign trade cooperation and stabilize its tilapia export business, the second-instance court rejected the simplistic approach of rendering a judgment alone and innovatively applied the Maritime "Fengqiao Experience" to carry out full-process mediation. The court first ascertained the core interest demands of all parties through full communication, distinguished their immediate economic losses from long-term operational development needs, and accurately identified the principal conflict underlying the dispute. Second, it provided thorough legal interpretation based on the first-instance judgment, guided all parties to rationally assess the potential outcome of the second-instance trial, and gradually built consensus to resolve the dispute via mediation. Finally, within the existing legal framework, the court comprehensively balanced the interests of all parties, the efficiency of dispute resolution and the continuity of commercial cooperation between enterprises, and formulated a tailor-made mediation plan. Ultimately, the Hainan fishery company and the Hainan international trading company jointly compensated the shipping company for the incurred losses. All parties respectively withdrew the second-instance appeal and the first-instance claim, and the people’s court halved the litigation fees. All parties have fully performed their payment obligations in accordance with the mediation agreement.

Hainan Province is China’s second-largest tilapia producing region. Exports of tilapia and its processed products accounted for over 90% of the province’s total aquatic product exports in 2024, forming a vital component of Hainan’s marine economy. The involved Hainan fishery company, a national key leading enterprise in agricultural industrialization, has ranked first in Hainan’s aquatic export foreign exchange earnings for ten consecutive years. This case exemplified a common commercial dispute for Hainan tilapia exporters, where default by overseas clients inflicted losses on domestic manufacturers, logistics providers and foreign trade entities. Committed to protecting local aquatic enterprises and supporting the development of characteristic marine industries, the people’s court embedded the new-era Maritime "Fengqiao Experience" into every stage of case trial. Through mediation, the court resolved conflicts of interest, reasonably allocated cross-border trade risks and minimized enterprises’ litigation costs. While achieving a one-time, thorough settlement of the dispute, it preserved the foundation for continued commercial cooperation among industrial chain participants and created favorable conditions for enterprises to carry out sustained foreign trade. It stands as a representative case demonstrating how judicial work can advance the high-quality development of Hainan’s characteristic aquatic export industry and boost the high-standard construction of Hainan Free Trade Port.