SCC Case 16/2000 - Chapter 16 - SCC Arbitral Awards - 1999-2003
About the Editors:
Sigvard Jarvin has been involved in more than 215 international arbitrations under the arbitration rules of the ICC, the Stockholm Arbitration Institute, the Dutch Arbitration Institute, the American Arbitration Association, LCIA, UNCITRAL, the Cairo Regional Centre, and other arbitration organizations. He was general counsel to the ICC International Court of Arbitration, Paris (1982-1987) and member of the Court (1988-1995). He also chaired the ICC working party revising the ICC/CMI Maritime Arbitration Rules (1997-1998).
Mr. Jarvin was the rapporteur at the 1990 and 1998 ICCA Congresses and was chairman of the foreign section of the Swedish Bar from 1999 to 2000, and he is also a member of the board of the Institute of Arbitration Law at Stockholm University and a member of the ICC Commission on Arbitration and the International Arbitration Club, London. He is cited yearly as one of the best arbitration lawyers in France in Chambers Global — The World’s Leading Lawyers , published by Chambers & Partners.
Annette Magnusson, is a Professional Support Lawyer at the firm of Mannheimer Swartling, Stockholm. She was formerly Assistant Secretary General and legal counsel for the Arbitration Institute of the Stockholm Chamber of Commerce.
Observation Commentary by:
Patrik Lindfors & Mika Savola, Hannes Snellman Attorneys at Law, Helsinki; Head of Dispute Resolution and Secretary of the Finnish Arbitration Association, respectively.
Jakob Heidbrink
Originally from SCC Arbitral Awards 1999-2003
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Subject matters:
(1) Whether a contract for the packing and transport of industrial equipment provided for a fixed or variable price.
(2) When the freight increases due to an increase in the volume of the cargo, who shall bear the risk for such increase?
(3) Duty of a carrier to notify the customer in the event of expected increase of costs for the transportation.
Findings:
(1) Interpreted according to its wording, the contract is not a global lump sum contract (Global Pauschalvertrag) but a Detail-Pauschalvertrag under German law.
(2) A freight customer providing an estimate of the total volume of a cargo must bear the risk of variations, unless the volume of cargo has been exceeded due to improper packing by the carrier, or its subcontractors.
(3) When a carrier becomes aware of the fact that a contractual estimate of volume might be considerably exceeded, and the freight costs thereby can be expected to increase, the carrier must expressly advise the customer without delay.
Parties: Claimant: T, logistic and forwarding company (Hong Kong)
Respondent: B, trading company (Hong Kong)
Place of arbitration: Stockholm
Applicable substantive law: German
XVI. SCC case 16/2000
Subject-matters:
(1) Whether a contract for the packing and transport of industrial equipment
provided for a fixed or variable price.
(2) When the freight increases due to an increase in the volume of the cargo,
who shall bear the risk for such increase?
(3) Duty of a carrier to notify the customer in the event of expected increase of costs for the transportation.
Observations by Patrik Lindfors & Mika Savola
Observations by Jakob Heidbrink