The M/V MSC Flaminia was a container ship owned by Conti 11 Container Schiffahrts-GMBH & Co KG MSC 'Flaminia' (Conti). The MSC Flaminia had been chartered to Mediterranean Shipping Co (MSC), and was operated by NSB Niederelbe Schiffahrtsgesellschaft MBH & Co KG (NSB).

While the MSC Flaminia was carrying a cargo of divinylbenzene (DVB) from Louisiana, USA, to Belgium, an explosion occurred because the auto-polymerised DVB was ignited by a spark. As a result of the explosion and a fire, three members of the crew were killed, thousands of cargo containers were destroyed, and the vessel was seriously damaged.

Conti, as the owner of the MSC Flaminia, and NSB, as ship operator, brought an action seeking exoneration from, or limitation of, liability arising from the explosion and fire. In addition, Conti and NSB argued for the fire exception under COGSA / the Hague Rules, art 4.2.b and the Himalaya clause to extend the defences and limitations of liability provided to a carrier under COGSA / the Hague Rules to its agent. The shipper of the DVB cargo, the non-vessel-owning common carrier (NVOCC), and the company that arranged for transportation of the DVB cargo brought a third-party action against BDP International Inc (BDP), a company that had issued the ocean bill of lading for the DVB cargo, alleging that it failed to ensure proper stowage instructions for the DVB. The Court was asked to establish responsibilities for this explosion and fire.

Held: Regarding the responsibilities for the explosion and fire, the Court found that neither MSC nor NSB violated any of their duties under COGSA / the Hague Rules, the IMDG Code, SOLAS, or the HMR. In addition, neither the shipper nor the carrier had actual or constructive pre-shipment knowledge of the goods' dangerous nature. Moreover, the Court found that the manufacturer of the DVB and the NVOCC were negligent on the basis of their failure to warn. Thus, the Court held that the manufacturer of the DVB and the NVOCC were strictly liable under COGSA / the Hague Rules, art 4.6, for losses arising due to the explosion.

Regarding the fire defences asserted by Conti and NSB under the Limitation of Shipowner’s Liability Act and COGSA / the Hague Rules, the Court held that these defences were available, since the explosion on the MSC Flaminia was not due to actual fault on the part of MSC, Conti, and NSB. In addition, MSC, Conti, and NSB were entitled to full indemnification from the manufacturer of the DVB and the NOVCC based on the express terms of the sea waybills.

Finally, regarding the Himalaya clause, the Court held that MSC's agents and subcontractors were entitled to the same limitations and protection that would be provided to MSC under COGSA / the Hague Rules.

[For the partially successful appeal to the Court of Appeals for the Second Circuit, see In re M/V MSC Flaminia (CMI2229).]