A $2 million cargo loss at sea is now at the center of a new legal battle, with HDI Global Insurance Company demanding answers from some of the world’s biggest shipping and logistics players.
On Aug. 29, HDI Global Insurance Company filed a complaint in the US District Court for the Southern District of New York, setting off a dispute that’s sure to catch the attention of insurance professionals across the country. The insurer is seeking to recover $2,002,586.08 after an incident last August left containers of goods either lost overboard or damaged off the coast of South Africa.
Here’s what’s at stake: HDI says it insured several shipments transported, or intended to be transported, by ocean carriage from Asia to the United States. On or about Aug. 28, 2024, the M/V MSC ANTONIA was involved in an incident in the South Atlantic Ocean. According to the complaint, numerous containers and their cargoes fell overboard and were lost at sea, while other containers and their cargoes were damaged by a stow collapse. The goods included 44 packages of metering units, 4,558 packages of pharmaceuticals, 170 packages of vulcanized rubber mats, 718 packages of cotton bath mats, 10 packages of enoxaparin sodium pre-filled syringes, and 9 packages of castings, with destinations in Greensboro, N.C.; Savannah, Ga.; New York, N.Y.; Nashville, Tenn.; and Duncan, S.C.
HDI’s claim is that the cargoes were tendered to and delivered into the custody and/or control of the defendants in good order and condition, and that the defendants received, accepted, and agreed to transport the cargoes by ocean carriage to destination. The insurer says it paid out claims to the shippers, consignees, and/or owners of the cargoes under insurance policies in force at the time of the loss or damage, and now seeks to recover those amounts from the companies it believes are responsible. The complaint names MSC Mediterranean Shipping Company S.A., BDP Transport Inc., Interport Global Logistics USA Inc., C.H. Robinson International, Inc., Flexport International LLC, Kuehne + Nagel Inc., and Expeditors International of Washington, Inc. as defendants.
The complaint requests judgment for specific amounts for each shipment: $226,226 against MSC and BDP; $1,568,053 against MSC and Interport; $27,581 against MSC and C.H. Robinson International, Inc.; $62,069.86 against MSC and Flexport; $90,720 against MSC and Kuehne + Nagel Inc.; and $27,936.22 against MSC and Expeditors International of Washington, Inc., together with costs and interest. Each claim is tied to a particular cargo and route, with the total adding up to $2,002,586.08.
The complaint states that the United States District Court for the Southern District of New York is the proper venue for this action by virtue of the forum-selection clause contained in one or more of the operative bills of lading, sea waybills, terms and conditions of service, and/or contracts of carriage for the shipments at issue.
While the complaint does not detail specific insurance policy clauses, it states that HDI is acting as subrogee, pursuing recovery after paying claims for the loss and/or damage to the cargoes. The case is based on HDI’s assertion that the defendants breached their statutory, contractual, and/or common law duties and obligations as carriers and/or bailees of the cargoes, and were negligent and careless in their handling of the cargoes.
As this is a newly filed complaint, all allegations represent the claims of HDI Global Insurance Company and have not been adjudicated. The outcome of the case remains pending. For insurance professionals, the dispute highlights the importance of clear contracts and risk management in international cargo shipments.
