Vassallo Associates is pleased to share the outcome of a significant judgement delivered by the Court of Appeal (Civil, Superior Jurisdiction) on 2 February 2026, providing important clarification on the interpretation of the term “Merchant” as defined in bills of lading.
The case arose from the shipment of two containers from Malta to Xingang, China, in 2013. The cargo was never collected by the consignee upon arrival and remained abandoned at the port for several years. Following the continued failure to take delivery of the goods, the Chinese port authorities ultimately destroyed the containers in January 2017. As a result, the Carrier incurred substantial demurrage, detention, storage and destruction costs, which it sought to recover through legal proceedings.
At first instance, the Civil Court (First Hall) dismissed the Carrier’s claims in their entirety. The Carrier subsequently appealed the judgement.
In its decision, the Court of Appeal overturned the earlier ruling, holding that the defendant fell within the contractual definition of “Merchant” contained in the Bill of Lading. The Court confirmed that, under the terms of the contract of carriage, the defendant was jointly and severally liable, together with the consignee, for the costs arising from the abandoned cargo. The matter has now been remitted to the Civil Court (First Hall) for the assessment and quantification of damages.
The judgement is of particular interest to carriers, freight forwarders, logistics providers and cargo interests, as it reinforces the broad contractual scope of the term “Merchant” commonly found in bills of lading and highlights the potential liabilities that may arise where cargo is abandoned or left uncollected at its destination.
Vassallo Associates is proud to have represented and advised the Carrier throughout the appeal proceedings. Our maritime law team remains committed to supporting clients in complex shipping and cargo disputes and will continue to assist the Carrier as the matter proceeds to the next stage of the litigation.