Japanese shipping company to pay $8m compensation to Ningbo

A marine dispute that erupted after a Japanese ship crashed into a Chinese oil terminal has ended with mediation after a 42-month hearing, a maritime court said on Tuesday.

The defendants, Burney Japan Co., Ltd and Burney International Co., Ltd agreed to pay 55 million yuan ($8.49 million) in compensation after their ship, Takasuzu, crashed into the wharf in Ningbo, Zhejiang province, and destroyed it in 2012, according to a statement issued by the Ningbo Maritime Court.

The wharf, the biggest crude oil terminal in Asia, had to stop business after the crash and the court detained the Japanese ship, the statement said.

Ningbo Shi Hua Crude Oil Terminal Co., Ltd appealed to the marine court on June 27, 2012, asking for monetary compensation, it said.

Zhang Hua, the judge handling the case, said the main sticking point was how to evaluate the loss caused by the crash and it also stirred up a heated debate between the litigants.

In September 2013, the wharf started operating again, Zhang said, adding that the loss evaluation and how to repair the wharf, two difficulties in hearing marine cases, meant that the case took longer than usual.

Zeng Yan, president of Beihai Maritime Court in Guangxi Zhuang autonomous region, agreed with Zhang, saying that disputes caused by collisions are common in her court.

"The crashed often happen due to large ships or overweight vessels, and evaluating the damage is not only difficulty for marine judges, but also a challenge in the maritime case hearing," Zeng said.

She added that the case occurred in Ningbo related to foreign litigants, "which might cost much more time in delivering judicial documents".

But she spoke highly of the mediation made by the Ningbo Maritime Court, saying it is a good way to show Chinese judicial credibility.

"I hope more similar cases are disclosed online as that helps transparency and helps judges to improve their work," she added.

China has 10 marine courts, hearing the most maritime cases in the world, the country’s top court said, adding the number of marine disputes has a rapid increase in recent years.

From Jan 1 to Dec 15, the 10 courts handled 30,819 cases, an increase of 43 percent year-on-year, of which, 26,464 were concluded, the Supreme People’s Court said.

Foreign-related disputes occupied a certain percentage in total of the marine cases, the top court said, adding which is why it always called the 10 courts to make sure the quality of the related case hearing.

The foreign litigants have involved 73 countries and regions, including Japan, Britain and the United States, it added.

Contact the writer at caoyin@chinadaily.com.cn