$150 Million Loss: Chilean Cherry Exporters Challenge Maersk’s Liability in Court

On Sept. 1, Chilean law firm Araya & Cía. announced that fruit exporters involved in the Maersk Saltoro cherry claim case, long mired in legal disputes, had seen the first stage of progress in the Constitutional Court.

Previously, the shipping company had committed only to establishing a liability limitation fund of $16.4 million, while actual cargo losses totaled an estimated $150 million. The Constitutional Court has since admitted a claim challenging the scheme as unconstitutional and inapplicable, while also suspending the proceedings underway at the Fifth Civil Court of Valparaíso.

According to Joaquín Valdivia, a lawyer from Araya & Cía., if the liability limitation clause is ruled unconstitutional, the existing judicial proceedings would be nullified. He explained that in such a case, a separate arbitration process would be initiated before an arbitral tribunal in Chile, potentially setting a precedent for maritime litigation in the country. He added that even if Maersk’s liability cap is ultimately not declared unconstitutional, a higher compensation limit than the original proposal could still be established.

It has now been more than seven months since the incident. On Dec. 27, 2024, the Maersk Saltoro departed from Chile’s Port of San Antonio carrying 1,300 containers of cherries (approximately 4.749 million cartons) along with 53 containers of nectarines. The vessel was scheduled to arrive at the Port of Nansha in China within 22 to 23 days. However, a mechanical failure during the voyage left the ship stranded in the Pacific Ocean near Micronesia for 22 days, and it ultimately reached its destination only after 52 days at sea, on Feb. 17, 2025.

On Feb. 24, under the supervision of Frutas de Chile, relevant Chinese health authorities completed laboratory testing on the first batch of 20 containers and concluded that the fruit was unfit for sale. Owing to the large-scale spoilage caused by the vessel delay, the destruction of the first batch of cherries and other fruit on board formally commenced on March 11.

This was not the first problem involving the Saltoro. As early as September 2024, the vessel had received warnings from the U.S. Coast Guard after an accumulation of oil was discovered in its engine room while docked at the Port of Baltimore in Maryland, and radar system malfunctions were later detected at the Port of Norfolk in Virginia.

With refrigerated storage and modified atmosphere packaging, cherries can typically remain fresh for 35 to 40 days. Beyond this period, however, the fruit begins to lose flavor, followed by browning and spoilage. The Saltoro’s 52-day voyage — combined with up to a week of pre-shipment processing — meant that the cherries were already 60 days old or more upon arrival.

In total, 95 Chilean exporters had containers on board, all of which suffered total cargo losses. Araya & Cía. is representing 25 of these exporters. On Feb. 28, 2025, representatives of the Saltoro applied to the Fifth Civil Court of Valparaíso to establish a liability limitation fund, setting the compensation cap at $16.4 million based on vessel tonnage and service terms — far below the estimated losses.

According to Araya & Cía., while many exporters had transport insurance, most policies cover only catastrophic events such as shipwrecks and do not extend to losses resulting from delays. What is claimed to make this case exceptional is that the entire cargo was lost alongside a fundamental flaw in the carrier’s application for a liability limitation fund. The applicant is required to demonstrate the absence of negligence, yet the available evidence is said to indicate serious misconduct in vessel operations. Industry insiders expect this to be a prolonged legal battle that is unlikely to satisfy all parties involved.

Image: Pixabay

This article was translated from Chinese. Read the original article.