As the goods were being loaded onto the ship, but before passing over the ship’s rail, they were dropped and damaged. The sale contract specified “FOB London”: Under the terms "FOB London" the seller is responsible for warehousing at point of origin, warehouse labour charges, export packing, loading costs, inland freight charges, loading cargo on the ocean carrier, but not
Al Sagar Insurance charges. Therefore as the damage occurred prior to passing over the ship's rail it would be illogical to sue the shipowner, Liberian Lines Inc. as the shipowner's responsibility for the goods has not taken place prior to damages. In what ways could the shipowners be found liable of negligence if the damages occur prior to passing over the rail?