NYKCool A. B., based in Stockholm, Sweden, provides maritime transporta-tion for hire. It is a subsidiary of NYKReefers Limited, which operates as a subsidiary of Nippon Yusen Kabushiki Kaisha, one of the world’s largest shipping companies. NYKCool has a fleet of more than fifty ships and offices in Argentina, Brazil, Chile, Ecuador, Japan, New Zealand, South Africa, the United Kingdom, and the United States. NYKCool focuses on transporting perishables, especially fruit. To reduce the number of empty containers, the firm disperses its large fleet around the globe in cost- efficient pat-terns and carries other cargoes on its vessels’ return trips.

The Legal Environment Dimension

What circumstance in this case demonstrates most strongly that Pacific did not truly believe that it did not have a contract with NYKCool? Explain.

The Economic Dimension

How can a carrier avoid losses under a contract that obligates it only to transport cargo one way and not on the return voyage?