introductionintroduction

3 sets of rules governing carrier’s 3 sets of rules governing carrier’s obligations and liability- Hague, obligations and liability- Hague, Hague-Visby and Hamburg rules.Hague-Visby and Hamburg rules.

These are international conventions These are international conventions applicable to contracts of carriage.applicable to contracts of carriage.

These contain minimum terms and These contain minimum terms and conditions where a bill of lading is conditions where a bill of lading is used.used.

Intro contd.Intro contd.

These set of rules contain:These set of rules contain:Carrier’s obligationsCarrier’s obligationsCarrier’s exceptions from liabilityCarrier’s exceptions from liabilityExtent of carrier’s liability to shipperExtent of carrier’s liability to shipperShipper’s responsibilitiesShipper’s responsibilitiesThe amounts recoverable from the The amounts recoverable from the

carrier in case of loss of or damage to carrier in case of loss of or damage to the goods while in the carrier’s care.the goods while in the carrier’s care.

Intro contd.Intro contd. Hague Rules- adopted by majority of Hague Rules- adopted by majority of

trading countries.trading countries. Hague-Visby Rules- adopted by the UK and Hague-Visby Rules- adopted by the UK and

30 other countries.30 other countries. Hamburg Rules- adopted by fewer Hamburg Rules- adopted by fewer

countries. (not favoured by ship-owners countries. (not favoured by ship-owners since they are less to their advantage than since they are less to their advantage than the other rules)the other rules)

Where a set of rules is adopted by a particular Where a set of rules is adopted by a particular state, the rules are incorporated by law into state, the rules are incorporated by law into the domestic legislation of the State. In UK the domestic legislation of the State. In UK Hague – Visby rules are adopted in COGSA -Hague – Visby rules are adopted in COGSA -7171

Hague – Visby RulesHague – Visby Rules

Proper name - Hague rules as Amended by Proper name - Hague rules as Amended by Brussels Protocol 1968Brussels Protocol 1968

Applies to every Bill of Lading or document of Applies to every Bill of Lading or document of title relating to carriage of goods between title relating to carriage of goods between different states if:different states if:

If B/L is issued in contracting stateIf B/L is issued in contracting state Carriage is from a port of contracting stateCarriage is from a port of contracting state In every other case, If incorporated in B/LIn every other case, If incorporated in B/L

Rules apply to B/L only and not the charter Rules apply to B/L only and not the charter party.party.

Carrier’s responsibilitiesCarrier’s responsibilities

Under HVR carrier has three basic Under HVR carrier has three basic obligationsobligations

1.1. To ensure the vessel’s To ensure the vessel’s seaworthinessseaworthiness

2.2. To care for the cargoTo care for the cargo

3.3. To issue a bill of lading where the To issue a bill of lading where the shipper requests one.shipper requests one.

Seaworthiness Seaworthiness

Carrier must before and at the beginning of Carrier must before and at the beginning of voyage, exercise due diligence to:voyage, exercise due diligence to:

Make the ship seaworthyMake the ship seaworthyProperly man, equip and supply the shipProperly man, equip and supply the shipMake the parts of the ship in which goods Make the parts of the ship in which goods

are to be carried, fit and safe for their are to be carried, fit and safe for their reception, carriage and preservation.reception, carriage and preservation.

Vessel needs to be seaworthy only at the Vessel needs to be seaworthy only at the beginning of the voyage.beginning of the voyage.

Care for the cargoCare for the cargoUnlike the seaworthiness, duty of care for Unlike the seaworthiness, duty of care for

the cargo extends throughout the voyage.the cargo extends throughout the voyage.

Carrier must carefully:Carrier must carefully: LoadLoad HandleHandle StowStow CarryCarry KeepKeep Care for and discharge any goods carried.Care for and discharge any goods carried.

Shipper must provide special instructions Shipper must provide special instructions where special care is required.where special care is required.

17 Exceptions from liability17 Exceptions from liability

Carrier will not be responsible for loss or Carrier will not be responsible for loss or damage arising from:damage arising from:

Act, neglect or default of the master, pilot, Act, neglect or default of the master, pilot, manager.manager.

Fire unless caused by actual fault of Fire unless caused by actual fault of carrier.carrier.

Perils, dangers and accidents of sea.Perils, dangers and accidents of sea. Acts of God, war, public enemies.Acts of God, war, public enemies. Arrest or restrain of princes, rulers.Arrest or restrain of princes, rulers. Quarantine regulationsQuarantine regulations

Carrier’s exceptions contd.Carrier’s exceptions contd.

Act or omission of shipper or his agents.Act or omission of shipper or his agents. Strikes lockouts etc.Strikes lockouts etc. Riots and civil commotions.Riots and civil commotions. Saving or attempting to save life or Saving or attempting to save life or

property at sea.property at sea. Wastage of cargo due to its inherent Wastage of cargo due to its inherent

qualities, insufficient packing marks etc.qualities, insufficient packing marks etc. Latent defects not discoverable by due Latent defects not discoverable by due

diligence.diligence. Any other cause arising without the actual Any other cause arising without the actual

fault of owner.fault of owner.

Carrier’s exceptions - dangerous Carrier’s exceptions - dangerous cargocargo

Goods of an inflammable, explosive Goods of an inflammable, explosive or dangerous nature if not properly or dangerous nature if not properly marker or are shipped without the marker or are shipped without the knowledge and consent of carrier, knowledge and consent of carrier, may be landed, destroyed, jettisoned may be landed, destroyed, jettisoned or rendered innocuous at any time or rendered innocuous at any time before discharge.before discharge.

If carried with consent of carrier, but If carried with consent of carrier, but become dangerous at a later stage become dangerous at a later stage can also be dealt with likewise. can also be dealt with likewise.

Deck cargo and livestockDeck cargo and livestock

Hague-Visby rules do not apply to Hague-Visby rules do not apply to deck cargoes and live animals.deck cargoes and live animals.

But COGSA-71 reverses this by But COGSA-71 reverses this by stating that the rules will apply as if stating that the rules will apply as if they do not exclude deck cargo and they do not exclude deck cargo and live animals.live animals.

Hamburg rulesHamburg rulesProperly called united nations convention on Properly called united nations convention on

the carriage of goods by sea 1978the carriage of goods by sea 1978Introduced in 1992 in response to shippers Introduced in 1992 in response to shippers

complaints that HVR were unfavourably complaints that HVR were unfavourably weighted in favour of the carrier.weighted in favour of the carrier.

Hamburg rule do not give carrier so many Hamburg rule do not give carrier so many exceptions from liability. In particular, the exceptions from liability. In particular, the carrier is not exonerated from liability carrier is not exonerated from liability arising from negligence in navigation or arising from negligence in navigation or management of the ship.management of the ship.

Hamburg rules cover live animals.Hamburg rules cover live animals. Cargo can be carried on deck only when Cargo can be carried on deck only when

there is a custom of the trade to do so or there is a custom of the trade to do so or by an agreement with the shipper.by an agreement with the shipper.

P&I normally refuse to cover cargo carried P&I normally refuse to cover cargo carried under Hamburg Rulesunder Hamburg Rules