introduction

3 sets of rules governing carrier’s

obligations and liability- Hague,
Hague-Visby and Hamburg rules.
 These are international conventions
applicable to contracts of carriage.
 These contain minimum terms and
conditions where a bill of lading is
used.
 Intro contd.
These set of rules contain:
 Carrier’s obligations
 Carrier’s exceptions from liability
 Extent of carrier’s liability to shipper
 Shipper’s responsibilities
 The amounts recoverable from the carrier
in case of loss of or damage to the goods
while in the carrier’s care.
 Intro contd.
 Hague Rules- adopted by majority of trading
countries.
 Hague-Visby Rules- adopted by the UK and
30 other countries.
 Hamburg Rules- adopted by fewer countries.
(not favoured by ship-owners since they are
less to their advantage than the other rules)
Where a set of rules is adopted by a particular
state, the rules are incorporated by law into
the domestic legislation of the State. In UK
Hague – Visby rules are adopted in COGSA
-71
 Hague – Visby Rules
Proper name - Hague rules as Amended by Brussels
Protocol 1968
Applies to every Bill of Lading or document of title
relating to carriage of goods between different
states if:
 If B/L is issued in contracting state
 Carriage is from a port of contracting state
 In every other case, If incorporated in B/L
Rules apply to B/L only and not the charter party.
 Carrier’s responsibilities
Under HVR carrier has three basic
obligations
1. To ensure the vessel’s
seaworthiness
2. To care for the cargo
3. To issue a bill of lading where the
shipper requests one.
 Seaworthiness
Carrier must before and at the beginning of
voyage, exercise due diligence to:
 Make the ship seaworthy
 Properly man, equip and supply the ship
 Make the parts of the ship in which goods are to
be carried, fit and safe for their reception,
carriage and preservation.
Vessel needs to be seaworthy only at the
beginning of the voyage.
 Care for the cargo
Unlike the seaworthiness, duty of care for
the cargo extends throughout the voyage.
Carrier must carefully:
 Load
 Handle
 Stow
 Carry
 Keep
 Care for and discharge any goods carried.

Shipper must provide special instructions

where special care is required.
 17 Exceptions from liability
Carrier will not be responsible for loss or damage
arising from:
 Act, neglect or default of the master, pilot,
manager.
 Fire unless caused by actual fault of carrier.
 Perils, dangers and accidents of sea.
 Acts of God, war, public enemies.
 Arrest or restrain of princes, rulers.
 Quarantine regulations
 Carrier’s exceptions contd.
 Act or omission of shipper or his agents.
 Strikes lockouts etc.
 Riots and civil commotions.
 Saving or attempting to save life or
property at sea.
 Wastage of cargo due to its inherent
qualities, insufficient packing marks etc.
 Latent defects not discoverable by due
diligence.
 Any other cause arising without the actual
fault of owner.
Carrier’s exceptions - dangerous
cargo
 Goods of an inflammable, explosive or
dangerous nature if not properly
marker or are shipped without the
knowledge and consent of carrier,
may be landed, destroyed, jettisoned
or rendered innocuous at any time
before discharge.
 If carried with consent of carrier, but
become dangerous at a later stage
can also be dealt with likewise.
 Deck cargo and livestock
 Hague-Visby rules do not apply to
deck cargoes and live animals.
 But COGSA-71 reverses this by
stating that the rules will apply as if
they do not exclude deck cargo and
live animals.
 Hamburg rules
Properly called united nations convention on
the carriage of goods by sea 1978
Introduced in 1992 in response to shippers
complaints that HVR were unfavourably
weighted in favour of the carrier.
 Hamburg rule do not give carrier so many
exceptions from liability. In particular, the
carrier is not exonerated from liability
arising from negligence in navigation or
management of the ship.
 Hamburg rules cover live animals.
 Cargo can be carried on deck only when
there is a custom of the trade to do so or
by an agreement with the shipper.
 P&I normally refuse to cover cargo carried
under Hamburg Rules