The Hague Rules

Bills of Lading started to be used in Venice, Italy in the 13th century. The merchant on arriving safely at the destination would pay the master money or part of the goods. The master in turn paid the crews. Failure to arrive safely meant nothing was paid since it was an adventure.

After 14th century, it was found unnecessary for cargo-owner to travel with his goods. Instead the cargo was delivered to the master and the master would act as an agent on behalf of the cargo owner.

Eventually, the master found it necessary to maintain a book where the following information were entered:

a) List of Shippers' Consignees
b) Nature of Cargo
c) Freight To Be Paid

The cargo owner however demanded a receipt from the master showing goods received and freight to be paid. The receipt given by the master was the origin of the Bill of Lading and was considered as evidence of the contract of carriage and that the master has to deliver the cargo to the consignee.

Between 1880 to 1890, the International Law Association thought of uniformity of legislation and unification where they started to formulate the general average and formed the York-Antwerp Rules. From 1890 onwards, several conferences were held in order to form uniformity for the Bill of Lading, but unfortunately these conferences were interrupted by the outbreak of the First World War.

After the First World War, these conferences resumed and agreed to draft the minimum rules for the Bill Of Lading which were to be obligatory. This meeting was held in London in 1923 and during the London meeting on that year, the Commonwealth states such as Canada, South Africa and Australia had strong reservations to the Uniform Rules.

In 1924, in the Hague, these rules were rectified and it has been called "The Hague Rules". The British had introduced the Carriage of Goods by Sea Act in 1924 (COGSA 1924). Scandinavia and the United States introduced these rules into their legal system in 1936.

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