Scope of Application, Carrier's Responsibilities and Liability

-
The basic convention is the International Convention for the Unification of Certain Rules Relating to Bill of Lading, dated 28 August 1924, usually called the Hague Rules.
  • The Bill of Lading Convention may apply automatically or by agreement (They are obligatory rules). The Rules are automatic when the agreement of carriage is included in the Bill of Lading.
  • When the Bill of Lading is issued in a contracting country.
  • When transportation of goods into a country which is a signatory to the convention.
  • The Rules are not applicable to live animals and cargo shipped on deck.
  • Damage or loss must occur during the "carriage of goods".
Carrier's Responsibilities

An important aspect of the Hague Rules is that when the country of shipment has rectified the Rules or passed an Act in conformity with the Rules, the cargo interests are given a minimum protection of a mandatory character i.e. the carrier can accept a wider liability but he cannot contractually reduce it.

The carrier is bound, before and at the begining of the voyage to exercise due diligence to:
  • Make the ship seaworthy.
  • Properly man, equip and supply the ship.
  • Make the holds, refrigerating and cool chambers and all other parts in which the goods are carried fit and safe for reception, carriage and preservation of foods, in other words, to make the ship cargo-worthy.
The carrier is however not responsible for the following:
  • Unseaworthiness of the ship and if this is not caused by lack of due diligence on his part before and at the beginning of the voyage.
  • Consequences of acts, neglect or faults of the master or his agents in navigation or management of the ship.
  • Liability from the loss of public enemies, act or omission of the shipper, quarantine restrictions, inherent vice (defect) of the goods or insufficiency of packaging.
Carrier's Liability

If the carrier is held liable, his liability would amount to not more than 100 pounds sterling per package or unit unless the nature and value of goods had been declared by the shipper prior to loading and stated in the Bill of Lading.

Popular posts from this blog

Value-Added Role of Logistics

-
Image
Form Utility . It refers to the value added to goods through a manufacturing, production or assembling process. For example, form utility results when raw materials are combined in some predetermined manner to make a finished product. This is the case, for instance, when a bottling company adds together syrup, water and carbonation to make a soft drink. The simple process of adding the raw materials together to produce the soft drink represents a change in product form that adds value to the product. In today's economic environment, certain logistics activities can also provide form utility. For example, breaking bulk and product mixing, which typically take place at distribution centres, change a product's form by changing its shipment size and packaging characteristics. Thus, unpacking a pallet of breakfast cereal into individual customer size boxes form utility to the product. However, the two principal methods in which logistics adds value are in place and time utility
Read more

Various Basic Shipping Charges on Landside and Waterside

-
Landside Stevedoring - cargo handling charges for loading / discharging cargo on / from conventional breakbulk vessels. LCL Service Charge - charge for stuffing and unstuffing LCL (Less than Container Load) cargo into or from a container at the freight station. Equipment Transfer Charge (ETC) - charge for lifting an empty or loaded container onto / from the trailer. Also called Lift-on / Lift-off (LOLO) charge. This charge is applicable on FCL (Full Container Load) containers only. Terminal Handling Charge (THC) - charge for handling (receiving and delivering) FCL containers at the container yard (CY). Waterside Bunker Adjustment Factor (BAF) - surcharge for offsetting changes in fuel prices. Congestion Surcharge - surcharge levied on cargo that are discharge at a port where ships are experiencing delays in turnaround time. Currency Adjustment Factor (CAF) - surcharge for offsetting fluctuations in currency exchange rates of various currencies against the US Dollar. In Asia and Japan t
Read more

Multimodalism - Definition and Concept

-
Image
A global scenario is developing whereby: a) production, manufacturing, distribution and consumption is becoming increasingly sophisticated in order to ensure products are available in the global market place at the correct time, for the correct price and in good condition. b) transport services are changing in nature to meet the demands of buyers and sellers involved in the global production and consumption cycle. c) transportation services demanded by buyers and sellers increasingly involve collection of goods at a place in one country for delivery to a place in another country within specified time frames and with contractual agreement clearly setting out areas of responsibilities and liability. d) results of containerization. e) new technologies in transport (including communication systems). The name commonly applied to this all embracing transport service is Multimodal Transport. What is Multimodal Transport? The United Nations Convention on International Multimodal Transport of G
Read more