CARRIAGE OF

GOODS BY SEA –
LIABILITY OF A
CARRIER
Dr. Iva Savić
Department for Maritime and Transport Law
Zagreb, April 16 2018
INTERNATIONAL FRAMEWORK (I)
• International Convention for the Unification of Certain
Rules of Law relating to Bills of Lading ("Hague Rules"),
and Protocol of Signature, 1924
• Protocol to Amend the International Convention for the Unification
of Certain Rules of Law Relating to Bills of Lading ("Visby Rules"),
1968 („Hague-Visby Rules”)
• Protocol (SDR Protocol) amending the International Convention for
the Unification of Certain Rules of Law relating to Bills of Lading of
25 August 1924 (The Hague Rules), as amended by the Protocol of
23 February 1968 (Visby Rules), 1979
INTERNATIONAL FRAMEWORK (II)
• United Nations Convention on the Carriage of Goods
by Sea ("Hamburg Rules"), 1978
• United Nations Convention on Contracts for the
International Carriage of Goods Wholly or Partly by
Sea (the "Rotterdam Rules"), 2008

• More information and texts available at:

• http://www.admiraltylawguide.com/interconv.html
• http://www.uncitral.org/uncitral/en/uncitral_texts/transport_goods/2008r
otterdam_rules.html
SCOPE OF APLICATION
Hague Rules (1924) Hague-Visby Rules (1968)
• B/L issued in a state • B/L issued in a state
party party
• Only for transport that • Port of loading in a state
includes issuing of B/L party
• Only if agreed in the
contract
• Only for transport that
includes issuing of B/L
Hamburg Rules (1978)
• Port of loading in a state
party
• Port of discharge in a
state party
• B/L or other transport
document issued in a
state party
• Only if agreed in the
contract
WHO IS A CARRIER?
Hague rules (1924) Hague-Visby Rules (1968) Hamburg Rules (1978)

„…carrier includes the „…carrier includes the „…any person by whom or

owner or the charterer who owner or the charterer who in whose name a contract
enters into a contract of enters into a contract of of carriage of goods by
carriage with a shipper.” carriage with a shipper.” sea has been concluded
with a shipper.”
BASIC PREMISES
• Carrier is obliged to:
1. Deliver the goods at the delivery point as accepted for carriage
(condition, type and volume)
2. Deliver the goods without the delay
> carrier is liable for a LOSS and DAMAGE to goods, and DELAY

• Presumed Fault principle

• Carrier can avail himself from liability if able to prove due
dilligence

• Liability period (see slide 8):

• from accepting the goods to their delivery – modern standard
LIABILITY OF A CARRIER FOR HIS
AGENTS AND SERVANTS
• Carrier is responsible as for his own acts (and omissions) if:
• 1. persons involved have undertaken those acts (omissions)
inside the scope of their jobs and tasks given , and
• 2. it does not concern a NAUTICAL FAULT (act, neglect or
default in the navigation or management of the ship).
> for commercial activities of persons who he uses in his business
• HIMALAYA clause – extending liabiltiy regime of a carrier to
independent third-party contractors
• Fire Exception (unless personal fault) *not retained in Hamburg rules
 Hague Rules (1924) Hague-Visby Rules Hamburg Rules
(1968) (1978)

liable person CARRIER CARRIER CARRIER

+ OPERATING
(actual) CARRIER
period of liability from loading to from loading to from receiving the
unloading (“tackle unloading (“tackle goods to delivery
to tackle”) to tackle”) (while „in charge”)

liability principle presumed fault presumed fault presumed fault

special exclusions – special exclusions – NO special
shift in burden of shift in burden of exclusions
proof proof *contractual and
extracontractual
requests
delay not regulated? not regulated? presumed fault
presumption of loss
(more than 60 days)
SPECIAL EXCLUSIONS – EXCEPTED
PERILS (I)

• Proved Fault principle

1. Carrier must prove the causal link between the named
exclusion (peril) and the damage
2. Transport user – can dispute – must prove carrier’s (or
person’s working for carrier) personal fault
EXCEPTED PERILS (II)
• (a) act, neglect, or default of the master, mariner, pilot or the
servants of the carrier in the navigation or in the management of the
ship (NAUTICAL FAULT);
• (b) fire, unless caused by the actual fault or privity of the carrier
(FIRE EXCEPTION);
• (c) perils, dangers and accidents of the sea or other navigable
waters;
• (d) act of God;
• (e) act of war;
• (f) act of public enemies;
• (g) arrest or restraint of princes, rulers or people, or seizure under
legal process;
EXCEPTED PERILS(III)
• (h)*quarantine restrictions;
• (i) *act or omission of the shipper or owner of the goods, his agent
or representative;
• (j) strikes or lock-outs or stoppage or restraint of labour from
whatever cause, whether partial or general;
• (k) riots and civil commotions;
• (l) saving or attempting to save life or property at sea;
• (m) wastage in bulk or weight or any other loss or damage arising
from inherent defect, quality or vice of the goods;
• (n) insufficiency of packing;
EXCEPTED PERILS(IV)
• (o) insufficiency or inadequacy of marks;
• (p) latent defects not discoverable by due diligence;
• (q) any other cause arising without the actual fault and privity
of the carrier, or without the fault or neglect of the agents or
servants of the carrier, but the burden of proof shall be on
the person claiming the benefit of this exception to show that
neither the actual fault or privity of the carrier nor the fault or
neglect of the agents or servants of the carrier contributed
to the loss or damage.
LIMITATION OF LIABILITY (I)
• Real value plus delay related damage – up to a limited cap
• real value at delivery port relevant at the time when the vessel was
supposed to arrive, or
• at Loading port when the vessel was supposed to commence the
voyage, plus the carriage costs, or
• calculated based on the court decision

• HV Rules
• 666,67 SDR per package or unit (container, if B/L does not stipulate
otherwise), or
• 2 SDR per gross kg tonnage
> whichever amount is higher
LIMITATION OF LIABILITY (II)
• Possible to agree to higher amounts (relevant for
consigner/shipper and carrier, not consignee who is not
nominated in B/L) > higher freight
• Exceptionally, possible to agree to lower amounts:
1. Before loading and after unloading
2. Delayed Delivery
3. Live animals carriage
4. On-deck carriage with shipper’s consent

• Loss of right to limit liability

• Intentionally or Recklessly Knowing that the Damage Would Probably
Result
 Hague Rules (1924) Hague-Visby Rules Hamburg Rules
(1968) (1978)

liability limitation 100 sterling 30 francs/kg OR 2.5 SDR per kg OR

pounds/unit 10000 francs/unit 835 SDR per unit

1979
PROTOCOL:666,67
SDR per package or
unit OR
2 SDR per gross kg
tonnage

loss of right to limit no rule Intention or Intention or

liability Recklessly Knowing Recklessly Knowing
that the Damage that the Damage
Would Probably Would Probably
Result Result