Carriage of goods by air

Presented by: Melanie Dmello Tabinda Baig Rija Qutaibah Zahra Anum Obaid Ghouri BBA V-D
1/18/2012 1

Introduction
The Carriage by Air Act of 1934:
y

An Act to give effect to a Convention for the unification of certain rules relating to international carriage by air.

High Contracting party: y It is a country that has ratified to the Warsaw Convention. It means the governments of all the countries which re signatory to the Warsaw convention.
y

Pakistan is a signatory to the Warsaw convention and is a high contracting party

1/18/2012 2

International Carriage:
y

The term refers to the place of departure and destination located within the territorial jurisdictions of the two high contracting parties.

1/18/2012

Documents of Carriage
y 1. 2. 3. 4. 5.

Passenger ticket (issued by a carrier) must show: the place and date of issue, places of departure and destination, the agreed stopping place, the name and address of the carrier, the statement that the carriage is subject to the liabilities mentioned therein. The absence or loss of passenger ticket does not affect the validity of the contract of carriage, but if the carrier accepts a passenger without a ticket, he cannot enjoy the benefit of limiting his liability.
1/18/2012 4

Contd..
Baggage check: 1. The place and date of issues 2. Places of departure and destination, 3. Name and address of the carrier or carriers, 4. The number of passenger tickets, 5. A statement that the baggage will be delivered to the bearer of baggage check, 6. The number and weight of the package, 7. The amount of the value declared in accordance with Rule 22 (2), and 8. A statement that the carriage is subject to rules relating to liability stated therein.
1/18/2012 5

Airway Bill
y

This is a document handed over by the consignor to the carrier along with the goods. The Air Way Bill is prepared in triplicate, the first copy for the carrier, the second for the consignee and the third is to be retained by the consignor, after the carrier has signed it in token of acceptance of goods. The Air Way Bill must contain the specified particulars for the correctness of which the consignor is responsible and he will be liable for all damages suffered due to the incompleteness of the particulars. The Air Way Bill is the prima facie evidence of the conclusion of contract of carriage, of the receipt of goods

1/18/2012

1/18/2012

Difference between consigner and consignee

y

Consignor: the person who delivers over or commits merchandise

Consignee: the person to whom merchandise is delivered over

1/18/2012

Rights of Consignor
According to Article 12 of Warsaw convention consignor can:
y y y y y

Withdraw the goods at point of departure as well as destination. To stop the goods in transit. Order the good to be delivered at a stopping place. Have the goods returned. Deliver the goods to someone other than the consignee named on the bill.
1/18/2012 9

Duties of Consignor
y

Must ensure that the details entered on the waybill are correct under both conventions. Since consignor warrants whether goods are fit to be carried, thus is liable on behalf of any damages faced by carrier. Liable if the carrier suffers damages such as absence of document or insufficient documents.
1/18/2012 10

Right of disposition of Consignor

y

The consignor also has the right to dispose of the cargo by withdrawing it at the airport of departure or destination or by stopping it in the course of its journey. (Article 12)

1/18/2012

11

Rights of Consignee
Unless otherwise agreed the consignee has the right to receive notice from the carrier as soon as the goods arrive at its destination. y The consignee can get delivery on the payment of charges. y In case of loss the consignee may enforce his rights.
y

1/18/2012

12

Duties of Consignee
y

The consignee on delivery of goods must comply with the charges and the delivery conditions agreed upon.

1/18/2012

13

Liabilities of Carrier
Carrier's Liability
Compensation in the case of death or injury: y the air carrier can defend itself against a claim by proving that it was not negligent or otherwise at fault. Passenger delays:
y

The air carrier is liable for damage unless it took all reasonable measures to avoid the damage or it was impossible to take such measures.

1/18/2012

14

Contd..
Baggage delays: y the air carrier is liable for damage unless it took all reasonable measures to avoid the damage. Destruction, loss or damage to baggage: y The air carrier is liable for destruction, loss or damage to baggage. y In the case of checked baggage, it is liable even if not at fault, unless the baggage was defective. y In the case of unchecked baggage, the carrier is liable only if at fault
1/18/2012 15

Contd Contd
Complaints on baggage y If the baggage is damaged, delayed, lost or destroyed, the passenger must write and complain to the air carrier as soon as possible. In the case of damage to checked baggage, the passenger must write and complain within seven days, and in the case of delay within 21 days, in both cases from the date on which the baggage was placed at the passenger's disposal.

1/18/2012

16

Limitation of Carrier's Liability

y

In India the liability of internal or domestic carriers (e.g. Indian Airlines) for passengers and their baggage has been fixed as follows: In the case of passengers 2,50,000/- francs* per passenger ;For registered baggage and cargo 250* francs per kilogram, and For articles in the charge of the passenger himself 5000* francs per passenger.
1/18/2012 17

Procedure for realizing liabilities

y

The person must complain about damages within 3 days from date of receipt, seven days in case of cargo. In case of delay complain must be made in 21 days from the date on which baggage was delivered to the carrier. Every such complaint must be made in writing within the stated period.
1/18/2012 18

Case Studies
Case no.1:
Air Carriage - Theft Nuvo Electronics Inc. v London Assurance et al.,
y

loss of 15 cartons of integrated circuits valued at US$1,403,000 carried by air from San Francisco to Toronto. It was placed in the Air Canada cargo warehouse but was never seen again. The Plaintiff consignee commenced this action for the value of the lost cargo against its cargo underwriter and the air carrier.
1/18/2012 19

Contd..
y

The air carrier defended the action arguing that the Plaintiff had not proven the value or the contents of the cargo, and that it was, in any event, entitled to limit its liability pursuant to the Warsaw Convention. The Court found that the air waybill was not in conformity with Article 8 of the Convention; thus according to Article 9, the carrier is not entitled to limit liability. Accordingly, the Court held that there was "wilful misconduct" and that the carrier was not entitled to limit its liability.
1/18/2012 20

Case no.2: Liability of Forwarder Delay Co. of Canada v Sales Corp. Intl. Group Inc., (2005) y This was an application by the Plaintiff freight forwarder to recover the amount of its invoice to the Defendant, its customer.
y

The Defendant claimed a set-off and counter-claim for delay in delivering its goods.
1/18/2012 21

Contd..
y

The Court held that the delay was due to a downsizing of the aircraft by Air Canada and was not the result of any negligence on the part of the Plaintiff. The Court further held that the Plaintiff had not guaranteed a delivery date but had merely given an estimated time of arrival. Finally, the Court held that the Defendant had not proven any damages due to delay.
1/18/2012 22

Thank you..

1/18/2012

23