Functions of a bill of lading

in the U.S. as the Carriage of Goods at Sea Act (COGSA) in 1936 Scope of COGSA from ports of the United States in foreign trade Private carriage: The provisions of this chapter shall not be applicable to charter parties; but if bills of lading are issued in the case of a ship under a charter party, they shall comply with the terms of this chapter. (COGSA 5) Even if a bill of lading is not issued, COGSA can be extended to charter parties by agreement Extension of COGSA by agreement

working on behalf of the carrier -based transport Hague/COGSA: Duties of the carrier

(1) The carrier shall be bound to exercise due diligence to (a) Make the ship seaworthy; (b) Properly man, equip, & supply the ship; (c) Make the holds, refrigerating & cooling chambers, & all other parts of the ship fit & safe .... (2) The carrier shall properly & carefully load, handle, stow, carry, keep, care for, & discharge the goods carried Hague/COGSA: Voiding of contractual limitations of liability

*** (8) Limitation of liability for negligence Any clause, covenant, or agreement in a contract of carriage relieving the carrier or the ship from liability for loss or damage to or in connection with the goods, arising from negligence, fault, or failure in the duties and obligations provided in this section, or lessening such liability otherwise than as provided in this chapter, shall be null and void and of no effect ....Hague/COGSA: Defences

1. Fault of the carrier in the navigation or management of the vessel 2. Harms arising from independent causes, such as perils of the sea, Acts of God, war, riot, strike, quarantine, or acts of public enemies 3. Harm resulting from an inherent vice in the goods 4. Harm resulting from fault of the shipper in packaging or labeling the goodsHague/COGSA: Statutory liability limits

larger ceiling can be agreed) Brussels Convention: 100 per package or unit COGSA: $500 per package or, if not packaged, per customary freight unit [4(5)]Hague / Visby Rules

opted in the United States Hamburg Rules

United Nations

favorable to shippers

ceiling on liability

Several countries have signed it (including the U.S.), but only Spain has ratified it so far Steel Coils v. M/V Lake Marion (p.112)COGSAs burden shifting 1. Shipper must establish a prima facie case by showing the cargo was loaded w/o damage and discharged w/ damage. (Bill of lading is key.) 2. A clean bill shifts the burden to carrier to show due diligence, or otherwise prove one of the 17 Hague Defenses. 3. If carrier does so, the burden shifts back to shipper to show that even if a defense applies in part carriers negligence contributed to the loss. 4. If shipper proves that carriers negligence contributed, the burden shifts back to carrier to apportion between the causes. Hypos -7 (p. 107) -8 (p. 112)Marine insurance

cover of the Institute Cargo Clauses (Institute of London Underwriters) in this area Institute Cargo Clause C

ison Institute Cargo Clause A

vice of the subject matter

l Fire Ins. v. Mirasco (p.125)