Transcript Document 7424824

TRANSPORTATION OF
GOODS
• Introduction
– Conventions
• Hague Rules
• Air Carriage
• Marine Insurance
HAUGE RULES
• Approach
– Differences Between the Rules
– Elements of the Rules
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Coverage Under the Rules
Seaworthiness
Per Package Limitation
Material Deviation
Exemptions
Misdelivery
Hague Rules
• Differences Among the Rules
– Harter Act of 1893-prohibited carriers from eliminating
liability for negligence.
– Applies in US-port to port
– Hague Rules-1924-basic rules under Carriage of Goods
by Sea Convention
– Hague Visby-limited liability significantly increased
– Hamburg Rules-pro-shipper-broader exculpatory
clauses and carrier limited liability automatically
extended to servants and third party contractors
HAGUE RULES
• Coverage-COGSA only applies to shipments
evidenced by bill of lading
– Common Carrier or Charter Party
– Bill of Lading must specify time-warehouse or marine extension
– Himalaya Clause-extends protection third parties-servant,
stevedores and marine terminal operators.
Any Company working in conjunction with the common carrier
hired to supervise the storage of the cargo.
COGSA extends per package limitation of common carrier for
$500 (Hague) to $1000 (Hague Visby)
Limited Liability does not extend to losses due to no due diligence,
material deviation or no fair opportunity to raise value above per
package limitation
HAGUE RULES-COSGA
• Due Diligence in preparation and inspection
of the ship in making ship seaworthy
• Ship used must be appropriate for the type of
carriage
• Ship must be properly equipped for the reception,
carriage and preservation of the goods.
• Common carrier must man the vessel with a
competent crew properly trained to operate vessel
• Carrier must properly and carefully load, handle and
stow goods
HAGUE RULES-COGSA
• Per Package Limitation-$500 per package
or customary freight unit (cfu)
– What is “package”?
– Where mode of packaging conceals the identity of the
goods being shipped
» Open Goods-designation of the goods
» Quantification-number of goods-each unit described
on bill of lading
» Must be clear is describing goods on bill of ladingambiguity in favor of shipper
» Hamburg Rule from warehouse to warehouse
HAGUE RULES-COGSA
• Per Package Limitation
– Determination of Value
• Commodity Exchange Price
• Current Market Price
• Normal Value of Goods of the Same Kind and
Quality
HAGUE RULES-COGSA
• Material Deviation
– Above Deck Carriage
• Containerization permitted
• Bill of lading has incorporated clause paramount to
address above deck containers
– Unreasonable Route Change-carrier does not
use customary route
• Defense is change due to emergencies
HAGUE RULES-COGSA
• COGSA EXEMPTIONS (17)
– Neither the carrier nor the ship shall be
responsible for loss or damage arising from:
• Neglect or default of master or employees in the
navigation or in management of ship
• Fire
Seizures
• Perils of Sea
Quarantine
• Act of God
Act or Omission by
shipper
• Act of Public Enemies
Strikes
HAGUE RULES-COGSA
• EXEMPTIONS CONTINUED:
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Riots
Saving Lives
Defect in Goods
Insufficiency of Packing
Insufficiency of Marking
Latent Defects
Cause arising without actual fault or negligence of
carrier
HAGUE RULES-COGSA
• EXEMPTIONS-CONTINUED
– Q-Clause-grants the carrier a general exemption
for any damages that arise from a cause that
was not the “actual fault” of the carrier or those
of the agents or servants of the carrier.
– If the loss of damage was not cause by one of
the enumerated exemption and is not
susceptible to Q-clause the per package liability
limitation applies.
HAGUE RULES
• Fair Opportunity to Raise Value of
Shipment
– Must give shipper opportunity to raise per
package limitation
– Insert provision on bill of lading
• Containerization
– Multimodal Transportation-containers are not
package. Units in Containers are package
HAGUE RULES
• Misdelivery of Goods
– Presumption in favor of Shipper
– Fraud in Documents
• Use International Chamber of CommerceInternational Maritime Bureau
• Party delivering bill of lading provide a letter of
indemnity or guarantee from commercial bank
WARSAW CONVENTION
• Freight Forwarders and Multi-modal
Transportation
• Through Bill of Lading
• Air Way Transportation- Warsaw
Convention
– Similar to Hague Convention for Sea
Transportation-due diligence, material
deviation and per package limitation
• Two Year Statute of Limitation
MARINE INSURANCE
• Comprehensive Liability Coverage
• Provides Legal Services to Defend
• Comprehensive
• Marine Cargo Insurance
– Causes of Loss-all risks clauses or perils only
clauses
– Amount of Coverage-percentage
– Duration of Coverage-marine extension clauses
MARINE INSURANCE
• Marine Insurance
– General Averages-when a portion of a ship’s
cargo is sacrificed to save the rest from real or
substantial peril, each owner of property saved
contributes ratably to make up the loss of those
whose property is sacrificed