Donald
Active Member
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Hi guys,
If a cargo container fall into the sea, who will be liable to the loss or damage ?
In case we ship without ocean cargo insurance :
There are 03 International convention about international carriage of goods by sea :
+ Brussels Convention 1924 (Hague rules) ,
+ Hague- Visby rules 1968
+ Hamburg 1978.
Almost Carrier apply Hague rules or Hague- Visby rules into their Bill of Lading because 02 conventions give them 17 exemptions for responsible for loss or damage cargo : fire, Act of God, …etc…( see Article IV in Brussels Convention 1924) .
One, the carrier would not be responsible for your portion of general average. Secondly, the carrier is only responsible for loss or damage when it is due to their own negligence while the goods are in their care, custody or control. And lastly, the monetary liability of carriers is often very limited.
In case Carrier has to responsible for loss or damage cargo. The Limit of Liability per cargo unit declared in B/L :
- Hague rules : 100 GBP/ package or unit ( more detail in Article IV)
- Hague- Visby rules: 666.67 SDR/ package or unit or 2 SDR/kg ( more detail in Article VI) Where a container, pallet or similar article of transport is used to consolidate goods, the number of packages or units enumerated in the bill of lading as packed in such article of transport shall be deemed the number of packages or units for the purpose of this paragraph as far as these packages or units are concerned. Except as aforesaid such article of transport shall be considered the package or unit.
- Hamburg 1978 : 835 SDR/ cargo unit or 2.5 SDR/kg
SDR : Special Drawing Rights – check in IMF website.
So, If we ship a high value cargo or high risk to damage, pay for insurance is recommended.
If a cargo container fall into the sea, who will be liable to the loss or damage ?
In case we ship without ocean cargo insurance :
There are 03 International convention about international carriage of goods by sea :
+ Brussels Convention 1924 (Hague rules) ,
+ Hague- Visby rules 1968
+ Hamburg 1978.
Almost Carrier apply Hague rules or Hague- Visby rules into their Bill of Lading because 02 conventions give them 17 exemptions for responsible for loss or damage cargo : fire, Act of God, …etc…( see Article IV in Brussels Convention 1924) .
One, the carrier would not be responsible for your portion of general average. Secondly, the carrier is only responsible for loss or damage when it is due to their own negligence while the goods are in their care, custody or control. And lastly, the monetary liability of carriers is often very limited.
In case Carrier has to responsible for loss or damage cargo. The Limit of Liability per cargo unit declared in B/L :
- Hague rules : 100 GBP/ package or unit ( more detail in Article IV)
- Hague- Visby rules: 666.67 SDR/ package or unit or 2 SDR/kg ( more detail in Article VI) Where a container, pallet or similar article of transport is used to consolidate goods, the number of packages or units enumerated in the bill of lading as packed in such article of transport shall be deemed the number of packages or units for the purpose of this paragraph as far as these packages or units are concerned. Except as aforesaid such article of transport shall be considered the package or unit.
- Hamburg 1978 : 835 SDR/ cargo unit or 2.5 SDR/kg
SDR : Special Drawing Rights – check in IMF website.
So, If we ship a high value cargo or high risk to damage, pay for insurance is recommended.
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