Insurance Obligations On Sale of Goods In an export transaction, the sale of goods contract should provide that the costsof and duty to effect insurance during transit shall be paid for and undertaken by either the seller or buyer, as the case may be. The INCOTERMS may define who is to effect and pay the cost of insurance. If goods […]
Carriage of Goods by Sea The contract of carriage may be a contract for the transport of the goods by sea,air or land or a combination. Multi–modal transport refers to combined methods of transport. Most modes of transport are governed by international Conventions. The Hague / Hague Visby rules relate to bills of lading in sea transport. The Warsaw Convention […]
Contract of Carriage and Bill of Lading The contract of carriage is entered between the carrier and the shipper. The initial contract for carriage may be verbal or may be set out in a short booking note. Commonly, the cargo space will have been booked by telephone, email or letter. The preliminary contract may be acknowledged by both the shipper […]
Sea Waybill Traditionally, the contract of carriage contemplated a bit of lading being issued. In modern times, other documents have emerged which replicate some of the bill of lading’s functions. The sea waybill is in the nature of a non-negotiable bill of lading. It proves the terms of the contract but does not transfer title to the goods. The sea […]
Common Law Carriers Historically a carrier might be a “common carrier”. The liability of a common carrier at common law is absolute, subject only to limited defences; an act of the enemy, an act of God, inherent vice of the goods and fault of the consignor. A carrier might carry goods under a series of contracts agreed on commercial terms. […]
Duties of the Carrier The obligations of the carrier are governed by the contract and the Hague-Visby or more modern rules, depending on the Convention which governs the carriage. The shipper must make space on the designated vessel available. The contract may provide that the shipper has no responsibility if the vessel is already full. In this case, any prepaid […]
Hague Visby Application of Rules The Hague Visby Rules represent the minimum mandatory contractual obligations on the part of the carrier. The rules cap liability and define the terms of the permissible defences. Attempts to contract beyond the terms of the rules by purporting to contract for less than the minimum duties or more than the “maximum” defences, are void […]
Hamburg Rules Scope The Hague and Hague Visby Rules date back, in their most recent revision to the late 1960s. They are somewhat outdated in the context of modern transportation methods, in particular, multimodal carriage. More modern rules are likely to replace the rules, subject to the ratification by a sufficient number of States in due course. The Hamburg Rules […]
The Rotterdam Rules Scope The Rotterdam Rules were prepared by the UN Commission on International Trade Law UNICITRAL. It was adopted by the Legal Committee of the General Assembly of the United Nations in 2008. They allow for electronic documentation and multimodal carriage involving sea carriage. A contract of carriage is one by which the carrier undertakes to carry goods […]
Transfer of Rights to Buyer at Common Law Under both the common CIF and FOB type contracts for the sale and carriage of goods, the contract of carriage is usually entered by the seller. However, the property in the goods usually passes to the buyer at or before delivery, so that the buyer is the party who will suffer loss […]
Carrier to deliver Goods Unless otherwise agreed in the contract of carriage, the shipper must deliver the goods ready for carriage. In any event, the shipper must deliver the goods in such condition that they will withstand the intended carriage, including their loading, handling, stowing, lashing and securing, and unloading, and that they will not cause harm to persons or […]
International Conventions The carriage of goods by sea is `commonly governed by the Hague-Visby rules. The Hague-Visby rules and their more modern substitutes, the Hamburg and Rotterdam Rules emerged in the context of the carriers’ power to dictate the terms and conditions of carriage. Until the beginning of the 20th century, carriers could impose almost any terms they wanted, thereby […]
Charter of Whole Ship Where the whole or substantial part of the vessel is used, as may be the case with bulk cargo, there may be a charterparty. This is in effect a lease or contract for the hire of the ship. The charterer pays freight to the shipowner as the consideration. The charterer must discharge the vessel within a […]