A sort of fundamental principle
existed in maritime commerce " that between the shipowner and
marine insurance underwriters the goods owner ought to be kept
harmless against all losses, except those of the market. However
t=by the end of last century ocean carriers had managed to limit
their liability for the carriage of goods by sea to a degree that
finally became unacceptable to cargo interests. This led to the
Harter Act being passed in the US. However, this law did not end
the controversy which results in the International Convention for
the Unification of Certain Rules of Law Relating to Bills of Lading
in Brussels in August 1924, known as HAUGE RULE.
This rule was welcomed by most
shippers and consignees although they were adopted against the
wishes of shipowners.
Hague Rule entered into force in
1931. Today there are 77 Contracting Parties. However a major of
trading nations and territories like Bangladesh, Canada Chile China
Greece India Indonesia Iraq, and many more are not contracting
parties to Hague Rules.
Later in 1968 The Hague Rules as
Amended by the Brussels Protocol as The Hague-Visby Rules.
Today,s Commercial and Economic
Aspects of Hague_Visby Rule are:-
Following are the rules and
regulations one party need to follow under the maritime sector
under Hagua Rule for the commerce of the goods in implementation of
the bill of landing:-
- 1. The carrier shall be bound
before and at the beginning of the voyage to exercise due diligence
to:(a) Make the ship seaworthy;(b) Properly man, equip and supply
the ship;(c) Make the holds, refrigerating and cool chambers, and
all other parts of the ship in which goods are carried, fit and
safe for their reception, carriage and preservation.
- Subject to the provisions of
Article IV, the carrier shall properly and carefully load, handle,
stow, carry, keep, care for, and discharge the goods carried.
- After receiving the goods into his
charge the carrier or the master or agent of the carrier shall, on
demand of the shipper, issue to the shipper a bill of lading
showing among other things: (a) The leading marks necessary for
identification of the goods as the same are furnished in writing by
the shipper before the loading of such goods starts, provided such
marks are stamped or otherwise shown clearly upon the goods if
uncovered, or on the cases or coverings in which such goods are
contained, in such a manner as should ordinarily remain legible
until the end of the voyage. (b) Either the number of packages or
pieces, or the quantity, or weight, as the case may be, as
furnished in writing by the shipper. (c) The apparent order and
condition of the goods.
- Provided that no carrier, master or
agent of the carrier shall be bound to state or show in the bill of
lading any marks, number, quantity or weight which he has
reasonable ground for suspecting not accurately to represent the
goods actually received, or which he has had no reasonable means of
checking. Such a bill of lading shall be prima facie evidence of
the receipt by the carrier of the goods as therein described in
accordance with paragraph 3 (a), (b) and (c). However, proof to the
contrary shall not be admissible when the bill of lading has been
transferred to a third party acting in good faith.
- The shipper shall be deemed to have
guaranteed to the carrier the accuracy at the time of shipment of
the marks, number, quantity and weight, as furnished by him, and
the shipper shall indemnify the carrier against all loss, damages
and expenses arising or resulting from inaccuracies in such
particulars. The right of the carrier to such indemnity shall in no
way limit his responsibility and liability under the contract of
carriage to any person other than the shipper.
- Unless notice of loss or damage and
the general nature of such loss or damage be given in writing to
the carrier or his agent at the port of discharge before or at the
time of the removal of the goods into the custody of the person
entitled to delivery thereof under the contract of carriage, or, if
the loss or damage be not apparent, within three days, such removal
shall be prima facie evidence of the delivery by the carrier of the
goods as described in the bill of lading.
- The notice in writing need not be
given if the state of the goods has, at the time of their receipt,
been the subject of joint survey or inspection.
- Subject to paragraph 6bis the
carrier and the ship shall in any event be discharged from all
liability whatsoever in respect of the goods, unless suit is
brought within one year of their delivery or of the date when they
should have been delivered. This period, may however, be extended
if the parties so agree after the cause of action has arisen.
- In the case of any actual or
apprehended loss or damage the carrier and the receiver shall give
all reasonable facilities to each other for inspecting and tallying
the goods.6 bis. An action for indemnity against a third person may
be brought even after the expiration of the year provided for in
the preceding paragraph if brought within the time allowed by the
law of the Court seized of the case. However, the time allowed
shall be not less than three months, commencing from the day when
the person bringing such action for indemnity has settled the claim
or has been served with process in the action against himself.
- After the goods are loaded the bill
of lading to be issued by the carrier, master, or agent of the
carrier, to the shipper shall, if the shipper so demands be a
'shipped' bill of lading, provided that if the shipper shall have
previously taken up any document of title to such goods, he shall
surrender the same as against the issue of the 'shipped' bill of
lading, but at the option of the carrier such document of title may
be noted at the port of shipment by the carrier, master, or agent
with the name or names of the ship or ships upon which the goods
have been shipped and the date or dates of shipment, and when so
noted, if it shows the particulars mentioned in paragraph 3 of
Article III, shall for the purpose of this article be deemed to
constitute a 'shipped' bill of lading.
- 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, goods
arising from negligence, fault, or failure in the duties and
obligations provided in this article or lessening such liability
otherwise than as provided in these Rules, shall be null and void
and of no effect. A benefit of insurance in favour of the carrier
or similar clause shall be deemed to be a clause relieving the
carrier from liability.