MARITIME LAW II Contract of Affreightment- It is a contract between the Carrier/Ship owner and the Cargo Owner /Insurer governing

the carriage of goods b sea! It is nor"a## incorporated in the $i## of Lading issued b the Carrier! The first Internationa# #aw re#ating to the carriage of goods b sea% under contracts evidenced b $i## of Lading% is genera## recognised as the &arter Act of '()*% passed b +!S! Congress in '()*! The "ain purpose of the Act was to deter"ine the #iabi#it of the carrier for cargo #oss or da"age suffered during the vo age! At the turn of the centur $ritish I"peria# ,overn"ent and Co""onwea#th nations% inc#uding Austra#ia% Canada and -ew .ea#and instituted Co""issions to en/uire into the "atter! At the reco""endation of the I"peria# Shipping Co""ittee that there shou#d be unifor" #egis#ation throughout the Co""onwea#th% based upon the A"erican &arter Act '()*% the Mariti"e Law Co""ittee of the Internationa# Law Association sub"itted a draft code of ru#es to the fu## conference to be he#d at the &ague in Septe"ber% ')0'% which #ed eventua## to the introduction of the &ague Ru#es! 1ue to the tre"endous growth in sea borne co""erce in ')th centur and prior to the &arter Act% the Ship owners genera## had great freedo" as to the ter" and conditions under which goods "ight be carried!! Most ship owners began to #i"it their stringent #iabi#ities for #oss or da"age to cargo b inserting e2cu#pator c#auses in their $i##s of Lading!% even re#ieving the owners fro" #iabi#it for cargo #oss or da"age arising/resu#ting fro" the ship owners3 own neg#igence or the neg#igence of his Agents or servants or resu#ting fro" un4seaworthiness of the vesse# 5a#"ost co"p#ete i""unit 6% to the detri"ent of the cargo interests! The +nited States Congress fe#t co"pe##ed to act to prevent this abuse of freedo" of contract en7o ed b Ship owners/ Carriers and % in the resu#t% e"erged the &arter Act of '()* which a#so #aid down the basis for &ague Ru#es! The Harter Act of the United States , 1893 : An Act relating to Navigation of Vessels, bills of lading, and to certain obligations, duties and rights in connection with the carriage of property. 4+nder Section ' of the Act it was un#awfu# for the owner of an vesse#% or her "anager% agent or Master% transporting "erchandise or propert fro" or between ports of the +!S!A! and foreign ports% to insert in an $/L an c#ause whereb % he or the wou#d be re#ieved fro" #iabi#it for #oss or da"age arising fro" neg#igence% fau#t or fai#ure in proper #oading% stowage% custod % care% or proper de#iver of propert co""itted to it3s charge! 4+nder Section 0 of the Act it was un#awfu# for an such vesse#% her owner% Master or agent% or "anager to insert to insert in an $/L an covenant or agree"ent whereb the ob#igations of the owner or owners of the vesse# to e2ercise due di#igence% proper# e/uip% "an% provision% and outfit the vesse#% and to "a8e the vesse# seaworth and capab#e of perfor"ing her intended vo age% or whereb the ob#igations of the Master% officers% agents or servants to carefu## hand#e and stow her cargo and to care for and proper# de#iver sa"e% shou#d in an wa be #essened% wea8ened or avoided! 4+nder Section * of the Act has the effect of "a8ing e2e"ptions fro" #iabi#it for cargo #oss or da"age% sub7ect to the ship owner having e2ercised due di#igence to "a8e the ship seaworth ! Such e2e"ptions fro" #iabi#it for #oss or da"age to cargo inc#ude #osses arising fro" dangers of the sea or other navigab#e waters% acts of ,od% or pub#ic ene"ies% or the inherent defect %/ua#it % or vice of the goods carried% or fro" insufficienc or inade/uac of the pac8ing% or sei9ure under #ega# process% or fro" #oss resu#ting fro" an act of the shipper or owner of the goods% his agent or

representative% or fro" saving or atte"pting to save #ife or propert at sea% or fro" an deviation in rendering such service! 4 +nder Section : it was ob#igator dut of the owner or owners% "aster or agent of an vesse# carr ing goods fro" or between ports of the +!S!A! or foreign ports to issue to shippers of an #awfu# "erchandise a $/L or a shipping docu"ent% stating a"ong other things% the identification "ar8s% nu"ber of pac8ages or /uantit % stating whether it3s carrier3s or shipper3s weight and apparent order or condition of such goods% proper# de#ivered to and received b the owner%% "aster% or agent of the vesse# for transportation% and such docu"ent sha## be pri"a facie evidence of the receipt of the goods described therein! 4 +nder Section ; for a vio#ation of an of the provisions of the Act the agent% owner or "aster of the vesse# gui#t of such vio#ation and who refuses to issue on de"and the $/L herein provided for sha## be #iab#e to a fine not e2ceeding two thousand do##ars! The a"ount of the fine and the costs for such vio#ation sha## be a #ien upon the vesse# and such vesse# "a be #ibe#ed in an district court in the +!S!% within whose 7urisdiction the vesse# "a be found! One4ha#f of such pena#t sha## go to the in7ured part and re"ainder to the ,overn"ent of the +!S!A! 4 +nder Section < it was stated that sections ' and : of this Act sha## not app# to the transportation of #ive ani"a#s! Brief history of events eading to the Hag!e "! es: In the o#den da s "erchants wou#d trave# with their goods% the particu#ars of which wou#d be entered in a boo8 or register% a part of the ship3s papers! $ut as the trade deve#oped% the "erchant ceased to acco"pan his goods% and the necessit then arose for a separate docu"ent in the nature of a receipt for the goods but #ater beca"e a docu"ent e"bod ing the ter"s on which the carrier wou#d carr and de#iver the goods at the port of destination! So was born the $i## of Lading which% in future ears% was to deve#op into the negotiab#e docu"ent of present ti"es! With the growth of the sea borne co""erce there arose increasing need for the "eans of transferring the tit#e in the goods before the arrived at the destination! =ro" this in turn arose the practice of transferring the ownership of the goods b endorsing the $i## of Lading to the bu er% and so the $i## of Lading as a negotiab#e instru"ent ca"e into being! 4 $ reason of the freedo" of contract princip#e e2pressed in both the Co""on Law and Civi# Law the ship owners and other carriers of the goods b sea under contracts of carriage evidenced b $/L was virtua## the insurer and responsib#e for an #oss or da"age sustained b the cargo on one hand %the ship owner or carrier cou#d be e2onerated fro" a#"ost an #iabi#it for cargo #oss or da"age b inc#uding in their $/L c#auses e2onerating the" fro" #iabi#it for cargo #oss or da"age and so #i"iting contractua## the strict #iabi#it i"posed upon the" b #aw% on the other hand% depending upon the de"and4supp# situation preva#ent in the sea borne co""erce at the ti"e! 4 The effect of the &arter Act was% a"ong other things% to render nu## and void an c#auses in bi##s of #ading re#ieving the ship owner or the carrier fro" #iabi#it for #oss or da"age to cargo arising fro" neg#igence% fau#t% or fai#ure in the proper #oading% stowage% custod % acre or proper de#iver of the cargo! It a#so rendered nu## and void an c#auses contained in a $/L whereb the ob#igations of the ship owner to e2ercise due di#igence to proper# e/uip% "an% provide and "a8e the ship seaworth and capab#e of perfor"ing her intended vo age% or whereb the ob#igations of the "aster% officers% agents or servants to carefu## hand#e and stow her cargo and to care for and de#iver the sa"e% shou#d in an wa be #essened% wea8ened or avoided! 4 The Act a#so gave the ship owner i""unit fro" #iabi#it for% a"ongst other things% cargo #oss or da"age resu#ting fro" fau#ts or errors in the navigation or "anage"ent of the vesse#% peri#s

of the seas% acts of ,od% pub#ic ene"ies% inherent vice/defects in the goods carried% insufficienc of the pac8aging% deviation for the purpose of saving #ife or propert at sea ! The &ague Ru#es ')0'% drafted b the Mariti"e Law Co""ittee% were not adopted b "an ship owners% as was e2pected% and hence the desired unifor"it in the ter"s and conditions of the contracts of carriage cou#d not be achieved! The pressure b cargo interests to give the Ru#es the force of #aw eventua## #ed to a conference on Mariti"e Law he#d in $russe#s in ')00! As a resu#t of that conference% the &ague Ru#es% as a"ended at $russe#s in ')0* b a Co""ittee appointed b that conference% were adopted as the basis of a draft convention for the unification of certain ru#es re#ating to $/L% which was signed at $russe#s b de#egates fro" "an countries at the Internationa# Convention he#d on 0;th August3 ')0:! In the +!>! the Carriage of ,oods b Sea Act ')0: ca"e into force on '!'!')0;% in respect of contracts of carriage evidenced b $/L covering ship"ents of goods outwards fro" +!>!% but e2c#uding coasta# ship"ents and specia# ship"ents covered b non4negotiab#e receipts! The Co""onwea#th countries fo##owed suit b adopting &ague Ru#es in their nationa# #egis#ation and it was eventua## fo##owed b a#"ost a## the "ariti"e nations of the wor#d! #enera Comments on TH$ HA#U$ "U%$S 19&' : Artic#e III4 The carrier is bound to e2ercise due di#igence in "a8ing the ship seaworth in a## respects and to "a8e the cargo spaces fit% safe and read to receive cargo! The carrier sha## proper# and carefu## #oad% hand#e stow% secure% carr % care for and discharge the goods carried since it is within Carrier3s contro# to do so! The carrier is a#so bound to issue to the shipper a $/L showing identification "ar8s% nos! of pac8ages% weight% description of goods and apparent order and condition of the goods! Such a $i## of #ading sha## be pri"a facie evidence of the receipt b the carrier of the goods described therein! The shipper sha## be dee"ed to have guaranteed to the carrier the accurac at the ti"e of ship"ent of the "ar8s nos!% /uantit and weight% as furnished b hi"! And the shipper sha## inde"nif the carrier against a## #oss% da"ages and e2penses arising or resu#ting fro" inaccuracies in such particu#ars! The right of the carrier to such inde"nit sha## in no wa #i"it his responsibi#it and #iabi#it under the contract of carriage to an third part ! This app#ies "ain# to the /ua#it of the goods% contents and weight of pac8ages as the carrier is not e2pected to chec8 each and ever pac8age! &owever if the carrier has reasonab#e ground for suspecting the nos! of pac8ages or the accurac of description of goods provided b the shipper to represent the goods actua## received% the carrier can verif sa"e through a 7oint surve % if necessar % and if found incorrect the carrier is not bound to show in the bi## of #ading an incorrect detai#s provided b the shipper! &owever once the carrier has issued the $/L the burden of proof% that the goods described in $/L were not actua## shipped on board % rests with the carrier ! Most# the carrier wi## have to prove that the goods had either been short4shipped or shipper or his agent had indu#ged in fraudu#ent practices! The re"ova# of the goods% after the discharge fro" the carrier vesse#% into the hands of the consignee and/or his representative sha## be pri"a facie evidence of the de#iver of goods as described in the $/L! In practice the consignee% if he suspects #oss or da"age to his cargo% sha## give due notice of such #oss/da"age to the carrier or his agent prior to discharge of goods fro" the vesse# or after the discharge within the free da s a##owed b the ?ort Authorities as per the prevai#ing trade practice! $ut in a## cases such notice of #oss/da"age "ust be given prior to the ta8ing de#iver fro" the port of discharge% if ?ort Authorit is acting as the bai#ee of the cargo! -or"a## the carrier is responsib#e for an #oss/da"age sustained b the cargo prior to the discharge fro" the vesse# 5crossing the ship3s rai#6 where after it is the responsibi#it of the ?ort Authorit in whose custod the cargo is discharged! It is co""on practice to conduct a 7oint cargo

surve on #ost/da"aged goods whose findings are binding upon both the ship owner /carrier and the cargo interest! If the cargo interest/their underwriters do not bring #ega# suit within one ear after the de#iver of the goods% or the date when the goods shou#d have been de#ivered% the carrier and the ship sha## be discharged fro" a## #iabi#ities! $/L is nor"a## issued against the surrender of Mate3s receipt or si"i#ar docu"ent! Artic#e I@4 -either the carrier nor the ship sha## be #iab#e for #oss or da"age arising fro" unseaworthiness un#ess caused b want of due di#igence on the part of the carrier to "a8e the ship seaworth in a## respects &owever the burden of proving the e2ercise of due di#igence sha## be on the carrier or person c#ai"ing e2e"ption under this artic#e! $esides the e2cepted peri#s/ris8s the carrier is not #iab#e for #oss or da"age arising fro" the Act% neg#ect% or defau#t of the "aster% "ariner% pi#ot% or the servant of the carrier in the navigation or in the "anage"ent of the ship un#ess the owner is priv to it! A#so if the #oss/da"age arises fro" an other cause arising without the actua# fau#t or privit of the carrier/his agents or servants but the burden of proof sha## be on the person c#ai"ing the benefit of this e2ception! The #iabi#it of the ship owner/carrier or the ship in case of #oss/da"age to the goods sha## be #i"ited to 'AA ?ounds Ster#ing per pac8age or unit% or the e/uiva#ent of that su" in other currenc un#ess the nature and va#ue of such goods have been dec#ared b the shipper before ship"ent and inserted in the $/L! This dec#aration% if e"bodied in the $/L% sha## be pri"a facie evidence% but sha## not be binding or conc#usive on the carrier! The carrier and the cargo interest can b agree"ent fi2 the #i"it of #iabi#it per unit% higher than 'AA ?ounds Ster#ing but not #ess! The 1angerous and ha9ardous cargoes and dec8 cargoes carried at the shipper3s ris8 can at an p#ace be #anded% discharge% 7ettisoned% destro ed or rendered innocuous b the carrier with out co"pensation and the shipper of such goods sha## be #iab#e for a## da"ages and e2penses direct# and indirect# arising fro" such ship"ent! Artic#e @4 A carrier is at #ibert to surrender in who#e or in part a## or an of his rights and i""unities or to increase an of his responsibi#ities and ob#igations provided such surrender or increase sha## be e"bodied in the $/L issued to the shipper! This Convention app#ies on# to negotiab#e $/L and not to charter part un#ess $/L are issued pursuant to such C/?% containing ter"s and conditions of carriage of goods b sea! A#so nothing in this convention prevents the insertion in a $/L of an #awfu# provision regarding genera# average! Artic#e @I B A ship owner/carrier/"aster/agent sha## be at #ibert to enter into an specia# agree"ent provided no $/L is issued and ter"s agreed are e"bodied in a receipt and are not contrar to pub#ic po#ic ! An such agree"ent sha## have fu## #ega# effect! This artic#e sha## app# to ship"ents where the character or condition of the goods or the propert to be carried or the circu"stances% ter"s and conditions under which the carriage is to be perfor"ed are such as reasonab# to 7ustif a specia# agree"ent! Bi of %ading th!s (erforms the three )asic f!nctionsC '6 It is the receipt for the goods received b the carrier! 06 It is the evidence of the contract of carriage between the shipper and the carrier! *6 It is the docu"ent of the tit#e to the ,oods! $vents eading to the amendments to Hag!e "! es 19&' )y (rotoco ado(ted at the Stoc*ho m conference of the Comite +aritime ,nternationa in -!ne 19.3 *no/n as 0is)y "! es : =ro" ti"e to ti"e the Courts were ca##ed upon to interpret the &ague Ru#es in "atters ofD a64dispute between cargo and ship owning interests on the /uestion of #iabi#it arising out of neg#igence of the independent contractor #i8e Stevedores! The Court gave the ru#ing that the

Stevedores were to be regarded as servants of the ship owner! Artic#e I of the @isb Ru#es provided the re"ed b stating that the Carrier "ust e2ercise due care in appoint"ent of and supervision/inspection over the wor8s carried b an independent contractor inc#uding the Stevedores% Ship Repair Eard and even C#assification Societies! &ence Carrier is #iab#e! b64issue of un4seaworthiness arising fro" the neg#igent fai#ure of independent contractor #i8e ship repair ard and giving rise to cargo da"age! The &ouse of Lord he#d that the ship owners were #iab#e for such da"age done to the cargo due to neg#igence of the wor8er of the ship repair ard! The court said that the words F e2ercise of due di#igence to "a8e the ship seaworth G in the &ague Ru#es were adopted fro" the &arter Act '()* and si"i#ar $ritish Co""onwea#th Statutes and those words "ust be given the "eaning attributed to the" prior to &ague Ru#es and ship owner "ust be he#d #iab#e for the neg#igence of independent contractor 5in this case ship repair ard3s fitter6! Re"ed provided b the Artic#e I of @isb Ru#es! c64 ti"e #i"itation for the co""ence"ent of suit b the cargo interests which necessitated so"e changes in the &ague Ru#es with the ob7ect of c#arif ing the Ru#es in this respect! Artic#e I of the @isb Ru#es de#eted the Artic#e * ?ara H of &ague Ru#es and rep#aced b F In an event the carrier and the ship sha## be discharged fro" a## #iabi#it whatsoever in respect of the goods un#ess suit is brought within one ear after de#iver of the goods or the date when the goods shou#d have been de#ivered! Such a period "a % however% be e2tended shou#d the parties so agree! F and% FRecourse actions "a be brought even after the e2piration of the ear provided for in the preceding paragraph if brought within the ti"e a##owed b the #aw of the Court sei9ed of the case! &owever the ti"e a##owed sha## be not #ess than * "onths% co""encing fro" da when the person bringing such recourse action has sett#ed the c#ai" or has been served with process in the action against hi"se#f!G 5Reference here is "ade to the Cargo +nderwriters who "a have sett#ed the c#ai"s of the cargo interests and then ta8e recourse to recover fro" the carrier6! d64 the $/L sha## be pri"a facie evidence of the receipt b the carrier of the goods described therein! Artic#e I of @isb Ru#es provided for b adding F &owever proof to the contrar sha## not be ad"issib#e when the $/L has been transferred to a third part acting in good faith!G This is to protect the interests of innocent consignee/assignee of the goods! $ut the carrier wi## have c#ai" for da"ages against the shipper! e64 /uestion of #i"itation of #iabi#it of the carrier% the Artic#e II of the @isb Ru#es provided for de#etion of Artic#e : ?ara ; of &ague Ru#es ')0: and rep#ace"ent b F -either the carrier nor the ship sha## in an event be or beco"e #iab#e for an #oss or da"age to or in connection with the goods in an a"ount e2ceeding the e/uiva#ent of 'A%AAA franc consisting of H;!; "i##igra"s of go#d of "i##esi"a# fineness )AA% un#ess the nature and va#ue of such goods have been dec#ared b the shipper before ship"ent and inserted in $/L!G and further%G The date of conversion of the su" awarded into nationa# currencies sha## be regu#ated in accordance with the #aw of the Court sei9ed of the case!G @isb Ru#es Artic#e I@ provides for de#etion of Artic#e ) of &ague Ru#es and rep#ace"ent b % F This convention sha## not effect the provisions of an internationa# Convention or nationa# #aw which governs #iabi#it for nuc#ear da"age!G f6 4/uestion of giving e2e"ptions fro" and #i"itation of #iabi#it contained in the $/L and the &ague Ru#es in the event of an action against a servant or agent of the carrier! Artic#e III of @isb Ru#es provided for insertion in the Artic#e I@ of &ague Ru#es BF '!The defences and #i"its of #iabi#it provided for in this convention sha## app# in an action against the carrier in respect of #oss or da"age to goods covered b a contract of carriage whether the action be founded in contract or in tort!% 0! If such an action is brought against a servant or agent of the carrier 5such servant or agent not being a independent contractor6% such servant or agent sha## be entit#ed to avai#

hi"se#f of the defences and #i"its of #iabi#it which the carrier is entit#ed to avai# hi"se#f of the defences and #i"its of #iabi#it which the carrier is entit#ed to invo8e under this Convention !% *! The aggregate of the a"ounts recoverab#e fro" the carrier% and such servants and agents% sha## in no case e2ceed the #i"it provided for in this Convention!G g6 4"a8ing the &ague Ru#es "andator throughout the wor#d! @isb Ru#es Artic#e @ provides for de#etion of Artic#e I of &ague Ru#es and rep#ace"ent b %G The provisions of this convention sha## app# to ever bi## of #ading for carriage of goods fro" one state to another% under which $/L the port of #oading% of discharge or one of the optiona# ports of discharge% is situated in a contracting State% whatever "a be the #aw governing such $/L and whatever "a be the nationa#it of the ship% the carrier% the shipper% the consignee or an other interested person!G $vents eading to the Br!sse s 1rotoco 19.8C Agree"ents over the @isb Ru#es was de#a ed because of the controvers arising out of the proposed a"end"ent to the &ague Ru#es brought about the &ouse of Lords decision in the Manchester Castle case 5neg#igence of the fitter of the Ship repair ard6! A#so with the deve#op"ent of transportation of goods in containers /uestion as to whether container constituted a Gpac8age or unit 2 within the "eaning of the &ague Ru#es for the purpose of deter"ining the #i"itation of #iabi#it of the carrier! It was a#so fe#t to further c#arif the provisions in the &ague Ru#es regarding 3Ti"e #i"itation for bringing about the suit b the cargo interest/underwriter for the cargo #oss/da"age3 and J"onetar #i"itation provisions3 specia## re#ating to provision governing #iabi#it for nuc#ear da"age! TH$ 19.8 B"USS$%S 1"3T3C3% % amending Hag!e "! es and 0is)y "! es, signed at Br!sse s on &3rd of 4e)r!ary 19.8 and came in force on &3rd -!ne, 1955! Additiona# Sa#ient featuresC Artic#e '!'! In origina# &ague Ru#es Artic#e III% ?ara H sub4?ara : #ast sentence has been a"ended to read J This period "a % however% be e2tended if the parties so agree after the cause of action has arisen ! Artic#e 0! Artic#e :% ?ara ; in origina# Ru#es sha## be de#eted and rep#aced b the fo##owingC a6 +n#ess the nature and va#ue of such goods have been dec#ared b the Shipper before ship"ent and inserted in the $/L% neither the carrier nor the ship sha## in an event be or beco"e #iab#e for an #oss or da"age to or in connection with the goods in an a"ount e2ceeding the e/uiva#ent of =rancs 'A%AAA per pac8age or unit or =rancs *A per >i#o of gross weight of the goods #ost or da"aged% whichever is higher! b6 The tota# a"ount recoverab#e sha## be ca#cu#ated b reference to the va#ue of such goods at the p#ace and ti"e at which the goods are discharged fro" the ship in accordance with the contract or shou#d have been so discharged! The va#ue of the goods sha## be fi2ed according to the co""odit e2change price% or% if there is no such price% according to the current "ar8et price% or% if there be no co""odit e2change price or current "ar8et price% b reference to the nor"a# va#ue of goods of the sa"e 8ind and /ua#it ! c6 Where a container% pa##et or si"i#ar artic#e of transport is used to conso#idate goods% the nu"ber of pac8ages or units enu"erated in the $/L as pac8ed in such artic#e of transport sha## be dee"ed the nu"ber of pac8ages or units for the purpose of this paragraph as far as these pac8ages or units are concerned% e2cept as aforesaid such artic#e of transport sha## be considered the pac8age or unit! d 6 A franc "eans a unit consisting of H;!; "i##igra""es of go#d of "i##isi"a# fineness )AA3! The date of conversion of the su" awarded into nationa# currencies sha## be governed b the #aw of the Court sei9ed of the case! e6 -either the carrier nor the ship sha## be entit#ed to the benefit of the #i"itation of #iabi#it

provided for in this paragraph if it is proved that the da"age resu#ted fro" an act or o"ission of the carrier done with intent to cause da"age or rec8#ess# and with 8now#edge that da"age wou#d resu#t! The dec#aration "entioned in sub4paragraph a6 of this paragraph% if e"bodied in the $/L% sha## be pri"a facie evidence% but sha## not be binding or conc#usive on the carrier! f 6 $ agree"ent between the carrier% "aster or agent of the carrier and the shipper other "a2i"u" a"ounts than those "entioned in sub4paragraph a6 of this paragraph "a be fi2ed% provided that no "a2i"u" a"ount so fi2ed sha## be #ess than the appropriate "a2i"u" "entioned in that sub4paragraph! g 6 -either the carrier nor the ship sha## be responsib#e in an event for #oss or da"age to% or in connection with% goods if the nature or va#ue thereof has been 8nowing# "isstated b the shipper in the $/L! Artic#e *! $etween Artic#e : and ; of &ague @isb Ru#es ?ara : is added as underD :! -everthe#ess% a servant or agent of the carrier sha## not be entit#ed to avai# hi"se#f of the provisions of this Artic#e% if it is proved that the da"age resu#ted fro" a act or o"ission of the servant or agent done with intent to cause da"age or rec8#ess# and with 8now#edge that da"age wou#d probab# resu#t! The above is intended to prevent an "isuse of the Law b the agent or servant of the carrier! Artic#e ;! Artic#e 'A of &ague Ru#es and Artic#e @ of @isb Ru#es have been rep#aced b D FThe provisions of this Convention sha## app# to ever $i## of Lading re#ating to the carriage of goods between ports in two different States ifC a6 The $/L is issued in a contracting State% b6 The carriage is fro" a port in a contracting State% or % c6 The Contract contained in or evidenced b the $i## of #ading provides that the ru#es of this Convention or #egis#ation of an state giving effect to the" are to govern the contract whatever "a be the nationa#it of the ship% the carrier %the shipper% the consignee% or an other interested person! Each contractin 4 g State sha## app# the provisions of this Convention to the $s/L "entioned above! This Artic#e sha## not prevent a Contracting State fro" app# ing the Ru#es of this Convention to $s/L not inc#uded in the preceding paragraphs!G Artic#e H! As between the parties to this ?rotoco#% the Convention and the ?rotoco# sha## be read and interpreted together as one sing#e instru"ent! A part to this ?rotoco# sha## have no dut to app# the provisions of this ?rotoco# to $s/L issued in a State which is part to the Convention but which is not part to this ?rotoco#! 5This is to avoid un4necessar disputes between the parties as so"e States have not adopted the $russe#s ?rotoco#6! Artic#e II to Artic#e II@ of the Hag!e Convention dea# with the process and procedures to be fo##owed b the Contracting States with regard to ratification% accession and co"ing into force of the Convention! Artic#e I@ and I@I dea# with procedure for denunciation b an of the Contracting States % of the &ague Convention and for ca##ing a fresh conference to consider possib#e a"end"ents! ?ROTOCOL O= SI,-AT+RE 5process and significance of signing the convention b the Contracting State6 i"p# ing acceptance/ratification/adoption of the Convention b the signator states is incorporated in the end! Artic#e ( of the Br!sse s 1rotoco dea#s with "echanis" for reso#ution of disputes between the two contracting parties! Artic#e ) dea#s with dec#aration for reservation about accepting Artic#e ( and subse/uent with draw# of such reservation% if an % b the Contracting part ! Artic#e 'A to Artic#e '< of the $russe#s

protoco# ')H( dea# with the process and procedures to be fo##owed b the Contracting States with regard to acceptance% adoption% ratification% accession and co"ing into force of the ?rotoco#! It a#so dea#s with procedure for denunciation b an contracting State of the $russe#s ?rotoco#! 6ota) e feat!res of the Carriage of #oods )y Sea Act 1951, re(ea ing C3#SA 19&' and giving effect to Hag!e "! es and Br!sse s 1rotoco 19.87 '! It app#ies to the carriage of goods b sea in ships where the port of ship"ent is a port in the +!>! whether or not the carriage is between ports in two different States within the "eaning of Artic#e I of the Ru#es% and is app#icab#e to the contract of carriage e2press# or b i"p#ication providing for the issue of a $/L or an si"i#ar docu"ent of tit#e! 0! The Ru#es sha## be app#icab#e to dec8 cargo or #ive ani"a#s where the $/L or non4negotiab#e receipt covering such carriage is e2press# "ade sub7ect to the Ru#es! $russe#s ?rotoco# prec#udes dec8 cargo and #ive ani"a#s! *! The Act a#so provides in particu#ar that there sha## not be i"p#ied in an contract for the carriage of goods b sea to which the Ru#es app# b virtue of the Act% an abso#ute underta8ing b the carrier b virtue of the Act% an abso#ute underta8ing b the carrier to provide a seaworth ship% thus abo#ishing the abso#ute warrant of seaworthiness! :! ?rovisions are "ade for the app#ication of the Act to $ritish co#onies and possessions #i8e Is#e of Ma % Channe# Is#ands a#so e2tending to -orthern Is#ands! ;! It contains dec#aration that for the purpose of Artic#e @III of &ague Ru#es a"ended b $russe#s ?rotoco#% section ;A0 of the M!S! Act '(): a"ended b M!S! 5#iabi#it of Ship owners and others 6 Act ');(% entire# e2e"pts ship owners and others in certain circu"stances fro" #iabi#it for #oss of or da"age to goods4 is a provision re#ating to #i"itation of #iabi#it ! $vents eading to Ham)!rg "! es agreed at the United 6ations Conference on the Carriageof #oods )y Sea . 8 13 +arch 19587 The +nited nations Conference on Trade and 1eve#op"ent estab#ished a wor8ing group on Internationa# Shipping Legis#ation which reviewed the econo"ic and co""ercia# aspects of internationa# #egis#ation and practices in the fie#d of econo"ic deve#op"ents% in particu#ar for the deve#oping countries in the fie#d of $i## of #ading! The fo##owing sub7ects were reco""ended for stud D a6 ?rincip#es and ru#es governing bi##s of #adingD i 6 App#icab#e #aw and foru" inc#uding arbitrationD ii 6 conf#ict of #aws between conventions and nationa# #egis#ationD iii6 Responsibi#ities and #iabi#ities in respect of carriage of goodsD iv6 @o age deviation and de#a s! b 6 Stud and ana# sis of standard for"s of docu"entation% inc#uding an ana# sis of co""on ter"sD c6 Trade custo"s and usage re#ating to bi##s of #adingD d6 Third part interests at ports of ca##! This #ist of topics ca##ed for the e2a"ination of four distinct e#e"entsD 4 ,enera# prob#e"s fro" the functioning of internationa# #egis#ation and practices concerning $i## of Lading! 4 The "ore specifica## econo"ic and co""ercia# aspects of the above prob#e"s! 4 The e2tent to which the internationa# #egis#ation and practices confor"ed with the ba#ancing of e/uities between the owners and carriers of cargo% again with the particu#ar concern for the position of the deve#oping countries! and% 4 The specific provisions of the &ague Ru#es and associated nationa# #aws which the +-CTA1

shipping co""ittee found had given rise to difficu#ties! The evidence of the need to revise the &ague Ru#es ca"e fro" severa# sources% inc#uding in response to the en/uiries of the +-CTA1 Secretariat! The "ain grounds for concern wereD 4 +ncertaint in the app#ication of #aws% in re#ation to difficu#ties in estab#ishing where and how the #oss or da"age to goods occurred4 burden of proof4 a##ocation of responsibi#it for #oss or da"age to cargo a## of which was the sub7ect of co"p#aint b both ship4owning and cargo interests! 4 The continued retention in $/L of e2oneration c#auses of doubtfu# va#idit % and the e2istence of restrictive e2e"ption and ti"e #i"itation c#auses in the ter"s under which the cargo is deposited with warehouse and ?ort Authorities! 4 E2e"ption in the &ague Ru#es which are pecu#iar to Ocean carriage% in cases where the #iabi#it shou#d #ogica## be borne b the ocean carrier% such as those which e2e"pt hi" fro" #iabi#it in respect of the neg#igence of his servants and agents in the navigation and "anage"ent of the vesse#% and in respect of the ?eri#s of the seas etc!! 4 The uncertainties about the interpretation of ter"s such as Freasonab#e deviationG% Fdue di#igenceG Fproper# and carefu## G% Fin an eventG% Fsub7ect toG! 4 The a"biguities surrounding the sea worthiness of vesse#s for carriage of goods! 4 The unit #i"itation of #iabi#it ! 4 Kurisdiction and arbitration c#auses! 4 The insufficient #ega# protection for cargoes with specia# characteristics that re/uire specia# stowage% ade/uate venti#ation etc! and cargoes re/uiring dec8 ship"ent! 4 C#auses which per"it carriers to divert vesse#s% and to transship or #and the goods short of or be ond the port of destination specified in the $/L at the ris8 and e2pense of the cargo owners! 4 C#auses which entit#e carriers to de#iver goods into the custod of shore custodians on ter"s which "a8e it a#"ost i"possib#e to obtain sett#e"ents of cargo c#ai"s fro" either the carrier or the warehouse! 4 The opinion was for"ed that the &ague Ru#es provided an e2cessive nu"ber of opportunities for the ship owner to #ega## avoid #iabi#it for #oss of cargo and so to re7ect the c#ai" "ade b the cargo owner! A#so unit #i"itation for #iabi#it for #oss or da"age to cargo was #i"ited to a fi2ed a"ount irrespective of the va#ue of the goods which the shippers were "ost# re#uctant to dec#are fearing hi8e in freight charges! 4 Subse/uent to the strong need fe#t to either revise &ague Ru#es or to estab#ish a new Internationa# Convention% a wor8ing group estab#ished b the +nited -ations Co""ission on Internationa# Trade Law 5+-CITRAL6 produced a draft convention on the carriage of goods b sea! The Conference was he#d at &a"burg in March ')<( when the new Ru#es% 8nown as F&a"burg Ru#esG% were adopted which wi## co"e into force on the 'st da of the "onth fo##owing the e2piration of one ear fro" the date of the deposit of the 0Ath instru"ent of ratification% acceptance! approva# or accession! 4 Sa#ient features of &a"burg Ru#es ')<( Anne2 I4 +nited -ations Conventions Convention of the Carriage of ,oods $ Sea ')<(% signed at &a"burg on the *'st "arch ')<(! ?art I LL ,enera# ?rovisions Artic#e '% 1efinitionsD ?ara 0 BJActua# Carrier3 "eans an person who actua## perfor"s even a part of the carriage! ?ara ; B F,oodsG a#so inc#udes #ive ani"a#s and even containers% pa##et or si"i#ar artic#e of transport if supp#ied b the shipper! ?ara (4FWritingG inc#udes% inter a#ia% te#egra" and te#e2!

Artic#e 0% Scope of App#ication4 The provisions of this convention are app#icab#e to a## contracts of carriage between 0 states% if the port of #oading or of discharge or of optiona# discharge or port of issuance of $/L is #ocated in a contracting State! The convention is not app#icab#e to charter part contracts un#ess $/L is issued pursuant to a C/? and $/L governs the re#ation between a carrier and the ho#der of $/L! ?art II LL Liabi#it of the Carrier Artic#e :% ?eriod of responsibi#it D ?ara 04 The carrier is dee"ed to be in4charge of the goods fro" the ti"e he has ta8en over the goods fro" the shipper or his representative/agent or an Authorit or *rd part to who"% pursuant to #aw or regu#ations app#icab#e at the port of #oading% the goods "ust be handed over for ship"ent% unti# the ti"e he has de#ivered the goods b handing over to the consignee% or b p#acing the" at the disposa# of the consignee in accordance with the contract or with the #aw% or with the usage of the particu#ar trade or to an Authorit or other *rd part to who"% pursuant to #aw or regu#ations app#icab#e at the port of discharge% the goods "ust be handed over! Artic#e ;% $asis of Liabi#it % ?ara '4 The carrier is not on# #iab#e for #oss or da"age to goods but a#so fro" #oss resu#ting fro" de#a in de#iver % in the occurrence which caused the #oss or de#a too8 p#ace whi#e the goods were in his charge un#ess the carrier proves that he % his servants or agents too8 a## "easures to avoid the occurrence and it3s conse/uences! ?ara 0 M *4 1e#a in de#iver has to be deter"ined on the basis of ti"e of de#iver e2press# agreed upon b the parties or of a reasonab#e ti"e re/uired of a di#igent carrier% having regard to the circu"stances of the case! The cargo interest can "a8e a c#ai" for #oss of the goods if the have not been de#ivered within HA consecutive da s after the e2pir of such ti"e for de#iver ! ?ara : B The carrier is #iab#e for #oss or da"age to the goods or de#a in de#iver caused b fire if the c#ai"ant can prove i6 that the fire arose fro" the fau#t/neg#ect of the carrier/his servants/agents% and/or ii 6 that the #oss or da"age arose fro" the fau#t/neg#ect of the carrier/his servants/agents in ta8ing a## reasonab#e "easures to put out the fire and to avoid/"itigate the conse/uences! In case of fire on board the ship affecting the goods% the carrier or the c#ai"ant can conduct independent surve % as per the prevai#ing shipping practice% into the cause and circu"stances of the fire and a cop of the surve report sha## be "ade avai#ab#e on de"and to the carrier and the c#ai"ant! ?ara ;4 The carrier is not #iab#e for #oss/da"age or de#a in de#iver of #ive ani"a#s% resu#ting fro" an specia# inherent ris8s in that 8ind of carriage un#ess it resu#ted fro" fau#t/neg#ect on the part of the carrier/his servants /agents! ?ara H M <4 The carrier is not #iab#e% e2cept in ,enera# average% if #oss/da"age/de#a resu#ted fro" "easures to save #ife or fro" reasonab#e "easures to save propert at sea! Where fau#t/neg#ect on the part of the carrier/his servants/agents co"bines with another cause to produce #oss/da"age/de#a the carrier is #iab#e on# for #oss/da"age attributab#e to such fau#t/neg#ect provided he can prove the a"ount of #oss/da"age/de#a not attributab#e thereto! Artic#e H% Li"its of Liabi#it % It is #i"ited to an a"ount e/uiva#ent to (*; units of account per pac8age or other shipping unit or 0!; units of account per >g of ,ross weight of the goods #ost/da"aged% whichever is higher! The #iabi#it of the carrier for de#a in de#iver is #i"ited to an a"ount e/uiva#ent to 0 N ti"es the freight pa ab#e for the goods de#a ed% but not e2ceeding the tota# freight pa ab#e! Artic#e (% Loss of right to #i"it responsibi#it 4 The carrier/his servants/agents are not entit#ed to the benefit of #iabi#it if it is proved that the #oss/da"age /de#a resu#ted fro" an act or o"ission of the carrier done with the intent to cause such #oss/da"age/de#a % or rec8#ess# and with 8now#edge that such #oss% da"age or de#a wou#d probab# resu#t! Artic#e )% 1ec8 cargo4 A carrier "ust insert in the $/L or other docu"ent evidencing the contract of carriage b sea% a state"ent that the goods sha## or "a be carried on dec8 as agreed between

the carrier and the shipper! Otherwise the carrier is not entit#ed to invo8e such an agree"ent against consignee/*rd part who has ac/uired the $/Lin good faith! If the goods are carried on dec8 contrar to the agree"ent or to the usage of the particu#ar trade or as re/uired b statutor ru#es or regu#ations% the carrier is #iab#e for #oss/da"age/de#a in de#iver resu#ting fro" the carriage on dec8! Carriage of goods on dec8 contrar to e2press agree"ent for under dec8 carriage is dee"ed to be an act or o"ission of the carrier! Artic#e 'A% Liabi#it of the carrier and actua# carrier4 The carrier re"ains responsib#e for the entire carriage according to the provisions of this convention% inc#uding the carriage perfor"ed b the actua# carrier % for the acts and o"ission of the actua# carrier/his servants/agents within the scope of their e"p#o "ent! An specia# agree"ent under which the carrier assu"es additiona# ob#igations or waives certain rights conferred b the convention bind the carrier to such ob#igations /waivers ! Where and to the e2tent both the carrier and the actua# carrier are #iab#e% their #iabi#it is 7oint and severa#% sub7ect to the #i"its of #iabi#it ! Artic#e ''% Through Carriage4 Where a contract of carriage b sea provides e2p#icit# that a specified part of the carriage covered b the said contract is to be perfor"ed b a na"ed person other than the carrier% the contract "a a#so provide that the carrier is not #iab#e for #oss% da"age or de#a in de#iver caused b an occurrence ta8ing p#ace whi#e the goods were in the charge of the actua# carrier% the burden of proof resting upon the carrier! ?art III 4 Liabi#it of the Shipper Artic#e '04 ,enera# Ru#e4 The shipper/his servants/agents are not #iab#e for #oss sustained b the carrier/actua# carrier or for da"age sustained b the ship% un#ess such #oss or da"age was caused b the fau#t or neg#ect of the shipper/his servants/agents! Artic#e '*% Specia# ru#es on dangerous goods4 Where the shipper hands over dangerous goods to the carrier/actua# carrier the shipper "ust infor" hi" of the dangerous character of the goods and necessar precautions to be ta8en! If the shipper fai#s to do so and carrier/actua# carrier does not have 8now#edge of their dangerous nature the shipper is #iab#e to the carrier/actua# carrier for the #oss suffered fro" the ship"ent of such goods% and the goods "a at an ti"e be un#oaded% destro ed or rendered innocuous% as the circu"stances "a re/uire% without pa "ent of co"pensation% e2cept where there is an ob#igation to contribute in genera# average! ?art I@ B Transport 1ocu"ents The $/L "ust inc#ude the fo##owing particu#arsD 4 the port of #oading and the date on which the goods were ta8en over b the carrier at that port D 4 the nos! of $s/L % if "ore than oneD 4 the freight to the e2tent pa ab#e b the consignee or other indication that freight is pa ab#e b hi"D 4 a state"ent that the carriage is sub7ect to the provisions of this convention which nu##if an stipu#ation derogating there fro" to the detri"ent of the shipper or the consigneeD 4 the state"ent% if app#icab#e% that the goods sha## or "a be carried on dec8D 4 the date or period of de#iver of the goods at the port of discharge if e2press# agreed upon between the partiesD and% 4 an increased #i"it or #i"its of #iabi#it where agreed to ! Artic#e 'H% $i## of LadingC Reservations and evidentiar effect4 If the carrier has reasonab#e grounds to suspect that particu#ars contained in the $/L do not accurate# representing the goods actua## #oaded or he has n o reasonab#e "eans of chec8ing such particu#ars % the carrier "ust insert in the $/L a reservation specif ing these inaccuracies% grounds of suspicion or the absence of

reasonab#e "eans of chec8ing! Otherwise the carrier is dee"ed to have noted on the $/L that the goods were in apparent good condition! E2cept for particu#ars in respect of which and to the e2tent to which a reservation has been entered% a $/L is pri"a facie evidence of ta8ing over or #oading b the carrier of the goods described therein and an proof to the contrar is not ad"issib#e if the $/L has been transferred to a *rd part inc#uding a consignee who has acted in good faith! A#so if the $/L does not indicate 3freight pa ab#e3 or Jde"urrage incurred at the #oad port pa ab#e b the consignee3 is pri"a facie evidence that no freight or de"urrage is pa ab#e b hi" and no proof to the contrar is ad"issib#e when $/L has been transferred to *rd part inc#uding a consignee! An #etter of inde"nit or guarantee issued b the shipper is va#id as against the shipper un#ess the carrier or his representative% b o"itting to insert the reservation in the $/L% intends to defraud a *rd part inc#uding a consignee who acts in good faith and the carrier has no right of inde"nit fro" the shipper! A#so in case of intended fraud% the carrier is #iab#e without the benefit of #i"itation of #iabi#it % for the #oss incurred b the *rd part % inc#uding the consignee! ?art @ C#ai"s and Actions Artic#e ')% -otice of #oss% da"age or de#a 4 -otice b the consignee "ust be given in writing to the carrier not #ater than the wor8ing da after the da when the goods were handed over to the Consignee! Where the #oss or da"age is not apparent% notice in writing "ust be given within '; consecutive da s after the da when the goods were handed over to the consignee ! -otice in writing need not be given of #oss/da"age if the state of the goods at the ti"e the were handed over to the consignee% has been the sub7ect of 7oint surve or inspection! -otice for #oss resu#ting fro" de#a in de#iver "ust be given within HA consecutive da s after the da when the goods were handed over to the consignee! -otice can be given to the carrier/actua# carrier or person acting on their beha#f% who de#ivers the goods! =or an #oss/da"age suffered b the carrier/actua# carrier due to fau#t/neg#ect of the shipper/his servants/agents% notice "ust be given in writing within )A consecutive da s after the occurrence of such #oss/da"age due to fau#t/neg#ect of the shipper/his servants/agents! Artic#e 0A% Li"itation of Actions4 Action for #oss or da"age to goods under this convention is ti"e barred if 7udicia# or arbitra# proceedings have not been instituted within a period of two ears/! The #i"itation period co""ences on the da on which the carrier has de#ivered the goods% or shou#d have been de#ivered and co""ence"ent da is not inc#uded in the period! &owever that period can be e2tended b a dec#aration in writing b the defendant to the c#ai"ant% during the running of the period and can be further e2tended b further such e2tensions! An action for inde"nit b a person he#d #iab#e "a be instituted even after the 0 ear #i"itation period % if instituted within the ti"e a##owed b the #aw of the State where proceedings are instituted! The ti"e a##owed sha## be not #ess than )A da s fro" the da when the person instituting such action has sett#ed the c#ai" or has been served with process in the action against hi"se#f! Artic#e 0:% genera# Average4 Sub7ect to the #i"itation of action % this convention re#ating to the #iabi#it of the carrier for #oss of or da"age to the goods a#so deter"ine whether the consignee "a refuse contribution in genera# average and the #iabi#it of the carrier to inde"nif the consignee in respect of an such contribution "ade or an sa#vage paid!