Law on transportation notes
BOL as a RECEIPT
Bill of Lading (BOL) is a written acknowledgement, signed
by the master of a vessel or other authorized agent of the
carrier, that he has received the described goods from the
shipment, to be transported on the expressed terms, to the
described place of destination, and to be delivered there to
the designated consignee or parties.
KINDS OF BILL OF LADING
NoNe CuRe Fo ClePTOS
1. Negotiable or non-negotiable
 BOL that contains word of negotiability is
negotiable
2. Clean bill of lading and Foul Bill of Lading
 Clean bill of lading- does not contain any notation
indicating DEFECTS in goods.
 Foul Bill of Lading- contains such notation
3. Spent Bill of Lading
 If the goods were delivered but the BOL
was not returned
4. Through Bill of Lading
 Issued by a carrier who is obliged to
USE THE FACILITIES of the other
carriers and his own for the purpose of
transporting goods from the seller to the
buyer.
 BOL which is HONORED by the second
and other interested carriers who do not
issue their own lading.
5. On Board Bill v. Received for Shipment Bill
 On Board Bill- is one in which it is stated
that the goods have been RECEIVED
ON BOARD the vessel which is to carry
the goods.
 Received for Shipment Bill- is one which
it is stated that the goods have been
RECEIVED FOR SHIPMENT with or
without specifying the vessel by which
the goods are to be shipped.
6. Custody Bill of Lading
 It indicates that the goods are already
received by the carrier but the vessel
indicated therein has not yet arrived in
the port.
7. Port Bill of Lading
 The vessel indicated in the BOL that will
transport the good is already in port.
NATURE OF BOL
Two-fold character of BOL; it is a receipt as to the quantity
and description of the goods and a contract to transport the
goods to the consignee or other person designated therein.
 When effective: upon its delivery to and
acceptance by the shipper. Shipper is generally
bound by his acceptance whether he reads the bill
or not.
1.
 Receipt is not essential to complete a
delivery of goods to the carrier, but,
 When issued it is competent and prima
facie, but not conclusive, evidence of
delivery to the carrier.
 Said Weight Clause
“said to weight” means nobody knows the actual
weight of the cargo; the weight written on the bill
and on the manifest is based only on the
declaration of the shipper.
 It is only material when the presumption
of negligence is invoked.
2. BOL as a CONTRACT
 It is the law between the parties provided it is not
contrary to law, morals, good customs, public
order and public policy.
 PARTIES in the BOL are shipper and carrier.
Consignee may also be a party to a contract
although not signatory therein by reason of either:
1. the relationship of agency between the
consignee and the shipper/consignor;
2. the unequivocal acceptance of the BOL, with
full knowledge of its contents; or
3. availment of stipulation pour autrui
 CONTRACT OF ADHESION
o Drafted only by one party, usually the
carrier, and is sought to be accepted or
adhered to by the other party, the
passengers or shippers.
o Take it or leave it basis
o BOL is a contract of adhesion
o Liberally construed in favor of the
passenger/shipper who adhered to such
BOL or ticket.
o They are not entirely prohibited; they are
as binding as ordinary contracts, the
reason being that the party who adheres
to the contract is free to reject it entirely.
 PAROL EVIDENCE RULE
o BOL is covered by parol evidence rule.
o The terms of a contract are rendered
conclusive upon the parties, and
evidence aliunde is not admissible to
vary or contradict it.
GR: when the parties have reduced their
agreement in writing on a particular matter, all
 their previous and contemporaneous
agreements on the matter are merged therein.
XPN: a mistake of fact mutual to the parties before
parol evidence may be admitted.
PROHIBITED AND LIMITING STIPULATIONS IN
BOL.
Exempting the carrier from any
and all liabilities for loss or
damage occasioned by its own
negligence
Providing for an unqualified
limitation of such liability to an
agreed valuation.
One limiting the liability of the
carrier to an agreed valuation
unless the shipper declares higher
value and pays a higher freight.
the employer/carrier NOT the driver being only an employee.
Negligent act does not necessarily be alleged and prove,
what is necessary is the presence of the contract and the
damage or injury caused.
Culpa aquiliana- The driver may be sued for his negligence
that caused injury to the passenger or damage to the goods,
as well as the employer/carrier, but the latter may use due
diligence in the selection and supervision of the employee as
Invalid- a defense to exculpate liability. Negligence need to be
contrary to alleged and prove to claim damages.
public
policy
Invalid-
contrary to
MARITIME LAW
public
policy
Maritime Law – is the system of laws which particularly
Valid and relates to the affairs and business of the sea, to ships, their
enforceable crews and navigation and to marine conveyance of persons
and property

See pages 290-297 for problems and cases

(essentials of transportion and public utilities law, Governing Laws:
Aquino&Hernandez, 2016)
1. New Civil Code – primary law on maritime
3. BOL as a DOCUMENT OF TITLE commerce
2. Book III Code of Commerce – applied suppletorily
o BOL can be a negotiable document of 3. Special Laws
title. a. Salvage Law (Act No. 2616)
o Presence of words of negotiability b. Carriage of Goods by Sea Act (CA No.
65)
makes the BOL negotiable.
c. Ship Mortgage Decree of 1978 (PD
o If the document of title contains required 1521)
words of negotiability, the placing of
words “not negotiable” or “non-
negotiable” will not affect its Limited liability rule – means that the liability of a
negotiability. shipowner for damages in case of loss is limited to the value
of his vessel.

 No vessel, no liability.
CULPA CONTRACTUAL V CULPA AQUILIANA  The civil liability for collision is merely co-existent
with the interest in the vessel; if there was total
Point of CULPA CULPA loss, liability is also extinguished.
distinction CONTRACTUAL AQUILIANA
Source of
Contract Quasi-delict
obligation GR: If the ship is totally lost, liability is extinguished. If the
No liability being ship or part thereof still exists, he can escape liability by
Liability of Solidarily liable with
there no privity of abandoning the vessel, its appurtenances and its freight.
employee the employer
contract
Due diligence in the
Due diligence in the Article 837, 587 and 590 of Code of Commerce cover only:
selection and
selection and
Availability of supervision of the
supervision of the 1. Liability to third persons
defense employee is a
employee is NOT a 2. Acts of the captain
defense under
defense 3. Collisions
art.2180
In what
Liable as a Liable as an EXCEPTIONS TO THE LIMITED LIABILITY RULE
capacity
contracting party employer
liable
1. Where the injury or death to a passenger is due
either to the fault of the shipowner, or to the
Elaboration: concurring negligence of the shipowner and the
captain (NEGLIGENCE)
Culpa contractual -Only the employer because of the
contract of carriage is between the passenger/shipper and
 GR: Shipowner is liable for the negligence of the
captain in collision cases
---- liability is limited to value of the vessel
 Limited liability rule applies if the captain or the
crew caused the damage or injury as when
unseaworthiness of the vessel was caused by the
negligence of the captain or crew during the
voyage
 However, if the failure to maintain the
seaworthiness of the vessel can be ascribed to the
shipowner alone or the shipowner concurrently
with the captain, then the limited liability principle
cannot be invoked --- LIABILITY FOR THE
DAMAGES IS TO THE FULL EXTENT (ex.
Overloading, unseaworthiness even at the time of
departure)
2. Where the vessel is insured (INSURANCE)
3. In the workmen’s compensation claims
(WORKER’S COMPENSATION)
4. Expenses for repairs and provisioning of the ship
prior to the departure thereof
5. The vessel is not abandoned (ABANDONMENT)
 Abandonment of the vessel, its appurtenances
and the freightage is an indispensable requirement
before the shipowner or ship agent can enjoy the
benefits of the limited liability rule. If the carrier
does not want to abandon the vessel, he is still
liable even beyond the value of the vessel
 The only instance where abandonment is
dispensed with is when the vessel was entirely
lost. In such case, the obligation is extinguished.
 Only shipowner and ship agent can make an
abandonment
PROTESTS
- is the written statement by the master of a vessel
or any authorized officer, attested by proper officer
or a notary, to the effect that damages has been
suffered by the ship
Required under the following cases:
1. When the vessel makes an arrival under stress
2. Where the vessel is shipwrecked
3. Where the vessel has gone through a hurricane or
the captain believe that the cargo has suffered
damages or averages
4. Maritime collisions
VESSELS
 A vessel or watercraft is defined under PD No. 447 as
any barge, lighter, bulk carrier, passenger ship
freighter, tanker, container ship, fishing boats, or other
artificial contrivance utilizing any source of motive
power, designed use or capable of being used as a
means of transportation operating either as a common
carrier, including fishing vessels covered under PD No.
43,
Except:
1. Those owned and/or operated by the Armed Forces
of the Philippines and by the Foreign Government for
its Military Purpose.
2. Bancas, sailboat and other waterbone contrivance of
less than three tons capacity and not motorized.
- Vessels are considered personal property under the
Civil Law. The Code of Commerce likewise expressly
acknowledges the special nature of a vessel as
personal property.
C. PERSONS WHO TAKE PART IN MARITIME
COMMERCE
 SHIPOWNERS and SHIP AGENTS;
 CAPTAINS and MASTERS OF VESSELS;
 OFFICERS and CREW OF VESSELS
SHIPOWNER – the person who is primarily liable for
damages sustained in the operation of vessel.
SHIP AGENT (Code of Commerce) – the person entrusted
with provisioning of the vessel, or who represents her in the
port in which she happens to be. There is also the intention
under the Code of Commerce to make the ship agent
solidarily liable with the owner. The solidary liability applies
both for breach of contract and extra-contractual obligations
such as tort. The ship agent, even though he is not the
owner, is liable in every way to the creditor for losses and
damages without prejudice to his right against the owner, the
vessel and its equipment and freight. But his liability,
however is subject to the LIMITED LIABILITY RULE
(Chapter 6 of the Aquino book).
MARINA regulations:
MASTER – the person having command of the ship. The
same term is being used both for domestic trade and
international trade.
BOAT CAPTAIN – a person authorized by the MARINA to
act as officer and/or in command of a boat/ship or has
the qualification/license to act as such.
CHARTER PARTIES
Charter Parties
- a contract whereby the entire ship, or some of the
principal part, is let by the owner to a merchant or other
person for a specified time or use for the conveyance of
goods, consideration of payment of freight
- it is a contract, hence, parties are free to stipulate upon
such terms and conditions that would suit their
purposes subject to the caveat that these should not be
contrary to law or public policy

Parties
1. Charterer- merchant or a person who desire s to lease
ship or vessel owned by another by transport of his or her
goods for commercial purposes or persons from one port to
another
2. Shipowner (SO)
KINDS:
1. bareboat or demise charterer – shipowner leases to the
charterer the whole vessel, transferring to the charterer the
entire command, possession and consequent control over
the vessel’s navigation, including the master and the crew,
who becomes the charterer’s “servants”
- charterer becomes an owner “pro hac vice”
2. Contract of affreightment – charterer hires the vessel only,
either for a determinate period of time or for a single or
consecutive voyage, with the SO providing for the provision
of the ship, wages of the master and crew, and expenses for
maintenance of the vessel
a. time charter – vessel is leased to a charterer
for a fixed period of time
b. voyage charter – vessel is leased for a single
or particular voyage
REQUISITES OF A VALID CHARTER PARTY
1. consent of the contracting parties
2. an existing vessel which should be placed at the
disposition of the shipper
3. the freight
4. compliance with requirements of art 652 of Code
of commerce
(Aticle 652 of the Code of Commerce provides that
the charter party shall contain, among others, the
name, surname, and domicile of the charterer, and
if he states that he is acting by commission, that of
the person for whose account he makes the
contract.)
FRIEGHT OR FREIGHTAGE
- price of carriage
- shall accrue according to what is stipulated in the
contract
- should there be no stipulation or if it is ambiguous
, rules shall be
a. freight shall begin to run from the day of
loading on the vessel
b. in charters with fixed period, the freight shall
begin to run upon that very day
c. If freight is charged according to weight ,
payment shall be made according to gross
weight , including the weight of the containers
LAST DAYS- period of time stipulated from loading and
unloading ( provided for in charter party ) ; if no lay days
provided for in the charter party, it is understood that the
charterer will unload and discharge cargoes within a
reasonable time or with reasonable diligence
Demurrage – a sum of money due by express contract for
detention of the vessel in loading , beyond time allowed for
that purpose in that charter party ; sum of which is usually
fixed by the parties in the charter party ; liability for this exists
only when expressly stipulated
Deadfreight – where the charterer failed to occupy the
leased portion of the vessel, he may thereby be liable by the
shipowner for the deadfreight that occurred
LOANS ON BOTTOMRY AND RESPONDENTIA
LOAN ON BOTTOMRY – loan made by shipowner or ship
agent guaranteed by vessel itself and repayable upon arrival
of vessel at destination; vessel/portion
LOAN ON RESPONDENTIA – loan, taken on security of the
cargo laden on a vessel, and repayable upon safe arrival of
cargo at destination; cargo/goods
COGSA (CARRIAGE OF GOODS BY SEA ACT)
- Adopted by the Philippines on October 22, 1936
through Commonwealth Act No. 65
- New Civil Code  primary law on goods that are
being transported from a foreign port to the
Philippines
- COGSA  remains to be a suppletory law for
such type of transportation – international shipping
ART. 1753, NCC: THE LAW OF THE COUNTRY TO
WHICH THE GOODS ARE TO BE TRANSPORTED SHALL
GOVERN THE LIABILITY OF THE COMMON CARRIER
FOR THEIR LOSS, DESTRUCTION OR DETERIORATION.
* Goods – includes goods, wares, merchandise, and articles
of every kinds whatsoever
- does not include live animals and cargo which by
the contract of carriage is stated as being carried on deck
and is so carried
Parties:
 Carrier, and
 Shipper
- New Civil Code – carrier will not be liable only if it can
present proof that the unseaworthiness was caused
exclusively by any of the circumstances specified in Art.
1734 of the NCC
Waiver
- The shipowner and the ship agent may waive the benefit of
any of the defenses in its favor provided not only under
COGSA but also under other laws
Limiting provision
- COGSA contains a provision that allows the shipper to
recover only US$500 per package unless there is a special
declaration unless there the real value of the goods is
declared
- declaration made by the shipper stating an amount bigger
than $500 per package will make the carrier liable for such
bigger amount but only if the amount so declared is the real
value of the goods
Right to discharge dangerous cargo
- COGSA allows the carrier to discharge the good of the
carrier discovers that the goods are dangerous, inflammable
or are explosives
PROCEDURE AND PRESCRIPTIVE PERIOD OF CLAIM
(claim for damages)
OVERLAND AND COASTWISE SHIPPING
1.BREACH OF CONTRACT
2.NOTICE OF CLAIM
MANDATORY(non-filing of the claim bars recovery)
Art. 366 Code of Commerce
When: (actual delivery is necessary)
a. immediately if the damage is APPARENT
b. within 24 hours from receipt of the merchandise if the
damage is NOT APPARENT.
When not applicable: MISDELIVERY
Commencement of period: when consignee has received
possession of the merchandise(upon delivery)
Effect of stipulation: agreement in the BOL providing a
period that is different from the period provided by ART. 366
is VALID.
Waiver: carrier may waive the requirement of notice of claim.
3. FILE A CASE IN COURT
When: (prescriptive period)
a. no BOL: 6 years
b. with BOL: 10 years
INTERNATIONALCARRIAGE FROM FOREIGN PORT TO
THE PHILIPPINES (COGSA)
1.BREACH OF CONTRACT
2.NOTICE OF CLAIM
NOT MANDATORY(non-filing of the claim DOES NOT bar
recovery)
When: (actual delivery is necessary)
a. immediately if the damage is APPARENT
b. within 3 DAYS from receipt of the merchandise if the
damage is NOT APPARENT.
3. FILE A CASE IN COURT
When: (prescriptive period)
1 YEAR from discharge of the goods
WHEN PERIOD NOT APPLICABLE: MISDELIVERY
- In collision cases, the prescriptive period starts not
from the date of the collision but from when the
goods should have been delivered.
- 1 year period may by agreement
- In cases of subrogation, the insurer is also bound
by the 1 year prescriptive period.
PUBLIC UTILITY
What is public utility?
Is a business or service engaged in regularly supplying the
public with some commodity or service of public
consequence such as electricity, gas, water, transportation,
telephone or telegraph service.
PUBLIC CARRIAGE
Who regulates public carriage?
- Land Transportation Franchise and Regulatory
Board.
- Major function: determines fare rate
Who issues Certificate of Public Convenience (CPC)?
- Public Service Commission
 - May be delegated to LGUs

Grounds for cancellation of CPC

1. When the holder is a mere dummy

2. Where the operator ceased operations and placed
his vehicles on storage
3. Where the operator totally abandoned the service
4. Misrepresentation

Is CPC transferable?

Yes, upon approval of Public Service Commission of the

sale or transfer if:

a. there are just and reasonable grounds

b. the sale or transfer is not detrimental to public interest