THE CARRIER`S LIABILITY UNDER INTERNATIONAL

THE CARRIER'S LIABILITY UNDER
INTERNATIONAL MARITIME CONVENTIONS
T H E HAGUE, HAGUE-VISBY, AND HAMBURG RULES
Hakan Karan
The Edwin Meilen Press
Lewiston'Queenston'Lampeter
TABLE OF CONTENTS
ABBREVIATIONS
i
TABLE OFCASES
vii
TABLE OF LEGISLATION
xxxv
TABLE OF STANDARD FORMS
xlv
PREFACE by Dr. Ademun-Odeke
xlvü
ACKNOWLEDGMENTS
li
INTRODUCTION
/. SUBJECTMATTER AND AIM.
1
//. SCOPEAND STRUCTURE
3
III. APPROACHAND METHODOLOGY
5
PARTI
PRELIMINARIES TO THE CARRIER'S LIABILITY
CHAPTER1 - HISTORICAL DEVELOPMENT OFTHE CARRIER'S
LIABILITY
l THE CARRIER'S LIABILITY UNDER ROMAN LAW
7
//. THE CARRIER 'S LIABILITY UNDER CIVIL LAW.
///. THE CARRIER'S LIABILITYATCOMMONLAW
9
11
IV. THE CARRIER 'S LIABILITY UNDER THE PRINCIPLE OF
«LIABILITY DUETOWRITTEN STATEMENT»
A) GENERAL
12
12
B) THE CARRIER'S LIABILITY UNDER MODEL BILLS OF LADING
15
1- The carrier's liability under the Common Form of Bill of Lading 1882
15
2- The carrier's liability under the Hamburg Rules of Affreightment 1885
16
3- The carrier's liability under the London Conference Rules of Affreightment
1893
17
V. THE CARRIER 'S LIABILITY UNDER NATIONAL REACTING
STATUTES
18
A) THE CARRIER'S LIABILITY UNDER THE US HARTER ACT 1893
18
B) THE CARRIER'S LIABILITY UNDER THE CANADIAN WATER
CARRIAGE OF GOODS ACT 1910
21
VI. THE CARRIER 'S LIABILITY UNDER INTERNATIONAL
CONVENTIONS
21
A) THE CARRIER'S LIABILITY UNDER THE HAGUE RULES
21
1- The carrier's liability under the pre-Hague Rules 1921
21
2- The carrier's liability under the Hague Rules 1924
24
3-The carrier's liability under the Hague - Visby Rules 1968 (the Hague Rules
amended by the Visby Protocol 1968 and the SDR Protocol 1979)
B) THE CARRIER'S LIABILITY UNDER THE HAMBURG RULES 1978
27
32
VII. THE CARRIER'S LIABILITY ATPRESENT
36
VIII. CONCLUSIONS
41
CHAPTER 2 - INTERNATIONAL RULES CONCERNING THE
CARRIER'S LIABILITY
/. AIMSOF THE RULES
43
A) AIMS OF THE HAGUE AND HAGUE-VISBY RULES
43
B) AIMSOF THE HAMBURG RULES
45
//. LEGISLATIVE STYLES OF THE RULES
46
III. LEGAL NATURE OF THE RULES
48
A) CONVENTION BASED UNIFORM RULES
48
B)MANDATORY RULES
52
1-General
52
2-Principle
53
3-Exceptions
55
4- Sanctions
57
5- General average
59
6- Effects of Contracting States' national public policies
61
IV. SCOPES OF THE RULES
62
A) GENERAL
62
B) UNDER THE HAGUE RULES
63
C) UNDER THE HAGUE-VISBY RULES
64
D) UNDER THE HAMBURG RULES
65
E) ENLARGEMENT OF THE SCOPE OF THE RULES BY PARAMOUNT
CLAUSES
66
V. JURISDICTION.
69
VI. ARBITRATION.
75
VII. CONCLUSIONS.
77
CHAPTER 3 - BASIS OF THE CARRIER'S LIABILITY
/. THEREASONFORTHECARRIER'SLIABILITY
81
//. LEGAL NATURE OFTHE CARRIER'S LIABILITY
82
A)GENERAL
82
B)STRICT LIABILITY FOROTHERS'FAULT
85
QEXEMPTED LIABILITY
87
D)LIMITED LIABILITY
98
///. RELATIONS OF THE CARRIER 'S LIABILITY W1TH OTHER
LIABILITIES
100
A) RELATIONS WITH THE CARRIER'S EXTRACONTRACTUAL
(TORTIOUS) LIABILITY
100
B) RELATIONS WITH CARRIER'S OTHER CONTRACTUAL
104
LIABILITIES
1° 4
1-General
2- Relations with the carrier's contractual liability for loss or damage arising
from unseaworthiness before and at the beginning of the voyage
105
3- Relations with the carrier's contractual liability for loss or damage arising
from deviation
113
a-. General
113
b-. Quasi-deviations
118
IV. THE BÜRDEN AND ORDER OFPROOF
120
V. CONCLUSIONS
123
PART II
CONDITIONS OF THE CARRIER'S LIABILITY
CHAPTER 4 - THE CONTRACT OF CARRIAGE OF GOODS BY SEA
/. DEFINITION AND ELEMENTS OF THE CONTRACT OF CARRIAGE OF
GOODS BY SEA
125
A) DEFINITION
125
B) ELEMENTS
126
1-Carriage
126
2- Carriage of goods (cargo)
127
a-. General
127
b-. Carriage oflive animals and deck cargo
128
c-. Carriage of Container goods
131
3- Carriage by sea
133
4- Carriage of goods in the carrier's custody
137
//. TYPES OF CONTRACTS OF CARRIAGE COVERED BY THE RULES
A) CONTRACTS COVERED BY THE HAGUE AND HAGUE-VISBY
138
RULES
138
1- Principle: Lading contracts
138
2- Exception: Contracts of carriage by chartered ship
141
B) CONTRACTS COVERED BY THE HAMBURG RULES
143
1- Principle: all contracts of carriage of goods by sea
143
2- Exception: contracts of carriage by chartered ship
144
///. DOCUMENTS PROVING THE CONTRACT OF CARRIAGE
144
A) BILLS OF LADING
145
B)WAYBILLS
146
C) ELECTRONIC (PAPERLESS) BILLS OF LADING
147
IV. SUB-CONTRACTS OF CARRIAGE
150
V. CONTRACTS OF THROUGH-CARRIAGE
152
A) GENERAL
152
'.
B) TYPES OF CONTRACTS OF THROUGH-CARRIAGE
154
1- Contracts oflinked carriage
154
2- Contracts of combined (multimodal) carriage
155
VI. ENLARGEMENT OF THE SCOPE OF THE RULES TO CONTRACTS
OUTSIDE THEIR COVERAGE BY AGREEMENT
VII. CONCLUSIONS.
157
159
CHAPTER 5 - LIABLE PARTY UNDER THE CONTRACT OF
CARRIAGE
/. THE (CONTRACTING) CARRIER
163
//. LEGAL POSITION OF THE CARRIER ISSUING A BILL OF LADING
165
III. LEGAL POSITION OF THE SHIP
166
IV. THIRD PARTIES DEEMED A CARRIER BY LAW
167
A)SUB-CARRIERS
168
B)SHIPOWNERS
172
C) INTERMEDIÄRES OF TRANSPORT
176
D)CARRIER'S SERVANTS OR AGENTS
1-General
179
l19
2- Definition of "the carrier's servants or agents"
183
a-. Carrier's servants
183
b-. Carrier's agents
184
c-. People deemed "the carrier's servants or agents": carrier's assistants
(in the Performance of the contract of carriage)
185
d-. Relationship between the carrier and his servants, agents or assistants
188
V. CONCLUSIONS
189
CHAPTER 6 - BREACH OF CONTRACTUAL OBLIGATION
/. CONTENT OF CONTRACTUAL OBLIGATION
193
A) CARRIAGE OBLIGATION
193
B) OBLIGATION TO RECEIVE GOODS
197
C) OBLIGATION TO LOAD GOODS
198
D) OBLIGATION TO HANDLE GOODS
201
E) OBLIGATION TO STOW GOODS
202
F) OBLIGATION TO CARRY GOODS
206
G) OBLIGATION TO KEEP GOODS
207
H) OBLIGATION TO CARE FOR GOODS
209
I) OBLIGATION TO DISCHARGE GOODS
210
J) OBLIGATION TO DELIVER GOODS
211
//. BREACH OF OBLIGATION (LOSS OF OR DAMAGE TO GOODS)
216
A)MISFEASANCE OF OBLIGATION (DAMAGE TO GOODS)
216
B) NONFEASANCE OF OBLIGATION (LOSS OF GOODS)
220
III. CONCLUSIONS
222
CHAPTER 7 - BREACH OF THE CARRIAGE OBLIGATION WHILE IN
THE CARRIER'S CHARGE
/. DURATION OF THE CARRIER 'S LIABILITY
225
A) RECEIPT OF GOODS BY CARRIER
226
B) DELIVERY OF GOODS BY CARRIER
228
C) AGREEMENT ON TIME OF RECEIPT OR DELIVERY
232
//. BREACH OF THE CONTRACT OF CARRIAGEDURING THEPERIOD
OF THE CARRIER'S LIABILITY.
232
A) GENERAL
232
B) STATE OF GOODS AT THE TIME OF RECEIPT
233
1- Receipt function of bills of lading and other documents
233
2- General nature, leading marks, number, weight or quantity of goods
236
3- Apparent orderand condition of goods
241
4- Date of receipt by carrier and quality of goods
245
5- Proofof State of goods with independent evidence
245
C) STATE OF GOODS AT THE TIME OF DELIVERY
246
1-Inspection of goods
246
2- Notice of loss or damage
248
III. CONCLUSIONS
254
CHAPTER 8 - LOSS RESULTING FROM BREACH OF THE CARRIAGE
OBLIGATION
I. DEFINITION OF LOSS
257
II. QUANTUM OF LOSS
258
A) GENERAL
258
B) DIFFERENCE THEORY
260
1-Decreases in assets
260
a-. Decrease in value ofgoods carried
261
b- Decrease in value of other things in assets
266
c-. Decrease in assets due to non-compensation of decrease in value at the
time of occurrence ofloss or damage
266
d-. Decrease in profits
267
e-. Increases in expenses
268
/-. Agreement on the method usedfor calculation
269
2-Increases in benefits
269
III. CONCLUSIONS
270
PART III
CONDITIONS OF THE CARRIER'S EXEMPTION FROM LIABILITY
CHAPTER 9 - EXEMPTED INCIDENT
/. UNAVOIDABLEOCCURRENCE
273
A)GENERAL
273
B) OCCURRENCE
275
C) LACK OF FAULT ON THE PART OF THE CARRIER, HIS SERVANTS
AND AGENTS
276
1- Lack of faulton the carrier's part
277
2- Lack of fault on the part of the carrier's servants and agents
283
D) ACTS OF GOD
283
II. EXCEPTIONS
284
A) GENERAL
284
B) EXCEPTIONS TO THE GENERAL EXEMPTION RULE: NAUTICAL
FAULT AND FIRE
285
1-General
285
2-Nautical fault
288
a-. General
288
b~. Forms of nauticalfault
291
aa: Fault in the navigationof the ship
291
bb: Fault in the management of the ship
293
3-Fire
294
C) EXCEPTIONS TO THE GENERAL BÜRDEN OF PROOF RULE:
OCCURRENCES PRESUMED UNAVOIDABLE
296
1-General
296
2-Seaperils
301
3- Acts against public order (policy)
302
4- Restraints of public authority
304
5-Restraintsoflabor
305
6- Acts or omissions of the cargo interest
307
7-Salvage
310
8-Inherentdeteriorationofgoods
313
9- Latent defects
315
///. PARTICULAR UNAVOIDABLE OCCURRENCES.
317
A) UNDETECTABLE DEFECTS CAUSING UNSEAWORTHINESS
BEFORE AND AT THE BEGINNING OF THE VOYAGE
317
B) REASONABLE DEVIATION
320
IV. CONCLUSIONS
323
CHAPTER 10 - PROXIMATE CAUSAL RELATION
I.GENERAL
325
II. COMBINATION OF PROXIMATE CAUSES
328
III. CHAIN OF PROXIMATE CAUSES
330
IV. LEGAL POSITION OF CARGO INTERESTS ADDUCING EVIDENCE
TO THE CONTRARY
V. BLOCKED CAUSAL RELATION
VI. CONCLUSIONS
331
335
335
PART IV
T .IMITATION OF THE CARRIER'S LIABILITY
CHAPTER 11 - LIMITATION OF DAMAGES
I.GENERAL
337
//. IN CASE OF PHYSICAL LOSS OR DAMAGE
339
A) MEASURES USED FOR LIMITATION OF DAMAGES
339
1-Package
340
a-. General
340
b-. Container, pallet orsimilar article oftransport
344
2-Unit
351
3-Weight
355
B)UNITOF ACCOUNT
357
1-General
357
2-Gold value ofcurrency
358
a-. Gold value ofpound Sterling or other equivalent national currency (in the
Hague Rules)
358
b-. Gold value offranc (in the Visby Protocol)
363
3- Special Drawing Rights value together with gold value (in the SDR Protocol
and the Hamburg Rules)
364
QMONETARYAMOUNT
366
///. IN CASE OFNON-PHYSICAL LOSS OR DAMAGE
367
IV. IN CASE OF BOTH PHYSICAL AND NON-PHYSICAL LOSS OR
DAMAGE
V. LOSS OFRIGHTTO LIMIT DAMAGES
369
369
A) DECLARATION OF THE NATURE AND VALUE OF GOODS
369
1-General
369
2- Bürden on the carrier to give shippers fair opportunities to declare the value
of goods
3- Sanction on the shipper for misrepresentation
371
374
B) CONSCIOUS FAULT
376
VI. CONCLUSIONS
379
CHAPTER 12 - LIMITATION OF THE PERIOD FOR ACTION
I.GENERAL
383
II. LEGAL NATURE OF THE PERIOD
385
III. LENGTH OF THE PERIOD
388
IV. COMMENCEMENTAND
389
CALCULATION OF THE PERIOD
V. COMPLIANCE WITH THE PERIOD
391
VI. THE PERIOD FOR RECOURSE ACTION.
393
VII. ALTERATION OF THE PERIOD
395
VIII. LOSS OFRIGHTTO
396
LIMIT THE PERIOD
IX. CONCLUSIONS
397
CONCLUSION
/. URGENT NEED FOR THE HARMONIZATION OF INTERNATIONAL
LIABILITY REGIMES IN THEFIELD OF CARRIAGE OF GOODS
BYSEA
401
//. COMPARISON OF INTERNATIONAL LIABILITY REGIMES
403
///. THE PREFERRED INTERNATIONAL LIABILITY REGIME:
THE AMENDED HAMBURG RULES
408
APPENDICES
/. THE HAGUE RULES 1924
417
//. THE VISBY PROTOCOL 1968
423
III. THE SDR PROTOCOL 1979
428
IV. THE HAMBURG RULES 1978
431
V. SIGNATORIESAND
448
CONTRACTING STATES
VI. APPLICATION OF THE RULES ORDOMESTIC STATUES TO THE
CONTRACT OF INTERNATIONAL CARRIAGE
453
VII. MONETARY LIMITS OF THE CARRIER 'S LIABILITY IN VARIOUS
COUNTRIES
455
BIBLIOGRAPHY
I.BOOKS
461
II. THESIS (UNPUBLISHED)
468
III.ARTICLES
469
IV. REPORTS
495
V. JOURNALS & OTHER PERIODICALS
INDEX
500
505