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The carriage of goods by sea is governed by one of four international liability regimes, depending on the jurisdiction and the terms of the bill of lading. All four regimes balance two competing interests: the shipper's desire to hold the carrier fully liable for loss or damage, and the carrier's need for certainty, limitation, and protection from unforeseeable perils. The regimes diverge principally on the scope of the carrier's defences, the monetary limit per package, and the length of the time bar.
For the Master, these rules are directly relevant: the Master signs the bill of lading, and the representations made in it — whether goods are in apparent good order and condition, quantity shipped, and the description of the cargo — form the basis of the carrier's liability to the consignee. Issuing a clean bill of lading for damaged or short cargo, or signing a bill under a Letter of Indemnity without proper authority, can expose the shipowner and Master to personal liability.
Superseded in most major trading nations by Hague-Visby but still applicable in some jurisdictions by national legislation (e.g., United States under COGSA 1936).
£100 gold per package or unit — a figure that is now economically trivial and the primary driver behind the Visby amendments.
One year from delivery of goods or from the date when the goods should have been delivered.
Applies to bills of lading covering outward shipment from a contracting state. Excludes live animals and deck cargo.
The Hague Rules codified the common-law position that carriers could limit liability and claim defences, while imposing minimum obligations to exercise due diligence to make the ship seaworthy and to properly care for cargo. The 'error in navigation' and 'fire' defences were controversial from the outset.
Approximately 30 states including the United Kingdom, most EU member states, Singapore, Australia, and major flag states. Implemented in UK law by the Carriage of Goods by Sea Act 1971.
666.67 SDR per package or unit, OR 2 SDR per gross kilogramme — whichever is higher. The "package or unit" is the unit described in the bill of lading.
One year from delivery or date of expected delivery. The time bar extinguishes the action entirely (not just bars the remedy) — a strict rule. Notice of apparent damage must be given at or before delivery; notice of non-apparent damage within three days of delivery.
Applies to bills of lading if: (a) issued in a contracting state; (b) carriage from a port in a contracting state; or (c) the B/L expressly incorporates the Rules. Compulsorily applies only where goods are being shipped from a contracting state.
The Hague-Visby regime is the most widely applied in commercial practice. The SDR Protocol replaced the gold-franc unit with the IMF's Special Drawing Right, making the limits inflation-neutral. The Rules apply to the carrier's servants and agents by virtue of the Himalaya clause (Article IV bis), overruling Adler v Dickson.
Approximately 35 states, predominantly developing nations. Not in force in the UK, EU, USA, or major shipping nations. Examples: Bangladesh, Botswana, Burkina Faso, Chile, Czech Republic, Hungary, Kenya, Lebanon, Libya, Morocco, Nigeria, Romania, Senegal, Sierra Leone, Tanzania, Tunisia, Uganda, Zambia.
835 SDR per package or unit, OR 2.5 SDR per gross kilogramme — whichever is higher.
Two years from the date of delivery or expected delivery (longer than Hague-Visby). Claimant must give notice of loss/damage at time of delivery or within 15 consecutive days (for non-apparent damage).
Applies to all contracts of carriage by sea if the port of loading or discharge is in a contracting state, regardless of the nationality of the ship, carrier, or parties.
The Hamburg Rules were developed under UNCTAD pressure from developing states who felt the Hague Rules were drafted in the interests of carrier nations. The abolition of the navigation-error defence and higher limits have deterred adoption by major maritime nations. The Rules also expressly cover deck cargo and live animals.
Signatories include the USA, France, Greece, Denmark, Netherlands, and Norway — but signature does not constitute ratification. The USA was an early champion but has not ratified.
875 SDR per package or unit, OR 3 SDR per gross kilogramme — whichever is higher.
Two years from delivery or date when the claimant should have been aware of loss.
Covers door-to-door multimodal transport where the sea leg is significant; extends beyond purely sea-leg liability. Covers electronic bills of lading. Addresses volume contracts separately.
The Rotterdam Rules are an ambitious modernisation attempting to bridge the Hague-Visby and Hamburg regimes and cover multimodal transport. Their failure to achieve entry into force leaves international cargo law fragmented — Hague, Hague-Visby, and Hamburg all remain operative in different jurisdictions, creating choice-of-law complexity.
| Regime | Package limit | Time bar | Error in navigation defence? |
|---|---|---|---|
| Hague Rules 1924 | £100 gold | 1 year | Yes |
| Hague-Visby 1968 + SDR 1979 | 666.67 SDR / 2 SDR/kg | 1 year | Yes |
| Hamburg Rules 1978 | 835 SDR / 2.5 SDR/kg | 2 years | No |
| Rotterdam Rules 2008 | 875 SDR / 3 SDR/kg | 2 years | No |