Contract of Carriage by Sea

Definition A contract of carriage by sea is a type of contract where a carrier agrees to transport goods or passengers by sea in exchange for payment.

Key Features

• A contractual agreement between the carrier and the shipper/consignee
• Goods or passengers are transported by sea
• Carrier is responsible for safe transportation
• Shipper/consignee pays the carrier for the service

Types of Contracts

• Charter Party: a contract between the shipowner and the charterer, where the charterer hires the ship for a specific period
• Bill of Lading: a receipt and contract between the carrier and the shipper, acknowledging the receipt of goods and outlining the terms of transportation
• Waybill: a non-negotiable document that serves as a receipt and a contract between the carrier and the shipper

Carrier's Liability

• Limited Liability: carriers are not liable for loss or damage to goods exceeding a certain amount (e.g. Hague-Visby Rules)
• Exceptions: carriers are not liable for loss or damage caused by:
  • Act of God
  • Act of war
  • Negligence of the shipper or consignee
  • Inherent vice of the goods
  • Insufficient packing or labeling

Shipper's Obligations

• Proper Packing and Labeling: shipper must ensure goods are properly packed and labeled
• Accurate Information: shipper must provide accurate information about the goods, including weight, measurement, and value
• Payment of Freight: shipper must pay the carrier the agreed-upon freight charge

Dispute Resolution

• Arbitration: disputes may be resolved through arbitration, as agreed upon in the contract
• Jurisdiction: disputes may be resolved in a specific court or jurisdiction, as agreed upon in the contract