Hague-Visby Rules: Key Articles

• The Hague-Visby Rules, created on February 23, 1968, intend to fix uniform rules of law for bills of lading

Article 1: Definitions

• 'Carrier' includes the owner or charterer who enters into a contract of carriage with a shipper.
• 'Contract of carriage' applies only to contracts covered by a bill of lading or similar document, related to the carriage of goods by sea.
• 'Goods' includes merchandise of every kind, except live animals and cargo carried on deck as stated in the contract.
• 'Ship' refers to any vessel used to carry goods by sea.
• 'Carriage of goods' covers the period from loading to discharge from the ship.

Article 2: Responsibilities and Liabilities of the Carrier

• The carrier is subject to responsibilities and liabilities and entitled to rights and immunities regarding the loading, handling, stowage, carriage, custody, care, and discharge of goods.

Article 3: Carrier’s Obligations

• The carrier must exercise due diligence to make the ship seaworthy, properly manned, equipped, and supplied, and ensure that the holds, refrigerating and cool chambers, and other parts of the ship are fit and safe for the goods.
• The carrier shall properly and carefully load, handle, stow, carry, keep, care for, and discharge the goods carried.
• After receiving the goods, the carrier must issue a bill of lading to the shipper showing the leading marks for identification, the number of packages or quantity/weight, and the apparent order and condition of the goods.
• A bill of lading shall be prima facie evidence of the receipt of the goods.

Evidentiary value of the Bills of Lading

• Proof to the contrary is not admissible once the bill of lading is transferred to a third party acting in good faith.
• The shipper guarantees the accuracy of marks, number, quantity, and weight and shall indemnify the carrier against any loss resulting from inaccuracies.
• Notice of loss or damage must be given in writing to the carrier or agent at the port of discharge before or at the time of removal of the goods, or within three days if the loss or damage is not apparent.
• The carrier will be discharged from all liability unless suit is brought within one year of delivery or the date when the goods should have been delivered, although this period may be extended by agreement.

The ‘Shipped’ Bill of Lading

• After loading the goods, the carrier must issue a 'shipped' bill of lading if demanded by the shipper, who must surrender any other title document.

Exemptions and Limitations of Liability

• Any agreement relieving the carrier from liability for loss or damage arising from negligence or failure in duties is null and void.
• The carrier is not liable for loss or damage resulting from unseaworthiness unless caused by a lack of due diligence to make the ship seaworthy.
• The burden of proving the exercise of due diligence is on the carrier.
• The carrier is not responsible for loss or damage arising from various causes including acts of neglect, fire, perils of the sea, acts of war, quarantine restrictions, strikes, riots, saving life or property at sea, wastage, insufficiency of packing or marks, latent defects, or any other cause without the carrier's actual fault.
• The shipper is not responsible for loss or damage sustained by the carrier without their act, fault, or neglect. A reasonable deviation in saving life or property at sea does not breach the contract

Liability Amount

• Unless the nature and value of goods have been declared, neither the carrier nor the ship shall be liable for loss or damage exceeding the equivalent of 10,000 francs per package/unit or 30 francs per kilo of gross weight, whichever is higher.
• The amount is calculated based on the value of the goods at the place and time of discharge. A franc is defined as 65.5 milligrams of gold of millesimal fineness 900'.

Other Important Points

• The carrier cannot limit liability if damage resulted from an act done with intent to cause damage or recklessly with knowledge that damage would probably result.
• The carrier may surrender rights and immunities or increase responsibilities under this Convention, if embodied in the bill of lading.
• The Convention does not apply to charter parties but does apply if bills of lading are issued under a charter party.
• The carrier is at liberty to enter into any agreement regarding particular goods, provided that no bill of lading is issued and the terms are embodied in a non-negotiable receipt marked as such, and that this doesn't apply to ordinary commercial shipments.

Application and Implementation

• The provisions of the Convention do not affect the rights and obligations of the carrier under any statute for the time being in force relating to the limitation of the liability of owners of sea-going vessels.
• The Convention applies to bills of lading relating to the carriage of goods between ports in two different States if the bill of lading is issued in a Contracting State, the carriage is from a port in a Contracting State, or the contract provides that the rules of this Convention are to govern.
• The Belgian Government will communicate with the Governments of the High Contracting Parties to decide whether the Convention shall be put into force, and the ratifications will be deposited at Brussels.
• Non-signatory States may accede to the Convention by notifying the Belgian Government.