BILL OF LADING

CARRIAGE OF GOODS

Article I, par. (e) of the Hague-Visby Rules gives about the carriage of goods the following definition:

"Carriage of Goods" covers the period from the time when the goods are loaded on to the time they are discharged from the ship.

The words "carriage of goods", as used here refer to the voyage of the ship. This definition is important to determine the period of responsibility of the carrier.

As we already mentioned, it is important to make a clear distinction between the parties involved.

Between the seller and the buyer, where the "contract of sale" serves as agreement for the transfer of costs and liability, reference has to made to the "Incoterms".

With regard to the relation shipper-carrier, it is the "contract of carriage" that counts thus, the bill of lading or the charter party. With regard to the liability of the carrier, a distinction must be made between conventional shipments or port to port shipments with or without transshipment, multimodal transport and combined transport.

Port to Port Shipments

Port to port shipments mainly occur in the liner services. Transshipment is usually not anticipated although there may be a clause in the bill of lading allowing the carrier to transschip the goods.

WITHOUT TRANSHIPMENT

For the "port to port shipment" of conventional goods, the period of liability of the carrier towards the shipper starts from the moment that, in the port of loading, the goods hang in the sling until they are received in the port of discharge from the sling alongside the ship; hence, from tackle to tackle.

"If the Carriage called for by this Bill of Lading is a port to port shipment, the liability (if any) of the Carrier for loss of or damage to the Goods occurring from and during loading onto any seagoing vessel up to and during discharge from that vessel or from another seagoing vessel into which the Goods have been transshipped shall be determined in accordance with any national law making the Hague Rules compulsorily applicable to this Bill of Lading or in any other case in accordance with the Hague Rules. Notwithstanding the above, the Carrier shall be under no liability whatsoever for loss of or damage to the Goods, howsoever occurring, when such loss or damage arises prior to loading on or subsequent to discharge from the vessel". (Bill of Lading for combined transport shipment or port to port shipment, Clause 5, Carrier responsibility.)

"(1) The Carrier shall be liable for loss of or damage to the goods occurring between the time when he receives the goods into his charge and the time of delivery". (COMBICONBILL, III. Carrier's Liability, Clause 9. Basic Liability.)

The Carrier shall in no case be responsible for for loss of or damage to cargo arising prior to loading, after discharging, or with respect to deck cargo or live animals (CONLINEBILL 2000, Clause 3, Liability for Carriage between Port of Loading and Port of Discharge, par. (a), al. 3.) For grain, the moment of reception and consequently also the transfer of liability is determined at the moment that the elevator weighs the grain

For liquid cargoes, the reception takes place from the moment the liquid leaves the ship through the pipes.

When goods are loaded from lighters, the transfer of liability takes place when the goods pass over the ship's rail (the ship has indeed no control over the lighter).

WITH TRANSHIPMENT

If the transshipment was foreseen, a through bill of lading or a multimodal transport bill of lading must be used. (See further, Through Bill of Lading or Multidoc 95.)

If the transshipment was not foreseen, in other words, if the voyage had to be interrupted due to Act of God, the goods must, as soon as possible, be transshipped into another vessel. Several cases can occur:

1. The harbour of departure is bound by the Hague Rules 1924

Transshipment to a harbour bound by the Hague Rules 1924: the Hague Rules 1924 apply

Transshipment to a country bound by the Visby Amendment 1968: the Hague-Visby Rules apply in accordance with Article 10, par. (b): the carriage is from a port in a contracting State.

2. The harbour of departure is bound by the Visby Amendment1968

Transshipment to a harbour bound by the Hague Rules 1924: The Hague-Visby Rules apply (principle of a single transport; Article 10).

Transshipment to a country bound by the Visby Amendment 1968: the Hague-Visby Rules apply.

Combined Transport

In combined transport, the carrier is liable for the goods from the moment he receives the goods in the agreed point (e.g. the Container Freight Station - CFS) until the moments he delivers them in the agreed point (e.g. a Inland Clearance Depot - ICD).

"(1) The carrier shall be liable for loss of or damage to the goods occurring between the time when he receives the goods into his charge and the time of delivery". (COMBICONBILL, Clause 9 § (1), Basic Liability.)

"A. 1) The Freight Forwarder shall be liable for loss of or damage to the goods occurring between the time when he takes the goods into his charge and the time of delivery". (FIATA Combined Transport Bill of Lading - FBL, Clause 6, Extent of Liability.)

"If the Carriage called for by this Bill of Lading is Combined Transport, the Carrier undertakes to perform and/or in his own name to procure performance of the Carriage from the Place of Receipt or the Port of Loading, whichever is applicable, to the Port of Discharge or the Place of Delivery, whichever is applicable, and, save as is otherwise provided in this Bill of Lading, the Carrier shall be liable for loss or damage occurring during the Carriage to the extent set out below .......". (Bill of Lading for Combined Transport Shipment or Port to Port Shipment, Clause 6, Carrier's Responsibility.)

Quick Reminder

Carriage of goods: period from the time they are loaded to the time they are discharged.

Regarding period or transfer of responsibility (or liability):

- Between seller and buyer: contract of sale and Incoterms.

- Between shipper and carrier: contract of carriage (bill of lading or charter party).

- Without transshipment: from tackle to tackle.

- For grain: when the elevator weighs the grain.

- For liquid cargoes: when the liquid leaves the ship through the pipes.

- Goods loaded from lighters: when goods pass over the ship's rail.

- Combined transport: from reception in e.g. CFS until delivery in e.g. ICD.

Useful WWW links

http://www.admiraltylaw.com/carriage.htm