BILL OF LADING

INTERNATIONAL LEGISLATION

1. The Hague Rules

Accepted at the International Convention of Brussels on the 25th of August 1924 as the International Convention for the Unification of Certain Rules of Law relating to Bills of Lading and known as the Hague Rules.

2. The Visby Amendments

On the 23^rd of February 1968 a Protocol was signed at Brussels to amend the Hague Rules. This Protocol is known as the Visby Amendments.

On the 21st of December1979 a new Protocol was adopted which modified article 4, paragraph 5 of the 1924 Convention as modified by the 1968 Visby Amendments. It mainly deals with limitation of liability where the limits of the carrier’s liability are tied to the IMF’s “Special Drawing Right” (SDR), which is tied to a basket of the main currencies and is quoted daily in the financial press.

3. The Hague-Visby-Rules as amended by the Brussels Protocol 1968.

The Hague Rules together with the Visby Amendments are called the Hague-Visby Rules (HVR).

4. The Hamburg Rules

The United Nations Convention on the Carriage of Goods by Sea adopted on the 30^th of March 1978 and better known as the Hamburg Rules.

NOTES

The Hague Rules and their Protocols must be considered from three different angels as not every country adopted the Visby Amendment of 1968 and/or the Protocol of 1979.

For the range of application of the relevant Rules, see the "Paramount Clause" on the back of the bill of lading.

In principle, the provisions of the Hague-Visby Rules are only applicable on a negotiable and shipped bill of lading (and which in fact has been negotiated). As the Hague-Visby Rules are of public order they are only mandatory towards a third holder. The provisions of the Hague-Visby Rules belong to the imperative law. Consequently parties may not deviate from them and their main purpose is to protect a third holder who had no knowledge of the agreements made between the original shipper and the receiver of the goods. If the holder of the bill of lading, who is in fact the receiver of the goods, also is the shipper of these goods, the bill of lading has not been negotiated and no third holder was involved so that the Hague-Visby Rules do not apply.

As long as there is no third party involved, parties may, may agree to whatever they want (as long as they don't agree to something immoral or indecent or if what they agree is not against any other law) or even apply the Hague-Visby Rules to their contract of carriage. They may even modify or adapt the text to their personal needs if they wish to do so.

The complete Rules and law texts can be found in full on the Seamanship Library CD or in official Government Journals or in some private publications.

Quick Reminder

The international legislation which apply to the bill of lading:

1. The Hague Rules.

2. The Hague-Visby Rules (incorporating the 1968 Visby Amendments).

3. The Protocol of 79

4. The Hamburg Rules.

Check which countries ratified each Rule and/or Protocol.

The Hague-Visby Rules MUST be applied to a negotiable bill of lading if it has in fact be negotiated thus, if a third party is involved.
The Hague-Visby Rules MAY be applied and even adapted to a non-negotiable bill of lading or any other contract of carriage.

Useful WWW Links

http://tetley.law.mcgill.ca/maritime/ch1.pdf

http://www.jus.uio.no/lm/sea.carriage.hague.visby.rules.1968/doc.html

http://www.admiraltylaw.com/statutes/hague.html

http://ko.bestsme.com/tradeinfo/tinfo1/308.html

http://www.law.duke.edu/curriculum/courseHomepages/Spring2003/352_01/readings/COGSA.pdf

http://tetley.law.mcgill.ca/maritime/mlaw1exam2002.htm

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