BILL OF LADING

THE GOODS

Article 1, Paragraph (c) of the Hague-Visby Rules gives the definition of the goods.

"Goods" includes goods, wares, merchandises and articles of every kind whatsoever, except live animals and cargo which by contract of carriage is stated as being carried on deck and is so carried.

With regards to goods, a distinction has to made between:

Ordinary goods which are carried under deck i.e. which are stowed within the holds of the ship.
Goods which are carried on deck i.e. not within the holds and live animals.
Containers, which are carried under deck or on deck.
Dangerous goods.

Goods Under Deck

Under deck shipments encompass all the goods, except live animals and dangerous goods, which are loaded within the holds of the ship. These goods have to be described in the bill of lading (type, marks, quantity, apparent order and condition, etc.) in such a way that they are easily identified.

Deck Cargo and Live animals

The Hague-Visby Rules don't apply to goods loaded on deck and to live animals. Usually these goods are carried under the responsibility of the master. For these goods, parties may, consequently, depart from the Rules and insert exoneration or exemption clauses in the bill of lading which will be completely lawful. If the owner doesn't want to carry any responsibility for deck cargo or for live animals, he will have to insert an exemption in the bill of lading. In some standard bills if lading,an exoneration clause may be found:

In most national Merchant Shipping Acts, it is stated that the master is liable for damage to goods which he has loaded on deck without the written consent of the shipper. In order to protect himself against this, the bill of lading will bear the following clause: "Shipped on deck at shipper's risk". Without this clause, the contract of carriage can be broken or the shipper can invoke that the carrier committed fraud without any limitation of his liability. In case of damage or shortages, such a clause will put the burden of proof on the receiver of the goods and he will have to prove that the carrier committed a fault or a negligence.

Containers

Containers may be loaded under deck or on deck without the merchant being informed about this.

"(2)Goods may be stowed by the Carrier by means of containers, trailers, transportable tanks, flats, pallets, or similar articles of transport,used to consolidate goods". (COMBICONBILL - Clause 7 (1) Optional Stowage.)

"(2) Containers trailers, transportable tanks and covered flats, whether stowed by the Carrier or received by him in a stowed condition from the Merchant, may be carried on or under deck without notice to the Merchant". (COMBICONBILL - Clause 7 (2) Optional Stowage.)

Dangerous Goods

See further "Dangerous Goods".

Quick Reminder

A distinction has to be made between:

Ordinary goods which are carried under deck.
Goods which are carried on deck.
Containers, which are carried under deck or on deck.
Dangerous goods.

Useful WWW links

http://www.admiraltylawguide.com/supct/Boyd.htm

http://www.gattiassociates.com/CM/Articles/Articles1261.asp

http://www.cgp.gc.ca/cgrp/text/cgrp/faqreg-e.asp

http://ourworld.compuserve.com/homepages/pntodd/cases/cases_k/kron_p.htm

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