COGSA

	HAGUE RULES	HAGUE VISBY RULES
1	THE RULES SHALL HAVE EFFECT AND NOT FORCE OF LAW	THE RULES ARE FORCE OF LAW
2	CARRIER’S RESPONSIBILITY – 100 POUNDS PER PACKAGE OR UNIT.	CARRIER’S RESPONSIBILITY 666.67 SDR OR 2 SDR PER KG OF GROSS WEIGHT OF GOODS LOST OR DAMAGED, WHICHEVER IS HIGHER.
3	THE CARRIER IS DISCHARGED FROM ALL LIABILITIES IF THERE IS NO ACTION WITHIN 1 YEAR FROM THE DATE OF DELIVERY OF THE GOODS OR THE DATE WHEN THEY SHOULD HAVE BEEN DELIVERED.	THE PERIOD OF 1 YEAR MAY BE EXTENDED IF THE PARTIES SO AGREE AFTER THE CAUSE OF ACTION HAVE ARISEN.
4	CONSIGNEE CAN FILE SUIT ONLY FOR LOSS OR DAMAGE TO THE GOODS.	CONSIGNEE CAN NOT ONLY FILE A SUIT FOR LOSS OR DAMAGE TO THE GOODS BUT ALSO FOR WRONG DELIVERY.
5	NO SUCH PROVISION.	WHEN GOODS ARE TRANSHIPPED BY 2 CARRIERS AND IF THE 2ND CARRIER HAS TO PAY A CLAIM FOR LOSS OR DAMAGE TO CARGO WHILE THE CARGO WAS IN CUSTODY OF THE ORIGINAL CARRIER, THE RULES GIVE 3 MONTHS EXTENSION FROM THE TIME WHEN THE OTHER CARRIER PAYS THE CLAIM IN WHICH TO PURSUE HIS RIGHT OF INDEMNITY AGAINST THE ORIGINAL CARRIER.
6	APPLY ONLY TO OUTWARD B/L.	APPLY TO EVERY B/L, IF THE B/L IS ISSUED IN A STATE OR CARRIAGE IS FROM A PORT IN A CONTRACTING STATE. OR THE B/L PROVIDES THAT HAGUE VISBY RULES ARE TO GOVERN THE CONTRACT.
7	NO SUCH REFERENCE.	SERVANT OR AGENTS OF THE CARRIER IS ENTITLED TO SAME DEFENCES AND LIMITS OF LIABILITY WHICH THE CARRIER IS LIABLE TO INVOKE UNDER THESE RULES.

ARTICLE II – RISKS

SUBJECT TO THE PROVISIONS OF ARTICLE VI OF CARRIAGE OF GOODS BY SEA THE CARRIER, IN RELATION TO LOADING, HANDLING, STOWAGE, CARRIAGE, CUSTODY, CARE AND DISCHARGE OF SUCH GOODS, SHALL BE SUBJECT TO THE RESPONSIBILITIES AND LIABILITIES AND ENTITLED TO THE RIGHTS AND IMMUNITIES SET HORTH HEREIN.

ARTICLE III – SHIPOWNERS RESPONSIBILIES AND LIABILITIES

1.      TO EXERCISE DUE DILIGENCE AND CARE TO MAKE THE SHIP SEAWORTHY, PROPERLY MANNED, EQUIPPED AND SUPPLY THE SHIP TO MAKE IT CARGO WORTHY,

2.      TO MAKE THE HOLDS, REFRIGERATION AND COOL CHAMBERS, AND ALL OTHER PARTS OF THE SHIP IN WHICH GOODS ARE CARRIED, FIT AND SAFE FOR THEIR RECEPTION, CARRIAGE AND PRESERVATION,

3.      TO PROPERLY AND CAREFULLY LOAD, HANDLE, STOW, CARRY, KEEP, CARE AND DISCHARGE THE CARGO SUBJECT TO VARIOUS IMMUNITIES PROVIDED,

4.      AFTER THE GOODS HAVE BEEN RECEIVED ISSUE A BILL OF LADING(TO THE SHIPPER) SHOWING:

1.      LEADING MARKS NECESSARY FOR THE IDENTIFICATION OF THE CARGO,

2.      EITHER THE NUMBER OF PACKAGES OR PIECES OR WEIGHT OR QUANTITY OR AS FURNISHED BY THE SHIPPER,

3.      THE APPARENT CONDITION OF THE CARGO. THERE IS NO OBLIGATION FOR SUCH DETAILS IF THE CARRIER CANNOT SUSPECTS ACCURACY AND CANNOT PHYSICALLY CHECK THE CARGO.

5.      THE BILL OF LADING SHALL BE A PRIME FACIE EVIDENCE OF THE RECEIPT OF THE GOODS BY THE CARRIER AS DESCRIBED THEREIN,

6.      TO ASSURE THE CARRIER OF THE ACCURACY OF THE DECLARATION OF GOODS MADE BY THE SHIPPER, THE SHIPPER SHALL INDEMNIFY THE CARRIER OF ANY LIABILITIES ARISING DUE TO ANY INACCURACIES OF SUCH DECLARATION,

7.      TO RECEIVE A NOTICE OF DAMAGE OR LOSS AT THE PORT OF DISCHARGE AT THE TIME OF DISCHARGING. IF THE LOSS OR DAMAGE IS NOT APPARENT AT THE TIME OF DISCHARGE, THEN SUCH A NOTICE CAN BE GIVEN WITHIN 3 DAYS,

8.      AFTER LOADING TO PROVIDE THE SHIPPER WITH A “SHIPPED B/L”, ON DEMAND.

SEAWORTHINESS UNDER ARTICLE III

1.      THE SHIP SHOULD BE PROPERLY MANNED, EQUIPPED AND SUPPLIED TO MAKE IT CARGO WORTHY,

2.      THE HOLDS, REFRIGERATION AND COOL CHAMBERS, AND ALL OTHER PARTS OF THE SHIP IN WHICH GOODS ARE CARRIED, FIT AND SAFE FOR THEIR RECEPTION, CARRIAGE AND PRESERVATION.

EVOLUTION OF COGSA

1.      IN THE 16^TH AND 17^TH CENTURY WHEN THE INTERNATIONAL COMMERCE WAS DEVELOPING, THE LIABILITIES OF ANY LOSS OR DAMAGE TO CARGO WAS SOLELY ON THE SHIP-OWNER, WHO EVEN ACTED AS CARGO INSURERS AT THAT TIME.

2.      OVER A PERIOD OF TIME, THE SHIPOWNERS STARTED TO REDUCE THEIR LIABILITIES, AT FIRST BY PERILS OF THE SEA AND THEN BY THE CAUSES OF THEIR OWN NEGLIGENCE.

3.      DURING THE 19^TH CENTURY, THE SHIP OWNERS WERE IN A BETTER STATE OF BARGAINING THAN THE SHIPPERS, THE EXEMPTION AND ESCEPTION CLAUSES IN THE CONTRACT OF CARRIAGE BECAME SUCH THAT THE CONCEPT OF B/L ALMOST BECAME WORTHLESS.

4.      THERE WAS A DEMAND BY SHIPPERS, IMPORTERS, BANKERS AND INSURERS TO MAKE LAWS AGAINST THE MONOPOLY OF THE SHIP OWNERS.

5.      ANOTHER DIFFICULTY FACED BY THE MARITIME COMMUNITY WAS THAT THE RULES AND REGULATIONS WERE NOT UNIVERSAL BUT WERE DIFFERENT FOR DIFFERENT COUNTRIES.

6.      THUS IN 1924 THE HAGUE RULES WERE ACCEPTED BY MANY COUNTRIES.

7.      IN THE LATE FIFTIES, THERE WAS A DEMAND TO AMMEND THESE RULES BECAUSE OF THE POUND LOSING ITS CONVERTIBILITY TO GOLD.

8.      THUS IN 1968 THE HAGUE RULES WERE AMMENDED, IN 1977 THEY WERE ADOPTED AS HAGUE VISBY RULES AND IN 1984 THEY CAME INTO FORCE.

9.      INDIA ADOPTED THE HAGUE VISBY RULES BY AMMENDING THE CARRIAGE OF GOODS BY SEA ACT.