HAGUE VISBY RULES

The duties of the ship-owner/carriers are covered under Article (iii) of Hague Visby rules.

I) The carrier is obliged to exercise due diligence before and at the beginning of the voyage in respect of the following:

(a) to make the ship seaworthy

(b) to properly man, equip and supply her

       (c) to make the holds and other places where goods are to be carried fit and safe for their reception carriage and preservation.

II) The carriers duty to exercise due diligence in the above respects is a paramount duty and an overriding obligation. If subsequently it is established that loss of or damage to cargo resulted from failure of the carrier to exercise due diligence, the carrier will not be permitted to avail of the benefit of the protection, otherwise available to him under the rules.

III) The carrier is obliged to properly and carefully load handle, stow, carry and discharge the cargo. The carrier must have a proper system for taking care of cargo during the time he is in custody thereof. This provision includes aspects such as security, ventilation, maintenance of required temperature and avoidance of contamination

(IV) The carrier must demand of the shipper, a bill of loding showing (a) Leading marks necessary for identification of goods. (b) Number of packages or the quantity or weight in writing by the shipper (c) The apparent order and condition of goods.

(V) A bill of lading issue as above must be a ‘shipped’ Bill of lading, provided that the shipper has surrendered any ‘Mate’s Receipt or “Received for shipment” Bill of lading (issued prior to the issue of the bill of lading)

such a Bill of Lading is also a prima-facia evidence of receipt of goods as described therein but proof to the contrary is not admissible where the B/L has been endorsed/transferred to a third party acting in good faith.

CARRIER’S LIABILITIES

(i) Unless the value of goods has been declared by the shipper before shipment and has been inserted in the Bill of lading the carriers liability for loss of or damage to goods is limited as provided in the rules

(ii) Under the Hague Rules, the carriers liability was restricted to G.B. pounds 100 (gold equivalent) per package-unless of course a higher limit had been mutually agreed.

(iii) By Hague Visby amendments in 1968, the above limit was raised to 10,000 francs per package or 30 francs per kilogram (whichever is higher). A frame meant 65.5 mgs of gold of 900/1000 fineness (90% pure gold)

(iv) By amendments in 1979, the above limits were further raised to 666.67 SDR’s per package or 2SDR’s per kg.

(v) The 1968 amendment provided that where a container/pallet or “similar article of transport” is used to consolidate goods, the number of packages mentioned in the B/L as packed in such article of transport shall be deemed to be the number of packages as far as these units are concerned.

RESPONSIBILITIES OF SHIPPER

(i) The shipper is the person who has a legally binding contract with the carrier. It is the shipper’s responsibility to provide accurate information about the cargo.

(ii) Following information must be included in the B/L

(a) Shipper’s identity (b) Vessel name

(c) Port of loading       (d) Port of discharge

(e) Quantity of cargo.

As far as possible the master should insert words viz., ‘shipper figures’ or ‘shore figures’ or ‘weight and quantity unknown’ to protect he carrier from claim short loading date of loading (g) condition of goods (h) freight (i) condition of carriage

(iii) The shipper has to clearly declare, the nature of goods being shipped when goods are being shipped without the knowledge of consent of carrier, the carrier is free to jettison land or destroy the goods without any liability.

(iv) The shipper is responsible for all damages and expenses resulting from the shipment of dangerous goods, even when such goods are shipped with carriers knowledge. The carrier can deal with the goods when they become dangerous to the ship without any liability except general average. But in such a case, the shipper is not liable for any consequential loss.

LIABILITIES OF SHIPPER

1.    If the value of goods has not been declared in the B/L the shipper will get only 666.6 SDR’s per package or  2 SDR’s per kg

2.    In case of loss or damage, written notice must be served on the carrier within are year of delivery of goods.

DIFFERENCE BETWEEN HAGUE RULES AND HAGUE VISBY RULES

1) Under Hague rules (framed in 1920’s) carriers liability was restricted to GB pounds 100 (gold equivalent) per package.

Under Hague-Visby rules, this limit was raised to 10,000 francs (gold equivalent) per package or 30 francs per kg

2) As per Hague Visby rules, the carrier loses his right to limit liability, if the damage to cargo resulted from an act or omission of the carrier, done with the intent to cause such damage. As per Hague rules, no such provision were provided. Thus the carrier could limit his liability to 100 GB pounds even if the damage caused to cargo was done intentionally with the intent to cause damage.