Carriage of Goods By Sea Act (Cap. 48:02) No. 7 of 1926

Act 7 of 1926 Amended by 12of1990 Current Authorised Pages Pages Authorised (inclusive) by L.R.O. 1-11 1/1991 Carriage of Goods by Sea Note on Subsidiary Legislation SECTION 1. Short title. 2. Application of Rules in Schedule. 3. No absolute implied warranty of seaworthiness. 4. Statement as to application of Rules to be included in bills of lading. 5. Modification of Article VI of Rules in relation to State trade. 6. Modification of Article III in relation to bulk cargoes. 7. Act not to affect sections 446-450, 502-3 of Merchant Shipping Act 1894. SCHEDULE. 1961 Ed. AN ACT with respect to the carriage of goods by sea. Cap. 287. 7 of 1926. Short title. 1. This Act may cited as the CARRIAGE OF GOODS BY SEA ACT. Application of Rules in Schedule. No absolute implied warranty of seaworthiness. Statement as to application of Rules to be included in bills of lading. Modification of Article VI of Rules in relation to State trade. Modification of Article III in relation to bulk cargoes. 2. Subject to this Act, the Rules in the Schedule shall have effect in relation to and in connection with the carnage of goods by sea in ships carrying goods from any port in the State to any port outside the State. 3. There shall not be implied in any contract for the carriage of goods by sea to which the Rules apply any absolute undertaking by the carner of the goods to provide a seaworthy ship. 4. Any bill oflading or similar document of title issued in the State which contains or is evidence of any contract to which the Rules apply shall contain an express statement that it is to have effect subject to the said Rules as applied by this Act. s. Article VI of the Rules shall, in relation to the carriage of goods by seain ships carrying goods from any port in the State to any other port in the State, have effect as though the said Article referred to goods of any class instead of to particular goods and as though the proviso to the second paragraph of the said Article were omitted. 6. Where under the custom of any trade, the weight of any bulk cargo inserted in the bill oflading is a weight ascertained or accepted by a third party other than the carner or the shipper and the fact that the weight is so ascertained or accepted is stated in the bill of lading, then, notwithstanding anything in the Rules, the bill of lading shall not be deemed to be prima facie evidence against the carner of the receipt of goods of the weight so inserted in the bill of lading, and the accuracy thereof at the time of shipment shall not be deemed to have been guaranteed by the shipper. Carriage of Goods by Sea 7. Nothing in this Act shall affect the operation of sections 446 to Ordinance not to 450, both inclusive, 502, and 503 of the Merchant Shipping Act 1894 1~~~;;ct;~~~3of of the United Kingdom as amended by any subsequent enactment or the Merch~t operation of any other enactment for the time being in force limiting the ShiPPin~t) ct li bili· f th f· 1 1894(U. .a ty 0 e owners 0 seagomg vesse s. Article I DEFINITIONS "carrier" includes the owner or the charterer who enters into a contract of carriage with a shipper; "contract of carriage" applies only to contracts of carriage covered by , a bill oflading or any similar document of title, in so far as such document relates to the carriage of goods by sea, including any bill oflading or any similar document issued under or pursuant to a charter party from the moment at which such bill oflading or similar document of title regulates the relations between a carrier and a holder of the same; "goods" includes goods, wares, merchandises and articles of every kind whatsoever, except live animals and cargo which by the con tract of carriage is stated as being carried on deck and is so carried; "ship" means any vessel used for the carriage of goods by sea; "carriage of goods" covers the period from the time when the goods are loaded on to the time when they are discharged from the ship. Article II RISKS Subject to Article VI, under every contract of carriage of goods by sea the carrier, in relation to the loading, handling, stowage, carriage, L.R.O.l/1991 Carriage ojGoods by Sea custody, care and discharge of such goods, is subject to the responsibili ties and liabilities, and entitled to the rights and immunities hereinafter set forth. Article III RESPONSmILITIES ANDUABILmES 1. The carrier shall be bound before and at the beginning of the voyage to exercise due diligence to (a) make the ship seaworthy; (b) properly man, equip, and supply the ship; (c) make the holds, refrigerating and cool chambers and all other parts of the ship in which goods are carried, fit and safe for their reception, carriage and preservation. 2. Subject to Article IV, the carrier shall properly and carefully load, handle, stow, carry, keep, care for and discharge the goods carried. 3. Mter receiving the goods into his charge, the carrier, or the master or agent of the carrier, shall, on demand of the shipper, issue to the shipper a bill oflading showing among other things (a) the leading marks necessary for identification of the goods as the same are furnished in writing by the shipper before the loading of the goods starts, provided the marks are stamped or otherwise shown clearly upon the goods if uncovered, or on the case or coverings in which the goods are contained, in such a manner as should ordinarily remain legible until the end of the voyage; (b) either the number of packages or pieces, or the quantity or weight, as the case may be, as furnished in writing by the shipper; (c) the apparent order and condition of the goods: Provided that no carrier, master or agent of the carrier shall be bound to state or show in the bill oflading any marks, number, quantity or weight which he has reasonable ground for suspecting does not accurately represent the goods actually received, or which he has had no reasonable means of checking. 4. Such a bill oflading shall be primafacie evidence of the receipt by the carrier of the goods as therein described in accordance with paragraph 3(a), (b) and (c). S. The shipper shall be deemed to have guaranteed to the carrier the accuracy at the time of shipment of the marks, number, quantity and weight as furnished by him, and the shipper shall indemnify the carrier against all loss, damages and expenses arising or resulting from inaccu racies in such particulars. The right of the carrier to this indemnity shall in no way limit his responsibility and liability under the contract of carriage to any person other than the shipper. 6. Unless notice of loss or damage and the general nature of the loss or damage is given in writing to the carrier or his agent at the port of discharge before or at the time of the removal of goods into the custody of the person entitled to delivery thereof under the contract or carriage, or, if the loss or damage is not apparent, within three days, the removal shall be prima facie evidence of the delivery by the carrier of the goods as described in the bill of lading. The notice in writing need not be given if the state of the goods has at the time of their receipt been the subject of joint surveyor inspection. In any event the carrier and the ship shall be discharged from all liability in respect of loss or damage unless suit is brought within one year after delivery of the goods or the date when the goods should have been delivered. In the case of any actual or apprehended loss or damage the carrier and the receiver shall give all reasonable facilities to each other for inspecting and tallying the goods. 7. After the goods are loaded the bill of lading to be issued by the carrier, master or agent of the carrier to the shipper shall, if the shipper so demands, be a "shipped" bill of lading; but, if the shipper has previously taken up any document of title to the goods, he shall surrender the same as against the issue of the "shipped" bill of lading, but at the option of the carrier, the document of title may be noted at the port of shipment by the carrier, master or agent with the name or names of the ship or ships upon which the goods have been shipped and the date or dates of shipment, and when so noted the document shall for the purpose of this Article be deemed to constitute a "shipped" bill of lading. Carriage of Goods by Sea 8. Any clause, covenant or agreement in a contract of carriage relieving the carrier or the ship from liability for loss or damage to or in connection with goods arising from negligence, fault or failure in the duties and obligations provided in this Article or lessening such liability otherwise than as provided in these Rules, shall be null and void and of no effect. A benefit of insurance or similar clause shall be deemed to be a clause relieving the carrier from liability. Article IV RIGHTS AND IMMUNITIES 1. Neither the carriernorthe ship shall be liable for loss or damage arising or resulting from unseaworthiness unless caused by want of due diligence on the part of the carrier to make the ship seaworthy, and to secure that the ship is properly manned, equipped and supplied, and to make the holds, refrigerating and cool chambers and all other parts of the ship in which goods are carried fit and safe for their reception, carriage and preservation in accordance with paragraph I of Article III. Whenever loss or damage has resulted from unseaworthiness, the burden of proving the exercise of due diligence shall be on the carrier or other person claiming exemption under this Article. 2. Neither the carrier nor the ship shall be responsible for loss or damage arising or resulting from (a) act, neglect or default of the master, mariner, pilot orthe servants of the carrier in the navigation or in the man agement of the ship; (b) fire, unless caused by the actual fault or privity of the carrier; (c) perils, dangers and accidents of the sea or other naviga ble waters; (d) act of God; (e) act of war; (f) act of public enemies; (g) arrest or restraint of heads of State, heads of Govern ment or people, or seizure under legal process; (h) quarantine restrictions; (i) act or omission of the shipper or owner of the goods, his agent or representative; (j) strikes or lock-outs or stoppage or restraint of labour from whatever cause, whether partial or general; (k) riots and civil commotions; (l) saving or attempting to save life or property at sea; (m) wastage in bulk or weight or any other loss or damage arising from inherent defect, quality or vice of the goods; (n) insufficiency of packing; (0) insufficiency or inadequacy of marks; (p) latent defects not discoverable by due diligence; (q) any other cause arising without the actual fault or privity of the carrier, or without the fault or neglect of the agents or servants of the carrier, but the burden of proof shall be on the person claiming the benefit of this exception to show that neither the actual fault or privity of the carrier nor the fault or neglect of the agents or servants of the carrier contributed to the loss or damage. 3. The shipper is not responsible for loss or damage sustained by the carrierorthe ship arising or resulting from any cause without the act, fault or neglect of the shipper, his agents or his servants. 4. Any deviation in saving or attempting to save life or property at sea, or any reasonable deviation shall not be deemed to be an infringe ment or breach of these Rules or of the contract of carriage, and the carrier is not liable for any loss or damage resulting therefrom. S. Neither the carrier nor the ship shall in any event be or become liable for any loss or damage to or in connection with goods in an amount exceeding four hundred and eighty dollars per package or unit, or the equivalent of that sum in other currency, unless the nature and value of the goods have been declared by the shipper before shipment and inserted in the bill of lading. This declaration if embodied in the bill oflading shall be prima facie evidence, but shall not be binding or conclusive on the carrier. By agreement between the carrier, master or agent of the carrier and the shipper, another maximum amount than that mentioned in this paragraph may be fixed, but that maximum shall not be less than the figure above named. Neither the carriernor the ship shall be responsible in any event for loss or damage to orin connection with goods if the nature or value thereof has been knowingly misstated by the shipper in the bill oflading. 6. Goods of an inflammable, explosive or dangerous nature to the shipment whereof the carrier, master or agent of the carrier, has not consented, with knowledge of their nature and character, may at any time before discharge be landed at any place or destroyed or rendered innocuous by the carrier without compensation, and the shipper of those goods is liable for all damages and expenses directl y orindirectly arising out of or resulting from the shipment. If any such goods shipped with such knowledge and consent becomes a danger to the ship or cargo, they may in like manner be landed at any place or destroyed or rendered innocuous by the carrier without liability on the part of the carrier except to general average, if any. Article V SURRENDER OF RIGHTS AND IMMUNITIES, AND INCREASE OF RESPON SIBIUTIES AND LIABIUTIES A carrier is at liberty to surrender in whole or in part all or any of his rights and immunities or to increase any of his responsibilities and liabilities under the Rules contained in any of these Articles, provided the surrender or increase is embodied in the bill of lading issued to the shipper. The provisions of these Rules shall not be applicable to charterparties, but if bills oflading are issued in the case of a ship under a charterparty they shall comply with the terms of these Rules. Nothing in these Rules shall be held to prevent the insertion in a bill oflading of any lawful provision regarding general average. Article VI SPECIAL CONDITIONS Notwithstanding the provisions of Articles I to V, a carrier, master or agent of the carrier, and a shipper shall, in regard to any particular goods, be at liberty to enter into any agreement in any terms as to the responsibility and liability of the carrier for such goods, and as to the rights and immunities of the carrier in respect of such goods or his obligation as to seaworthiness, so far as this stipulation is not contrary to public policy, or the care or diligence of his servants or agents in regard to the loading, handling, stowage, carriage, custody, care and discharge of the goods carried by sea, provided that in this case no bill oflading has been or is issued and that the terms agreed are embodied in a receipt which shall be a non-negotiable document and shall be marked as such. Any agreement so entered into shall have full legal effect: Provided that this Article shall not apply to ordinary commercial shipments made in the ordinary course of trade, but only to other shipments where the character or condition of the property to be carried or the circumstances, terms and conditions under which the carriage is to be performed, are such as reasonably to justify a special agreement. Article VII UMIT AnONS ON THE APPUCA nON OF THE RULES Nothing herein contained shall prevent a carrier or a shipper from entering into any agreement, stipulation, condition, reservation or exemption as to the responsibility and liability of the carrier or the ship for the loss or damage to orin connection with the custody and care and handling of goods prior to the loading on and subsequent to the discharge from the ship on which the goods are carried by sea. Article VIII UMIT AnON OF UABIUTY These Rules shall not affect the rights and obligations of the carrier under any statute for the time being in force relating to the limitation of the liability of owners of sea-going vessels. The monetary units mentioned in these Rules are to be taken to be gold value.