Carriage of Goods by Sea
History of Carriage of Goods by Sea
o Asymmetrical bargaining power of the carrier and shipper in carriage of goods by sea
contracts in the 19th century – the carrier could unilaterally allocate risk to minimise
his liability
o Whatever terms were presented to carrier, there would be little or no choice
as to the shipper to accept those terms of the contract
o Exclusion of liability clause – unreasonable – exclude liability for a lot of
things – unregulated
o A need to limit their power, redress the balance of power in favour of shipper
o This led to the introduction of a well-developed body of law on the carriage of
goods, which has contributed to the general development of the law of contract
o Goods have to be transported and carried if transactions have to happen in relation
to goods
1. Harter Act 1893 (US)
a. Sought to limit shipowner power and redress balance between shipper and
carrier
2. International Convention for the Unification of certain rules of law relating to bills of
lading 1924 (Hague Rules)
a. First attempt at harmonised rules
b. Protection given to shipper
c. Implemented into UK law by COGSA 1924
3. Protocol to amend Hague Rules (HV Rules)
a. Implemented into UK law by COGSA 1971
4. UN Convention on the Carriage of Goods by Sea 1978 (Hamburg Rules)
a. Not a great success
5. Carriage of Goods by Sea Act 1992
6. 2009 UN Convention on Contracts for the International Carriage of Goods Wholly or
Partly by Sea (Rotterdam Rules)
a. Latest attempt at harmonised rules
b. Would regulate multi-modal transport
c. Not implemented by UK
d. Exclusion of liability rules amended – more generous for shipper - Modern
e. BUT not good for big business, don’t want to upset carrier if its liability is not
effectively limited so they can carry out business
o HV Rules still used but are considered a 20th century mentality
o Suggestions for reform to regulate the carrier more – but the carrier will no longer
want to do business in England if this will be the case, same with companies being
taxed
29
History of Carriage of Goods by Sea
o Asymmetrical bargaining power of the carrier and shipper in carriage of goods by sea
contracts in the 19th century – the carrier could unilaterally allocate risk to minimise
his liability
o Whatever terms were presented to carrier, there would be little or no choice
as to the shipper to accept those terms of the contract
o Exclusion of liability clause – unreasonable – exclude liability for a lot of
things – unregulated
o A need to limit their power, redress the balance of power in favour of shipper
o This led to the introduction of a well-developed body of law on the carriage of
goods, which has contributed to the general development of the law of contract
o Goods have to be transported and carried if transactions have to happen in relation
to goods
1. Harter Act 1893 (US)
a. Sought to limit shipowner power and redress balance between shipper and
carrier
2. International Convention for the Unification of certain rules of law relating to bills of
lading 1924 (Hague Rules)
a. First attempt at harmonised rules
b. Protection given to shipper
c. Implemented into UK law by COGSA 1924
3. Protocol to amend Hague Rules (HV Rules)
a. Implemented into UK law by COGSA 1971
4. UN Convention on the Carriage of Goods by Sea 1978 (Hamburg Rules)
a. Not a great success
5. Carriage of Goods by Sea Act 1992
6. 2009 UN Convention on Contracts for the International Carriage of Goods Wholly or
Partly by Sea (Rotterdam Rules)
a. Latest attempt at harmonised rules
b. Would regulate multi-modal transport
c. Not implemented by UK
d. Exclusion of liability rules amended – more generous for shipper - Modern
e. BUT not good for big business, don’t want to upset carrier if its liability is not
effectively limited so they can carry out business
o HV Rules still used but are considered a 20th century mentality
o Suggestions for reform to regulate the carrier more – but the carrier will no longer
want to do business in England if this will be the case, same with companies being
taxed
29
