HAGUE HAGUE-VISBY AND HAMBURG RULES

INTRODUCTION

An international sale transaction is in essence a sale of goods

What is its special feature? Seller and buyer in different countries

Contract of sale   Contract of carriage Banking contracts Insurance contract  Dispute resolution

INTERNATIONAL CARRIAGE Road Rail Air Sea Multimodal

CARRIAGE OF GOODS BY SEA INTERNATIONAL CONVENTIONS Hague Rules Hague-Visby Rules Hamburg Rules

HAGUE RULES

Liability of the carrier under Common Law Strict Insurer Whether negligent or not

Freedom of contract Contracted out of his liabilities and responsibilities Only liability was “liability to receive freight”

Demand for a law to restrict the freedom of the carrier to contract out of his minimum liabilities in 19th century UK USA – Harter Act, 1893 Australia, 1904 Canada, 1910 New Zealand, 1914  

Demand for unification/harmonization Hague Rules or Brussels Convention of 1924 Hague-Visby Rules, 1968 amending the Hague unit of liability Brussels Protocol of 1979 amending the Hague-Visby unit of liability Hamburg Rules, 1978

COMPARISON OF HAGUE, HAGUE-VISBY AND HAMBURG RULES

SCOPE OF APPLICATION Bills of lading Outward bills of lading Deck cargo Live animals

CARRIER’S BASIC RESPONSIBILITY   Hague and Hague-Visby Rules Sea worthy vessel Care of cargo subject to a list of 17 exemptions    Hamburg Rules General duty of care while goods are in charge of carrier 1

CONTRACTUAL AND ACTUAL CARRIER

PERIOD OF RESPONSIBILITY Hague Rules Tackle-to-tackle liability Hague-Visby Rules Hamburg Rules While the goods are in his charge

DELAY IN DELIVERY Hague Rules Implied Hague-Visby Rules Hamburg Rules Express Consignee entitled to treat the goods as lost if not delivered within 60 consecutive days

LIMITS OF LIABILITY Hague Rules 100 pounds per package Hague-Visby Rules 10,000 francs Poincare per package or 30 francs per kilogramme of gross weight, whichever is higher Brussels Protocol, 1979 666.67 SDR or 2 SDR Hamburg Rules 835 SDR or 2.5 SDR

INTERPRETATIONAL PROBLEMS What is a package? Case law Ø      Gulf Italia Ø      S. S. Navigator Ø      Island Yacht Inc. Ø      Pacific Bear Whether container is a package? Ø      Leather’s Best Ø      Royal Typewriter Ø      Tindefjell Clarification in Hague-Visby and Hamburg Rules – Bill of lading must state that the container contains ‘n’ number of packages

NOTICE OF LOSS Hague Rules Notice at time of removal of goods if loss is apparent and within 3 days if loss is not apparent        Hague-Visby Rules Same as Hague Rules       Hamburg Rules Notice on next working day if loss is apparent and within 15 consecutive days if loss is not apparent

LIMITATION OF ACTION Hague Rules 1 year Hague-Visby Rules 1 year but this period can be extended         Hamburg Rules 2 years and can be extended by declaration or declarations

JURISDICTION

ARBITRATION

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