RULES RELATED TO BILL OF LADING IN COGSA 1925

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 Rules relating to bill of lading:-  Here I am going to describe some of the rules related with bill of lading in the COGSA ( Carriage of goods by sea act) .
Article 2:- Risks 
   In simple terms, the carrier will be responsible and liable for the loading, stowage, carriage, custody, care and discharge of goods in every contract of carriage of goods by sea. Also the carrier will be entitled to the rights and immunities regarding any mishappening during the carriage.

Article 3 :- Responsibilities and liabilities 

  1.     The carrier will have to   a) make ship seaworthy  b) Properly man, equip and supply the ship and c) Make the holds or other cargo spaces fit and safe for reception, carriage and preservation of goods.
  2. Carrier shall properly and carefully load, handle, stow, carry, keep, care for and discharge the goods carried.
  3. After receiving the the goods into his charge the carrier or the master or agent of carrier shall on demand of shipper issue to the shipper a bill of lading.
  4. Such bill of lading shall be prima facie evidence of the receipt by the carrier of the goods. However  proof to the contrary shall not be admissible when the bill of lading has been transferred to a third party acting in good faith.
  5. If the receiver of goods has to give any notice of loss or damage in writing to the carrier or agent within 3 days of receipt of goods. In any event the carrier and ship is discharged of all liabilities if the time exceeds 1 year. However this period can be extended by 3 months by court.
  6. After loading a shipped bill of lading to be issued. But if any other document is issued same may be deemed to constitute a ' shipped bill of lading'.
Article 4:- Rights and immunities
  1. Neither the carrier nor the ship shall be liable for less or damage arising or resulting from unseaworthiness unless caused by due diligence on the part of carrier.
  2. Neither the ship nor the carrier shall be responsible for less or damage arising or resulting from
  • act, neglect, or default of the master, mariner, pilot in the navigation or in the management of ship.
  • fire unless caused by the actual fault or privity of carrier.
  • act of god
  • act of war
  • act of public enemies
  • etc
      3. Neither the carrier nor the ship shall in any event be or become liable for any loss of damage to or in connection with goods in any amount exceeding 666.67 SDR per package or unit or 2 SDR/ kg of gross weight whichever is higher.

Article 5:- Surrender of rights and immunities, and increase of responsibilities and liabilities
       The carrier has liberty to surrender in whole or in part all or any of his immunities and in return he can increase any of his responsibilities and liabilities under the rules provided they should be embodied in the Bill of lading, issued to the shipper.

Article 6:- Special condition
   This section applies to special condition where because of nature of cargo both shipper and carrier are in liberty to go in any agreement regarding carrier's rights and immunities and increase of responsibilities and liabilities, provided that in this case no Bill of Lading has been issued or shall be issued. All the agreed terms shall be embodied in a receipt which shall be non negotiable. Any agreement so entered shall have full legal rights.

Article 7:- Limitation on the application on the rules:-
     This article says that the carrier and the shipper can go to any agreement regarding responsibilities and liabilities of the carrier or ship for loss or damage of goods during loading, carriage or discharging. 

Article 8:- Limitation of liability
      The provision of these rules shall not affect the right and obligation of the carrier under any stature for the time being in force relating to the limitation of the liability of owners of sea going vessel.

Article 9:- The monetary value taken in these rules are to be taken to the gold value.

       

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