Special Contracts in Maritime Commerce

Charter Party
CHARTER PARTY
Contract by virtue of which the owner or the agent of a vessel binds himself to
transport merchandise or persons for a fixed price. It has also been defined as a
contract by virtue of which the owner or the agent of the vessel for the
transportation of goods or persons from one port to another.
PERSONS WHO MAY MAKE A CHARTER
1. Owner of the vessel, either in whole or in majority part, who have legal control
and possession of the vessel
2. Charterer may sub charter entire vessel to third person only if not prohibited in
original charter. (Art.679)
3. Ship agent if authorized by the owner/s or given such power in the certificate of
appointment. (Art.598)
4. Captain in the absence of the ship agent or consignee and only if he acts in
accordance with the instructions of the agent or owner and protects the latters
interests. (Art.609)
REQUISITES OF A VALID CHARTER PARTY
1. Consent of the contracting parties
2. Existing vessel which should be placed at the disposition of the shipper
3. Freight
4. Compliance with Art. 652 of the Code of Commerce
Parties:
1. Ship owner or ship agent
2. Charterer
Classes:
1. Bareboat or demise

The charterer provides crew, food and fuel. The charterer is liable as if he were the
owner, except when the cause arises from the unworthiness of the vessel. The ship
owner leases to the charterer the whole vessel, transferring to the latter the entire
command, possession and consequent control over the vessels navigation,
including the master and the crew, who thereby become the charters servants. It
transforms a common carrier into a private carrier.
Classes:
1. Bareboat or demise
- The charterer provides crew, food and fuel. The charterer is liable as if he were the
owner, except when the cause arises from the unworthiness of the vessel. The
shipowner leases to the charterer the whole vessel, transferring to the latter the
entire command, possession and consequent control over the vessels navigation,
including the master and the crew, who thereby become the charters servants. It
transforms a common carrier into a private carrier.
The charterer becomes the owner of the vessel pro hac vice, just for that one
particular purpose only. Because the charterer is treated as owner pro hac vice , the
charterer assumes the customary rights and liabilities of the shipowner to third
persons and is held liable for the expense of the voyage and the wages of the
seamen.
2. Contract of Affreightment
- A contract whereby the owner of the vessel leases part or all of its space to haul
goods for others. The ship-owner retains the possession, command and navigation
of the ship, the charterer merely having use of the space in the vessel in return for
his payment of the charter hired.
Kinds:
a. Time charter vessel is chartered for a fixed period of time or duration of voyage.
b. Voyage or trip charter the vessel is leased for one or series of voyages usually for
purposes of transporting goods for charterer.
BAREBOAT OR DEMISE CHARTER
Charterer becomes liable to others
caused by its negligence
Charterer regarded as owner pro hac
vice for the voyage
Owner of vessel relinquishes
possession, command and navigation
to charterer

CONTRACT OF AFFREIGHTMENT
(TIME OR VOYAGE CHARTER)
Owner remains liable as carrier and must
answer for any breach of duty
Charterer is not regarded as owner
The vessel owner retains possession,
command and navigation of the ship

Common carrier is converted to

private carrier

Common carrier is not converted to a

private carrier.

RIGHTS AND OBLIGATION OF THE CHARTER PARTY.

SHIPOWNER OR SHIP AGENT

CHARTERER

1.If the vessel is chartered wholly, not to

accept cargo from others;

1. To pay the agreed charter price.

2.To observe represented

capacity

3.To unload cargo clandestinely placed

2. To pay freightage on unboarded

cargo;
3. To pay losses to others for loading
uncontracted cargo and illicit cargo

4. To substitute another vesselif load is less

than 3/5 of capacity;

4. To wait if the vessel needs repair.

5. To leave the port if the charterer does

not bring the cargo within the lay days
allowed.

5. To pay for expenses for

deviation.

6. To place in a vessel in a condition to

navigate.
7. To bring cargo to nearest neutral port in
case of war or blockade

RESCISSION OF CHARTER PARTY

At charterer's request

1. by abandoning the charter and paying half of the freightage

2. error in tonnage or flag
3. failure to place the vessel at the charterer's disposal
4. return of the

vessel due to pirates, enemies

5. arrival at the

port for

repairs

or badweather

B. At ship owners request

1. If the extra lay days terminate without cargo being placed alongside the vessel
2. Sale by the owner of the vessel before loading
C. Fortuitous causes
1. war
2. blockade
3. prohibition to receive cargo
4. embargo
5. inability of the vessel

to navigate

Caltex [Philippines], Inc. vs. Sulpicio Lines, Inc.

On December 20, 1987, motor tanker MV Vector, carrying petroleum products of
Caltex, collided with passenger ship MV Doa Paz. Among those who died were
Sebastian Canezal and his daughter Corazon Canezal. On March 22, 1988, the board
of marine inquiry found that Vector Shipping Corporation was at fault.
Caltex [Philippines], Inc. vs. Sulpicio Lines, Inc.
Teresita Caezal and Sotera E. Caezal, filed with the RTC a complaint for damages
arising from breach of contract of carriage against Sulpicio Lines.
Sulpicio filed a third-party complaint against Vector and Caltex.
Caltex [Philippines], Inc. vs. Sulpicio Lines, Inc.
Issue:
Is the charterer (Caltex) of a sea vessel liable for damages resulting from a collision
between the chartered vessel and a passenger ship?
Is M/T Vector considered a common carrier?

Caltex [Philippines], Inc. vs. Sulpicio Lines, Inc.

RULING:
1. NO.
Petitioner and Vector entered into a contract of affreightment.
A contract of affreightment may be either time charter, wherein the leased vessel is
leased to the charterer for a fixed period of time, or voyage charter, wherein the
ship is leased for a single voyage.

Caltex [Philippines], Inc. vs. Sulpicio Lines, Inc.

In both cases, the charter-party provides for the hire of the vessel only, the ship
owner to supply the ships store, pay for the wages of the master of the crew, and
defray the expenses for the maintenance of the ship.
If the charter is a contract of affreightment, which leaves the general owner in
possession of the ship as owner for the voyage, the rights and the responsibilities of
ownership rest on the owner.
The charterer is free from liability to third persons in respect of the ship.

Caltex [Philippines], Inc. vs. Sulpicio Lines, Inc.

2. YES.
The charter party agreement did not convert the common carrier into a private
carrier.
The parties entered into a voyage charter, which retains the character of the vessel
as a common carrier. It is imperative that a public carrier shall remain as such,
notwithstanding the charter of the whole or portion of a vessel by one or more
persons, provided the charter is limited to the ship only, as in the case of a timecharter or voyage charter. I

Caltex [Philippines], Inc. vs. Sulpicio Lines, Inc.

It is only when the charter includes both the vessel and its crew, as in a bareboat or
demise that a common carrier becomes private, at least insofar as the particular
voyage covering the charter-party is concerned.
A ship-owner in a time or voyage charter retains possession and control of the ship,
although her holds may, for the moment, be the property of the charterer.
BOTTOMRY AND RESPONDENTIA
Loan on Bottomry
The contract of Bottomry is in the nature of a mortgage of a ship, when the owner of
it borrows money to enable him to carry on the voyage, and pledges the keel or
bottom of the ship, as a security for the repayment.

Ship safely arrives = payment plus interest

Ship sinks/lost/destroyed/disintegrated/etc.. = loan extinguished**
Respondentia
The loan is made upon the goods and merchandize laden upon the vessel, which
from their nature must be sold or exchanged in the course of the voyage.
Bottomry vs. Respondentia
Practically the same.

Requisites
Ship owner borrows money for use, equipment or repair of vessel;
2. For a definite term and with extraordinary interest called premium;
3. Secured by pledge of vessel or portion thereof in the case of loan on bottomry or
pledge of goods with respect to respondentia;

4. Loan repayment depends or conditioned on the safe arrival of the vessel for
bottomry, or safe arrival of goods for respondentia and obligation to repay is
extinguished if pledged goods are lost;
5. Obligation to repay is extinguished if vessel is lost due to specified marine perils
in the course of voyage or within limited time.

Parties
Bottomry Ship owner. If part owner only, any bottomry that he may contract shall
be limited only to the extent of his interest in the vessel.
There are instances when the captain, although he has no interest in the ship, may
enter into a loan on bottomry on account of extreme necessity.
Respondentia Cargo owner.
Consequences of Loss
HYPOTHECARY NATURE OF BOTTOMRY AND RESPONDENTIA:
General Rule: the obligation of the borrower to pay is extinguished if the goods
given as security are absolutely lost by reason of an accident of the voyage
designated, and if it is proven that the goods were on board.

EXCEPTIONS:
loss due to inherent defect
loss due to the barratry on the part of the captain
loss due to the fault or malice of the borrower
that the vessel is engaged in contraband
that the cargo loaded on the vessel be different from that agreed upon

Consequences of Loss
If what transpires is a shipwreck, the amount for the payment of the loan shall be
reduced to the proceeds of the effects which have been saved but only after
deducting the costs of the salvage.

If the loan should be on vessel or any of her parts, the freight earned during the
voyage for which the loan was contracted shall also be liable for its payment, as far
as it may reach.

Distinguished from Simple Loan

Distinguished from Simple Loan
Bottomry is considered as simple loan when:
Lender loaned an amount larger than the value of the object due to fraudulent
means employed by the borrower (art 726 code of commerce)
Full amount of the loan is not used for the cargo or given on the goods if all of them
could not have been loaded, the balance will be considered a simple loan (art 727
Code of Commerce)
If the effects on which the money is taken is not subjected to any risk (729 Code of
commerce)

CARRIAGE OF GOODS BY THE SEA ACT

(COGSA)

Background of the COGSA

April 16, 1936
Public Act No. 521 aka COGSA was approved by the 74th US Congress
October 22, 1936
COGSA was made applicable to the Philippines upon the election and
approval of Commonwealth Act No. 65 by the National Assembly of the
Commonwealth Government
1936-1950
COGSA governed contracts of carriage of goods by sea from the US to
Philippine ports.

August 30, 1950

the New Civil Code of 1949 (RA 386) came into effect

Purpose of the COGSA

governs the rights and responsibilities between shippers of cargo and ship-owners
regarding ocean shipments

defines the terms used in shipping

prescribes the maximum amount for the limitation of the ship-owners liability

stipulates the period for prescription

Applicability of the COGSA
REQUISITES
There must be a contract of carriage between the ship-owner or its agent and the
shipper;
The contract must be for the carriage of goods;
For transportation by sea; and
in foreign trade, UNLESS expressly agreed upon by the parties to apply in domestic
shipping.
Applicability of the COGSA
GOVERNING LAW
1. Private Carrier coming to the Philippines
First: COGSA
Second:

Code of Commerce

Third: Civil Code as to provisions

for damages, torts, and contracts

Applicability of the COGSA

GOVERNING LAW
2. Common Carrier coming to the Philippines
First: Civil Code provisions
on common carriers
Second:

COGSA

Third: Code of Commerce

Applicability of the COGSA
GOVERNING LAW
3. Private or Common Carrier going to a foreign country
General Rule: Law of the country of destination as provided by Art. 1753 of
the Civil Code
Exception: Expressly agreed upon by the parties

RISKS (Sec. 2)
General Rule
under every contract of carriage of goods by sea, the carrier in relation to
the loading, handling, stowage, carriage, custody, care and discharge of such
goods, shall be subject to the responsibilities and liabilities in Section 3 and entitled
to the rights and immunities in Section 4.
SPECIAL CONDITIONS (Sec. 6)
Exception
a carrier, master or agent of the carrier and a shipper may 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 in so far as 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 goods carried by sea.

SPECIAL CONDITIONS (Sec. 6)

HOWEVER, the foregoing shall apply only where no bill of lading has been or
shall be issued AND that the terms agreed shall be embodied in a receipt which
shall be a non-negotiable document and shall be marked as such.

Such agreement shall have full legal effect. However, it will 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 circumstance, terms and condition under which the carriage is to be performed
are such as reasonably to justify a special agreement.
RESPONSIBILITIES & LIABILITIES (Sec. 3)
(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 cooling chambers, and all other parts of
the ship in which goods are carried, fit and safe for their reception carriage and
preservation.
(2) The carrier shall properly and carefully load, handle, stow, carry, keep, care for,
and discharge the goods carried.
BILL OF LADING
RESPONSIBILITIES & LIABILITIES (Sec. 3)
After 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 of lading showing
among other things
(a) The leading marks necessary for identification of the goods
(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 in the bill of lading any
marks, number, quantity, or weight which he has reasonable ground for suspecting
not accurately to represent the goods actually received, or which he has had no
reasonable means of checking.

BILL OF LADING
RESPONSIBILITIES & LIABILITIES (Sec. 3)
Purpose of a Bill of Lading
- prima facie evidence of the receipt by the carrier of the goods as therein
described. [Sec. 3 (4)]
- guarantees the accuracy of the mark, number, quantity and weight of the
goods as furnished by the shipper. [Sec. 3 (5)]
- Effect of Inaccuracy: shipper becomes liable for indemnity to the carrier.
[Sec. 3 (5)]
LIMITATION OF LIABILITY
RIGHT AND IMMUNITIES (Sec. 4)
Art. 1749 Civil Code - expressly permits a stipulation limiting the liability of a
common carrier to the value of the goods appearing in the bill of lading.
COGSA [Sec.4 (5)] suppletory to the Civil Code, limits the carriers liability to $500
per package in the absence of a declaration of a higher value of the goods by the
shipper in the bill of lading

LIMITATION OF LIABILITY
RIGHT AND IMMUNITIES (Sec. 4)
CONDITIONS FOR LIMITATION OF LIABILITY:
1. Stipulation to limit liability, no higher value declared for the goods
- apply the maximum liability in COGSA:
$500 per package, or
Per customary freight unit
Ex.

Value of package:

$700

No higher value declared

Limitation on Liability:
Recover:

$500
$500/package

LIMITATION OF LIABILITY
RIGHT AND IMMUNITIES (Sec. 4)
2. Stipulation to limit liability, shipper declared a higher valuation and paid the
proper adjustment fees
- the shipper may recover the value of the lost or damaged goods at the time
payment is to be made

Ex.

Declared value of the package: $700

- with payment of corresponding charges
Value of package at the time of payment:
$700
Recover:

$700

( or as provided in the carriers schedule of limited liability)

LIMITATION OF LIABILITY
RIGHT AND IMMUNITIES (Sec. 4)
3. No stipulation to limit liability, No higher value declared
- apply the maximum liability in COGSA:
$500 per package, or
Per customary freight unit
- PROVIDED: not more than the amount of damage actually sustained

Ex.

Value of the package:

$800

Damage sustained:

$400

Maximum Liability:

$500

Recover:

$400

LIMITATION OF LIABILITY
RIGHT AND IMMUNITIES (Sec. 4)
4. Stipulation to limit liability, parties agree that the carriers liability shall be more
than $500/package:

apply the higher limit on liability as agreed upon

5. Stipulation to limit liability below $500/package provided in COGSA

- apply the lower limit on liability as agreed upon by the parties in the Bill of
Lading
LIMITATION OF LIABILITY
RIGHT AND IMMUNITIES (Sec. 4)

6. Neither the carrier nor the ship shall be responsible in any event for loss or
damage to or in connection with the transportation of the goods if the nature or
value thereof has been knowingly and fraudulently misstated by the shipper in the
bill of lading.

7. A stipulation relieving the carrier or the ship from liability for loss or damage to
or in connection with the goods, arising from negligence, fault, or failure in the
duties and obligations, or lessening such liability, shall be null and void and of no
effect. [Sec. 3 (8)]
PERIOD OF PRESCRIPTION
RESPONSIBILITIES & LIABILITIES (Sec. 3)
Unless notice of loss or damage and the general nature of such loss or damage be
given in writing to the carrier or his agent at the port of discharge before or at the
time of the removal of the goods into the custody of the person entitled to delivery
thereof under the contract of carriage, such removal shall be prima facie evidence
of the delivery by the carrier of the goods as described in the bill of lading. If the
loss or damage is not apparent, the notice must be given within three days of the
delivery.
PERIOD OF PRESCRIPTION
RESPONSIBILITIES & LIABILITIES (Sec. 3)
Said notice of loss or damage maybe endorsed upon the receipt for the goods
given by the person taking delivery thereof.

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 survey or inspection.

PERIOD OF PRESCRIPTION
RESPONSIBILITIES & LIABILITIES (Sec. 3)
General Rule: The carrier and the agent shall be discharged from liability in respect
of loss or damage to the goods carried by sea unless suit is brought within one (1)
year:
In case of damaged goods:
after delivery was made
In case of non-delivery of goods (i.e. lost)
after the date when the goods should have been delivered (or the date when the
ship left the port of destination).

PERIOD OF PRESCRIPTION
RESPONSIBILITIES & LIABILITIES (Sec. 3)
WHY ONE (1) YEAR?
to meet the exigencies of maritime hazards;
to provide the carrier an opportunity to look for the lost goods;
to discover who was at fault; and
in case of transshipment, to determine, when and where the damage occurred
PERIOD OF PRESCRIPTION
RESPONSIBILITIES & LIABILITIES (Sec. 3)
DELIVERY:
- delivery to the arrastre operator and NOT to the consignee .
REASON:
That delivery is evidenced by tally sheets which show whether the goods were
landed in good order or in bad order, a fact which the consignee or shipper can
easily ascertain through the customs broker. To use as basis for computing the oneyear period the delivery to the consignee would be unrealistic and might generate
confusion between the loss or damage sustained by the goods while in the carriers
custody and the loss or damage caused to the goods while in the arrastre operators
possession. (Union Carbide Phils., Inc. vs. Manila Railroad Co., 77 SCRA 359)

PERIOD OF PRESCRIPTION
RESPONSIBILITIES & LIABILITIES (Sec. 3)
When is there LOSS?
As defined in Article 1169 of the New Civil Code
LOSS contemplates merely a situation where no delivery at all was made by the
shipper of the goods because the same
had perished,
gone out of commerce, or
disappeared in such a way that their existence is unknown or they cannot be
recovered.
It does not include a situation where there was indeed delivery but delivery was to
the wrong person, or a misdelivery.
PERIOD OF PRESCRIPTION
RESPONSIBILITIES & LIABILITIES (Sec. 3)
MISDELIVERY or CONVERSION of goods
- delivery to the wrong person
In case of misdelivery or conversion, the rules on prescription found in the Civil
Code shall apply:
Breach of a Written Contract
Ten (10) years from the time
the right of action accrues (Art. 1144 NCC)
Quasi-Delict
Four (4) years from the time
the right of action accrues (Art. 1146 NCC)
PERIOD OF PRESCRIPTION
RESPONSIBILITIES & LIABILITIES (Sec. 3)
Extrajudicial demand for loss or damage does NOT interrupt the period of
prescription. (Dole Phils., Inc. vs. Maritime Co. of the Philippines, 148 SCRA 118)

Pendency of an extrajudicial claim for damages (include arbitration, negotiations,

amicable settlement) filed with the carrier does NOT suspend the running of the
prescriptive period, unless there is an express agreement to the contrary. (Chua Kuy
vs. Everett Steamship Corporation, G.R. No. L-5554, May 27, 1953)
PERIOD OF PRESCRIPTION
RESPONSIBILITIES & LIABILITIES (Sec. 3)
3.
Prescription of actions is interrupted when they are filed before the court (Art.
1155 NCC). Also, in an action commenced in time, the plaintiff fails otherwise than
upon the merits, and the time limited for the commencement of such action has, at
the date of such failure, expired, the plaintiff may commence a new action within
one year after such date. (F.H. Stevens & Co., Inc. vs. Norddeuscher Llyod, 6 SCRA
182-183)
PERIOD OF PRESCRIPTION
RESPONSIBILITIES & LIABILITIES (Sec. 3)
4.
Persons who can give notice to, and bring suit against the carrier: (a) the
shipper, or (b) the consignee, or (c) any legal holder of the bill of lading, like the
indorsee or the subrogee, such as an insurer whether it has or has not yet paid the
shipper or consignee.
5.
Provisions in the bill of lading contrary to prescription periods of the COGSA
are null and void. (E.E. Elser, Inc. vs. CA, et al., GR No. L-6517, Nov. 29, 1954).
PERIOD OF PRESCRIPTION
RESPONSIBILITIES & LIABILITIES (Sec. 3)
Note: COGSA is only applicable in (1) contracts of carriage of (2) goods (3) by sea in
(4) foreign trade. However, the parties to a domestic maritime trade may, by
express stipulation, validly agree to incorporate the provisions of the COGSA in their
contract of carriage
PERIOD OF PRESCRIPTION
RESPONSIBILITIES & LIABILITIES (Sec. 3)
If the goods are lost or damaged by reason of an unjustified delay in transportation,
the carrier is liable therefor; and the action must be filed within the prescriptive
period provided by the COGSA. (Tan Liao vs. American President Lines, Ltd., GR No.
L-7280, Jan. 20, 1956)

7.
Suit against an arrastre operator is not within the coverage of the COGSA, the
ordinary periods of prescription will apply. (Insurance Co. of North America vs. Phil.
Ports Terminal, Inc. GR No. L-6420, July 18, 1955)
RIGHTS & IMMUNITIES (Sec. 4)
(1) Neither the carrier nor the 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 cooling
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 the provisions of
paragraph (1) of Section (3).
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 section.
RIGHTS & IMMUNITIES (Sec. 4)
What constitutes due diligence in making vessel seaworthy?

Due diligence requires such watchful caution and foresight as the

circumstance of the particular service demand. It must be adequate to the occasion.
It must be due diligence in the work itself, and not merely in the selection of agents
to do the work; otherwise, shipowner might escape all responsibility merely by
selecting agents of good reputation and would be relieved whether such agents
exercised due care or not to make their vessel seaworthy, and any responsibility
would be fritted away. (Nord-Deutscher Lloyd vs. Insurance Co. of North America,
110 Fed. 421)
RIGHTS & IMMUNITIES (Sec. 4)
What does dangers of the sea mean?

The phrase dangers of the sea has been construed as equivalent to perils
of the sea. It may, without any violation of its natural import, be interpreted to
mean dangers that arise upon the sea, which would include every hazard and
danger, from the beginning to the end of the voyage, of whatever kind or with equal
propriety, it may mean only those which arise directly and exclusively from the sea
and of which it is the efficient cause. Sometimes it is taken in one sense and
sometimes in the another. (Merril vs. Arey. 17 F. Cas. No. 9, 468)

(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, or the servants of the
carrier in the navigation or in the management 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 navigable water;
(d) Act of God;
(e) Act of war;
(f) Act of public enemies;
(g) Arrest or restraint of princes, rulers, or people, or seizure under legal process;

(2) Neither the carrier nor the ship shall be responsible for loss or damage arising
or resulting from
(h) Quarantine restrictions;
(i) Act or omission of the shipper or owner of the goods, his agent or
representative;
(j) Strikes or lockouts or stoppage or restraint of labor from whatever cause,
whether partial or general: Provided, that nothing herein contained shall be
construed to relieve a carrier from responsibility for the carrier's own acts;
(k) Riotsand 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;

(2) Neither the carrier nor the ship shall be responsible for loss or damage arising
or resulting from
(n) Insufficiency or packing;
(o) Insufficiency or inadequacy of marks;

(p) Latent defects not discoverable by due diligence; and

(q) Any other cause arising without the actual fault and privity of the carrier and
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.
(2) Neither the carrier nor the ship shall be responsible for loss or damage arising
or resulting from
(3) The shipper shall not be responsible for loss or damage sustained by the carrier
or the ship arising or resulting from any cause without the act, 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 infringement or breach or this
Act or of the contract of carriage, and carrier shall not be liable for any loss or
damage resulting therefrom:
Provided, however, that if the deviation is for the purpose of loading or unloading
cargo or passengers it shall, prima facie, be regarded as unreasonable.