The Hague Rules established minimum standards for commercial carriers transporting goods by sea. They aimed to balance the interests of shippers and carriers by defining carriers' obligations to properly handle cargo and make vessels seaworthy, while limiting their liability. The Hague-Visby Rules updated and expanded some protections for shippers, such as raising liability limits for lost or damaged cargo. Both conventions established uniform international standards for bills of lading and carrier liability in the maritime shipping industry.
The Hague Rules established minimum standards for commercial carriers transporting goods by sea. They aimed to balance the interests of shippers and carriers by defining carriers' obligations to properly handle cargo and make vessels seaworthy, while limiting their liability. The Hague-Visby Rules updated and expanded some protections for shippers, such as raising liability limits for lost or damaged cargo. Both conventions established uniform international standards for bills of lading and carrier liability in the maritime shipping industry.
The Hague Rules established minimum standards for commercial carriers transporting goods by sea. They aimed to balance the interests of shippers and carriers by defining carriers' obligations to properly handle cargo and make vessels seaworthy, while limiting their liability. The Hague-Visby Rules updated and expanded some protections for shippers, such as raising liability limits for lost or damaged cargo. Both conventions established uniform international standards for bills of lading and carrier liability in the maritime shipping industry.
The Hague Rules established minimum standards for commercial carriers transporting goods by sea. They aimed to balance the interests of shippers and carriers by defining carriers' obligations to properly handle cargo and make vessels seaworthy, while limiting their liability. The Hague-Visby Rules updated and expanded some protections for shippers, such as raising liability limits for lost or damaged cargo. Both conventions established uniform international standards for bills of lading and carrier liability in the maritime shipping industry.
Formally the "International Convention for the Unification of
Certain Rules of Law relating to Bills of Lading” Drafted at Hague in 1921 and signed at Brussels on 25th August 1924. It is an international convention to impose minimum standards upon commercial carriers of goods by sea. The 1924 Convention actually favoured carriers and reduced some of their obligations to shippers. The Hague Rules represented the first attempt by the international community to find a workable and uniform means of dealing with the problem of ship-owners regularly excluding themselves from all liability for loss or damage to cargo. The objective of the Hague Rules was to establish a minimum mandatory liability of carriers which could be derogated from. Under the Hague Rules the shipper bears the cost of lost/damaged goods if they cannot prove that the vessel was unseaworthy, improperly manned or unable to safely transport and preserve the cargo, i.e. the carrier can avoid liability for risks resulting from human errors provided they exercise due diligence and their vessel is properly manned and seaworthy. Under the rule the carriers liability was restricted to G.B. pounds 100(gold equivalent) per package- unless of course a higher limit had been mutually agreed. The Hague Rules form the basis of national legislation in almost all of the world's major trading nations, and probably cover more than 90 per cent of world trade. The Hague Rules have been updated by two protocols, were later amended very slightly to become the Hague-Visby Rules. Hague-Visby Rules Drafted on 23rd Feb 1968, Effective on 23rd Jun1977 The premise of the Hague–Visby Rules was that a carrier typically has far greater bargaining power than the shipper, and that to protect the interests of the shipper/cargo-owner. The law should impose some minimum obligations upon the carrier. The provision of the rule fall into 2 main categories. Rules in the 1st categories establish the minimum obligations of the carrier, and second define the maximum immunity to which he is entitled and extent to which he may limit his liability. The rule apply only to contracts in/evidenced by Bill of Loading The rule apply to all goods except to live animals and to goods stated to be carried on deck. Under the Rules, the carrier's main duties are to (i) Properly and carefully load, handle, stow, carry, keep, care for, and discharge the goods carried (ii) to make the ship seaworthy (iii) to properly man, equip and supply the ship. the shipper has fewer obligations namely: (i) to pay freight; (ii) to pack the goods sufficiently for the journey; (iii) to describe the goods honestly and accurately; (iv) not to ship dangerous cargoes (unless agreed by both parties); (v) to have the goods ready for shipment as agreed; The carrier's duties are not strict, but require only a reasonable standard of professionalism and care; and Article IV allows the carrier a wide range of situations exempting them from liability on a cargo claim. These exemptions include destruction or damage to the cargo caused by: fire, perils of the sea, Act of God, and act of war. Immunity from due to deviation: any deviation in saving or attempting to save life or property at sea or any reasonable deviation, the carrier is not liable for loss or damage Rights in respect of dangerous goods: if the carrier was not informed by shipper or cargo not properly marked, the carrier is free to jettison, land, destroy or render them harmless at any time before discharge without any liability to the carrier and the shipper of the goods is responsible for all the damages and expenses resulting for the shipment of such goods. Even when the dangerous goods are shipped with the knowledge they may be dealt with likely manner with out any liability to the carrier. In this case the shipper is not liable for any consequential losses. A controversial provision exempts the carrier from liability for neglect or default of the master in the navigation or in the management of the ship. Rules require a ship to be seaworthy only "before and at the beginning" of the voyage Under the rule the liability for the carrier’s above limit was raised to 10,000 francs per package or 30 francs per kilogramme whichever is higher. A franc means 65.5mgs of gold.