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HAGUEHAGUE-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 RulesSea worthy vessel
Care of cargo subject to a list of 17 exemptions
Hamburg RulesGeneral 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
Tackle-to-tackle liability
Hamburg Rules
While the goods are in his charge
DELAY IN DELIVERY
Hague Rules
Implied
Hague-Visby Rules
Implied
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
Gulf Italia
S. S. Navigator
Island Yacht Inc.
Pacific Bear
•Whether container is a package?
•Case law
Leather’s Best
Royal Typewriter
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
THANK YOU