Carriage of Goods by Sea Act 1974

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AT 26 of 1974

CARRIAGE OF GOODS BY SEA ACT 1974

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CARRIAGE OF GOODS BY SEA ACT 1974

Index Section Page

1 Application of Hague Rules as amended .................................................................... 5
2 Contracting States, etc .................................................................................................... 6
3 Absolute warranty of seaworthiness not to be implied in contracts to
which Rules apply .......................................................................................................... 6
4 Supplemental ................................................................................................................... 6
SCHEDULE 9

THE HAGUE RULES AS AMENDED BY THE BRUSSELS PROTOCOL 1968 9
ENDNOTES 17

TABLE OF LEGISLATION HISTORY 17
TABLE OF RENUMBERED PROVISIONS 17
TABLE OF ENDNOTE REFERENCES 17

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c i e
CARRIAGE OF GOODS BY SEA ACT 1974

Received Royal Assent: 25 July 1974
Passed: 15 October 1974
Commenced: 15 July 1977
AN ACT
to amend the law with respect to the carriage of goods by sea.
1 Application of Hague Rules as amended

[P1971/19/1]
(1) In this Act, “the Rules
” means the International Convention for the
unification of certain rules of law relating to bills of lading, signed at
Brussels on the 25th August 1924, as amended by the Protocol signed at
Brussels on the 23rd February 1968 and by the Protocol signed at
Brussels on 21st December 1979.1

(2) The provisions of the Rules, as set out in the Schedule to this Act, shall
have the force of law.
(3) Without prejudice to subsection (2) above, the said provisions shall have
effect (and have the force of law) in relation to, and in connection with,
the carriage of goods by sea in ships where the port of shipment is a port
in the Isle of Man, whether or not the carriage is between ports in two
different States within the meaning of Article X of the Rules.
(4) Subject to subsection (6) below, nothing in this section shall be taken as
applying anything in the Rules to any contract for the carriage of goods
by sea, unless the contract expressly or by implication provides for the
issue of a bill of lading or any similar document of title.
(5) [Repealed]2

(6) Without prejudice to Article X(c) of the Rules, the Rules shall have the
force of law in relation to —
(a) any bill of lading, if the contract contained in or evidenced by it
expressly provides that the Rules shall govern the contract; and
(b) any receipt which is a non-negotiable document marked as such if
the contract contained in or evidenced by it is a contract for the
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carriage of goods by sea which expressly provides that the Rules
are to govern the contract as if the receipt were a bill of lading,
but subject, where paragraph (b) applies, to any necessary modifications
and, in particular, with the omission in Article III of the Rules of the
second sentence of paragraph 4 and of paragraph 7.
(7) If and so far as the contract contained in or evidenced by a bill of lading
or receipt within paragraph (a) or (b) of subsection (6) above applies to
deck cargo or live animals, the Rules as given the force of law by that
subsection shall have effect as if Article l(c) did not exclude deck cargo
and live animals.
In this subsection, “deck cargo” means cargo which, by the contract of
carriage, is stated as being carried on deck and is so carried.
2 Contracting States, etc

[P1971/19/2]
If the Department of Economic Development by order certifies to the following
effect, that is to say, that, for the purposes of the Rules —
(a) a State specified in the order is a contracting State, or is a
contracting State in respect of any place or territory so specified;
or
(b) any place or territory specified in the order forms part of a State
so specified (whether a contracting State or not),
the order shall, except so far as it has been superseded by a subsequent
order, be conclusive evidence of the matters so certified.3

3 Absolute warranty of seaworthiness not to be implied in contracts to

which Rules apply

[P1971/19/3]
There shall not be implied in any contract for the carriage of goods by sea to
which the Rules apply by virtue of this Act any absolute undertaking by the
carrier of the goods to provide a seaworthy ship.
4 Supplemental

[P1971/19/6]
(1) This Act may be cited as the Carriage of Goods by Sea Act 1974.
(2) It is hereby declared that, for the purposes of Article VIII of the Rules,
section 186 of the Merchant Shipping Act 1995 (an Act of Parliament) as
it has effect in the Island, entirely exempts shipowners and others in
certain circumstances from liability for loss of, or damage to, goods) is a
provision relating to limitation of liability.4

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(3) This Act shall, subject to subsection (4) below, come into operation when
the Royal Assent thereto has been by the Governor announced to
Tynwald and a certificate thereof has been signed by the Governor and
the Speaker of the House of Keys.
(4) This Act shall have effect from such day as the Governor may by order
appoint, and, for the purposes of the transition from the law in force
immediately before the day appointed under this subsection to the
provisions of this Act, the order appointing the day may provide that
those provisions shall have effect subject to such transitional provisions
as may be contained in the order.5

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Schedule

THE HAGUE RULES AS AMENDED BY THE BRUSSELS PROTOCOL 1968

Section 1(2)
[P1971/19/Sch]
Article I
In these Rules the following words are employed, with the meanings set out below: —
(a) “Carrier
” includes the owner or the charterer who enters into a
contract of carriage with a shipper.
(b) “Contract of carriage
” applies only to contracts of carriage
covered by a bill of lading or any similar document of title, in so
far as such document relates to the carriage of goods by sea,
including any bill of lading or any similar document as aforesaid
issued under or pursuant to a charter party from the moment at
which such bill of lading or similar document of title regulates the
relations between a carrier and a holder of the same.
(c) “Goods
” includes goods, wares, merchandise, and articles of
every kind whatsoever except live animals and cargo which by
the contract of carriage is stated as being carried on deck and is so
carried.
(d) “Ship
” means any vessel used for the carriage of goods by sea.
(e) “Carriage of goods
” covers the period from the time when the
goods are loaded on to the time they are discharged from the ship.
Article II
Subject to the provisions of Article VI, 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, and
entitled to the rights and immunities hereinafter set forth.
Article III
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 cool chambers, and all other
parts of the ship in which goods are carried, fit and safe for their
reception, carriage and preservation.
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2. Subject to the provisions of Article IV, the carrier shall properly and carefully
load, handle, stow, carry, keep, care for, and discharge the goods carried.
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 as the
same are furnished in writing by the shipper before the loading of
such goods starts, provided such marks are stamped or otherwise
shown clearly upon the goods if uncovered, or on the cases or
coverings in which such goods are contained, in such a manner as
should ordinarily remain legible until the end of the voyage.
(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 or show 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.
4. Such a bill of lading shall be prima facie evidence of the receipt by the carrier of
the goods as therein described in accordance with paragraph 3(a), (b) and (c).
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. The shipper shall be deemed to have guaranteed to the carrier the accuracy at
the time of shipment of the marks, number, quantity and weight, as furnished by him,
and the shipper shall indemnify the carrier against all loss, damages and expenses
arising or resulting from inaccuracies in such particulars. The right of the carrier to
such indemnity shall in no way limit his responsibility and liability under the contract
of carriage to any person other than the shipper.
6. 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, or, if the loss or damage be not apparent, within
three days, such removal shall be prima facie evidence of the delivery by the carrier of
the goods as described in the bill of lading.
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.
Subject to paragraph 6bis the carrier and the ship shall in any event be discharged from
all liability whatsoever in respect of the goods, unless suit is brought within one year of
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their delivery or of the date when they should have been delivered. This period may,
however, be extended if the parties so agree after the cause of action has arisen.
In the case of any actual or apprehended loss or damage the carrier and the receiver
shall give all reasonable facilities to each other for inspecting and tallying the goods.
6bis. An action for indemnity against a third person may be brought even after the
expiration of the year provided for in the preceding paragraph if brought within the
time allowed by the law of the Court seized of the case. However, the time allowed
shall be not less than three months, commencing from the day when the person
bringing such action for indemnity has settled the claim or has been served with
process in the action against himself.
7. After the goods are loaded the bill of lading to be issued by the carrier, master,
or agent of the carrier, to the shipper shall, if the shipper so demands, be a ‘shipped’
bill of lading, provided that if the shipper shall have previously taken up any
document of title to such goods, he shall surrender the same as against the issue of the
‘shipped’ bill of lading, but at the option of the carrier such document of title may be
noted at the port of shipment by the carrier, master, or agent with the name or names
of the ship or ships upon which the goods have been shipped and the date or dates of
shipment, and when so noted, if it shows the particulars mentioned in paragraph 3 of
Article III, shall for the purpose of this article be deemed to constitute a ‘shipped’ bill of
lading.
8. Any clause, covenant, or agreement in a contract of carriage relieving the carrier
or the ship from liability for loss or damage to, or in connection with, goods arising
from negligence, fault, or failure in the duties and obligations provided in this article or
lessening such liability otherwise than as provided in these Rules, shall be null and
void and of no effect. A benefit of insurance in favour of the carrier or similar clause
shall be deemed to be a clause relieving the carrier from liability.
Article IV
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 cool 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 Article
III. 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 article.
2. Neither the carrier nor the ship shall be responsible for loss or damage arising
or resulting from —
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(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 waters.
(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.
(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 labour from
whatever cause, whether partial or general.
(k) Riots and 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.
(n) Insufficiency of packing.
(o) Insufficiency or inadequacy of marks.
(p) Latent defects not discoverable by due diligence.
(q) Any other cause arising without the actual fault or privity of the
carrier, or 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.
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, fault 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 of these
Rules or of the contract of carriage, and the carrier shall not be liable for any loss or
damage resulting therefrom.
5. (a) Unless the nature and value of such goods have been declared by the
shipper before shipment and inserted in the bill of lading, neither the carrier nor the
ship shall in any event be or become liable for any loss or damage to or in connection
with the goods in an amount exceeding 666.67 units of account per package or unit or 2
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units of account per kilogramme of gross weight of the goods lost or damaged,
whichever is the higher.6

(b) The total amount recoverable shall be calculated by reference to
the value of such goods at the place and time at which the goods
are discharged from the ship in accordance with the contract or
should have been so discharged.
The value of the goods shall be fixed according to the commodity
exchange price, or, if there be no such price, according to the
current market price, or, if there be no commodity exchange price
or current market price, by reference to the normal value of goods
of the same kind and quality.
(c) Where a container, pallet or similar article of transport is used to
consolidate goods, the number of packages or units enumerated
in the bill of lading as packed in such article of transport shall be
deemed the number of packages or units for the purpose of this
paragraph as far as these packages or units are concerned. Except
as aforesaid such article of transport shall be considered the
package or unit.
(d) The unit of account mentioned in this Article is the special
drawing right as defined by the International Monetary Fund. The
amounts mentioned in sub-paragraph (a) of this paragraph shall
be converted into national currency on the basis of the value of
that currency on a date to be determined by the law of the Court
seized of the case.7

(e) Neither the carrier nor the ship shall be entitled to the benefit of
the limitation of liability provided for in this paragraph if it is
proved that the damage resulted from an act or omission of the
carrier done with intent to cause damage, or recklessly and with
knowledge that damage would probably result.
(f) The declaration mentioned in sub-paragraph (a) of this
paragraph, if embodied in the bill of lading, shall be prima facie
evidence, but shall not be binding or conclusive on the carrier.
(g) By agreement between the carrier, master or agent of the carrier
and the shipper other maximum amounts than those mentioned
in sub-paragraph (a) of this paragraph may be fixed, provided
that no maximum amount so fixed shall be less than the
appropriate maximum mentioned in that sub-paragraph.
(h) Neither the carrier nor the ship shall be responsible in any event
for loss or damage to, or in connection with, goods if the nature or
value thereof has been knowingly mis-stated by the shipper in the
bill of lading.
6. Goods of an inflammable, explosive or dangerous nature to the shipment
whereof the carrier, master or agent of the carrier has not consented with knowledge of
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their nature and character, may at any time before discharge be landed at any place, or
destroyed or rendered innocuous by the carrier without compensation and the shipper
of such goods shall be liable for all damages and expenses directly or indirectly arising
out of or resulting from such shipment. If any such goods shipped with such
knowledge and consent shall become a danger to the ship or cargo, they may in like
manner be landed at any place, or destroyed or rendered innocuous by the carrier
without liability on the part of the carrier except to general average, if any.
Article IVbis
1. The defences and limits of liability provided for in these Rules shall apply in
any action against the carrier in respect of loss or damage to goods covered by a
contract of carriage whether the action be founded in contract or in tort.
2. If such an action is brought against a servant or agent of the carrier (such
servant or agent not being an independent contractor), such servant or agent shall be
entitled to avail himself of the defences and limits of liability which the carrier is
entitled to invoke under these Rules.
3. The aggregate of the amounts recoverable from the carrier, and such servants
and agents, shall in no case exceed the limit provided for in these Rules.
4. Nevertheless, a servant or agent of the carrier shall not be entitled to avail
himself of the provisions of this article, if it is proved that the damage resulted from an
act or omission of the servant or agent done with intent to cause damage or recklessly
and with knowledge that damage would probably result.
Article V
A carrier shall be at liberty to surrender in whole or in part all or any of his rights and
immunities or to increase any of his responsibilities and obligations under these Rules,
provided such surrender or increase shall be embodied in the bill of lading issued to
the shipper. The provisions of these Rules shall not be applicable to charter parties, but
if bills of lading are issued in the case of a ship under a charter party they shall comply
with the terms of these Rules. Nothing in these Rules shall be held to prevent the
insertion in a bill of lading of any lawful provision regarding general average.
Article VI
Notwithstanding the provisions of the preceding articles, a carrier, master or agent of
the carrier and a shipper shall in regard to any particular goods be at liberty to 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, so far as this stipulation is 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 the goods carried by sea,
provided that in this case no bill of lading has been or shall be issued and that the
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terms agreed shall be embodied in a receipt which shall be a non-negotiable document
and shall be marked as such.
Any agreement so entered into shall have full legal effect.
Provided that this article shall 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 circumstances, terms and conditions
under which the carriage is to be performed are such as reasonably to justify a special
agreement.
Article VII
Nothing herein contained shall prevent a carrier or a shipper from entering into any
agreement, stipulation, condition, reservation or exemption as to the responsibility and
liability of the carrier or the ship for the loss or damage to, or in connection with, the
custody and care and handling of goods prior to the loading on, and subsequent to the
discharge from, the ship on which the goods are carried by sea.
Article VIII
The provisions of these Rules shall not affect the rights and obligations of the carrier
under any statute for the time being in force relating to the limitation of the liability of
owners of sea-going vessels.
Article IX
These Rules shall not affect the provisions of any international Convention or national
law governing liability for nuclear damage.
Article X
The provisions of these Rules shall apply to every bill of lading relating to the carriage
of goods between ports in two different States if: —
(a) the bill of lading is issued in a contracting State, or
(b) the carriage is from a port in a contracting State, or
(c) the contract contained in or evidenced by the bill of lading
provides that these Rules or legislation of any State giving effect
to them are to govern the contract,
whatever may be the nationality of the ship, the carrier, the
shipper, the consignee, or any other interested person.8

[The last two paragraphs of this Article are not reproduced. They require States to
apply the Rules to bills of lading mentioned in this Article and authorise them to apply
the Rules to other bills of lading.
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[Articles 11 to 16 of the International Convention for the unification of certain rules of
law relating to bills of lading signed at Brussels on 25 August 1924 are not reproduced.
They deal with the coming into force of the Convention, procedure for ratification,
accession and denunciation, and the right to call for a fresh conference to consider
amendments to the Rules contained in the Convention.]
Carriage of Goods by Sea Act 1974 Endnotes


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ENDNOTES

Table of Legislation History

Legislation Year and No Commencement






Table of Renumbered Provisions

Original Current






Table of Endnote References

1
Subs (1) amended by Carriage of Goods by Sea (Amendment) Act 1981 s 1. 2
Subs (5) repealed by Carriage of Goods by Sea (Amendment) Act 1981 s 3. 3
S 2 amended by SD51/97 and by SD155/10 Sch 2. 4
Subs (2) amended by Merchant Shipping Act 1995 (of Parliament) (applied SD23/99). 5
ADO (whole Act) 15/7/1977 (GC151/77). 6
Subpara (a) amended by Carriage of Goods by Sea (Amendment) Act 1981 s 1. 7
Subpara (d) substituted by Carriage of Goods by Sea (Amendment) Act 1981 s 1. For
application of subpara (d) see s 1(5) of the 1981 Act. 8
The last two paragraphs of this article are not reproduced. They require contracting
States to apply the Rules to bills of lading mentioned in the article and authorise them
to apply the Rules to other bills of lading.