Limitation of Liability The Convention on Limitation of
Limitation of Liability
The Convention on Limitation of Liability for Maritime Claims (LLMC Convention) Allows shipowners to limit their liability to pay compensation for general ship-sourced damage The LLMC Convention applies to claims for loss of life and personal injury, as well as loss of or damage to property Applies to pollution damage where no other Convention applies (non CLC or Bunkers ships)
The Athens Convention relating to the Carriage of Passengers and their Luggage by Sea 1974 / 2002 Claims for Passenger Injury and Damage to Luggage Provides compensation in the case of death or injury to passengers on ships engaged in international voyages or where luggage has been lost or damaged. Carriers strict liability for death, injury, damage or loss resulting from a “shipping incident”. Carriers to be insured up to 250, 000 (SDR) per passenger ships 12+ pax Directly action against the insurer
An analysis of the 3 limitation of lability regimes HAGUE VISBY 1968 HAMBURG 1978 ROTTERDAM 2009
23 Sep 2009 – The UN Convention on Contracts for the International Carriage of Goods Wholly or Partly at Sea Rotterdan Rules are intended to replace existing rules Prepared by UNICTRAL UN Commission on International Trade Law Deals with contracts between carriers and shippers of goods that are transported via sea ports
Which rules apply at the moment? Hamburg apply in DK & 28 other nations in total (10 landlocked) Hague & Hague Visby apply in 110 other countries (2 landlocked) Rotterdam do not apply anywhere yet Signatories to liability conventions
Where do the rules start to apply? Hague Visby from hook to hook vessel only Hamburg apply from port to port only Rotterdam apply from door to door – regardless of mode of transport
Why change the rules? • Hague Visby Rules are too Carrier friendly • Hamburg Rules are too Shipper friendly • Rotterdan Rules aim to strike a balance and cater for the needs and rights of the carrier and shipper
Which rules apply? Hague Visby – B/L must be issued If B/L is issued in contracting state Carriage is from port within a contracting state COA or B/L states so Hamburg – B/L must be issued If load port or discharge port is within contracting state If B/L is issued in contracting state Rotterdam – apply to Liner transport – where no C/P exists Non liner where a B/L or other transport doc. but no C/P exists
Hague Visby – Duties of the carrier “To properly and carefully load, handle, stow, carry, keep, care for, and discharge the goods carried" and to "exercise due diligence to. . . make the ship seaworthy" and to ". . . properly man, equip and supply the ship". Article IV(4) provides that "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".
HV Carrier exemptions from liability Article IV exempts the carrier from liability for destruction or damage to the cargo caused by: “Fire, perils of the sea, Act of God, & Act of war” “Neglect or default of the master. . . in the navigation or in the management of the ship" Hamburg Rules and Rotterdam Rules refuse exemption for negligent navigation and management.
HV – Duties of the carrier The Hague-Visby Rules require a ship to be seaworthy only "before and at the beginning" of the voyage”, Rotterdam Rules require the carrier to keep the ship seaworthy throughout the voyage (although this new duty will be to a reasonable standard that is subject the circumstances of being at sea).
Why change the rules? • Ever increasing containerisation • Electronic Data Interchange • Need for rapid cargo expedition
What’s new for the carrier? Rotterdam rules: § Increased carrier liability § Apply throughout the period of transport § Regardless of mode of transport § Carriers obligation to exercise due dilligence to provide a seaworthy vessel throughout the voyage
What’s new? Increased Carrier Liability: Rotterdam rules 875 SDR per package or 3 SDR per kg Hamburg rules 835 SDR per package or 2. 5 SDR per Kg Hague Visby rules 666. 67 SDR per package or 2 SDR per Kg
What’s new? § Rotterdam rules allow digital transport documents § Apply where a Bill of Lading is not issued § Quicker transfer of goods § Volume contracts carriers allowed to contract out of Rotterdam rules 90% of containers § Optional Articles regarding arbitration and juridistinction § Time bar increased to 2 years
What’s new? § One contract from door to door § One regime throughout transport § Make stevedores and servants of the carrier liable also § Require shippers to have goods ready § Containerised goods must be stowed for sea voyage § Identity of the Carrier to be stated in transport document
What’s new? § Fewer defences. • Navigational error (Hague Visby) • Error in management of the ship (Hamburg) § Burden of proof • Claimant must only prove that it was probable that the damage occurred due to lack of seaworthiness
Concerns § Multi modal transport… where did the damage occur? § Will they be implemented into national law? § Will the carriers agree to use them? § 23 nations had signed by Jan 2011
- Slides: 19