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