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Chapter 10: Carriage of goods
under International Commercial law
https://www.youtube.com/watch?v=5J77WtFAK7w
https://www.youtube.com/watch?v=VNib04v1suE
https://www.youtube.com/watch?v=5J77WtFAK7w
https://www.youtube.com/watch?v=uyIxbb630Cs&list=PLaDPBFF1OKfH0mKep
Vh8CUUQC3MieFtDF
Definition of carriage of goods contract
• Carriage is simply defined as the transportation of goods or cargo from one
location to another.
• It is however not as simple as it sounds as it includes other components such
as loading, stowage, transportation, unloading and delivery.
• A carriage of goods contract is therefore the legal document entered between
a carrier and a sender (or consignor) where the carrier undertakes to move
goods in return for payment to another person, usually the receiver (or
consignee).
• Carriage of goods is, by law, the movement of goods by land, sea, or air.
• This includes packaging, storage, transport, unloading, and distribution and
the carriage of goods can be unimodal or multimodal.
• Unimodal refers to the carriage of goods when only one mode of transport is
used.
• Multimodal carriage of goods refers to a situation where a combination of
methods is used.
• Unimodal international transport is regulated by international conventions e.g.
the Warsaw Convention, the Hague-Visby Rules, and Convention relative au
contrat de transportinternational des merchandises de route.
Components of carriage of goods
1.Delay and misdelivery: Carriers shall be responsible for delay in
delivery of the goods to the consignee under all legal systems. The
duration of transport may be determined by the laws, international
treaties, administrative regulations, or even contractual arrangements,
with regard to the correct transport means and deciding the
implications of the delay. According to the contract law, “breach of
contract occurs if the goods are not delivered within the agreed
time.”Under common law, the carrier would typically be responsible for
damages if the delay is triggered by a deviation. A divergence occurs
when the carrier departs or passes his destination from the path he
has explicit or implicitly decided to follow. In the absence of special
legislation or contractual arrangements, carriers are not bound by any
specific route in civil jurisdictions. A deviation from the usual route is
not a mistake on the part of the carrier; the carrier would only be
responsible if the deviation creates a delay because it is a loss.
1.Diversion and reconsignment; stoppage in transit: The terms diversion and
reconsignment apply to a change of destination or billing before or after the initial
destination of a shipment. For the business world, reconsignment is of great
significance because products can be transported from a distant source to the most
suitable location, and then moved to a certain target destination. Carriers will typically
bill for the exercise of the right of diversion or reconsignment. In general, the number
of distractions is reduced to ensure that transport means are not being used as storage
areas.The goods owner may alter the instructions of the carrier on the place of
destination or on the person allowed to take delivery in all the legal systems. The
carrier is obliged to satisfy this order, provided he is assured that, at the time of order,
the person designating a new delivery venue, or a new receiver is the owner of the
goods. In civil-law courts the person holding the transport title is normally entitled to
change the destination of the goods, be it a lading bill or another document.
Technically, a stoppage in transit is an unpaid seller’s right to change its destination
before it is delivered to the destination user. Under the rule, even though the seller
hasn’t kept possession of the product in a deal with the buyer, the seller has the right.
The British Goods Selling Law of 1893 codifying the common law notes, as symbolic,
that the unpaid seller shall resume possession of the goods as long as they are in
transit and may retain them until the price is paid or tendered. In the scope of civil
law, there are similar clauses.
1.Dangerous Goods: Those goods that may be damaging to
persons, means of transport or other goods by nature are
dangerous. In all legal regimes, hazardous goods have been
transported and special rules have been created.In
countries of civil law, the types of products deemed to be
hazardous are defined by legislation or administrative rules,
which either prohibit shipments by public carriers or specify
the terms on which they may be transported. In common
law jurisdictions, unless the shipper has stated the
dangerous nature of the goods at the time of delivery and
has approved them with the knowledge of their existence, it
shall be borne by the carrier for any harm caused by
hazardous goods shipped for shipment.
1.Carriage by two or more carriers: Goods also enter their
destination after two or more carriers have crossed hands. The
latter may be the case when the shipper has entered into a
contract with many carriers when the shipper authorizes a carrier
to serve as their agent for other carriers or when the carrier
delivers the products to another carrier without authority.Where
the carrier transfers the goods to another carrier without
permission, he is responsible for the second carrier’s miss
commandments and for any loss or damages sustained by the
owner during the period when they were in the second carrier’s
hands.In other terms, by executing the contract through an
agent’s services, the carrier can not assume responsibility. In
addition, the delivery of the goods to a carrier by a tacit or
explicit condition that the carriage is carried out by the carrier’s
vehicles that constitute a contravention of the contract. In
marine transport, this condition is implied.
• Carrier’s lien: The legislation is all about ensuring that the freight is paid to a carrier
that has taken the goods to its destination. The carrier may have a common-law lien or
legislative lien to this effect in common-law jurisdictions. Within the courts of civil law,
the carrier typically has a special right. A commercial carrier in commercial-law
jurisdictions has a common-law lien in which the goods may be kept before the
product has been paid to him. The carrier is not entitled to sell or use the goods,
however, parties should agree to the carrier’s active lien — that is, the carrier is
entitled to sell the goods.Therefore the shipowner is specifically entitled in the United
States to seize and sell goods that are shipped by him in situations where the freight is
not paid. Parties that accept that the carrier is not responsible at all, or has a general
lien on the goods transported, in other words, a lien that involves debts that do not
relate to the pending freight. The carrier has the privileges and responsibilities of a
dancer since exercising the lien. This can also be liable for the loss or harm incurred by
its negligence and may recover the costs fairly required to maintain the
product.Carriers under civil law typically have the luxury of paying freight and
incidental costs for the goods transported by them. This privilege is open only to
qualified carriers in France and in structures following the French model, who carry
goods by carriage contract. The right of civil law varies from a common law condition
in which the carrier is empowered to sell the goods for the satisfaction of its claims.
The profit encompasses the entire shipment as determined by shipping documents and
shall be obsolete when the goods are shipped to the recipient.
• Carrier’s role as warehouseman and bailee:
• The special obligations imposed on the carrier in all the legal systems apply
only for the length of the carry, that is until the carrier takes all appropriate
measures to deliver them to the consignee, from the moment the goods
are delivered to the carrier for shipment. It means that for the whole time
the goods will be in its possession, the carrier is not under his responsibility
as a carrier. In fact, before carriage starts or after it ends in compliance
with the terms and conditions of a special contract which may qualify as a
bailment in common law courts and in civil-law nations, the goods that are
delivered for safekeeping to a carrier.In the event, the delivery may not be
taken into account, where the delivery carrier may assume an unintended
or depositary role, goods may already be in the hands of the transport
carrier, as the consignor has refused delivery unjustifiedly, in which case
the carrier can take up the function of the accidental bailee, or repository.
1.Carrier’s role as warehouseman and bailee: The special
obligations imposed on the carrier in all the legal systems apply only
for the length of the carry, that is until the carrier takes all appropriate
measures to deliver them to the consignee, from the moment the
goods are delivered to the carrier for shipment. It means that for the
whole time the goods will be in its possession, the carrier is not under
his responsibility as a carrier. In fact, before carriage starts or after it
ends in compliance with the terms and conditions of a special contract
which may qualify as a bailment in common law courts and in civil-law
nations, the goods that are delivered for safekeeping to a carrier.The
goods could also be owned by the carrier since unwarranted delivery
was rejected by the consignor, and the carrier may, in this case, be
kept in the role of an unwanted bailiff or depositary. In civil law, where
the parties agree that, before the commencement or after the end of
the transport, the carrier shall be in possession of the goods as a
warehouse, they shall enter into a reward deposits agreement which is
distinct from a carriage agreement.
1.The measure of damages: Owing to the application of the
general principles of contract law, damages to breach and failure
to execute a carriage contract are typically decided. In the event
of a breach of the carriage contract, extraordinary clauses are
rare; they are found in international treaties in general.
2.Bills of lading: Various shipments are provided by the carrier
to the expeditor when the items are shipped for transport under
bills of packing. Unless its right is removed by the transport
contract, the shipper is entitled to order the issuance of bill of
carriage. The lading bill shall be, first of all, a declaration by a
carrier that the goods for shipment have been paid. Additionally,
the lading bill is either a carriage contract or proof of a carriage
contract. Third, if it is negotiable, as normal with regard to
transport by sea, the lading bill controls ownership of the goods
and is one of the important documents in funding the movement
of goods and services in the world.
1.Freight or forwarding agents: Shipowners also employ cargo
or shipping agents’ services, including those who are
recompensed for transporting and distributing the goods at their
destinations. The services of these persons are typically used
where successive carriers or use of the successful means of
transport are involved in the transportation of the goods.
2.Mixed-carrier transportation: The word “mixed carriage”
refers to circumstances of transport by two or more modes of
transport, such as road, sea and air, in which goods are
transported to their final destination. At least two choices are
available. There may be no specific legal relation between
successive carriers, for example, if the shipper has independently
contracted each carrier or the shipper has contracted a
forwarding agent. In these situations, each carrier has its own
access to the shipper or forwarders’ agent and is subject to its
own regulations.
Important of Carriage and Types of Carriage
• Carriage of goods by sea
• Carriage of goods by air
• Transport of Goods by Road
Carrier's Responsibility
Hague Rules
• The Hague Rules represented the first attempt by the
international community to find a workable and uniform way to
address the problem of shipowners 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.
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.

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Chapter 10.pptx

  • 1. Chapter 10: Carriage of goods under International Commercial law https://www.youtube.com/watch?v=5J77WtFAK7w https://www.youtube.com/watch?v=VNib04v1suE https://www.youtube.com/watch?v=5J77WtFAK7w https://www.youtube.com/watch?v=uyIxbb630Cs&list=PLaDPBFF1OKfH0mKep Vh8CUUQC3MieFtDF
  • 2. Definition of carriage of goods contract • Carriage is simply defined as the transportation of goods or cargo from one location to another. • It is however not as simple as it sounds as it includes other components such as loading, stowage, transportation, unloading and delivery. • A carriage of goods contract is therefore the legal document entered between a carrier and a sender (or consignor) where the carrier undertakes to move goods in return for payment to another person, usually the receiver (or consignee).
  • 3. • Carriage of goods is, by law, the movement of goods by land, sea, or air. • This includes packaging, storage, transport, unloading, and distribution and the carriage of goods can be unimodal or multimodal. • Unimodal refers to the carriage of goods when only one mode of transport is used. • Multimodal carriage of goods refers to a situation where a combination of methods is used.
  • 4. • Unimodal international transport is regulated by international conventions e.g. the Warsaw Convention, the Hague-Visby Rules, and Convention relative au contrat de transportinternational des merchandises de route.
  • 5. Components of carriage of goods 1.Delay and misdelivery: Carriers shall be responsible for delay in delivery of the goods to the consignee under all legal systems. The duration of transport may be determined by the laws, international treaties, administrative regulations, or even contractual arrangements, with regard to the correct transport means and deciding the implications of the delay. According to the contract law, “breach of contract occurs if the goods are not delivered within the agreed time.”Under common law, the carrier would typically be responsible for damages if the delay is triggered by a deviation. A divergence occurs when the carrier departs or passes his destination from the path he has explicit or implicitly decided to follow. In the absence of special legislation or contractual arrangements, carriers are not bound by any specific route in civil jurisdictions. A deviation from the usual route is not a mistake on the part of the carrier; the carrier would only be responsible if the deviation creates a delay because it is a loss.
  • 6. 1.Diversion and reconsignment; stoppage in transit: The terms diversion and reconsignment apply to a change of destination or billing before or after the initial destination of a shipment. For the business world, reconsignment is of great significance because products can be transported from a distant source to the most suitable location, and then moved to a certain target destination. Carriers will typically bill for the exercise of the right of diversion or reconsignment. In general, the number of distractions is reduced to ensure that transport means are not being used as storage areas.The goods owner may alter the instructions of the carrier on the place of destination or on the person allowed to take delivery in all the legal systems. The carrier is obliged to satisfy this order, provided he is assured that, at the time of order, the person designating a new delivery venue, or a new receiver is the owner of the goods. In civil-law courts the person holding the transport title is normally entitled to change the destination of the goods, be it a lading bill or another document. Technically, a stoppage in transit is an unpaid seller’s right to change its destination before it is delivered to the destination user. Under the rule, even though the seller hasn’t kept possession of the product in a deal with the buyer, the seller has the right. The British Goods Selling Law of 1893 codifying the common law notes, as symbolic, that the unpaid seller shall resume possession of the goods as long as they are in transit and may retain them until the price is paid or tendered. In the scope of civil law, there are similar clauses.
  • 7. 1.Dangerous Goods: Those goods that may be damaging to persons, means of transport or other goods by nature are dangerous. In all legal regimes, hazardous goods have been transported and special rules have been created.In countries of civil law, the types of products deemed to be hazardous are defined by legislation or administrative rules, which either prohibit shipments by public carriers or specify the terms on which they may be transported. In common law jurisdictions, unless the shipper has stated the dangerous nature of the goods at the time of delivery and has approved them with the knowledge of their existence, it shall be borne by the carrier for any harm caused by hazardous goods shipped for shipment.
  • 8. 1.Carriage by two or more carriers: Goods also enter their destination after two or more carriers have crossed hands. The latter may be the case when the shipper has entered into a contract with many carriers when the shipper authorizes a carrier to serve as their agent for other carriers or when the carrier delivers the products to another carrier without authority.Where the carrier transfers the goods to another carrier without permission, he is responsible for the second carrier’s miss commandments and for any loss or damages sustained by the owner during the period when they were in the second carrier’s hands.In other terms, by executing the contract through an agent’s services, the carrier can not assume responsibility. In addition, the delivery of the goods to a carrier by a tacit or explicit condition that the carriage is carried out by the carrier’s vehicles that constitute a contravention of the contract. In marine transport, this condition is implied.
  • 9. • Carrier’s lien: The legislation is all about ensuring that the freight is paid to a carrier that has taken the goods to its destination. The carrier may have a common-law lien or legislative lien to this effect in common-law jurisdictions. Within the courts of civil law, the carrier typically has a special right. A commercial carrier in commercial-law jurisdictions has a common-law lien in which the goods may be kept before the product has been paid to him. The carrier is not entitled to sell or use the goods, however, parties should agree to the carrier’s active lien — that is, the carrier is entitled to sell the goods.Therefore the shipowner is specifically entitled in the United States to seize and sell goods that are shipped by him in situations where the freight is not paid. Parties that accept that the carrier is not responsible at all, or has a general lien on the goods transported, in other words, a lien that involves debts that do not relate to the pending freight. The carrier has the privileges and responsibilities of a dancer since exercising the lien. This can also be liable for the loss or harm incurred by its negligence and may recover the costs fairly required to maintain the product.Carriers under civil law typically have the luxury of paying freight and incidental costs for the goods transported by them. This privilege is open only to qualified carriers in France and in structures following the French model, who carry goods by carriage contract. The right of civil law varies from a common law condition in which the carrier is empowered to sell the goods for the satisfaction of its claims. The profit encompasses the entire shipment as determined by shipping documents and shall be obsolete when the goods are shipped to the recipient.
  • 10. • Carrier’s role as warehouseman and bailee: • The special obligations imposed on the carrier in all the legal systems apply only for the length of the carry, that is until the carrier takes all appropriate measures to deliver them to the consignee, from the moment the goods are delivered to the carrier for shipment. It means that for the whole time the goods will be in its possession, the carrier is not under his responsibility as a carrier. In fact, before carriage starts or after it ends in compliance with the terms and conditions of a special contract which may qualify as a bailment in common law courts and in civil-law nations, the goods that are delivered for safekeeping to a carrier.In the event, the delivery may not be taken into account, where the delivery carrier may assume an unintended or depositary role, goods may already be in the hands of the transport carrier, as the consignor has refused delivery unjustifiedly, in which case the carrier can take up the function of the accidental bailee, or repository.
  • 11. 1.Carrier’s role as warehouseman and bailee: The special obligations imposed on the carrier in all the legal systems apply only for the length of the carry, that is until the carrier takes all appropriate measures to deliver them to the consignee, from the moment the goods are delivered to the carrier for shipment. It means that for the whole time the goods will be in its possession, the carrier is not under his responsibility as a carrier. In fact, before carriage starts or after it ends in compliance with the terms and conditions of a special contract which may qualify as a bailment in common law courts and in civil-law nations, the goods that are delivered for safekeeping to a carrier.The goods could also be owned by the carrier since unwarranted delivery was rejected by the consignor, and the carrier may, in this case, be kept in the role of an unwanted bailiff or depositary. In civil law, where the parties agree that, before the commencement or after the end of the transport, the carrier shall be in possession of the goods as a warehouse, they shall enter into a reward deposits agreement which is distinct from a carriage agreement.
  • 12. 1.The measure of damages: Owing to the application of the general principles of contract law, damages to breach and failure to execute a carriage contract are typically decided. In the event of a breach of the carriage contract, extraordinary clauses are rare; they are found in international treaties in general. 2.Bills of lading: Various shipments are provided by the carrier to the expeditor when the items are shipped for transport under bills of packing. Unless its right is removed by the transport contract, the shipper is entitled to order the issuance of bill of carriage. The lading bill shall be, first of all, a declaration by a carrier that the goods for shipment have been paid. Additionally, the lading bill is either a carriage contract or proof of a carriage contract. Third, if it is negotiable, as normal with regard to transport by sea, the lading bill controls ownership of the goods and is one of the important documents in funding the movement of goods and services in the world.
  • 13. 1.Freight or forwarding agents: Shipowners also employ cargo or shipping agents’ services, including those who are recompensed for transporting and distributing the goods at their destinations. The services of these persons are typically used where successive carriers or use of the successful means of transport are involved in the transportation of the goods. 2.Mixed-carrier transportation: The word “mixed carriage” refers to circumstances of transport by two or more modes of transport, such as road, sea and air, in which goods are transported to their final destination. At least two choices are available. There may be no specific legal relation between successive carriers, for example, if the shipper has independently contracted each carrier or the shipper has contracted a forwarding agent. In these situations, each carrier has its own access to the shipper or forwarders’ agent and is subject to its own regulations.
  • 14. Important of Carriage and Types of Carriage • Carriage of goods by sea • Carriage of goods by air • Transport of Goods by Road
  • 16. Hague Rules • The Hague Rules represented the first attempt by the international community to find a workable and uniform way to address the problem of shipowners 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.
  • 17. 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.