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Carrier's Liability - Essay Example

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Carrier s Liability in Carriage of Goods by Sea Carrier s Liability in Carriage of Goods by Sea Introduction The past few decades witnessed the world’s rapid move toward globalization and trade liberalization. As traders realized the importance of economic integration, the concept of market became rather broader in a way that removes the business barriers of national borders…
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Carriers Liability
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Download file to see previous pages This case study will analyze various aspects of Hague-Visby Rules, which involve group of international laws for the international carriage of goods by sea. Possible Causes of Ship Grounding Ship grounding is a marine accident that may lead to severe damages to the vessel as well as to the carriages. All the ports cannot accommodate all ship sizes since the depth of sea varies from port to port. For instance, although the New York port is one of the world’s busiest ports, it cannot allow ships with higher tonnage to enter the port because of its low draft. Sometimes, accumulation of silt and mud near the ports reduces draft and it may lead to ship grounding. It is also identified that an unpredictable change in tides may also cause such marine accidents. Various past incidents show that human error is the main cause of grounding accidents. Insufficient information about the port and navigational waterways may result in severe grounding accidents. “Sheer maneuvering negligence and improper retaliations at the time of grounding has been the root cause of major accidents” (Improved maritime Educatio & Training). ...
As reported in (2011), the grounding of the Spirit of Resolution, owned by Pacifica shipping, on 3rd February 2011 can be attributed to power failure. Hague-Visby Rules As Carr (2010, p. 231) points out, the Hague-Visby Rules represent a group of global policies for the international carriage of goods by sea. The official title for the Hague-Visby Rules is “International Convention for the Unification of Certain Rules of Law relating to Bills of Lading,” and this set of rules was drafted in 1924. These rules were amended in 1968 and in 1979. The basic idea behind the Hague-Visby Rules is that a shipper has less bargaining power than the carrier. Therefore, the law has to impose minimum obligations on the carrier in order to protect the interests of the cargo owner. From the given case description, it is clear that the carrier (owners of the Sea Chariot) had issued one bill of lading for the entire cargo and this document involves the application of Hague-Visby Rules. Possible Arguments for Carrier Since this case comes under the Hague-Visby Rules, the carrier must prove that he has met all responsibilities and liabilities described in the Article III of the Hague-Visby Rules. The Article III contains eight sections which specify different responsibilities and liabilities of the carrier. According to the Article III, before the beginning of the voyage, the carrier must exercise due diligence in order to make the ship seaworthy and to ensure that all precautions are taken to secure the carriages. Hence, the carrier may argue that the ship was seaworthy and he had carried out loading, handling, and discharge of carriage goods properly. Similarly, Article IV of the ...Download file to see next pagesRead More
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