Law of carriage of goods by sea - Essay Example

However this extra equipment was necessary to avoid the build up of potentially explosive gases and to keep the cargo at the agreed temperature, both for purposes of care for the cargo and the safety of the vessel. The case suggests that the Fast &Ready company, the owners of ships/vessels had to charter the vessel Multipurpose by 15th December for carrying toxic liquid cargo of 5000 tonnes of chemicals. Yet considering the fact that Multipurpose will have to be fitted with extra piping, heating and ventilation systems to avoid extra build up of gases and to keep the cargo and vessel safe, Fast & Ready will have to invest considerable amount of money in upgrading the vessel and avoiding the dangers otherwise they may be liable to legal proceedings by the companies who hire their vessels.

Considering this, the following advice could be given to Fast & Ready. The important document and law that needs to be attended to is the bill of lading that is a contract of carriage. Carriage of goods involves the bulk of commercial activity and although bills are negotiable, they control possession of goods and allow movement of merchandise and commodities around the world. In case of loss or damaged goods, the basic legal structure that regulates this and the statute is the Carriage of Goods by Sea Act 1936 and this is also known as Cogsa that applies to foreign trade1.

The Cogsa is applicable from the time the goods are loaded to until they are discharged. The Cogsa is updated from the Harter Act and Hague rules which laid down that shipowners should be prevented from contracting unless they take care to put the vessel in good shape before the voyage and also considering the goods that would be used aboard. The shipowner's duty is to provide a seaworthy vessel. Cogsa and Harter are applicable although any bill of lading would incorporate similar statute. Shipowner's liabilities are many and these are to make the vessel seaworthy, to use proper equipment and supply as also manning of the vessel, to make sure that holds, cooling compartments and areas where goods are to be stored are suitable and safe for storage, preservation and carriage.

The Cogsa has the following provisions and limitations.Section 4 (1) of Cogsa2 that:"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 provision of paragraph (1) of section 3.

Whenever loss or damage has resulted from unseaworthin