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The Carriage of Goods Sea Act governs sea shipments to and from the US, establishing responsibilities and protections for shippers and carriers. It requires carriers to issue a bill of lading and ensure their vessel is seaworthy. The act provides protections for carriers if certain conditions are met.
The Carriage of Goods Sea Act is the section of the United States Code that governs the responsibilities and protections of shippers of cargo and carriers of such cargo. The act follows and expands on international law. It establishes who is responsible for the goods at each point in the process and what those responsibilities are.
In 1924, an international convention met to create international rules governing bills of lading. A bill of lading is basically a receipt issued by a shipowner to a shipper. You acknowledge that the goods have been received and the condition of those goods at the time. The bill also acts as a contract, letting both parties know where the goods are going and who will receive them at their destination.
In the United States, Congress has chosen to modify some of the so-called Hague Rules, provided for by the National Convention. The law on the carriage of goods by sea is the result of their efforts. It entered into force on April 16, 1936.
The Carriage of Goods Sea Act governs all sea shipments of goods to or from the United States. It does not apply to shipment between the United States and any province or territory owned by that country. Furthermore, the act only regulates the actual shipping process from the time the goods are loaded until they are unloaded from the ship. Before and after that time, other laws apply.
Under the act, the carrier’s first responsibility is to ensure that his vessel is seaworthy. This means that it is properly manned and equipped. It must also have adequate facilities for the goods that the carrier intends to transport. For example, if it is carrying food, the vessel should have functioning refrigeration units.
The carrier must issue a bill of lading to the sender. This invoice must contain an inventory of the goods and their state at the time of loading. In case of loss or damage to the goods, the carrier must immediately notify the shipper.
If all these conditions are met, the carrier obtains certain protections under the law on the carriage of goods by sea. He or she is not responsible for accidents as long as the ship was seaworthy at the start of the voyage. Force majeure, war and a number of other unforeseen consequences are beyond the control of the carrier, and therefore he or she is not liable for them. As of January 2006, the carrier could not be held liable for more than $500 US Dollars (USD) per unit load. You have the right to destroy any dangerous cargo if it is loaded without your consent.
