CHALLENGES FACED BY URBAN AND ROAD PASSENGER TRANSPORTATION WITHIN THE URBAN AREAS OF ACCRA

Scope of application of the Hague-Visby Rules

By: Evans Ago Tetteh, Ph.D.

The Hague–Visby Rules is a set of international rules for the International carriage of goods by sea. It seeks to regulate all contracts entailing the issuance of a bill of lading or any similar document of title relating to the carriage of goods between ports in two different States and it provides for a very soft system of liability in favour of the carriers. 

The rules apply to every bill of lading or any similar document of title relating to the carriage of goods between ports in two different States if:

i) The bill of lading or document is issued in a contracting State; or

ii) The carriage is from a port in a contracting State; or

iii) The contract contained in or evidenced by the bill of lading provides that the Hague-Visby Rules or the legislation of any State giving effect to them (e.g. the UK’s Carriage of Goods by Sea Act 1971) are to govern the contract.

Under Article V, the Rules will not be applicable to charter-parties, but if bills of lading are issued in the case of a ship under a charter-party, they must comply with the Rules. 

What are the Positions of the following:

1.     The Ship Owner

If cargo is carried on deck, and if the contract of carriage in respect of that cargo states the cargo “as being carried on deck”, then the carriage of that cargo does not fall within the definition of Goods as set out under Article I (c) of the Rules:

Art 1 (c): "Goods" includes goods, wares, merchandise and articles of every kind whatsoever, except live animals and cargo which by the contract of carriage is stated as being carried on deck and is so carried;

As such, the Rules do not apply to that carriage so that Article III r 8, which states:

“Any clause, covenant or agreement in a contract of carriage relieving the carrier or the ship from liability for loss or damage to or in connection with goods arising from negligence, fault or failure in the duties and obligations provided in this Article or lessening such liability otherwise than as provided in these Rules, shall be null and void and of no effect.”

has no affect and the carrier is free to avail himself of wider defences than those contained within the Rules.

In this subsection ‘deck cargo’ means cargo which by the contract of carriage is stated as being carried on deck and is so carried.” This means that for the goods which form the subject matter of the carriage contract to be subject to the HVR, it must not have been expressly excluded as goods being carried on deck on the B/L. From the facts, this special arrangement was not made on the B/L and so the goods even though carried on deck, are those that are in the contemplation of the HVR. Thus, the shipowner is liable.

2.     The Shipper

Flowing from the discussion above, the shipper can claim for damages for the goods that were destroyed on the vessel. From the facts however, the shipper has already sold the goods to a third party who now is the legal owner for value as evidenced by the endorsed B/L.

3.     The Endorsee

Thus, the endorsee being the rightful holder of the B/L can claim for damages from the Carrier.