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Monday , December 10 2018
Home / Freight Training News / Basic Liability Vs Limits of Liability
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Basic Liability Vs Limits of Liability

III. CARRIER’S LIABILITY

10. Basic Liability

(1) The Carrier shall be liable for loss of or damage to the goods occurring between the time when it receives the
goods into its charge and the time of delivery.
(2) The Carrier shall be responsible for the acts and omissions of any person of whose services it makes use for
the performance of the contract of carriage evidenced by this Bill of Lading.
(3) The Carrier shall, however, be relieved of liability for any loss or damage if such loss or damage arose or
resulted from:
(a) the wrongful act or neglect of the Merchant.
(b) compliance with the instructions of the person(s) entitled to give them.
 (c) the lack of, or defective conditions of packing in the case of goods which, by their nature, are liable to
wastage or to be damaged when not packed or when not properly packed.
(d) handling, loading, stowage or unloading of the goods by or on behalf of the Merchant.
(e) inherent vice of the goods.
(f) insufficiency or inadequacy of marks or numbers on the goods, covering, or unit loads.
(g) strikes or lock-outs or stoppages or restraints of labour from whatever cause whether partial or general.
(h) any cause or event which the Carrier could not avoid and the consequence whereof it could not prevent
by the exercise of reasonable diligence.
(i) act and instructions of governments, of prince and rulers, act of god, force majeure or authorities (including
custom authorities) performing their duties.
(j) independent subcontractors not appointed by or in the direct services of the carrier.
(4) Where under sub-clause 9 (3) the Carrier is not under any liability in respect of some of the factors causing the loss or damage, it shall only be liable to the extent that those factors for which it is liable under this Clause have contributed to the loss or damage.
(5) The burden of proving that the loss or damage was due to one or more of the causes or events, specified in (a),
(b) and (h) (i) and (j) of sub-clause 9 (3) shall rest upon the party relying on same.
(6) When the carrier establishes that in the circumstances of the case, the loss or damage is attributable to one or
more of the causes or events, specified in (c) to (g) of sub-clause 9 (3), it shall be presumed that it was so caused and
that no further proof is required.

11. Limits of Liability

(1) When the Carrier is liable for compensation in respect of loss of or damage to the goods, such
compensation shall be calculated by reference to the value of such goods they would have had at the place and time
they were delivered to the Merchant in accordance with the contract or when they should have been so delivered.
(2) The value of the goods shall be fixed according to the commodity exchange price or, if there is no such
price, according to the current market price or, if there be no commodity exchange price or current market price,
by reference to the normal value of goods of the same kind and quality.
(3) Compensation per Bill of Lading for goods lost or damaged or for other damages shall not exceed US$ 1.000,00
legal tender of the USA.
(4) Compensation shall not, however, exceed the limits of the Hague Rules, Hague- Visby Rules/ US COGSA 1936/
or any other limit set under the applicable Conventions. In all other events the compensation shall not exceed
US$ 2, 00 per Kilo of gross weight of the goods.
(5) Higher compensation may be claimed only when, with the consent of the Carrier, the value for the goods
declared by the Shipper and which exceeds the limits laid down in this Clause has been stated on page two overleaf
of this Bill of Lading at the place indicated and when an advalorem freight has been paid.
In that case the amount of the declared value shall be substituted for that limit.
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