Hamburg Rules

Summary of Hamburg Rules

A proposed international convention dealing with carrier liability for loss or damage to cargo transported by sea. Known formally as the United Nations Convention on the Carriage of Goods by Sea—1978, the convention was the product of a conference held at Hamburg, Federal Republic of Germany, March 6-31, 1978. The convention was designed to correct deficiences in the earlier (1924) Hague Agreement (read this and related legal terms for further details) and to accommodate such technological innovations as con- tainerization. The Hamburg Rules provide that the convenient shall be applicable to a shipment if the bill of lading is issued in any state adhering to the convention or if the port of loading, port of discharge, or optional ports are in a contracting state; or in any case where the contract of carriage provides for their incorporation. The convention does not apply to charter parties, except where a bill of lading is issued and shipments under bills of lading are otherwise subject to the convention.

The responsibility of the ocean carrier continues from the time he takes delivery of the goods until he relinquishes control; for purposes of the convention, the ocean carrier is responsible for the actions of his agents and servants. The carrier is also responsible for losses due to fires that result from his “fault or neglect.”

Liability is limited to 835 units of account (UA) or 2.5 UA per kilogram, whichever is higher. One UA equals one special drawing right (approximately U.S. $ 1.25) of the International Monetary Fund. Carrier liability for delay would be limited to 2.5 times the freight on the goods delayed, not to exceed the total freight payable on the shipment.

A container would be deemed a package, unless the shipper listed the number of shipping units or cartons on the bill of lading, in which case each carton or shipping unit would constitute a package.

Limitations of carrier liability would be vitiated if it could be proved that the loss was the result of “an act or omission of the carrier done with the intent to cause such loss, damage, or delay, or recklessly and with knowledge that such loss, damage, or delay would probably result.”Judicial or arbitral proceedings against a carrier must be commenced within two years.

The convention will take effect upon ratification by twenty states. As of March 1983, twenty-seven states had signed the agreement, but only eight (Barbados, Chile, Egypt, Morocco, Rumania, Tanzania, Tunisia, and Uganda) had deposited instruments of ratification.

(Main Author: William J. Miller)

Hamburg Rules

Hamburg Rules in International Trade

Meaning of Hamburg Rules, according to the Dictionary of International Trade (Global Negotiator): Formally title The United Nations Convention on the Carriage of Goods by Sea 1978, the Hamburg rules are internationally standard conditions that apply to marine carriage contracts, an are considered more equitable to cargo interest (as opposed to shipowners) than the Hague Rule. These or Hague Rules, are often incorporated as a paramount clause in marine contract of carriage.

Resources

See Also

• See bill of lading; international carriage.