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CONTRACT OF CARRIAGE Introduction The central documents in most international sea carriage transactions are the Bill of Lading, or for non-negotiable transactions, the Sea Waybill. These are the documents which specify the carrier, shipper, receiver, the cargo, the ports of loading and discharge, the vessel name and other important details. The Bill of Lading and Sea Waybill are also important because they contain the contractual terms of the carriage. Those contract terms are strongly shaped by Australian legislation and international conventions. Set out below is a reproduction of the text of MSC’s current Bill of Lading and Sea Waybill (Revised 12/97). The Bill of Lading and Sea Waybill are important documents. MSC suggests that shippers and receivers review the terms and conditions carefully. If you have any questions about the new terms, please contact your local MSCA office. Please note that the terms and conditions are periodically reviewed and updated. While every attempt will be made to ensure the text below is up to date, please note that in the case of any inconsistency, the terms on MSC’s printed documentation prevail.
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The vessel may commence discharging immediately on arrival without notice to the consignee or any other party, and discharge continuously with or without sorting the goods, or separating them from other goods (whether or not such other goods are in the same ownership) irrespective of weather by day or by night, Sundays and holidays included, any custom of the Port to the contrary notwithstanding, on to quay, or into shed, warehouse, depot, hulk, lighter or other premises, vehicle, vessel or craft as the Carrier or his agents many determine. Such discharge shall constitute due delivery of the goods under this Bill of Lading. The consignee shall bear any charges or expenses incurred by the Carrier wholly or partly in respect of sorting the goods or separating them from other goods (whether in the same ownership or not) on shore or on board for any purpose whatsoever, including any charge or expenses in connection with storage onshore or afloat pending such sorting or separation, and any apportionment of such charges or expenses by the Carrier among different consignees by any method whatsoever in the discretion of the Carrier shall for the purpose of this clause be final and binding upon the consignee. Delivery overside onto the consignee’s lighters is at the vessel’s options and, if declared, is subject to the consignee providing sufficient lighters and men to receive the goods as fast as the vessel can deliver, any custom of the Port to the contrary notwithstanding. Whether the vessel’s tackles or shore cranes or other means be employed in the course of delivery onto Quay or otherwise, any loss of, or damage to the goods, lighters or injury to personnel employed directly or indirectly by the consignee shall, after the end of the Hague Rules period, be at the sole risk of the consignee in every respect whatsoever. The Carrier, his agents and servants shall not under any circumstances whatever be under any liability for failure to notify the consignee of the arrival of the goods, any custom of the port to the contrary notwithstanding. All expenses connected with the loading and discharging up to and from ship’s tackle are for the account of the Merchant.
If the goods are not taken by the Merchant at the time when the Carrier is
entitled to call upon him to take delivery, the Carrier shall be at liberty at
the sole risk and expense of the Merchant to put the goods in safe custody.
For cargoes
of such nature that Port Authorities allow loading and discharge by direct
delivery only, the Merchant shall be notified by the agent if so possible.
Should the Merchant fail to arrange direct delivery all relevant charges
including return freight and handling will be charged to the cargo interests.
6. HAZARDOUS GOODS, MARKINGS. Goods of a dangerous or hazardous nature
and radio-active material must not be tendered for shipment unless a written
certificate of declaration has been given to the Carrier stating:
(a) That the goods, and if applicable the container, flat, trailer, etc. are properly marked, labelled and are adequately packed, and,
(b) The correct technical name, nature and class of dangerous goods. The Merchant shall also be responsible for including such information in the “Particulars Furnished By the Merchant” marking each such item with an “*” in the column entitled <<H.M.>> for Hazardous Merchandise.
(c) Marking, Sorting, Etc. The Merchant shall ensure that break-bulk goods shall be distinctly and permanently marked. Each consignment must be sorted according to marks and in such order as to enable separate stowage and corresponding delivery.
7. DEPARTURE AND ARRIVAL DATES in the Carrier’s liner position lists,
sailing lists and other advertisements, are given without any warranty, and no
claims shall be acceptable for any change in the dates nor even in the case of
the vessel’s non-departure for whatever cause. Carrier shall have the right to
change sailing and arrival dates without notice.
8. EXPORT
OR IMPORT IMPEDIMENTS. Should the goods be refused exportation or
importation by any government or authority, or by anybody purporting to act with
the authority of any government of authority, or should the goods in the
Carrier’s opinion be in such condition that he considers it advisable to
discharge, tranship, return, remove or destroy them, then he shall be entitled
to do so at any port or place.
In such case the Merchant shall bear the risk for the goods and the cost
directly or indirectly incurred and in such cases the freight remains earned and
the additional freight is payable by Merchant for extra transportation or
handling or for carriage beyond the port or place where the Carrier would have
been entitled to discharge the goods.
9.
DECLARATION OF NATURE, WEIGHT OR MEASUREMENT OF GOODS AND OF CONTENTS OF
PACKAGE. If the nature or the value of the cargo has been mis-stated to the
Carrier, the Merchant is not liable to any indemnification whatsoever. In all
cases incorrect statements shall be considered to have been wilfully misstated.
The Merchant
is bound to declare exactly the contents of the packages or containers, the
weight and measurement of the goods, and shall be liable for all consequences of
damage, which might be caused to the vessel or cargo owing to a false
declaration, incorrect description, marks or numbers, or incomplete, incorrect
or delayed requisite documentation.
If on
delivery of the goods it is ascertained, either at the time of loading or at any
time of unloading that the weight or cubic measurement or value is greater than
that declared, or that the goods belong to a higher category than that declared,
the Carrier has the right to charge double freight on the ascertained
difference, the Merchant to pay the labour and expenses of weighing and
measuring the goods entered in this Bill of Lading, if any excess of weight or
measurement should be found. This debt is claimable at the same time and in the
same manner as the freight, and shall constitute a lien on the goods.
10.
IRON AND STEEL PRODUCTS – UNPACKED. The Carrier need not take exceptions to,
and is not held responsible for atmospheric rust, superficial oxidation, white
rust, or any other alteration due to unavoidable sweat or moisture, which might
affect the external aspects of the iron or steel goods or result from their
special nature.
11.
TIMBER. Any statement hereon that timber has been shipped in apparent good
order and condition does not involve any admission by the Carrier as to the
absence of stains, warps, shakes, splits, holes or broken pieces, and this
clause shall be deemed to constitute express notice to all persons taking
delivery on the terms of this Bill of Lading that such timber does or may
contain pieces so affected.
12. (a)
FRAGILE CARGO. All articles of glass or contained in glass, or any of a
fragile nature will be taken on board at Merchant’s risk only, and the Merchant
agrees that the Carrier or Carriers shall not be held responsible for any injury
or breakage or otherwise.
12. (b)
REEFER OR HEATED CARGO. Refrigerated or heated carriage and carriage at
controlled temperature shall not be furnished unless specifically stipulated in
Box 13 (Particulars Furnished by the Merchant), reverse side, and extra freight,
paid per tariff.
12. (c)
Carrier not responsible for damage to cargo in the containers due to ambient low
or high temperatures.
13. SPECIAL CARGO. For theft and loss of gold, silver, precious metals,
in a manufactured state or not, or specie, ornament, watches, furs, laces,
jewels, precious stones, securities, paper money, documents or other papers of
value, silk, paintings, porcelain, glassware, or other precious articles or
variable articles and for damage to precious articles easily damageable, the
Carrier is only responsible if the value and nature of the cargo are declared to
him before or at any time of reception of the cargo and inserted in the Bill of
Lading and provided freight is calculated on the basis of such value. All cargo
the value of which exceed 5 pounds per cubic foot measurement, or per cwt for
weight cargo, is classed as precious. Money and all objects of value must be
packed in double bags with inside seams, or in boxes, both sealed with wax and
the seal must be reproduced on the Bill of Lading and shipping orders.
14. DECK
CARGO AND LIVE ANIMALS. Subject to the international Convention for the
unification of certain rules relating to Bills of Lading dated Brussels the 25th
August 1924 and or as amended by the Protocol signed in Brussels on the 23rd
February 1968, all goods on deck, and live animals, birds or fish are received,
handled, stowed, carried, kept and discharged at Merchant’s risk and the Carrier
shall not be liable for loss thereof, damage or delay whatsoever and howsoever
occurring even though resulting from unseaworthiness of the ship or from the
negligence of the Carrier, his servants or agents or in case or deviation of the
ship.
15. CONTAINERS.
(a) The
Carrier shall have the right to stow goods in containers of all types, including
flats, and the right to carry containers, whether stowed as aforesaid or
received in a stowed condition from the shipper, on or underdeck without notice
to shippers, and if they are so carried, the Hague rules, or COGSA, or other
enactment, as incorporated herein, shall be applicable notwithstanding carriage
on or underdeck and the goods and/or containers shall contribute in General
Average whether carried on or underdeck.
(b) The
Carrier has no responsibility whatsoever for the functioning of reefer
containers or trailers which are not owned or leased by the Carrier.
(c) If the
articles accepted for transportation are containers the contents having been
packed and stowed inside the container by or on behalf of the Merchant and not
by or on behalf of the Carrier, then the Carrier shall be under no liability in
the event of loss or damage to any of the goods directly or indirectly caused by
the manner in which the contents have been packed and/or stowed inside the
container/s or by the unsuitability of the contents for container carriage or by
the unsuitability or defective condition of the container.
(d) Notwithstanding the application of Article
IV, Rule 3 of the Hague Rules pursuant to clause 1 of this B/L or otherwise the
Merchant hereby agrees to indemnify the Carrier against any loss which the
Carrier may suffer, or liability to any person which the carrier may incur, on
account of personal injury or loss of or damage to any property due to the
manner in which the contents have been packed and/or stowed inside the container
or due to the unsuitability or defective condition of the container.
16.
FREIGHT. The freight is always due to the Carrier whether the vessel or
goods arrive at port of destination or not, whether one or the other be lost
during the voyage, or whether the goods arrived damaged or short. The Carrier
shall be entitled to the payment of the whole freight (as deadfreight without
deduction) from the Merchant for all the goods which after a fixed arrangement
may not have been delivered by him to the ship. The Merchant has in no case the
right to deduct from the freight or to set off against the freight any claim he
should have against the Carrier, including leakage, slackage, shortage or
damage. The Merchant shall pay any extra expenses incurred as a consequence of
the cargo not being delivered in accordance with the provisions in Clause 5.
(a) No
weighing of the goods is to take place on board the vessel without permission of
the Carrier. Any expense for weighing onboard as well as extra expenses for
discharging and delivery arising or resulting from weighing onboard are to be
borne by the Merchant, any custom of the port notwithstanding.
(b) Goods
once shipped cannot be taken away by the Merchant except upon Carrier’s consent
and against payment of full freight and compensation for any extra expenses
through such taking away.
(c) All dues,
taxes and charges or other expenses in connection with the goods shall be paid
by the Merchant.
(d) The
Merchant shall reimburse the Carrier in proportion to the amount of freight for
any increase of war risk insurance premium and war risk increase of the wages of
the Master, officers and crew and for any increase of the cost for bunkers and
for deviation or delay caused by war or warlike operations or by government
directions in such connection.
17. PERIOD
OF RESPONSIBILITY. The Carrier or his agent shall not be liable for loss or
damager to the goods during the period before loading and after discharge from
the vessel, howsoever such loss or damage arises. Goods in the custody of the
Carrier or his servants before loading and after discharge, whether being
forwarded to or from the vessel or whether awaiting shipment landed or stored,
or put into hulk or craft belonging to the Carrier, or not or pending
transhipment at any of the whole transport are in such custody at the sole risk
of the Merchant and the Carrier shall not be liable for loss or damage arising
or resulting from any cause whatsoever. If goods are shipped to or from the
U.S.A., U.S. COGSA shall apply before loading and after discharge as long as the
goods remain in the custody and control of the Carrier.
18. LIABILITY OF SERVANTS AND SUB-CONTRACTORS. It is hereby expressly
agreed that no servant or agent of the Carrier, including any independent
sub-contractor employed by the Carrier in any circumstance whatsoever be under
any liability whatsoever to the Merchant for any loss or damage or delay of
whatsoever kind arising or resulting directly or indirectly from any act neglect
or default on his part while acting in the course of, or in connection with his
employment and, without prejudice to the generality of the foregoing provisions
in this clause every exception, limitation, condition and liberty herein
contained and every right exception from liability, defence and immunity of
whatever nature applicable to the Carrier or to which the Carrier is entitled
hereunder shall also be available and shall extend to protect every such servant
or agent of the Carrier (including any stevedore, terminal operator or any other
independent contractor) acting as the aforesaid and for the purpose of the
foregoing provisions of this clause the Carrier is or shall be deemed to be
acting as agent or trustee on behalf of and for the benefit of all persons who
are or might be his servant or agent (including all independent contractors, as
aforesaid) and all such persons shall to this extent be or be deemed to be party
to this Bill of Lading.
19.
SPECIAL CIRCUMSTANCES. If during the voyage special circumstances occur with
regards to the vessel and/or her cargo, or the vessel has to put into a port of
distress or such like port, or if the vessel experiences exceptional delay at a
port or place, the Master or Carrier at their sole discretion has the liberty,
notwithstanding all measures for the common good of the vessel and cargo, to
take such measures on behalf of the cargo as they jointly or severally consider
necessary and desirable, such measures being for the account of the cargo, and
without prejudice to eventual indemnification in General Average. Regarding
damaged cargo or cargo the further transport of which is objectionable, or cargo
by another conveyance at the expense of the cargo and without prejudice to
eventual indemnification in General Average, full freight is still payable. The
Master or Carrier, in making arrangements for any transhipping or forwarding
vessel or means of transportation not operated by the Carrier or Master, shall
be considered solely the forwarding Agent of the Merchant and without any other
responsibility whatsoever.
20.
GOVERNMENT DIRECTIONS, WAR, EPIDEMICS, ICE, STRIKE, ETC.
(a) The
Master and the Carrier shall have liberty to comply with any order or directions
or recommendations in connection with the transport under this contract given by
any Government or Authority, or anybody acting or purporting to act on behalf of
such Government or Authority, or having under the terms of the insurance on the
vessel right to give such orders or directions or recommendations.
(b)
Should it appear that the performance of the
transport would expose the vessel or any goods onboard to risk of seizure or
damage or delay, resulting from war, warlike operations, blockade, riots, civil
commotion, piracy, ice conditions, strikes, or labour troubles of any person
onboard to the risk of loss of life or freedom, or that any such risk has
increased, the Master may discharge the cargo at port of loading or any other
safe and convenient port.
(c) The
discharge under the provisions of this clause of any cargo shall be deemed due
fulfilment of the contract, and if any extra expenses are incurred, they shall
be paid by the Merchant in addition to the freight, together with return freight
if any and a reasonable compensation for any extra services rendered to the
goods, and the Carrier shall have a lien for all such freight and charges.
(d) If any
situation referred to in this clause may be anticipated, or if for any reason
the vessel cannot safely and without delay reach or enter the loading port or
must undergo repairs, the Carrier may cancel the contract before the Bill of
Lading is issued.
21. CLAIMS
VALUATION, PACKAGE LIMITATION, TIME-BAR. The indemnity payable by the
Carrier for non-delivery of the cargo in whole or in part is calculated at the
option of the Carrier on the basis of the invoice value or on the basis of
market values at destination, less duties and expenses saved due to the
shortage.
In any event
the Carrier’s liability shall not exceed the common market value of the goods at
the time and place of shipment. However, should the invoice value of the goods
be lower than the common market value at the time and place of shipment the
Carrier will only pay the invoice value. For lack of any common market value or
invoice value this provision shall apply to the common value accordingly.
Neither the Carrier nor the ship shall in any event be or become liable for any
loss or damage to or in connection with goods in an amount exceeding Pounds
Sterling 100 of lawful tender in the U.K. per package or unit, unless the nature
and the value of such goods have been declared by Merchant before shipment and
inserted in the Bill of Lading. But declaration of value for the purpose of
calculation of freight shall not be considered a declaration in the above sense.
This limitation of liability shall apply to all contractual claims as well as to
any claims arising from other causes. In case goods are shipped to or from the
United States, the Carrier’s liability shall be limited to $500 per package or
customary freight unit, unless excess value is inserted on the face hereof and
extra charge paid.
Where the
goods have been packed into containers by or on behalf of the Merchant, it is
expressly agreed, that each container shall constitute one package for the
purpose of application of limitation of the Carrier’s liability.
If the
Merchant has a shortage in goods or numbers shipped under a Bill of Lading, the
Carrier shall have the option to deliver as substitute any surplus goods of
similar kind and quality.
Notice in
writing of loss or damage must be given to the Carrier’s agent at the Port of
Discharge of Final Destination at or before the removal of the goods supported
by invoices and survey, if any. In any event, the Carrier shall be discharged
from all liability if suit is not commenced within one year after delivery of
the goods or the date that the goods should have been delivered.
The words
“customary freight unit” shall mean each physical unit or piece of cargo not
shipped in a package, including machinery, vehicles and boats of any
description, except goods shipped in bulk, and irrespective of the weight or
measurement unit employed in calculating freight charges.
When it
cannot be established in whose custody the goods were when the loss or damage
occurred it shall be conclusively presumed to have occurred during sea carriage
and any liability therefore shall be governed as provided by this clause.
22. CHARGES. All expenses tallying, measuring, weighing, taring, repairs,
repackaging, sewing, etc. due to causes beyond Carrier’s liability, customs and
other duties and/or formalities statistic duties, stamps and all such charges,
are always for account of the cargo.
The Danish
“Cargo duty” at the port of Copenhagen and Danish provincial ports to be paid by
receivers.
Loading and
discharging tax No. 4 (“droits de peage”) levied at French, Tunisian, Algerian
and Moroccan ports are for consignee’s account.
23.
PAYMENT OF CHARGES AND INDEMNITY. The conditions relative to the freight are
jointly applicable to charges, premiums and eventual claims of the Carrier for
indemnity and demurrage.
24.
CUSTOMS, ETC. The shipper and receiver are obliged to fulfil all regulations
relative to the cargo of all ports, Customs and other authorities and to pay
and/or indemnify the Carrier for all costs and damage in consequence of the non
fulfilment of these regulations, furthermore to pay and/or indemnify the Carrier
for all duties and fines imposed for whatsoever reason by one or any of the
aforementioned authorities, relative to the cargo the Carrier having the right
before delivery, to ask for a deposit and/or sufficient security in accordance
with clause 25 of this contract for any such dues and fines imposed or expected
to be imposed.
25.
SECURITY AND LIEN. If the freight and any further charges or expenses
incurred by the Carrier that are due, have not been paid or – in case the
freight is payable by a party other than the receiver, including freight to be
prepaid – if advice of payment has not yet been received the Carrier – is at
liberty before the discharge of the cargo is commenced to demand a deposit or
other sufficient security for the freight, charges and expenses; if no
sufficient deposit or other security is given, the Carrier is a liberty to store
the cargo at the expense and at the risk of the Merchant. The Carrier shall have
a lien upon goods or documents, which shall survive delivery, for any claims or
amounts due under this contract and costs of recovering same, and shall be
entitled to sell the goods privately or by auction to cover such claims or
amounts.
If on sale of
the goods the proceeds fail to cover the amount due and costs and expense
incurred, the Carrier shall be entitled to recover the difference from the
Merchant.
26.
GENERAL AVERAGE. General Average shall be adjusted in or at any port or
place at Carrier’s option according to York Antwerp Rules 1974 as amended 1990.
The Carrier has the right to refuse or prevent delivery of the goods until the
Receivers shall sign average bond and declare in writing for each parcel
separately the value of the goods. The receivers shall if required, furnish to
the Carrier such security or such deposit as the Carrier or his Agent, without
prejudice, may deem sufficient to cover the estimated contribution in
calculating general average contribution, freight to be added to the value of
the goods. The same to be applied to cover estimated contribution of the goods
in any salvage and/or special charges.
27. NEW
JASON CLAUSE, WAR RISK CLAUSES 1 AND 2, BOTH TO BLAME COLLISION CLAUSE are
deemed to be incorporated in this Bill of Lading. Both to blame collision clause
to remain in effect even if unenforceable in the courts of the United States of
America.
28.
SALVAGE. In case of salvage the measures and arrangements of the Carrier or
the Master shall be collectively binding the Merchant.
Revised 12/97