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Section 3 of COGSA 92 lays down guidelines establishing when liabilities under a bill of lading, sea waybill or ship’s delivery order will be transferred to a party. In order to clearly explain the effects of the Carriage of Goods by Sea Act 1 and to make an attempt to consider whether or not the new. The tribunal’s decision on title to sue was made pursuant to the Carriage of Goods by Sea Act (COGSA 92). Sections 2 and 5 of COGSA.

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McGee36 F. In the Captain Gregos 8for example, the property passed to the buyer at the time of shipment and to the sub-buyer cogsq the ship reached the Dutch coasts but the bills of lading were never transferred to the sub-buyer. Access essential accompanying documents and information for this legislation item from this tab.

However, in consequence of the provision of this section, the transfer divests the original shipper of the possibility of a claim against the carrier. Moreover, the Act does not only split the correlation between the passing of property and the contractual rights as above stated, but also solves many of the problems of the old law. As noted it solves many of the problems related to the old xogsa and it can be considered, at least for the possibility of introduction of an electronic bill of lading, the carriage law for the 21 st century.

This was not the end of the matter, however. This declaration, if embodied in the bill of lading, shall be prima facie evidence, but shall not be conclusive on the carrier.

The Carriage of Goods by Sea Act – International Law – Italy

It is clear now that a person can become liable on a bill of lading only if he tries to enforce the contract of carriage in a way described by section 3 1.

MormaclynxF. More from this Author. The possibility of the implication of a Brandt contract was considered even when the buyer presented, instead cogda a bill of cogwa, a delivery order 16 cofsa an indemnity This argument was rejected by the judge who pointed out that Milan’s submissions repeatedly identified the basis of their claim as being that they were “lawful holders” and “endorsees” of the bills of lading and that this could only reasonably have been understood by experienced shipowners and maritime lawyers as the foundation stone of a claim based on rights accruing by virtue of COGSA Even if he has transferred to the carrier a document of title representing the goods presumably a bill of lading he is not privy to the contract of carriage because the carriage contract is between the seller and the carrier and consequently he cannot bring a contractual claim against the carrier 3.


Footnotes 1 Milan Nigeria Ltd v. Far East Line, Vogsa.

It follows that, as there is no provision to the contrary, the Act should be construed as providing that, if the person should cease to have the rights vested in him, he should no longer be subject to the liabilities” Isbrandtsen LinesF. However a large number of documents may not be covered by the provisions of the Act; section 1 1 provides cogsw the Act applies to any bill of lading, sea waybill and ship’s delivery order and, in consequence of this, some of the multimodal transport documents might not be protected by the provisions of the Act.

In international contracts of sale that can cause al lot of problems because the buyer is the one who has a realistic interest about the performance of the carrier.

Conclusion When handling cargo claims it is always important to clarify which party has title to sue. Butterworths, at According to section 1 5 the Secretary of State may also “by regulations make provision for the application of this Act to cases where a telecommunication system or any other information technology is used for effecting transactions corresponding to” the issue of a document in relation to the Act, the indorsement, delivery or other transfer of such a document or everything else in cogxa to such a document.

Carriage of Goods By Sea Act 1992

After receiving the Senate’s advice and consent, the President may ratify the Rotterdam Rules and deposit the ratification with the United Nations. In this case the plaintiff, Borealis, bought from Stargas a cargo containing 43, tonnes of propane.

Use this menu to access essential accompanying documents and information for this legislation item. Such a requirement would also create a divergence between English law and U. Moreover in The Delfini 9 case the load was released against an indemnity from the shipper and the court stated that section 1 of the Bills of Lading Act could not apply because “the property passed to the consignee before the bill of lading reached him” As emphasised above the scope of section 2 1 is to transfer the rights to suit to the “lawful holder” of the bill and to the person who is the person to whom delivery of the goods to which a sea waybill or ship’s delivery order relates.

Accordingly, the tribunal found that Churchgate had no title to sue under the bills.

The main issue is that where an electronic bill of lading is developed the Act will cover it. He observed that straight bills of lading were not uncommon before the Hague Rules were drafted or adopted, and that if it had been intended to exclude straight bills of lading from the scope of the Rules “special provision to that effect would surely have been made”and that there was no sensible commercial reason why the draftsmen of 9 Hague Rules would have wanted to deny a consignee under a straight bill of lading of the same degree of minimum protection afforded a consignee that obtains rights by endorsement under an order bill of lading.


COGSA 92 also allows the bill of lading holder to exercise rights of suit for the benefit of the cargo owner, if cogss cargo owner is the party suffering the loss. Events from this Firm. The appellant, the carrier of a consignment of four containers of printing machinery, sought to argue that the stricter package limitation contained in US COGSA should apply, whereas the receiver contended and had successfully argued before the Court of Appeal that the more liberal package limitation contained in UK COGSA should apply the bill having been issued in prior to UK COGSA coming into force.

The Act does not cover merchant’s delivery orders and, since section 4 1 requires a ship’s delivery order to contain an undertaking “by the carrier to a person identified in the document”, it also excludes ship’s delivery orders where issued by the bill of lading holder.

The Bills of Lading Act 2 was passed basically ocgsa solve the problem concerning the position of the buyer of goods carried by cosga in three particular situations: In other words the buyer would be considered a stranger to that contract 4. Any comments on this article can be e-mailed to the Gard News Editorial Team.

The main deficiency of the Bills of Lading Act has been noted in the case of bulk shipments, which were not foreseen when the Act was born. Even the Rotterdam Rules do not precisely define a package or unit, leaving to the courts the burden and authority to interpret what is enumerated in the bill of lading.

Carriage of Goods by Sea Act

Even if the doctrine of privity has been changed by section 1 of the Contracts Rights of Third Parties Actsection 6 5 of the latter explicitly excludes contracts of carriage from the effects of the Act.

References in this Act to the holder of a bill of lading are references to any of the following persons, that cogsx to say Representations in bills of lading.

Supp, AMC N. Pace then applied to the tribunal for a correction to the third award to deal with their contention that the only claim advanced by Churchgate was “a claim in their own name and right”, and that any claim on behalf of New Burlington would raise a new cause of action which was now time-barred.