Cargo claims
Claims for damage to cargo shipped in international commerce are governed by the Carriage of Goods by Sea Act (COGSA), which is the U.S. enactment of the Hague Rules. One of its key features is that a shipowner is liable for cargo damaged from "hook to hook," meaning from loading to discharge, unless it is exonerated under one of 17 exceptions to liability, such as an "act of God," the inherent nature of the goods, errors in navigation, and management of the ship. A shipowner is generally entitled to limit its liability to $500 per package, unless the value of the contents is disclosed and marked on the container. The ability to treat an ocean shipping container as a package has enabled shipowners to effectively limit their liability to $500 per container, even though the value of the cargo inside container can be over 1000 times that amount. This practice has resulted in substantial and continuing litigation in the United States. The statute of limitations on cargo claims is one year.
|
|