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Carriage of Goods by Sea Act 1971 (COGSA 71)
Carriage of Goods by Sea Act 1971 (COGSA 71) is a UK act to make the Hague-Visby Rules apply to the carriage of goods in certain circumstances.
It contains sections as follows:
1. Application of Hague Rules as amended;
2. Contracting States, etc.;
3. Absolute
warranty of seaworthiness not to be implied in contracts to which Rules apply;
4. Application of Act to British
possessions, etc.;
5. Extension of application of Rules to carriage from ports in British possessions, etc.;
6.
Supplemental.
COGSA 71 contains one Schedule:COGSA 71 The Hague Rules as amended by the Brussels Protocol 1968 (i.e. the Hague-Visby Rules).
It provides, in section 1(2), that the Hague-Visby Rules will have the force of law in the UK.
and in section 1(3), that the Hague-Visby Rules will apply to the carriage of goods by sea where the port
of shipment is a port in the UK, whether or not the carriage is between ports in two different States.
This means
that UK coastal cargo shipped under bill of lading terms is covered by the Hague-Visby Rules, whereas Article
X of the Hague-Visby Rules (where they apply by agreement alone) states that the Hague-Visby Rules apply only
to a bill of lading covering carriage between ports in two different countries.
Many other maritime States have enacted a Carriage of Goods by Sea Act or other legislation similar in purpose to
COGSA 71, which will apply in certain situations (usually where goods are loaded in ports of the State), but the
provisions of each statute may differ. The US COGSA, for example, applies to inward as well as outward cargoes at
US ports.
COGSA 71 makes the Hague-Visby Rules apply to the following documents:
• any bill of lading if the contract contained in or evidenced by it expressly provides (e.g. in a Clause Paramount)
that the Hague-Visby Rules will govern the contract;
• any receipt which is a non-negotiable document, marked as such (e.g. a sea waybill), if the contract
contained in or evidenced by it is a contract for the carriage of goods by sea expressly providing that the Hague-
Visby Rules are to govern the contract as if the receipt were a bill of lading. (Most sea waybills do this.)
Although COGSA 71 applies to all shipments from UK ports (coastwise or overseas), it does not cover shipments
into UK ports (unlike the US COGSA).
COGSA 71 applies only to the seaborne part of the carriage (although the bill of lading may have been issued to
cover a multi-modal operation, e.g. a Combined Transport Operation; in that case, “warehouse-to-warehouse”
insurance would be arranged to cover the other modes of transport).
Carrier’s obligation of seaworthiness under COGSA 71
COGSA 71 states, in section 3, that where the Act applies, there may not be implied in any contract of carriage of
goods by sea to which the Hague-Visby Rules apply under the Act any absolute undertaking (i.e. a guarantee) by
the carrier to provide a seaworthy ship. However, the carrier still has the clear obligation to exercise, before and at
the beginning of the voyage, due diligence to make the ship seaworthy, properly man, equip and supply her, and
make her holds, refrigerating and cool chambers, and all other parts of the ship in which goods are carried, fit and
safe for their reception, carriage and preservation.
COGSA 71 provisions relating to live animals and deck cargo
Although the Hague-Visby Rules, as they stand alone, do not apply to live animals or to deck cargo which is stated
on the bill of lading as being carried on deck and is so carried, COGSA 71 reverses this in section 1(7) by stating
that the Rules will apply as if they did not exclude deck cargo and live animals.
Read more on :Carriage of Goods by Sea Act 1991 (COGSA 91)
Summarized below seagoing cargo ship various employment guide:
- Charty party forms
defines the obligations, rights and liabilities of the shipowner and charterer. Recognised standard form (e.g. GENCON, BALTIME, NYPE)
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Nature of a time charter
The charterers agree to hire from the shipowner a named vessel, of specified technical characteristics, for an agreed period of time, for the charterer’s purposes subject to agreed restrictions.
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-
Voyage charter advantages
contract for the carriage by a named vessel of a specified quantity of cargo between named ports or places.
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- Terms of Bareboat charter and lease arrangement
The vessel owners put the vessel (without any crew) at the complete disposal of the charterers and pay the capital costs, but (usually) no other costs.
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Seaworthiness of vessel
A vessel must be fit to encounter the “ordinary perils of the sea” (e.g. bad weather) and other
incidental risks to which she will be exposed on the voyage..
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- International trade terms (INCOTERMS) in sea transportation
INCOTERMS is a set of rules, published by the International Chamber of Commerce, for the uniform interpretation of the most commonly used trade terms used in international trade contracts.
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- Money transfer procedure in sea transport
Money transfer system commonly used in overseas trade to enable sellers to obtain early payment, i.e. soon
after shipment of the goods.
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- Contract between cargo seller and buyer
The contract of sale between the seller and the buyer of the goods is separate from the contract of carriage which one party or the other, or a third party (such as a freight forwarder), will make with the carrier
.
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- Parties involved in sea transportation of goods
Forming links in the transport chain- Sea carrier, Freight forwarder, shipper, consignee,agent & banks
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- Carriage of goods by sea act 1992 (COGSA 92)
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 who is not an original party to the contract of carriage (i.e. an
endorsee or transferee). The party who takes or demands delivery of the goods to which a bill of lading, sea waybill
or ship’s delivery order relate becomes subject to the same liabilities as the original shipper..
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- Laytime interpretation rules
Rules, which were issued jointly by BIMCO, CMI, FONASBA and INTERCARGO, replace the Charter party Laytime Definitions 1980.
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- CIF ( Cost, Insurance and Freight ) used in international trade terms (INCOTERMS)
“CIF” means Cost, Insurance and Freight (paid to a named place), e.g. CIF London.- is a contract based on the discharge port
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- FOB ( free on board ) used in international trade terms (INCOTERMS)
“FOB” means Free On Board (named port of shipment), e.g. “FOB Newcastle NSW”. It is one of the most commonly used term (INCOTERMS) in sales contracts involving sea transportation of goods.
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- Ships employment baltic exchange
Baltic Exchange members undertake to abide by a strict code of
business practice, enshrined in the famous Baltic motto “Our Word Our Bond”.
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- Ships charter market place
Most ships employed in the charter markets are dry bulk carriers, tankers, combination carriers (e.g. OBOs), or reefer vessels, although there is also a charter market for container ships and for vessels of various special purpose types
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- Common Chartering abbreviations
Many terms commonly used by shipbrokers and others involved in ship
chartering, mainly to save time and effort in communications. Shipmasters may come across many of the acronyms and
abbreviations in documents relating to charters, e.g. in telexed voyage orders and market reports..
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- Tanker freight worldscale
"Worldscale" is the code name for the “New Worldwide Tanker Nominal Freight Scale”, published by the Worldscale Association (London) Limited and the Worldscale Association (NYC) Inc
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