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Carriage of deck cargo at sea and Hague-Visby Rules
General cargo ships guideline
Unless the contract contained in the bill of lading, charter party or sea waybill expressly provides otherwise, goods
stated in the contract of carriage as being carried on deck and which are, in fact, stowed on deck will not be
protected by the Hague-Visby Rules.
In view of the exclusion of coverage of deck cargo, where the Hague-Visby Rules are incorporated into a contract of
carriage (e.g. by insertion of a Clause Paramount in a charter party or bill of lading), a shipper of deck cargo must
make a separate contract with the carrier. The carrier, not being bound by any special rules covering deck cargo, is
then free to insert in his “on deck” bill of lading any exceptions from liability he wishes. This generally means that
the deck cargo will be carried on deck “at shipper’s risk”, i.e. without liability to the carrier for any loss or
damage, however caused. Many carriers’ bill of lading forms contain an express clause underlining this position.
Where goods are, with the shipper’s agreement, stowed on deck, the carrier (or the master or agent on his behalf)
should issue a bill of lading expressly recording the fact that the goods are carried on deck (e.g. by a “STOWED ON
DECK” endorsement on the face of the bill) so that there is no doubt as to the special risks of the carriage. Any
innocent transferee or endorsee of the bill of lading acting in good faith (e.g. a bank or third party buyer) will then
know the risks attaching to the goods. (It would be unfair to transfer a bill of lading relating to deck cargo without
declaring to the transferee that the goods are on deck and may therefore be damaged.)
Cargo which is carried on deck without being expressly stated as such in the bill of lading or waybill will be subject
to the Rules, as will cargo which is stated as being carried on deck but which is, in fact, carried below deck.
In many time charterparties, responsibility for loading, stowing and discharging cargo lies with the charterer, unless specifically allocated to the ship owner. If this is so, as permitted under the Hague-Visby Rules, the charterer's responsibility will extend to matters affecting seaworthiness, the owner being liable only if the master intervenes in stowage arrangements. If charterers are responsible to load and stow containers, they're must follow regulations on segregation and stowage. If there is any breach the master must protest, requiring re-stowage 'in accordance with the IMDG Code' whilst leaving details of re-stowing to charterers.
Where deck cargo is jettisoned in a general average act
Jettison of Deck Cargo - of the York-Antwerp Rules 1994 provides that:
“No jettison of deck cargo shall
be made good as general average unless such cargo is carried in accordance with the recognised custom of the
trade.” This means that where there is a general average act (e.g. of jettisoning cargo to save the ship, other cargo,
etc.) but the jettisoned cargo is not of a type customarily carried on deck (i.e. not timber, logs, containers on a
purpose-built container ship, etc.) the cargo owner will have no claim under the York-Antwerp Rules to a general
average contribution from the other parties to the adventure.
Where the jettisoned deck cargo was being carried in accordance with the recognised custom of the trade, however,
as in the case of containers on a purpose-built container ship or logs on a purpose-built log carrier, the cargo owner
will have a claim to general average contributions from the other parties to the adventure. He will also have a claim
if the cargo had been carried on deck with the consent of all the other parties to the adventure.
Where jettisoned cargo had been wrongfully stowed on deck
Where jettisoned deck cargo had been stowed on deck without the shipper’s consent or knowledge, the
shipowner, apart from being liable for breach of contract, will be totally liable to the goods owner.
Where deck cargo has been saved by a general average act
Where deck cargo is saved by a General Average act (e.g. by the refloating of a grounded ship), the owner of the
deck cargo is liable to make a General Average contribution along with the other parties to the adventure who have
benefited by the General Average act. Carriers usually underline this in an express statement in their bills of lading.
P&I club advice regarding carriage of deck cargo at sea
Where there is an agreement between the carrier and a shipper or owner of goods (or their agents) to carry goods
under deck, but the goods are stowed on deck, the deck carriage will be a fundamental breach of contract similar
in gravity to an unlawful deviation. The consequences will probably be that the carrier will have no defences to a
claim for loss or damage, and he will not be indemnified by his P&I club.
P&I clubs recommend their members who regularly or occasionally carry cargo on deck to cover the deck cargo
by an “on deck” bill of lading expressly recording the deck stowage. They also recommend the inclusion in the bill
of lading of a clause disclaiming liability for loss or damage, howsoever caused. A statement such as “CARRIED
ON DECK WITHOUT LIABILITY TO THE CARRIER” fulfils both these functions.
Even when there is no agreement concerning under-deck stowage, it may well be a fundamental breach of the
contract of carriage to stow cargo on deck which:
• is not suitable for on-deck carriage; or
• is stowed in an unsuitable position on deck.
Some types of goods should never be stowed on deck. Other types of goods are unsuitable for deck carriage if
they are not packed in such a way as to protect them from sea water damage.
The place of stowage on deck is also important. For example, an open-top container should not be stowed in an
exposed tier at the forward end of the ship but could, in appropriate circumstances, be safely carried in a lower tier
further aft. Unprotected vehicles and boats, etc. should not be carried outboard on the forepart of the upper deck,
especially if their window glass is not specially protected.
The P&I clubs warn carriers that it is most important that, where their bills of lading are not claused for “on deck”
carriage, they should incorporate a suitable liberty clause permitting on-deck stowage at the carrier’s option.
Such a liberty clause is recommended even when the custom of the trade permits on-deck stowage, e.g. when closed
containers are carried on purpose-built container ships. The purpose of these clauses (which are nevertheless
ineffective in a few jurisdictions which do not follow the generally accepted principles of maritime law) is to ensure
that the carrier has a contractual right to stow cargo on deck at his option. Liberty clauses must always be used
reasonably, however, and should not be used to justify deck stowage for cargo which is unsuitable for deck
stowage.
Timber deck cargo
A ship carrying a timber deck cargo must comply with the Carriage of Cargoes Regulations and must
carry a copy of the IMO Code of Safe Practice for Ships Carrying Timber Deck Cargoes (TDC Code) .
Requirements for the assignment of timber freeboards and load lines, and the carriage
of timber deck cargoes, must be complied with.
Related other info pages
- What is a bill of lading ?
A bill of lading is a receipt for goods either received (before shipment) or shipped on board.
It provides good evidence of the existence and terms of a contract between the shipper and carrier ...
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- Function of a bill of lading in cargo ships agreement
a bill of lading is only prima facie evidence as to the quantity, weight and condition of goods
shipped, i.e. if a bill is signed for a greater quantity of cargo than is actually shipped, it may be possible, provided
the bill is not endorsed to a third party,...
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- Bill of lading related problems
Problems may arise handling a bill of lading....
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- How the bolero system works ?
Bolero is designed for all parties in the trade process:
importers, exporters, freight forwarders, port authorities, inspection agencies, carriers, ship’s agents, customs
agencies and financial institutions....
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- Delivery conditions in a time charter agreement
Unless the contract contained in the bill of lading, charter party or sea waybill expressly provides otherwise, goods
stated in the contract of carriage as being carried on deck and which are, in fact, stowed on deck will not be
protected by the Hague-Visby Rules. ...
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- Hague-Visby Rules defining cargo ships obligations and liability
Hague-Visby Rules (HVRs) are properly called the Hague Rules as Amended by the Brussels Protocol 1968 and apply to every bill of lading or any similar document of title relating to the carriage of goods between ports...
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- Hamburg Rules
Hamburg Rules are properly called the United Nations Convention on the Carriage of Goods by Sea 1978, were drafted under the auspices of the UN agency UNCITRAL and introduced in 1992 in response to shippers’ complaints that the Hague and Hague-Visby Rules were unfavourably weighted in favour of the carrier....
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- Outline of a mate's receipt
A mate’s receipt is a receipt, issued and signed by the carrying ship’s chief mate (or the ship’s agent on his behalf), for goods
received on board....
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- Sea waybills and related procedure
A sea waybill is a receipt for goods shipped on board.
It bears good evidence of the existence and terms of a contract between the shipper and carrier, but is not a contract
itself....
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- What is standard shipping note
Standard Shipping Note (SSN) is a shipping document widely used in the UK liner trades to accompany a consignment of goods from their place of origin (e.g. a factory) to the place of loading (e.g. an inland container depot) or the port of shipment....
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