Last amended by Merchant Shipping (Liability of Shipowners and Others) (New Limits) Order 2004 in 2000. Updated the financial limits applicable under the Convention on Limitation of Liability for Maritime Claims 1976 (as amended), which runs alongside the Hague-Visby Rules in English maritime law.
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
Summary
The Carriage of Goods by Sea Act 1971 gives the force of law in the United Kingdom to the Hague-Visby Rules — the Protocol of 1968 that amended the International Convention for the Unification of Certain Rules of Law Relating to Bills of Lading (the Hague Rules, 1924). The Rules are set out in the Schedule to the Act and have the force of statute. The Act applies where a bill of lading is issued in a contracting state, where the port of shipment is in a contracting state, or where the contract expressly provides for the Rules to apply. The Rules impose minimum duties on carriers: to exercise due diligence to make the ship seaworthy before and at the commencement of the voyage (Article III, rule 1) and to properly and carefully load, handle, stow, carry, keep, care for, and discharge the goods (Article III, rule 2). In return, the carrier is given the benefit of a list of 17 excepted perils (Article IV, rule 2) including act of God, act of war, errors in navigation, and fire. Liability is subject to a financial limitation per package or unit of weight. The carrier cannot contract out of the minimum obligations: any clause purporting to do so is void (Article III, rule 8).
Key Points
- Gives the force of law to the Hague-Visby Rules in England and Wales (s.1(2)); applies mandatorily to bills of lading issued in the UK, bills covering shipment from a UK port, and bills that expressly apply the Rules
- Carrier's duty to exercise due diligence to make ship seaworthy before and at commencement of voyage — not an absolute warranty of seaworthiness (Article III, rule 1)
- Carrier's duty to properly and carefully load, handle, stow, carry, keep, care for, and discharge goods (Article III, rule 2)
- 17 excepted perils including act of God, act of war, inherent vice of the goods, errors in navigation, fire, and strikes (Article IV, rule 2)
- Package limitation — carrier's liability capped at 666.67 SDR per package or unit, or 2 SDR per kilogram of gross weight of cargo lost or damaged, whichever is higher (Article IV, rule 5(a))
- One-year time bar — suit must be brought within one year after delivery or the date when delivery should have taken place; after which any liability of the carrier is discharged (Article III, rule 6)
- Anti-avoidance — any clause in a contract of carriage purporting to relieve the carrier of liability or lessen their liability otherwise than as provided by the Rules is null and void (Article III, rule 8)
- Deviation — reasonable deviation does not constitute a breach of the Rules; unreasonable deviation may deprive carrier of the benefit of the exceptions (Article IV, rule 4)
Parts & Sections
Amendments History
1992 — Carriage of Goods by Sea Act 1992
A companion Act (not an amendment) which reformed the rules on transfer of contractual rights under bills of lading, replacing the Bills of Lading Act 1855. The 1992 Act provides that the lawful holder of a bill of lading may sue on it and be sued on it as if they were party to the contract of carriage.
2000 — Merchant Shipping (Liability of Shipowners and Others) (New Limits) Order 2004
Updated the financial limits applicable under the Convention on Limitation of Liability for Maritime Claims 1976 (as amended), which runs alongside the Hague-Visby Rules in English maritime law.
Frequently asked questions
- When does the Carriage of Goods by Sea Act 1971 apply to my shipment?
- The Act applies if the bill of lading is issued in a contracting state, the port of shipment is in a contracting state, or the contract expressly provides for the Rules to apply. In England and Wales, it applies mandatorily to bills of lading issued in the UK, bills covering shipment from a UK port, and bills that expressly apply the Hague-Visby Rules.
- What are the carrier's main duties under the Act?
- Carriers must exercise due diligence to make the ship seaworthy before and at the start of the voyage. They must also properly and carefully load, handle, stow, carry, keep, care for, and discharge the goods. This is not an absolute warranty of seaworthiness, but a duty to exercise due diligence to ensure the vessel is fit and safe.
- Is there a limit to how much a carrier can be liable for?
- The carrier's liability is capped at 666.67 SDR per package or unit, or 2 SDR per kilogram of gross weight of cargo lost or damaged, whichever is higher. However, these limitations do not apply if the carrier acted with intent to cause damage or recklessly with knowledge that damage would probably result.
- Can a carrier include terms in a contract to avoid liability?
- Yes, any clause in a contract of carriage that purports to relieve the carrier of liability or lessen their liability otherwise than as provided by the Rules is null and void. This anti-avoidance provision ensures that carriers cannot contract out of the minimum obligations imposed by the Hague-Visby Rules.
- How long do I have to bring a claim against a carrier?
- Suit must be brought within one year after delivery or the date when delivery should have taken place. If no action is brought within this time limit, the carrier is discharged from all liability. This one-year time bar is a strict requirement under the Rules.
- What is the legal status of the Hague-Visby Rules in the UK?
- The Act gives the force of law in the United Kingdom to the Hague-Visby Rules, which are the 1968 Protocol amending the 1924 Hague Rules. These Rules are set out in the Schedule to the Act and have the force of statute, establishing minimum duties for carriers and specific exceptions for liability.