CARRIAGE OR GOODS BY SEA Goods transported by sea are governed by the Carriage of Goods by Sea Act, 1925 and

the (Indian) Bills of Lading Act, 1856. Besides, the Merchant Shipping Act, 1958 and the Marine Insurance Act, 1963 are also applicable. Here we shall confine our discussion to the first two of the above mentioned Act. A contract of carriage of goods by sea is called a contract of affreightment and the consideration for carriage is called the freight. A contact of affreightment may take the form of a Charter Party where an entire ship is hired, or a Bill of Lading, where the goods are to be carried in a general ship which can be used for this purpose by any person. In both these contracts, the ship owner as the carrier undertakes the responsibility of carrying the goods of the consignor safely and securely to the destination. Conditions Implied In a contract for carriage of goods by sea, the following conditions are implied: 1. Seaworthiness - This means that the ship is reasonably fit to encounter the 'perils of the sea'. This is an absolute undertaking warranted by the shipowner. Seaworthiness is a relative term meaning that the ship is fit to undertake the particular voyage and to carry the particular cargo. 2. Commencement of Voyage - The ship shall be ready to load the cargo and commence the voyage agreed on without undue delay and shall also complete the voyage with all reasonable dispatch. 3. Non-deviation of Voyage - It means that if the ship does not carry out the voyage by the prescribed or usual route in the customary manner, the contract becomes void from the beginning of the voyage, no matter when and where the deviation from the usual route took place. 4. Dangerous Goods not to be Shipped - If the shipper ships dangerous goods and if on account of this, the charterer suffers any damage, he can recover the same from the shipper. CHARTER PARTY A charter party is a contract providing for a hiring of a whole ship. Its terms may amount to a leasing of the ship, when the master and the crew of the ship become the servants of the charterer. A charter party may be for a particular period, or for a particular voyage. In the former case it is called a time charter party and in the latter case, a voyage charter party has no specific form; the form varies from trade to trade depending on the customs of the trade. BILL OF LADING A bill of lading is issued when goods are delivered for carriage to a general ship, which offers to carry them. The position of the owner of a general ship is that of a

common carrier. A bill of lading may be used even when a ship is chartered. A bill of lading acknowledges the receipt of goods is a document of title to the goods and is also a contract of carriage of goods. A bill of lading, as a document of title to the goods, can be transferred to another person by endorsement and delivery. This characteristic of a bill of lading resembles that of a negotiable instrument, but in the strict legal and technical sense it is not a negotiable instrument. It may be said that it is negotiable only in the popular sense. DELIVERY OF GOODS The prime duty and obligation of a carrier by sea is to deliver the goods to the holder of the bill of lading, provided proper payment of freight has been made. Bill of lading is commonly drawn in a set of three copies, one of which is sent to the consignee, the second is for the ship's master and the consignor retains the third. SHIPOWNER'S LIEN In the event of non-payment of freight and other charges, the ship-owner has a right of lien on the cargo. He is thus entitled to retain the goods in his possession until the dues are paid. His lien exists independently of any express agreement in this regards, but ceases upon the delivery of goods.

CARRIAGE OF GOODS BY AIR The Carriage by Air Act, 1972 governs the carriage of goods by air. The provisions of this Act apply to domestic flights in the same manner, as they are applicable to international flights carrying cargo. The various documents relating to carriage by air are briefly described hereunder. PASSENGER TICKET The Passenger Ticket issued by a carrier must show (I) the place and date of issue, (II) places of departure and destination, (III) the agreed stopping place, (IV) the name and address of the carrier, and (V) the statement that the carriage is subject to the liabilities mentioned therein. The absence or loss of passenger ticket does not affect the validity of the contract of carriage, but if the carrier accepts a passenger without a ticket, he cannot enjoy the benefit of limiting his liability. BAGGAGE CHECK For the carriage of baggage, the baggage check, made out in duplicate must contain the following particulars:

1. 2. 3. 4. 5.

The place and date of issues Places of departure and destination, Name and address of the carrier or carriers, The number of passenger tickets, A statement that the baggage will be delivered to the bearer of baggage check, 6. The number and weight of the package, 7. The amount of the value declared in accordance with Rule 22 (2), and 8. A statement that the carriage is subject to rules relating to liability stated therein. If the baggage check does not contain the particulars set out in (d), (f) and (h) above, the carrier shall not be entitled to the benefit of rules limiting liability. AIR WAY BILL This is a document handed over by the consignor to the carrier along with the goods. The Air Way Bill is prepared in triplicate, the first copy being for the carrier, the second which must accompany the goods, is for the consignee and the third is to be retained by the consignor, after the carrier has signed it in token of acceptance of goods. The Air Way Bill must contain the specified particulars for the correctness of which the consignor is responsible and he will be liable for all damages suffered due to the incompleteness of the particulars. The Air Way Bill is the prima facie evidence of the conclusion of contract of carriage, of the receipt of goods as well s the statement relating to the weight, dimensions, packing of the goods and the number of package. Limitation of Carrier's Liability In India the liability of internal or domestic carriers (e.g. Indian Airlines) for passengers and their baggage has been fixed as follows: 1. In the case of passengers 2,50,000/- francs* per passenger; 2. For registered baggage and cargo 250* francs per kilogram, and 3. For articles in the charge of the passenger himself 5000* francs per passenger. *As per international regulations and for the purpose of ascertaining liability the prevailing exchange rate is used by courts. A carrier cannot reduce his liability but may undertake a higher liability by a special agreement. In the case of damage, the person entitled to delivery must complain to the career forthwith after discover of damage and at the latest within 3 days from the date of receipt of luggage. In case of delay in delivery of goods the complaint must be lodged within 14 days from the date on which the goods have been actually delivered.