CHAPTER

 3:   Time  to  pay  the  freight  

Obligations  of  the  Passenger  and  Shipper   The   NCC   does   not   provide   for   the   period   within  
  which   payment   of   the   freight   charges   should   be  
  made  to  the  carrier.  However,  the  implication  of  the  
1.  DUTY  TO  EXERCISE  DUE  DILIGENCE   Code   of   Commerce   on   Overland   Transportation   is  
The   shipper   or   passenger   is   bound   to   pay   the   that  in  the  absence  of  any  agreement,  the  consignee  
consideration.   He   is   also   bound   to   exercise   due   who  is  supposed  to  pay  must  do  so  within  24  hours  
diligence  in  avoiding  damage  or  injury.   from   the   time   of   the   delivery   (Art.   374,   Code   of  
  Commerce;  see  p.175)  
ü   However,   carrier   cannot   impute   the    
negligence   of   its   own   employee   (driver)   to   CoP   by   Sea:   tickets   are   purchased   in  
the  person  or  entity  that  hired  the  carrier.   advance.  The  carriers  is  bound  to  observe  a  
  “No   Ticket,   No   Boarding   Policy.”   Carriers  
2.  DUTY  TO  DISCLOSE   shall   collect/inspect   the   ticket   within   1   hour  
Due   diligence   includes   the   duty   to   disclose   from  the  vessel’s  departure.  
information   relating   to   the   cargo.   Proper    
information   will   help   the   carrier   exercise   proper   vessel  not  able  to  depart  on  time:  
care  and  caution.  Thus,  the  shipper  must  give  proper   unreasonable  delay  (no  just  cause)  –  
information.   A   common   carrier   is   entitled   to   fair   passenger  may  opt  to  have  the  ticket  
representation  of  the  nature  and  value  of  the  goods   refunded   without   any   refund   service  
to   be   carried,   with   a   concomitant   right   to   rely   fee.  
thereon,  and  a  carrier  has  no  obligation  to  inquire    
into   the   correctness   or   sufficiency   of   such   Delayed   voyage   means   late  
information.   departure   of   the   vessel   from   its   port  
  of   origin   and/or   late   arrival   of   the  
Damage   caused   by   cargoes   –   shipper   may   vessel  to  its  port  of  destination.  
be  liable  for  any  damage  that  may  have  been    
caused  solely  by  the  dangerous  nature  of  the   A  passenger,  who  no  longer  wants  to  use  the  
cargoes  or  the  defect  in  the  packaging  of  the   carrier   or   has   actually   failed   to   board   the  
cargoes.   vessel,   can   refund   or   revalidate   the   ticket  
  subject   to   assessment   of   surcharges.  
3.  PAYMENT  OF  FREIGHT   Revalidation  means  the  accreditation  of  the  
ü   Note   on   Police   Power,   regulation   of   rates,   ticket   that   is   not   used   and   intended   to   be  
just   and   reasonable   rates   balancing   the   used  for  another  voyage.  
investor  and  consumer  interests;  (LTFRB)    
  Carrier’s  Lien  
Who  will  pay  the  freight?     If   the   consignor   or   consignee   failed   to   pay   the  
CoG:  Shipper,  but  the  parties  may  stipulate  that  the   consideration   for   the   transportation   of   the   goods,  
consignee  will  pay.     the   carrier   may   exercise   his   lien   in   accordance   with  
Note:  Consignor  is  obliged  to  pay  the  freight  charges   Article  375  of  the  Code  of  Commerce.  
whether  or  not  he  is  the  owner  of  the  goods.      
   
CoP:  Passengers  are  contractually  bound  to  pay  the   4.  TIMELY  LOADING  AND  UNDLOADING  
fare  within  such  time  as  prescribed  by  regulations  or   The   shipper   must   make   sure   that   the   goods   are  
by  the  carrier.   delivered  to  the  carrier  on  the  date,  time,  and  place  
  agreed  upon.  In  addition,  shippers  cannot  insist  on  
  tendering  goods  that  are  in  excess  of  the  number,  
  weight  and  quantity  stipulated  in  the  contract.  After  
notice  of  arrival,  the  consignee  must  present  the  bill  
of   lading   to   the   captain   before   the   unloading.   7.  DUTIES  OF  PASSENGER  
Otherwise,   the   consignee   shall   be   responsible   for   Generally,   passenger   must   pay   proper   fare.   The  
the   expenses   of   warehousing   and   other   expenses   amount  and  time  of  payment  would  depend  on  the  
arising  therefrom.     type   of   carrier,   the   practice   and   regulation   in   that  
  particular   carrier.   Payment   may   be   in   advance,   in  
  Demmurage     the   course   or   transportation   or   before  
Parties  may  stipulate  the  period  within  which   disembarking.  
to  load  and  unload  the  cargoes.  This  period    
is  known  as  lay  days.   §   Passenger   must   present   himself   in   the  
  PROPER  PLACE.    
Demmurage   is   the   compensation   provided   §   Must  also  present  himself  at  a  PROPER  TIME  
for   in   the   contract   of   affregithment   for   the   §   With   respect   to   his   luggage,   passenger   is  
detention   of   the   vessel   beyond   the   time   obligated  NOT  TO  BRING  such  luggage  that  
agreed  on  for  loading  and  unloading.  It  is  the   is  in  excess  of  the  weight  and  size  prescribed  
claim   for   damages   for   failure   to   accept   by   regulations   or   contract.   Passenger   is  
delivery.   This   liability   exists   only   when   prohibited   from   bringing   prohibited  
EXPRESSLY  stipulated  in  the  contract.   materials.  
   
  Travel  Documents  
5.  PERMITS   It   is   the   obligation   of   the   passenger,   not   the  
Passenger  or  shipper  may  also  be  required  to  secure   carrier,   to   secure   the   appropriate   travel  
the   necessary   permits   for   the   transportation   of   documents.  It  is  not  the  obligation  of  the  carrier  
certain   goods.   Ex:   carriage   of   animals,   vehicles,   to  secure  the  necessary  visa  for  a  passenger.  
forest   products,   fish   and   aquatic   products,    
minerals…  etc.  (EMB  clearance)     PAL   v.   CA   –   the   airline   agreed   to   transport  
  two   minors   from   Manila   to   San   Fransisco   and  
  later  to  transport  them  from  San  Fransisco  to  Los  
6.  SHIPPER’s  LOAD  AND  COUNT   Angeles   via   Northwest   Airlines.   However,   the  
Shipper’s  Load  and  Count  arrangement  -­‐  It  may  be   minors   were   not   able   to   board   the   NA   flight  
stipulated  in  the  BoL  that  the  shipper  has  the  sole   because  the  indemnity  bond  which  was  required  
responsibility   for   the   quantity,   description   and   to   be   with   the   minors   was   lost   through   the  
condition  of  the  cargoes  shipped  in  container  vans.       negligence  of  the  petitioner  airline’s  personnel.  
  Hence,  the  petitioner  airline  was  made  liable  for  
Under   this   arrangement,   the   contents   are   not   its  breach  of  its  obligation.  
required  to  be  checked  and  inventoried  by  the  carrier    
at  the  port  of  loading  or  before  said  carrier  enters   Air  Transportation  of  Passengers  
port   of   unloading   in   the   Philippines   since   it   is   the   1.  No  person  on  board  may  interfere  with  a  crew  
shipper   who   has   the   sole   responsibility   for   the   member  in  the  performance  of  his  or  her  duties  
quantity,   description   and   condition   of   the   cargoes   2.  Each  passenger  shall  fasten  his  or  her  seat  belt  
shipped.   and  keep  it  fastened  while  the  seat  belt  sign  is  
  lighted.  
As  such,  the  carrier  cannot  be  held  responsible  for   3.  No  person  on  board  an  aircraft  shall  recklessly  
any  discrepancy  if  the  description  in  the  bill  of  lading   or  negligently  act  or  omit  to  act  in  such  a  manner  
is   different   from   the   actual   contents   of   the   as   to   endanger   the   aircraft   or   person   and  
container.   Here,   the   duty   of   the   carrier   is   only   to   property  therein.    
transport   and   deliver   the   containers   in   the   same   4.  No  person  may  secrete  himself  or  herself  nor  
condition  as  when  the  carrier  received  and  accepted   secrete  cargo  on  board  an  aircraft.    
the  containers  for  transport.     5.  No  smoking,  not  even  in  lavatory  
  6.  Smoke  detector  in  lavatories,  no  tampering.