15

CONTRACT OF CARRIAGE

Article 1, Paragraph (b) of the Hague-Visby Rules gives the definition of the contract
of carriage.

The "contract of carriage" applies only to contracts of carriage covered by a bill of
lading or any similar document of title, in so far as such document relates to the
carriage of goods by sea, including any bill of lading or any similar document as
aforesaid issued under or pursuant to a charter-party from the moment at which such
bill of lading or similar document of title regulates the relations between a carrier and
a holder of the same;

The bill of lading is not an ordinary contract of carriage. Because the Hague-Visby
Rules are of public order, its Rules are only applicable to a negotiable bill of lading
which, in fact has been negotiated. This means that only the third holder will be able
to take advantage of the public or imperative character of the Hague-Visby Rules. If it
has been determined that the holder of the bill of lading is also the shipper, who was
at liberty to accept the terms of carriage, the Hague-Visby Rules do not apply and all
exoneration clauses or exceptions which were incorporated in the bill of lading are
valid. (See also deck cargo and live animals.)

The Hague-Visby Rules are not applicable to the charterparty, on the understanding
that, if, for goods carried under the terms of a charterparty, negotiable bills of lading
have been issued, these bills of lading have to comply with the Hague-Visby Rules
from the moment they determine the relationship between the carrier and the third
holder of the bill of lading.

If the bill of lading shows the mention all terms and conditions, liberties and
exceptions of the charterparty, dated overleaf, are herewith incorporated , this
creates a clear situation and both parties shall, in case of a dispute, refer to the
clauses of the charterparty except for the cases foreseen by the Hague-Visby Rules
which are of public order and who, in case of contradiction, will destroy the clauses or
agreements of the charterparty. In other words, if in the charterparty something has
been agreed which is in contradiction with the Hague Visby Rules, than this
agreement is invalid and the Hague-Rules have to be applied.

See: Gencon Charterparty, Clause 9, Bills of Lading; Congenbill, Conditions of
Carriage.

If the charterer keeps the bill of lading, in other words, if the bill of lading is not
negotiated, than it serves as a mere receipt.

It is evident that the Visby-Rules are also applicable to the negotiable bill of lading for
combined transport.

In the U.S, Canada and Scandinavia and now also in Europe, a Short Form Bill of
Lading and a Blank Back Bill of Lading are used. See furtherin this book, Types of
Bills of Lading.




16
NOTE

For details relating to the contract in general, see appropriate reference books or law
books on that subject.

Quick Reminder

The bill of lading is a special type of contract of carriage on which the Hague-Visby
Rules are compulsory if it is negociated.

In under the terms of a charterparty negotiable bills of lading have been issued, they
have to comply with the Hague-Visby Rules (if negotiated).

If the bill of lading is not negotiated it serves as a mere receipt.

THE GOODS

Article 1, Paragraph (c) of the Hague-Visby Rules gives the definition of the goods.

Goods includes goods, wares, merchandises and articles of every kind
whatsoever, except live animals and cargo which by contract of carriage is stated as
being carried on deck and is so carried.

With regards to goods, a distinction has to made between:

Ordinary goods which are carried under deck i.e. which are stowed within the
holds of the ship.
Goods which are carried on deck i.e. not within the holds and live animals.
Containers, which are carried under deck or on deck.
Dangerous goods.

Goods Under Deck

Under deck shipments encompass all the goods, except live animals and dangerous
goods, which are loaded within the holds of the ship. These goods have to be
described in the bill of lading (type, marks, quantity, apparent order and condition,
etc.) in such a way that they are easily identified.

Deck Cargo and Live animals

The Hague-Visby Rules dont apply to goods loaded on deck and to live animals.
Usually these goods are carried under the responsibility of the master. For these
goods, parties may, consequently, depart from the Rules and insert exoneration or
exemption clauses in the bill of lading which will be completely lawful. If the owner
doesnt want to carry any responsibility for deck cargo or for live animals, he will have
to insert an exemption in the bill of lading. In some standard bills if lading, the
following clause can be found:

"CONLINEBILL - Clause 9 - Life Animals and Deck Cargo shall be carried subject to
the Hague Rules as referred to in Clause 2 hereof with the exception that notwithsta-
nding anything contained in Clause 19 the Carrier shall not be liable for any loss or