Hague-Visby rules

The Hague-Visby Rules are a set of international rules governing the rights and obligations of shippers, carriers and receivers in the transportation of goods by sea. They were adopted in 1968 to replace the earlier Hague Rules and the provisions of the Visby Protocol of 1968. The Rules apply to all contracts of carriage of goods by sea that involve the carriage of goods in ships carrying goods from one port to another, including multimodal contracts. In general, the Rules provide for the rights and obligations of the parties to the contract, the limits of liability, the obligations of carriers with regard to the care and custody of the goods, and the time limits for bringing claims.

• The Rules apply to all contracts of carriage of goods by sea, including multimodal contracts.
• They provide for the rights and obligations of the parties to the contract, and the obligations of carriers with regard to the care and custody of the goods.
• The Rules also set out the limits of liability for the carrier, and provide for time limits for bringing claims.
• The Rules stipulate that the carrier must exercise due diligence to make the ship seaworthy and to properly man, equip and supply the ship.
• The carrier must also exercise due diligence to properly load, handle, stow, carry, keep, care for, and discharge the goods.

In summary, the Hague-Visby Rules are a set of international rules that govern the rights and obligations of shippers, carriers and receivers in the transportation of goods by sea. These rules provide for the rights and obligations of the parties to the contract, the limits of liability, and the obligations of carriers with regard to the care and custody of the goods.

Example of Hague-Visby rules

The following is an example of one of the Hague-Visby Rules, which relates to the carrier's liability for loss or damage to the goods:

The carrier shall be liable for any loss or damage to the goods, unless it can be proven that such loss or damage occurred without the fault or neglect of the carrier, its servants or agents. The amount of the carrier's liability shall not exceed the value of the goods at the time of shipment, as declared by the shipper, or the freight paid, whichever is the lesser.

This example of one of the Hague-Visby Rules states that the carrier shall be liable for any loss or damage to the goods, unless they can prove that it occurred without their fault or neglect. The amount of the carrier's liability is limited to either the value of the goods at the time of shipment, as declared by the shipper, or the freight paid, whichever is the lesser. In summary, this rule sets out the liability of the carrier for any loss or damage to the goods, and limits the amount for which the carrier may be held liable.

Formula of Hague-Visby rules

The Hague-Visby Rules are defined by the formula:

${\text{Liability Limit}}={\text{Package or Unit Value}}\times {\text{Number of Packages or Units}}\times {\text{Freight Rate}}\times {\text{2 SDR per Kilo}}.$

This formula determines the liability limit of the carrier in terms of the value of the goods, the number of packages or units, the freight rate and two special drawing rights (SDRs) per kilo of the goods. The special drawing rights are a type of international reserve asset, created by the International Monetary Fund, that can be used by member countries to settle international payments.

When to use Hague-Visby rules

The Hague-Visby Rules apply to all contracts of carriage of goods by sea that involve the carriage of goods in ships carrying goods from one port to another, including multimodal contracts. The Rules apply to the carriage of goods for reward on board a seagoing ship, and to the loading, handling, stowage, carriage, custody, care, and discharge of such goods.

The Rules are applicable to bills of lading, charter-parties, sea waybills, and any other similar documents of title, as well as to contracts for the carriage of goods by sea. The Rules also apply to contracts involving two or more modes of transport, such as multimodal contracts, where the sea leg of the journey is the predominant part.

Types of Hague-Visby rules

The Hague-Visby Rules are divided into two parts: the General Provisions and the Special Provisions. The General Provisions apply to all contracts of carriage of goods by sea, while the Special Provisions apply only to contracts of carriage of goods by sea that are subject to the Hague Rules. The General Provisions cover the rights and obligations of the parties to the contract, the obligations of the carrier with respect to the care and custody of the goods, and the limits of liability for the carrier. The Special Provisions cover the time limits for bringing claims and the requirements for the carrier to exercise due diligence to make the ship seaworthy and to properly man, equip and supply the ship.

Steps of Hague-Visby rules

The Hague-Visby Rules provide a set of steps for the transportation of goods by sea. These steps are as follows:

• The first step is for the shipper to provide a signed document of the contract of carriage. This document specifies the terms of the contract, including the route of transport and the amount of goods to be transported.
• The second step is for the carrier to exercise due diligence to ensure the ship is seaworthy, properly manned, equipped and supplied.
• The third step is for the carrier to properly load, handle, stow, carry, keep, care for, and discharge the goods.
• The fourth step is for the carrier to issue a bill of lading, which acts as evidence of the contract of carriage.
• The fifth step is for the shipper to deliver the goods to the carrier and to pay the agreed-upon freight charges.
• The sixth step is for the carrier to deliver the goods to the consignee.

Advantages of Hague-Visby rules

The Hague-Visby Rules offer many advantages to shippers, carriers and receivers in the transport of goods by sea. They provide a set of uniform regulations that are applicable in all countries, allowing for more efficient and cost-effective shipments. The Rules also offer a more comprehensive level of protection to shippers, carriers and receivers, both in terms of liability limits and the level of care and custody expected of the carrier. Furthermore, the Rules provide a set of clear time limits for bringing claims, allowing carriers and shippers to resolve disputes quickly and efficiently. Finally, the Rules provide a level of certainty in the process of shipping goods by sea, allowing parties to more effectively plan and manage their shipments.

Limitations of Hague-Visby rules

The Hague-Visby Rules are limited in scope and application. They only apply to contracts of carriage of goods by sea, and do not apply to other modes of transport such as air or land. Furthermore, the Rules do not apply to contracts involving the carriage of goods in bulk or those involving specialised types of cargo, such as live animals or hazardous cargo. Additionally, the Rules do not apply to carriage of goods for hire and reward, as this type of contract is not considered to be a contract of carriage of goods by sea.

Other approaches related to Hague-Visby rules

• The Hamburg Rules are an alternative to the Hague-Visby Rules, adopted in 1978 by the United Nations Convention on the Carriage of Goods by Sea. The Hamburg Rules provide for a higher level of liability for the carrier, and impose more stringent obligations on the carrier with regard to the care and custody of the goods.
• The Rotterdam Rules, adopted in 2009, are even more comprehensive than the Hague-Visby Rules and the Hamburg Rules, providing for a more comprehensive set of rights and obligations for shippers, carriers and receivers, as well as more detailed rules on the liability of the carrier and the time limits for bringing claims.

In summary, there are other international rules related to the Hague-Visby Rules, such as the Hamburg Rules and the Rotterdam Rules, which provide for a higher level of liability for the carrier and impose more stringent obligations on the carrier with regard to the care and custody of the goods.

Hague-Visby rules — recommended articles

Shipping terms — Waybill — Contract of affreightment — Free carrier (FCA) — Delivery terms — CMR convention — Bill of lading — Freight prepaid — Hamburg rules

References

• Reynolds, F. (1990). The Hague rules, the Hague-Visby rules, and the Hamburg rules. MLAANZ journal, 7, 16.
• Berlingieri, F. (2009). A comparative analysis of the Hague-Visby Rules, the Hamburg Rules and the Rotterdam Rules. UNCITRAL Working Groups Document, 1, 2-25.