regulations of carriage of goods by sea

International conventions

01. Hague Rules 1924
02. Hague Visby rules 1968
03. Hamburg Rules 1978

In international shipping at latter part of 19th century, and early part of 20th century, there has been an agitation by merchant for a fair deal for loss or damage for the cargo, as ship owners had their own terms, which were made, beneficial for them, as far as the risk and liability of the ship owners are concerned. Therefore necessity was arose to have rules to regulate contract of carriage. As a result major trading nations met in Hague and agreed for common rules. This was named as Hague rules of 1924.

It was further amended by Hague Visby rules in 1968. If these rules are to become in force for individual nations, each country should incorporate them in to their local legislation.

UNCTAD and shippers council saw the above Hague and Hague Visby rules ware still inadequate and obsolete for current container trade and formulated Hamburg Rules in 1978. 1991 November minimum of 20 nations ratified this convention and thereby came into force internationally. However it has not been enforced by most of the developed and many other nations as a low in their respective countries. They still implement Hague Visby Rules.

Under Hague Visby rules, the carrier’s liability for any loss or damage to the cargo, amounts not to exceed equivalent of 10,000 France per package or unit or franc 30 per kilo, unless value of the cargo is declared by the shipper and inserted in the bill of lading.


The fundamental differences between Hague Visby and Hamburg rules are:

01. Hamburg Rules cover not just port to port but extended to acceptance and delivery of containers at container yards.

02. Hamburg rules cover deck cargo as well, whereas under Visby rules B/L should be clause for protection of same.

03. Hamburg rules make carrier liable for delays in carriage.

04. Time bar on claims, increased from 1-2 year in Hamburg rules.

05. Under Hamburg rules carrier liable for damage to cargo caused by fire, provided claimant proves that it’s neglect by the ship.

06. In Hamburg rules removes hitherto defense of “negligent navigation”.

07. Hamburg rules, stipulate that the first carrier remains liable when goods are transferred to 2nd or 3rd, unless provision is made in contrary.

08. Hamburg rules implicates usage of EDI and seaway bills, besides B/Ls.