Limitation of liability is a concept that allows a carrier to limit their liability for maritime claims up to a limited sum regardless of the actual monetary value of the claim.. In short, there is a limit on the maximum amount of compensation that a carrier may need to pay..
Despite the varying forms, the main characteristic of the limitation of liability is that, while in principal the carrier may be liable for damages, the extent of their liability is reduced by this limitation..
Limitation of liability is governed by a number of Conventions adopted by the International Maritime Organization (IMO) and is expressed in Special Drawing Rights (SDR)..
There are a few popularly used conventions and rules covering the Carriage of Goods by Sea and this article by Ali Shami compares the limitation of liability in the various contracts of carriage by sea..
In one of my previous articles I had discussed the difference between Pre-Carriage & On-Carriage.. Today i received a question asking what is the difference between “Main Carriage” and “On Carriage”..
This is from someone new to the shipping industry.. Since this site is dedicated to assisting newcomers to the industry to learn about shipping and ask questions such as these, I am reproducing an updated version of the previous article..
A reader of this blog had asked a question as below : What is the limitation on 3 OBLs? Why 3….I’ve had customers request 5+ OBLs to be issued. When I said ‘no’….they asked why, and now I’m stumped. Not sure if this ties into the debate of properly endorsing the OBL….but if surrendering an endorsed OBL negates the other … Read more here..
As advised in one of my very first articles – Article 2 – The Documents – a Bill of Lading – abbreviated to read B/L is a document that serves as a document of title, evidence of a contract of carriage and an evidence for receipt of goods by the carrier.. This is issued by the shipping line after ascertaining and confirming that … Read more here..