Maritime Law Shipping and Maritime Law 2

Question 1

Under the Carriage of Goods by Sea Act (COGSA), what is the carrier's standard liability limit per package?

Accepted Answer

$500 per package

Answer

COGSA limits carrier liability to $500 per package or customary freight unit unless a higher value is declared.

Question 2

Which international convention governs the limitation of liability for maritime claims in the US context?

Accepted Answer

The Limitation of Liability Act of 1851

Answer

The US Limitation of Liability Act of 1851 allows shipowners to limit liability to the post-casualty value of the vessel plus pending freight.

Question 3

A bill of lading marked 'freight prepaid' means:

Accepted Answer

The shipper has already paid the ocean freight charges

Answer

'Freight prepaid' indicates the shipper has paid the freight charges before shipment, and the carrier cannot withhold delivery for non-payment of freight.

Question 4

What is 'deadfreight' in maritime commerce?

Accepted Answer

Freight charges paid for space booked but not used

Answer

Deadfreight is compensation paid by a charterer to a shipowner when the charterer fails to provide the agreed quantity of cargo.

Question 5

Under a voyage charter, who typically pays for the port costs at the loading and discharging ports?

Accepted Answer

It depends on the charter terms (FIOST clauses)

Answer

Port cost allocation depends on charter terms — FIOST (Free In and Out, Stowed, Trimmed) clauses specify which party bears loading, stowing, and discharge costs.

Maritime Law Practice Test

Maritime Law Practice Test

Maritime Law Shipping and Maritime Law 2