Ship Lawyer Cargo Claims and Liability

Question 1

Under the US Carriage of Goods by Sea Act (COGSA), what is the maximum carrier liability per package for cargo loss or damage when no higher value is declared?

Accepted Answer

$500 per package

Answer

COGSA § 4(5) limits carrier liability to $500 per package or customary freight unit unless the shipper declares a higher value and pays additional freight.

Question 2

What is the statute of limitations for filing a cargo damage lawsuit against a carrier under COGSA?

Accepted Answer

1 year from delivery

Answer

COGSA requires suit to be brought within one year after delivery of the goods or the date when delivery should have occurred, mirroring the Hague Rules time bar.

Question 3

Which document serves as the primary evidence of the contract of carriage, receipt of goods, and in negotiable form, title to the cargo?

Accepted Answer

Bill of lading

Answer

The bill of lading is the foundational shipping document that evidences the contract of carriage between shipper and carrier and, when negotiable, represents title to the goods.

Question 4

Under the US Fire Statute (46 U.S.C. § 30504), under what circumstance is a carrier liable for cargo damage caused by fire aboard the vessel?

Accepted Answer

Only when the fire was caused by the carrier's own design or neglect

Answer

The US Fire Statute shields carriers from liability for fire-related cargo damage unless the claimant proves the fire was caused by the carrier's actual fault or privity—i.e., design or neglect.

Question 5

What does the term 'inherent vice' mean as a carrier defense in a cargo damage claim?

Accepted Answer

A natural characteristic of the cargo that causes it to deteriorate without any external cause

Answer

Inherent vice refers to a quality intrinsic to the cargo itself—such as perishability or self-heating—that causes it to damage or deteriorate regardless of how carefully the carrier handles it.

Ship Lawyer Practice Test

Ship Lawyer Practice Test

Ship Lawyer Cargo Claims and Liability