Shipping Lawyer Cargo Claims and Dispute Resolution 2 — Questions and Answers
Question 1: What is the significance of a 'clean' bill of lading in a cargo dispute?
- It creates a rebuttable presumption that cargo was received in good condition (Correct answer)
- It proves the cargo was insured
- It exempts the carrier from all liability
- It establishes the shipper's title to the goods
Correct answer: It creates a rebuttable presumption that cargo was received in good condition
A clean bill of lading — one without clauses noting damage or deficiencies — creates a presumption the goods were shipped in good order and condition.
Question 2: Which clause in a bill of lading requires disputes to be resolved in a specific foreign court?
- Forum selection clause (Correct answer)
- Himalaya clause
- Jason clause
- Both-to-blame collision clause
Correct answer: Forum selection clause
A forum selection clause designates the exclusive jurisdiction for resolving disputes, often a foreign court, and US courts generally enforce them.
Question 3: What is the 'Himalaya clause' in a bill of lading?
- A clause extending carrier defenses and limitations to servants, agents, and subcontractors (Correct answer)
- A clause limiting liability to the Himalayan rate
- A clause selecting Himalayan law as governing
- A clause exempting carriers from storm damage
Correct answer: A clause extending carrier defenses and limitations to servants, agents, and subcontractors
The Himalaya clause extends COGSA protections — including the $500 package limitation — to stevedores, agents, and other third parties acting for the carrier.
Question 4: Under COGSA, when does the carrier's period of responsibility begin and end?
- From tackle-to-tackle — when goods are loaded to when they are discharged (Correct answer)
- From warehouse to warehouse
- From booking to final delivery
- From port departure to port arrival
Correct answer: From tackle-to-tackle — when goods are loaded to when they are discharged
COGSA's tackle-to-tackle rule means the carrier's statutory duties apply only from the time cargo is loaded onto the vessel to discharge from the vessel.
Question 5: What happens to COGSA's package limitation if the shipper provides a fraudulent weight or description of cargo?
- The carrier may be liable without limitation (Correct answer)
- The carrier still benefits from the $500 cap
- The shipper owes the carrier additional freight
- The bill of lading is void ab initio
Correct answer: The carrier may be liable without limitation
A carrier that relies on a fraudulent or inaccurate cargo description to its detriment may lose the benefit of the COGSA package limitation.
Question 6: What is a 'freight all kinds' (FAK) rate and how does it affect COGSA package limitation analysis?
- A uniform rate regardless of cargo type, which may complicate the definition of a 'package' (Correct answer)
- A rate that waives all carrier liability
- A rate applied only to hazardous cargo
- A government-set minimum freight rate
Correct answer: A uniform rate regardless of cargo type, which may complicate the definition of a 'package'
FAK rates charge a flat rate regardless of cargo type, and courts examine the bill of lading description to determine the appropriate 'package' for the COGSA liability limit.
Shipping Lawyer Cargo Claims and Dispute Resolution 2
What is the significance of a 'clean' bill of lading in a cargo dispute?