Shipping Lawyer Cargo Claims and Dispute Resolution 1 — Questions and Answers
Question 1: Which federal statute governs the liability of ocean carriers for cargo damage on imports to the United States?
- Carriage of Goods by Sea Act (COGSA) (Correct answer)
- Carmack Amendment
- Harter Act
- Jones Act
Correct answer: Carriage of Goods by Sea Act (COGSA)
COGSA (46 U.S.C. § 30701 et seq.) governs ocean carrier liability for cargo loss or damage on import and export shipments to and from the US.
Question 2: Under COGSA, what is the carrier's standard package liability limit?
- $500 per package or customary freight unit (Correct answer)
- $1,000 per package
- $250 per kilogram
- Unlimited liability
Correct answer: $500 per package or customary freight unit
COGSA limits a carrier's liability to $500 per package or customary freight unit unless a higher value is declared by the shipper.
Question 3: Which party bears the initial burden of proof in a COGSA cargo damage claim?
- The cargo claimant must prove delivery in good order and redelivery in damaged condition (Correct answer)
- The carrier must disprove all damage
- The insurance company
- The port authority
Correct answer: The cargo claimant must prove delivery in good order and redelivery in damaged condition
The cargo claimant must first show the goods were shipped in good order and received in damaged condition, then the burden shifts to the carrier.
Question 4: Which COGSA exception excuses a carrier from liability for cargo damage?
- Act of God (Correct answer)
- Market price decline
- Carrier's financial insolvency
- Port congestion delays
Correct answer: Act of God
COGSA § 4(2) lists specific defenses including Act of God, act of war, inherent vice, and errors in navigation or management of the ship.
Question 5: What is 'inherent vice' in the context of a COGSA cargo claim defense?
- A natural quality of the cargo that causes it to deteriorate without fault of the carrier (Correct answer)
- A manufacturing defect in the vessel
- Negligent packing by the shipper
- An undisclosed dangerous cargo
Correct answer: A natural quality of the cargo that causes it to deteriorate without fault of the carrier
Inherent vice refers to goods that deteriorate due to their own nature — such as fruit ripening or raw metals rusting — independent of carrier fault.
Question 6: When must a cargo claimant provide notice of non-apparent damage to preserve a COGSA claim?
- Within three days of delivery (Correct answer)
- Within one year of delivery
- At the time of delivery
- Within 30 days of delivery
Correct answer: Within three days of delivery
For non-apparent damage, COGSA requires written notice within three days of delivery; apparent damage must be noted at time of delivery.
Shipping Lawyer Cargo Claims and Dispute Resolution 1
Which federal statute governs the liability of ocean carriers for cargo damage on imports to the United States?