Shipping Lawyer Cargo Claims and Dispute Resolution 1

Question 1

Which federal statute governs the liability of ocean carriers for cargo damage on imports to the United States?

Accepted Answer

Carriage of Goods by Sea Act (COGSA)

Answer

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?

Accepted Answer

$500 per package or customary freight unit

Answer

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?

Accepted Answer

The cargo claimant must prove delivery in good order and redelivery in damaged condition

Answer

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?

Accepted Answer

Act of God

Answer

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?

Accepted Answer

A natural quality of the cargo that causes it to deteriorate without fault of the carrier

Answer

Inherent vice refers to goods that deteriorate due to their own nature — such as fruit ripening or raw metals rusting — independent of carrier fault.

Shipping Lawyer Practice Test