Shipping Lawyer Cargo Claims and Liability 1 — Questions and Answers
Question 1: Under the Carmack Amendment, which type of carrier is primarily regulated for cargo liability?
- Ocean carriers
- Air carriers
- Rail and motor carriers (Correct answer)
- Pipeline carriers
Correct answer: Rail and motor carriers
The Carmack Amendment governs the liability of rail and motor carriers (surface transportation) for loss or damage to cargo in interstate commerce.
Question 2: What must a cargo claimant prove to establish a prima facie case against an ocean carrier under COGSA?
- Carrier negligence, vessel unseaworthiness, and cargo value
- Good order at loading, damaged condition at discharge, and amount of damages (Correct answer)
- Carrier's failure to declare general average
- Misdescription of cargo on the bill of lading
Correct answer: Good order at loading, damaged condition at discharge, and amount of damages
A cargo claimant establishes a prima facie case by showing the goods were in good order when received, were damaged upon delivery, and the amount of loss.
Question 3: What is 'inherent vice' as a defense to cargo damage claims?
- The carrier's negligent stowage
- A defect or characteristic of the cargo itself that causes deterioration (Correct answer)
- Insufficient packing by the shipper
- Contamination from adjacent cargo
Correct answer: A defect or characteristic of the cargo itself that causes deterioration
Inherent vice is a natural quality or defect of the cargo that causes it to deteriorate without any external cause, exempting the carrier from liability.
Question 4: What is a 'survey report' and why is it critical in cargo claims?
- A port capacity study
- A professional inspection documenting cargo damage used as key evidence in claims (Correct answer)
- An environmental compliance assessment
- A vessel classification report
Correct answer: A professional inspection documenting cargo damage used as key evidence in claims
A survey report is a professional assessment of cargo damage, documenting condition, likely cause, and extent of loss, forming the evidentiary backbone of cargo claims.
Question 5: Under general maritime law, what is 'general average'?
- The average freight rate in the market
- A loss intentionally incurred to save the ship and cargo, shared proportionally by all interests (Correct answer)
- The average cargo damage rate per voyage
- A standard insurance deductible
Correct answer: A loss intentionally incurred to save the ship and cargo, shared proportionally by all interests
General average requires all parties (ship and cargo interests) to proportionally share losses resulting from a voluntary sacrifice made to save the common venture.
Question 6: What is a 'non-waiver' agreement in cargo insurance claims?
- An agreement extending the claim filing deadline
- An agreement allowing investigation without waiving coverage defenses (Correct answer)
- A policy endorsement adding cargo coverage
- A subrogation waiver
Correct answer: An agreement allowing investigation without waiving coverage defenses
A non-waiver agreement allows an insurer to investigate a claim without waiving the right to assert coverage defenses discovered during investigation.
Shipping Lawyer Cargo Claims and Liability 1
Under the Carmack Amendment, which type of carrier is primarily regulated for cargo liability?