Indian Bill of Lading Act 1856 and Carriage od Goods by Sea Act 1925

Charter Parties

A charter party is a contract where a shipowner agrees to lease their vessel to a charterer for the carriage of goods or passengers. There are three main types:

• Voyage Charter: The shipowner agrees to carry a specific cargo from one port to another for a fixed price (freight). The shipowner is responsible for the operation and navigation of the vessel.

• Time Charter: The shipowner leases the vessel to the charterer for a specific period. The charterer determines the voyages and pays hire for the use of the vessel. However, the shipowner remains responsible for the crew and maintenance of the vessel.

• Bareboat Charter (Demise Charter): The shipowner leases the vessel to the charterer for a specific period, giving the charterer complete control over the vessel, including crewing, maintenance, and operation. The charterer essentially becomes the temporary owner of the vessel.

Indian Carriage of Goods by Sea Act, 1925

This Act incorporates the Hague Rules, an international convention that sets out the responsibilities and liabilities of carriers in the carriage of goods by sea. Key provisions include:

• Carrier’s Responsibilities: The carrier is responsible for providing a seaworthy vessel, properly handling and stowing cargo, and exercising due diligence in carrying out the voyage.

• Carrier’s Liabilities: The carrier is liable for loss or damage to goods unless they can prove one of the exceptions listed in the Act, such as perils of the sea, acts of God, or acts of war.

• Limitations of Liability: The Act sets limits on the carrier’s liability for loss or damage to goods.

Bills of Lading

A bill of lading is a crucial document in maritime trade, serving three main purposes:

• Receipt for Goods: Acknowledges receipt of the goods by the carrier.

• Document of Title: Represents ownership of the goods.

• Contract of Carriage: Sets out the terms and conditions of the transportation.

Indian Bills of Lading Act, 1856

This Act deals with the transfer of rights and liabilities under a bill of lading. Key provisions include:

• Transfer of Rights: A lawful holder of a bill of lading has the right to sue the carrier for any breach of contract or loss or damage to the goods.

• Transfer of Liabilities: The transfer of a bill of lading also transfers the liabilities of the original shipper to the new holder.

Claused Bills of Lading

A claused bill of lading (also known as a foul bill of lading) is a bill of lading that contains notations or clauses that indicate a defect or irregularity in the goods or their packaging. These clauses can affect the transferability and negotiability of the bill of lading. Examples of clauses include:

• “Stained packaging”

• “Short shipment”

• “Goods damaged”

Claused bills of lading can create complications for buyers, sellers, and banks involved in financing the transaction, as they indicate a potential problem with the goods.

These are some of the key commercial contracts and legal instruments used in the maritime sector. It’s important to consult with a legal professional for specific advice on these complex legal issues.