1. Carrier Liability
The carrier (shipping line) is responsible for the following:
| Carrier's Scope of Liability | Description |
| Seaworthiness of Vessel | The vessel is in a seaworthy condition before departure |
| Proper Stowage | Reasonable stacking and securing of containers |
| Care of Cargo | Exercising due diligence in caring for the cargo during transit |
| Scope of Exemptions | Natural disasters, war, strikes, fault of the cargo owner, etc. |
Compensation Limits (Hague Rules):
- 666.67 SDR per package or unit (approx. $900)
- Or 2 SDR per kilogram (approx. $2.70), whichever is the higher amount
2. Shipper Liability
| Shipper's Scope of Liability | Description |
| Accurate Declaration | Cargo description, weight, and volume must be correct |
| Proper Packaging | Packaging must be suitable for sea transport (carrier is not liable for damage resulting from improper packaging) |
| Dangerous Goods Declaration | Dangerous goods must be declared truthfully |
| Complete Documentation | Customs documents, certificate of origin, permits, etc. |
📖 Further Reading: International Shipping Operations Manual, Part 24: Common Shipping Disputes and Prevention—Dispute cases and response strategies (complements the legal definitions in this article)Data Note: Principles of liability division are cited from the Hague Rules, Hamburg Rules, and general industry clauses. Data current as of July 2026.
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