Frequently asked questions
Maritime law, answered plainly
The questions Masters and officers ask most about cargo obligations, the Hague-Visby Rules and P&I cover — answered in plain language and linked to the full lessons in the library.
The Master's obligation
What is the Master's core obligation toward the cargo?
The Master is obliged to deliver the cargo in the same good order and condition in which it was received. The ship is judged against the condition recorded at loading — which is why the Bill of Lading, signed at the load port, is the yardstick every claim is measured against.
Cargo Claims lessonWhy does clausing the Bill of Lading matter so much?
Any defect found during loading — torn bags, rusty steel, wet cartons — must be noted on the Bill of Lading. If it is not, the B/L is 'clean' and stands as conclusive evidence that the cargo was shipped in apparent good order. The Master then carries responsibility for defects that were actually present before shipment, with little room to prove otherwise.
Bills of Lading lessonWhat can the Master do when pressured to sign a clean B/L for doubtful cargo?
Clause the Bill of Lading with the actual condition observed, and back it with a Letter of Protest issued promptly and acknowledged by the shipper or charterer. Photographs, surveyor's reports and log entries made at the time are the evidence that defends the ship months later when the claim arrives.
Cargo Claims lessonCan anyone overrule the Master on a safety decision?
No. SOLAS Chapter V, Regulation 34-1 states that the owner, charterer, the company operating the ship, or any other person shall not prevent or restrict the Master from taking any decision which, in the Master's professional judgement, is necessary for safety of life at sea and protection of the marine environment.
Master's Discretion — SOLAS V/34-1Hague-Visby Rules and exceptions
What do the Hague-Visby Rules require of the carrier?
The carrier must exercise due diligence to make the ship seaworthy before and at the beginning of the voyage, and must properly and carefully load, handle, stow, carry, keep, care for and discharge the goods. These obligations cannot be contracted out of in the Bill of Lading.
Cargo Claims lessonWhich exceptions can the carrier rely on when cargo is damaged?
The Rules list defences including: act, neglect or default of the Master or crew in navigation or management of the ship; fire (unless caused by the carrier's fault); perils, dangers and accidents of the sea; act of God; act of war; acts of public enemies; arrest or restraint of princes; quarantine restrictions; strikes or lockouts; riots; saving or attempting to save life or property at sea; inherent defect or vice of the goods; insufficient packing or marking; latent defects not discoverable by due diligence; and any other cause arising without the carrier's actual fault.
Cargo Claims lessonWhat is the time limit for a cargo claim under Hague-Visby?
Suit must be brought within one year of delivery of the goods, or of the date they should have been delivered. Miss that window and the claim is time-barred, however strong the evidence.
Cargo Claims lessonIs the carrier's liability unlimited?
No. The Rules cap liability per package or unit (the 'package limitation') unless the shipper declared the cargo's value before shipment and it is stated on the Bill of Lading. The limitation can be broken only in narrow circumstances — broadly, where the damage resulted from an act done with intent to cause damage, or recklessly and with knowledge that damage would probably result.
Cargo Claims lessonP&I cover and claims
What does P&I insurance actually cover?
Protection & Indemnity cover is the ship's third-party liability insurance: cargo damage and shortage claims, personal injury and loss of life, pollution liability, collision liability not covered by the hull policy, wreck removal, fines and certain legal costs. It picks up the liabilities that hull & machinery and cargo insurance do not touch.
Marine Insurance lessonHow is P&I different from hull insurance?
Hull & machinery insurance protects the shipowner's own asset — the ship itself — against physical damage. P&I protects the owner against claims made by others. A collision typically engages both: the hull policy pays for the ship's own damage, the P&I club handles the other vessel's claim and any pollution or injury liability.
Marine Insurance lessonWhat should the Master do when a P&I incident happens on board?
Notify the company and the P&I club's correspondent at the earliest opportunity, preserve evidence (log books, photographs, statements, documents), avoid admitting liability, and cooperate with the surveyor the club appoints. Early, accurate reporting is what lets the club defend the claim effectively.
Marine Insurance lessonWhat is General Average and who pays for it?
When cargo or ship is deliberately sacrificed, or extraordinary expenditure is incurred, to save the whole venture from a common peril — jettisoning cargo in a storm, or a tug refloating a grounded ship — the loss is shared proportionally between ship and all cargo interests. It is one of the oldest principles in maritime law, and the reason cargo interests may be asked for security before their goods are released.
Marine Insurance lessonLooking for the definitions behind these answers? The Certification Glossary defines Hague-Visby Rules, Bills of Lading, Letters of Protest and P&I in a line each.