The issue of carrier liability under the Hague and Hague-Visby Rules remains a complex and debated topic in maritime law. Landmark cases, such as Kyokuyo Co. Ltd. v. AP Møller-Maersk A/S, commonly referred to as the “Maersk Tangier,” and the more recent MMA Iard v. CMA CGM, decided by the French Supreme Court in March 2022, highlight the ongoing legal intricacies in this area. The fundamental principles guiding liability limitation for carriers are established in the Hague Rules, introduced in 1924, and modified by the Hague-Visby Rules in 1968.
Article IV, Rule 5 specifies that a carrier’s liability cannot exceed 100 pounds sterling per package or its equivalent in other currencies. The Hague-Visby Rules also introduced an alternative limitation based on weight, defined in Special Drawing Rights (SDR). Bulk cargoes, both solid and liquid, present unique challenges regarding liability limitations.
Originally, the Hague Rules did not consider bulk cargoes, leading to substantial litigation over whether these rules apply. In most jurisdictions, bulk cargoes are deemed not to qualify as packages or units for liability purposes. This position was upheld by the Court of Appeal in England in the Aqasia ruling, which concerned a fish oil cargo.
The Hague-Visby Rules offer more clarity by allowing a limitation based on weight—2 SDRs per kilogram for bulk cargoes. Containerised cargoes are another significant aspect of maritime transport, with the Hague-Visby Rules specifically addressing limitations applicable to these shipments. Article IV, Rule 5(c) states that the number of packages or units listed in the bill of lading for goods consolidated in a container will be considered for limitation purposes.
The “Maersk Tangier” case illustrated this concept when the Court of Appeal affirmed that individual tuna loins within a container counted as separate units. In contrast, the French Supreme Court’s decision in MMA Iard v. CMA CGM ruled that 56,000 corn cobs in a single container did not qualify as individual freight units. Instead, the court concluded that they constituted one batch, allowing the carrier to limit its liability to one amount of 100 pounds.
Variations in interpretation between jurisdictions highlight the practical and legal complexities, demanding that carriers closely consider the jurisdiction of cargo claims. In conclusion, the liability limitation principles under the Hague and Hague-Visby Rules are intricate and open to diverse interpretations. Both bulk cargoes and containerised goods present distinct challenges that will likely continue to drive litigation and legal discussions in the maritime transport sector.