ABSTRACT

A clause paramount may be inserted in both a charterparty and in any bill of lading issued under that charterparty. The original purpose of a clause paramount was to make sure that the Hague Rules, which were intended to apply to certain bills of lading, did indeed apply to bills of lading. From a clause intended to apply the Hague Rules to the bill of lading, the clause paramount has had to evolve to take account of the further Rules adopted around the world. The shipping trade commonly uses terms – 'clause paramount', 'general clause paramount', 'Canadian Clause paramount', 'US clause paramount'. Some standard form charterparties have abandoned the technique of incorporating the clause paramount into the charterparty and tailor their clauses to be more specific, so that such rules as apply to the bill of lading also apply to cargo claims under the charterparty.