ABSTRACT

The liability of a carrier for loss or damage to goods or delay in their delivery, which has been caused by the unseaworthiness of the carrier’s ship, is an issue that arises both under charter parties and under the Hague or Hague-Visby Rules. The Rules were originally drafted for voluntary adoption by carriers in their bills of lading. Breach of an obligation, whether of seaworthiness at common law or of due diligence under the Rules, is overriding in its effect only after a defence has been established by the carrier. The carrier must show due diligence against a specific danger which, in effect, converts the carrier’s response into a particular defence under Article IV rule 2 such as perils of the sea. In The Muncaster Castle, the carrier was liable for the carelessness of a competent independent contractor brought in to check storm valves: the contractor’s employee did not replace inspection covers properly.