ABSTRACT

Common law implies a number of obligations on the part of both the shipowner and the shipper. The parties can lessen the liability imposed by these implied undertakings, or exclude them altogether, with the aid of contractual stipulations. The shipowner is under an implied obligation at common law to: provide a seaworthy ship, proceed with due dispatch, carry the cargo to the agreed destination without deviation and use skill in navigating the vessel and in carrying the goods. Bills of lading normally contain an exclusion clause relieving the shipowner of liability in the event of damage caused by riots or other commotion. Strike clauses in bills of lading have become more specific and range from clauses that place the entire risk on the shipper to those that attempt to spread the risks evenly between the carrier and the shipper. Freight is the consideration, or agreed amount, payable to the carrier for carrying cargo to and delivering it at its destination.