29-03-2018

Court of Appeal rules that package limitation under Hague Rules Art IV rule 5 does not apply to bulk cargoes

In Sea Tank Shipping AS v Vinnlustodin HF, Vatryggingafelag Islands FH [2018] EWCA Civ 276 the English Court of Appeal has ruled that on a proper construction of the Hague Rules 1924 Art.IV Rule.5, which provides that a carrier's liability for loss of or damage to or in connection with goods will not exceed £100 "per package or unit", the word "unit" means a physical item of cargo or shipping unit, and not a unit of measurement or customary freight unit.  As a result the limitation on liability under Art.IV Rule 5 does not apply to bulk cargoes.

Source: Mr. David Morriss / Holman Fenwick Willan

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