Meaning
A statutory framework establishes the liabilities and duties of ocean carriers regarding the transport of cargo. In maritime shipping, cogsa governs the relationship between cargo owners and vessel operators during international transits. The legislation applies from the time the goods are loaded until they are discharged from the vessel.
Legal Protection
Shipowners receive specific statutory protections under this law. The application of cogsa ensures that carriers cannot contract out of their obligations to provide a seaworthy ship and properly handle the cargo. Any clause in a bill of lading that attempts to relieve the carrier from liability for negligence in these duties is void.
Liability Limitation
Financial exposure for cargo damage is capped at a standard statutory amount. Under the provisions of cogsa, carriers are liable only up to five hundred dollars per package unless the shipper declares a higher value beforehand. For example, if a shipment of ten machinery parts is damaged, the carrier liability is limited to five thousand dollars.
This limit encourages shippers to purchase independent marine insurance to cover high-value cargoes.
Carrier Exemption
Specific occurrences relieve the carrier from liability for cargo loss. If damage arises from perils of the sea, cogsa excuses the carrier from paying damages. This protection ceases if the carrier failed to exercise due diligence to make the vessel seaworthy.
