OCEAN TRANSIT

Ocean transportation of cargo throughout the world is covered by various conventions or treaties. The Hague Rules, Hague Visby, and Hamburg Rules are examples. These conventions are enacted in the counties subscribing to the conventions. In the United States, the Hague Convention is enacted as 46 USC §30701, et seq. and popularly known as "COGSA," the Carriage of Goods by Sea Act.

Under Section 1, the "carrier" includes the owner or charterer of a vessel who enters into a contract of carriage with a shipper.

Under COGSA, suit must be commenced against a carrier within one year of the date cargo was delivered or the date cargo should have been delivered.

A carrier cannot shorten the one year, however, by written agreement the time to file suit may be extended to more than one year.

TRUCK TRANSIT

(Nine months to file notice of claim and two years from declination) Interstate transport of cargo by truck, rail or in some cases barge is subject to the Carmack Amendment, 49 U.S.C §14706, et seq. The common carrier can require, by the terms of a bill of lading or by tariff, that the cargo interest file a written notice of claim within nine months. Such notice of claim is a condition precedent to the carrier's liability. Suit can then be filed within two years of the date that the carrier declines liability. To satisfy the statute, the notification must be in writing, identify the shipment and state the amount of the claim.

AIR TRANSIT

(Notice of claim and two years to file suit)

International transport of cargo and baggage by air is controlled by conventions or treaties. Which convention or treaty controls is determined by which countries signed on to the convention and when. The Montreal Convention became effective in United States on November 4, 2003. This convention (and its predecessor the Warsaw Convention) requires written notice of claim in the case of loss or damage. Under Montreal for baggage damage, written notice must be provided within seven days and for loss or delay within 21 days. For cargo damage, written notice must be provided within 14 days; or for loss within 21 days.

Notice must be in writing, identify the shipment and state the amount of claim. Suit must be filed within two years of arrival or the date the shipment should have arrived.

Prior to the Montreal Convention, air carriage was mostly controlled by the Warsaw Convention, which sets forth similar time limits.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.