Liability for Improper Stowage under Charterparties

Abstract

This article treats the liability for damages caused by improper stowage under the charter party, as well as the losses arising from the negligence of stevedores and the settlement of the damage to third parties under the Inter-Club Agreement of 1996. Voyage and time charter parties generally have specified provisions dealing with the cost, responsibility, or both, for loading, stowage, discharging and stevedores, for the clarification of the general provisions of the governing law. It has judicially been interpreted that the Hague Rules 1924 and Hague-Visby Rules 1968 under common law do not invalidate special provisions transferring the duty for cargo handling operations to the charterer, shipper or consignee on the grounds of the freedom of contract with their own requirement and certainty in international commercial transactions. According to the application of the freedoms of contract under the charter party, the parties may be allowed to transfer their responsibility to the other party. To solve the responsibility for cargo handling, the courts reviewed the agreement contents or rider clause set out in the charter party, and their decision was affected substantially by the agreements or special arrangements between the parties. It is required for the parties intending to modify their responsibility relationship under the statute to specify clearly their intention in the contract itself.