Carriage of Goods by Sea Act (COGSA)

COGSA
Applicable to all contracts for the carriage of goods by sea to and from the
Philippine ports in foreign trade
Carrier the owner or the charterer who enters into a contract of carriage with a
shipper
Subject to responsibilities and liabilities in loading, handling stowage,
carriage, custody, care and discharge of goods
The business is imbued with special public duty
Contract of Carriage
Covered by Bill of lading
Bill of Lading
Regulates the relations between a carrier and the holder
A prima facie evidence of the receipt by the carrier of the goods
Responsibilities and Liabilities of the Carrier
To exercise due diligence in making the ship seaworthy, properly man, equip
and supply the ship, make holds, refrigerating and cooling chamber, and all
other parts of the ship in which goods are carried, fit and safe for their
reception, carriage, and preservation
To properly and carefully load, handle, stow, carry, keep, care for, and
discharge the goods carried
After receiving the goods into his charge, the carrier or its agent shall issue to
the shipper a bill of lading
A Vessel to be Seaworthy must be adequately equipped for voyage and
manned with a sufficient number of competent officers and crew
Contents of a Bill of Lading
Loading marks necessary for identification of the goods
e.g.: fragile, flammable, hazardous, toxic
Number of packages or pieces or quantity or weight
Apparent order and condition of the goods
Note:
The shipper is deemed to have guaranteed to the carrier the accuracy of the
marks, number, quantity and weight
o The shipper shall indemnify the carrier against all loss, damages and
expenses arising from inaccuracies
Shipped Bill of Lading
The bill of lading to be issued by the carrier or its agent to the shipper after
the goods are loaded

Note:
Any agreement in a contract of carriage relieving the carrier of the ship from
liability for loss or damage in connection with the goods, arising from
negligence, fault, or failure in the duties and obligations, or lessening liability
is null and void
o Benefit of insurance in favor of the carrier is deemed to be a clause
relieving the carrier from liability
Notice of Loss or Damage
Must be given to the carrier or his agent at the port of discharge or at the
time of the removal of the goods into the custody of the person entitled to
delivery
If the loss or damage is not apparent, the notice must be given within 3 days
after the delivery
May be endorsed upon receipt for the goods given by the person taking
delivery
Need not be given if the state of the goods at the time of their receipt has
been the subject of joint survey or inspection
Removal of the Goods into the Custody of the Person Entitled to Delivery
a prima facie evidence of the delivery by the carrier of the goods
Discharge from Liability of the Carrier
The carrier and the ship is discharge from all liability in respect of loss or
damage unless suit is brought within 1 year after the delivery of the goods or
the date when the goods should have been delivered
Prescription Period to file Suit 1 year
XPN: It is provided in the stipulation (agreement)
Note:
If the shipper did not give a notice of loss or damage, the shipper still has the
right to bring suit within 1 year after the delivery of the goods or the date
when the goods should have been delivered
Written extrajudicial demand by the creditor does not toll the running of the
prescriptive period
The 1 year prescriptive period includes the insurer of the goods
The 1 year prescriptive period will not apply to damages caused to the
shippers goods
Rights and Immunities of a Carrier
Not liable for loss or damages arising from unseaworthiness
Whenever loss or damage has resulted from unworthiness the burden of
proving the exercise of due diligence shall be on the carrier or other person
claiming exemption
Immunities of a Carrier when loss or damage arising from:

Act or neglect of the master, mariner, pilot, or servants of the carrier in the
navigation or in the management of the ship
Fire
Perils, dangers and accidents of the sea
Acts of God
Act of War
Act of Public Enemy
Arrest or restraint of princes, rulers, or people, or seizure under legal process
Quarantine restrictions
Act or omission of the shipper or owner of the goods or his agent
Strikes or lockouts or stoppage or restraint of labor
Riots and civil commotions
Saving or attempting to save life or property at sea
Wastage in bulk or weight or any other loss or damage arising from inherent
defect, quality, or vice of the goods
Insufficiency of packing
Insufficiency or inadequacy of marks
Latent defects not discoverable by due diligence

Limited Liabilty of the Carrier in case of Loss or Damages in Transportation

of Goods $500 per package
Another maximum amount may be fixed between the carrier and the shipper
o Not less than $500
Carrier is not liable for the amount more than the amount of damage actually
sustained
Carrier is not liable if the nature or value of goods is fraudulently misstated
by the shipper in the Bill of Lading