Subject: Transportation (Finals Tips)
Professor: Atty. Ampil
By: Butch Ramiro and Pierre Martin Reyes C2013
` In a contract of affreightment (time/voyage
Note: Study everything, but pay particular attention to these especially
enumerations and definitions. Good luck!
1. What are the exceptions to the rule of
abandonment/limited liability rule?
a) Expenses for repairs of the vessel made
PRIOR to the loss of the Vessel
b) Workmens Compensation claims
c) Where the vessel is insured
d) Where the injury or death to a passenger
is due either to the fault of the ship owner,
or to the concurring negligence of the ship
owner and the captain
2. What are the 3 functions of the captain?
a) General agent of the shipowner
b) Technical director of the vessel
c) Representative of the government under
whose flag he navigates
3. Who is the sailing mate?
He is the second in command and takes over in
case of the disability of the captain. He is required
to provide himself with the charts and to keep a
Binnacle Book. He is also responsible for
damages to the vessel or cargo caused by his
negligence, in addition to criminal liability.
4. Who is the second mate?
As per Art. 633, He is the third in command and
takes over in case of the disability of the captain
and the sailing mate. In such case, he assumes
their powers and responsibilities. 2 examples are
a) to assign work to each sailor b) to ensure that
the cargo is well-arranged
5. What is a ship agent?
The ship agent is the person tasked to represent,
manage, operate and provision the ship owners
vessel at a port that it may be found. It may include
a shipowner. It is not an ordinary agent under the
Civil Code as it may be held solidarily liable with
the shipowner for liability to third persons.
6. What is a supercargo?
As provided for by Art. 649, he is an agent of the
owner of the goods shipped as cargo on a vessel.
He will sell such cargo to the best advantage in a
foreign market and buys goods to be placed as
cargo in the returning voyage and comes home
with it.
7. Differentiate a contract of affreightment
and a bareboat charter or demise
charter),
thethe whole or part of the vessel is leased
to the charterer. The shipowner however, retains
possession, control and management of the vessel
and remains to be liable for wages and damage or
injury to cargo or passengers.
In a bareboat charter or demise, the whole
vessel is let to the charterer. The charterer
exercises total control, possession and
management over the vessel. In this particular
case, the charterer is considered to be the owner
PRO HACVICE (for that particular voyage)
8. Differentiate demurrage and primage
Demurrage is the compensation paid to the
shipowner when the vessel has been detained
beyond the time agreed upon for loading and
unloading.
Primage is the bonus given/paid to the captain
after a successful voyage and for taking care of
the goods during the voyage.
9. What are lay-days?
Time allowed for the loading or unloading of cargo
from the ship
10. Differentiate loan on bottomry and loan on
respondentia
Loan on bottomry: Loan made by the shipowner,
the ship agent, on in their absence, the captain,
with the vessel as security. The loan will only be
paid upon the safe arrival of the vessel.
Loan on respondentia: Loan in which the security
is the cargo with the condition that the loan will
only be paid upon safe arrival of the cargo.
11. 4 kinds of maritime accidents
a) Simple/General Average
b) Shipwreck
It is when a ship has received injuries
rendering her incapable of navigation. It
also includes loss of a vessel at sea, either
by being swallowed up by the waves, or by
hitting another vessel, or running aground.
c) Collision/Allision:
Collision means the impact of two vessels
both which are moving. However, in its
broad sense, it also includes allusion,
which refers to the striking of a moving
vessel against one that is stationary.
d) Arrival under Stress
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Subject: Transportation (Finals Tips)
Professor: Atty. Ampil
By: Butch Ramiro and Pierre Martin Reyes C2013

mandate, or authority of another power,

Under Art 819, it is the arrival of a vessel
at the nearest and most convenient port if
during the voyage, the vessel cannot
continue to the port destination because
of:
1) lack of provisions
2) fear of seizure, privateers or pirates
3) any sea accident disabling the
vessel to navigate
even though the power is not a party to the
Convention.
16. What is the doctrine of inscrutable fault?
If it cannot be determined which of the two vessels
caused the collision, each ship will suffer its own
damages, and both shall be solidarily liable for the
losses and damages occasioned by their cargoes
(Art. 827 and 828)

12. What is a simple average?

It is an expense incurred or damage suffered

which have not inured to the common benefit and
profit of all persons interested in the vessel and its
cargo.

13. What are the requisites for general

average?

a) There must be a common danger.

b) That part of the vessel/cargo is sacrificed
deliberately for the common safety
c) The ship and cargo are saved after the
expenses and damage caused.
d) that the expenses or damages should
have been incurred or inflicted after taking
proper legal steps and authority

14. When is protest required within 24 hours?

(CASH)

a) In case of maritime collisions

b) When the vessel arrives under stress
c) Where the vessel is shipwrecked
d) Where the vessel has gone through a
hurricane or when the captain believes
that the cargo has suffered
damages/averages

15. What are the two types of international

transportation by air?

a) that where the place of departure and the

place of destination are situated within the
territories of two High Contracting Parties
regardless of whether or not there be a
break in the transportation or a
transshipment; and
b) that where the place of departure and the
place of destination are within the territory
of a single High Contracting Party if there
is an agreed stopping place within a
territory subject to the sovereignty,
2
Subject: Transportation (Finals Tips)
Professor: Atty. Ampil
By: Butch Ramiro and Pierre Martin Reyes C2013
17. What is salvage? Requisites for Salvage?
a) Marine Peril
b) Service voluntarily rendered without an
existing duty or special contract
c) Success, in whole or in part, or the service
rendered contributed to the success
Salvage is made when persons under no
responsibility to do so save the ship and its cargo
from a maritime peril. Such persons are entitled to
the proceeds of the salvage (e.g. a reward)
18. What is towage?
Towage is the towing of a vessel by another using
a line or rope to help move a stationary vessel or
one whose movement is limited. However, in this
case, there is no marine peril present. It is a quasi-
contract wherein indemnity is paid to the
shipowner of the towing vessel.
Alhambra Cigar vs. La Granja: (When Salvage,
when towage)
- Towing a vessel may or may not be a salvage
service.
- If the vessel towed is aided in escaping from a
present or prospective danger, the service will
be regarded as one of salvage and the towage
as merely incidental.
- If the vessel assisted is not facing any actual
or probable danger and the towing is simply for
the purpose of expediting the voyage, such
service is a towage.
19. COGSA v. WARSAW (5 differences)
COGSA
Applies to goods only Applies to goods and passengers
Applies to carriage of goods by Applies to carriage by
sea/water
Applies to domestic carriage (when Applies only to
the destination is the PH) carriage
Domestic Law International Law (international
convention)
Prescriptive period of 1 year to file Prescriptive period of 2 years to file
suit suit
20. Under COGSA, what are the 4 places where
an action for damages may be brought?
a) domicile of the carrier;
b) the carriers principal place of business;
c) the place where the carrier has a place of
business through which the contract was
made;
d) the place of destination
21. Differentiate CPC v. CPCN
a) CPC: A Certificate of Public Convenience
is issued when it is found that the
operation of the proposed public service
will promote public interest for which a
municipal or legislative franchise is not
necessary
b) CPCN: A Certificate of Public Convenience
and Necessity is issued upon approval of
any franchise or privilege granted by any
political subdivision when in the judgment
of the regulatory body, such franchise will
serve the public interest
Requisites for the grant of a CPC or CPCN
1. Applicant must be a citizen of the
Philippines or a corporation incorporated
under the laws of the Philippines
1. The applicant must be financially
capable
1. The applicant must prove that the
operation of the proposed public service will
promote the public interest.
WARSAW
3
Subject: Transportation (Finals Tips)
Professor: Atty. Ampil
By: Butch Ramiro and Pierre Martin Reyes C2013

22. What is the prior operator rule?
- The Prior Operator Rule provides that the first
licensee will be protected in his investment and will not
be subjected to a ruinous competition. No certificate of
public convenience will be issued to a second operator
to cover the same field and in competition with the first
operator who is rendering sufficient, adequate, and
satisfactory service.
- The prior operator is given the opportunity to improve
service before a certificate of public convenience is
granted to another. If the operator fails or neglects to
make the improvement, i.e. meet the increase in
demand, when given that opportunity, new operators
will be given the chance to give the service needed by
the public.
23. True or false
A captain is not allowed to interfere with the
navigation of a compulsory pilot.
Ans: False. The master is not wholly absolved from his
duties while a pilot is on board his vessel and may
advise or offer suggestions to him. He may
countermand the orders made by the pilot in case of
imminent danger to the vessel (Far Eastern Shipping
vs. CA)
Ans: False. The fact of transhipment does not operate
to remove the transaction from the operation of the
COGSA. The period still runs.
Delivery means delivery to the consignee
Ans: False. Delivery refers to actual delivery to the
arrastre operator. (Union Carbide v. Manila Railroad)
Loss or damage applies to misdelivery
Ans: False. The definition of the term loss or damage
in the COGSA contemplates a situation where no
delivery had been made and not when there is a case
of misdelivery. (Ang v. American Steamship Agencies).
The insurer is not bound by the one year
prescriptive period
Ans: False. The coverage of the COGSA in relation to
the one year prescriptive period includes the insurer of
the goods. Otherwise, what the act intends to prohibit
after the lapse of the one year period can be done
indirectly by the shipper by simply fling a claim against
the insurer even after the lapse of the period (Filipino
Merchants Insurance v. Alejandro).
The shipper may not file a claim against the
insurer after the prescriptive period

It is the safety of the voyage which constitutes the
true foundation of the general average
Ans: False. It is the safety of the property, and not the
voyage which constitutes the true foundation of the
general average.
Ans: False. The liability of the insurer is not
extinguished as the insurer's liability is not based on
the contract of carriage but on the contract of
insurance. Hence, the shipper may claim from the said
contract of insurance even after the lapse of the period
(Mayer Steel Pipe Corp v. CA)

Package refers to the container of the ship

Ans: False. Package refers to cartons, not to

containers (Eastern Shipping Lines v. CA)

The limitation of liability of COGSA is not deemed

written in the bill of lading

Ans: False. Provisions of COGSA are part of the bill of

lading, suppletorily to Civil Code provisions. Since the
Civil Code does not provide for any limitation of liability
and the COGSA does, the latter would apply (Eastern
Shipping Line vs, CA).
After the dismissal of the claim at the end of the 1
year prescriptive period, a party may not file an
action in court anymore

Ans: False. The party can commence a new action

within one year from the date of dismissal if such
dismissal is after the expiration of the first term.

Transhipment jn COGSA tolls the prescriptive

period

4
Subject: Transportation (Finals Tips)
Professor: Atty. Ampil
By: Butch Ramiro and Pierre Martin Reyes C2013
24. PROBLEM A: Principles; Distinction of
Contract of Affreightment and Bareboat; Fire
as fortuitous event
A-1) If X, owner of the goods, sues the
charterer (A) and the shipowner (B), for
damage to the goods, who should be held
liable? (assume the type of charter was NOT
mentioned)
Liability will depend on whether the charter
party is a contract of affreightment or bareboat
If it is contract of affreightment, the shipowner
will be held liable as per jurisprudence
If it is a bareboat, the charterer will be liable
because the charterer is considered the owner
pro hac vice (for that particular voyage)
Since there was no mention of the type of
charter party, it is practical to implead both.
A-2) From the problem above, assume that the
contract was one of affreightment. The goods
were apparently destroyed by fire. X wants to
hold B liable and argues that fire is not an
exempting circumstance. X raised the defense
of fortuitous event. Who will win?
Under the Civil Code
Under the CIVIL CODE, fire may not be
considered a natural disaster or calamity. This
must be so as it arises almost invariably from
some act of man or by human means. It does
not fall within the category of an act of God
unless caused by lightning or by other natural
disaster or calamity. If the civil code is applied,
it follows therefore that the carrier is presumed
to be negligent in causing damage to the
goods. It must prove that it exercised ED in
preventing the damage. In this case, the
carrier sufficiently showed that it did exercise
the required diligence.
Under COGSA
Sec 4(2) of COGSA provides that FIRE is an
exempting circumstance. However, the
provision provides carrier must not be at fault.
In the case of Eastern Shipping v. IAC, fire
was not held to be an exempting circumstance
because of the fact that the smoke was only
noticed 24 hours after it started. This showed
negligence on the part of the crewmembers of
the ship.
In this case, the fire was discovered 1 minute
after it started and was extinguished 30
seconds after discovery. This action by the
carrier in such a short span of time shows
extraordinary diligence on its part. It therefore
follows that the carrier may validly raise the
defense of FIRE under COGSA.
A-3) From the same problem, X argues that an
on-board bill of lading is irrelevant
The onboard bill of lading is relevant to the
issue in the case. This is because before a
shipper can claim damages against the carrier,
he must establish the existence of the goods
within the ship.
It must be emphasized that the B/L is an
acknowledgement by the carrier of the receipt
of goods. It is the proof that the goods were
actually within the holds of the vessel.
Therefore the contention is INCORRECT.
25. PROBLEM B: X owns a vessel and Y owns
a vessel. Both of their vessels carry goods
and passengers. X collided with Y which
caused damage to the goods/passengers
carried by both X and Y.
B-1) If X is solely at fault, who will pay for the
damaged goods/injury/death?
When the vessel of X is solely at fault, it is liable
for the damage to the vessel of Y. X shall also be
liable to the shippers or consignees of the
damaged goods contained in both vessels. X
shall also be liable for the death or injury of the
passengers of its own vessel and the vessel of Y
(in other words, X is liable for everything) same
holds true if Y is the one solely at fault
B-2) If X and Y are both at fault, who is liable?
X and Y will not be liable to each other because
Art 827 provides that if the collision is imputable to
both vessels, each one shall suffer its own
damages. However, X and Y will be solidarily liable
for the losses, damages, death or injury done to
their cargo and passengers.
B-3) If X and Y are at fault but not equally at
fault, who is liable?
Both vessels shall be liable as if they are equally at
fault. Therefore they will be solidarily liable to their
passengers, the shippers and consignees. The
doctrines of last clear chance and contributory
negligence are inapplicable in Maritime
Commerce.
B-4) If it cannot be determined who was at
fault, who will be liable?
When it cannot be determined who is at fault, it will
be considered as if both are at fault (Art 828 in
relation to Art 827) Therefore, each one will suffer
its own damages, and both shall be solidarily liable
for damage, death, injury and losses to
shippers/consignees/passengers.
B-5) What if both are not at fault?
5
Subject: Transportation (Finals Tips)
Professor: Atty. Ampil
By: Butch Ramiro and Pierre Martin Reyes C2013

According to Art 830, if both are not at fault, then

there will be no liability. It will be treated as a
fortuitous event. All parties involved must bear
their own damages

B-6) What if the vessel of Z forced X to collide

with Y?

According to Art 831, the owner of Z will indemnify

the losses and damages caused, the captain
thereof being civilly liable to X.

26. Does a written extra-judicial claim toll the

period to file a claim against the carrier?

COGSA provides that actions or claims for

damaged goods must be filed within 1 year
from delivery or when it ought to have been
delivered
No. In Dole v. Maritime Company, the
Supreme Court held that a written extrajudicial
demand shall not toll the prescriptive period
within which to file a claim against the carrier.

What if the goods were misdelivered or

delivered late?

The situation would be different. The

COGSA applies only to damages which
arose from the loss of goods. Loss means
the physical loss of the goods (perished)
or if the goods go out of commerce. It
does not provide for instances when the
goods are delivered to the wrong person
or when the goods are delivered late.

In such cases, the 1 year period will not

apply. Instead, the provisions of the Civil
Code will apply (quasi-delict: 4 years,
contract: 10 years) These Civil Code
periods may be tolled by a written
extrajudicial demand.