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1 Stephen Michael Ben AUSL
CHAPTER 3 OBLIGATIONS OF THE PASSENGER AND SHIPPER
The duty to comply with the terms and conditions of the contract does not rest only on one of the parties. Hence, in a contract of carriage, both the carrier and the passenger or shipper, as the case may be, have prestations to perform.
DUTY TO EXERCISE DUE DILIGENCE
The shipper or passenger is bound by his contractual obligation. The shipper or the carrier is bound to pay the consideration in the form of freight or fare. In addition, the shipper and the passenger are also bound to exercise due diligence in avoiding damage or injury.
NEGLIGENCE OF SHIPPER OR PASSENGER
The obligation to exercise due diligence is not limited to the carrier. The shipper is obliged to exercise due diligence in avoiding damage to the goods that are being shipped or injury to his person. This obligation to exercise due care is likewise basic in all forms of obligations. The carrier cannot impute the negligence of its own employee (like its driver) to the person or entity hired the carrier.
DUTY TO DISCLOSE
Due diligence includes the duty to disclose information relating to the cargo. Proper information will help the carrier exercise proper care and caution in relation not only to the subject cargo but also the cargo of other shippers and the passengers. Thus, the shipper must give proper information if there is a need to store the cargoes in a separate place. A common carrier is entitled to fair representation of the nature and value of the goods to be carried, with concomitant right to rely thereon, and a carrier has no obligation to inquire into the correctness or sufficiency of such information. The shipper must also make the proper markings on the cargoes.
DAMAGE CAUSED BY THE CARGOES
The duty to disclose the nature of the cargo is important in order that the carrier can exercise due diligence in preventing damage to the cargoes to be transported. In addition, the information that the carrier will receive will be used to prevent damage to the vessel, to the other
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of private right; not clothed with a public interest
 
cargoes and to the passengers or seafarers in the vessel. Thus, the shipper may be held liable for any damage that may have been caused solely by the dangerous nature of the cargoes.
PAYMENT OF FREIGHT
Common carriers are subject to heavy regulation with respect to rates that they are charging the public. The regulation of rates of public utilities is founded upon the police power of the State and statutes prescribing rules for the control and regulation of public utilities are a valid exercise thereof. When private property is used for a public purpose and is affected with public interest it ceases to be
 juris privati
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only and becomes subject to regulation.
 
In regulating rates charged by public utilities, the State protects the public against arbitrary and excessive rates while maintaining the efficiency and quality of service rendered.
 
Although the consideration that should be paid to the carrier is still subject to the agreement of the parties, what can be agreed upon should not be beyond the maximum amount fixed by the appropriate government agency like the LTFRB.
WHO WILL PAY THE FREIGHT
The shipper may pay the necessary freight before or at the time he delivers the goods to the carrier for shipment. However, the parties may also stipulate that the consignee will pay the freight at the point of destination. The consignee is bound by such stipulation the moment he accepts the goods.
 
Nevertheless, the consignor with whom the contract of carriage is made is primarily liable for the payment of the freight charges whether or not he is the owner of the goods. The obligation to pay is implied from the mere fact the consignor has placed the goods with the carrier for the purpose of transportation.
 
With respect to the passengers, the said passengers are contractually bound to pay the fare within such time as prescribed by regulations or by the carrier. There are carriers that require payment of consideration before the passenger can board the carrier while others collect the fare while the passenger is already on board.
 
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TIME TO PAY THE FREIGHT
The New Civil Code does not provide for the period within which payment of the freight charges should be made to the carrier for the carriage of goods. However, the implication of the Code of Commerce provisions on Overland Transportation is that in the absence of any agreement, the consignee who is supposed to pay must do so within 24 hours form the time of delivery. Code of Commerce provides:
ARTICLE 374. The consignees to whom the shipment was made may not defer the payment of the expenses and transportation charges of the goods they receive after the lapse of twenty-four hours following their delivery; and in case of delay in this payment, the carrier may demand the judicial sale of the goods transported in an amount necessary to cover the cost of transportation and the expenses incurred.
a.
 
Carriage of Passenger by Sea.
With respect to carriage of passengers by sea, the tickets are purchased in advance from ticket outlets or booking offices that are required to be set up in every ports of call of the vessel. Carriers are not supposed to allow passengers without tickets
 –
 
the carrier is bound to observe a “No Ticket, No
Boar
ding Policy.”
 
CARRIER’S LIEN
 
If the consignor or the consignee failed to pay the consideration for the transportation of the goods, the carrier may exercise his lien in accordance with Article 375 of the Code of Commerce Article 375. The goods transported shall be especially bound to answer for the cost of transportation and for the expenses and fees incurred for them during their conveyance and until the moment of their delivery. This special right shall prescribe eight days after the delivery has been made, and once prescribed, the carrier shall have no other action than that corresponding to him as an ordinary creditor.
TIMELY LOADING AND UNLOADING
The shipper must make sure that the goods are delivered to the carrier on the date, time, and place agreed upon. Otherwise, the shipper may either still be required to pay the agreed fees and charges and/or to pay appropriate damages and/or be rejected depending on the circumstances. In addition, the shipper cannot insist on tendering goods that are in excess of the number, weight, and quantity stipulated in the contract. The consignee must likewise timely obtain delivery from the carrier. The carrier must give notice of the arrival of the goods to the consignee.
DEMURRAGE
The parties may stipulate the period within which to load and unload the cargoes. This period is known as lay days.
Demurrage,
in its strict sense, is the compensation provided for the in the contract of affreightment for the detention of the vessel beyond the time agreed on for loading and unloading. Essentially, demurrage is the claim for damages for failure to accept delivery. In a broad sense, every improper detention of a vessel may be considered a demurrage. Liability for demurrage, using the word in its strictly sense, exists only when expressly stipulated in the contract.
PERMITS
The passenger or shipper may also be required to secure the necessary permits for the transportation of certain goods.
SHIPPER’S LOAD AND COUNT
 
It may be stipulated in the Bill of Lading that the shipper has the sole responsibility for the quantity, description and condition of the cargoes shipped in container vans. This is
known as the “
Shipper’s Load and Count
 arrangement. Under this agreement, the contents are not required to be checked or inventoried by the carrier at the port of loading or before said carrier enters the port of unloading in the Philippines since it is the shipper who has the sole responsibility for the quantity description and condition of the cargoes shipped in container vans.
DUTIES OF PASSENGER
The passenger must pay the proper fare for the transportation of the said passenger. The amount and time of payment would depend on the type of carrier, the practice and regulation in that particular carrier. Thus, payment may be in advance, in the course or transportation or before disembarking depending on the circumstances.
TRAVEL DOCUMENTS
It is the obligation of the passenger, not the carrier, to secure the appropriate travel documents. Hence, it is not the obligation of the carrier ti secure the necessary visa for a passenger.
 
It is incumbent upon the passenger to take ordinary care of his concerns. This requires the passenger to read the travel documents in order
 
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to assure herself of the important details regarding the trip. For instance, there would be negligence if the passenger did not even check the date of departure.
 
The airline may be held liable if the loss of documents was due to the negligence of its employee.
AIR TRANSPORTATION OF PASSENGERS
Specifically with respect to passengers on commercial airlines, the Civil Aviation Regulations provide for the following conducts: 1.
 
No person on board may interfere with a crew member in the performance of his or her duty. 2.
 
Each passenger shall fasten his or her seat belt and keep it fastened while the seat belt sign is lighted. 3.
 
No person on board an aircraft shall recklessly or negligently act or omit to act in such a manner as to endanger the aircraft or person and property therein. 4.
 
No person may secrete himself or herself nor secrete cargo on board an aircraft. 5.
 
No person may smoke while the no smoking sign is lighted. 6.
 
No person may smoke in any airplane lavatory. 7.
 
No person may tamper with, disable or destroy any smoke detector installed in any airplane lavatory.

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