The Hague Rules represented the first attempt by the
international community to find a workable and uniform means of
dealing with the problem of shipowners regularly excluding
themselves from all liability for loss or damage of cargo. The
objective of the Hague Rules has to establish a minimum mandatory
liability of carriers which could be derogated from.
Under the Hague Rules the shipper bears the cost of lost/damaged
goods if they cannot prove that the vessel was unseaworthy,
improperly manned or unable to safely transport and preserve the
cargo, i.e. the carrier can avoid liability for risks resulting
from human errors provided they exercise due diligence and their
vessel is properly manned and seaworthy. These provisions have
frequently been the subject of discussion between shipowners and
cargo interests on whether they provide an appropriate balance in
liability.
The Hague Rules form the basis of national legislation in almost
all of the world's major trading nations, and probably cover more
than 90 per cent of world trade. The Hague Rules have been updated
by two protocols, but neither addressed the basic liability
provisions, which remain unchanged.
Hague Rules (34 KB)