Hague-Visby Rules: liability limits and deadlines

The Hague-Visby Rules are the most widely used regime for ocean bills of lading. They fix the carrier's minimum duties (seaworthiness, care of cargo), a list of defences (including the nautical fault defence), and a package-or-weight cap on liability. The 'container clause' counts the packages enumerated in the bill of lading as packages when goods are consolidated in a container.

Full name: International Convention for the Unification of Certain Rules of Law relating to Bills of Lading (Brussels, 1924) as amended by the Visby Protocol (1968) and the SDR Protocol (1979)
Status: In force (Visby Protocol since 23 June 1977; SDR Protocol since 14 February 1984)
Mode: Ocean

Carrier's liability limit

666.67 SDR per package or unit, or 2 SDR per kilogram of gross weight of the goods lost or damaged, whichever is higher (Art. IV r.5(a), as amended by the 1979 SDR Protocol).

Calculate a Hague-Visby Rules limit

Notice, claim and time-bar deadlines

Notice of loss/damage

In writing before or at the time of removal of the goods; within 3 days of delivery if the loss or damage is not apparent (Art. III r.6).

Time bar (suit)

1 year from delivery or the date the goods should have been delivered; may be extended by agreement after the cause of action arises (Art. III r.6).

Indemnity (recourse) actions

At least 3 months from settlement or service of process, as allowed by the law of the court seized, even after the 1-year period (Art. III r.6 bis).

Who it applies to

Contracts of carriage covered by a bill of lading where the bill is issued in a Contracting State, the carriage is from a port in a Contracting State, or the bill incorporates the Rules (Art. X). Many states also apply the Rules through national legislation (for example Canada's Marine Liability Act, Schedule 3, and the UK Carriage of Goods by Sea Act 1971).

Of the 20 countries we cover, these are parties or apply it: Germany, United Kingdom, France, Netherlands, Japan, Mexico, Singapore, Australia, Italy, Spain.

Important notes

• Limits do not apply if the nature and value of the goods were declared by the shipper before shipment and inserted in the bill of lading (Art. IV r.5(a)).
• The carrier loses the right to limit if the damage resulted from its act or omission done with intent to cause damage, or recklessly and with knowledge that damage would probably result (Art. IV r.5(e)).
• States that ratified the Visby Protocol (1968) but not the SDR Protocol (1979) may express the treaty limit in Poincaré gold francs (10,000 francs per package or 30 francs per kg). National implementing law may use SDR anyway.

FAQ

Primary sources

• UK Carriage of Goods by Sea Act 1971, Schedule (Hague-Visby Rules text)
• Canada, Marine Liability Act, s.43 and Schedule 3
• Belgian depositary: States bound by the 1979 SDR Protocol
• Belgian depositary: States bound by the 1968 Visby Protocol

General information only, not legal or insurance advice. Limits depend on the contract, the documents issued, declared values, national law and the facts of each case. Check the primary sources and consult a qualified professional before relying on any figure.