THE CARRIAGE OF

GOODS BY SEA ACT

HISTORY

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HISTORY

• The Carraige of Goods by Sea Act (COGSA) was originally passed by the
Congress of the United States on April 16, 1936 as Public Act No. 521.

• COGSA governs the rights and responsibilities between shippers and the
shipowners (i.e., carrier) as regards international carriage of goods by the sea
where Philippines is the destination.

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HISTORY
• The United States Congress gave the Philippine Commonwealth the option
to decide whether or not, to adopt the Act.

• The said law was later adopted on October 22, 1936 through
Commonwealth Act No. 65.

• It was explained in said Commonwealth Act that the COGSA “contains

advanced legislation, which is in consonance with modern maritime rules
and the practices of great shipping countries of the world.”

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 Applicable to International
Shipping to the Philippines

▰ It must be noted that the Philippines must be the destination because of Article 1753 NCC
providing that the law that governs regarding carriage of goods is the law of destination.
Hence, COGSA does not apply to:
(a) International carriage of passengers by sea by common carriers.
(b) Domestic carriage of goods by sea by common carriers.

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Applicable to International Shipping to
the Philippines

▰ At any rate, in international carriage of goods by common carrier, Civil

Code is still the primary law, and only in case of its deficiency that COGSA
applies suppletory pursuant to Article 1766 NCC, or that when both NCC and
COGSA have provisions on a given fact however the provision of COGSA is
more specific than COGSA that makes the latter law applied.

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DEFINITION OF TERMS USED IN COGSA

a) The term "carrier" includes the owner or the charterer who enters into a contract of
carriage with a shipper.

(b) The term "contract of carriage" applies only to contracts of carriage covered by a bill of
lading or any similar document of title, insofar as such document relates to the carriage of
goods by sea, including any bill of lading or any similar document as aforesaid issued under
or pursuant to a charter party from the moment at which such bill of lading or similar
document of title regulates the relations between a carrier and a holder of the same.

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DEFINITION OF TERMS USED IN COGSA

(c) The term "goods" includes goods, wares, merchandise, and articles of every kind
whatsoever, except live animals and cargo which by the contract of carriage is stated as
being carried on deck and is so carried.

(d) The term "ship" means any vessel used for the carriage of goods by sea.
(e) The term "carriage of goods" covers the period from the time when the goods are
loaded on to the time when they are discharged from the ship.

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PARTIES UNDER THE COGSA ACT

▰ Carrier
▻ Includes the shipowner who entered into contract with the
shipper for the international transport of goods
▻ Also includes the charterer who entered into contract with the
shipowner regarding the use of the carrier and then entered
into contract with the shipper for the international transport of
goods.
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PARTIES UNDER THE COGSA ACT

▰ Shipper
▻ A person or company that sends goods by sea.

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Duties of Carrier under the COGSA

▰ Make the ship seaworthy

▰ Properly man, equip, and supply the ship
▰ Make the holds, refrigerating and cooling chambers, and all other parts of the
ship in which goods are carried, fit and safe for their reception, carriage, and
preservation
▰ Shall properly and carefully load, handle, stow, carry, keep, care for, and
discharge the goods carried
▰ After receiving the goods into his carrier, or the master or agent of the carrier,
shall, on demand of the shipper, issue to the shipper a bill of lading.
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Duties of Carrier under the COGSA

▰ The right of the carrier to be indemnified from damages resulting from

inaccuracies regarding the marks, number, quantity, and weight of the
goods provided by the shipper shall in no way limit the carrier’s
responsibility and liability under the contract of carriage or to any
person other than the shipper (e.g consignee, insurer of shipper in case
of subrogation)

▰ Carrier shall be responsible to the loading, handling, stowage, carriage,

custody, care, and discharge of the goods
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Duties of Carrier under the New Civil Code and
Philippine Jurisprudence

▰ International carriers shall exercise extraordinary diligence in the

performance of their contractual obligation
▰ Due care with the respect to the cargo
▰ Provide a seaworthy vessel.

It is important to take note that the provisions of COGSA are subject

to the provisions of the New Civil Code which serves as the primary
law. 13
DOCUMENT OF TITLE
REQUIRED
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DOCUMENT OF TITLE REQUIRED

▰ The contracts of carriage of goods covered by COGSA are

evidenced by Bills of Lading.

▰ The issuance of a bill of lading carries the presumption that the

goods were delivered to the carrier issuing the bill, for immediate
shipment

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COGSA REQUIREMENT OF BILL OF LADING

▰ Section 3(3) requires that after receiving the goods into his
charge, the carrier or the master or agent of the carrier, shall, on
demand of the shipper, issue to the shipper a bill of lading which
will show the following:
▻ loading marks necessary for identification of the goods
▻ Either the number of packages or pieces, or the quantity or
weight
▻ The apparent order and conditions of the goods 16
NOTICE OF CLAIM AND
PRESCRIPTIVE PERIOD
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NOTICE OF CLAIM AND PRESCRIPTIVE PERIOD

▰ Notice of claim must be made within 3 days from delivery if the

damage is not apparent.
▻ The notice in writing need not be given if the state of the goods
has at the time of their receipt been the subject of joint survey
or inspection.
▰ Period is not mandatory. However, the prescriptive period of 1
year from delivery for the filing of the case is a condition
precedent or mandatory.
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MISDELIVERY CONVERSION

▰ The 1 year prescriptive period does not apply to cases of misdelivery or

conversion
▰ “Loss” contemplates merely a situation where no delivery at all was
made by the shipper of the goods because the same had perished, gone
out of commerce, or disappeared in such a way that their existence is
unknown or they cannot be recovered. It does not include a situation
where there was indeed delivery – but delivery to the wrong person, or a
misdelivery.
▰ This prescriptive is designed to meet the exigencies of maritime
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DEFENSES AND
IMMUNITIES
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defenses and immunities

▰ Section 4 of COGSA is subject to the amendatory

provisions of the Civil Code.

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defenses and immunities

Section 4(1) - Under the New Civil Code, the carrier

will not be liable only if it can present proof that
the unseaworthiness was caused exclusively by
any circumstances in Article 1734.

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defenses and immunities
(common carrier)

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 COGSA VIS-A- VIS NEW CIVIL CODE
j) Strikes or lockouts or stoppage or restraint
of labor from whatever cause, whether partial
or general; Provided, That nothing herein
contained shall be construed to relieve a
carrier from responsibility for the carrier's own
acts;
k) Riots and civil commotions
l) Saving or attempting to save life or property
at sea;
m) Wastage in bulk or weight or any other loss or
damage arising from inherent defect, quality, or vice
of the goods;
n) Insufficiency of packing;
o) Insufficiency of inadequacy of marks;
p) Latent defects not discoverable by due diligence;
and
q) Any other cause arising without the actual fault and
privity of the carrier and without the fault or neglect of
the agents or servants of the carrier, but the burden of
proof shall be on the person claiming the benefit of
this exception to show that neither the actual fault or
privity of the carrier nor the fault or neglect of the
agents or servants of the carrier contributed to the 24
loss or damage.
WAIVER AND
LIMITING PROVISIONS
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WAIVER AND LIMITING PROVISIONS

▰ The owner and Shipowner and the ship agent may:

▻ Waive the benefits of any of the defenses in its favor.
▻ Increase its responsibilities and liabilities provided such increase shall be embodied in the
bill of lading.
In case of loss or damage, the shipper is allowed by the COGSA to recover only 500 dollors per
package unless there is a special declaration of the real value of the goods.
 Right to discharge Dangerous Cargoes
 COGSA allows the carrier to discharge the goods if they are discovered to be dangerous,
inflammable, or are explosive provided that the carrier did not consent to the carriage of26
such goods.
WAIVER AND LIMITING PROVISIONS

▰ The owner and Shipowner and the ship agent may:

▻ Waive the benefits of any of the defenses in its favor.
▻ Increase its responsibilities and liabilities provided such increase shall be embodied in the
bill of lading.
In case of loss or damage, the shipper is allowed by the COGSA to recover only 500 dollors per
package unless there is a special declaration of the real value of the goods.
 Right to discharge Dangerous Cargoes
 COGSA allows the carrier to discharge the goods if they are discovered to be dangerous,
inflammable, or are explosive provided that the carrier did not consent to the carriage of27
such goods.
JURISPRUDENCE-COVERAGE

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National Development Company V Court of Appeals
GR L- 4947 August 19, 1988

▰ CASE DOCTRINE:

It is the law of the country to which the goods are to be transported

that governs the liability of the common carrier in case of their loss, destruction
or deterioration pursuant to Article 1753 of the Civil Code. It is immaterial that
the collision actually occurred in foreign waters, such as Ise Bay, Japan.
However, collision falls among matters not specifically regulated by the Civil
Code, hence Article 826- 839, book III of the Code of Commerce, which deal
exclusively with collision of vessel should apply.
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Insurance Company of North America v Asian Terminals Inc
GR L-180784 July 11, 2012

▰ CASE DOCTRINE:

 The term “ Carriage of Goods” in the Carriage of Goods by Sea Act

(COGSA) covers the period from the time the goods are loaded to the
vessel to the time they are discharged therefrom.
 The carrier and ship shall be discharged from all liability in respect of
loss or damage unless suit is brought within one year after delivery of
the goods or the date when the goods should have been delivered.
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THANK YOU!

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