Carriage of Goods by Sea Act of 1936
- U.S. shipping law
A U.S. law which, among other provi¬sions, establishes statutory responsibility for the carrier’s liability for certain types of damage. Where the COGSA applies, generally speaking, the vessel or carrier is respon¬sible for damage resulting from negligence in the loading, stowing and discharge of cargo. It is not responsible for damage resulting from errors of navigation or manage¬ment of the ship, from unseaworthiness of the vessel (un¬less caused by lack of due diligence to make it seaworthy), or from perils of the sea, fire, and a number of other listed causes. The burden of proof in establishing fault will rest at times upon the shipper and at times upon the carrier. The COGSA provides that the shipowner’s liability will be limited to US$500 per shipping package, and states that there is a one-year time limit for filing suit against the car¬rier. At issue is the definition of a shipping package. Orig¬inally, a package might be a simple carton or crate. Over time, carriers argued that a shipping package was a pallet, and then a container. This had the effect of diluting carrier liability. Also, the degree to which a steamship company can be held responsible for damage sustained by a specific shipment is frequently difficult to determine. COGSA ap¬plies to import and export shipments and, by agreement, to much U.S. coast-wise and intercoastal business as well.
Carriage Paid To
- Incoterms 2000
Carriage Paid To ...named place of destination = CPT
An international trade term of sale in which, for the quoted price, the seller / exporter / manufacturer clears the goods for export, delivers them to the car¬rier, and is responsible for paying for carriage to the named place of destination. However, once the seller delivers the goods to the carrier, the buyer becomes responsi¬ble for all additional costs.
In Incoterms 2000 the seller is also responsible for the costs of unloading, customs clearance, duties and other costs if such costs are included in the cost of carriage such as in small package courier delivery.
The seller is not responsible for procuring and paying for insurance cover.
The CPT term is valid for any form of transport including multimodal.
The named place of destination in CPT and all C In¬coterms 2000 is domestic to the buyer, but is not necessar¬ily the final delivery point.
The Carriage Paid To term is often used in sales where the shipment is by air freight, containerized ocean freight, courier shipments of small parcels, and in ro-ro (roll-on, roll-off) shipments of motor vehicles.
A carrier can be a shipping line, airline, trucking firm, railway or also an individual or firm who undertakes to procure carriage by any of the above methods of transport including multimodal. Therefore, a person, such as a freight forwarder, can act as a carrier under this term.
If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier.
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