Carriage of Goods by Sea Act - Explained
What is the Carriage of Goods by Sea Act?
Written by J. Mance Gordon
Updated at April 21st, 2024
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What is the Carriage of Goods by Sea Act?
The Carriage of Goods by Sea Act, referred to as COGSA, is a U.S. based set of statutes that regulates the authority and duties of cargo shippers and ship-owners with regard to sea shipments made from and to the U.S. See 46 U.S. Code 30701. It is substantially in the form of the Convention Regarding Bills of Lading, generally referred to as the Hague Rules.
How are Cargo Claims handled under the COGSA?
In the event the presenter of a bill of lading receives damaged or non-compliant goods or fails to received the specified goods, she has the following options:
- Make a claim against any insurance policy covering the shipment, or
- File a suit against the shipper, carrier or the seller.
If the shipper does not adhere to the Notice of Readiness (NOR), the shipowner has the right to terminate the carriage contract, and seek compensation for any losses incurred.