Answer
The Hague Rules and Hague-Visby Rules are international conventions governing the carriage of goods by sea under a Bill of Lading (B/L). They define the mandatory balance of rights, duties, liabilities, and immunities between shipowners/carriers and cargo owners/shippers.
The Hague Rules (1924): Adopted in Brussels to establish a global minimum standard of carrier liability and eliminate clauses in Bills of Lading that exempted carriers from all responsibility for cargo loss or damage.
The Hague-Visby Rules (1968 / 1979 SDR Protocol): An updated, amended version of the Hague Rules. Visby modernised liability caps to account for containerization and inclusion of SDR.
Hague Rules + 1968 Visby Protocol = Hague–Visby Rules.
A further 1979 SDR Protocol replaced the previous monetary unit with the IMF Special Drawing Right (SDR)
Core Duties of the Carrier (Article III)
The Rules mandate two fundamental, non-delegable obligations for the carrier:
Exercise Due Diligence to Provide a Seaworthy Ship: Before and at the beginning of the voyage, the carrier must exercise due diligence to:
Make the ship seaworthy.
Properly man, equip, and supply the vessel.
Make the holds, reefer spaces, and cargo areas fit and safe for receiving, carrying, and preserving cargo.
Care of Cargo: The carrier must properly and carefully load, handle, stow, carry, keep, care for, and discharge the cargo.
If cargo is lost or damaged, the carrier is protected from liability under 17 statutory exceptions, provided due diligence regarding seaworthiness was exercised. Key defences include:
Nautical Fault Defence: Act, neglect, or default of the Master, crew, or pilot in the navigation or management of the ship.
Fire: Unless caused by the actual fault or privity of the carrier.
Perils of the Sea: Exceptional weather, storms, or unexpected sea hazards.
Act of God, War, or Public Enemies.
Arrest, Restraint of Princes, or Seizure under legal process.
Strikes, Lockouts, or Riots.
Inherent Vice or Defect: Natural deterioration, decay, or defect of the cargo.
Insufficiency of Packing or Marking.
Latent Defects: Hidden defects not discoverable by due diligence.
Saving Life or Property at Sea: Deviations to save life/property are strictly permitted.
"Catch-All" Exception (Art. IV, r.2(q)): Any other cause arising without the actual fault, privity, or neglect of the carrier or its agents.
| Point | Hague Rules | Hague–Visby Rules |
|---|---|---|
| Original instrument | 1924 Convention | Hague Rules amended by 1968 Visby Protocol |
| Main purpose | Carrier/cargo liability under B/L | Updated Hague regime |
| Responsibility | Mainly tackle-to-tackle | Mainly tackle-to-tackle |
| Seaworthiness | Due diligence before and at beginning of voyage | Same principle |
| Cargo care | Properly and carefully handle, stow, carry, keep and discharge | Same |
| Original liability limit | £100/package or unit | 666.67 SDR/package or 2 SDR/kg, whichever higher, under 1979 SDR Protocol |
| Containerisation | Not adequately addressed | Package-counting provisions improved |
| Navigation/management defence | Available | Broadly retained |
| Time bar | 1 year | 1 year |
| Delay liability | No developed liability regime | No general liability regime for delay |