Answer
Hague Rules were adopted in 1924. Hague-Visby is not a completely new convention; it is the Hague Rules as amended by the 1968 Visby Protocol and later the 1979 SDR Protocol. The main changes are wider application, improved treatment of containerized cargo and increased liability limits. Hague had £100 per package/unit, whereas Hague-Visby under the SDR Protocol gives 666.67 SDR per package or 2 SDR per kg, whichever is higher.
Both international conventions govern carriage of goods by sea under Bills of Lading, but the Hague-Visby Rules (1968 Protocol) updated the original Hague Rules (1924) to resolve financial and liability loopholes:
Aspect | Hague Rules (1924) | Hague-Visby Rules (1968 Protocol) |
|---|---|---|
Limitation of Liability | (GBP)£100 per package or unit. | 666.67 SDR per package or 2 SDR per kg of gross weight (whichever is higher). |
Container Clause | Treats a container as 1 package (unfair to cargo owners). | If packages inside a container are itemized in the B/L, each package counts individually. |
Loss of Limitation | Carrier retains financial limits even in cases of intentional misconduct. | Carrier loses the right to limit liability if damage resulted from an act/omission done recklessly or with intent. |
Application | Applies to Bills of Lading issued in a contracting state. | Broader scope: applies if B/L is issued in a contracting state, carriage is from a port in a contracting state, or B/L incorporates the rules. |
Servants/Agents Protection | "Himalaya Clause" not recognized automatically. | Extended defenses and liability limits to carrier's servants/agents (excluding independent contractors). |