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MEO CLASS 1 · ORAL QUESTION 104

Himalaya Clause??

Answer

A Himalaya Clause is a contractual provision in a Bill of Lading (B/L) or charter party that extends the legal protections, immunities, defenses, and liability limitations enjoyed by the primary carrier to third-party sub-contractors—such as stevedores, terminal operators, port authorities, independent contractors, and sea-side agents.

Origin of the Clause

The clause is named after the historic English court case Adler v. Dickson (1954), involving a passenger ship named SS Himalaya:

To prevent cargo owners or passengers from bypassing liability caps by suing stevedores, terminal handlers, or independent contractors directly in tort, maritime lawyers drafted the "Himalaya Clause."