Maritime Law Shipping and Maritime Law 2 — Questions and Answers
Question 1: Under the Carriage of Goods by Sea Act (COGSA), what is the carrier's standard liability limit per package?
- $100 per package
- $500 per package (Correct answer)
- $1,000 per package
- $2,500 per package
Correct answer: $500 per package
COGSA limits carrier liability to $500 per package or customary freight unit unless a higher value is declared.
Question 2: Which international convention governs the limitation of liability for maritime claims in the US context?
- The Hague Rules
- The Limitation of Liability Act of 1851 (Correct answer)
- The Athens Convention
- The Hamburg Rules
Correct answer: The Limitation of Liability Act of 1851
The US Limitation of Liability Act of 1851 allows shipowners to limit liability to the post-casualty value of the vessel plus pending freight.
Question 3: A bill of lading marked 'freight prepaid' means:
- Freight is to be collected at the destination port
- The shipper has already paid the ocean freight charges (Correct answer)
- The consignee must pay freight before delivery
- Freight charges are waived entirely
Correct answer: The shipper has already paid the ocean freight charges
'Freight prepaid' indicates the shipper has paid the freight charges before shipment, and the carrier cannot withhold delivery for non-payment of freight.
Question 4: What is 'deadfreight' in maritime commerce?
- Cargo that is damaged beyond repair during transit
- Freight charges paid for space booked but not used (Correct answer)
- The weight of the vessel without cargo
- Abandoned cargo at a foreign port
Correct answer: Freight charges paid for space booked but not used
Deadfreight is compensation paid by a charterer to a shipowner when the charterer fails to provide the agreed quantity of cargo.
Question 5: Under a voyage charter, who typically pays for the port costs at the loading and discharging ports?
- Always the shipowner
- Always the charterer
- It depends on the charter terms (FIOST clauses) (Correct answer)
- Always split equally between both parties
Correct answer: It depends on the charter terms (FIOST clauses)
Port cost allocation depends on charter terms — FIOST (Free In and Out, Stowed, Trimmed) clauses specify which party bears loading, stowing, and discharge costs.
Question 6: The 'Notice of Readiness' (NOR) in charter party law serves what primary purpose?
- Notifies customs authorities of a vessel's arrival
- Formally informs the charterer that the vessel is ready to load or discharge (Correct answer)
- Confirms the cargo has been properly stowed
- Advises the port authority of the vessel's departure
Correct answer: Formally informs the charterer that the vessel is ready to load or discharge
A NOR is a formal notice from the master to the charterer that the vessel has arrived and is ready to commence cargo operations, typically triggering the laytime clock.
Question 7: What doctrine allows a cargo owner to hold a vessel responsible for cargo damage even if the vessel was on a deviation ordered by the government?
- The doctrine of unseaworthiness
- The doctrine of perils of the sea
- The doctrine of barratry
- The doctrine of compulsory deviation (Correct answer)
Correct answer: The doctrine of compulsory deviation
Compulsory deviation doctrine recognizes that deviations required by law or government order do not excuse the carrier from liability for cargo damage caused during the deviation.
Maritime Law Shipping and Maritime Law 2
Under the Carriage of Goods by Sea Act (COGSA), what is the carrier's standard liability limit per package?