Carriage of Goods by Sea Act governs claims for damage to cargo in course of shipment. This is the US enactment in terms of the Hague Rules. Under the provisions of the said Act, the ship owner is liable for damage to cargo from loading to discharge, unless it is excused under any of the 17 exceptions from liability including act of God , nature of the goods, navigation error, to indicate a few.
In this connection the liability of a ship owner is limited to $ 500 per package, unless higher value of the content is specifically disclosed and marked on the container.
This has also enabled the ship owners to restrict their liability to $ 500 per container regardless of the far larger value of goods damaged in transit.
The shipper must make the cargo claim within the time limit one year failing which it will not be entertained.
