Carriage of Goods by Sea Act (COGSA)

COGSA applies from loading to discharge on shipments in US foreign trade. Carriers must exercise due diligence to make the ship seaworthy and care properly for cargo, but are not liable for listed causes such as navigational error or fire. Liability is limited to $500 per package or customary freight unit unless the shipper declares a higher value on the bill of lading. Notice of loss is due at delivery, or within three days for damage not apparent, and suit must be filed within one year of delivery.

COGSA's $500 package limit, unchanged since 1936, is why importers insure ocean cargo rather than rely on carriers. Courts may treat a container as a single package unless the bill of lading lists the number of cartons inside. For example, if a container holding 800 cartons of shoes is lost and the bill of lading lists 800 cartons, the carrier's limit is $400,000, but if it lists one container, recovery could be $500. Importers and forwarders should make sure bills of lading state carton counts.

• Ocean Bill of LadingOcean carrier's receipt and contract
• Shipping InsuranceCoverage for lost or damaged packages
• Freight ClaimDemand to a carrier for lost or damaged freight

• Hague Rules1924, in force 1931 · 1924 treaty on ocean carrier bill of lading liability
• Harter Act of 18931893 · US law barring carriers from contracting out negligence
• Hague-Visby Rules1968, in force 1977 · Amended Hague Rules on ocean carrier liability

1. 46 U.S.C. 30701 note, Carriage of Goods by Sea Act, Cornell LII law.cornell.edu