Hague Rules

The Hague Rules, the 1924 International Convention for the Unification of Certain Rules of Law relating to Bills of Lading, set minimum duties and maximum liability limits for ocean carriers issuing bills of lading.

1924, in force 1931 International Worldwide 120 LNTS 155

What it requires

Signed in Brussels on August 25, 1924 and in force from June 2, 1931, the rules require carriers to exercise due diligence on seaworthiness and to properly load, stow and care for cargo, and list 17 exceptions, including navigational error and fire. Liability is limited to 100 pounds sterling per package or unit unless value is declared, and suits must be filed within one year. Many states later adopted the Hague-Visby amendments, while the United States applies the Hague Rules through COGSA.

Why it matters

The Hague Rules remain the base layer of ocean cargo liability for much of world trade, including every US import under COGSA. Their exceptions and package limits explain why carriers often owe little for lost containers. For example, a container lost overboard in a severe storm may fall under the perils of the sea exception, leaving the importer to recover only through cargo insurance. Any brand shipping inventory by ocean should understand that bill of lading terms rooted in these rules limit carrier responsibility.

Related laws

Sources

Not legal advice.