Carriage of Goods by Land

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CARRIAGE OF GOODS BY LAND

The Carriers Act, 1865 and the railways Act, 1890 apply to carriage of goods by land. Carriers
act applies only to common carriers as distinguished from private carriers.

A common carrier may be any individual, firm or company, which transports goods as regular
business for money, over land or inland waterways. A private carrier carries his own goods and
may occasionally carry goods for selected persons.

Rights, Duties and Liabilities of a Common carrier

DUTIES

1. To receive and carry goods from all corners, indiscriminately


2. To carry the goods safely
3. To carry by his customary route without deviating from it unnecessarily
4. To obey instructions of the consignor
5. To deliver the goods within the agreed time at the stipulated place.

RIGHTS

The common carrier has the right to refuse carriage of goods in the following circumstances:

1. If he has insufficient or no room in his carrier


2. If the goods are of a type other than what he professes to carry
3. If the goods are not required to be carried by his customary route or to his usual
destination.
4. If the goods are dangerous to carry or expose him to risk.
5. If the goods to be carried are not offered at a reasonable time and in reasonable manner.
6. If the consignor is not prepared to pay reasonable amount in advance. 

LIABILITIES

A common carrier is an insurer of goods, but there are certain exceptions to this rule.

1. He is not liable for any loss or damage to goods caused by an act of God or natural
calamity, like the vehicle being struck by lightening.
2. He has no liability in case of injury caused by "enemies of the state.
E.g. foreign with whom the country may be at war.
3. He cannot be held responsible for loss due to any inherent vice or natural deterioration of
goods in transit. For e.g. evaporation of liquids, deterioration of fruit etc.
4. He is not liable for any loss due to neglect on the part of consignee. Such as defective
packing of goods.
SCHEDULED AND NON SCHEDULED GOODS

Goods are classified into scheduled and non-scheduled categories. Goods of high value are
termed as scheduled goods. For e.g. gold coins, precious stones, currency notes, work of art,
articles of ivory or sandalwood. etc. The carrier can charge extra for carrying such costly articles
provided their value exceeds Rs. 100 and will be liable for loss or damage only if the value and
description of goods has been disclosed by the consignor in advance or if the loss is due to a
criminal act of the carrier, his agents or servants. Other types of goods are called non-scheduled
goods.

CARRIAGE OF DANGEROUS GOODS

It is the duty of the consignor to warn the carrier when dangerous goods such as explosives, acids
or poisons are booked for carriage. In the absence of such warning, the consignor will be
responsible for any probable adverse consequences.

RAILWAYS

Railway is owned and run by the Government so it is not a Common Carrier. The carriage of
goods by railways is governed by Railway Act, 1890.

RAILWAYS LIABILITY

Railways are liable for loss, destruction or non-delivery of goods arising from any cause except
the acts of God, war or public enemies, fire, explosion or any unforeseen risk, arrest, restraint or
seizure under legal process, restrictions imposed by the Central or State Govts, natural
deterioration or wastage due to inherent defect, vice or quality of goods; latent defects, and any
act of omission or negligence on the part of consignor or his agents.

WHEN DOES THE LIABILITY TERMINATE?

Transit of goods by the railways terminates on the arrival of the goods at the destination and the
expiry of free days allowed for unloading of consignment from the railway wagon, without
payment of demurrage. The liability of the railways as a carrier terminates with the termination
of transit. However, for the period of 7 days after the termination of transit, the railway
administration continues to be responsible as a bailee for loss, destruction, damage, deterioration
or non-delivery of goods, except where the consignment is at owner's risk rate. After the expiry
of 7 days the railways are not responsible.
CARRIAGE OR GOODS BY SEA

A contract of carriage of goods by sea is called a contract of affreightment and the consideration
for carriage is called the freight. A contact of affreightment may take the form of a Charter Party
where an entire ship is hired, or a Bill of Lading, where the goods are to be carried in a general
ship which can be used for this purpose by any person. In both these contracts, the ship owner as
the carrier undertakes the responsibility of carrying the goods of the consignor safely and
securely to the destination.

Conditions Implied

In a contract for carriage of goods by sea, the following conditions are implied:

1. Seaworthiness - This means that the ship is reasonably fit to encounter the 'perils of the
sea'. This is an absolute undertaking warranted by the ship-owner. Seaworthiness is a
relative term meaning that the ship is fit to undertake the particular voyage and to carry
the particular cargo.
2. Commencement of Voyage - The ship shall be ready to load the cargo and commence
the voyage agreed on without undue delay and shall also complete the voyage with all
reasonable dispatch.
3. Non-deviation of Voyage - It means that if the ship does not carry out the voyage by the
prescribed or usual route in the customary manner, the contract becomes void from the
beginning of the voyage, no matter when and where the deviation from the usual route
took place.
4. Dangerous Goods not to be Shipped - If the shipper ships dangerous goods and if on
account of this, the charterer suffers any damage, he can recover the same from the
shipper.

CHARTER PARTY

A charter party is a contract providing for a hiring of a whole ship. Its terms may amount to a
leasing of the ship, when the master and the crew of the ship become the servants of the
charterer. A charter party may be for a particular period, or for a particular voyage. In the former
case it is called a time charter party and in the latter case, a voyage charter party has no specific
form; the form varies from trade to trade depending on the customs of the trade.

BILL OF LADING

A bill of lading is issued when goods are delivered for carriage to a general ship, which offers to
carry them. The position of the owner of a general ship is that of a common carrier. A bill of
lading may be used even when a ship is chartered. A bill of lading acknowledges the receipt of
goods is a document of title to the goods and is also a contract of carriage of goods.

A bill of lading, as a document of title to the goods, can be transferred to another person by
endorsement and delivery. This characteristic of a bill of lading resembles that of a negotiable
instrument, but in the strict legal and technical sense it is not a negotiable instrument. It may be
said that it is negotiable only in the popular sense.

DELIVERY OF GOODS

The prime duty and obligation of a carrier by sea is to deliver the goods to the holder of the bill
of lading, provided proper payment of freight has been made. Bill of lading is commonly drawn
in a set of three copies, one of which is sent to the consignee, the second is for the ship's master
and the consignor retains the third.

SHIPOWNER'S LIEN

In the event of non-payment of freight and other charges, the ship-owner has a right of lien on
the cargo. He is thus entitled to retain the goods in his possession until the dues are paid. His lien
exists independently of any express agreement in this regards, but ceases upon the delivery of
goods.

CARRIAGE OF GOODS BY AIR

The Carriage by Air Act, 1972 governs the carriage of goods by air. The provisions of this Act
apply to domestic flights in the same manner, as they are applicable to international flights
carrying cargo.

The various documents relating to carriage by air are briefly described hereunder.

PASSENGER TICKET

The Passenger Ticket issued by a carrier must show (I) the place and date of issue, (II) places of
departure and destination, (III) the agreed stopping place, (IV) the name and address of the
carrier, and (V) the statement that the carriage is subject to the liabilities mentioned therein. The
absence or loss of passenger ticket does not affect the validity of the contract of carriage, but if
the carrier accepts a passenger without a ticket, he cannot enjoy the benefit of limiting his
liability.

BAGGAGE CHECK

For the carriage of baggage, the baggage check, made out in duplicate must contain the
following particulars: 

1. The place and date of issues


2. Places of departure and destination,
3. Name and address of the carrier or carriers,
4. The number of passenger tickets,
5. A statement that the baggage will be delivered to the bearer of baggage check,
6. The number and weight of the package,
7. The amount of the value declared in accordance with Rule 22 (2), and
8. A statement that the carriage is subject to rules relating to liability stated therein. 

If the baggage check does not contain the particulars set out in (d), (f) and (h) above, the carrier
shall not be entitled to the benefit of rules limiting liability. 

AIR WAY BILL

This is a document handed over by the consignor to the carrier along with the goods. The Air
Way Bill is prepared in triplicate, the first copy being for the carrier, the second who must
accompany the goods, is for the consignee and the third is to be retained by the consignor, after
the carrier has signed it in token of acceptance of goods.

The Air Way Bill must contain the specified particulars for the correctness of which the
consignor is responsible and he will be liable for all damages suffered due to the incompleteness
of the particulars. The Air Way Bill is the prima facie evidence of the conclusion of contract of
carriage, of the receipt of goods as well s the statement relating to the weight, dimensions,
packing of the goods and the number of package.

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