COGSA Basics: How Ocean Carrier Liability for Damaged Cargo Is Analyzed

What the law requires

COGSA generally applies of its own force to bills of lading for the carriage of goods by sea to or from U.S. ports in foreign trade, by default during the tackle-to-tackle period, and the parties may extend it by contract (for example, through a clause paramount) to periods before loading or after discharge. The claimant ordinarily begins by showing cargo was delivered to the carrier in good order but outturned damaged; the carrier may then seek to show due diligence to make the vessel seaworthy or invoke a § 4(2) defense, and how these burdens shift is fact-dependent. A clean bill of lading is generally prima facie evidence that the goods were received in apparent good order, but that evidence may be limited for concealed contents or sealed containers.

Evidence and practical next steps

Consider comparing the booking, bill of lading, mate’s receipts, loading photographs, outturn survey and temperature records. It may also help to identify whether the damage occurred before loading, aboard ship or after discharge, because contractual clauses may govern periods outside COGSA’s default scope.

Why early legal review matters

The applicable contract, status of the parties, location of the incident and relevant deadlines may materially change the analysis. It may help to have a lawyer review the underlying documents before drawing conclusions about liability, insurance coverage or recoverable damages. Different parties may have different defenses, and admiralty, state-law and federal statutory regimes (for example, COGSA, the Jones Act, the LHWCA, OCSLA, general maritime law and limitation proceedings) may apply differently or concurrently depending on the facts. Some contractual, statutory, notice and suit deadlines can be short. This article does not suggest that any party is or is not liable or that any particular forum is required.

Jahani Law P.C. assists with maritime and transportation disputes and maritime injury matters. If you would like to discuss a maritime matter, you may contact the firm through its website. This article provides general information only, is not legal advice, and may not reflect the most current law or apply in your jurisdiction. Reading this article or contacting the firm does not create an attorney-client relationship; an attorney-client relationship is formed only by a written engagement agreement. Please do not send confidential information until the firm confirms a relationship and completes a conflict check. Results depend on the facts of each matter, and no outcome is guaranteed.