The Hague-Visby Rules

The purpose of Hague-Visby Rules was to amend the Hague Rules because of the criticisms that were raise from several quarters. In particular, the rules on limitation of liability per package or similar units were criticized partly because the amount of limitation as too low and partly because technological development such as containerization, use of pallets, etc shown that the existing rules were inadequate.

Carrier’s Liability

The Hague-Visby Rules provided the following:

1. The limitation of liability if carrier at the higher monetary limit of 30 Poincare Francs per kilo of gross weight (since converted to 2 SDRs or Special Drawing Rights under the rules of the International Monetary Fund) or 10,000 Poincare Francs per package or unit (since converted into 666.67 SDRs).
2. Extension of the period of the one year limit fro bringing suit against carrier by mutual agreement between the parties.
3. Action for indemnities against third parties.

The Hague-Visby Rules however did not change the basic principles of liability for damage to or loss of cargo nor did they alter the exceptions (nautical errors, fire, etc).