Ülgener

Ulgener

Limitation of the Carrier’s Liability For Loss or Damage to Goods

-T.Duygu Yazıcı

As it’s known, the carrier will be liable for loss or damage to the goods that occurs while the goods are under his control unless the damage or loss caused by an error in the navigation or technical management of the ship or a fire. However, the carrier has the right to limit his liability.

Similarly with the Hague Visby Rules, the Turkish Commercial Code (“TCC”) states in its article of 1186 that unless the nature and value of such goods have been declared by the shipper before shipment and inserted in the bill of lading, neither the carrier nor the ship shall in any event be or become liable for any loss or damage to or in connection with the goods in an amount exceeding 666.67 SDR per package or unit or 2 SDR per kilogram of gross weight of the goods lost or damaged, whichever is the higher.

Accordingly, the carrier’s liability due to loss or damage to the goods is limited under Turkish Law in line with the provisions of the Hague-Visby Rules. However, as in the Hague-Visby Rules, article 1187 of TCC stipulates that the carrier shall not be entitled to benefit of the limitation of liability if it is proved that the damage resulted from an act or omission of the carrier done with intent to cause damage, or recklessly and with knowledge that damage would probably result. The burden of proof is on the party (cargo interests) seeking to break the limitation.

The liability of the carrier arising from the loss or damage to goods will end one year after the delivery of the goods (or after the date on which the goods should have been delivered if the goods are not delivered).

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