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Containerisation and Carrier Liability

Centre for Maritime Law (CML) / Singapore Maritime Institute (SMI)
Project ID: SMI-2022-ET-03
Start date: March 2024
Status: Ongoing


27 January 2025



Containerisation, often regarded as the most significant technological advancement in modern shipping, has redefined the industry’s boundaries and operations. It has introduced key concepts, such as the supply of containers, stuffing and devanning, extended storage periods, and pre- and post-sea carriage processes. Today, cargo loss or damage is more frequently attributed to container-related issues – such as defective containers, improper stuffing, mismanagement, and stowage – rather than ship-related problems. These developments expose systemic limitations in the liability framework established by the Hague and Hague-Visby Rules, which were drafted without anticipating the idiosyncrasies of containerisation.

This research examines how English courts, alongside select Common Law jurisdictions – including Singapore, Australia, Canada, and the US – as well as certain Civil Law jurisdictions, have interpreted and applied these rules to container-related liabilities. The analysis focuses on pivotal issues, such as liability for defective containers, improper stuffing, and the evolving responsibilities of carriers throughout pre- and post-sea carriage.

The study also explores container-specific clauses in standardised bills of lading used by the world’s leading shipping lines, which control nearly 85% of global container trade. By assessing these contractual developments alongside judicial interpretations, the research reveals how carrier liability for containerised cargo has evolved and identifies gaps in the existing legal framework. Ultimately, this project proposes solutions to better align carrier liability with the realities of containerisation, ensuring a fair and balanced approach that accommodates both legal certainty and commercial practicality.

Presentations

  • “Impact of Containerisation on Bills of Lading under the Hague and Hague-Visby Rules”, CML Lunch Seminar Series, 29 October 2024
  • “Legal Aspects of Container Demurrage and Detention”, CML Lunch Seminar Series, 17 April 2024

Working Paper