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Aboitiz Shipping Corp v. CA

This case involves a shipment of cargo on a vessel owned by Aboitiz Shipping Corp. that sank while transporting the cargo from Hong Kong to Manila. The cargo was described and valued in the bills of lading. Aboitiz claimed its liability should be limited to $500 per container as stated in the bills of lading. However, the court ruled that Aboitiz's liability is based on the actual value of the lost cargo, as declared in the bills of lading, because an exception applies when the nature and value of goods are declared before shipment. The court also found that interpreting "container" to limit liability to $500 per large shipping container, rather than the units in which cargo was packed

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79 views1 page

Aboitiz Shipping Corp v. CA

This case involves a shipment of cargo on a vessel owned by Aboitiz Shipping Corp. that sank while transporting the cargo from Hong Kong to Manila. The cargo was described and valued in the bills of lading. Aboitiz claimed its liability should be limited to $500 per container as stated in the bills of lading. However, the court ruled that Aboitiz's liability is based on the actual value of the lost cargo, as declared in the bills of lading, because an exception applies when the nature and value of goods are declared before shipment. The court also found that interpreting "container" to limit liability to $500 per large shipping container, rather than the units in which cargo was packed

Uploaded by

Anonymous bOncqbp8yi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Aboitiz Shipping Corp. v.

CA

Facts
 Vessel MV “P. Aboitiz” took on board in HK for shipment to MNL some cargo of
one (1) twenty (20)-footer container holding 271 rolls of goods for apparel
covered by Bill of Lading No. 515-M and one (1) forty (40)-footer container
holding four hundred forty-seven (447) rolls, ten (10) bulk and ninety- five (95)
cartons of goods for apparel.
 Both shipments were consigned to the Philippine Apparel, Inc. and the vessel
owned and operated by Aboitiz.
 On its way to MNL, the vessel sunk and declared lost with all its cargoes.
Petitioner claims that its liability should be fixed at US$500.00 per container, as
stipulated in the BOL.

Issue & Ruling


WON petitioner’s liability should be fixed at US$500.00 per package/container.
NO.
 While it is true that in the bill of lading there is such stipulation that the liability of
the carrier is US$500.00 per package/ container/customary freight, there is an
exception, that is, when the nature and value of such goods have been declared
by the shipper before shipment and inserted in the bill of lading. This is provided
for in Section 4(5) of the Carriage of Goods by Sea Act1
 In this case the description of the nature and the value of the goods shipped are
declared and reflected in the bills of lading. Thus, it is the basis of the liability of
the carrier as the actual value of the loss.
 Moreover, it is absurd to interpret "container," as provided in the bill of lading to
be valued at US$500.00 each, to refer to the container which is the modern
substitute for the hold of the vessel. The package/container contemplated by the
law to limit the liability of the carrier should be sensibly related to the unit in which
the shipper packed the goods and described them, not a large metal object,
functionally a part of the ship, in which the carrier caused them to be contained.
Such "container" must be given the same meaning and classification as a
"package" and "customary freight unit."

1
"(5) 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 transportation of goods in an amount exceeding $500 per package of lawful money of the
United States, or in case of goods not shipped in packages, per customary freight unit, or the equivalent of that
sum in other currency, unless the nature and value of such goods have been inserted in the bill of lading. This
declaration, if embodied in the bill of lading, shall be prima facie evidence, but shall not be conclusive OR the
carrier.

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