Sea Bills of Lake, Hague-Visby Rules and the Ordinance for the Carriage of Goods at Sea
- A bill of lading in the field of sea transportation fulfills three main roles: the first is a receipt that the cargo carrier grants to the shipper of the cargo (Sugar) attesting to the delivery of the cargo to the carrier's authority; The second is a proprietary document that grants the holder the right to demand and receive the goods listed therein; and the third, which is relevant to our case, is a contractual role: it is the contract of carriage between the sea carrier and the shipper of the goods, and at least serves as evidence of the existence of the contract of carriage (section 4 of the Ordinance; Civil Appeal 6260/97 Polska Zegluga Morska Banque Nationale de Paris, New York, IsrSC 57(5) 193, 208 (2003) (hereinafter: the Polska case); Civil Appeal 8205/16 CONTRASTOCK OY V. THE SHIP, THOR HORIZON THROUGH THE SHIPOWNER, PARAGRAPH 7 OF THE JUDGMENT OF JUDGE HENDEL [NEVO] (JANUARY 25, 2018) (hereinafter: the THOR case); Kaduri Hacham-Aharon Marine Insurance and Claims 306 (6th edition 1998) (hereinafter: Hacham-Aharon)).
- The inequality in the bargaining positions between sea carriers and freight forwarders has led to the fact that over the years, carriers have reduced the obligations imposed on them, and have enshrined expansive exemption clauses in bills of lading in order to be free from liability for the integrity of the cargo. This problematic situation, as well as the expansion of the scope of maritime trade, led to an international initiative to regulate the field of maritime transport and to define the duties of maritime carriers (Gil Nadel and Moshe Sister Maritime Transport 14 (2008) (hereinafter: Nadel and Sister); the THOR case, at paragraph 8 of the judgment of Justice Hendel; Hacham-Aharon, at p. 387).
- Against this background, the International Convention for the Unification of the Rules Applicable to Bills of Lading was signed in Brussels in 1924, the provisions of which are known as the "Hague Regulations" or "Hague Rules". The Convention is intended to bring about the unification of the law applicable in different countries regarding bills of lading, and to establish a uniform level of liability in the field of maritime transport; This is done while creating a proper balance between the interests of sea carriers and cargo owners. This convention was amended in 1968, in the framework of the "Visby Protocol" held in Brussels, in a manner that led to the adoption of the "Hague-Visby Rules" (hereinafter: the Hague-Visby Rules or the Rules) (the THOR case, in paragraph 8 of the judgment of Justice Hendel; Nadel and Cister, at p. 15). These rules, which govern the responsibilities, duties and rights of maritime carriers and those in need of their services, have been adopted into the domestic law of many countries; And their use in the field of maritime transport is widespread throughout the world, also by virtue of individual agreements that refer to them (Civil Appeal Authority 9444/00 Bellina Maritime S.A. Monrovia Menorah Insurance Company Ltd., IsrSC 56(4) 788, 795 (2002) (hereinafter: the Bellina case); Civil Appeal 3552/01 Banco Exterior (Suiza) SA v. Zegluga Polska Spolka Akcyjna, IsrSC 59(4) 941, 948 (2005) (hereinafter: the Banco Exterior case); explanatory notes to a bill to amend the Carriage of Goods by Sea Ordinance, 5751-1991, Government Bill 262, 262 (hereinafter: the bill to amend the Ordinance)).
- In Israel, too, the legislature found it necessary to adopt the Hague-Visby Rules for Israeli law and to give them a statutory anchor. Initially, the original Hague Rules were adopted in the Transport of Goods by Sea Ordinance of 1926; Later, as part of an amendment to this Ordinance from 1992, which was also renamed theTransport of Goods by Sea Ordinance, these were replaced by the Hague-Visby Rules (Banco Exterior, at p. 948; Civil Appeal Authority 7195/18 FEYHA MARITIME LTD MILOVER Central Institute of Blends Ltd., para. 7 [Nevo] (May 12, 2019) (hereinafter: the FEYHA case); the bill to amend the Ordinance, at p. 262; Real and Sister, at p. 15). The purpose of the Ordinance, as stated in its preamble, is to give legal effect to the "Hague Regulations Regarding Bills of Lading", the wording of which is presented in the addendum to the Ordinance - which are, in fact, the Hague-Visby Rules - subject to the other provisions of the Ordinance, which set different conditions for their application in Israel (for more on some of them, see: Nadel and Sister, at pp. 16-22). The Ordinance and the addendum thereto therefore regulate the scope of the maritime carrier's responsibility for the transportation of the goods according to a bill of lading - its duties, rights, and various immunities available to it.
Provision of Section III(6) of the Hague Regulations - the Shortened Limitation Period
The main provision in our case, which is one of the most prominent provisions in the Hague-Visby Rules, is the limitation provision enshrined in the third paragraph of Section III(6) of the Hague Regulations, which states as follows:
"Subject to the provisions of Article 6A, the Carrier and the Vessel shall be exempt, in any event, from any liability in respect of the Goods, unless a claim is filed with the Court within one year from the date of delivery of the Goods or the date on which they were to be delivered; However, the said period may be extended, if the parties have agreed to this after the cause of action has been created."