UNIT 6

CARRIAGE BY SEA

Carriage by sea involves transporting goods via waterways, regulated by several statutes and conventions. See the case of Panalpina World Transport Ltd v. Nigeria Breweries Ltd (2010) 5 NWLR (Pt. 1187) 1 and NEPA v. S.T. Panis (Nigeria) Ltd (1975) 2 SC 7. See also the Merchant Shipping Act 2007, the Carriage of Goods by Sea Act 1926 and the Hague-Visby Rules. Below are some key provisions;

1. Bill of Lading: this serves as a receipt, evidence of the contract of carriage, and a document of title.
2. Carrier’s Liability: this happens under the Hague-Visby Rules, where carriers are liable for loss or damage to goods unless they prove the loss occurred due to specific exceptions.
3. Time Bar: this is where claims for loss or damage must be brought within one year from the delivery date.

CARRIAGE BY LAND

Carriage by land in Nigeria includes road and rail transportation. See the case of African Petroleum Ltd v. Owodunni (1991) 8 NWLR (Pt. 210) 391. See also the Road Traffic Act and the Nigerian Railway Corporation Act where key provisions inlcudes;

1. Carrier’s Liability: this is where carriers by land are liable for the loss or damage of goods unless the loss was due to the inherent nature of the goods or force majeure.
2. Contracts of Carriage: this contracts are governed by common law principles and statutory provisions.

CARRIAGE BY AIR

Carriage by air is essential for transporting goods quickly over long distances. See the case of British Airways v. Atoyebi (1998) 10 NWLR (Pt. 570) 233 and also the Civil Aviation Act 2006, the Montreal Convention 1999 where key provisions provided are;

1. Air Waybill: this serves as evidence of the contract of carriage and receipt of goods.
2. Carrier’s Liability: this liability is governed by the Montreal Convention, setting limits on the amount recoverable for loss or damage.
3. Claims and Limitation Period: this is here claims for damage must be made within 14 days, and lawsuits within two years.

CONTRACT OF AFREIGHTMENT

A contract of affreightment is an agreement between a shipowner and a charterer for the use of the ship. See the case of Transoceanica Societa Italiana di Navigazione v. Nigerian General Shipping and Forwarding Co. Ltd (1986) 4 NWLR (Pt. 37) 576 and also the key provisions below;

1. Voyage Charter: This is where the charterer hires the vessel for one or more voyages.
2. Time Charter: This is where the charterer hires the vessel for a specific period.
3. Demise Charter: This is where the charterer takes possession of the vessel.

THE BILL OFLADING

A bill of lading is a crucial document in maritime transactions. See the case of Bank of Baroda v. Panessa (1999) 12 NWLR (Pt. 631) 239 and some key provisions below;

1. Functions: this includes receipt of goods, evidence of the contract of carriage, and document of title.
2. Rights and Liabilities: This is where holder of the bill of lading has rights to the goods and can sue for any loss or damage.

THE C.I.F CONTRACTS

CIF (Cost, Insurance, and Freight) contracts require the seller to arrange and pay for the shipment and insurance of goods. See the case of A.G. Leventis (Nigeria) Plc v. Akpu (2007) 17 NWLR (Pt. 1063) 416 and below are some provisions below;

1. Seller’s Obligations: this includes to deliver goods, procure a marine insurance policy, and provide a bill of lading.
2. Risk Transfer: This is where the risk transfers from the seller to the buyer when the goods pass the ship’s rail.

THE F.O.B CONTRACTS

FOB (Free on Board) contracts involve the seller delivering goods onto a vessel chosen by the buyer. See the case of Premier Breweries Ltd v. Anere (2002) 8 NWLR (Pt. 770) 500 and with key provisions below;

1. Seller’s Obligations: this is to deliver goods on board the vessel.
2. Risk Transfer: This is where the risk transfers when the goods pass the ship’s rail.

DOCUMENTARY LETTERS OF CREDIT

Documentary letters of credit are a financial instrument used in international trade. See the case of Oceanic Bank International v. Aderemi (2005) 10 NWLR (Pt. 933) 420 and also the key provisions below;

1. Issuance: This is where the buyer’s bank issues a letter of credit in favor of the seller.
2. Payment: This is where the bank pays the seller upon presentation of specified documents.

CONCLUSION

Understanding the legal framework, key provisions, and relevant cases for carriage by sea, land, and air, as well as related commercial contracts and documents, is essential for conducting secure and efficient commercial transactions in Nigeria. These elements ensure the protection of parties' rights and the smooth operation of trade and commerce.