Legal Definitions - COGSA

COGSA stands for the Carriage of Goods by Sea Act.

In maritime law, COGSA refers to a specific law that governs the rights and responsibilities of carriers (shipping companies) and shippers (owners of goods) when cargo is transported internationally by sea. It sets out the duties of the carrier to properly load, handle, stow, carry, keep, care for, and discharge the goods, and also outlines the circumstances under which a carrier might be excused from liability for loss or damage. Many countries have their own versions of this law, often based on an international agreement known as the Hague Rules, and the acronym "COGSA" is frequently used as a general term to refer to these national statutes, even if their official title is different.

Here are some examples of how COGSA applies:

• Damage to Cargo During Transit: Imagine a company in China ships a container full of ceramic tiles to a distributor in New York. During the ocean voyage, the ship encounters severe weather, causing the container to shift and many of the tiles to break. When the distributor receives the damaged shipment, they would look to COGSA to understand the shipping company's liability for the broken tiles. COGSA would outline the carrier's obligations regarding the safe transport of the goods and any defenses the carrier might have, such as damage caused by "perils of the sea."

• Time Limit for Filing a Claim: A clothing importer in London receives a large shipment of garments from India. Several months after the delivery, they discover that a significant portion of the order is missing, a shortage that was not immediately apparent upon receipt. COGSA typically imposes a strict one-year time limit, or "statute of limitations," for filing a lawsuit against the carrier for loss or damage to goods. The importer would need to ensure they initiate their claim within this one-year period from the date the goods were delivered or should have been delivered, otherwise, their legal recourse against the shipping company could be barred.

• Limits on Carrier Liability: Consider a manufacturer shipping a very expensive, custom-built industrial robot from Germany to Brazil. The robot is valued at $1 million, but the bill of lading (the shipping contract) does not explicitly declare this high value. If the robot is damaged due to the carrier's negligence, COGSA often limits the carrier's financial liability to a specific amount per package or customary freight unit (e.g., $500 per package in the U.S. version), unless the shipper declared a higher value for the goods and paid additional freight charges. This illustrates how COGSA can cap the carrier's financial responsibility, even for valuable cargo, if the shipper did not take specific steps to declare the true value.