Legal Definitions - Harter Act

The Harter Act is a United States federal law enacted in 1893. It was a pioneering statute in maritime law that established rules for determining who is responsible when cargo shipped by sea is lost or damaged. Specifically, it regulated the liability of ocean carriers (shipping companies) for goods transported under a document called a bill of lading, which is essentially a contract for the shipment of goods.

While largely superseded by later legislation like the Carriage of Goods by Sea Act (COGSA), the Harter Act was historically significant as the first major attempt to legally define how risks of loss or damage were shared between shipping companies and cargo owners in international ocean transportation, particularly for voyages originating from or ending in U.S. ports.

Here are a few examples illustrating the application of the Harter Act:

• Example 1: Damage During Loading
  A U.S. company ships a consignment of industrial machinery from a port in Houston to a client in South America. While the machinery is being loaded onto the vessel, a crane malfunction causes a crate to fall, significantly damaging the equipment before the ship even departs. In this situation, the Harter Act, being a U.S. federal statute, would govern the carrier's responsibility for the damage. It would help determine if the shipping company is liable for the loss that occurred *before* the voyage began, as the cargo was under their care and being handled for ocean transport under a bill of lading.

• Example 2: Loss Due to Improper Stowage
  An American art gallery imports several valuable sculptures from an overseas artist. The sculptures are shipped under a bill of lading to a U.S. port. Upon arrival, it's discovered that due to improper securing and stowage in the ship's hold during the voyage, some of the sculptures shifted and suffered irreparable damage. If the damage occurred during the voyage due to the carrier's failure to properly care for the cargo (e.g., providing adequate stowage), the Harter Act would be relevant. It would help establish the carrier's duties and potential liability for the damage to the cargo while it was in their custody for ocean transport, especially concerning their obligation to properly load, stow, and care for the goods.

• Example 3: Damage from Unseaworthiness
  A U.S. agricultural exporter ships a large quantity of grain from a port in Seattle to an international buyer. Before the ship leaves the dock, a faulty valve in the ship's ballast tank, which should have been detected during inspection, leaks water into a cargo hold, spoiling a portion of the grain. This example illustrates the Harter Act's role in addressing a carrier's responsibility for the "seaworthiness" of the vessel. If the carrier failed to exercise due diligence to ensure the ship was fit for the voyage before departure from a U.S. port, and this unseaworthiness led to cargo damage, the Act would be applied to assess their liability for the spoiled grain.