Section 7 of the The Carriage of Goods by Sea Act 2025 Modification of paragraphs 4 and 5 of Article III in relation to bulk cargoes
Original Section Text
(a) the weight of any bulk cargo inserted in the bill of lading is a weight ascertained or accepted by a third party other than the carrier or the shipper; and
(b) the fact that the weight is so ascertained or accepted is stated in the bill of lading,
then, notwithstanding anything contained in the applicable rules, the bill of lading shall not be deemed to be prima facie evidence against the carrier of the receipt of goods of the weight so inserted in the bill of lading, and the accuracy thereof at the time of shipment shall not be deemed to have been guaranteed by the shipper.
Visual Summary
A special exception for how weight is treated for bulk shipments.
Applies when an independent party measures the weight, not the shipper or carrier.
The bill of lading’s weight is not considered initial proof against the carrier.
The shipper does not have to guarantee the accuracy of the third-party’s weight.
Executive Summary
This section creates a special rule for ‘bulk cargo’ like grain or coal. If an independent third party (someone other than the shipper or the carrier) measures the weight of the cargo, and this fact is noted on the bill of lading, then two things happen: 1) The weight on the bill of lading is no longer considered automatic proof against the carrier if there’s a dispute. 2) The shipper is not held responsible for guaranteeing the accuracy of that weight. This acknowledges that for bulk goods, weight is often determined by specialists, and it protects both the carrier and shipper from liability for figures they didn’t personally verify.
In-Depth Analysis of the Section
Introduction
Section 7 of the Act provides a very specific and practical exception to the general rules about information on a bill of lading. Normally, the details on a bill of lading, such as weight, are considered strong evidence. However, this section addresses the unique challenges of shipping bulk cargoes, where precise measurement can be complex and is often outsourced.
Breakdown of the Provision
The section lays out a two-part condition for this exception to apply:
- Condition 1: Third-Party Measurement. The weight of the bulk cargo must be determined by a ‘third party’. This means an entity that is independent of both the person sending the goods (the shipper) and the company transporting them (the carrier). This is a common practice in many trades, where a certified weighing station or surveyor provides the official weight.
- Condition 2: Stated on the Bill of Lading. It’s not enough that a third party did the weighing. The bill of lading must explicitly state this fact. For example, it might say ‘Weight as per certificate from [Third Party’s Name]’.
If both conditions are met, the legal consequences are significant:
- For the Carrier: The bill of lading can no longer be used as ‘prima facie evidence’ of the weight against them. ‘Prima facie’ means ‘at first sight’ or ‘accepted as correct until proven otherwise’. So, if a dispute arises about a weight shortage, the person receiving the goods cannot simply point to the bill of lading as proof; they would need to provide additional evidence that the carrier was at fault.
- For the Shipper: The shipper is released from their usual duty to guarantee the accuracy of the weight they provide. This protects the shipper from being held liable for discrepancies that might arise from the third-party weighing process.
Practical Example
Imagine a company ships 50,000 tonnes of iron ore. At the port, a professional, independent surveyor company weighs the ore as it’s loaded and issues a certificate. The bill of lading states: ‘Weight: 50,000 tonnes (as per surveyor’s certificate)’. When the ship arrives at its destination, the buyer claims only 49,900 tonnes were unloaded. Because of Section 7, the buyer cannot sue the carrier and use the bill of lading as the sole proof of the 100-tonne shortage. The burden of proof shifts. Similarly, the carrier cannot sue the original shipper for providing an ‘inaccurate’ weight, as the shipper’s guarantee is removed under this rule.
Conclusion
Section 7 is a pragmatic rule that reflects real-world commercial practices. It fairly distributes risk by acknowledging that when an independent expert determines the weight of bulk cargo, neither the shipper nor the carrier should be automatically held responsible for the absolute accuracy of that figure. It prevents the bill of lading from being used in a way that would be unfair to the parties who relied on a specialist’s measurement.
Related Provisions
This section modifies specific rules found within the Schedule of the Act. Understanding the foundational sections that apply these rules is crucial for context. The following sections are particularly relevant:
- Section 3: Application of Schedule – This is the core section that makes the ‘applicable rules’ (where the general rules on bills of lading are found) legally effective for goods shipped from India. Section 7 provides a specific modification to those rules.
- Section 5: Statement as to application of Schedule to be included in bills of lading – This section mandates that every bill of lading must state that it is subject to the Act’s rules. Section 7 deals with specific content that can be included on that same bill of lading to alter the effect of those rules.
Learning Aids
Mnemonics
- BULK: Bill’s Usual Liability is Kancelled when a third party weighs the cargo.
- 3P-W: 3rd Party Weight means the Carrier and Shipper are Worry-free about guaranteeing it.
Mind Map
Frequently Asked Questions
What exactly is ‘bulk cargo’?
Bulk cargo refers to goods that are shipped loose and unpackaged in large quantities. Think of commodities like grain, coal, iron ore, oil, or cement that are poured or loaded directly into a ship’s hold rather than being put in individual boxes or containers.
Why isn’t the carrier responsible for the weight on the bill of lading in this case?
The law recognizes that it’s unfair to hold the carrier responsible for a weight they did not measure themselves. When an independent, specialist third party provides the weight, the carrier is simply recording that information. This section prevents that recorded number from being used as automatic proof against them, as they were relying on an expert’s measurement.
Does this mean the carrier can lose cargo without any consequences?
No, not at all. It simply changes the type of proof required. The person receiving the goods can still make a claim for lost cargo, but they cannot rely solely on the bill of lading’s stated weight as their proof. They would need to provide other evidence to show that the cargo was lost due to the carrier’s fault during the voyage.
Test Your Knowledge
Quiz: For the special rule in Section 7 to apply, which of the following conditions is necessary?
A) The cargo must be worth more than a specific value.
B) The weight must be determined by a third party and this fact must be stated on the bill of lading.
C) The shipper must personally sign a waiver of liability.
Show Answer
Correct Answer: B) The section explicitly requires both that a third party ascertains the weight and that this is noted on the bill of lading.
Quiz: Under Section 7, what happens to the shipper’s guarantee of the cargo’s weight?
A) The shipper’s guarantee is doubled.
B) The shipper is still required to guarantee the weight’s accuracy.
C) The shipper is not deemed to have guaranteed the accuracy of the weight.
Show Answer
Correct Answer: C) The section explicitly states that the accuracy of the weight shall not be deemed to have been guaranteed by the shipper.
More Quiz
Quiz: What is ‘prima facie evidence’ in this context?
A) Conclusive, undeniable proof.
B) Evidence that is accepted as true at first glance, unless proven otherwise.
C) A type of evidence that is not allowed in court.
Show Answer
Correct Answer: B) Section 7 removes this ‘at first glance’ status from the bill of lading’s weight, meaning other proof is needed to establish the carrier’s liability.
Quiz: This section applies to which type of cargo?
A) All containerized goods.
B) Only live animals.
C) Bulk cargoes.
Show Answer
Correct Answer: C) The text of the section specifically refers to ‘any bulk cargo’.