Transportation laws

STEVEDORING SERVICE

 The carriage of goods from the warehouse or pier to the holds of the vessel. (Chief of Staff vs. CIR)

 As understood in the port business, the term consists of the handling of cargo from the hold of the ship to the dock, in case of pier-side unloading; or to a barge, in case of unloading at sea. (Anglo-Fil Trading Corp. vs. Lazaro)

 The loading on the ship of outgoing cargo is also part of stevedoring work. (Ibid.)
CONTAINERIZATION/ “SAID-TO-CONTAIN”/ “SHIPPER’S LOAD AND COUNT” SYSTEM

 System whereby the shipper loads his cargoes in a specially designed container, seals the container and delivers it to the carrier for transportation. The carrier does not participate in the counting of the merchandise for loading into the container, the actual loading, and the sealing of the container. (US Lines v. Comm. Of Customs, ICTSI v. Prudential Guarantee)

 The matter of quantity, description and conditions of the cargo inside the container is the sole responsibility of the shipper, unless there is stipulation to the contrary. (US Lines vs. Comm. Of Customs, Reyma Brokerage v. Phil. Home Assurance)
Note: In order to attribute to the carrier any damage to the shipment that may be found, inspection of the goods should be done at pier-side. (Bankers vs. CA)

III. CARRIAGE OF GOODS BY SEA ACT/COGSA (C.A. No. 65)
APPLICABILITY

 The transportation must be:

1. 
   Water/maritime transportation;
   
2. 
   for the carriage of goods; and
   
3. 
   overseas/international/foreign (from foreign port to Philippine port).
   

 It can be applied in domestic sea transportation if agreed upon by the parties. (Clause paramount or paramount clause)

IMPORTANT FEATURES:

1. 
   Amount of carrier’s liability
   
2. 
   Notice of damage
   
3. 
   Prescriptive period
   

AMOUNT OF CARRIER’S LIABILITY

 Under the Sec. 4(5), the liability limit is set at $500 per package or customary freight unit unless the nature and value of such goods is declared by the shipper. This is deemed incorporated in the bill of lading even if not mentioned in it. (Eastern Shipping vs. IAC, 150 SCRA 463)

 Note that Art. 1749, NCC applies to domestic/inter-island/coastwise trade.
NOTICE OF DAMAGE (SEC. 3(6))

 Rules:

1. 
   Patent damage: shipper should file a claim with the carrier immediately upon delivery
   
2. 
   Latent damage: shipper should file a claim with the carrier within three days from delivery.
   

Note: The filing of a notice of claim is not a condition precedent.
PRESCRIPTIVE PERIOD

 Action for loss or damage to the cargo should be brought within one year after:

1. 
   Delivery of the goods (delivered but damaged goods); or
   
2. 
   The date when the goods should have been delivered (non-delivery). (Sec. 3[6])
   

 “Loss or Damage” as applied to the COGSA contemplates a situation where no delivery at all was made by the shipper of the goods because the same had perished, gone out of commerce, or disappeared in such a way that their existence is unknown or they cannot be recovered. Thus, it is inapplicable in case of misdelivery or conversion. (Ang vs. American Steamship Agencies Inc.) and damage arising from delay or late delivery (Mitsui O.S.K. Lines Ltd. vs. CA). In such instance the, Civil Code rules on prescription shall apply.

 The one-year prescriptive period is suspended by:

1. 
   The express agreement of the parties (Universal Shipping Lines, Inc. vs. IAC, 188 SCRA 170)
   
2. 
   The filing of an action in court until it is dismissed. (Stevens & Co. vs. Nordeutscher Lloyd, 6 SCRA 180)
   

 The one-year period shall run from delivery of the last package and is not suspended by extrajudicial demand. (Dole Phils.,Inc. vs. Maritime Co.,148 SCRA 118)

 The one-year period shall run from delivery to the arrastre operator and not to the consignee. (Union Carbide Phils, Inc. vs. Manila Railroad Co.,SCRA 359)
 The insurer exercising its right of subrogation is bound by the one-year prescriptive period. However, it does not apply to the claim against the insurer for the insurance proceeds. (Fil. Merchants Ins. Co. vs. Alejandro; Mayer Steel Pipe Corp. vs. CA)
IV. WARSAW CONVENTION OF 1929 (WC)
PURPOSE: To protect the emerging air transportation industry and to secure the uniformity of recovery by the passengers.

APPLICABILITY

 The transportation must be:

1. 
   International transportation;
   
2. 
   Air transportation; and
   
3. 
   Carriage of passengers, baggage or goods.
   

 The WC shall also apply to fortuitous transportation by aircraft performed by an air transportation enterprise.
 International transportation - any transportation in which the place of departure and the place of destination are situated either:

1. Within the territories of two High Contracting Parties regardless of whether or not there be a break in the transportation or transshipment, or

2. Within the territory of a single High Contracting Party, if there is an agreed stopping place within a territory subject to the sovereignty, mandate or authority of another power, even though that power is not a party to the Convention. (“round trip”, Am. Jur.)
 Transportation to be performed by several successive air carriers shall be deemed to be one undivided transportation, if it has been regarded by the parties as a single operation, whether it has been agreed upon under the form of a single contract or of a series of contracts, and it shall not lose its international character merely because one contract or a series of contracts is to be performed entirely within a territory subject to the sovereignty, suzerainty, mandate, or authority of the same High Contracting Party. (Art. 1 Sec.3)
WHEN INAPPLICABLE

1. 
   When public policy is contradicted;
   
2. 
   If the requirements under the Convention are not complied with.