Compensation for Cargo Damage
in International Maritime Transportation:
Chinese Law Perspective
Lixin Han and Shuang Cai
Abstract The problem of scope of compensation for cargo loss or damage in
international carriage of goods by sea is of increasing significance in the current
milieu of shipping disputes. With the increase in volume of the Chinese import and
export trade, cases involving compensation for cargo loss or damage are occupying
an increasingly large proportion of judicial time in the Chinese Maritime Courts. The
determination of the scope of compensation for cargo loss or damage is crucial in
such cases, because it impacts significantly on the commercial interests of cargo
owners and carriers alike. This paper concerns the study of judicial practice in cases
adjudicated by Chinese Maritime Courts and analysis of relevant data involving the
scope of compensation for cargo loss or damage in international maritime transportation and losses which are incidental to the original bill of lading not being
presented to the carrier.
1 Introduction
In the contemporary milieu of international carriage of goods by sea, compensation
for cargo damage is of unprecedented importance in view of increasing globalization
in trade and commerce. Over 90% of Chinese trade is effectuated through maritime
transportation. Risks encountered at sea and consequent loss or damage suffered by
goods transported by ship combined with slow movements of transport documentation causing delays in the delivery of goods are increasingly frequent. As a result,
delivery of goods without surrendering the original bill of lading at the destination
port has become common practice. The domino effect is that claims for compensation for loss or damage to goods or losses caused by delivery of goods without
presentation of the original bill of lading are constantly on the rise.
L. Han (*)
Faculty of Law, Dalian Maritime University, Dalian, China
e-mail: hanlixin@dlmu.edu.cn
S. Cai
Law School, Dalian Maritime University, Dalian, China
© Springer Nature Switzerland AG 2020
P. K. Mukherjee et al. (eds.), Maritime Law in Motion, WMU Studies in Maritime
Affairs 8, https://doi.org/10.1007/978-3-030-31749-2_11
207
in International Maritime Transportation:
Chinese Law Perspective
Lixin Han and Shuang Cai
Abstract The problem of scope of compensation for cargo loss or damage in
international carriage of goods by sea is of increasing significance in the current
milieu of shipping disputes. With the increase in volume of the Chinese import and
export trade, cases involving compensation for cargo loss or damage are occupying
an increasingly large proportion of judicial time in the Chinese Maritime Courts. The
determination of the scope of compensation for cargo loss or damage is crucial in
such cases, because it impacts significantly on the commercial interests of cargo
owners and carriers alike. This paper concerns the study of judicial practice in cases
adjudicated by Chinese Maritime Courts and analysis of relevant data involving the
scope of compensation for cargo loss or damage in international maritime transportation and losses which are incidental to the original bill of lading not being
presented to the carrier.
1 Introduction
In the contemporary milieu of international carriage of goods by sea, compensation
for cargo damage is of unprecedented importance in view of increasing globalization
in trade and commerce. Over 90% of Chinese trade is effectuated through maritime
transportation. Risks encountered at sea and consequent loss or damage suffered by
goods transported by ship combined with slow movements of transport documentation causing delays in the delivery of goods are increasingly frequent. As a result,
delivery of goods without surrendering the original bill of lading at the destination
port has become common practice. The domino effect is that claims for compensation for loss or damage to goods or losses caused by delivery of goods without
presentation of the original bill of lading are constantly on the rise.
L. Han (*)
Faculty of Law, Dalian Maritime University, Dalian, China
e-mail: hanlixin@dlmu.edu.cn
S. Cai
Law School, Dalian Maritime University, Dalian, China
© Springer Nature Switzerland AG 2020
P. K. Mukherjee et al. (eds.), Maritime Law in Motion, WMU Studies in Maritime
Affairs 8, https://doi.org/10.1007/978-3-030-31749-2_11
207