Nautical Term: COGSA
Definition of COGSA
The Carriage of Goods by Sea Act (COGSA) is a comprehensive maritime legislation enacted to govern the contractual carriage of goods by sea. COGSA sets forth the minimum obligations of the shipping company towards the shipper, such as the duty to exercise due diligence to make the vessel seaworthy and to load, handle, stow, and discharge the goods in a careful and proper manner.
For instance, consider the following hypothetical scenario. A shipper enters into a contract of carriage with a shipping company for the shipment of 1,000 metric tons of steel coils from the port of Hamburg, Germany, to the port of Mumbai, India. Pursuant to the terms of the contract of carriage, the shipping company assumes responsibility for the safe and proper carriage of the steel coils from Hamburg to Mumbai. If the shipping company fails to exercise due diligence to make the vessel seaworthy, or to load, handle, stow, and discharge the steel coils in a careful and proper manner, the shipper may have a claim against the shipping company for any resulting damages or losses.
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