Commercial realities win the day

Andrew Nicholas and Stephanie Morton, of Clyde & Co, look at a recent court examination of the Hague Rules

When the Hague Rules were drafted in 1924, those involved aimed to create a more level playing field in an industry where carriers usually had greater bargaining power than shippers. Often carriers sought to exclude all liability. The Rules were well received and are now incorporated into the vast majority of contracts for the carriage of goods. However, the shipping industry of today is radically different to that which existed in the 1920s. The advent of containerisation in the 1950s provides a striking example of this change. Accordingly, the Hague Rules have received criticism for not adequately addressing modern transport practices.