If the owner undertakes to carry, and the bill of lading is issued in the name of the owner, this party will be the carrier. If the bill of lading is issued in the name of the charterer, the carrier will be the charterer. There is real-right limitation to the liability of the owner. Accordingly, liability of the owner under Section 947 is limited to marine wealth. Claimants have recourse only to the owner's marine wealth when seeking to recover any loss, but are entitled to a lien on the vessel.
Marine wealth includes both the vessel and the freight for the voyage giving rise to the claim.
The claimant is barred from having recourse to legal action for recovery against other vessels owned by the same owner. The liability of the carrier arising from any loss or damage to cargo is governed under compulsory provisions in parallel with the Hague Rules. There is only one difference. According to the principle of absolute non-liability, the existence of cases specified therein completely relieves the carrier from liability. However, unlike the Hague Rules, according to Section 1063, cargo interests are able to hold the carrier liable if they can prove that the reason for the loss or damage to the goods was the unseaworthiness of the vessel, or that the carrier had breached its duty to act diligently.