Opinion ID: 151053
Heading Depth: 4
Heading Rank: 2

Heading: The Yang Ming Sea Waybill

Text: The Yang Ming sea waybill, accepted by OWL, also contained several terms relevant to this litigation. First, the Yang Ming waybill also had its own Himalaya Clause and Clause Paramount, both rolled into clause 7(1) of the bill: [I]n the event that this Bill covers shipments to or from the United States, then COGSA shall be compulsorily applicable and shall (except as may be otherwise specifically provided elsewhere herein) also govern before the Goods are loading [sic] on and after they are discharged from the Vessel provided, however, that the Goods at said times are in the actual custody of the carrier or any Underlying Carrier or Sub-Contractor. J.A. 183. The waybill defined Underlying Carrier as any water, rail, motor, air or other carrier utilized by the Carrier for any parts of the transportation the shipment [sic] covered by this Bill. Id. A Sub-Contractor was defined to include owners and operators of Vessels (other than the Carrier), stevedores, slot chartered owners, terminal and groupage operators, Underlying Carrier, road and rail transport operators and any independent contractor employed by the Carrier in performance of the Carriage. Id. Second, the COGSA $500 per-package limitation was spelled out in clause 23(3): In the event this Bill covers the Goods moving to or from a port of final destination in the United States, the Carrier's limitation of liability in respect to the Goods shall in no event exceed U.S. dollars $500 per package.... Id. Clause 23(4) allowed a shipper to avoid the package limitation by declaring a higher value for the cargo and paying a correspondingly higher rate: The aforementioned limitations of liability set forth in this provision shall be applicable unless the nature and value of the Goods have been declared by the Merchant before shipment and agreed to by the Carrier, and are inserted in this Bill and the Applicable ad valorem freight rate, as set out in Carrier's Tariff, is paid. Id. OWL did not declare a higher value for the cargo or pay the higher rate.