Final answer:
Bills of lading as contracts of carriage specify the carrier's liability as unlimited, limited, strict, or no liability for goods during transportation, reflecting varying degrees of responsibility for cargo damage or loss.
Step-by-step explanation:
When functioning as a contract of carriage, bills of lading may indicate different levels of carrier liability for the goods being transported. The extent of a carrier's liability falls into several categories:
- Unlimited liability means that the carrier is responsible for the full value of the goods without any limit.
- Limited liability implies that the carrier's responsibility for the goods has a monetary cap, often based on a per unit or per kilogram rate as defined by law or contract terms.
- Strict liability refers to a situation where the carrier is held responsible for damages to the cargo, regardless of fault, often unless the carrier can prove the loss was due to an act of God, public enemy, act of the shipper, inherent vice, or public authority.
- No liability is the scenario where the carrier would not be held responsible at all for any losses or damages to the cargo, usually under specific conditions agreed upon in the contract of carriage or determined by law.
The terms of the bills of lading are particularly important for parties involved in logistics and the transport of goods, such as the carriers of containers, bulk cargos, or roll-on/roll-off cargoes for example.