Carriage of goods by sea to and from Philippine ports in FOREIGN TRADE is governed by the Carriage of Goods by Sea Act (COGSA), which the Philippines adopted, operating alongside the Civil Code provisions on common carriers and, suppletorily, the Code of Commerce. Knowing which regime applies matters because COGSA imposes two limits that can defeat an otherwise good claim. The first and most dangerous is the PRESCRIPTIVE PERIOD. The carrier and the ship are discharged from all liability in respect of loss or damage unless suit is brought within ONE (1) YEAR after the delivery of the goods or the date when the goods should have been delivered. This one-year period is far shorter than the ordinary Civil Code periods for breach of contract, and it is strictly applied. Two refinements matter: the period applies to loss or damage to the goods, and jurisprudence has treated MISDELIVERY or conversion differently from loss or damage in some circumstances; and the filing of a claim with the carrier does not by itself interrupt the running of the period, so a shipper negotiating with a carrier can lose the claim while waiting for a reply. The second limit is the PACKAGE LIMITATION. Neither the carrier nor the ship is liable for loss or damage exceeding the statutory amount per package, or per customary freight unit for goods not shipped in packages, UNLESS the nature and value of the goods have been DECLARED BY THE SHIPPER before shipment and inserted in the bill of lading. Declaring the higher value, and paying the correspondingly higher freight, is what lifts the cap; a shipper who leaves the value undeclared to save on freight accepts the limitation. On notice of claim: where the loss or damage is APPARENT, notice should be given to the carrier at or before removal of the goods; where it is NOT apparent, within three (3) days of delivery. Failure to give notice does not bar the suit but it removes the presumption in the shipper's favour, and the burden then rests more heavily on the claimant. Importantly, COGSA does not displace the Civil Code's regime of extraordinary diligence and the presumption of negligence; the Civil Code remains the primary law for goods carried to and from Philippine ports, with COGSA supplementing it in foreign trade.
When COGSA Applies
To carriage of goods by sea to and from Philippine ports in FOREIGN TRADE, alongside the Civil Code on common carriers and, suppletorily, the Code of Commerce.
The One-Year Deadline — The Claim-Killer
Carrier and ship are discharged from all liability for loss or damage unless suit is brought within ONE (1) YEAR after delivery, or the date the goods should have been delivered. Far shorter than ordinary contract periods, and strictly applied. Note that filing a claim with the carrier does not interrupt it — shippers lose claims while waiting for a reply.
The Package Limitation
Liability is capped at the statutory amount per package, or per customary freight unit for goods not in packages — UNLESS the nature and value were DECLARED by the shipper before shipment and inserted in the bill of lading. Declaring the value and paying the higher freight is what lifts the cap.
Notice of Claim
Apparent loss or damage: notice at or before removal of the goods. Not apparent: within THREE (3) DAYS of delivery. Failure does not bar the suit, but it costs the shipper the presumption in their favour.
COGSA Does Not Replace the Civil Code
The Civil Code regime of extraordinary diligence and the presumption of negligence remains the primary law for goods carried to and from Philippine ports; COGSA supplements it in foreign trade.
Frequently Asked Questions
How long do I have to sue an ocean carrier? One year after the delivery of the goods or the date when they should have been delivered. The period is strict, and filing a claim with the carrier does not by itself interrupt it.
What is the package limitation? A statutory cap on the carrier's liability per package, or per customary freight unit for goods not shipped in packages, unless the shipper declared the nature and value of the goods before shipment and had it inserted in the bill of lading.
When must I give notice of damage? At or before removal of the goods if the damage is apparent, and within three days of delivery if it is not. Failing to give notice does not bar the suit but removes the presumption in the shipper's favour.
Does COGSA replace the Civil Code rules on common carriers? No. The Civil Code's extraordinary diligence standard and presumption of negligence remain the primary law, with COGSA supplementing them for foreign trade.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
If you have questions about your rights or options under Philippine law, our firm is available to assist. You may reach us via Viber or WhatsApp, call us at 0995 433 5550, or send an email to vivasnobles@gmail.com. We look forward to hearing from you.