What it does
The Sea-Carriage of Goods Act 1909 (WA) imposes strict controls on clauses in bills of lading used for the carriage of goods by sea within Western Australia. Section 4(1) limits its application to ships carrying goods from any place in Western Australia to some other place in Western Australia, and to goods so carried or received to be so carried. The Act does not apply to interstate or overseas voyages. Section 4(2) carves out bills of lading or documents made before 31 March 1910 under contracts entered into before 1 September 1909.
Section 5 strikes at the heart of freedom of contract in maritime carriage. It declares illegal, null and void any clause, covenant or agreement in a bill of lading that relieves the owner, charterer, master or agent of a ship (or the ship itself) from liability for loss or damage to goods arising from the harmful or improper condition of the ship's hold or any other part in which goods are carried, or from negligence, fault or failure in the proper loading, stowage, custody, care or delivery of goods. The section also prohibits any clause that lessens, weakens or avoids the owner's or charterer's obligations to exercise due diligence, to properly man, equip and supply the ship, to make and keep the ship seaworthy, and to make and keep the ship's hold, refrigerating and cool chambers and all other cargo spaces fit and safe for reception, carriage and preservation of goods. Additionally, clauses that lessen, weaken or avoid the obligations of the master, officers, agents or servants to carefully handle and stow goods and to care for, preserve and properly deliver them are prohibited.
Section 6 creates a criminal offence for any owner, charterer, master or agent who inserts any such prohibited clause into a bill of lading or document, or who makes, signs or executes a bill containing such a clause. The penalty on summary conviction is a fine not exceeding $200. Section 7 implies a warranty of seaworthiness into every bill of lading: the ship must be, at the beginning of the voyage, seaworthy in all respects and properly manned, equipped and supplied. Furthermore, unless the contrary intention appears, a clause is implied in every bill of lading whereby, if the ship is seaworthy at the beginning of the voyage and properly manned, equipped and supplied, neither the ship nor her owner, master, agent or charterer is responsible for damage to or loss of goods resulting from faults or errors in navigation, perils of the sea or navigable waters, acts of God or the King's enemies, the inherent defect quality or vice of the goods, insufficiency of package, seizure under legal process, any act or omission of the shipper or owner of the goods, or saving or attempting to save life or property at sea (including deviation for that purpose). The Act therefore combines a strong prohibition against carrier exemption clauses with a statutory implied warranty of seaworthiness and a list of excepted perils that operate only if that warranty is satisfied.