The Legal and Economic Impact of the Caspiana Clause under Bills of Lading and Charterparties

Abstract

Certain exclusion clause, which is common to find in bills of lading and charterparties, exempts the carrier from liability in the event of strikes, lock-outs, or restraints of labour. The carrier, under such clause, has the right to discharge goods at any other safe and convenient port. Such clause is known as the ‘Caspiana Clause’. The shortcomings in the provisions of international conventions relate to carriage of goods by sea is very obvious in solving the ‘Caspiana Clause’ problem of who shall handle the costs of transshipping the goods to the original port of discharge after a strike, lockout, or restraint of labour is ended.