Shipping 2026

CANADA Law and Practice Contributed by: Rui Fernandes, Andrea Fernandes and Conal Calvert, Gardiner Roberts LLP

4. Cargo Claims 4.1 Bills of Lading

Under Section 25 (1)(b) of Canada’s MLA, the definition of “shipowners” in the LLMC Convention is extended to include non-seagoing ships and any person who has an interest in or possession of a ship from and including its launching. Section 29 (b) of Canada’s MLA provides that the maximum liability for cargo damage maritime claims involving a ship of less than 300 GT is CAD750,000. 4.4 Misdeclaration of Cargo Under Article III of the Hague-Visby Rules, which are incorporated into Canada’s Marine Liability Act (MLA), the shipper is deemed to have guaranteed to the car - rier the accuracy of the marks, number, quantity and weight of the goods and the shipper shall indemnify the carrier against all loss, damages and expenses arising or resulting from inaccuracies in such particu - lars. There are no current reported judgments approv - ing or denying claims made against the shipper for misdeclaration of cargo. 4.5 Time Bar for Filing Claims for Damaged or Lost Cargo Under Article VI of the Hague-Visby Rules, which are incorporated into Canada’s Marine Liability Act (MLA), legal action must be commenced within one year from the delivery date – or, for non-delivery, within one year of the date the goods should have been delivered. This applies whether the action is founded in contract or in tort. This period may be extended if the parties agree after the cause of action has arisen. If no bill of lading or similar document of title applies to the car - riage, for example if a sea waybill was issued, then the time bar set out in the terms and conditions of said seaway bill would likely apply. 5. Maritime Liens and Ship Arrests 5.1 Ship Arrests Canada is not a signatory to any international conven - tions on ship arrest. Instead, ship arrests are governed by the Federal Courts Act and the Federal Court Rules. 5.2 Maritime Liens Maritime liens are not necessarily distinguished from maritime claims, except in so far as maritime liens are by definition in rem against the vessel itself, though

Canada’s MLA incorporates the Hague-Visby Rules (Brussels Protocol 1968), giving them the force of law for contracts for the carriage of goods by water between Canada and other “Contracting States”, and for contracts on domestic routes (Canada-to-Canada, direct or via foreign ports) unless a bill of lading is absent and the contract expressly excludes them. 4.2 Title to Sue on a Bill of Lading Under Section 2 of the Bills of Lading Act 1985, every consignee of goods named in a bill of lading, and eve - ry endorsee of a bill of lading to whom the property in the goods therein mentioned passes on or by reason of the consignment or endorsement, has and is vested with all rights of action and is subject to all liabilities in respect of those goods as if the contract contained in the bill of lading had been made with such party. 4.3 Ship-Owners’ Liability and Limitation of Liability for Cargo Damages Canada’s MLA incorporates the Hague-Visby Rules (Brussels Protocol 1968) and the LLMC Convention as amended by the Protocol of 1996. Under Article I of the Hague-Visby Rules, a “carrier” includes the owner or charterer who enters into a con - tract of carriage with a shipper. Article III of the Hague- Visby Rules sets out the responsibilities and liabilities of the carrier. Article IV of the Hague-Visby Rules sets out the rights and immunities of the carrier and ship including the limits of liability. Article VIII of the Hague-Visby Rules provides that the provisions of these Rules shall not affect the rights and obligations of the carrier under any statute for the time being in force relating to the liability of owners of vessels. Part 3 of Canada’s MLA incorporates the LLMC Con - vention. Article 1 of the LLMC Convention entitles ship-owners and salvors to limit their liability. “Ship - owners” is defined as the owner, charterer, manager and operator of a seagoing ship. Article 6 of the LLMC Convention set out the general limits.

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