Shipping 2026

HONG KONG SAR, CHINA Law and Practice Contributed by: Christopher Andrew Potts, Crump & Co

sufficient to confer statutory title to sue against the carrier. Such assignments may be effective between parties for contractual purposes but cannot override the statutory mechanism. 4.3 Ship-Owners’ Liability and Limitation of Liability for Cargo Damages In Hong Kong, ship-owners’ liability for cargo damage is governed by the Carriage of Goods by Sea Ordi - nance (Chapter 462), which incorporates the Hague- Visby Rules. Limitation of liability is governed by the Merchant Shipping (Limitation of Shipowners’ Liabil - ity) Ordinance (Chapter 434), which implements the LLMC 1976/1996 Protocol. Under the Hague-Visby Rules, the carrier must pro - vide a seaworthy vessel and properly man, equip and fit holds for cargo. Defences include fire (unless due to owner’s fault), perils of the sea, saving life or property, inherent vice and shipper’s fault. Liability is limited to approximately 670 Special Drawing Rights (SDR)/ package or 2 SDR/kg, unless the cargo’s declared value exceeds this limit. The LLMC allows ship-owners and other entitled par - ties (charterers, managers, operators) to limit liability based on ship tonnage, creating a limitation fund in the court of first instance. To access the fund, security must be deposited or guaranteed. Under Chapter 462, the contractual carrier is always subject to the Hague-Visby Rules, while the liability depends on whether the bill of lading or contract extends the carrier obligations to the performing par - ty if the ship-owner is not the contractual carrier. A contractual carrier may attempt to claim LLMC ton - nage limits by establishing that they qualify as a “ship - owner” under Chapter 434, while cargo claimants may attempt to “break” the package limit by proving fault. 4.4 Misdeclaration of Cargo A carrier can sue a shipper for misdeclaration of cargo if the shipper’s inaccurate description causes loss, damage or expense, as this duty is imposed under Chapter 462, incorporating the Hague-Visby Rules. Under Article III, Rule 5 of those Rules, the shipper guarantees the accuracy of cargo particulars and

must indemnify the carrier for losses arising from inac - curacies. There is very little reported Hong Kong case law spe - cifically on misdeclaration claims. 4.5 Time Bar for Filing Claims for Damaged or Lost Cargo Claims for loss of or damage to cargo against a carrier are generally governed by the Hague-Visby Rules, as applied by the Carriage of Goods by Sea Ordinance (Chapter 462). A one-year time bar applies to all claims arising under the contract of carriage, running from the date of deliv - ery of the goods or the date when they should have been delivered. The one-year period may be extended only by express agreement, and such agreement must be made after the cause of action has arisen. Courts cannot extend the time bar unilaterally. If no extension is agreed, the claim is extinguished. If the Hague-Visby Rules do not apply (eg, in certain scenarios not involving a bill of lading or specific types of carriage), limitation is governed by the Limitation Ordinance (Chapter 347). The general time limit is six years from the date the cause of action accrued (eg, the date of breach of contract or the date on which damage occurred in tort). Claims by carriers against shippers (such as indem - nity or misdeclaration claims) are not subject to the Hague-Visby one-year bar falling within the six-year limitation regime. 5. Maritime Liens and Ship Arrests 5.1 Ship Arrests International Convention Hong Kong implements the 1952 Arrest Convention via its legislation, extending the UK’s application to Hong Kong. Domestic Laws High Court Ordinance (Chapter 4) Section 12A–12E lists specific maritime claims (eg, ownership, charter - party, salvage, crew wages, ship supplies, damage)

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