Shipping 2026

JAPAN Law and Practice Contributed by: Jumpei Osada, Masaaki Sasaki, Takuto Kobayashi and Hiroshi Ideyama, TMI Associates

• basic conditions for seafarers’ work (such as sea - farers’ employment agreements, hours of work or rest and complaint handling procedures) as inter - national standards; and • flag state inspections for vessels flying the Japa - nese flag and port state control for vessels flying a foreign flag so as to check if vessels comply with the Convention.

• the duty to receive, load, stow, carry, custody, discharge and deliver cargo properly and carefully; and • the duty to ensure the vessel is seaworthy in three respects, namely, the physical condition of the ves - sel, the efficiency of the crew and equipment, and the vessel’s cargo-worthiness. In the event of damage to the cargo during a voyage, the carrier is liable for damages unless the carrier can successfully prove that exercise of due diligence on the aspects has been fulfilled by the carrier. Calculation and Limitation of Liability for Cargo Damages The JCOGSA sets out the rules for calculation of cargo damages, which state that the amount shall be either the current market price or, if there is no available mar - ket, the normal value at the place and time at which the goods should have been discharged. The prevail - ing view is that determination of the value should be consistent with the cost, insurance and freight value. The JCOGSA also includes a package limitation that is identical to that set out in Article IV (5) of the Hague- Visby Rules. 4.4 Misdeclaration of Cargo The shipper is obliged to notify the carrier of the nature of the cargo, together with other information neces - sary to carry it safely, if the cargo has a flammable, explosive or otherwise dangerous nature. In the case of a breach of the shipper’s duty to provide notice of the cargo (including a misdeclaration), the carrier is entitled to claim damages against the shipper. On 12 December 2015, the Supreme Court affirmed a judgment by the Tokyo High Court in the NYK Argus case, in which it ruled that the shipper and the cargo manufacturers were liable for damage to the vessel and the cargo caused by a fire in the container of the cargo in question, on the basis of tort and product liability respectively. 4.5 Time Bar for Filing Claims for Damaged or Lost Cargo The time limits and prescription periods set out in substantive laws vary, depending on the nature of the claim. Claims for carrier’s liability for breach of

4. Cargo Claims 4.1 Bills of Lading

Contracts for international carriage of goods by sea under bills of lading are governed by the JCOGSA, which incorporates the essence of the Hague-Visby Rules, though with some variations. For example, unlike the Hague-Visby Rules, the JCOGSA extends the period of the carrier’s obligation for reasonable care of cargo from receipt by the carrier up to delivery to the receiver. The JCOGSA has force of law for the carriage of goods by sea when either or both of the port of loading or the port of discharge is located outside Japan (ie, interna - tional carriage), regardless of whether a bill of lading is issued. In contrast, contracts for domestic carriage of goods by sea are subject to the Commercial Code. 4.2 Title to Sue on a Bill of Lading Under Japanese law, the lawful holder of a bill of lad - ing is entitled to sue the carrier for loss or damage to the cargo, based on the contract of carriage on that bill of lading. Even if a bill of lading is not issued, the consignee has the title to make claims against the carrier after the cargo reaches the port of discharge, since the consignee is supposed to take over the shipper’s title at that time. Under Japanese jurisdic - tion, it would not be admittable to assign only title to sue without transfer of rights of the underlying claims (including transfer of a bill of lading). 4.3 Ship-Owners’ Liability and Limitation of Liability for Cargo Damages Ship-Owner’s Liability for Cargo Damages Under the JCOGSA, two main duties are imposed on the carrier:

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