Meaning Of ´Goods Lost Or Damaged´

The decision in England in Serena Navigation Ltd v Dera Commercial Establishment [2008] EWHC 1036 (Comm) considered the interpretation of Article IV Rule 5(a) of the Hague-Visby Rules. Article IV Rule 5(a) limits carriers' liability for damage to goods carried. This decision is important as the interpretation of Article IV Rule 5(a) has a significant influence on the amount that may be recovered against a carrier for goods damaged during carriage by sea.

Article IV Rule 5(a) provides that:

'Unless the nature and value of such goods have been declared by the shipper before shipment and inserted in the bill of lading, neither the carrier nor the ship shall in any event be or become liable for any loss or damage to or in connection with the goods in an amount exceeding 666.67 [Special Drawing Rights] per package or unit or 2 [Special Drawing Rights] per kilogram of gross weight of