Akiyama Corp. of America v. M.V. Hanjin Marseilles

The Carriage of Goods by the Sea Act, 46 U.S.C.App. § 1300, et seq. (COGSA), governs the liabilities of parties to a bill of lading for the carriage of goods by the sea. COG-SA strictly limits a carrier’s liability, and provides: “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 transportation of goods in an amount exceeding $500 per package.” Id. § 1304(5). A bill of lading may contractually expand COGSA coverage to third parties with a “Himalaya Clause.”

Akiyama Corporation of America contracted with Hanjin Shipping Company Ltd. to ship a printing press from Tokyo to Long Beach Harbor in California. The press was carried as cargo aboard the vessel Hanjin Marseilles. Hanjin Shipping issued a bill of lading covering the shipment which noted that the press was packed in four separate cases. The bill of lading contains a clause pursuant to COGSA which limits Hanjin Shipping’s liability for cargo damage. The bill of lading also contains a Himalaya Clause which extends the limitation of liability benefits to certain entities.

Hanjin Shipping contracted with Total Terminals, the operator of the terminal to…