Transportation and Logistics

Decisions on the Carrier's Liability in the Freight Contracts Rendered in 2020 and 2021

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Introduction
The Turkish Commercial Code No. 6102 ("TCC") regulates maritime trade contracts under the fourth part of the fifth book of the Code. Among the types of contracts regulated in this section, the most frequently used contract in international maritime transport practice is the freight contract regulated under Articles 1138 et seq. in the third section.
Contract of Affreightment, Parties and Liabilitie

Pursuant to Article 1138 of the TCC, a contract of affreightment is a maritime commercial contract whereby the carrier undertakes, in exchange for freight: (i) in the case of a voyage charter contract, to carry the goods by allocating the whole or a part of the ship or a certain place of the ship to the charterer, or (ii) in the case of a contract in shipping liner trade, to carry the distinguished goods by sea.

The carrier, as one of the parties to the freight contract, is an important subject in the liability regime of freight contracts. Articles 1178 to 1207 of the Code regulate this liability regime. In this article, important decisions of the Court of Cassation and Regional Courts of Appeal rendered in 2020 and 2021 regarding the liability of the carrier in the freight contract will be discussed.

The liability imposed on the carrier under the freight contract is based on the duty of care and diligence set forth in Art. 1178 of TCC. The first two paragraphs of the Article introduce the basic principle and hold the carrier liable for damages arising from loss of, or damage to, or late delivery of the cargo. The exceptions to this liability are explained in the paragraphs and articles following Art. 1178.

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