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P&I for Tug and Barge09 Jul 2009

As you know, cover for P&I liabilities may be by choice or dictated by Regulations. Let's look at the potential liabilities of an owner of a barge which we all know of; (1) Liabilities towards any loss/damage to cargoes carried on board Under the Carriage of Goods by Sea Act (COGSA), an operator/owner of a barge who issues a bill of lading will be deemed as carriers responsible for the obligations towards the owners of the cargo, even though the barge is under tow and unmanned. This is because the vessel named on the bill of lading is the barge and not the tug. Thus a party who would be liable under COGSA is the carrier and if the carrier is the owner of the barge, then this is where the liability rests.

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