1.1. Cargo Protect Guarantee provides the “Client” with certain compensation limits for loss of, damage to or expenses incurred in connection with the “Protected Goods” during transit subject to these general terms and conditions (the “Terms”) by providing:
i) deviations to certain provisions of the “Contract of Carriage” issued by a “ESL”, all other terms not contrary thereto remaining fully applicable;
ii) monetary compensation up to one of the limits selected by the Client (see below);
iii)settlement within 30 days for straightforward payment requests following the submission of all required documents.
1.2. For the avoidance of doubt, any Client claiming that the Protect Guarantee applies to its cargo admits that the Contract Carriage is also applicable between the Client and ESL.
Unless where the context requires otherwise, capitalized terms in these Terms shall have the same meaning as in the Bill of Lading Terms and Conditions of ESL (which terms and conditions are available on the links listed in Clause 13 below).
i) “Client” means the individual or company who purchased the Guarantee described hereunder or any other person requesting payment under the Guarantee provided always that the claimant under the Cargo Protect Guarantee has an interest in the Protected Goods and title to sue ESL under the Transport Document.
ii) “ESL” means Emirates Shipping Line FZE, being the Carrier on whose behalf the Transport Document is issued.
iii) “Contract of Carriage” means any contract of carriage evidenced by a Transport Document for the Carriage of Goods entered into between the Carrier and the Merchant irrespective of whether a Transport Document has been physically issued provided always that Goods have been accepted for Carriage and the Merchant is entitled to demand a Transport Document.
iv) “Guarantee” means the Cargo Protect guarantee subject to these Terms which is purchased by the Client in conjunction with and at the time of entering into a Contract of Carriage.
v) “Maximum Compensation Limit” has the meaning defined in Clause 6 of these Terms.
vi) “Protected Goods” means such Goods transported under and subject to a Transport Document issued by ESL in respect of which the Guarantee proposed by ESL has been purchased by the Client.
vii) “Shipment” means any such Protected Goods, cargo or container/s booked and carried under one (1) and the same Transport Document.
viii) “Transit Period” has the meaning defined in clause 4.1 of these Terms.
ix) “Transport Document” means a Bill of Lading or seaway bill issued by ESL.
3.1 Upon final acceptance of Goods for Carriage by the Carrier and provided always that Client has applied for the Guarantee, and obtained the Guarantee prior to such acceptance, the Guarantee will apply to the Goods, always subject to the Carrier (or the Carrier’s agent on behalf of the Carrier) having received payment for the Guarantee as per clause 4.3 hereinafter.
3.2 The Guarantee and these Terms shall co-exist with, and in respect of the relevant provisions of the Contract of Carriage only, amend, vary and supplement the relevant parts of the terms of the Contract of Carriage, which shall in all other respects remain in full force and effect. In case of any discrepancy between these terms and the terms of the Contract of Carriage, the former will prevail.
3.3 For any portion of a payment request in excess of the Maximum Compensation Limit, ESL shall be entitled to rely on the terms and conditions of the Contract of Carriage in full and these Terms shall not apply thereto provided always that ESL shall be entitled to deduct from any payment request relating to Goods the full amount of any compensation paid to any Client under the Cargo Protect Guarantee.
4.1 The Guarantee only applies to lawful goods that are suitably packed, secured, lashed and stowed for the intended voyage, and while the Goods which are subject to a Contract of Carriage are in transit which shall mean the period commencing from the beginning of loading operations alongside the first carrying vessel until completion of discharging operations from the last carrying vessel in respect of which a Transport Document has been issued by ESL (the “Transit Period”). For war risk the Guarantee cover commences as soon as the goods are loaded on the oversea vessel and terminates with discharge from the oversea vessel or at latest 15 days after arrival of the vessel at the final port of discharge whichever first occurs.
Fragile Goods (including but not limited to Glass, Ceramic, Marble, Granite, Tiles, Pottery and similar breakables) are only covered if they are professionally packed or in new original manufacturer packaging. Used Household Goods and/or Personal Effects must be professionally packed and have a value itemized inventory completed prior to shipment, but excluding marring, scratching, chipping, denting, breakage unless caused by the vessel being stranded, sunk, burnt or in collision.
4.2 The Guarantee applies solely to physical loss or damage and expenses directly related thereto (always excluding any indirect loss and damage, loss of profits and consequential losses) caused to the Protected Goods during the Transit Period up to the Maximum Compensation Limit caused by any one of the below limitative events:
4.3. The Guarantee covers, except as excluded by the provisions of Clauses 5 below, loss of or damage to the Protected Goods caused by:
and is subject to 7 days’ notice of cancellation.
4.4 The Guarantee will be invoiced together with Freight (one single invoice).
5.1 The Guarantee is not applicable to any and all losses, cost, expenses, damage, shortage which are not expressly covered as per Clause 4.2 above and as well as the following exclusions:
i) Any Indirect Loss and Damage, Loss of Profits and Consequential Losses.
ii) Return Shipments, unless Cargo Protect is purchased separately and individually for the Return Shipment and provided the Goods have not been unpacked and are returned in their original packing.
iii) Specific commodities: Living animals, Weapons, Ammunition, Explosives, Crude Oil, Coal of any kind, Drugs, Jewelry, Diamonds, Species/Fine Art, Precious metals/coin and cash, dangerous goods, cargoes whose trade poses a danger to endangered species, military cargo, waste, breakbulk, out-of-gauge cargo, sanctioned cargo, dual use goods that are subject to international sanctions, any and all goods transported in reefer containers.
iv) Shipment in respect of refrigerated containers and/or cargo, including but not limited to any commodity which requires specific temperature and/or humidity settings whatsoever.
v) Shipment from and/or to and/or through Myanmar, Central African Republic, Congo (DRC), Libya, North Korea, Somalia, Sudan (North), South or North Sudan, Syria, Yemen, Cuba, Venezuela, Iran, Russia, Crimea, Luhansk Republic and Donetsk Republic, Ukraine and Belarus, and/or any countries/territories subject to sanctions or embargoes by the UN, EU, UAE and US. The Guarantee offered herein, and any payment of compensation shall be strictly subject to compliance with all UN, EU, UAE and US sanction applicable regimes.
5.2 The Guarantee shall not apply if the loss and damage to the Protected Goods is due to:
a) Omission, negligence or willful misconduct of the Client or the Merchant;
b) shrinkage, evaporation, loss of weight, leakage, rusting, exposure to light, or change in color, texture or flavor, ordinary wear and tear;
c) Insufficiency or unsuitability of lashing and/or packing, securing, stowage in a container or preparation of the Protected Goods to withstand the ordinary incidents of the transit;
d) Decay or normal decomposition in time, or any deterioration of the cargo due to its nature, packing, or any other condition or circumstance whereby the cargo is not fit for carriage by sea, normal settling, shrinking or expansion in buildings, structures or foundations; any other gradually occurring loss or damage caused by moths, termites or other insects, or by vermin, smog or fog;
e) In no case shall this Guarantee cover loss damage or expense arising from: A) unseaworthiness of vessel or craft or unfitness of vessel or craft for the safe carriage of the Goods, at the time the Goods are loaded therein B) unfitness of container or conveyance for the safe carriage of the Goods, where loading therein or thereon is carried out prior to attachment of this Guarantee or by the Client or their employees and they are privy to such unfitness at the time of loading.
f) Inherent vice, latent defect or nature of the Protected Goods;
g) Delay even when the delay is caused by a risk generally covered by the Cargo Protect Guarantee.
h) Fines, penalties, customs dues and/or any similar charges or cost;
i) loss, damage or expense caused by insolvency or financial default of the owners, managers, charterers or operators of the vessel where, at the time of loading of the Goods on board the vessel, the Client and/or Beneficiary are aware, or in the ordinary course of business should be aware, that such insolvency or financial default could prevent the normal prosecution of the voyage
j) Cyber-attacks and/or the use or operation, as a means for inflicting harm, of any computer, computer system, computer software program, malicious code, computer virus or process or any other electronic system;
k) Scratches and scuffs, mechanical or electrical breakdown on vehicles, machinery and/or electric items;
l) Damage or loss resulting from the oldness of the objects or occurring to objects having undergone deterioration or previous repairs;
m) Any loss or damage being, wholly or partly, the consequence or result of:
i. directly or indirectly caused by or arising from the use of any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter;
ii. any chemical, biological, bio-chemical, or electromagnetic weapon;
iii. the failure, error or malfunction of any computer, computer system, computer software programme, code, or process or any other electronic system;
iv. the use or operation, as a means for inflicting harm, of any computer, computer system, computer software programme, malicious code, computer virus or process or any other electronic system;
v. a communicable disease or the fear or threat (whether actual or perceived) of a communicable disease regardless of any other cause or event contributing concurrently or any other sequence thereto. A communicable disease means any disease which can be transmitted by means of any substance or agent from any organism to another organism where: a) the substance or agent includes, but is not limited to, a virus, bacterium, parasite or other organism or any variation thereof, whether deemed living or not, and b) the method of transmission, whether direct or indirect, includes but is not limited to, airborne transmission, bodily fluid transmission, transmission from or to any surface or object, solid, liquid or gas or between organisms, and c) the disease, substance or agent can cause or threaten bodily injury, illness, damage to human health, human welfare or property;
vi. the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear component thereof;
vii. any act of terrorism, regardless of any other cause contributing concurrently or in any other sequence to the loss, damage or expense; For purposes of this exclusion, terrorism means an act or threat of violence or an act harmful to human life, tangible or intangible property or infrastructure;
viii. Willful, dishonest and fraudulent acts or omission by the Client or any of their directors, sub-contractors, employees or agents;
ix. electrical, electronic or mechanical breakdown or derangement.
x. War on land.
5.3 In any action, suit or other proceedings where ESL alleges that a loss, damage, cost or expense is not covered by this Guarantee, the burden of proving that such loss, damage, cost or expense is covered shall be upon the Client.
6.1 The maximum compensation payable under the Guarantee shall be limited to the lower of (i) the proven physical losses, damages or expenses or the general average and/or salvage contribution incurred, suffered or paid by the Client and (ii) one of the following limits selected and paid for by the Client at the time of purchase (the “Maximum Compensation Limit”):
always subject to such limit per Shipment to be requested by the Client and accepted by ESL in writing.
6.2 Solely for the purpose of payment requests brought under the Cargo Protect Guarantee, ESL shall not rely on the Carrier’s statutory limitations or exclusions of liability for payment requests properly made under the Guarantee, always subject to the Maximum Compensation Limit and these Terms.
6.3 In case the amount of the payment request lodged by the Client exceeds the maximum compensation described hereabove, the excess not covered under the Guarantee shall be subject to the provisions of ESL Bill of Lading Terms and Conditions, including all the relevant liability limitations and exclusions.
6.4 Any compensation paid under a Guarantee will be deducted from any compensation for any alleged liability claim of the Client under the Contract of Carriage.
6.5 Upon receipt of the compensation by the Client, the Client releases and discharges ESL from any and all claims, demands, actions, or proceedings that the Client may have against ESL in relation to the Protected Goods, for which compensation has been paid under the Guarantee terms and conditions. This release is limited to the amount of compensation paid.
6.6. The Client confirms, that upon receipt of the compensation by the Client, the Client will indemnify and hold ESL harmless from any claims, demands, actions, or proceedings that are rightfully brought against ESL by the party/parties legally entitled to claims for damages in relation to the Protected Goods, for which compensation has been paid. This indemnification is limited to the amount of compensation paid.
6.7. If and insofar as Client is entitled to claims for damages against any third party in relation to the Protected Goods for which compensation has been paid, the Client, upon receipt of the compensation, assigns any and all rights to such damages to ESL, which hereby accepts such assignment in advance. This assignment is limited to the amount of compensation paid.
6.8. If ESL compensates a third party for damage to or loss of the Protected Goods, for which the Client raises claims under the Guarantee, the compensation owed under the Guarantee will be reduced by the amount paid to that third party. If in such case (a) the amount paid to that third party exceeds the Maximum Compensation Limit and (b) the incurred damage as calculated subject to clause 6.1 exceeds such paid amount, then and only then ESL will pay Compensation for the remainder subject to the limitations made herein.
7.1 Immediately upon the Client being aware of any loss of or damage to the Goods, the Client shall contact the usual ESL agent and provide such documents and evidence as may be requested from time to time by ESL, including at least, the following documents:
i) Copy of the Transport Document (both sides);
ii) Freight invoice;
iii) Copy of the cargo commercial invoice and proof of payment;
iv) Detailed statement of loss;
v) Surveyor report showing the damage and the cause thereof.
7.2 ESL may, in its unfettered discretion, require that the cause and the extent of loss be assessed by an independent surveyor appointed by ESL. In case of any discrepancy between the report of the surveyor appointed by the Client, the Merchant or any party other than ESL, and such report of the surveyor appointed by ESL, the latter will prevail.
7.3 Payment of the compensation shall be made against a release and receipt signed by the Client.
The Client shall always remain responsible for payment of general average and issuing adequate bond and securities as required by the Adjuster and/or salvors so as to obtain the release of the cargo from general average and salvage liens. The Client shall only be entitled to financial compensation under the Guarantee (and within the limit of guarantee purchased) upon production of the evidence of payment of the general average / salvage contribution as ascertained by a final adjustment prepared by the Adjuster.
9.1 It is the duty of the Client and its employees and agents to:
9.2 Any measures taken by ESL aimed at saving, protecting or recovering the Protected Goods shall not be considered as a waiver or acceptance of abandonment or otherwise prejudice the rights of either party.
The law and jurisdiction applicable to these Terms shall be the law and jurisdiction stated to apply in the Transport Document of ESL.
11.1 All dispute and actions arising between ESL and any Client in connection with or arising out of the Cargo Protect Guarantee shall be brought before the court or tribunal having jurisdiction pursuant to the Transport Document issued by ESL and no other court or tribunal shall have jurisdiction with regards to any such dispute or action.
11.2 Notwithstanding the above, ESL is also entitled to bring the dispute or action before the court or tribunal of the place where the Client has its registered office.
ESL reserves the right to modify the above terms and conditions from time to time, provided that such modifications do not adversely affect the rights of the Client under Guarantees issued prior to such modification.
The Bill of Lading Terms and Conditions of ESL are available at the following link:
https://www.emiratesline.com/bl-terms/
It is a condition precedent to ESL’s obligations hereunder that a detailed and valued inventory, object by object must be provided to ESL by the Client prior to the stuffing/loading.
In the event of any payment request, ESL shall reimburse the cost of repairing or replacing damaged or missing items up to the declared value for each item and in proportion to the actual value of a similar item, at the place of destination, always subject to the Maximum Compensation Limit and these Terms.