Limitation of liability under Argentine law in the carriage of goods

María Belén Espiñeira

IT&L Legal Consultants (MB Espiñeira & Abogados), Buenos Aires

mbe@itl-legalconsultants.com

Maria Soledad Radicchi

IT&L Legal Consultants (MB Espiñeira & Abogados), Buenos Aires

sr@itl-legalconsultants.com

Carriage of goods by sea: legal framework and liability regimes

The carriage of goods by sea in Argentina is governed by a dual legal framework:

• the Argentine Shipping Act 20,094 (Ley de Navegación); and
• the International Convention for the Unification of Certain Rules of Law relating to Bills of Lading (the 'Hague Rules'), signed in Brussels on 25 August 1924 and ratified by Argentina through Act 15,787 in 1960.

Because both instruments govern the same subject matter, the Hague Rules apply to international cases, whereas the Argentine Shipping Act regulates domestic cases. An international case is one that satisfies the criteria set out in section 10 of the Hague Rules, specifically, that a bill of lading or similar document of title was issued in a contracting state. If this condition is not met, the case is treated as domestic, even if it involves international elements. In such circumstances, the provisions of the Argentine Shipping Act apply exclusively.

Within this framework, the Argentine limitation of liability regime for the carriage of goods by water is structured in two parts:

1. limitation of liability for cargo claims under a contract of carriage; and

2. global limitation for other maritime claims, including third-party liability.

Argentina is not a party to the 1976 Convention on Limitation of Liability for Maritime Claims (the 'LLMC') or its 1996 Protocol.

Limitation for cargo claims under a contract of carriage

The Argentine Shipping Act establishes a package limitation based on the nature of the cargo damaged or lost, per package, piece, unit or kilogram weight. Although inspired by the Hague–Visby Rules, Argentine law follows a distinct approach. It adopts its own unit of account: the Argentine gold peso (peso oro).[1] This limitation applies to the vessel and carrier, and also extends to their servants and agents when claims are brought directly against them.

Section 278[2] of the Argentine Shipping Act provides that the limit of liability for cargo claims shall be calculated per:

• piece (for unpackaged heavy goods);
• package (for packed goods, eg, boxes or pallets); or
• unit of freight (for bulk cargo).

Where goods are carried in containers, the number of packages or units listed in the bill of lading is deemed to be the number of packages for limitation purposes.

The monetary ceiling is set at 400 Argentine gold pesos per package or piece, or per freight unit lost or damaged. By contrast, the Brussels Convention of 1924 establishes a limit of 100 gold pounds sterling per package or unit (section 4). Section 9 of the Hague Rules clarifies that all monetary units shall be understood in terms of gold value and expressly designates the pound sterling as the unit of account.

The right to limit liability operates as a defence and must be explicitly invoked by the carrier or shipowner in its first appearance before the court.

Although neither the Argentine Shipping Act nor the Hague Rules expressly limits the carrier's liability for delay in delivery, Argentine courts have applied the same monetary limits as those applicable to the loss of or damage to cargo, by virtue of section 1 of the Argentine Shipping Act. This provision establishes that, in cases where there is a gap in the law, the legal solution should be found within the proper provisions stated by the navigation law.[3]

Federal courts have consistently held that the limitation fund applies solely to the principal amount claimed as the value of the damages or lost goods, expressly excluding from the limitation any interest that may accrue, attorneys' fees and other judicial expenses (eg, those associated with expert witnesses who may intervene in the proceedings).[4]

Global limitation of liability for maritime claims

The Argentine Shipping Act provides a specific regime allowing the shipowner and disponent owner to limit their liability for losses and damages resulting from the acts or omissions of their employees, servants and agents in the course of performing their duties at sea.

The standard limitation fund is composed of:

• the value of the vessel at the end of the voyage; and
• any credits accrued on that voyage (eg, freight and tickets).

If the value of the vessel is insufficient to satisfy all claims for death or personal injury, the law provides a supplementary limit based on the ship's tonnage.[5]

In addition, the shipowner may limit liability by relinquishing the vessel in favour of creditors through a judicial process commenced within three months of the incident. This does not imply physical abandonment, but rather consists of depositing the vessel's ownership title in court. Following judicial sale, the proceeds, plus accrued voyage credits, form the exclusive fund for satisfying claims.

To establish a limitation fund in cash, the shipowner or disponent owner must deposit an amount equivalent to the value of the ship and the associated credits, and submit explanatory documentation detailing the fund's composition and listing all creditors or claimants. Once complete, a special limitation proceeding is initiated. If the shipowner opts to limit by relinquishment, a valid property deed must be submitted within the same three-month timeframe.

Limitation of liability may be invoked by the shipowner until the expiration of the deadline for raising defences within the enforcement proceedings of the judicial sentence that may be issued against the vessel.[6]

Carriage of goods by air: liability limits in international and domestic contexts

Turning to air transport, Argentina ratified the Convention for the Unification of Certain Rules for International Carriage by Air (the 'Montreal Convention'),[7] which governs liability in international air transport and provides a modernised legal framework for claims related to passengers, baggage and cargo.

This framework establishes limits on carrier liability, which are reviewed every five years by the International Civil Aviation Organization (ICAO) to account for inflation and changes in global economic conditions.

In the most recent review, conducted in October 2024, the liability limit for the destruction, loss, damage or delay of cargo was increased to 26 special drawing rights[8] (SDRs) per kilogram. This limitation value has been in force since 28 December 2024.

For domestic air transport, or in cases not governed by international treaties, the Argentine Aeronautical Code provides the applicable legal framework. Section 145 of the Code sets a liability cap for the carrier equivalent to two Argentine gold pesos per kilogram of gross weight, according to their exchange rate at the time the event giving rise to liability occurred. This limit applies unless the consignor, at the time of dispatch, makes a special declaration of interest in delivery and pays any applicable supplementary charge. In that case, the carrier is liable for the declared amount, unless it can prove that the actual value of the goods or luggage is lower, or that the declared amount exceeds the consignor's actual interest in delivery.

Road and multimodal transport: national and regional rules on carrier liability

Under the Argentine Civil and Commercial Code, the carrier's liability for the transport of goods by road is non-limitable, and any contractual provision attempting to impose a limit shall be considered null and void, as if it had never been included.

Argentina is not a contracting party to the Convention on the Contract for the International Carriage of Goods by Road. Instead, various other regional agreements may also apply, depending on the nature and route of the transport.

For multimodal transport operations, Argentina enacted the provisions of Law 24,921, which governs both the domestic and international multimodal carriage of goods. This law applies to international shipments where the contractually agreed place of delivery is located within the Argentine jurisdiction.

Section 24 of the law provides that, if damage occurred during the maritime or air segments of the transport, the carrier's liability shall not exceed the limits established by the specific rules applicable to those modes. When the stage during which damage occurred cannot be identified, or if it took place during the rail or road segments, the carrier's liability is limited to 400 Argentine gold pesos[9] per affected package for packaged goods and 400 Argentine gold pesos per freight unit for bulk goods.

The same provision also allows the parties to agree on a higher liability limit in the multimodal transport document. However, due to the lack of implementing regulations, this law is not currently enforceable in practice

Conclusion

The Argentine legal framework governing the carriage of goods, whether by sea, air, road or multimodal transport, reveals a complex mosaic of domestic statutes and international conventions, each with distinct regimes for liability and limitation. These provisions are considered as public policy. Therefore, any contractual provision inserted in the contracts of carriage that diminish the carrier's liability in excess of the limits provided by Argentine legislation shall be considered null and void.

This fragmented system reflects Argentina's commitment to align with global standards while also preserving certain domestic legal principles. For practitioners and stakeholders, a thorough understanding of the applicable instruments and their scope remains essential.

This coexistence of multiple liability regimes often generates legal uncertainty, particularly in cases involving multimodal or international transport, where determining the applicable law can be complex and contested. In such scenarios, the advice of local legal practitioners becomes essential, not only to navigate the intricate framework of domestic and international rules but also to interpret their application in light of the case law developed over the years by Argentine federal courts. A clear understanding of these judicial criteria and their practical implications is key for all parties involved in the carriage of goods under Argentine law.

 Notes