Legal Definitions - Harter Act

The Harter Act is a federal law that was passed in 1893 to regulate the liability of carriers for the loss or damage of ocean cargo that is shipped under bills of lading. This law applies to maritime transportation and is still in effect today.

Under the Harter Act, carriers are responsible for the safe transportation of cargo and must take reasonable measures to ensure that the cargo arrives at its destination in good condition. If the cargo is lost or damaged during transit, the carrier may be held liable for the value of the cargo.

For example, if a shipping company agrees to transport a shipment of electronics from China to the United States and the cargo is damaged during transit, the carrier may be held liable for the cost of the damaged goods under the Harter Act.

The Harter Act was the first attempt to allocate the risk of loss in ocean transportation between carrier and cargo interests. It served as a model for the Carriage of Goods by Sea Act, which has largely replaced it in practice.