Dangerous Cargo

What it does

A dangerous cargo clause deals with goods that pose a hazard in carriage, such as those that are flammable, corrosive, toxic, or liable to spontaneous combustion or shifting. It typically requires the charterer to declare such cargo, to ship it only in accordance with the applicable carriage codes and the ship's capabilities, and sometimes to obtain the owner's prior agreement to particular hazardous commodities.

The clause also allocates responsibility if dangerous cargo is shipped without proper declaration or in breach of the rules. Because undeclared or mishandled dangerous goods can damage the ship, the rest of the cargo, or endanger the crew, the clause backs the declaration requirement with consequences, including the owner's right to refuse, to land or destroy the cargo, and to recover the resulting loss from the charterer.

Commercial effect

The clause manages a risk that is small in probability but potentially severe in consequence. By requiring declaration and code compliance up front, it lets the owner decide whether the ship can safely and lawfully carry the goods, and it places the cost of getting it wrong on the charterer that shipped the cargo. That allocation can be very significant if an incident occurs.

For the charterer, the clause defines what it must disclose and the standards it must meet, and it is read together with the cargo description, since a cargo within the description may still engage the dangerous-cargo regime. The interaction shapes what the charterer can ship without further consent and what consequences follow if hazardous goods are presented without proper declaration.

Owner's perspective

The owner wants a strong dangerous cargo clause that requires full declaration, compliance with the relevant codes, and, for the more hazardous goods, its prior consent. The owner relies on this to protect the ship, the crew, and the other cargo, and to ensure it is not unknowingly exposed to goods the vessel is not equipped or certificated to carry safely.

The owner also wants clear consequences for breach: the right to refuse, to discharge, land, or render harmless undeclared dangerous cargo, and to recover its losses from the charterer. Because the downside of an incident is so large, the owner treats the declaration and compliance obligations as fundamental and resists wording that would soften the charterer's responsibility for what it ships.

Charterer's perspective

The charterer accepts that genuinely dangerous goods must be declared and carried to the codes, but it wants the clause workable, so that ordinary cargoes with minor hazards are not caught by an over-broad definition that triggers consent requirements at every turn. It seeks clarity on which goods need prior agreement and which may be shipped on declaration alone.

The charterer also wants the consequences to be proportionate and tied to real breaches, since the owner's remedies can be drastic. It is mindful that mis-shipping dangerous cargo exposes it to substantial liability, so it aligns its declarations with the cargo it actually trades and ensures its sale and supply contracts pass the necessary hazard information up the line in good time.

Negotiation points

• The definition of dangerous cargo and which goods need the owner's prior consent versus declaration only.
• The declaration and documentation the charterer must provide before shipment.
• The carriage standards and codes with which the cargo must comply.
• The owner's remedies for undeclared or non-compliant dangerous cargo.

Common variations

• A clause requiring declaration and code compliance for all dangerous goods.
• A clause requiring the owner's prior consent for specified hazardous commodities.
• An indemnity making the charterer liable for loss caused by undeclared dangerous cargo.
• A clause giving the owner rights to land, discharge, or render harmless dangerous cargo.