Deck Cargo

What it does

A deck cargo clause addresses cargo carried on the open deck rather than in the holds, which is common for timber, containers, pipes, and project or over-dimensional pieces that will not fit below. Because deck stowage exposes the cargo to weather, sea, and a greater risk of loss overboard, the clause sets out whether such carriage is permitted and on what terms.

Crucially, the clause usually places deck cargo at the risk of the charterer or shipper, often coupled with a statement that it is carried at their risk and without the owner's liability for the special perils of deck carriage. It interacts with the cargo description and stowage provisions, and with the documentation, since deck carriage is typically noted on the bill of lading so that downstream holders know the goods travelled on deck.

Commercial effect

Permitting deck cargo expands what the charterer can ship, which is valuable for bulky or awkward consignments, but it comes with a reallocation of risk. By placing deck cargo at the charterer's or shipper's risk, the clause lets the owner accept the cargo without taking on the heightened exposure to weather damage and loss overboard that deck carriage entails.

The arrangement also affects liability and documentation downstream. Cargo carried on deck may fall outside some of the protections that apply to under-deck cargo, and the bill of lading usually records the deck stowage. The clause therefore has consequences not just between owner and charterer but for the cargo interests further down the chain who take the goods on those terms.

Owner's perspective

The owner is willing to carry deck cargo where the ship is suitable, but wants it clearly at the charterer's or shipper's risk, so that the owner is not liable for the extra perils that deck carriage involves. It relies on the clause to accept useful but awkward cargo without assuming responsibility for weather damage or loss overboard that under-deck cargo would not face.

The owner also wants the deck carriage properly documented and the ship's stability and lashing requirements respected, since badly secured deck cargo is a danger to the vessel. It therefore links the clause to the stowage and securing obligations and to the bill of lading notation, protecting both its liability position and the physical safety of the ship.

Charterer's perspective

The charterer values the ability to ship cargo on deck when holds cannot take it, but must weigh the risk allocation, since the clause typically leaves the deck cargo at its or the shipper's risk. For valuable or fragile goods that exposure can be significant, so the charterer considers insurance and whether deck carriage is really necessary for the consignment.

The charterer also has to manage the downstream effect, because cargo interests taking a bill of lading marked for deck carriage accept the associated risks, which must be reflected in the sale terms. It therefore coordinates the deck cargo clause with its sale contracts and insurance so that the heightened risk is allocated consistently along the chain rather than landing unexpectedly on one party.

Negotiation points

• Whether deck cargo is permitted, and for which commodities or pieces.
• Whose risk the deck cargo travels at, and the extent of the owner's exclusion of liability.
• The stowage, securing, and stability requirements for cargo carried on deck.
• The bill of lading notation recording deck carriage for downstream holders.

Common variations

• Deck cargo permitted at the charterer's or shipper's risk, with the owner's liability excluded.
• Deck carriage limited to specified commodities or a maximum quantity or height.
• A requirement for the owner's approval of deck stowage and securing arrangements.
• Deck carriage tied to a bill of lading notation and corresponding insurance.