Excavating Egyptian law

Hisham Eldib of Eldib Advocates in Alexandria, Egypt, looks at the carriage of goods by sea and the liabilities of the carrier under Egyptian law

THE Commercial Maritime Code was first promulgated in Egypt in November 1883, covering all maritime matters. It largely reproduced all relevant articles from the Napoleonic French Code De Commerce and remained unchanged for more than a century, although complemented from time to time by the International Maritime Conventions to which Egypt has adhered since the 1940s. Ten years ago, however, the old code was eventually replaced by a new one comprising 400 articles. This new code, promulgated in April 1990, became effective from November 2, 1990.

As regards bills of lading contracts and carriage of goods, the new law very closely follows the Hamburg Rules. Egypt is one of the signatory states to this convention, which became applicable in Egypt in November 1997. Egypt had previously acceded to the Hague Rules, which came into force in Egypt in May 1944, and then adopted the Hague-Visby Rules, which came into effect in June 1983.

Under the Egyptian constitution, international conventions, once adopted, become binding on Egyptian courts and apply by force of law in the same way as national legislation. Therefore, the Hamburg Rules, as a single document, will apply whenever any of the cases stipulated in Article 2 of the said convention exist. The domestic code, therefore, covers only internal shipments between one or more Egyptian ports. Egyptian legislation also governs all conservatory or executory measures to be taken in Egyptian ports against ship or cargo, relating to marine cargo claims, irrespective of the substantive rules of law applying to the subject matter.

Judicial case law maintains that there is an obligation incumbent upon the carrier in bill of lading contracts to effect complete and safe delivery of the cargo at destination. Consequently, whether under the Egyptian code or the Hamburg Rules, violation of the said obligation is established simply by the fact that the result did not materialise, without the need to prove any fault or negligence on the part of the carrier.

The normal practice is for the courts to award damages on an invoiced value basis. If the claimant can prove that it has effectively suffered loss of profits, calculated on arrived sound market value at port of destination, this may be added to the actual losses.

Interest on damages awarded by the courts is fixed by law at five per cent per annum, running in most cases from the date of the final court decision. Financial judgements are usually expressed in Egyptian currency, because there is still some uncertainty as to the award of damages in foreign currencies.

Package limitation of liability has always been recognised in Egypt, either under the Hague/Hague Visby Rules or under the Hamburg Rules. First instance judgements, with very limited exceptions, are open to appeal within forty days, and further appeal to the Court De Cassation, on points of law only, within sixty days.