What is COGSA?

A: COGSA stands for Carriage of Goods by Sea Act. It is a federal U.S. government statute regulating the rights and responsibilities between cargo shippers and ship owners on ocean transports into and out of the country. COGSA sets liability amounts that ship owners must pay to the cargo owners when the property is damaged on the vessel. The issue becomes complicated when there are multiple parties involved, including charterers and ship operators.