Carrier not to Benefit Clause

The 'Carrier Not to Benefit Clause' is a protective clause in maritime cargo transport contracts or bills of lading, typically found in charter parties or bill of lading incorporation clauses. Its core meaning is that when cargo is lost or damaged, the carrier may not invoke exemptions, limitations of liability, or defenses granted to it under the transport contract against claims by the cargo interest (shipper, consignee, or bill of lading holder), especially when the carrier is also the cargo insurer or another beneficiary. It is commonly used in CIF or CFR trade, where the buyer or insurance company seeks to prevent the carrier from escaping liability through contractual terms after cargo damage caused by its own fault. Note: This clause does not apply automatically; it must be expressly written into the contract or bill of lading. It is the opposite of the 'Himalaya Clause,' which expands the carrier's protection, whereas this clause limits the carrier's benefit. Unlike 'carrier liability limitation,' this clause directly negates the carrier's right to exemption under specific circumstances. Foreign trade practitioners should ensure this clause is expressly included when chartering or booking space to protect the cargo interest's right to claim.