Goods shipped from China are regulated by the Carriage of Goods by Sea Act (COGSA) for the ocean leg of the shipment, and by the Carmack Amendment to the Interstate Commerce Act for the inland leg. In this case, one bill of lading was used for both legs, and an accident occurred on the inland leg, damaging the cargo.
The Supreme Court ruled 6/21/10 that the stricter requirements of the Carmack Amendment do not apply to the inland portion of a shipment originating overseas under a single through bill of lading. The Carmack Amendment imposes stricter venue requirements (where suit may be brought) and a more burdensome standard of liability (strict liability as opposed to negligence). In this case, the parties agreed that the entire shipment from China to its ultimate inland destination here would be governed by Japanese law and must be brought in Tokyo District Court. The Supreme Court upheld that contractual arrangement.