Economic Analysis On The Scope Of Damages In Carriage Of Goods By Sea In CMC

International carriage of goods by sea plays an important role in international trade of goods. Because international carriage of goods by sea may face higher risk than land transport of goods and air cargo tariff, as a result, the possibility of damages to cargo in international carriage of goods by sea becomes higher than the other two modes of transportation. International contract of carriage of goods by sea, same as common contract, damages compensation seems to be the most important, basic relieve way and the most frequently used form for breach of contract.While the carrier does not fulfill his duty of international contract of carriage of goods by sea perfectly, the claims for damages from opposite party of the contract will be on the way, in these cases, the measurement of determining damage in carriage of goods by sea proves to be the key point.As measurement of determining damage in carriage of goods by sea plays an important role in solving damages dispute not only for carriers but also for claimers, this thesis takes the scope of damages in carriage of goods by sea in Maritime Code of the People’s Republic of China (CMC) as research target. Cost and benefit method is the major used analysis means in this thesis as well as efficient breach is the major standard to measure the efficiency of carriers’breach of contract under different indemnity forms. On basis of above study, the author has a research on the interrelated legal provision in CMC, then gives some amending suggestions.This thesis is consists of three sections exclude foreword and conclusion.The first section is concerned with the basic definitions of carrier in CMC, law and economics as well as damages of cargo.The second section focuses on the influence on carriers’breach of contract, claimers’ reliance invest and judicial costs under different indemnity regulations with cost and benefit method.The third section is basic on the second section, firstly, this section demonstrates the scope of damages and calculating way of breach contracts in General Provisions of the Civil Law, secondly, discusses the the scope of damages and calculating way of breach contracts in Contract Law, thirdly, analyses indemnity of the loss of or damages to the goods and delay in delivery to find inadequacies in CMC, lastly, the writer give some amending suggestions combined with the latest international maritime legislation.