A more thorough explanation:

The Carriage of Goods by Sea Act (COGSA) is a federal statute that regulates a carrier's liability for the loss or damage of ocean cargo shipped under a bill of lading. This law was enacted in 1936 and defines the rights and responsibilities of both the issuers and the holders of ocean bills of lading.

COGSA is the domestic enactment of the international convention known as the Hague Rules. It allocates the risk of loss for cargo damage that occurs during ocean transportation to or from the United States under contracts evidenced by bills of lading and similar documents of title. This law is essential in commercial admiralty and governs over $200 billion worth of American foreign commerce annually.

For example, if a shipping company is transporting goods from China to the United States and the cargo is damaged during the voyage, COGSA would determine the liability of the carrier for the loss or damage of the goods. The law also covers delays in the delivery of the cargo.

Another example would be if a company in the United States is exporting goods to Europe and the cargo is lost at sea. COGSA would determine the liability of the carrier for the loss of the goods and the compensation that the company is entitled to receive.

Overall, COGSA is an important law that protects the rights of both shippers and carriers in the transportation of goods by sea.