Cargo shortage occurs frequently in bulk liquid cargo carriage due to various kinds of reasons. In cases of dispute over bulk liquid cargo shortage under a contract of carriage of goods by sea, generally carriers plead for exemption from compensation liability by raising various defences, while in the Chinese maritime judicial practice, different courts or even one court in different cases may have different attitudes towards such defences. Through research and analysis on 22 precedents rendered by various levels of Chinese courts regarding bulk liquid cargo shortage claims, this article aims to reveal the main viewpoints of Chinese courts on carriers' defence of liability exemption in such kind of claims, and gives carriers some advice on how to avoid or mitigate these claims. China is a very substantial importer of oil and in the enclosed document you will find a summary of the legal position on shortage claims and also advice on how carriers can protect themselves. A summary of relevant case law is also enclosed. The Association is grateful to Wang Jing & Co. for contributing to this article. Disclaimer The above article has been produced by or in co-operation with correspondents or other external sources and is reproduced here with their kind permission for general information purposes only. Reference is made to the Legal disclaimer governing use of this website.