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Where the carrier must exercise due diligence to make the ship seaworthy, what does “seaworthy” mean?

The hull must be in sound condition, the vessel must be mechanically sound, equipped with charts, etc., and crewed by a properly trained crew.Β 

The holds must be fit and safe for the reception, carriage and preservation of the cargo and, in particular, the hatch covers must be tight and there must be no instability of the vessel through improper stowage. It has been held that the neglect to protect a water pipe in a hold from frost which could have been expected at the time of year showed lack of due diligence to make the vessel seaworthy.

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What will be the legal effect of a failure by the carrier to show that he exercised due diligence, etc.?

What does “exercise due diligence” mean?