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2nd Global Shipping Summit 23-24 November 2007, Shenzhen, China, Multimodal Transport : International Regulation of Lia PowerPoint Presentation
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2nd Global Shipping Summit 23-24 November 2007, Shenzhen, China, Multimodal Transport : International Regulation of Liability. D r. Mahin Faghfouri. Multimodal Transport: International regulation of liability. I. Commercial significance of multimodal transport

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2nd Global Shipping Summit23-24 November 2007, Shenzhen, China, Multimodal Transport: International Regulation of Liability

Dr. Mahin Faghfouri

multimodal transport international regulation of liability
Multimodal Transport: International regulation of liability

I. Commercial significance of multimodal transport

II. Attempts to develop a uniform legal regime at international level

III. Current international liability framework and problems

IV. On-going developments: UNCITRAL Draft Convention on the Carriage of Goods[Wholly or Partly] [By Sea]

1 commercial significance of m ultimodal transport
1. Commercial significance of multimodal transport

1. What is multimodal transport?

  • No single authoritative definition

• carriage by two or more modes of transport

• door-to-door transport

• one contract with one party assuming responsibility

throughout

• one document

  • terms also used: intermodal transport, combined transport

2. Growth in world containerized trade

growth in world containerised trade
Growth in World Containerised Trade

Source:Clarkson Research Services, Shipping Review Database, Spring 2007, Page 101.

containerised trade forecast
Containerised Trade: Forecast

Source: Drewry Shipping Consultant

ii attempts at establishing a uniform legal regime at international level
II. Attempts at establishing a uniform legal regime at international level

1.1980 UN Convention on Multimodal Transport

Not in force

2. 1992 UNCTAD/ICC Rules for Multimodal Transport Documents

- need to be incorporated into contract

- give precedence to mandatory law

iii current liability framework
III. Current liability framework:
  • No MT Convention in force
  • National/regional/subregional laws and regulations on multimodal transport
  • Localized loss: unimodal conventions on carriage by sea, road, rail, air (if applicable)
  • Standard term contracts

(e.g. FIATA FBL 92, BIMCO MULTIDOC 95)

problems
Problems

Liability varies depending on:

- stage of transport where loss or damage occur - applicable regime

- causes of loss or damage

Diversity of approach on key issues: e.g. liability basis, delay, limitation and time-bar

summary
Summary

• Multimodal transport is growing exponentially

• Current legal framework

• is fragmented and liability cannot be assessed in advance

• is too complex and may not be cost effective

• The proliferation of regional, subregional and national solutions further adds to complexity

iv on going developments uncitral draft convention on the carriage of goods wholly or partly by sea
IV. On-going developments:UNCITRAL Draft Convention on the Carriage of Goods [Wholly or Partly] [By Sea]

• application tosea transport and multimodal transport [MT] including a sea leg

• based on maritime concepts and existing maritime liability regimes,

- but with significant changes in structure, substance and approach

• it is extremely lengthy and complex (100 articles) only 3 arts. relate to MT: art. 1(1), 26 and [62(2)]

(It is expected that a new convention will be adopted in 2008)

suitability of the draft convention to govern modern multimodal transport
Suitability of the Draft Convention to govern modern multimodal transport?

Central questions:

  • one party responsible throughout?
  • do the same liability rules apply throughout?
1 one party responsible throughout
1. One party responsible throughout?

Period of responsibility: receipt to delivery(art.11)But:

- time and location of receipt/delivery may be contractually determined

Also:

Carrier issuing transport document may not be responsible:

- for parts of the carriage (art.12)

- for functions such as loading, stowage and discharge (art. 14(2))

1 one party responsible throughout1
1. One party responsible throughout?

Thus, carrier mayonly be responsible:

- During the period of responsibility as contractually defined

- for parts of the multimodal transport, and

- for some of a carrier’s functions

Cargo interests may need to sue another carrier

Particular problems for MT shipper/consignee

2 do the same liability rules apply throughout
2. Do the same liability rules apply throughout?

Liability system:“modified network system”

If loss is localized:

-Draft Convention gives precedence to certainmandatory provisions of any international convention applicable to the segment of transport where loss or damage occurred

Also:

- A a Contracting State may apply its mandatory national law by means of declaration

thus applicable rules vary
Thus, applicable rules vary

If loss is localized

• provisions on liability, limitation of liability, time for suit of any applicable international unimodal convention or national law apply

• Plus remainder of Draft Convention

slide16
And

For non-localized loss or

where no convention or national law applicable

• Maritime liability regime of Draft Convention applies

• Irrespective of how short the sea leg and how long the land leg may be

conclusions

Conclusions?

Improvement of status quo?

Thank you

President@immta.org

for further information see
For further information see:

UNCTAD Documents: (www.unctad.org/ttl/legal)

- Commentary on Draft Instrument on Transport Law (UNCTAD/SDTE/TLB/4)

- Multimodal Transport: The Feasibility of An International Legal Instrument (UNCTAD/SDTE/TLB/2003/1)

- Implementation of Multimodal Transport Rules (UNCTAD/SDTE/TLB/2 and Add.1)

UNCITRAL Documents: (www.uncitral.org - Working Group III)

- Preparation of a Draft Instrument on Carriage of Goods by Sea

A/CN.9/WG.III/WP.21, 32, 36, 39, 56 & 81(2007 draft)

- IMMTA submission: A/CN.9/WG.III/WP.97

See also: Mahin Faghfouri, International Regulation of Liability for Multimodal Transport, WMU Journal of Maritime Affairs, April 2006.