\u201cAfter the sharpest decline in more than 70 years, world trade is set to rebound in 2010 by growing at 9.5%”<\/em> according to WTO economists. This is clearly happy news for a market which has borne recent witness to a global economic crisis which caused the largest contraction in the volume of global trade since World War II.<\/p>\nA recovery at this rate would mean that worldwide levels of trade will soon overtake the heady peaks of 2008. Even during the global recession and correlative slowing of international trade, over eight billion tons of cargo is being transported worldwide annually by sea.<\/p>\n
Transpose the existing volume of shipments and anticipated market growth onto the backdrop of a despondent freight market and an ageing global fleet, and some might say that, in the current climate, the incidence of cargo claims can only increase.<\/p>\n
International Cargo Conventions – Background<\/span><\/strong><\/p>\nHistorically, trading counterparties negotiated all commercial terms in bills of lading or equivalent documents and it was left to traders’ commercial nous and experience to determine who suffered the loss when a cargo claim arose. However, in the early 20th Century, the growing bargaining strength of cargo carriers meant that bills of lading contained increasing numbers of exclusions of liability, creating a trading environment which was disproportionately biased to the carrier.<\/p>\n
To redress this balance, in 1924 the first International Cargo Convention was enacted in the form of the Hague Rules<\/em>. The Rules set down in clear terms the rights and liabilities of cargo owners and shipowners in relation to the international carriage of goods by sea. Some 50 countries signed up to the Hague Rules<\/em>, including the USA and UK.<\/p>\nIn 1968, the Visby Protocol<\/em> to the Hague Rules<\/em> was enacted, to further develop the international cargo liability regime. These “Hague-Visby”<\/em> Rules remain in force in countries representing two thirds of world trade. Many developed countries became signatories to the Hague-Visby Rules<\/em> and some of the world’s major trading nations incorporated the Rules fully or partly into their national legislation, including China and Canada.<\/p>\nYet more amendments were made to the international regime by the introduction of the Hamburg Rules <\/em>in 1978, an entirely new Convention, drafted by UNCITRAL, the object of which was to further redress and equalize the balance of rights and obligations between the carrier and cargo owner.\u00a0However, the Hamburg Rules<\/em> did not come into force until 1992 and then only 34 countries ratified the Rules.<\/p>\nThere were, then, by 1978, three international cargo regimes, entered into by a large number of the world’s biggest trading nations. In addition, a number of other countries had enacted various parts of one or other regime into their national legislation.\u00a0The resulting patchwork of cargo conventions not only gave rise to inconsistent and overlapping regimes, but also caused a deeply unsatisfactory lack of certainty which strikes at the very heart of commercial contracts.<\/p>\n
the Rotterdam Rules<\/span><\/strong><\/p>\nSince 1978, huge changes have taken place in the international shipping and trading arenas, for example the increased volume of containerized cargoes, advancements in information technology and the advent of electronic transactions.<\/p>\n
In a dynamic industry which strives for clarity, there was clear need for reform and, in September last year, the \u201cRotterdam Rules\u201d<\/em> were opened for signature. The Rules are designed to respond to the needs of the modern industry and to achieve worldwide uniformity in this area of law. But what significance does this latest regime hold for the international grain, feed and general produce trade?<\/p>\nImpact<\/span><\/strong><\/p>\nIf brought into force, the Rules will significantly increase the liability of carriers and will arguably herald a dawn of increased protection for cargo interests. The Rules regulate a larger period of activity than the earlier conventions; from the point the carrier receives the goods to the point of delivery, to include multimodal carriage. Accordingly, the Rules apply \u201cdoor-to-door\u201d<\/em> and have been described as a \u201cmaritime plus\u201d<\/em> instrument.<\/p>\nIf brought into force, the Rules will increase limits of liability, extend the carriers’ obligation to provide a seaworthy vessel to the entire voyage and potentially render carriers liable for the actions of so-called\u00a0 \u201cmaritime performing parties\u201d<\/em>, including sub-carriers, stevedores and terminals. Further, carriers will no longer be able to defend a claim arising from the negligent navigation of the ship, and cargo owners may have a choice of jurisdictions in which to bring a claim.<\/p>\nThe potential increase in liability for carriers will arguably result in more claims being brought against them and higher premiums for P&I cover. This is obviously important news for any trader involved in the international shipment of cargo.<\/p>\n
What Next?<\/span><\/strong><\/p>\nThe Rules will enter into force 12 months after ratificationby at least 20 states. At latest count, 21 countries have signed up to the Rules. The UK Government remains undecided as to whether to sign the Rules and will enter into a full consultation exercise this year. The USA has signed up to the Rules and other major trading nations are considering their positions.<\/p>\n
In the ongoing struggle to balance the interests of cargo owners against the liability of carriers, it remains to be seen whether the Rules will achieve sufficiently widespread acceptance to displace the existing regimes and achieve uniformity of the law. However, the indisputable positive is that the Rules represent a real opportunity to establish a clear, harmonized global regime suitable for the modern maritime transport industry.<\/p>\n
The content of this article is intended to provide a general guide to the subject matter. Specialist\u2019s advices should be sought about your specific circumstances.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"The Rotterdam Rules \u03b5\u03af\u03bd\u03b1\u03b9 \u03b7 \u03bd\u03ad\u03b1 \u03c3\u03c5\u03bd\u03b8\u03ae\u03ba\u03b7 \u03c0\u03bf\u03c5 \u03c0\u03c1\u03bf\u03c3\u03b4\u03b9\u03bf\u03c1\u03af\u03b6\u03b5\u03b9 \u03c4\u03b9\u03c2 \u03b5\u03c5\u03b8\u03cd\u03bd\u03b5\u03c2 \u03b3\u03b9\u03b1 \u03cc\u03bb\u03b1 \u03c4\u03b1 \u03b5\u03bc\u03c0\u03bb\u03b5\u03ba\u03cc\u03bc\u03b5\u03bd\u03b1 \u03bc\u03ad\u03c1\u03b7 \u03c3\u03c4\u03b7\u03bd \u03b5\u03ba\u03c4\u03ad\u03bb\u03b5\u03c3\u03b7 \u03c4\u03b7\u03c2 \u03bc\u03b5\u03c4\u03b1\u03c6\u03bf\u03c1\u03ac\u03c2 \u03c6\u03bf\u03c1\u03c4\u03af\u03c9\u03bd, \u03bc\u03b5 \u03c3\u03ba\u03bf\u03c0\u03cc \u03c4\u03b7\u03bd \u03b5\u03bd\u03b1\u03c1\u03bc\u03cc\u03bd\u03b9\u03c3\u03b7 \u03c3\u03b5 \u03bc\u03b9\u03b1 \u03bd\u03ad\u03b1 \u03c6\u03ac\u03c3\u03b7 \u03c4\u03b7\u03c2 Multimodal \u03bc\u03b5\u03c4\u03b1\u03c6\u03bf\u03c1\u03ac\u03c2, \u03b5\u03bc\u03b5\u03af\u03c2 \u03c3\u03c4\u03b7\u03bd Greenwoods \u03b8\u03b1 \u03c0\u03b1\u03c1\u03b1\u03ba\u03bf\u03bb\u03bf\u03c5\u03b8\u03bf\u03cd\u03bc\u03b5 \u03c4\u03b9\u03c2 \u03b5\u03be\u03b5\u03bb\u03af\u03be\u03b5\u03b9\u03c2 \u03ad\u03c9\u03c2 \u03cc\u03c4\u03bf\u03c5 \u03c4\u03b5\u03b8\u03b5\u03af \u03c3\u03b5 \u03b5\u03c6\u03b1\u03c1\u03bc\u03bf\u03b3\u03ae \u03b7 \u03c3\u03c5\u03bd\u03b8\u03ae\u03ba\u03b7 \u03ba\u03b1\u03b9 \u03b8\u03b1 \u03c3\u03b1\u03c2 \u03b4\u03af\u03bd\u03bf\u03c5\u03bc\u03b5 \u03c4\u03b9\u03c2 \u03b1\u03c0\u03cc\u03c8\u03b5\u03b9\u03c2 \u03bc\u03b1\u03c2 \u03bc\u03ad\u03c3\u03c9 \u03c4\u03bf\u03c5 […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[],"_links":{"self":[{"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/posts\/203"}],"collection":[{"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/comments?post=203"}],"version-history":[{"count":0,"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/posts\/203\/revisions"}],"wp:attachment":[{"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/media?parent=203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/categories?post=203"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/greenwoods.org\/wp-json\/wp\/v2\/tags?post=203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}