Transcript Rotterdam Rules: Between Old Problems and New Solutions

Rotterdam Rules: Between Old
Problems and New Solutions
Jana Rodica
May 2009
Introductory outline
• General Introduction
Slovenia:
- bound by the 1924 Hague Rules
- Maritime code provisions regulating carriage of goods by
sea are based on the Hague - Visby rules as amended by
the 1979 Protocol
- The Regime adopted is in part obsolete - not in conformity
with of today’s maritime trade
Need for a new Regime
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Unification of Transport Laws
Liability of the Carrier
Documentary Problems
Nationalistic Reflex
Exoneration Clauses
Electronic Communication
Major Changes brought by the
Rotterdam Rules
Scope of Application:
• Multimodal (or Door-toDoor) Coverage
International Containerized Growth
1990-2008
Million TEUs
180
160
140
120
100
80
60
40
20
Figure 1-: rapid growth in containerized shipping.
Source: Drewry Shipping Consultants, 2006 and 2007.
Source: Drewry Shipping consultants 2006 and 2007
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
0
Volume contracts
• The rules primary establishes mandatory liability both for
carriers and shippers
But:
“Volume contracts are exempt from mandatory application of
the Rules”
Therefore: most of provisions could be modified or
contracted out
Volume Contracts
• Defined as:
“contract of carriage for the carriage of a specified quantity of goods in a
series of shipments during an agreed period of time” (Ocean Liner
Service Agreements)
Under Art. 80 Volume Contracts cannot derogate from
• - carriers obligations under Art. 14 to exercise due diligence
a) to make the ship seaworthy
b) to crew, equip and supply her properly
• under Art. 29 –(shipper’s obligation to provide information,
instructions and documents)
• under Art. 32 – (relating to dangerous goods)
• Potential Consequences:
- Volume contracts between parties of unequal bargaining power
• Position of European Shippers Council – March 2009
3. Balance of Risk Between
Carriers and Cargo Interests
• The Error in Navigation Defence – has been
deleted
• Continuing Obligation of Seaworthiness
• Liability for Delay
4. 3. Balance of Risk Between
Carriers and Cargo Interests
• Higher Limitation
Amounts
- Limits of liability under
different Regimes
- one new limit: Economic
loss due to delay - 2,5x
freight
LIMITS OF LIABILITY IN THE
CARRIAGE BY SEA REGIMES
HGR 1924
Per
Package/
Unit
Per Kilo
100 £
HVR 1986
666.66 SDR
2 SDR
HGR: Hague Rules 1924
HVR :Hague – Visby Rules 1968
HMR: Hamburg Rules 1978
RTR: Rotterdam Rules
HMR 1978
835 SDR
2. 5 SDR
RTR 2008
875 SDR
3 SDR
Expanded Shippers’ Obligations
and Liabilities
• Shipper’s obligation to provide information,
instructions and documents
• Liability in respect of breach of obligations under
Art. 27 and Art. 29 based on fault
• Liability in respect of breach of obligations under
Art. 31 and Art. 32 is strict and the burden of
proof is on the carrier
Maritime Performing Parties
“Any person other than the carrier that performs any
of the carrier’s obligations under a contract of
carriage”
• The carrier is liable for the acts or omissions of a
performing party which may give rise to a breach
of the carrier’s obligations under the convention
Electronic Transport Records
Today most documents systems are still paper-based:
- Problems with paper – based documents
Electronic systems can:
- Speed up changes
- Reduce errors
- Result in cost saving (e.g. perishable goods)
Main Concerns:
- All parties in each transaction need to be included
- Security concerns
- Concerns related digital signatures
Comments and
Recommendations
1. Conclusion
2. The Big question:
Shall Slovenia adopt the Rotterdam Rules?
a) maintain the Status Quo
or
b) adopt the Rotterdam Rules
The End
“SS Rotterdam”
a hotel ship