International Transport Law

Presented by: Upendra Raj Dulal

 Transportation of Goods
• Carriage of goods is, by law, the movement of goods by land, sea, or air.
• This includes packaging, storage, transport, unloading, and distribution
and the carriage of goods can be unimodal or multimodal.
a. Unimodal refers to the carriage of goods when only one mode
of transport is used.
b. Multimodal carriage of goods refers to a situation where a
combination of methods is used.
• Unimodal international transport is regulated by international
conventions e.g. the Warsaw Convention, the Hague-Visby Rules,
and Convention relative au contrat de transportinternational des
merchandises de route.
• Carriage is often the final step in the contract for the sale of goods, the
shipper is often a freight vendor, and the final consignee is also the
recipient of the freight.
• Risk and title to the goods will often change during the contract of
carriage.
 Contract of Carriage

• A contract of carriage may be defined as an agreement that is concluded

between a carrier and a shipper for the carriage of goods by sea, in
which a carrier, against the payment of freight, undertakes to deliver
goods from one port to another.
• While concluding a contract of carriage, the negotiations are made by
the shipper and the carrier, and the terms and conditions are established
by the above-mentioned parties.
• In general, the contract of carriage is executed with the carrier by either
the seller or the purchaser, depending on the terms of the sale
agreement.
• The most common types of contracts of carriage are a charter party, bill
of lading, sea waybill, and air waybill.
 Bill of Lading

• The term ‘Bill of Lading’ (BOL, also referred to as B/L) is of ancient English origin and
literally means ‘list of cargo’.
• It is a document issued by the Carrier or its agent to the shipper of goods as a
contract of carriage of goods. It is also a receipt for cargo accepted for transportation.
It must be presented for taking delivery of the goods at the destination.
• The B/L serves as a proof of ownership or title of the cargo.
• It is one of the essential legal documents generated during the shipping of overseas
bound cargo and acts both as a contract as well as a receipt between the shipper and
the carrier.
• Essentially, a BOL serves as a receipt for goods that change hands from the exporter
to the carrier.
• It also acts as a contract between the shipper and the carrier for the carriage of
goods, particularly in the absence of a separate contract to that effect.
• A bill of lading is issued by the carrier and, in doing so, he acknowledges that the
goods have been received from the shipper/exporter in good condition.
• It will have 3 copies; each of them is for ship owner, goods
owner(shipper) and the consignee(the goods receiver).
• Lord Blackburn says, “a bill of lading is a writing, signed on
behalf of the owner of the ship in which goods are embarked,
acknowledging the receipt of the goods and undertaking to
deliver them at the end of the voyage, subject to such conditions
as may be mentioned in the bill of lading.
• 1907 Halsbury Law of England: A bill of lading is a document
signed by the ship owner or by the master or other agent of the
ship owner which states that certain specified goods have been
shipped in a particular ship, and which purports to set out the
terms on which the goods have been to and received by the
ship. After the signature it is handed to the shipper who may
either retain or transfer it to other person.
• Railways Act, 2020 (1963): Section 2(e), Bill of lading” means
evidence as prescribed indicating the payment of fare as
prescribed to transport animals or goods by a train.
 Functions of the Bill of Lading
• Evidence of contract between shipper and
carrier - Proof that there is an agreement
between parties.
• A receipt that the goods have been loaded -
Usually the ship's captain verifies the receipt
and forwards it to the seller's agent.
• Document of the title of goods - The Buyer
receives the goods by verifying the title of
goods at the port.
 Characteristics of bill of lading (B.L.)

• B.L. is receipt of goods shipped or loaded in the ship.

• B.L. is contract document of carriage of goods.
• B.L. is a document of the title of goods specified.
• B.L. deals with the rights and liabilities of the agreed parties.
• In the bill of lading
i. Date of receipt of goods
ii. Condition of goods
iii. Quantity of goods
iv. Special marks
v. Loading port& destination port
vi. Time to deliver goods are mentioned.
 Contents of Bill of Lading (BL)

• The exact contents of a BOL will vary on a case-to-case basis, depending on the type
of BOL and/or the shipping and business terms. General information's that are likely
to find in a typical BOL are:
• Name and details of the shipping line
• Shipping bill number and date
• Name and address of the shipper as well as the receiver, along with necessary
contact details, plus a mention of the date to facilitate tracking of the shipment
• Purchase order number or similar reference number; this makes it easier to cross-
refer the agreed terms and conditions (E.g. the delivery terms, incidence of expense
etc.)
• Special instructions – this is an important section as it has all the extra service
requests, terms and conditions, and reminders for the carriers
• Description of the goods in the shipment, giving details of the units, their dimension,
weight, content details etc.
• Packaging details, which discloses information of the packaging and use of cartons,
crates, pallets, and drums used for shipping
• Freight classification, which determines the cost of the shipment
• Indication of hazardous shipment, if applicable
• Signature and initials of the concerned officer
 Types of B/L
• Primarily, there are two types of Bill Of Lading used.
(1) Negotiable Bill Of Lading
• A negotiable bill of lading is transferable to a third party. It
instructs the carrier to deliver the goods to whosoever is in
possession of the original endorsed bill of lading. If the person
receiving the goods does not carry the original document, the
cargo won't be released from the port.

(2) Non-negotiable Bill Of Lading

• A non-negotiable bill of Lading is marked for for specific buyers,
consignees, receivers, and agents or to whomsoever the goods
may be shipped. It does not designate the possession of the
goods by itself, so it must be accompanied by other
documentation procedures. In order to authenticate the
transaction, the person or entity to whom the bill of lading has
been assigned have to verify their identity at the time of receiving
the goods.
 Classification As Per The Method Of
Execution
• The BoL is classified into two major categories based either on how the transfer is
executed or on the basis of mode of operation.

A. Straight Bill Of Lading

• It is utilized where the products have already been paid for or payment is not needed.
Under this form of a bill of lading, the company that is shipping the products will
deliver the shipment to its consignee once identification has been presented. With this
type of bill of lading, it states that the items are consigned to a person that has been
specified and this is not negotiable.

• A straight bill of lading is a document whereby the seller agrees that a certain
transportation will be utilized to ship the goods to a specified location, and then a
specific party is going to be assigned the bill. Everything is outlined and
straightforward, and these factors cannot be changed. A straight bill of lading will also
provide information regarding the product or products, including the type, quantity,
and quality. Moreover, when the items have been delivered to the destination, the bill
of lading also acts as a receipt. Due to the fact that the bill of lading is assigned to a
specific person or party, it cannot be reassigned to another party and it is simply not
negotiable.
B. Open Bill Of Lading
• It falls under the category of negotiable type as the
consignee can be changed using the assigned
party's signature as required. Generally, it is used
when the item is ordered in bulk but redistributed
in smaller quantities through multiple buyers and
sellers through arrangements like an auction.
• For instance, agricultural products are shipped in
large quantities, and reselling is done to multiple
parties.
C. Bearer Bill Of Lading
• A bearer bill of lading is a type of negotiable bill of
lading that allows the carrier or holder of the freight to
deliver it to the bearer.
• For example, if a company ships a container of goods to
another country, they will receive a bill of lading from the
carrier. If the bill of lading is a bearer bill of lading, the
company can transfer ownership of the goods to
someone else simply by giving them the bill of lading.
The person who holds the bill of lading can then claim
the goods from the carrier.
• Bearer bills of lading are important because they allow
for the easy transfer of ownership of goods during
transportation. They are often used in international
trade where goods may change hands multiple times
before reaching their final destination.
 C. Order Bill of Lading
• It is made out to a certain person and it can be transferred
by delivery and endorsement of the bill.
• This means that the ownership of the products under the
Bill of Lading/Airway bill can be transferred to another
party. This is the opposite of a straight bill of lading.
• Order bills of lading have two functions in global trade
transactions. They stop the cargo being delivered to
unwanted parties.
• They also enable the consignee to transfer the title of
goods to another party with endorsement and delivery of
the original bill of lading.
 Classification As Per The Method Of
Operation
A. Clean Bill of Lading
• When the shipper or their agents find the goods to be in good condition and as per the quantity
mentioned, they provide a Clean Bill of Lading. (A clean bill of lading covers goods that are
received in an acceptable condition.)
B. Claused Bill of Lading
• If the shipper or their agents are not satisfied with either the conditioning of the cargo like torn
packaging, physical damage, or the quantity is less, they issue a Claused Bill Of Lading. (A claused
bill of lading covers goods that are received in a damaged condition.)

C. Container Bill of Lading

• It states that the cargo is being moved from its port of origin towards another port in a secure
container.
D. Master Bill of Lading
• It is an extensive document encompassing the terms of transportation, the details of the shipper,
consignor, consignee, and the person responsible for possessing the goods.
E. Received for Shipment Bill of Lading
The carrier acknowledges the validity of the contract before loading the freight into the shift using
it.
F. Stale Bill of Lading
If the date for shipment is missed by at least 21
days, Stale BoL is issued.

G. Through Bill of Lading

• It is issued when the cargo is to be transported
across the seaways and inland routes through a
multi-route/ multi-mode process.

H. Multimodal Transport Through Bill of Lading

• It is used when the land and oceanic modes of
transport are included.
I. Charter Party Bill of Lading
• It serves as a document of agreement between the charterer and shipping
vessel owner.

J. House Bill of Lading

• It is also called Forwarder's Bill of Lading as it is issued by a non-vessel or
non-ocean transport company that acts as an intermediate firm to be used
by suppliers when receiving the shipment.
• goods are shipped through a freight forwarder for Less than Container Load
(LCL) or less than truckload (LTL) shipments.

K. Blank Back / Short Form Bill of Lading

• It is used when the original BoL fails to mention the terms and conditions
for shipping.

L. Surrender Bill of Lading

• It is provided to the bank for releasing the documents under a defined term
for negotiating the bank's receipt.
 Charter Party
• Charter party bills of lading (CPBLs) are specialized bills of lading that operate
within the framework of a charter party agreement. Unlike conventional bills of
lading, CPBLs are specifically tailored for commodity or bulk shipment cargoes.
To engage in a charter party shipment, the vessel owner and the charterer enter
into a contract that outlines the legal terms and conditions of the arrangement.
• Charter parties are contracts for the use or hire of a vessel. They are used or
various purposes. The charterer may intend to carry cargo on his own behalf, or
alternatively he may sub-charter the vessel or employ the vessel as a general
ship.

• In each case, a bill of lading is generally issued when the goods are shipped. The
bill of lading usually contains provisions regarding terms and conditions of the
carriage under it which often contradict the terms of the charter party and gives
rise to a number of problems.

• There are three main types of charter parties: (a) voyage charter parties, (b) time
charter parties and (c) bareboat or demise charter parties.
 Voyage Charter Parties
• A voyage charter is the hiring of a vessel or a certain space, from port of loading to
port of discharge. The payment to the ship owner is known as freight.
• The voyage charter is a contract (voyage charter party) between the shipowner
and the charterer wherein the shipowner agrees to transport a given quantity of a
shipment, using a pre-nominated vessel for a single voyage from a nominated port
(say X) to a nominated port (say Y), within a given time period.
• Under a voyage charter party, the charterer is only responsible for the goods, such
as its insurance, while the ship owner is responsible for providing a seaworthy
vessel, including bunkers, crew, the vessel’s insurance and provisions. The shipping
route is fixed by the ship owner, who will decide on the port and direct the vessel
where to go.
• In container shipment, goods are shipped either at full container load (FCL) or at
less container load (LCL). There are 2 types of standard containers: 20-foot
container and 40-foot container.
• For goods that are shipped in a FCL, a freight forwarder can deal directly with the
ship owner, buying a container space on the vessel. The freight forwarder will pay
the freight to the ship owner before the containers are loaded up. In this situation,
a voyage charter party is signed between the freight forwarder, who is the
charterer and the ship owner, who is the carrier.
• In this type of charter, the vessel must be in the position
that the owner specified when the charter was
concluded & the vessel must, without undue delay, be
directed to the port of loading.
• At the port of loading, the charterer must deliver the
agreed cargo.
• The cargo must not be dangerous cargo unless
otherwise agreed.
• The cargo must be brought alongside the ship at the
loading port & must be collected from the ship side at
the port of discharge.
• Mainly with the bulk cargoes, the charterer often
undertakes to pay to load and discharge & often clauses
of FOB (Free on Board) are met.
• Payment of voyage charters can be done in two methods – on a per-ton
basis, or on a lump-sum basis.
• The per-ton basis involves paying the owner for every ton of cargo or
freight transported on the vessel. This is preferred when the cargo
tonnage is considerably lower than the gross maximum cargo tonnage of
the vessel.
• On the other hand, when a higher weight of the cargo is carried, it is
advisable to pay on a lump-sum basis. The shipowner must ensure that
the tonnage carried on board the vessel is within the acceptable limits of
the ship. This includes checking the tonnage of on-deck cargo, and the
various load lines of the vessel.
• There are some important terms used in a contract agreement, that lays
out the time-based rules to be followed for the duration of the contract.
• Laytime refers to the time that a charterer is allowed to complete the
loading and unloading process at a port of call. Since the owner pays
duties and berthing charges at the port, they expect the charterer to
hasten the process.
• In case the charterer exceeds the laytime laid out in the contract, he is
obliged to pay a penalty known as demurrage. This covers the extra
costs incurred by the shipowner owing to the delay by the charterer.
• It can be of the following types:
• Immediate – which is carried out within
weeks of the contract agreement and the
agreed freight rate is called the spot rate.
• Forward – which is scheduled & fulfilled at the
agreed time in the future, for example in say
three months.
• Consecutive – which refers to several same
consecutive voyages.
 Time Charter Party

• A time charter is a time-bound agreement, as opposed to a

voyage charter.
• The shipowner leases a vessel to a charterer for a fixed period
of time, and they are free to sail to any port and transport any
cargo, subject to legal regulations.
• Although the charterer controls the ship, the maintenance of
the vessel still falls under the purview of the owner. They are
responsible for ensuring that the vessel meets internationally
accepted maritime standards, throughout the course of the
agreement. They regularly employ marine surveyors to prepare
reports on the seaworthiness of the vessel and make repairs as
and when required. The owner will face legal action in case the
vessel is found to have some major problem.
• The time charter agreement can span anywhere from a few
days to a few years. This is a long-term agreement that works on
a single rate of payment known as the freight rate.
• Time not included in the final payment is known as off-
hire hours. For instance, if a vessel is slowed down
because of poor weather that could not have been
predicted, the extra time spent is not included in the
final time count.
• Similarly, if some form of damage occurs and repairs
need to be carried out, the duration is considered to
be off-hire. Certain clauses can be inserted in the
agreement, that allows for a fixed number of off-hire
hours. Beyond this, the charterer is charged for delays.
• Briefly put, a time charter involves leasing a vessel for a
fixed period, on a per-day rate, where the charterer is
free to use the vessel. The owner only looks after
maintenance-related cost.
 Types?
• Period Time Charter : is for a period of time,
usually several months or years
• Trip Time Charter (TCT): is for a single voyage
only- but under time charter conditions
• Bareboat Charter or Demise Charter: the
charterer takes over almost all the
responsibilities and costs of the shipowner,
sometimes even including the ship’s crew cost.
 Bareboat or demise Charter Party
• If ship owners lease the ship with ship owner’s crew members it is called
Demise Charter. In such a situation, the charterer pays all expenses for
the operation and maintenance of the vessel. Officers and crew become
servants of the charterer.

• A demise charter whereby the charterer has the right to place its own
master and crew on board of the vessel is called a bareboat charter.

• If ship owners lease the ship without crew members it is called Bareboat
Charter. In this type of charter, the charterer or lessee is viewed under the
law as the owner. Bareboat Charterers is the one who stands in the place
of the ship owner for the voyage or service contemplated and bears the
owner’s responsibilities, even though ship owners remains the legal
owner of the ship. It may be chartered or leased for a Voyage or a Time
Charter.
• It has been explained in the Singapore High
Court decisions of Pan United Shipping Pte
Ltd v. Cendrawash Shipping Pte Ltd, that
whether a ship has been demised depends
upon whether or not the shipowner has
parted with the whole possession and control
of the ship, and to this extent, that he has
given to the charterer a power and right
independent of him and without reference to
him to do what he pleases with regard to the
captain, the crew, and the management and
the employment of the ship.
 Additional Info – Types of Charter Party
1. Full charter:
• In this type of contract, the shipper charters the entire vessel, allowing them
exclusive use of the ship’s capacity for their cargo.
2. Split charter:
• Under a split charter, the shipper secures an unspecified portion of the ship’s
loading space, which provides flexibility in accommodating varying cargo
volumes.
3. Space charter:
• This type of charter contract grants the shipper access to a specific cargo hold or
specialized space within the vessel, such as a refrigerating hold for perishable
goods.
4.Time charter:
• The shipping company leases the entire ship to the shipper for a predetermined
period, offering greater control and flexibility in scheduling shipments.
5. Bare boat charter:
• In a bare boat charter, the shipper gains exclusive possession of the vessel
without the crew, provisions, or fuel.
 Characteristics

• a. Parties: The charter party identifies the parties to the agreement, including the
shipowner, the charterer, and any intermediaries involved.
• b. Vessel: The charter party identifies the vessel to be chartered, including its specifications,
tonnage, and any other relevant details.
• c. Charter period: The charter party specify the period during which the vessel will be
chartered, including the dates of commencement and completion.
• d. Freight rate: The charter party specify the rate of freight to be paid for the charter of the
vessel, which may be a lump sum or a per-ton basis.
• e. Laytime: The charter party specify the time allowed for the loading and unloading of the
vessel, which is known as the laytime. This is an important factor in determining the total
cost of the charter.
• f. Demurrage: The charter party specify the demurrage rate, which is the penalty charged if
the vessel is detained beyond the laytime.
• g. Off-hire: The charter party specify the circumstances under which the vessel will be
considered off-hire, such as for repairs or maintenance.
• h. Insurance: The charter party specify the insurance requirements for the vessel, including
the type of coverage required and the party responsible for obtaining and paying for the
insurance.
• i. Termination: The charter party specify the circumstances under which the charter may be
terminated by either party, including breach of contract or force majeure events.
• j. Applicable law: The charter party specify the law that governs the agreement, which may
be the law of the country where the vessel is registered or the law of the country where the
charterer is located.
 The U.N. Convention on Carriage of Goods
by Sea (COGSA),
• better known as the Hamburg Rules 1978,
• was formulated to harmonise the developing
International Trade laws.
• It shifted the duty of care and the liability towards
the carrier, making such grounds of liability
stringent by adding grounds such as liability for
losses arising from loss or damage of goods, delay
in delivery, fires caused due to neglect of industrial
standards
• and provided with narrow grounds of defences.
 Why Hamburg Rules?
• a) There is a need for a new sea transport
convention or amendments to existing ones.
• b) The 1924 Rules are outdated and are biased
in favor of developed countries.
• c) Overall policy of Hamburg Rules are
praiseworthy and a welcome simplification.
 HAMBURG RULES
UNITED NATIONS CONVENTION ON THE CARRIAGE OF GOODS BY SEA, 1978

• Defines
• "Carrier“ as any person by whom or in whose name a
contract of carriage of goods by sea has been concluded
with a shipper, and

• Shipper“ as any person by whom or in whose name or

on whose behalf a contract of carriage of goods by sea
has been concluded with a carrier, or any person by
whom or in whose name or on whose behalf the goods
are actually delivered to the carrier in relation to the
contract of carriage by sea.
• "Consignee" means the person entitled to take
delivery of the goods.
• "Goods" includes live animals; where the
goods are consolidated in a container, pallet or
similar article of transport or where they are
packed, "goods" includes such article of
transport or packaging if supplied by the
shipper.
 Liability of Carrier
• Period of responsibility Article-4
• 1. The responsibility of the carrier for the goods under this
Convention covers the period during which the carrier is in
charge of the goods at the port of loading, during the carriage
and at the port of discharge.

• The carrier is deemed to be in charge of the goods

(a) from the time he has taken over the goods from:
(i) the shipper, or a person acting on his behalf; or
(ii) an authority or other third party to whom, pursuant to law
or regulations applicable at the port of loading, the goods must
be handed over for shipment;
 Cont’d
(b) until the time he has delivered the goods:
(i) by handing over the goods to the consignee; or

(ii) in cases where the consignee does not receive the goods from
the carrier, by placing them at the disposal of the consignee in
accordance with the contract or with the law or with the usage of
the particular trade, applicable at the port of discharge; or

(iii) by handing over the goods to an authority or other third party

to whom, pursuant to law or regulations applicable at the port of
discharge, the goods must be handed over.
• in addition to the carrier or the consignee, this term also refers the
servants or agents, respectively of the carrier or the consignee.
 Liable for Loss and Delay
• The carrier is liable for loss resulting from loss
of or damage to the goods, as well as from
delay in delivery, if the occurrence which
caused the loss, damage or delay took place
while the goods were in his charge, unless the
carrier proves that he, his servants or agents
took all measures that could reasonably be
required to avoid the occurrence and its
consequences. (Article 5 (1))
 Liable for delay?
• Delay in delivery occurs when the goods have
not been delivered at the port of discharge
provided for in the contract of carriage by sea
within the time expressly agreed upon or,
• in the absence of such agreement, within the
time which it would be reasonable to require
of a diligent carrier, having regard to the
circumstances of the case. (Article 5(2))
 Carrier’s Liability (Rule 5(4)(a)
(i) for loss of or damage to the goods or delay in delivery
caused by fire, if the claimant proves that the fire arose
from fault or neglect on the part of the carrier, his
servants or agents;

(ii) for such loss, damage or delay in delivery which is

proved by the claimant to have resulted from the fault
or neglect of the carrier, his servants or agents, in taking
all measures that could reasonably be required to put
out the fire and avoid or mitigate its consequences.
• With respect to live animals, the carrier is not liable for loss,
damage or delay in delivery resulting from any special risks
inherent in that kind of carriage.

• If the carrier proves that he has complied with any special

instructions given to him by the shipper respecting the animals
and that, in the circumstances of the case, the loss, damage or
delay in delivery could be attributed to such risks, it is
presumed that the loss, damage or delay in delivery was so
caused, unless there is proof that all or a part of the loss,
damage or delay in delivery resulted from fault or neglect on
the part of the carrier, his servants or agents. (Article 5 (5))
• The carrier is not liable, except in general average, where loss,
damage or delay in delivery resulted from measures to save
life or from reasonable measures to save property at sea.
(Article 5 (6))

Where fault or neglect on the part of the carrier, his servants

or agents combines with another cause to produce loss,
damage or delay in delivery the carrier is liable only to the
extent that the loss, damage or delay in delivery is attributable
to such fault or neglect, provided that the carrier proves the
amount of the loss, damage or delay in delivery not
attributable thereto. (Article 5 (7))
• Where the performance of the carriage or part thereof has
been entrusted to an actual carrier, whether or not in
pursuance of a liberty under the contract of carriage by
sea to do so, the carrier nevertheless remains responsible
for the entire carriage according to the provisions of this
Convention.

• The carrier is responsible, in relation to the carriage

performed by the actual carrier, for the acts and omissions
of the actual carrier and of his servants and agents acting
within the scope of their employment. (Rule 10 (1))
• Any special agreement under which the
carrier assumes obligations not imposed by
this Convention or waives rights conferred by
this Convention affects the actual carrier only
if agreed to by him expressly and in writing.
Whether or not the actual carrier has so
agreed, the carrier nevertheless remains
bound by the obligations or waivers resulting
from such special agreement. (Rule 10(3))
 Liability – Through Carriage???
• Where a contract of carriage by sea provides explicitly that a specified part
of the carriage covered by the said contract is to be performed by a named
person other than the carrier, the contract may also provide that the carrier
is not liable for loss, damage or delay in delivery caused by an occurrence
which takes place while the goods are in the charge of the actual carrier
during such part of the carriage.

• Nevertheless, any stipulation limiting or excluding such liability is without

effect if no judicial proceedings can be instituted against the actual carrier
in a court competent under paragraph 1 or 2 of article 21.

• The burden of proving that any loss, damage or delay in delivery has been
caused by such an occurrence rests upon the carrier.

• The actual carrier is responsible in accordance with the provisions of

paragraph 2 of article 10 for loss, damage or delay in delivery caused by an
occurrence which takes place while the goods are in his charge
 Liability of Shipper
• General rule
• The shipper is not liable for loss sustained by the
carrier or the actual carrier, or for damage
sustained by the ship, unless such loss or damage
was caused by the fault or neglect of the shipper,
his servants or agents.
• Nor is any servant or agent of the shipper liable for
such loss or damage unless the loss or damage was
caused by fault or neglect on his part. (Article 12)
 Special rules on dangerous goods
• The shipper must mark or label in a suitable manner dangerous
goods as dangerous.

• Where the shipper hands over dangerous goods to the carrier or an

actual carrier, as the case may be, the shipper must inform him of
the dangerous character of the goods and, if necessary, of the
precautions to be taken. If the shipper fails to do so and such carrier
or actual carrier does not otherwise have knowledge of their
dangerous character:
(a) the shipper is liable to the carrier and any actual carrier for the
loss resulting from the shipment of such goods, and

(b) the goods may at any time be unloaded, destroyed or rendered

innocuous (not harmful), as the circumstances may require, without
payment of compensation.
 In brief?
• The Hamburg Rules, formally known as the United Nations Convention on the
Carriage of Goods by Sea of 1978, is an international convention that governs
the liabilities and responsibilities of carriers in the maritime transport of goods.
It aimed to update and unify the rules governing the carriage of goods by sea.
• Key liabilities of carriers under the Hamburg Rules include:
• Obligation to provide a seaworthy vessel: Carriers are responsible for ensuring
that the vessel used for transportation is seaworthy and properly equipped for
the intended journey.
• Responsibility for care of goods: The carrier must properly care for the goods
from the time they are received until their delivery at the destination. This
includes proper handling, storage, and transportation to avoid damage or loss.
• Liability for loss, damage, or delay: The carrier is generally liable for loss,
damage, or delay to the goods unless they can prove that the loss, damage, or
delay was caused by factors beyond their control (ex. natural disasters,
inherent defects in the goods, etc.).
• Liability limits: The Hamburg Rules set limits on the carrier's liability unless the
carrier fails to declare the higher value of the goods at the time of shipment
and pay an additional charge.
 In brief?
• Notification requirements: Carriers are obligated to inform the shipper
of any loss, damage, or delay to the goods as soon as it becomes
apparent.
• Liability for acts of agents or servants: The carrier is responsible for
the actions or omissions of their agents or servants while dealing with
the goods.
• These rules aimed to provide a more balanced approach to the
liabilities and responsibilities of carriers and shippers in maritime
transport, offering more protection to shippers' interests compared to
previous conventions.
• However, it's essential to note that the Hamburg Rules are not as
widely adopted as other maritime conventions such as the Hague-
Visby Rules or the UN Convention on Contracts for the International
Carriage of Goods Wholly or Partly by Sea (the Rotterdam Rules). The
application and specifics of liabilities can vary depending on the
countries that have ratified or adopted the Hamburg Rules and the
terms agreed upon in the contract of carriage.
 Multi-model Transportation of Goods
• Definition?
• A transport system operated by One carrier with more than
one mode of transport under the control or ownership of One
Operator.

• “International multimodal transport’ means the carriage of

goods by at least two different modes of transport on the basis
of a multimodal transport contract from a place in one country
at which the goods are taken in charge by the multimodal
transport operator to a place designated for delivery situated
in a different country”
UNCTAD (MT Convention 1980)
• Multimodal Transport (or Combined Transport or Integrated
Transport) is where goods are delivered door to door, by a
combination of at least two transport modes – e.g., road/rail/sea/air.
• It will involve a Multimodal Transport Operator (MTO) who assumes
contractual responsibility as a principal throughout, irrespective of
whether it is also the party who actually performs the different
stages of the transport.
• The MTO may actually perform only part of the carriage, such as the
sea carriage, or may be a non-vessel owning carrier (NVOC) and
actually perform no part of the carriage.
• The MTO will issue a transport document, a Multimodal Transport
bill of lading (MT Bill) or seaway bill (MT Sea Waybill) to the shipper
which covers the entire transport operation.
Concept of Multimodal Transport in
International Context:

1. International Transport
2. At least two mode of transportation
3. One Operator
4. Single Transport Document and Contract of
Carriage
 Advantage of Multimodal Transport
• Reduce Complication of Liability of Intermodal
Transport
• Dealing with one operator for contract of carriage
• Fix the limitation of liability of operator
• One single contract of carriage for entire routes
• Door-to-Door Deliverable
• National Wealth as Hub of Transit
• Reduction in the costs and time for coordination and
operation of logistics.
• Increased monitoring of shipments from stage to stage.
• There is only one company in charge of
meeting the shipment deadline; therefore,
there is better control on management and
less risk of merchandise theft or loss while
responsibility lies on just one entity.
• Scheduling routes, costs, staff, and logistics
becomes easier.
• The FBL document has preference to enter and
go through customs.
 Disadvantage of Multimodal Transport

• The merchandise may encounter legal and

operational limitations when international
standards are applied.
• For safety reasons, inspections in terminals are
frequent, which limits operations.
 Fact check?
• There is currently no international convention in force in relation to multimodal
carriage.
• The 1980 United Nations Convention on International Multimodal Transport of Goods
(the 1980 MT Convention) failed to gather the required number of 30 ratifications;
and the 2008 United Nations Convention on Contracts for the International Carriage
of Goods Wholly or Partly by Sea (the Rotterdam Rules) has to date obtained only five
of the required 20 ratifications necessary for its coming into force.
• In the early 1990s, a set of standard contractual terms was prepared for incorporation
into commercial contracts, namely the UNCTAD/ICC Rules for Multimodal Transport
Documents 1992.
• These rules are, however, contractual in nature and, therefore, are subject to any
applicable mandatory law.
• Thus, the international legal framework governing multimodal transportation consists
of a complex array of international conventions designed to regulate unimodal
carriage, diverse regional/sub-regional agreements, national laws (many of which are
based on the 1980 MT Convention and/or the UNCTAD/ICC Rules), and standard term
contracts.
• Article 1 Definitions :
• 1. "International multimodal transport" means the carriage of goods by at
least two different modes of transport on the basis of a multimodal transport
contract from a place in one country at which the goods are taken in charge
Ъу the multimodal transport operator to a place designated for delivery
situated in a different country.
• The operations of pick-up and delivery of goods carried out in the
performance of a unimodal transport contract, as defined in such contract,
shall not be considered as international multimodal transport.
• 3. "Multimodal transport contract" means a contract whereby a multimodal
transport operator undertakes, against payment of freight, to perform or to
procure the performance of international multimodal transport.
• 5. "Consignor" means any person by whom or in whose name or on whose
behalf a multimodal transport contract has been concluded with the
multimodal transport operator, or any person by whom or in whose name or
on whose behalf the goods are actually delivered to the multimodal transport
operator in relation to the multimodal transport contract.
• 6 "Consignee" means the person entitled to take delivery of the goods.
• 7. "Goods" includes any container, pallet or similar article of transport or
packaging, if supplied by the consignor.
 Article 2 Scope of application
• The provisions of this Convention shall apply to all
contracts of multimodal transport between places in two
States, if:
• (a) The place for the taking in charge of the goods by the
multimodal transport operator as provided for in the
multimodal transport contract is located in a Contracting
State, or

• (b) The place for delivery of the goods by the multimodal

transport operator as provided for in the multimodal
transport contract is located in a Contracting State.
Multimodal Transportation Act – In Nepal?

• Multimodal Transportation of Goods Act,

2063(2006).
• Enacted to enhance the trade capacity of the
country by developing and operating the
multimodal transportation service and to
consolidate the economy of the country by
diversifying international trade;
• multimodal transportation" means carriage of
goods on the basis of a multimodal transportation
contract; (Section 2 (a))
• "multimodal transport contract" means a
contract entered into by a consignor and a
multimodal transport operator whereby the
multimodal transport operator undertakes to
take charge of goods from the consigner in
any place of the State of Nepal and deliver the
goods to any specified place outside the State
of Nepal, by using two or more modes of
transport;
• “Consigner” means a person who enters into a
multimodal transport contract with a multimodal
transport operation in relation to the delivery of goods.
(Section 2 (e))
• “consignee” means a person who is entitled to take
delivery of goods from a multimodal transport operator
or his/her authorized agent or representative under the
multimodal transport contract; (Section 2 (f))
• “goods” includes containers or packet whether packed
or not, pallets or similar articles of transport and live
animals; (Section 2 (l))
• License to obtain:
No person shall operate the multimodal
transportation service without obtaining a
license under this Act. (Section 3)
• Multimodal transport document to be issued
The multimodal transport operator shall issue a
multimodal transport document while taking
charge of goods from a consigner for
transportation, (Section 7)
• Delivery of Goods
Any multimodal transport operator or its agent or
representative may deliver the goods under the negotiable
multimodal transport document issued to any consignee or his
or her agent or representative. (Section 11)

• Evidence of Operator taking charge of goods

The multimodal transport operator when takes charge of the
goods as described in a multimodal modal transport document
from a consigner, such document shall be prima facie evidence
of the fact that the operator has so taken charge of goods.
(Section 14)
 Liabilities of multimodal transport operator:
• The multimodal transport operator shall be fully liable for the goods
until it delivers the goods as required
• The multimodal transport operator shall be personally liable for any
act whatsoever done by the multimodal transport operator itself, its
employee or agent in the course of discharge of the multimodal
transport contract
• the multimodal transport operator shall be personally liable for any
loss of or damage to or destroy of the goods of which charge has
been taken by the multimodal transport operator, its employee, its
authorized agent or any other person who takes service from the
operator in accordance with the contract ;
• for any reasonable loss or damage caused to the consigner or the
consignee resulted from failure to deliver such goods to the
consignee within the specified period in accordance with the
multimodal transport contract and the operator shall provide
compensation for the same. (Article 17)
 Delay in Delivery?
• Delay in delivery of goods shall be deemed to occur
when the goods have not been delivered by the
multimodal transport operator within the time
specified in the multimodal transport contract for the
delivery of goods,

• in the absence of such specification of time, within a

reasonable time having regard to the nature of goods
to be transported, the condition of the multimodal
transport operator and the overall circumstances of
the transportation of goods. (Section 19)
• Lost Goods
If the goods have not been delivered by the multimodal transport
operator even within ninety (90) days following the time specified in the
multimodal transport contract for the delivery of goods, the goods shall
be treated as lost. (Section 20)

• Dangerous Goods
The consigner shall inform the multimodal transport operator or its agent
or any other person acting on behalf of such operator of the nature of
such goods and the precautions to be taken while transporting such
goods.

The consigner him/herself shall be liable for any loss or damage caused to
the multimodal transport operator in respect of the transportation of the
goods described in the multimodal transport contract resulted from the
failure to complete the procedures or from the default or recklessness of
the consigner, his or her employee or agent. (Section 25)
• Statutory Limitation (Section 29)
• Any person who wishes to institute an action in
respect of any act done or taken under this Act
shall institute the action within six months after
the following date:
(a) the date of delivery of the goods, or
(b) the date when the goods should have been
delivered in accordance with the multimodal
transport document, or
(c) in the event of loss of goods, the date on
which the goods are treated as lost under
Section 20.
• Jurisdiction (Section 30)
Any party who wishes to institute an action under this Act may institute the
action in any of the following courts having jurisdiction under the laws in
force of the concerned country:
(a) a court situated in the habitual residence of or the principal place of
business of the defendant;
(b) a court situated in the place where the multimodal transport
contract was made;
Provided that, in order for the establishment of jurisdiction in the
place referred to in this clause, the defendant shall have a business
center, branch or formal agent in such place and the multimodal transport
contract shall have been entered into through such center, branch or
agent.
(c) a court in the place of taking charge of the goods or the place of
delivery thereof, in accordance with the multimodal transport contract;
(d) where the parties have specified any other place in respect of
institution of action in accordance with the multimodal transport contract,
a court in such place.
 List of Major International Legal Instruments
regulating air carrier liability
• Convention for the Unification of Certain Rules Relating to International
Carriage by Air (Warsaw Convention)
• Protocol to Amend the Convention for the Unification of Certain Rules Relating
to International Carriage by Air (The Hague Protocol to the Warsaw Convention
1955)
• Convention Supplementary to the Warsaw Convention for the Unification of
Certain Rules Relating to International Carriage by Air Performed by a Person
other than the Contracting Carrier (Guadalajara Convention 1961)
• Protocol to Amend the Convention for the Unification of Certain Rules Relating
to International Carriage by Air, Signed at Warsaw on 12 October 1929, as
Amended By The Protocol Done At The Hague (Guatemala City Protocol 1971)
• Additional Protocols 1, 2 and 3 of Montreal (1974)
• Montreal Protocol No. 4 (1975)
• Convention for the Unification of Certain Rules for International Carriage by Air
(Montreal Convention 1999)
 Carriage by Air, Air Operator’s Liability?
• Carriage by Air: Carriage by air is the act of carrying goods by air which is
normally under a contract between the consignor and a carrier.
• It is an aircraft design for transporting goods from one location to another in
the air using airplane, jets, helicopters etc.
• According to Article 2 of Montreal Convention of 1999 “international carriage
means any carriage in which, according to the agreement between the parties,
the place of departure and the place of destination, whether or not there be a
break in the carriage or a transhipment, are situated either within the
territories of two States Parties, or within the territory of a single State Party if
there is an agreed stopping place within the territory of another State, even if
that State is not a State Party. Carriage between two points within the territory
of a single State Party without an agreed stopping place within the territory of
another State is not international carriage for the purposes of this Convention.”
• Air carriers are liable for loss and damage if caused by the negligence of the
carrier or its agents occurring while the shipment is in their care.
• The terms of liability, including limitation, are presented by the carrier to the
shipper in the air waybill, and are contractually accepted when shipment is
made on that air waybill. DOMESTIC AIR CARRIAGE
 WARSAW CONVENTION, 1929
• CONVENTION FOR THE UNIFICATION OF CERTAIN RULES
RELATING TO INTERNATIONAL CARRIAGE BY AIR
• In force since 1933, counting 152 parties
• application: international carriage performed by aircraft – of
persons, baggage, or cargo – for reward or gratuitous, IF:
a) place of departure and destination are in different
state parties, OR
b) place of departure and destination are inside the
territory of one state party, but there is an agreed
stopping place within the territory of another state (round
trip) which does not have to be a party to the Convention
 WARSAW CONVENTION, 1929
• first comprehensive legal framework
governing aviation at the international level
• played an essential role in supporting the
development of the sector
• established a set of principles, most of which
are still effective and constitute the basis of
modern aviation law.
 WARSAW CONVENTION, 1929
• Article 18
• 1.The carrier is liable for damage sustained in the event of the destruction
or loss of, or of damage to, any registered luggage or any goods, if the
occurrence which caused the damage so sustained took place during the
carriage by air.
• 2.The carriage by air within the meaning of the preceding paragraph
comprises the period during which the luggage or goods are in charge of
the carrier, whether in an aerodrome or on board an aircraft, or, in the
case of a landing outside an aerodrome, in any place whatsoever.
• 3.The period of the carriage by air does not extend to any carriage by land,
by sea or by river performed outside an aerodrome. If, however, such a
carriage takes place in the performance of a contract for carriage by air,
for the purpose of loading, delivery or transshipment, any damage is
presumed, subject to proof to the contrary, to have been the result of an
event which took place during the carriage by air.
• Article 19 : The carrier is liable for damage occasioned by delay in the
carriage by air of passengers, luggage or goods.
• Article 20
• 1. The carrier is not liable if he proves that he and his agents have taken
all necessary measures to avoid the damage or that it was impossible for
him or them to take such measures.
• 2. In the carriage of goods and luggage the carrier is not liable if he proves
that the damage was occasioned by negligent pilotage or negligence in
the handling of the aircraft or in navigation and that, in all other respects,
he and his agents have taken all necessary measures to avoid the damage.
• Article 21
• If the carrier proves that the damage was caused by or contributed to by
the of the injured person the Court may, in accordance with the
provisions of its own law, exonerate the carrier wholly or partly from his
liability.
• Article 22
• 1. In the carriage of passengers the liability of the carrier
for each passenger is limited to the sum of 125,000 francs.
• 2. In the carriage of registered luggage and of goods, the
liability of the carrier is limited to a sum of 250 francs per
kilogram, unless the consignor has made, at the time when
the package was handed over to the carrier, a special
declaration of the value at delivery and has paid a
supplementary sum if the case so requires. In that case the
carrier will be liable to pay a sum not exceeding the
declared sum, unless he proves that that sum is greater
than the actual value to the consignor at delivery.
• 3. As regards objects of which the passenger takes charge
himself the liability of the carrier is limited to 5,000 francs
per passenger.
S.N Particular Limited Liability

1 Death or Injury 125000 francs (USD 12000)

2 Baggage 250 francs per Kg (USD 20 Per Kg)

3 Cargo 250 francs per Kg (USD 20 Per Kg)

Article 22(4) of the Warsaw Convention provides: “The sums mentioned above shall be
deemed to refer to the French franc consisting of 65 «milligrams gold of millesimal
fineness 900. These sums may be converted into any national currency in round
figures.”
• 3.3. Jurisdiction (art. 28) The plaintiff can file a
lawsuit for compensation at one of the
following four places:
• carrier’s principal place of business
• domicile of the carrier
• carrier’s place of business through which the
contract was made
• the place of destination
 Other Important Provisions
• Mandates carriers to issue passenger tickets
(art. 3)
• Requires carriers to issue baggage checks for
checked luggage (art. 4)
• Creates a limitation period of 2 years within
which a claim must be brought (art. 29)
 Convention for the Unification of Certain Rules for
International Carriage by Air
(Montreal Convention 1999)
• Some Modernized Clauses •
• Revision of the liability amount in five-year intervals, in
accordance with the changed economic conditions. [art.
24]
• The carrier can contractually determine even higher
limits of liability from those stipulated in the Convention,
i.e. there are no limits of liability. [art. 25]
• Payment in advance to compensate for the damage to
the victims with the aim of assisting the entitled persons
in meeting immediate economic needs, subject to the
domestic laws. [art. 28]
• Two-tier of the Liability Regime (art. 22)
• i) Strict Liability: The convention imposes a strict liability upon
carriers in cases of death or bodily injury of passengers, which
currently is not exceeding SDR 128,821 for each passenger,
irrespective of the fact whether the carrier was negligent or not.

• ii) Higher Liability: Carriers may be liable for higher sums in

excess of SDR 128,821 as there is no limit to liability prescribed.
However, carriers may take defense and not be held liable for
higher damages if the carrier is able to prove either the carrier
or its servants or agents were not negligent or the carrier was
sabotaged.
It governs airline liability for passengers, baggage and
cargo on international flights in cases of:
• death, injury or delay to passengers
• delay, loss or damage to baggage
• delay, loss or damage to cargo
S.N Particular Original Limits Limited Liability (Revised on 28
(SDRs) December 2019) in SDRs
1 Death or Injury 100000 SDR 128,821

2 Passenger delay 4,150 5346

3 Baggage loss, 1,000 1288

damage or delay
4 Cargo 17/kg 22/Kg

The Special Drawing Right (SDR) is an artificial currency set by the International
Monetary Fund. Its value is based on a basket of five currencies – the U.S. dollar, the
euro, the Chinese RMB, the Japanese yen and the British pound sterling.
 Jurisdiction (art. 33) – Can claim in 5
Jurisdiction
• carrier’s principal place of business
• domicile of the carrier
• carrier’s place of business through which the
contract was made
• the place of destination
• the principal and permanent residence of the
passenger

• Time limitation is of 2 years (art. 22)

 Nepalese Context
• BS211 Crash: A Triggering Factor
• US-Bangla Airlines Flight 211 (BS211/UBG211) was a
international passenger flight from Dhaka, Bangladesh, to
Kathmandu, Nepal.
• On board there were 4 crew members and 67 passengers −
33 Nepalese nationals, 32 Bangladesh nationals, one
Chinese national and one national of the Maldives
• After the case, the concerns were strongly raised
regarding the reforms in carrier’s liability laws in Nepal,
and plaints for the compensation were filed before the
Kathmandu District Court.
 Nepalese law on Carriers liability
• Previously, the liability of international air carriers
registered in Nepal was determined as per the
Warsaw Convention and The Hague Protocol 1955,
however, after Nepal acceded Montreal Convention
on August 24, 2018, the liability regime for
international carriage is regulated in accordance to
the Montreal Convention.
• The provisions of the said convention are
enforceable as goodly as Nepalese municipal laws.
[Treaty Act, 1990, Section 9]
 Infringement under Int’l Instruments
• A Breach of Contract can be defined as a legal cause of action in
which an agreement made is not considered by one or more parties
to the contract by nonperformance or interference with the other
party's performance.
• If one of the contracting states does not fulfill the terms and
conditions mentioned in the contract, or if it seems like it is unable to
perform its contract, then it is said to be a breach of contract.
• Hence, when a party fails to act according to the terms and conditions
mentioned in the contract, or it refuses to perform the contract
planned by it, there occurs a breach of contract on his part. In case of
breach of contract by one party, the other party is free not to perform
his terms and conditions.
• A breach of contract does not discharge the contract, preferably
automatically terminates the obligation of the innocent party. In
other words, it enables the innocent contracting party to treat itself
as discharged.
• The breach of contract is of two types:
• a) Actual, i.e., non-performance of the contract on
the due date of performance,
• b) Anticipatory, i.e., before the due date of the
performance has come.
• Hence, it can be concluded that when a contracting
party refuses to perform any act at the time of the
performance of the contract, then there is said to
occur a fundamental breach of the contract.
• Still, if the contracting party refuses to perform the
act before the time of performance by which the
performance of the contract is not possible, then
such kind of breach is known as anticipatory breach
of contract.
• Under the United Nations Convention on Contracts for the International
Sale of Goods (CISG), a breach can occur when a party fails to perform its
obligations under the contract or does not perform them as required by the
agreement.
• There are different types of breaches recognized under the CISG:
• Fundamental breach: This is a serious violation that goes to the root of the
contract. A fundamental breach is significant enough to allow the aggrieved
party to declare the contract avoided and seek damages.
• Non-fundamental breach: This breach is less serious and doesn’t go to the
core of the contract. While it still constitutes a breach, it might not give the
aggrieved party the right to terminate the contract.
• Anticipatory breach: This occurs when one party indicates, through words or
actions, that they won't be able to fulfill their obligations under the contract.
In such cases, the other party may choose to consider the contract as
breached and take appropriate action.
• When a breach occurs under the CISG, the injured party usually has various
remedies available, such as claiming damages, specific performance (where
feasible), or in certain cases, avoidance of the contract.
• Article 25 states about the fundamental breach.
• A breach of contract committed by one of the parties is
fundamental if it results in such detriment to the other party
as substantially to deprive him of what he is entitled to expect
under the contract, unless the party in breach did not foresee
and a reasonable person of the same kind in the same
circumstances would not have foreseen such a result.
• Fundamental breach under the CISG affords an aggrieved
party a basis to avoid a contract in respect of:
• (a) non-performance by the other party (Arts. 49(1)(a), 64(1)
(a));
• (b) anticipatory breach (Art. 72(1));
• (c) instalment contracts (Art. 73(1),(2));
• (d) partial delivery or non-conformity of part of the goods
(Art. 51 (2))
 Montreal Convention 1999
• The Montreal Convention is an international treaty that governs liability in the air transport sector for passengers,
baggage, and cargo. It sets out rules and limitations regarding liability in case of injury, death, delay, or loss related
to international air travel.

• Under the Montreal Convention:

• Breach of contract: A breach may occur when an airline fails to fulfill its obligations as outlined in the contract of
carriage. This could involve failing to transport passengers or cargo according to the terms specified in the contract,
resulting in injury, delay, loss, or damage.

• Liability for breach: The Montreal Convention imposes strict liability on airlines for proven damages caused by
death, injury, or delay to passengers during international carriage. It also outlines provisions related to liability for
the loss, delay, or damage to cargo during international transportation by air.

• Remedies: In case of a breach, passengers or cargo owners have the right to seek compensation for damages. The
Convention provides clear guidelines regarding the compensation limits and procedures for making claims against
airlines for breaches of their obligations.

• The Montreal Convention seeks to provide a uniform legal framework for international air carriage, ensuring that
passengers, cargo owners, and airlines have clarity regarding their rights, liabilities, and the procedures to follow in
case of breaches or incidents during international air travel.

• However, specific details about breaches, liabilities, and remedies can vary based on the circumstances of the case,
the nature of the breach, and the applicable laws within different jurisdictions. Passengers or cargo owners seeking
to claim compensation due to a breach under the Montreal Convention should consult legal experts familiar with
aviation law to understand their rights and the appropriate procedures for seeking remedies.
 Rotterdam Rules

• The Rotterdam Rules, formally known as the United Nations Convention on Contracts for the
International Carriage of Goods Wholly or Partly by Sea, (11 December 2008) are a set of
international rules governing the rights and obligations of parties involved in international
maritime carriage. They focus on modernizing and harmonizing laws related to the
international carriage of goods by sea.
• Regarding breaches under the Rotterdam Rules:
• Breach of contract: Similar to other international conventions, a breach occurs when a party
fails to fulfill its obligations as stipulated in the contract for the international carriage of goods
by sea under the Rotterdam Rules.
• Liability for breach: The rules outline various aspects of liability for breach, including carrier
liability, shipper obligations, and the responsibilities of other involved parties. The rules define
the rights and liabilities of carriers, shippers, and other involved parties in case of breach or
non-performance.
• Remedies: The Rotterdam Rules provide guidance on remedies available to the aggrieved
party in case of a breach. This might include claiming damages, seeking compensation for
losses incurred due to the breach, or taking legal action to enforce the terms of the contract.
• It's important to note that the Rotterdam Rules aim to address and unify various aspects of
international maritime transport law, including the rights, obligations, and liabilities of the
involved parties. The specifics of breaches, liabilities, and remedies can vary depending on the
circumstances, terms of the contract, and the applicable laws within each jurisdiction. Parties
involved in international maritime contracts should carefully review the Rotterdam Rules and
consider legal advice to understand their rights and obligations in case of a breach.
• Article 64 Action for indemnity
An action for indemnity by a person held liable may be
instituted after the expiration of the period provided in article
62 if the indemnity action is instituted within the later of:

• (a) The time allowed by the applicable law in the jurisdiction

where proceedings are instituted; or

• (b) Ninety days commencing from the day when the person
instituting the action for indemnity has either settled the
claim or been served with process in the action against itself,
whichever is earlier.
WTO
• In the context of the World Trade Organization (WTO), a "breach"
typically refers to a situation where a member country violates its
obligations or commitments under the agreements administered by the
WTO. The WTO oversees international trade rules and regulations
among its member nations, and these rules are outlined in various
agreements like the General Agreement on Tariffs and Trade (GATT) and
the Agreement on Trade-Related Aspects of Intellectual Property Rights
(TRIPS), among others.
• A breach occurs when a member country fails to adhere to the rules set
forth in these agreements. This breach can take various forms, such as:
• Violation of Tariff Commitments: For instance, imposing tariffs higher
than what a country has agreed to in its schedules of concessions.
• Non-Compliance with Trade Rules: This might involve unfair trade
practices, such as providing illegal subsidies to domestic industries,
imposing unjustified trade restrictions, or engaging in discriminatory
practices.
• Intellectual Property Rights Violations: This could involve failure to
protect or enforce intellectual property rights as outlined in the
TRIPS Agreement.
• When a breach is suspected or identified, the affected member
country or countries can formally raise the issue through WTO
dispute settlement mechanisms. This involves a structured process
where parties present their arguments and evidence, and a panel or
Appellate Body may be established to make rulings on whether a
breach has occurred and what remedial actions, if any, should be
taken.
• If a country is found to be in breach, it may be required to bring its
policies or measures into compliance with WTO rules. Failure to do
so might lead to authorized retaliation by the affected parties or the
imposition of trade sanctions until the issue is resolved.
• The procedures for handling breaches are an essential part of the
WTO's role in ensuring that international trade is conducted fairly
and in accordance with agreed-upon rules.
• The World Trade Organization (WTO) doesn’t have a single comprehensive treaty governing breaches of
international trade agreements. Instead, it operates under a set of agreements covering various aspects
of international trade, each with its own specific provisions.
• The main WTO agreements include:
• General Agreement on Tariffs and Trade (GATT): The GATT covers trade in goods and includes
provisions regarding tariffs, non-discrimination (most favored nation treatment and national
treatment), and dispute settlement. A breach of GATT could occur if a member country imposes
discriminatory tariffs or fails to comply with agreed-upon trade rules.
• General Agreement on Trade in Services (GATS): GATS pertains to trade in services and encompasses
commitments made by member countries regarding access to their service markets. A breach could
occur if a country violates its commitments, such as imposing unjustified restrictions on foreign service
providers.
• Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS): TRIPS deals with
intellectual property rights and sets standards for the protection of patents, copyrights, trademarks,
and trade secrets. A breach could involve violations of these standards, such as unauthorized use of
intellectual property.
• Dispute Settlement Understanding (DSU): The DSU provides the mechanism for resolving disputes
between member countries. A breach could occur if a member fails to comply with the rulings or
recommendations of the dispute settlement panels.
• When a breach is alleged, WTO members can initiate dispute settlement procedures. The Dispute
Settlement Body (DSB) examines claims and, if it finds that a breach has occurred, allows the affected
country to take appropriate countermeasures unless the offending country remedies the situation.
• WTO agreements have specific provisions outlining the rights and obligations of member countries,
dispute resolution mechanisms, and the consequences of breaching these agreements. However, the
characterization of a breach and the actions taken in response depend on the specific provisions of
each agreement and the findings of dispute settlement panels or the Dispute Settlement Body.