Posted: August 14th, 2022

Liability Issues in Carriage of Goods by Sea Under UNCITRAL Rules

Liability Issues in Carriage of Goods by Sea Under UNCITRAL Rules

The United Nations Commission on International Trade Law (UNCITRAL) is a body that aims to harmonize and modernize the rules of international trade. One of its main achievements is the adoption of the United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea, also known as the Rotterdam Rules, in 2008. The Rotterdam Rules are intended to replace the existing conventions on carriage of goods by sea, such as the Hague-Visby Rules and the Hamburg Rules, and to provide a comprehensive and uniform legal framework for the multimodal transport of goods involving a sea leg.

One of the key issues addressed by the Rotterdam Rules is the liability of the carrier for loss, damage or delay of the goods. The Rotterdam Rules adopt a fault-based liability system, which means that the carrier is liable only if it is proved that the loss, damage or delay resulted from its act or omission, or that of its servants or agents. The carrier can also invoke a number of defenses and limitations to exclude or reduce its liability, such as force majeure, inherent vice of the goods, reasonable deviation, and compliance with mandatory laws or regulations. The Rotterdam Rules also provide for a higher limit of liability than the previous conventions, which is based on 875 units of account per package or other shipping unit, or 3 units of account per kilogram of gross weight of the goods, whichever is higher.

The Rotterdam Rules have been praised for their modern and flexible approach to the carriage of goods by sea, which reflects the current practices and needs of the global trade. However, they have also faced some criticism and challenges, such as their complexity and uncertainty, their potential conflict with other conventions and national laws, and their lack of ratification and implementation by major maritime states. As of January 2024, only five states have ratified the Rotterdam Rules, namely Cameroon, Congo, Spain, Togo and Uganda. Therefore, the Rotterdam Rules are not yet in force and their impact on the international carriage of goods by sea remains to be seen.

References:

– UNCITRAL. (2008). United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea (Rotterdam Rules). Retrieved from https://uncitral.un.org/sites/uncitral.un.org/files/media-documents/uncitral/en/rotterdam_rules_e.pdf
– Van der Ziel, S. (2019). The Rotterdam Rules: A Practical Annotation. London: Informa Law from Routledge.
– Zunarelli, S. (2020). The Rotterdam Rules: A Challenge for Modern Maritime Law. Journal of International Maritime Law, 26(1), 1-18.

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