Rotterdam Rules: Between Old Problems and New Solutions

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Rotterdam Rules Between Old Problems and New
Solutions

• Jana Rodica
• May 2009

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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 todays maritime trade

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Need for a new Regime

• Unification of Transport Laws
• Liability of the Carrier
• Documentary Problems
• Nationalistic Reflex
• Exoneration Clauses
• Electronic Communication

4
Major Changes brought by the Rotterdam Rules

• Scope of Application
• Multimodal (or Door-to-Door) Coverage

5
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

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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 (shippers 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

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3. Balance of Risk Between Carriers and Cargo
Interests

• The Error in Navigation Defence has been
  deleted
• Continuing Obligation of Seaworthiness
• Liability for Delay

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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

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Expanded Shippers Obligations and Liabilities

• Shippers 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

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Maritime Performing Parties

• Any person other than the carrier that performs
  any of the carriers 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 carriers obligations under the
  convention

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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

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Comments and Recommendations

• Conclusion
• 2. The Big question
• Shall Slovenia adopt the Rotterdam Rules?
• maintain the Status Quo
• or
• b) adopt the Rotterdam Rules

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The End
SS Rotterdama hotel ship