Rotterdam Rules for Maritime Transport of Goods Signed by 16 Countries (Not Yet in Effect)
On September 23, 2009, the United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea, known as the Rotterdam Rules1, was signed by 16 countries.
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The 16 signatories are the U.S., Congo, Denmark, France, Gabon, Ghana, Greece, Guinea, the Netherlands, Nigeria, Norway, Poland, Senegal, Spain, Switzerland, and Togo.
The Rotterdam Rules describe the rights and obligations of parties involved in the carriage of goods by sea. The convention provides more clarity about who is responsible for what, when and where in maritime transport and how far these responsibilities extend.
Rules Enter Into Force for Signatories One Year After 20th Country Ratifies Them
On September 23, 2009, the Rotterdam Rules were signed by the 16 countries that already have decided to support them. For such countries, however, the convention does not immediately take effect. They first have to complete their national procedure for ratification of the convention. The Rotterdam Rules will enter into force for these countries one year after the 20th country has ratified it.
Changes That Would be Made by Rotterdam Rules
According to a Rotterdam Rules summary, the following are highlights of the changes that would be made:
Cargo liability. In the case of a stranded ship, a stolen container or damage to a shipment, the Rotterdam Rules establish more clearly who is responsible and accountable for what. For example:
other parties in the supply chain, such as stevedores, may now be jointly liable with the carrier;
the carrier's liability for damage to the cargo has been increased;
the shipper's obligations are more clearly defined, such as its obligation to have the goods ready for transport in a timely manner;
goods loaded in containers and trailers must be stowed in such a way that they are able to withstand the sea voyage;
in case of damages the claims procedure is made easier;
the time bar has been extended from one to two years for countries which are parties to the Hague and Hague-Visby Rules, which have the greatest number of contracting states; and
the name and address of the carrier must be stated on the transport document.
Mutimodal transport. The Rotterdam Rules will apply to contracts for the transport of goods over sea as well as their prior or subsequent transport over land. In this way, multimodal transport can be carried out under a single contract with just one statutory regime applying to it.
E-commerce. The Rotterdam Rules will establish the legal infrastructure for the development of e-commerce in maritime transport.
Cargo flow at ports. When a consignee fails to collect its cargo in time, carriers and terminals will have more options for storing cargo outside the port area.
1For signatories, the Rotterdam Rules will replace the Hague Rules (1924), the Hague-Visby Rules and the Hamburg Rules (1978), which do not reflect developments such as the carriage of goods in containers and electronic data.
Press release on signing of Rotterdam Rules by 16 countries (dated 09/23/09, at http://www.rotterdamrules2009.com/cms/uploads/pdf/Acceptance%20of%20Rotterdam%20Rules%20by%2016%20countries.pdf
Press release on Rotterdam Rules available at http://www.rotterdamrules2009.com/cms/uploads/RR_persinfo_algemeen_Eng.pdf.