20th Country Signs Rotterdam Rules for Maritime Transport of Goods (Ratification by 20 Needed)
On October 23, 2009, the United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea, known as the Rotterdam Rules1, received its 20th signature.
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(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 It
According to the Rotterdam Rules website, the convention does not immediately take effect for signatory countries. Countries first have to complete their national procedure for ratification of the convention. The Rotterdam Rules will enter into force for the signatory countries one year after the 20th country ratifies it.
Rotterdam Rules Signatories to Date
The 16 countries signing the Convention upon its opening for signature in Rotterdam on September 23, 2009 were: Congo, Denmark, France, Gabon, Ghana, Greece, Guinea, the Netherlands, Nigeria, Norway, Poland, Senegal, Spain, Switzerland, Togo, and the U.S. The countries that subsequently signed were: Armenia, Cameroon, Madagascar, and Niger.
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 for signatories:
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.
Multimodal 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.
(See ITT's Online Archives or 09/28/09 news, 09092810, for BP summary announcing that 16 countries had signed the Rotterdam Rules.)
UNCITRAL press release (UNIS/L/133, dated 10/23/09) available at http://www.unis.unvienna.org/unis/pressrels/2009/unisl133.html