Multi modal Transport Act
As you are aware, Containerised Trade has changed the way in which the general cargo has been handled for a long time in Shipping Industry. It has revolutionised the shipping activity to a large extent. Any technological change, like this also brought in other issues and some legal complications. The Bills of Lading normally issued as legal document has also changed. The Exporters and the Importers have been taking money from their Banks using the Bill of Lading issued by the Mate or the Agent on behalf of the Master. Let us discuss this in detail
The Through Transport/Combined Transport/Intermodal or Multimodal Transport Bills of LadingThese B/Ls are issued when the goods have to be placed on board several carriers to reach their final destination. A transport carrier could be a merchant vessel or one that carries goods using road and rail networks.
A through bill of lading is issued when carriers used to transport the goods are merchant vessels. In this B/L the origin and destination of the goods is from the port of loading to the port of discharge.
A combined transport B/L, intermodal and multimodal transport B/Ls are used for multimodal transport in the carriage of goods from origin to destination. Carriage is from the place of receipt (a named place, e.g. a warehouse) to the place of delivery (a named place e.g. the Buyer’s premises).
The responsibility for loss of or damage to goods during transit for these B/Ls rests either with the first carrier or a combined transport operator (a freight forwarder)
All the Countries have to amend their carriage of Goods Act by sea to a more modern Multimodel transport Act– Indian has introduced a bill in April’1992 and introduced a new Act– Some of the important clauses are reproduced here for ease of reference
7.Issue of multimodal transport document
- Where the consignor and the multimodal transport operator have entered into a contract for the multimodal transportation and the multimodal transport operator has taken charge of the goods, he shall, at the option of the consignor, issue a negotiable or non-negotiable multimodal transport document.
Provided that the multimodal transport operator shall issue the multimodal transport document only after obtaining, and during the subsistence of a valid insurance cover. - The multimodal transport document shall be signed by the multimodal transport operator or by a person duly authorised by him.
8. Multimodal transport document to be regarded as document of title
- Every consignee named in the negotiable or non-negotiable multimodal transport document and every endorsee of such document, as the case may be, to whom the property in the goods mentioned therein shall pass, upon or by reason of such consignment or endorsement, shall have all the rights and liabilities of the consignor.
- Nothing contained in sub-section (1) shall prejudice or affect the right of the multimodal transport operator to claim freight from the consignor or enforce any liability of the consignee or endorsee by reason of his being such consignee or endorsee.
9. Contents of multimodal transport document- The multimodal transport document shall contain the following particulars, namely:–(a) the general nature of the goods, the leading marks necessary for identification of the goods, the character of the goods (including dangerous goods), the number of packages or units and the gross weight and quantity of the goods as declared by the consignor;(b) apparent condition of the goods;(c) the name and principal place of business of the multimodal transport operator;(d) the name of the consignor;(e) the name of the consignee, if specified by the consignor;(f) the place and date of taking charge of the goods by the multimodal transport operator;(g) the place of delivery of the goods;(h) the date or the period of delivery of the goods by the multimodal transport operator as expressly agreed upon between the consignor and the multimodal transport operator;(i) whether it is negotiable or non-negotiable;(j) the place and date of its issue;(k) freight payable by the consignor or the consignee, as the case may be, to be mentioned only if expressly agreed by both the consignor and the consignee;(l) the signature of the multimodal transport operator or of a person duly authorised by him;(m) the intended journey route, modes of transport and places of transshipment, if known at the time of its issue;(n) terms of shipment and a statement that the document has been issued subject to and in accordance with this Act; and(o) any other particular which the parties may agree to insert in the document, if any such particular is not inconsistent with any law for the time being in force.
Provided that the absence of any of the particulars listed above shall not affect the legal character of the multimodal transport document.If you are interested in further reading the Act– You can download the pdf version by clicking here