Rotterdam Rules

Rotterdam Rules

United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea -New York, 2008 (the “Rotterdam Rules”)
Adopted by the General Assembly on 11 December 2008, the Convention establishes a uniform and modern legal regime governing the rights and obligations of shippers, carriers and consignees under a contract for door-to-door carriage that includes an international sea leg. The Convention builds upon, and provides a modern alternative to, earlier conventions relating to the international carriage of goods by sea, in particular, the International Convention for the Unification of Certain Rules of Law relating to Bills of Lading (Brussels, 25 August 1924) (“the Hague Rules”), and its Protocols (“the Hague-Visby Rules”), and the United Nations Convention on the Carriage of Goods by Sea (Hamburg, 31 March 1978) (“the Hamburg Rules”).
The Rotterdam Rules provide a legal framework that takes into account the many technological and commercial developments that have occurred in maritime transport since the adoption of those earlier conventions, including the growth of containerization, the desire for door-to-door carriage under a single contract, and the development of electronic transport documents. The Convention provides shippers and carriers with a binding and balanced universal regime to support the operation of maritime contracts of carriage that may involve other modes of transport.
ONLY 3 STATES HAVE RATIFIED….BUT REQUIRE ATLEAST 20 STATES FOR INTRODUCING THE RULES

Some of the highlights of the Rules are as follows: 

1. They apply to door-to-door transportation when so-contracted, instead of the tackle-to-tackle coverage of COGSA. 
2. They provide limitations of liability for contracting carriers and maritime performing parties, but not for inland carriers performing part of through carriage. 
3. Liability is based on fault, with a list of exceptions similar to COGSA. 
4. They contain provisions for burdens of proof, which largely follow current, United States law, but expressly allow apportionment of liability based on excepted and non-excepted causes of damage or loss. 
5. They contain provisions whereby parties to volume or service contracts may avoid some of the Rules by following strict procedures. 
6. They contain provisions controlling jurisdiction and arbitration, which the United States may choose to make applicable or not. The places of jurisdiction and arbitration are spelled out, and mandatory jurisdiction and arbitration contractual requirements have some restrictions. 
7. There are requirements for transportation documents, e.g., bills of lading, and for control of a shipment en route to the destination. 
8. They have rules for calculating damage, and base a carrier’s limitation of liability on packages or units of weight, whichever is greater, eliminating the $500 per package COGSA limitation. There are provisions to determine the number of packages or units in containers, including small packages carried in larger packages. 
9. The limitations of liability apply to contracting carriers and maritime performing parties, but not to inland carriers. 
10. Limitations of liability may be lost for intentional or reckless acts. 
11. Delay is defined as failure to deliver the goods by an agreed time; and, liability for loss or damage that is not physical is limited to 2.5 times the freight charge. 
12. The statute of limitations is two (2) years, rather than COGSA’s one (1) year statute of limitations; and, there are separate provisions for time to bring indemnity actions. 
13. They cover the liability of shippers; and, there are provisions for dangerous goods. 
14. They contain rules covering the use of electronic communications, such as electronic bills of lading. 
15. If freight charges are stated as pre-paid on a bill of lading, a carrier may not look to the consignee for payment of the freight charges, unless the consignee is also the shipper.