Maritime Law and Rotterdam Rules Jana Rodica LL.M Budapest, February 2013

Important from the outset Geographical and economic context Europe is surrounded by the sea around 90 % by volume of all trade between the EU and the rest of the world is transported by sea Around 69 % of freight transport in tonne- kilometres between member states and about 42 % of all internal trade including trade within invidual Member States is sea-borne USA the corresponding share is about 16 %

Important EU documents and the role of IMO The Green Paper (2006) The Blue Book (2007) The role of International Maritime Organization (IMO)

Slovenia Slovenian Maritime law 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 today’s maritime trade

46,6 kilometers of coast line

Need for a new Regime Unification of Transport Laws Documentary Problems Liability of the Carrier Documentary Problems Nationalistic Reflex Exoneration Clauses (Himalaya) Electronic Communication

Major Changes brought by the Rotterdam Rules Scope of Application: Multimodal (or Door-to-Door) Coverage Figure 1-: rapid growth in containerized shipping. Source: Drewry Shipping consultants 2006 and 2007

Container Market

Container Transhipment

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

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 – (shipper’s 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

Balance of Risk Between Carriers and Cargo Interests The Error in Navigation Defense – has been deleted Continuing Obligation of Seaworthiness Liability for Delay

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 LIMITS OF LIABILITY IN THE CARRIAGE BY SEA REGIMES HGR 1924 HVR 1986 HMR 1978 RTR 2008 Per Package/ Unit Per Kilo 100 £ SDR 835 SDR 875 SDR 2 SDR 2. 5 SDR 3 SDR HGR: Hague Rules 1924 HVR :Hague – Visby Rules 1968 HMR: Hamburg Rules 1978 RTR: Rotterdam Rules

Expanded Shippers’ Obligations and Liabilities Shipper’s 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

Maritime Performing Parties “Any person other than the carrier that performs any of the carrier’s 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 carrier’s obligations under the convention

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

Comments 1. Conclusion remarks 2. The Rotterdam Rules will enter into effect when 20 countries ratify it. Up until now there are 24 signatories. Spain was the first country to ratify the convention in January The Big question: Shall Slovenia/other states adopt the Rotterdam Rules?

CountrySignatureRatification Armenia29 September 2009 Cameroon29 September 2009 Congo23 September 2009 Democratic Republic of the Congo23 September 2010 Denmark23 September 2009 France23 September 2009 Gabon23 September 2009 Ghana23 September 2009 Greece23 September 2009 Guinea23 September 2009 Luxembourg31 August 2010 Madagascar25 September 2009 Mali26 October 2009 Netherlands23 September 2009 Niger22 October 2009 Nigeria23 September 2009 Norway23 September 2009 Poland23 September 2009 Senegal23 September 2009 Spain23 September January 2011 Sweden20 July 2011 Switzerland23 September 2009 Togo23 September July 2012 United States23 September 2009

The End “ SS Rotterdam” a hotel ship