Introduction to the Law on Carriage of Goods (PDF)

GLUE 3073 International & Domestic Carriage of Goods School Of Law, UUM By: Al Hanisham Mohd Khalid  1. A. Definition and Types of Goods Carriage of goods refers to the transportation of goods from one place to...

GLUE 3073 International & Domestic Carriage of Goods School Of Law, UUM By: Al Hanisham Mohd Khalid  1. A. Definition and Types of Goods Carriage of goods refers to the transportation of goods from one place to another using various modes of transport. Goods can be physical items, such as raw materials, finished products, or personal effects, or they can be intangible items, such as electronic data or intellectual property. Different types of goods require different modes of transport, packaging, and handling, and can pose different risks and challenges during carriage ADD A FOOTER 2  B. Parties Involved in Carriage of Goods The carriage of goods involves several parties, including the carrier, shipper, consignee, and freight forwarder. The carrier is the entity responsible for transporting the goods, while the shipper is the person or company that sends the goods. The consignee is the person or company that receives the goods, while the freight forwarder is a third-party intermediary that arranges transportation and logistics services on behalf of the shipper or consignee. ADD A FOOTER 3  C. Modes of Transport D. Types of Contracts Goods can be transported using various modes The carriage of goods is typically governed by a of transport, including maritime, air, and land contract between the carrier and the shipper or transport. Maritime transport involves the consignee. The most common types of contracts are carriage of goods by sea, using vessels such bills of lading, air waybills, and road transport as ships or barges. Air transport involves the documents. Bills of lading are used in maritime carriage of goods by air, using airplanes or transport, while air waybills are used in air transport, helicopters. Land transport involves the and road transport documents are used in land carriage of goods by road, rail, or inland transport. These contracts contain terms and waterways, using vehicles such as trucks, conditions related to the carriage of goods, such as trains, or barges. the scope of liability, the method of payment, and the delivery terms. ADD A FOOTER 4 A. Sources of Law B. Key Legal Concepts and Terminologies The carriage of goods is governed by a complex The carriage of goods is subject to several key legal legal framework that includes both international concepts and terminologies, including liability, and domestic laws. damages, breach of contract, and force majeure. Liability refers to the legal responsibility of the carrier International law consists of conventions and for any loss, damage, or delay to the goods during treaties that regulate the carriage of goods across carriage. borders. Damages refer to the compensation that may be Domestic law varies from country to country and awarded to the shipper or consignee in case of loss, regulates the carriage of goods within national damage, or delay. borders. Breach of contract refers to a failure by the carrier to The legal framework also includes common law fulfill its contractual obligations. principles and judicial decisions that have Force majeure refers to events or circumstances that developed over time. are beyond the control of the carrier and may excuse it from liability. ADD A FOOTER 5 A. Domestic Carriage of Goods B. International Carriage of Goods Domestic carriage of goods refers to the International carriage of goods refers to the transportation of goods within a single country, transportation of goods across the national border. and is subject to the domestic laws and regulations of that country. In Malaysia, domestic carriage of goods is governed by the: Malaysian Carriage of Goods by Road Act 1950 and the Malaysian Contracts Act 1950, among other laws and regulations. ADD A FOOTER 6 Historical POV The development of carriage of goods law can be In the Middle Ages, common law rules on carriage traced back to ancient times, when goods were of goods were established in England, where the transported via land or sea for trading purposes. concept of bailment was introduced. Bailment The Roman law recognized the principle of refers to the transfer of possession of goods from "delegatus non potest delegare," which means one person (the bailor) to another person (the that a carrier cannot delegate his duties to a third bailee) for a specific purpose. Under bailment, the party. The principle of liability was also established bailee is responsible for the safekeeping and return in the Roman law, where carriers were held liable of the goods to the bailor. for the loss or damage of goods during transport. ADD A FOOTER 7 19th Century 20th Century During the 19th century, with the rise of In the 20th century, international conventions industrialization and transportation, carriage of were established to regulate the carriage of goods goods law became more complex. The law had to by different modes of transport. adapt to the changing modes of transport and the The most significant of these is the United Nations increased volume of goods being transported. In Convention on Contracts for the International 1855, the British Parliament passed the Carriers Carriage of Goods Wholly or Partly by Sea (the Act, which regulated the liability of carriers for the "Hamburg Rules"), which was adopted in 1978. loss or damage of goods. This was followed by the Carriage of Goods by Sea Act 1924, which The Hamburg Rules establish the liability of carriers established the Hague Rules for the carriage of and shippers for the loss or damage of goods goods by sea. during sea transport, and also include provisions on the rights and obligations of both parties. ADD A FOOTER 8  Carriage of goods law plays a crucial role in In Malaysia, carriage of goods law is governed by both domestic and international laws. The Carriage of Goods international trade, as it governs the movement of by Sea Act 1950 are the main domestic laws governing goods across different jurisdictions and modes of the carriage of goods by sea. transport. It ensures that goods are transported There is no international regime governing carriage of safely and efficiently, and provides a framework for goods by road or rail in Malaysia. resolving disputes that may arise during transport. Road haulage is regulated through national licensing laws, It also establishes the liability of carriers and the principal legislation being the Commercial Vehicles Licensing Board Act 1987 which does not address cargo shippers for the loss or damage of goods, which liability issues between the road haulier and the cargo provides certainty and predictability for parties owner. involved in the transport of goods. Rail haulage is regulated by the Railways Act 1991 which provides for licenses, laws, duties and responsibilities and charges for the rail industry including a lien for the haulier’s freight and charges. Malaysia is also a signatory to several international conventions on the carriage of goods, including the Hague-Visby Rules, which regulate the carriage of goods ADD A FOOTER by sea, and the Warsaw Convention, which governs the9 carriage of goods by air. 1. Carrier 2. Shipper The carrier is the party that undertakes to transport The shipper is the party that is responsible for the goods from the point of origin to the point of delivering the goods to the carrier for destination. This can be a shipping line, a trucking transportation. This can be the owner of the company, an airline, or any other entity that provides goods, the seller, or any other party that has a legal transportation services. The carrier is responsible for interest in the goods. The shipper is responsible for ensuring that the goods are transported safely, ensuring that the goods are properly packaged, securely, and efficiently. labelled, and documented for transportation. The carrier has a duty to exercise reasonable care in The shipper has a duty to disclose to the carrier the carriage of the goods. This duty includes ensuring any special requirements or characteristics of the that the goods are properly loaded, stowed, and secured, and that they are not damaged or lost during goods that may affect their transportation. For transportation. The carrier may be held liable for any example, if the goods are hazardous or perishable, damage or loss of the goods that occurs during the shipper must inform the carrier of these transportation, unless it can prove that the damage or characteristics so that appropriate precautions can loss was caused by an exempted event. be taken. ADD A FOOTER 10 3. Consignee The consignee is the party that is entitled to The consignee has a duty to notify the carrier of receive the goods at the point of destination. This any damage or loss of the goods that is discovered can be the buyer, the owner, or any other party upon delivery. This notification must be made in that has a legal interest in the goods. The writing and within a specified time frame, which is consignee is responsible for taking delivery of the usually within a few days of delivery. Failure to goods and for ensuring that they are properly provide timely notification may result in the loss of inspected and accepted. the consignee's right to recover damages from the carrier. ADD A FOOTER 11