Introduction to the Law on Carriage of Goods Part 2 PDF

GLUE 3073 - International & Domestic Carriage of Goods School Of Law, UUM By: Al Hanisham Mohd Khalid  Freight Forwarder Freight forwarders are intermediaries between shippers and carriers who facilitate the transportation of goods...

GLUE 3073 - International & Domestic Carriage of Goods School Of Law, UUM By: Al Hanisham Mohd Khalid  Freight Forwarder Freight forwarders are intermediaries between shippers and carriers who facilitate the transportation of goods from one location to another. They handle the logistics of shipping, including negotiating rates with carriers, booking cargo space, preparing documentation, and arranging customs clearance. Freight forwarders often have expertise in handling complex logistics, such as oversized or hazardous cargo, and can offer supply chain solutions that optimize shipping routes and minimize costs. ADD A FOOTER 2  Maritime Transport Maritime transport is the transportation of goods by sea or inland waterways. It is a critical mode of transport for international trade, and accounts for around 90% of global trade by volume. The carriage of goods by sea is governed by various international conventions, such as the Hague-Visby Rules and the Hamburg Rules. The main types of vessels used for maritime transport include container ships, bulk carriers, and tankers. ADD A FOOTER 3  Air Transport Land Transport Air transport is the transportation of goods by air. Land transport refers to the transportation of It is a fast and efficient mode of transport for time- goods by road, rail, or inland waterways. It is a sensitive cargo, such as perishable goods or high- critical mode of transport for domestic trade and value items. Air transport is governed by the for connecting with international transportation Montreal Convention, which sets out the rights networks. Land transport is governed by various and liabilities of parties involved in the carriage of domestic and international laws and regulations, goods by air. The main types of aircraft used for air such as the International Road Transport Union transport include cargo planes, passenger planes, (IRU) and the Convention on the Contract for the and specialized freighters. International Carriage of Goods by Road (CMR). The main types of vehicles used for land transport include trucks, trailers, trains, and barges. ADD A FOOTER 4 A. Bill of Lading B. Air Waybill A bill of lading (B/L) is a legal document issued by a An air waybill (AWB) is a document used for the carrier to a shipper that confirms the receipt of transportation of goods by air. It is issued by the goods for shipment. It serves as a contract of carrier or its agent, and sets out the terms and carriage between the shipper and the carrier, and conditions of the transportation of goods. sets out the terms and conditions of the transportation of goods. An AWB also serves as a receipt for the goods, and a document of title that can be used to transfer A B/L also functions as a document of title, which ownership of the goods to a third party. means that it can be used to transfer ownership of the goods to a third party. ADD A FOOTER 5 A. Road Transport Document A road transport document (RTD) is a document used for the transportation of goods by road. It is issued by the carrier or its agent, and sets out the terms and conditions of the transportation of goods. An RTD serves as a receipt for the goods, and a document of title that can be used to transfer ownership of the goods to a third party. The CMR Convention governs the use of RTDs for international road transport. ADD A FOOTER 6 A. Sources of Law International Law Domestic Law International conventions and treaties play a significant role in regulating the carriage of goods Domestic law refers to the legal framework of a across borders. The most notable international specific country that governs the carriage of goods conventions are the Hague Rules, the Hague-Visby within its territory. In Malaysia, the primary Rules, and the Hamburg Rules, which all regulate legislation governing the carriage of goods is the the liability of carriers and the rights of shippers in Carriage of Goods by Sea Act 1950 (Act 527) and international maritime transport. The Montreal the Carriage of Goods by Air Act 1974. These laws Convention, on the other hand, governs the provide a framework for the rights and liabilities of liability of air carriers in international air transport. carriers, shippers, and consignees in Malaysia. These conventions set the standard for the carriage of goods and provide a basis for national laws. ADD A FOOTER 7 Liability Damages Liability refers to the responsibility of a party for Damages refer to the compensation awarded to a any loss or damage that occurs during the carriage party that has suffered a loss or damage during the of goods. carriage of goods. The type and amount of damages awarded will depend on the nature and extent of the loss or damage suffered. Carriers are generally held liable for any loss or damage that occurs during the carriage of goods, but the extent of their liability varies depending on. the type of transport and the terms of the contract. ADD A FOOTER 8 Breach of Contract Force Majeure A breach of contract occurs when one party fails to Force majeure refers to events or circumstances fulfil its obligations under the terms of the that are beyond the control of the parties involved contract. In the context of carriage of goods, a in the carriage of goods. These events or breach of contract may occur if the carrier fails to circumstances may include natural disasters, war, deliver the goods to the consignee or delivers or political unrest. In such cases, the parties may them in a damaged condition. be excused from performing their contractual obligations without incurring any liability. ADD A FOOTER 9 Introduction There are several international conventions and The Hamburg Rules, which were adopted in 1978, treaties that apply to international carriage of were intended to be an improvement over the goods. The most important of these are the Hague Hague-Visby Rules. They offer more protection to Rules, the Hague-Visby Rules, and the Hamburg shippers and provide a more comprehensive set of Rules. rules for the carriage of goods by sea. The Hague Rules were first introduced in 1924, and they were the first international rules governing the carriage of goods by sea. The Hague-Visby Rules were adopted in 1968 and amended the Hague Rules. They are widely used in international trade and provide a standard set of rules for the international carriage of goods by sea. ADD A FOOTER 10  The Hague-Visby Rules and Hamburg Rules govern the The consignee has a duty to notify the carrier of any relationship between the carrier and the shipper in damage or loss of the goods that is discovered upon the international carriage of goods by sea. They delivery. This notification must be made in writing and specify the rights and obligations of each party and within a specified time frame, which is usually within provide a framework for resolving disputes that arise a few days of delivery. Failure to provide timely notification may result in the loss of the consignee's during the transportation of goods. right to recover damages from the carrier. The rules also set out the carrier's liability for loss or Under these rules, the carrier is responsible for the damage to the goods, and specify the procedures for loss, damage or delay of the goods during the making claims for compensation. They also provide transportation, unless it can prove that the loss, for the limitation of liability of the carrier in certain damage or delay was caused by an exempted cause, circumstances, such as in cases where the loss or such as an act of God, war or public enemies, or damage to the goods was caused by the fault of the inherent vice of the goods. shipper. ADD A FOOTER 11 Role in International Trade and Commerce Impact on Business Transactions and Logistics Carriage of goods law is critical to international Carriage of goods law affects business transactions trade and commerce. It provides a legal framework and logistics in many ways. For example, it impacts for the transport of goods across borders, ensuring the terms and conditions of contracts for the sale that parties comply with the necessary legal and transport of goods, including the allocation of requirements and regulations. Without these laws, risk and liability between the parties involved. trade and commerce would be much more difficult It also affects logistics, as it provides rules and and chaotic, potentially resulting in increased costs regulations for the safe and efficient transport of and decreased efficiency. goods. Without these laws, businesses would face uncertainty and risk in their operations, potentially leading to lost revenue and reputation. ADD A FOOTER 12 Protection of Parties' Rights and Interests Ensuring Safe and Secure Transport of Goods Carriage of goods law provides legal protections Carriage of goods law is also crucial in ensuring the for the parties involved in the transport of goods. safe and secure transport of goods. It establishes It establishes the rights and obligations of carriers, safety standards for carriers, including the shippers, and consignees, and provides packaging, labelling, and handling of goods, as well mechanisms for resolving disputes that may arise as rules for the carriage of dangerous or hazardous during transport. This ensures that the parties' goods. It also provides measures for the prevention interests are protected and that they have legal of theft, loss, or damage to goods during transport, remedies in case of any breach of contract or such as liability limits and insurance requirements damage to goods. ADD A FOOTER 13