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  1. 1. The Hague-Visby Rules are a set of international rules for the international carriage of goods by sea. The official title is "International Convention for theUnification of Certain Rules of Law relating to Bills of Lading" and was drafted in Brussels in 1924. After being amended by the Brussels Amendments (officially the "Protocol to Amend the International Convention for the Unification of Certain Rules of Law Relating to Bills of Lading") in 1968, the Rules became known as the Hague-Visby Rules. A final amendment was made in the SDR Protocol in 1979
  2. 2. The United Nations Conference on Trade andDevelopment (UNCTAD) was established in1964 as a permanent intergovernmental body.It is the principal organ of the United NationsGeneral Assembly dealing withtrade, investment, and development issues.The organizations goals are to "maximize thetrade, investment and developmentopportunities of developing countries andassist them in their efforts to integrate into theworld economy on an equitable basis." (fromofficial website). The creation of theconference was based on concerns ofdeveloping countries over the internationalmarket, multi-national corporations, and greatdisparity between developed nations anddeveloping nations.
  3. 3. Basic goals Optimize the trade, investment and development opportunities of developing countries Assist developing countries in their efforts tointegrate into the world economy on an equitablebasis UNCTAD 4
  4. 4. Basic characteristics• 193 member States• Secretary-General: Rubens Ricupero (Brazil), since September 1995• Staff: 400 employees• Headquarters: Geneva, Switzerland• Budget: ca. US$ 50 million from the UN budget, US$25 million from extra-budgetary sources
  5. 5. Brief History of UNCTAD• First phase: 1964 to late 1970s Rise and climax of UNCTAD’s negotiating role• Second phase: 1980s Strengthening the analytical capacity with greater focus on macroeconomic and financial issues (debt-crisis)• Third phase: 1990s onwards The positive agenda and identification of the shortcomings of the mainstream development strategy UNCTAD 6
  6. 6. Political dimension of the ConferencesDiscussion about: ◦ Development-oriented strategies ◦ Advantages and shortcomings of economic strategies ◦ Intergovernmental and international policies and priorities ◦ Mandates and work of the UN and UNCTAD UNCTAD 7
  7. 7. Globalization and Development Strategies• Macro-economic analysis and policy proposals• Studies and projections about the world economy and the financial system• Preparation of the Trade and Development Report (TDR)• Analysis of external debt problems• Development programs for Africa UNCTAD 8
  8. 8. Intergovernmental process Consensus-building ECOSOCTrade and Development BoardCommission on Commission on Commission on Commission onTrade in Investment, Enterprise, Business Science andGoods, Services Technology and Facilitation and Technology forand Commodities Related Financial Development Development IssuesExpert Meetings • Annual session of the commissions: political issues • Expert meetings: technical UNCTAD issues 9
  9. 9. UNCITRAL HAD THE FOLLOWİNG AİM• Burden of proof• Jurisdiction• Responsibility for deck cargos,live animals and transhipment• Extension of the period of limitation• Elimination of invalid clauses in bill of lading
  10. 10. • Implementing legislation• The Hague-Visby Rules were incorporated into English law by the Carriage of Goods by Sea Act 1971; and English lawyers should note the provisions of the statute as well as the text of the rules. For instance, although Article I(c) of the Rules exempts live animals and deck cargo, section 1(7) restores those items into the category of "goods". Also, although Article III(4) declares a bill of lading to be a mere "prima facie evidence of the receipt by the carrier of the goods", the Carriage of Goods by Sea Act 1992 section 4 upgrades a bill of lading to be "conclusive evidence of receipt".• Under Article X, the Rules apply if ("a) the bill of lading is issued in a contracting State, or (b) the carriage is from a port in a contracting State, or (c) the contract (of carriage) provides that(the) Rules ... are to govern the contract". If the Rules apply, the entire text of Rules is incorporated into the contract of carriage, and any attempt to exclude the Rules is void under Article
  11. 11. • The Carriers Duties• Under the Rules, the carriers main duties are to "properly and carefully load, handle, stow, carry, keep, care for, and discharge the goods carried" and to "exercise due diligence to ... make the ship seaworthy" and to "... properly man, equip and supply the ship". It is implicit (from the common law) that the carrier must not deviate from the agreed route nor from the usual route; but Article IV(4) provides that "any deviation in saving or attempting to save life or property at sea or any reasonable deviation shall not be deemed to be an infringement or breach of these Rules".
  12. 12. • The Shippers Duties• By contrast, the shipper has fewer obligations (mostly implicit), namely: (i) to pay freight; (ii) to pack the goods sufficiently for the journey; (iii) to describe the goods honestly and accurately; (iv) not to ship dangerous cargoes (unless agreed by both parties); and (v) to have the goods ready for shipment as agreed; (q.v."notice of readiness to load").
  13. 13. Carrier’s documentary responsibilities• Shipper entitled to a nonnegotiable transport document or electronic record or a negotiable transport record orelectronic document.These document contain a number of particulars such as description of goods name/adress carrier apparent order and condition of goods.
  14. 14. Carrier’s period of responsibility• From the time carrier is in charge at the port of loading until the port of discharge
  15. 15. Burden proff• On the carrier ,except in case of loss,damage or delay in delivery due to fire,when the burden shifts to the claimant
  16. 16. Scope of application;• The hamburg rules com into operation where• The contract for carriage is for carriage by sea,an• An element of internationality is present in that contract of affreighment is between two different states. THE HAMBURG RULES 17
  17. 17. • Carriers duties and liabilities• Hague – Visby rules• Under the Hague – Visby rules the carrier must exercise due diligence to (Article III).• (a) make the ship seaworthy• (b) properly man, equip and supply ship• (c) make the parts of the ship in which goods are carried fit and safe for the receipt, carriage and preservations of the goods [Article (III) Rule (1)].• The carrier shall properly load, handle, stow, carry, keep, care for and discharge the goods carried (Article (III) Rule 2).• Hamburg Rules makes a distinction between the “carrier” and the “actual carrier”.• 11 (
  18. 18. CARRİER’S EXCEPTİON• Live Animals• Under Article 5 (5) where live animals are carried, the carrier is not liable if he can show that he has complied with the shipper’s a special instructions and the loss or damage was caused by special risks inherent in the kind of cargo carried.• 12 The Muncaster Castle (1961) AC 807• 9• (ii) Deviation• Under Article 5 (6) of the Hamburg Rules provides that the carrier is not liable, except in general average, where loss, damage or delay in delivery resulted from measures to save life or from reasonable measure to save property at sea. However, in the event of deviations, the carrier will still be liable for all loss, damage or delay in deliver that results after deviation.• In contrast Article 4 Rule 4 of Hague – Visby Rules a carrier will not be liable for loss resulting from any deviation in saving or attempting to save life or property at sea or any reasonable deviation.• (iii) Fire• Under Article 5 (4) (i) (a) if a carrier is liable, if a claimant can prove that the fire arose from the fault or negligent on the part of the carrier, his servants or agents. The carrier must prove that he, his servants or agent took all measures that could reasonably be required to avoid the occurrence and its consequences.
  19. 19. Deck CargoArticle 9 of Hamburg Rules provides for deck cargo.The carrier is entitled to carry the goods on deckonly if it is in accordance with anagreement/undertaking with the shipper or is inaccordance with the usage, rules or regulations.Such an agreement between the carrier and shippermust be included in the bill of lading.Dangerous CargoArticle 4 Rule 6 defines the liability for the shipmentof dangerous cargo.This reinforces the implied term at common law thatthe shipper will not ship dangerous goods withoutthe consent of the carrier.Rule 6 provides that when such goods are shippedwithout the knowledge or consent of the carrier, notonly he is entitled to neutralize them at the expenseof the shipper, and without any obligation tocompensate the cargo-owner, but the shipper is alsoliable for any loss or damage resulting from theirshipment.
  20. 20. Hamburg Rules introduced Three newrequirements for the shipment of dangerousgoods.(a) There should be an indication in the cargothat it is dangerous.(b) The dangerous character of the goods hasto be informed to the carrier.(c) Necessary precaution to be taken and thebill of lading must include an expressstatement that the goods are dangerous
  21. 21. Limitation of Carriers LiabilityHague – Visby Rules – Liability limits for loss ordamage: 666.67 SDRs per package (approx. $970.00) or 2 SDRs per kilogram (approx S 1.32per pound), which ever is higher and in termsof the Hamburg Rules 835 SDRs per package or(approx $210.00) or 2.5 SDRs per kilogram(approx $1.65 per pound), whichever is higher.
  22. 22. • CONCLUSION• The Hamburg Rules has been strongly opposed by ship owning interests as it is feared that they would tend to increase carrier’s liability and therefore affect the cost of insurance through the P & I clubs.• They have been equally strongly supported by shipper interests who believe they set a fairer balance between the responsibilities of carrier and shipper.• Freight forwarders’ interests have moved to a position of broad support, seeing the Hamburg Rules as offering the potential for greater uniformity between the liability regimes for the different transport modes, and also reducing the gaps in liability which can be a source of difficulty at present for the forwarder who acts as a principal. The Hamburg Rules came into force on 1 November 1992 and although there are already 25 parties to the Convention it has so far had no major impact on world trade.