TRANSMODAL CORPORATION’s Post

Ever wondered about the legal framework governing the shipping of goods by sea? Dive into the Carriage of Goods by Sea Act (COGSA) and discover its vital role in regulating the rights and liabilities of shippers and carriers. From liability limitations to claims deadlines, COGSA is essential for smooth maritime operations. Learn more about how COGSA impacts the maritime industry: [What is COGSA?](https://hubs.la/Q033CmLn0)

The #HagueVisbyRules are a standard framework of international rules for carrying sea cargo, which set obligations for shipowners and cargo interests. Before the Rules were adopted in 1931, parties to cargo shipping contracts could use any terms they pleased, which led to wide-reaching exclusions of liability by the shipowners (who were in a stronger bargaining position). This caused major problems for cargo owners trying to claim damages from carriers. The Hague-Visby Rules impose standard, internationally-agreed rights and responsibilities on both carriers and shippers.  The carrier (shipowner or charterer) has several key obligations, including: (1) To exercise due care and diligence before, and at the beginning of the voyage to make the ship seaworthy, properly manned and supplied, and the holds fit to receive the goods (Art III(1)) (2) Properly and carefully load, handle, stow, carry, keep and care for and discharge the goods until delivered (the 'reasonable care, tackle to tackle' obligation, Art III(2)) The carrier can escape liability through standard exclusions, such as an Act of God or 'inherent vice' of the cargo (Art IV(2)). Liability limits can also apply on the value of claims per package or per unit of weight. Any claim against the carrier must be brought within one year of the date of delivery or expected delivery (Art III(6)). The Hague-Visby Rules don't apply to all cargo shipping contracts, but are generally incorporated onto straight or 'to-order' Bills of Lading. The adoption of international rules for cargo claims has evened the bargaining power between shipowners and shippers, and is accepted as having brought about worldwide economic benefits. You can read the full Rules here > https://lnkd.in/dKGnd4r7 #maritime #law #marineinsurance Gard AS

There has been no new attacks reported from the Houthies in the past few days. However, US forces continue to actively engage targets within Yemen and over the past 3 days they have destroyed 9 drones, 6 missile systems and a support vehicle. There is no new information as to the status of the “sounion” crude oil tanker. HMM has announced plans to invest a bit more than 8 Billion USD in container vessels to increase its fleet of container vessel to reach 1.55 Million TEU. Currently HMM’s operated fleet size is 868,000 TEU according to Alphaliner’s top-100 listing. It should also be noted that increase in size would, even if done instantaneously, not change HMM’s position on the ranking table. They are currently the 8th largest carrier and an increase to 1,55 Million TEU – and without taking into account the other carriers’ orderbooks - would mean they are still number 8 just behind Evergreen. As part of the fleet expansion they expect to acquire 70 green container vessels by 2030. They allocate 750 Million USD to retrofit ships for green fuels as well as investing in securing a supply chain for green fuel. HMM also have adopted – at least in language – an apparently similar strategy as Maersk and now wants to offer integrated logistics services. As they write it: ”HMM will extend terminals and acquire additional port terminals for important bases to accommodate the growing capacity. Furthermore, HMM aims to expand its Off Dock Container Yard(ODCY) business and integrated logistics business to provide end-to-end services.” US based company Giti Tire has filed a case at the FMC against Flexport alledging the issuing of unlawful detention and demurrage charges. It is a mix of invoices lacking the requested information as per OSRA regulations, charging for days where the port are closed, making duplicate charges for the same containers as well issuing accessorial charges which were 4 to 5 times higher than rates in the market and hence seen as so excessive as to be in violation of OSRA regulations. Giti Tire is seeking refunds/elimination for invoices issued and/or paid to the tune of slightly more than 17 Million USD, as well as reparations for unlawful conduct. You can see the full filing on FMC’s website here: https://lnkd.in/dsuighnR   Today is day 269 of the Red Sea diversions

Absent the Rotterdam Rules coming into force, it seems likely that UNCITRAL will want to pick this up again. If not, there is a real danger in an increasingly protectionist world that we end up with an even greater patchwork of regimes. That is after all what the Hague Rules were designed to avoid and the Rotterdam Rules themselves halted efforts to revise US COGSA. How long will the heavily trade-oriented US continue to apply a1936 COGSA? Either way, the voices of shipowners and carriers need to be heard. They do not enjoy a level playing field with cargo interests in many developing economies, where some local systems unfairly find ways to make a carrier liable for paper shortages and pre-shipment issues, amongst others. Would a new cargo liability regime help to achieve a more balanced risk allocation in such places? Without one, will anything change? - Mark Russell, Head of Cargo Claims at Gard AS

New FMC regulation rules out carrier ‘lame excuses’ for rolling cargo The days of “lame excuses” being offered by ocean carriers for refusing to carry contracted cargo may be over. The US Federal Maritime Commission (FMC) has issued a new rule, all but prohibiting shipping lines from refusing space for booked containers and also giving shippers more protection during negotiations. https://lnkd.in/g2CtNB8z

The Ministry of Ports, Shipping and Waterways, has published the Merchant Shipping (Appeal) Rules, 2024 (the “Rules”) vide a Gazette notification dated 10th September 2024. The Rules provide a mechanism for submitting appeals against orders of the Principal Officer of the Mercantile Marine Department under Section 436 (Penalties) of the Merchant Shipping Act, 1958. According to the Rules, inter-alia, appeals must be filed within 30 days of the order (in the specified form), accompanied by relevant statement of facts and may be submitted in person, by mail, or electronically. The Appellate Authority (Director-General of Shipping) shall review the appeal, allow corrections, and dispose of the case within 30 days of date admission of appeal. The Appellate Authority has the power to, inter-alia, modify, set aside or reverse any order appealed. The Rules as published in the Official Gazette are attached herewith. #sarinlaw

As the issues in the #RedSea continue, they will trigger legal disputes between various players in the supply chain, primarily ocean carriers, shippers, and shippers’ customers. Husch Blackwell's Julie Elise Maurer and Aaron C. Schepler share just a few with InBusinessPHX. Read more about legal issues arising from the Red Sea crisis: https://lnkd.in/geGr_Kqw #supplychain #shippingdisruptions #oceancarriers #shippers

"What on earth do you mean I can't sue the solvent parties not named in the letter of indemnity?!?!" 🚩 "Point of Law" - Post 100: even if this judgment's just not cricket, in the eyes of some, hurrah to my first century! 🏏 The "Xing Zhi Hai" [2024] EWHC 2371 (Comm) - A.K.A. jolly rotten bad luck dear boy getting knocked out on your LOI claim after such a strenuous bout! 🥊 Where the named charterer in a voyage charterparty who also issued an LOI, as requestor to the shipowner to delivery the cargo without presentation of the bills of lading, later became insolvent after a claim for misdelivery of the cargo was pursued against the shipowner, the shipowner was unable to sue the solvent shippers of the cargo and their agents as the undisclosed principals to the LOI. ⚠ There are two important lessons to learn from this cautionary tale of woe: 🎻 The first lesson is that if you want a party to be liable to you under an LOI, you need that party to be named in and to sign on the dotted line of the LOI. 👍 What is the second lesson? 🤔 The best answer will be hand picked by me, and you will be lionised for your legal prowess! 🎖 So, what else could possibly go wrong and how would you fix it? 💡 Over to you! ✍

Failure to incorporate Standard Trading Conditions (STC) exposes you to potentially uncapped liability. Every Freight Forwarding company should incorporate a set of STCs for their operation that fits the freight services they provide and comply with local jurisdiction. You should not rely on just International Conventions or Bill of Lading terms to protect yourself! In this course, we will explain what STC is and how important it is to have it properly incorporated into your business. 📍 Join the webinar: https://ow.ly/AfME50RGLvf #WCAworld #LogisticsWebinar

Failure to incorporate Standard Trading Conditions (STC) exposes you to potentially uncapped liability. Every Freight Forwarding company should incorporate a set of STCs for their operation that fits the freight services they provide and comply with local jurisdiction. You should not rely on just International Conventions or Bill of Lading terms to protect yourself! In this course, we will explain what STC is and how important it is to have it properly incorporated into your business. 📍 Join the webinar: https://ow.ly/esrG50RGCYN #WCAworld #LogisticsWebinar