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* Content of the multimodal transport document *

The multimodal document shall contain the following particulars:


1) The general nature of the goods, the leading marks necessary to express by
the consignor for identification of the goods, which includes - the dangerous
character, total packages or pieces and the gross weight, etc…
2) The apparent condition of the goods;
3) The name and full address of the multimodal transport operator;
4) The name of the consignor;
5) The name of the consignee;
6) The place and date of taking in charges of the goods by the multimodal
transport operator;
7) The place of delivery of the goods;
8) The required delivery date or period at the delivery place, if expressly agreed
between the parties;
9) A statement indication whether the multimodal transport document is
negotiable or non-negotiable;
10) The place and date of issue of the multimodal transport document;
11) The signature of the multimodal transport operator or authorized person
from him;
12) The freight or the freight including its currency for each mode of
transport is to the extent payable by the consignee or other indicator that
freight is payable by him, if expressly agreed between the parties;
13) The intended journey route, modes of transport and place of
transshipment if known at the time of issuance of the multimodal transport
document;
14) The multimodal transport document shall contain a statement that the
international multimodal transport is subject to the provisions of this
Convention which nullify any stipulation derogating therefrom to the detriment
of the consignor or the consignee.
15) Any other particulars which the parties may agree to insert in the
multimodal transport document, if not inconsistent with the law of the county
where the multimodal transport document is issued.

The absence from the multimodal transport document of one or more of the
particulars referred to in paragraph 1 of this article shall not affect the legal
character of the document as a multimodal transport document.
* The MTO’s relationship with intervening parties *
The nature of an MTO’s business requires him to build and establish sound
working relationships with various parties if he is to deliver quality service to his
customers. These parties, also known as intervening parties, are listed in Table.
Carriers Non-Carriers Other Parties
 Ship owners  Container terminals  Banks
 Road transport  Warehouses  Cargo and liability
operators  Container freight stations, insurers
 Railways groupage/consolidation  Exchange control
 Airlines depots authorities
 Inland waterway  Organizations attending to  Port operators
transport operators packaging, Customs  Customs authorities
clearance, import/export  Government agencies
formalities, foreign such as trade
exchange transactions development boards,
and other related health and safety
documentation authorities

An MTO deals directly with intervening parties because he acts as a principal


in the transport contract. It is critical that the MTO develops sound working
relationship with intervening parties because they are a vital link in the supply chain
and will facilitate the efficient movement of goods. Good relations also help the
MTO remain competitive, for example, through being able to enjoy favorable rate
with carriers. These saving can be passed on to the customer.
Carriers are important to an MTO for two reasons: space and favorable rate.
Securing cargo space with a carrier at a favorable rate ensures the continuance
and success of an MTO’s business. However the relationship between carrier and
MTO is also mutually beneficial, for the carrier relies on the MTO for cargo to fill the
space on his vessel, vehicle or aircraft.
It is common for MTOs and carriers to enter into service contracts that provide
for a certain amount or volume of cargo space per annum. For example, if an MTO
agrees with a carrier that he will ship 500 containers annually, he will enjoy
preferential rates on that amount of space, but on condition that the MTO fulfils the
shipment of 500 containers. The contracts usually carry penalty clauses or dead
freight (Dead freight is an amount a shipper need to pay when the shipper doesn’t
not utilize space he or she has reserved) to cover shortfalls as well as excess
volume because this will impede the carrier’s overall capacity. When this occurs,
the parties either renegotiate for the excess volume, or the MTO pay non-
preferential rates for it.
TLM 6010 - Fill in the blank - 10 Marks
1. Multimodal transport refers to the transportation or carriage of goods from
point A to point B by at least two different modes of transport.
2. The Uniform Rules Concerning the Contract for International Carriage of
Goods by Rail (CIM) and Convention Concerning International Carriage by
Rail (COTIF).
3. “Multimodal transport document” means a document which evidences a
multimodal transport contract.
4. “Mandatory national law” means any statutory law concerning carriage
of goods the provisions of which cannot be departed from by contractual
stipulation to the detriment of the consignor.
5. Where multimodal transport document is issued in non-negotiable form it
shall indicate a named consignee.
6. They are generally rated according to the quality of service rendered,
soundness of advice given and reliability.
7. His role now incorporates value-added services that are crucial to his
customers and vital to his own survival in the international trade arena.
8. Acting as an agent means that the freight forwarder assumes no
responsibility on his own account for the mistakes of others, relying instead
on the protection that is offered by the fact that he acts solely on the
instructions of his principal.
9. These Rules do not have the force of law, but are given legal effect by
their incorporation in a multimodal transport contract.
10. An MTO deals directly with intervening parties because he acts as a
principal in the transport contract.

* Differences between the Hague, the Hague-Visby and the


Hamburg Rules *

The detailed list of exceptions set out in the Hague and HV Rules is no longer
available to the carrier.

 The carrier is no longer exonerated from liability arising from errors in


navigation, management of the ship or fire.

 The carrier is liable for delay in delivery at the port of discharge.


 The dual system for calculating limit of liability, either by reference to package
or weight as set out in HV Rules, has been adopted. (25% increase: SDR 835
per pkg and SDR 2.5 per kilo)

 The liability for delay_ equivalent to 2 and half times of the freight payable
but not exceeding the total payable for the whole contract under which the
goods were shipped.

 The Hamburg Rules cover all contracts for carriage by sea other than charter
parties. Thus Hamburg Rules are applicable to waybills, consignment notes,
etc.

 The Hamburg Rules cover shipment of live animals and deck cargo.

 The Hamburg Rules will apply to both imports and exports to and from a
signatory nation.

Labelling and Marking


Goods must be labelled so that they can be handled in the distribution channel
so that they can be presented for retail sale in the country of import. There are
four major contents are as follows-
1. Foreign languages and metric measurements
2. Weight, width, length and height Cautionary pictures to guide for handling
and storing the cargo
3. Bar codes (two dimensions/RFID)

Sometimes, importing countries are very stringent for labelling requirements


e.g goods sold in Quebec must be labeled in French (provincial requirement). In
marketing aspects, labelling includes Information on specifications, Instructions for
assembly (or) a warranty. For moving through the distribution System, the
packages must be labeled to the extent necessary as required by the buyer and
carrier.
Correct and complete marking of packages helps to prevent incorrect
handling, accidents, incorrect delivery, losses of weight and volume and Customs
fines. Marking must be clear and precise. It is usually black in color. Alternatively,
it may also be applied on adhesive labels. If possible, black symbols on a white
background should be used. Both the marking directly onto the package and
adhesive labels must use carefully to applying a legible and durable manner.
Adequate marking is an essential component of the package. If the marking is at
variance objections may be raised by the Customs authorities. If handling marking
is inadequate, those parties whose actions during transport, handling or storage of
the cargo have caused damage may be excluded from liability.

It is needed three parts to become a complete marking. They are ship mark,
information mark and handling instruction.
(1) Ship mark
The categories of ship mark are as follows,
a) Identification mark
b) Identification number: e.g. receiver's order number
c) Total number of items in the complete consignment
d) Number of the package in the consignment,
e) Place and port of destination
(2) Information Mark
The categories of information mark are as follows,
a) Country of origin
b) Indication of weight of package
c) Dimensions of packages

(3) Handling instructions


Handling marks help to cargo handling. The followings are the examples
1) whether the package is sensitive to heat or moisture
2) whether it is at risk of breakage
3) where the top and bottom are and where the center of gravity is
located
4) where loading tackle may be slung
* THE UNDERLYING PRINCIPLES OF INSURANCE *
1. Insurable Interest
2. Utmost good faith
3. Indemnity
4. Proximate cause
5. Subrogation

1) INSURABLE INTERESE; Intended to ensure that insurance is not merely


speculative and that the insured has a financial interest in the subject matter
of the insurance.

2) UTMOST GOOD FAITH; Where a marine insurance contract is effected, the


insurer may decide to accept the risk based on the information provided, and
at a stated premium.

3) INDEMNITY; Preventing a claimant from making a profit from his loss.


Insurers will indemnify the assured “in manner and to the extent thereby
agreed, against marine losses, that is to say, the losses incident to marine
adventure”.