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U.S. Ratifies Rotterdam Cargo Liability Rules
October 2nd, 2009
By Lafcadio Darling
On September 23, 2009, fifteen nations, including the United States, ratified the United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea, known as the "Rotterdam Rules." Although the Rules will not go into effect until one year after the Convention is ratified by 20 nations, it is widely believed that the Rules will ultimately become the applicable law for most or all of the large maritime trading powers. There has been some controversy among trade and shipping groups about the Rules and the changes they would bring, but the majority of influential groups and commentators have recommended adoption.
The Rotterdam Rules are designed to replace the current patchwork of international law relating to the shipping of goods by sea, which includes the Hague Rules, the Hague-Visby Rules and the Hamburg Rules. The Rotterdam Rules aim to provide a more predictable and consistent set of liability rules for the loss or damage of cargo. The Rules are also meant to account for the modern trend toward intermodal shipping, by which goods are moved by different methods (sea, land and air) on one journey.
In the United States, the adoption of the Rotterdam Rules will require the cooperation of Congress, since the U.S Carriage of Goods by Sea Act (COGSA) will have to be extensively revised to comport with the Rules. Nonetheless, ratification by the United States was considered a significant step toward an effective and uniform international set of rules for maritime shipping rights and liabilities.
A copy of the Rules, as well as extensive commentary and updates, can be found at the United Nations Commission on International Trade Law (UNCITRAL) website here.
Lafcadio Darling specializes in commercial and maritime litigation, representing a wide variety of large and small business and individual clients. In addition to being licensed in Washington and California, Lafcadio also holds an LL.M. from University College London and is a licensed solicitor in England & Wales
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