
Adoption of the Rotterdam Rules took a significant step forward on Monday when the American Bar Association voted to urge Congress to ratify the international shipping liability rules.
The rules, which the United States signed last September, would replace the 1924 Carriage of Goods by Sea Act to cover liability for cargo that’s damaged at sea or on land when part of a door-to-door intermodal move. The ABA House of Delegates is meeting in Orlando, Fla.
“The present legal regimes for maritime cargo transportation are numerous and outdated,” the ABA said. “The Rotterdam Rules will provide greater harmony, efficiency, uniformity, and predictability for those involved in marine shipping.”
Maritime attorney Chester D. Hooper, a member of the U.S. delegation to the United Nations Commission on International Trade Law working group that drafted the rules, said the endorsement is important because the Senate will consult with the ABA about the rules when they come up for ratification.
Hooper said he was unsure when the Senate will take up the rules, but with ABA endorsement and support from shippers and carriers, the rules should be ratified without difficulty.
Along with the ABA endorsement, the Arab Academy for Science, Technology and Maritime Transport in a declaration on Feb. 3 recommended that the 15 member countries of the Arab League jointly sign the rules “as a clear signal that the Arab region is dedicated to the developments of globalization and modernization in international maritime transport.”
Contact R.G. Edmonson at bedmonson@joc.com.
It's no surprise that countries engaged in shipping via international sea transport would sign off on something like the Rotterdam Rules(RR). With reports that previous rules were much more lax, this more structured set of provisions holds the international shipping industry to a higher standard.
According to this article and others, the RR puts the onus on companies to provide more safeguards to ensure the efficient transport of goods. More crew to properly transport goods, more liability in issues where mistakes are clearly made, and door to door responsibility. Moreover, the provisions claim to be pro e-commerce, leading the oceanic shipping industry into this necessary domain.
As is evident by the number of countries endorsing these changes, it seems like there are many positive opinions about the RR. However, it is rare that everyone is on board with rule changes 80 years in the making. Thus, I'm left to ponder the negative claims regarding the RR.