The nation’s largest shipper organization is backing a new standard for cargo liability in

international transport that would supersede current U.S. maritime cargo liability law.

The new convention, informally known as “the Rotterdam Rules,” would bring uniformity

and consistency to the application of awards for lost or damaged cargoes, said the

National Industrial Transportation League.

The NITL’s board of directors voted unanimously to support the rules May 5. Several

international organizations have worked on the new rules, which must be approved by

Congress before they can be adopted in the United States.

“The development of compatible worldwide standards applicable to the loss and damage

of maritime cargoes is long overdue,” said Mark Maleski, NITL chairman and supply chain

logistics director for retailer J. C. Penney.

Uniformity and consistency are notably lacking in the liability rules governing maritime

shipping today, said Peter Gatti, executive vice president of the NITL, which represents

some 700 U.S. companies involved in domestic and international transport.

Also, the current U.S. law, the Carriage of Goods at Sea Act, hark back to a time when

cargo was shipped in boxes, crates and bags, rather than on pallets or in containers.

COGSA is the U.S. law enacting the “Hague Rules,” an international convention dating to

1924. “We all know the world has changed significantly since that time,” Gatti said.

“The Rotterdam Rules will reflect current shipping practices, contain significant

improvements over existing cargo liability conventions, promote harmonization among

trading partners, reduce legal obstacles and will allow shippers, carriers and third parties

to customize their contracts to meet their commercial needs,” he said.

Unless the U.S. adopts the rules, U.S. interests will be subject to inconsistent rulings,

unpredictable results and operate at a competitive disadvantage to overseas companies,

the NITL warned.

Global Trade International Maritime Regulation United States

Source URL: http://www.joc.com/node/411191