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FREIGHT FORWARDERSFREIGHT FORWARDERSFREIGHT FORWARDERSFREIGHT FORWARDERSLIABILITYLIABILITY

BYBYBYBY

ALGHANIM GROUP OF SHIPPING & TRANSPORTALGHANIM GROUP OF SHIPPING & TRANSPORTKUWAITKUWAIT

TEL : 2421701TEL : 2421701FAX : 2428678WEB SITE : www.alghanimgroup.com

WHAT IS FREIGHT FORWARDING?WHAT IS FREIGHT FORWARDING?

“Freight“Freight ForwardingForwarding andand LogisticsLogistics Services”Services” meansmeans servicesservices ofofanyany kindkind relatingrelating toto thethe carriagecarriage (performed(performed byby singlesingle modemode orormultimulti modalmodal transporttransport means)means) consolidationconsolidation storagestoragemultimulti--modalmodal transporttransport means),means), consolidation,consolidation, storage,storage,handling,handling, packingpacking oror distributiondistribution ofof goodsgoods asas wellwell asas ancillaryancillaryandand advisoryadvisory servicesservices inin connectionconnection therewith,therewith, includingincluding butbutnotnot limitedlimited toto CustomsCustoms andand fiscalfiscal matters,matters, declaringdeclaring thethe goodsgoodsnotnot limitedlimited toto CustomsCustoms andand fiscalfiscal matters,matters, declaringdeclaring thethe goodsgoodsforfor officialofficial purposes,purposes, procuringprocuring insuranceinsurance ofof thethe goodsgoods andandcollectingcollecting oror procuringprocuring paymentpayment oror documentsdocuments relatingrelating toto thethegoodsgoods.. FreightFreight ForwardingForwarding ServicesServices alsoalso includeinclude logisticallogisticalservicesservices withwith modernmodern informationinformation andand communicationcommunicationservicesservices withwith modernmodern informationinformation andand communicationcommunicationtechnologytechnology inin connectionconnection withwith thethe carriage,carriage, handlinghandling ororstoragestorage ofof thethe goods,goods, andand thethe dede factofacto totaltotal supplysupply chainchainmanagementmanagement.. TheseThese servicesservices cancan bebe tailoredtailored toto meetmeet thethemanagementmanagement.. TheseThese servicesservices cancan bebe tailoredtailored toto meetmeet thetheflexibleflexible applicationapplication ofof thethe servicesservices providedprovided..””

AGENT & PRINCIPAL CONCEPTAGENT & PRINCIPAL CONCEPT

A forwarder is the agent of its A forwarder is the agent of its customer and procures carriage on its customer and procures carriage on its behalf.behalf.

A f d b if iA f d b if iA forwarder cannot be an agent if it:A forwarder cannot be an agent if it:–– Issues a bill of lading in its own nameIssues a bill of lading in its own namegg–– Carries goods on its own vehicleCarries goods on its own vehicle–– Warehouses goods in its own warehouseWarehouses goods in its own warehouse

CONTRACTAL RISKCONTRACTAL RISKCONTRACTAL RISKCONTRACTAL RISK

Cargo loss and damageCargo loss and damage

Liability under a contract, which mayLiability under a contract, which mayLiability under a contract, which may Liability under a contract, which may be governed by international be governed by international convention, national law or approvedconvention, national law or approvedconvention, national law or approved convention, national law or approved trading conditions, standard terms & trading conditions, standard terms & conditions and individual userconditions and individual userconditions and individual user conditions and individual user contracts as stated in the policycontracts as stated in the policy

STANDARDS TRADING CONDITIONSSTANDARDS TRADING CONDITIONS

Legal precedenceLegal precedenceInternational conventionsInternational conventionsNational legislationNational legislationNational legislationNational legislationNationally approved conditionsNationally approved conditionsCompany adopted terms & conditionsCompany adopted terms & conditionsSupplementary agreementsSupplementary agreementsSupplementary agreementsSupplementary agreements

WHAT IS LOGISTICS?WHAT IS LOGISTICS?WHAT IS LOGISTICS?WHAT IS LOGISTICS?

“The planning implementing“The planning implementingThe planning , implementing, The planning , implementing, managing and monitoring the cost managing and monitoring the cost effective movement of product from effective movement of product from pppoint of origin to point of use.”point of origin to point of use.”

OrOrOrOr“The management and control of “The management and control of

inventory in motion and at rest”inventory in motion and at rest”inventory in motion and at restinventory in motion and at rest

INTRODUCTIONINTRODUCTIONINTRODUCTIONINTRODUCTION

•• The CMR ConventionThe CMR Convention

•• The UAE Code of Commercial Practice The UAE Code of Commercial Practice (Land)(Land)

•• The UAE Maritime CodeThe UAE Maritime Code

•• The Hague Visby RulesThe Hague Visby Rules•• The Hague Visby RulesThe Hague Visby Rules

•• The Amended Warsaw ConventionThe Amended Warsaw Convention

•• The UAE Code of Commercial Practice The UAE Code of Commercial Practice (Air)(Air)

CMR CONVENTIONCMR CONVENTIONCMR CONVENTIONCMR CONVENTION

(A) Scope of application (A) Scope of application –– Articles 1 & 2Articles 1 & 2

Contracts for the carriage of goods by Contracts for the carriage of goods by road between two different countries road between two different countries of which one is aof which one is a contracting countrycontracting countryof which one is a of which one is a contracting countrycontracting country


(B) Carriers’ liability for the third parties (B) Carriers’ liability for the third parties –– Article 3Article 3Article 3Article 3

CarrierCarrier isis liableliable forfor actsacts andand omissionsomissionsofof agentsagents andand servantsservants actingacting withinwithinofof agentsagents andand servantsservants actingacting withinwithinthethe scopescope ofof theirtheir employmentemployment


(C) Liability of the carrier (C) Liability of the carrier –– Articles 17 & 18Articles 17 & 18

((11)) ArticleArticle 1717(( ))

(i)(i) LiableLiable forfor total/partialtotal/partial lossloss andand damagedamage(i)(i) LiableLiable forfor total/partialtotal/partial lossloss andand damagedamageandand forfor delaydelay unlessunless causedcaused byby wrongfulwrongfulactact oror neglectneglect ofof claimantclaimant inherentinherent vicevice ororactact oror neglectneglect ofof claimant,claimant, inherentinherent vicevice ororunpreventableunpreventable circumstances/consequencescircumstances/consequences


(C)(C) Liability of the carrier Liability of the carrier –– Articles 17 & 18Articles 17 & 18

(ii)(ii) NotNot LiableLiable ifif

(a)(a) useuse ofof openopen unsheetedunsheeted vehiclesvehicles whichwhich hashas beenbeen(a)(a) useuse ofof openopen unsheetedunsheeted vehiclesvehicles whichwhich hashas beenbeenagreedagreed

(b)(b) lacklack ofof defectivedefective packingpacking(c)(c) loadingloading handlinghandling etcetc byby sender/consigneesender/consignee(c)(c) loading,loading, handlinghandling etcetc byby sender/consigneesender/consignee(d)(d) naturenature ofof goodsgoods(e)(e) insufficiency/inadequacyinsufficiency/inadequacy ofof marksmarks oror numbersnumbers(f)(f) livestocklivestock(f)(f) livestocklivestock


(C)(C) Liability of the carrier Liability of the carrier –– Articles 17 & 18Articles 17 & 18

(2)(2)Article 18Article 18

(i)(i) Burden of proof under Article 17 on carrierBurden of proof under Article 17 on carrier(ii)(ii) R b t t bl ti if i tt ib tR b t t bl ti if i tt ib t(ii)(ii) Rebut table presumption if carrier can attribute Rebut table presumption if carrier can attribute

incident to one of the (a) incident to one of the (a) –– (e) risks(e) risks(iii) Use of special vehicles (iii) Use of special vehicles –– liable for choice, liable for choice,

maintenance and compliance with special maintenance and compliance with special a te a ce a d co p a ce t spec aa te a ce a d co p a ce t spec ainstructionsinstructions

(iv) Livestock (iv) Livestock –– carrier must show normal measures taken and special carrier must show normal measures taken and special instructions followedinstructions followed


(C)(C) Liability of the carrierLiability of the carrier

Successive carriers Successive carriers –– Article 36Article 36Claims can be brought against:Claims can be brought against:Claims can be brought against:Claims can be brought against:

First orFirst orFirst orFirst or

Last orLast or

Carrier in possession at time of eventCarrier in possession at time of event


(D)(D) CompensationCompensation( )( ) pp

(a)(a) Value of goods at place and time accepted for carriageValue of goods at place and time accepted for carriage(b)(b) Commodity exchange or current market priceCommodity exchange or current market price(b)(b) Commodity exchange or current market priceCommodity exchange or current market price(c)(c) Limit : 8.33 SDRs per kiloLimit : 8.33 SDRs per kilo(d)(d) Plus customs, duties, other chargesPlus customs, duties, other charges(e)(e) Delay : maximum payable = carriage chargesDelay : maximum payable = carriage charges(e)(e) Delay : maximum payable = carriage chargesDelay : maximum payable = carriage charges(f)(f) Declaration of special interest in delivery/valueDeclaration of special interest in delivery/value

I t t @ 5% f itt l iI t t @ 5% f itt l iInterest @ 5% p.a. from written claimInterest @ 5% p.a. from written claim


(E)(E) Time LimitsTime Limits

(a)(a) Notice of lossNotice of loss(i) Time of delivery(i) Time of delivery(ii) Within 7 days from delivery if damage not(ii) Within 7 days from delivery if damage not(ii) Within 7 days from delivery if damage not (ii) Within 7 days from delivery if damage not

apparentapparent(iii) Delay (iii) Delay –– 21 days21 days

(b)(b) ProceedingsProceedingsOne year; or three years if willful misconductOne year; or three years if willful misconduct

Written claim shall suspend time limitWritten claim shall suspend time limit


(F)(F) Jurisdiction Jurisdiction –– Article 31Article 31

(a) Defendants’ residence, principle(a) Defendants’ residence, principle(a) Defendants residence, principle (a) Defendants residence, principle place of business or branch/agency place of business or branch/agency through whichthrough which contract madecontract madethrough whichthrough which contract madecontract made

(b) Pl d t k b i(b) Pl d t k b i(b) Place goods taken by carrier or (b) Place goods taken by carrier or designated for deliverydesignated for delivery

CARRIAGE BY ROAD UAECARRIAGE BY ROAD UAECARRIAGE BY ROAD UAECARRIAGE BY ROAD UAE

(A)(A) Application of Commercial CodeApplication of Commercial Code

Article 273: except sea carriageArticle 273: except sea carriageArticle 273: except sea carriage, Article 273: except sea carriage, provisions apply to all other transportprovisions apply to all other transport


(B)(B) Liability for third partiesLiability for third parties(B)(B) Liability for third partiesLiability for third parties

Article 278Article 278 liable for acts of subordinatesliable for acts of subordinatesArticle 278 Article 278 –– liable for acts of subordinatesliable for acts of subordinates

Article 318Article 318 successive carriagesuccessive carriage firstfirstArticle 318 Article 318 –– successive carriage successive carriage –– first first carrier carrier liable to consignor/consigneeliable to consignor/consignee

-- indemnities between carriers indemnities between carriers


(C) (C) Liability of the carrierLiability of the carrier

Carrier not liable for damage if:Carrier not liable for damage if:(a)(a) deviation for assisting sick/injureddeviation for assisting sick/injured(b)(b) incorrect or inadequate detailsincorrect or inadequate details(b)(b) incorrect or inadequate detailsincorrect or inadequate details(c)(c) defective packingdefective packing(d)(d) shippers’ request for particular type of transportshippers’ request for particular type of transport(e)(e) unloading by consignee or someone elseunloading by consignee or someone else(e)(e) unloading by consignee or someone elseunloading by consignee or someone else(f)(f) inherent viceinherent vice(g)(g) can prove force majeure, intrinsic defect in can prove force majeure, intrinsic defect in

object fault of consignor/consigneeobject fault of consignor/consigneeobject, fault of consignor/consigneeobject, fault of consignor/consignee


(D) Compensation(D) Compensation

Limit must not be “superficial” and subject to court’s review in event Limit must not be “superficial” and subject to court’s review in event of dispute.of dispute.

No right to limit if fraud or gross faultNo right to limit if fraud or gross faultNo right to limit if fraud or gross fault.No right to limit if fraud or gross fault.

Limitation agreement must be in writing and be Limitation agreement must be in writing and be “prominent”“prominent”

In absence of limit : value at date and time of arrivalIn absence of limit : value at date and time of arrival

If value stated in waybill, rebuttable presumption that is theIf value stated in waybill, rebuttable presumption that is theIf value stated in waybill, rebuttable presumption that is the If value stated in waybill, rebuttable presumption that is the true valuetrue value



(a)(a) NoticeNoticeIf visible defect, on delivery or right to claim lost.If visible defect, on delivery or right to claim lost.

If t i ibl ti ithi 72 h i ht t l iIf t i ibl ti ithi 72 h i ht t l i l tl tIf not visible, notice within 72 hours or right to claim If not visible, notice within 72 hours or right to claim lostlost

If fraud or gross fault, notice provisions do not applyIf fraud or gross fault, notice provisions do not apply

(b)(b) ProceedingsProceedingsDomestic carriage : 6 months Domestic carriage : 6 months International carriage : 12 monthsInternational carriage : 12 monthsInternational carriage : 12 monthsInternational carriage : 12 months

If fraud or gross fault, time limit doesn’t applyIf fraud or gross fault, time limit doesn’t apply

CARRIAGE BY SEA HAGUE VISBY RULESCARRIAGE BY SEA HAGUE VISBY RULES

(A) Scope of Application(A) Scope of Application

(i) Bills of lading issued in a Contracting State(i) Bills of lading issued in a Contracting State

(ii) Carriage from a port in a Contracting State(ii) Carriage from a port in a Contracting State

(iii) Contract provides that Rules to apply(iii) Contract provides that Rules to apply


(B) Period of coverage(B) Period of coverage

From time of loading to time ofFrom time of loading to time ofFrom time of loading to time of From time of loading to time of dischargedischarge


(C) Cargoes covered(C) Cargoes covered

All cargoes except:All cargoes except:g pg p

(a) live animals(a) live animals(a) live animals(a) live animals

(b) cargo on deck and stated to be on (b) cargo on deck and stated to be on deckdeck


(D) Obligations of the carrier(D) Obligations of the carrier

Seaworthiness Seaworthiness –– obligation on owner to exercise obligation on owner to exercise due diligencedue diligence

“If the defect existed, the question to be put is: “If the defect existed, the question to be put is: would a prudent owner have required that it shouldwould a prudent owner have required that it shouldwould a prudent owner have required that it should would a prudent owner have required that it should be made be made good before sending is ship to sea had good before sending is ship to sea had he known of it?”he known of it?”


(D) Obligations of the carrier(D) Obligations of the carrier

Properly man equip and supply plusProperly man equip and supply plusProperly man, equip and supply plus Properly man, equip and supply plus cargo worthinesscargo worthiness


(E) Exceptions clause(E) Exceptions clause

Exceptions in Article IV Rule 2 will notExceptions in Article IV Rule 2 will notExceptions in Article IV Rule 2 will not Exceptions in Article IV Rule 2 will not be available be available to carrier if loss caused to carrier if loss caused bb hi h b hhi h b hby unby un--seaworthiness or other breach seaworthiness or other breach of Article III Rule 1 unless carrier can of Article III Rule 1 unless carrier can

prove exercise of due diligenceprove exercise of due diligence


(F) Limitation(F) Limitation

(i) Package limit(i) Package limit(i) Package limit(i) Package limit

10 000 poincare gold francs per10 000 poincare gold francs per10,000 poincare gold francs per 10,000 poincare gold francs per package/unit or 30 such francs per kilopackage/unit or 30 such francs per kilo

OROROROR666.67 SDRs/2 SDRs, respectively if SDR 666.67 SDRs/2 SDRs, respectively if SDR protocol to applyprotocol to applyp pp yp pp y


(F) Limitation(F) Limitation

(ii)(ii) Time limitTime limit

(a)(a) Notice Notice At time of removal or, if damage notAt time of removal or, if damage notAt time of removal or, if damage not At time of removal or, if damage not

apparent, within 3 daysapparent, within 3 days

If no notice, prima facie clean deliveryIf no notice, prima facie clean delivery

CARRIAGE BY SEA UAECARRIAGE BY SEA UAECARRIAGE BY SEA UAECARRIAGE BY SEA UAE

(A) Scope of application of Maritime (A) Scope of application of Maritime CodeCode

If court has jurisdiction, Code appliedIf court has jurisdiction, Code applied


(B)(B) Liability for third partiesLiability for third parties

Carrier liable for acts/omissions ofCarrier liable for acts/omissions ofCarrier liable for acts/omissions of Carrier liable for acts/omissions of servants/agentsservants/agents


(C) Liability of carrier(C) Liability of carrier

(i)(i) SeaworthinessSeaworthiness(i)(i) SeaworthinessSeaworthiness(ii)(ii) DefencesDefences(iii)(iii) ContainersContainers(iv)(iv) Through bills of loadingThrough bills of loading(iv)(iv) Through bills of loadingThrough bills of loading


(D) Compensation(D) Compensation

Limitation:Limitation: AED10,000 per package or unit AED10,000 per package or unit AED 30 per kiloAED 30 per kilo

whichever is the higherwhichever is the higher

Number of packages if stated on B/L to be inNumber of packages if stated on B/L to be inNumber of packages, if stated on B/L to be in Number of packages, if stated on B/L to be in container = packagecontainer = package

No limit if nature and value of goods set out in No limit if nature and value of goods set out in B/LB/L



(a) Notice(a) Notice(a) Notice(a) Notice

Before or during delivery failing which rebuttable Before or during delivery failing which rebuttable presumption of clean deliverypresumption of clean delivery

If damage not apparent : within 3 days of deliveryIf damage not apparent : within 3 days of delivery

(b) Proceedings(b) Proceedings(b) Proceedings(b) Proceedings

One year for damages actionOne year for damages action

Priority claims : also one year for cargo claims, but 6 months Priority claims : also one year for cargo claims, but 6 months for other claimsfor other claims


(F)(F) JurisdictionJurisdiction

Article 21 Civil Code ProcedureArticle 21 Civil Code ProcedureArticle 21 Civil Code ProcedureArticle 21 Civil Code Procedure

Article 122 Maritime CodeArticle 122 Maritime Code

CARRIAGE BY AIR CARRIAGE BY AIR AMENDED WARSAW & MONTREAL AMENDED WARSAW & MONTREAL

CONVENTIONCONVENTION

(A) (A) Scope of ApplicationScope of Application

“International Carriage” as defined“International Carriage” as definedInternational Carriage as definedInternational Carriage as defined



(B) (B) Successive CarriageSuccessive Carriage

Consignor rightConsignor right vv first carrierfirst carrierConsignor right Consignor right ––vv-- first carrierfirst carrier

Consignee right Consignee right ––vv-- last carrierlast carrier

Both have right Both have right ––vv-- actual carrieractual carriergg



(C)(C) Liability of CarrierLiability of Carrier

Almost strict liabilityAlmost strict liability

Limited defenses: Inherent vice, quality, Limited defenses: Inherent vice, quality, defectdefectdefectdefect

: defective packaging: defective packaging: war / armed conflict: war / armed conflict: war / armed conflict: war / armed conflict: act of public authority: act of public authority



(D) Compensation / Limits of Liability(D) Compensation / Limits of Liability

MP4 : 17 SDR’sMP4 : 17 SDR’s –– for cargo:for cargo:MP4 : 17 SDR s MP4 : 17 SDR s for cargo: for cargo: unbreakableunbreakable

Amended Warsaw: 17 SDRs but Amended Warsaw: 17 SDRs but ibl t l A t 25 d “b k”ibl t l A t 25 d “b k”possible to rely on Art 25 and “break” possible to rely on Art 25 and “break”

limit in certain circumstanceslimit in certain circumstances



(E) (E) Time LimitsTime Limits

NoticesNotices

Damage:Damage: 14 days14 daysDamage:Damage: 14 days14 daysDelay:Delay: 21 days21 days

Litigation:Litigation: 2 years2 yearsgg yy

CARRIAGE BY AIR UAECARRIAGE BY AIR UAECARRIAGE BY AIR UAECARRIAGE BY AIR UAE

(A)(A) Scope of ApplicationScope of Application

Carriage to which internationalCarriage to which internationalCarriage to which international Carriage to which international agreements of the State do not agreements of the State do not apply.apply.apply.apply.

A li d i “ i b i ”A li d i “ i b i ”Applies during “carriage by air” as Applies during “carriage by air” as defined.defined.


(B) Liability for acts of Third Parties(B) Liability for acts of Third Parties

Presumed, given the wording of the Code.Presumed, given the wording of the Code., g g, g g

Successive carriers:Successive carriers:Successive carriers:Successive carriers:

Each liable for stage performed by him. Each liable for stage performed by him. Contracting carrier liable for whole carriage.Contracting carrier liable for whole carriage.g gg g


(C) Liability of carrier(C) Liability of carrier

Almost strictAlmost strictAlmost strictAlmost strict

Limited defences: Claimant’s own Limited defences: Claimant’s own negligencenegligencenegligencenegligence


(D) Compensation / Limits of liability(D) Compensation / Limits of liability

AED150/kg unless “special statement”AED150/kg unless “special statement”/ g p/ g p

Possibility of “breaking” limitPossibility of “breaking” limitPossibility of breaking limitPossibility of breaking limit

“… intention or heedlessly while aware “… intention or heedlessly while aware damage damage could ensue”could ensue”


(E) Time Limits for Notices and Litigation(E) Time Limits for Notices and Litigation

Notice of damage: 14 daysNotice of damage: 14 daysNotice of damage: 14 daysNotice of damage: 14 daysDelay: 21 daysDelay: 21 days

Litigation: 2 yearsLitigation: 2 yearsLitigation: 2 yearsLitigation: 2 years

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