Rotterdam Rules Will Protect U.S. Shippers

As recent episodes of terrorism and piracy have demonstrated, there still is no consistency or uniformity in the application of awards for loss and/or damaged cargoes. Less sensational, but just as relevant, is the lack of universal coverage for ocean freight lost in a storm or other natural disaster.

All of that is about to change with adoption of a new international multimodal convention on cargo liability that is currently referred to as the “Rotterdam Rules” later this month.

U.S. shippers know this as “The Convention on Contracts for the International Carriage of Goods,” and are endorsing the universal embrace of such coverage. The rules, which were approved by the United Nations last year, have also won the support of The International Chamber of Commerce.

So what is standing in the way of quick and easy ratification? Oddly enough, it’s the European Shippers’ Council. They are currently objecting to liability terms that will be included in contracts signed by shippers, 3PLs and non-vessel-operating common carriers that have been in place here for years.

The National Industrial Transportation League – another major Rotterdam Rules champion – has rightly pointed out that the need to promote harmonization among trading partners is long overdue. Furthermore, says Peter Gatti, executive vice president of NITL, until this happens U.S. interests will be subjected to inconsistent

rulings, unpredictable results and will operate at a competitive disadvantage to interests overseas.”