Cracks appear as US and Europe in standoff over liability convention

The National Industrial Transportation League (NITL) has given its full backing to a new international convention, whereas the European Shippers’ Council (ESC) has called for its rejection.
While the ESC feels the new convention would be a backwards step, the NITL strongly supports ratification both in the US and globally.
In a paper setting out its position, the NITL says the new convention takes into account present day ocean shipping arrangements and commercial practices and would replace the outmoded, decades old patchwork of liability regimes currently applied by trading nations.
“The new rules carefully balance the legitimate commercial interests of all affected parties and reflect a package of reforms that will result in significant benefits for everyone connected with the maritime movement of goods including shippers, carriers, and other freight stakeholders,” the league contended.
Its comments follow support for the Rotterdam Rules from the International Chamber of Shipping which last week urged all governments to ratify the Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea rather than allow regional action.
That was a reference to European Commission plans to draw up its own set of cargo liability rules.
In Washington, the NITL issued a point-by-point rebuttal of the assertions presented by the ESC.
The NITL argues that the Rotterdam Rules will result in clear benefits to the shipper community, including elimination of the nautical defence which currently permits ocean carriers to escape fault and liability based on negligent handling of the vessel.
The Rotterdam Rules would also expand carriers’ due diligence for the entire voyage by sea, not just at the beginning of the sailing, and increase the liability protections afforded to shippers at levels higher than under existing maritime cargo
These and many other benefits listed by the NITL contradict the ESC’s contentions that shippers would be better served by the status quo and that the new convention would place cargo owners in a worse position than that of the pre-1924 environment when the Hague Rules were first adopted.
The NITL also confronted the ESC’s desire for development of a European multimodal convention, stating it would be “a giant step backwards, and would undermine the international community’s attempt to update cargo liability rules applicable to sea carriage and increase efficiencies and harmony through the widespread adoption of a uniform regime.”
NITL executive vice-president Peter Gatti said: “Our organisation is the only shipper-based group uniquely qualified to speak to the provisions contained in the new rules. We have been actively engaged since before the beginning of this decade in fashioning this new maritime liability convention, which is responsive to today’s global commercial needs.”