International Carriage by Sea Notes

International Conventions:
- Hague-Visby Rules
- UN Convention on Carriage of Goods by Sea 1978 – Hamburg Rules
- UNCITRAL Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea – Rotterdam Rules
- Vienna Convention on International Sales

Maritime transport is vital for global trade, facilitating the movement of goods across oceans.
About 80% of the world's trade by volume is conducted through maritime routes.
The efficiency, cost-effectiveness, and ability to transport large quantities make sea transport indispensable.
The absence of standardized regulations caused uncertainties and disputes; therefore, the need for legal frameworks became evident as maritime trade expanded.

Importance and Implications:
- Provide a common set of rules and regulations that govern the carriage of goods by sea, ensuring fairness, predictability, and uniformity in international trade transactions.
- Promote certainty and stability in the shipping industry, which is essential for attracting investments and fostering international trade growth.
- Establish liability and compensation mechanisms in case of loss or damage to goods during transit.
- Define the responsibilities of carriers, shippers, and other parties involved in the transportation process, ensuring that each party knows their obligations and liabilities.

Drafted during the International Law Association conference held in Brussels in 1924.
Primarily created to standardize a set of rules to govern bills of lading and the liability of carriers in international maritime trade.
Defined the responsibilities and liabilities of the carrier, placing an obligation on them to exercise due diligence and ensure the ship’s seaworthiness throughout the voyage.
Established a limitation of liability for carriers to £100.
Defenses and exceptions that could absolve the carrier from liability.
Mandatory application on marine carriage of goods if specified in the bill of lading.

Established in 1968 as an amendment and improvement upon the earlier Hague Rules of 1924.
Introduced amendments to enhance protection for shippers and address loopholes in the original convention.
Apply to contracts of carriage covered by a bill of lading or similar document of title and are mandatory for signatory nations (Art. 1).
Increased carriers’ liability for loss or damage from £100 to 666.67 Special Drawing Rights (SDRs) per package or unit, with an option for further increases.

Adopted on March 31, 1978, in Hamburg, Germany.
Aimed to provide a modern and comprehensive set of regulations governing the international carriage of goods by sea.
Intended to create a more balanced legal regime by addressing certain perceived shortcomings in existing conventions.
Imposed a higher standard of care on carriers, requiring all necessary measures to ensure the safety of the goods.
Introduced a system of strict liability for certain events, such as the loss or damage to the goods caused by the unseaworthiness of the vessel at the beginning of the voyage.
Criticized for its lack of adoption and its complexity.

Formally known as the United Nations Convention on Contracts for the International Carriage of Goods Wholly or Partly by Sea.
Adopted on December 11, 2008, in Rotterdam, Netherlands.
Aimed to modernize and unify the legal framework governing the international carriage of goods by sea.
Expanded the scope of application beyond traditional bills of lading to cover the entire door-to-door transport chain.
Extensive set of obligations for carriers.
Acknowledges the use of electronic transport records, providing a legal framework for their use.
Introduces a longer period within which a legal action can be initiated (two years) compared to the Hague-Visby Rules.
Enhance the rights of shippers by providing clearer provisions for compensation and remedies.

A multilateral treaty that establishes a uniform and comprehensive set of rules governing the international sale of goods.
Adopted on April 10, 1980, in Vienna, Austria, and entered into force on January 1, 1988.

Rules for the formation of contracts, emphasizing that an offer must be sufficiently definite and indicate the intention to be bound.
See Art. 14 – 18
Art. 19 makes provision for default rules in the event of conflict between terms of offer and acceptance.

Outlines the seller's obligation to deliver goods and the buyer's obligation to accept them.
Addresses the place, time, and manner of delivery.
Allows parties to adopt rules to suit their transaction.

Establishes rules for when the risk of loss or damage to the goods passes from the seller to the buyer, taking into account factors like delivery and payment.

Addresses the buyer's duty to examine the goods and notify the seller of any non- conformities within a reasonable time.

Specific Performance (Article 46)
Article 46 gives the buyer the right to require the seller to deliver goods, rectify a lack of conformity, or perform any other obligation.
Damages (Article 74)
Article 74 provides for damages as a remedy for the non- performance of a contract.
Damages are intended to compensate the aggrieved party for the loss suffered Avoidance of Contract (Articles 49-64)
These articles allow both the buyer and the seller to avoid the contract in certain circumstances, such as fundamental breach or anticipatory repudiation.

Force Majeure (Article 79)
Article 79 addresses situations of impediments beyond a party's control, exempting them from liability for non- performance.

The CISG has been adopted by over 90 countries globally, creating a widespread and harmonized legal framework for international sales contracts.
In line with the vision 2030, Saudi Arabia deposited its instrument of accession to this Convention on 3 August 2023 which will enter into force on 1 September 2024.