Legal aspects of container shipping

1. Contracts for container transportation

Container shipping is usually governed by contracts, the main ones being the charter party and the bill of lading. The charter agreement is concluded by the cargo owners and the carrier, and the bill of lading serves as a document of title. It is important to specify in detail the rights and obligations of the parties, as well as clarify the procedure for loading and unloading, delivery times, insurance, liability for damage to cargo and sanctions for violation of conditions.

Particular attention should be paid to the form and language of the contract, since the slightest mistake in legal wording can result in losses in the event of a dispute.

2. The role and significance of the bill of lading

The Bill of Lading is one of the most important documents in container shipping. It performs three functions:

• Proof of concluding a contract for transportation.
• Document of ownership of the cargo.
• Confirmation of receipt of cargo by the carrier.

There are different types of bills of lading: direct, order and bearer. The choice of bill of lading type determines how the transfer of rights to the cargo will be carried out. It is important to consider that errors in the bill of lading, for example in indicating the name of the cargo, its weight or value, can lead to problems with customs clearance or delays at border points.

3. Carrier liability and cargo insurance

The carrier is responsible for the safety of the cargo from the moment of receipt until the moment of its transfer to the recipient. Primary risks include damage, loss and delivery delays. To protect the interests of the parties, cargo insurance is recommended, which covers the risks of loss or damage in transit. Insurance can be issued as “all risks” or “except for liability for private accident”, which is important to consider when choosing an insurer.

The consideration of carrier liability in the event of incidents is usually regulated by international conventions, such as the Hague-Visby Rules, the Hamburg Rules and others. It is important to discuss the terms of liability and insurance with the carrier in advance to avoid disagreements in the event of a loss.

4. Customs procedures and international agreements

Moving containers across borders requires compliance with customs procedures and a number of permits. International shipping is governed by agreements and conventions such as the United Nations Convention on Contracts for the International Sale of Goods and the 1972 Container Convention, making it easier to move containers.

It is important to promptly provide customs authorities with all necessary documents, including an invoice, packing list, bill of lading and certificate of origin. Errors or inaccurate information can lead to delays and, in some cases, confiscation of cargo.

5. Legal risks associated with multi-stage transportation

Multimodal transportation involves the use of several modes of transport - sea, rail, road - with frequent transshipments. For such transportation, a single multimodal contract is concluded, but each stage of the route is subject to its own legal regulation. This creates additional legal risks.

For example, when transporting by sea, the carrier may be exempt from liability for damage to the cargo caused by force majeure, while when transporting by land, his responsibility will be full. It is important to stipulate in advance the procedure for transferring risks at each stage.

6. Sanctions and export restrictions

When trading internationally, it is necessary to take into account legal restrictions and sanctions that may apply to specific countries or products. The introduction of sanctions or changes in export regulations can not only delay the delivery of cargo, but also make transportation illegal. To minimize risks, it is advisable to consult with lawyers in advance on issues of sanctions and export/import rules, especially if the cargo is sent to countries with an unstable political situation.

7. Problems related to force majeure

Force majeure circumstances, such as natural disasters, wars, strikes, can seriously disrupt the container transportation schedule. Typically, contracts include force majeure clauses that relieve the parties from liability for late delivery or loss of cargo. However, it is important to understand that such situations may incur additional costs, such as storage fees at the port, which are not always covered by insurance.

8. Arbitration and dispute resolution

Arbitration procedures are often used to resolve disputes under international contracts, which can be faster and cheaper than litigation. It is important to include an arbitration clause in the contract in advance, which will determine the jurisdiction and venue for disputes. This will avoid additional legal and financial difficulties.