B1: What is the difference between the Uniform system and the Network system in multimodal transport?

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1 A1: What is the difference between global/tonnage limitation in favour of the vessel owner and the package limitation in favour of the carrier in transport law?( try also to explain why it is called Tonnage Limitation) max 20 lines! Answer A1 :The tonnage limitation is a form of limitation for massive claims against the vessel owner in relation to damages in tort or of a contractual nature which the latter generated by the operation of his vessel.the limitation amount is related to the size of the vessel and as the size of the vessel is expressed in Tonnes one refers to Tonnage limitation. The package limitation is a form of limitation of liability for the carrier. Here the limitation amount is in relation to unit carried ;either a limitaion per unit carried on board or a limitation based on weight of the package carried on board such as 2 SDR per kilo in the HVR. A2: Why has the legislator given the benefit of limitation of liability to a maritime carrier or an overland carrier for claims the carrier owes to victims and contracting parties with whom he dealt? Why is the victim not fully compensated? max 20 lines! Answer A2: The limitation amount has nothing to do with justice but it is/ was an incentive by the Government to induce commercial people to invest in the sea-going trade which is a high risk business and investors should be encouraged to take an interest and yet not be exposed to unlimeted liabilty at the same time.also it would be almost impossible to buy proper marine insurance if the vessel owner could not limit his liability.it is a pure policy decision, detached from the justice concept, that victims are not fully compensated and this is a good reason for them to buy insurance for themselves! B1: What is the difference between the Uniform system and the Network system in multimodal transport? A uniform liability system subjects the entire multimodal transport contract to the same rules of liability, irrespective of the modes of transport that are actually used to perform the carriage. In a pure uniform liability system, the same sets of rules apply irrespective of the stage of transport during which loss, damage or delay occurs. The result is that unlocalized loss is equally governed by such a system. Under the network system a carriage convention applies only to the period of time during which the carrier is deemed to be in charge of the goods in relation to the mode of transport covered by the convention.

2 In other words, if the damage can be localized in a multimodal transport operation, the liability of the carrier for damage, which occurred during a specific leg of the transportation, will be judged on the basis of the international treaty or the local law that is applicable to such a transport leg. B2 : Discuss a serious drawback in the Network system. A drawback in the network system is that in case the damage cannot be localized, we do not know on what basis i.e. on which international treaty or on which local rules the liability of the carrier has to be assessed and especially how the limitation of liability has to be assessed. C1 : what is the limitation amount per kilo (or per unit or package) in the following transport treaties : One : CMR 1956: 8,33 special drawing rights per kilo Two : Hague Visby Rules (per package/unit and per kilo) per unit 666,67 special drawing rights, per kilo two special drawing rights Three : Montréal Convention 1999 (air law) 17 special drawing rights per kilo carried Four : the Rotterdam Rules (per package/unit and per kilo) per unit : 875 special drawing rights, per kilo weight : 3 special drawing rights Five : the UN Convention on Multimodal Transport 1980 (per package and per kilo) per unit 920 special drawing rights and 2.75 special drawing rights per kilo. C2 : The Limitation amount is (3 SDR) in the Rotterdam Rules but how much is that in your local/chinese national currency? How many Yuan? Where should you look to find the value in your own national currency of one special drawing right (SDR)? A special drawing right is an average value of a basket containing various international currencies and is managed by the International Monetary Fund. The day to day value of a special drawing right fluctuates according to the currency fluctuations of the various national currencies being part of the basket of the International Monetary Fund.

3 The actual value per day of the special drawing right(sdr) can be found on the website of the International Monetary Fund or in any financial newspaper published on a daily basis such as the Financial Times, the Herald Tribune, etc. D1: Describe the difference between a Carrier (the real carrier or the contractual carrier) and the Freight Forwarder or an Ocean Freight forwarder. The difference between a carrier (the real carrier or the contractual carrier) is the person who actually carries or transports the merchandise from the place of departure to the place of destination. To the contrary, the freight forwarder does not transport the goods nor does he assume the liabilities of a carrier. He only arranges for all the necessary formalities and contracts to be made, so that the goods can actually be transported by a carrier. The freight forwarder or the ocean freight forwarder is to be compared with an architect of a building. He is designs the building, but he is not actually building himself. D2 : What is a Transport Intergrator? The freight intergrator is a new concept which came into being with the multimodal transport industry coupled with the fleximodal transport phenomenon. The transport intergrator is a person who on a discretionay basis will make all the necessary contracts for goods to move on a multimodal transport basis. He himself is not a carrier nor a contractual carrier. He will not assume the liability of a carrier, but he will in the framework of a flexible transport contract, select the most ideal, the most inexpensive or the most efficient transport mode and make various separate contracts with actual or contractual carriers to do the job.

4 E1 : What is meant by the Nautical fault exemption in maritime transport law? The Nautical fault exemption is the first of the 17 exemptions provided by article IV (2) of the Hague Visby Rules. The exemption provides : neither the carrier nor the ship shall be responsible for loss or damage arising or resulting from : a) Act, neglect or fault of the master, mariner, pilot or the servants of the carrier in the navigation or in the management of the ship. This the carrier s major exception and also one of the most controversial exceptions of the Hague Visby Rules. It means that every time damage is caused by poor or wrongful navigation of the vessel or management of the vessel, the carrier is excused; E2 : Is the nautical fault exemption available to the carrier in the Rotterdam Rules? No F1: What is the difference between a charter-party and a transport contract covered by a traditional Bill of Lading? A charter party is a contract by which a vessel is leased to a charterer, either for a voyage, a specific time or a very long time without the owner supplying the crew members (demise charter party). A charter party is a sort of a lease agreement and is not governed by any international treaty. A transport contract is a contract in which a carrier promises/undertakes to transport certain goods/mercahnadise from point a to point b and such a transportation of a single consignment is covered by what is traditionally called a bill of lading, or these days by a non-negotiable seaway bill. A Bill of Lading is a transport contract, but does not refer to the lease of a vessel or part thereof.

5 Additionally, this type of transport is governed by a number of international treaties or local laws and there is very little freedom for the carrier to contract out his liabilities. F2: By what International Treaty are Charter Parties regulated? Or are there no International Treaties dealing with Charter Parties? There are no international treaties covering Charter Parties. G1: What are the three function of a negotiable Bill of Lading? Answer: In the first place a traditional bill of lading serves as a receipt by which the master of a vessel acknowledges the receipt on board of his vessel of a certain quantity of goods/merchandise. Secondly, the traditional bill of lading constitutes also the transport contract between the carrier and the shipper and contains all the essential data in relation to this particular transport + the general contractual conditions on the basis of which the carrier promises to execute the transport contract. Thirdly, the traditional negotiable bill of lading also incorporates the goods.this means it is a negotiable document because the document also proves title to goods and by transferring the documents one transfers also the goods. Title to goods means that the bearer of the bill of lading or the holder of the bill of lading, (if the bill of lading is established to order), can claim possession/ownership of the goods described therein. G2: What is the difference with a Bill of Lading and a Non Negotiable Sea Waybill? Answer: A traditional bill of lading is a document of title, it is a negotiable document, because it establishes ownership/possession of the goods to the bearer or the holder of the bill of lading. A non negotiable seaway bill does not have that quality. It describes the transport contract and it describes the goods and it identifies the person to whom the carrier shall deliver the goods at the end of the journey,but it is not a document of title. This means that the receiver of the cargo must not hold such a document, but must only be able to

6 prove his true identity in order for him to collect the merchandise at the port of destination. H1 :The Hague-Visby rules give 17 excuses or immunities in favor of the carrier in case of damage to the goods; give two excuses that take the form of a force majeur situation and two excuses in the form of acts done by the shipper himself. Answer: According to rule 2 of article IV Rights and Immunities the following excuses take the form of a force majeur : - fire unless caused by the actual fault or privity of the carrier; - Perils, dangers and accidents of the sea or other navigable waters; - Act of god - Act of war - Act of public enemies - Arrest or restraints rulers or people or seizure under legal process - Quarantaine restrictions - Strikes or lock-outs or stoppage or restraint of labour from whatever cause, whether partial or general - Riots and civil commotions - Latent defects, not discoverable by due diligence - Any other cause arising without the actual fault or privity of the carrier Excuses for acts done by the shipper himself. Act or omission of the shipper or owner of the goods, his agents or his representative. Wastage in bulk or any other loss or damage arising from inherent defect,quality or vice of the goods. Insufficiency of packing Insufficiency or inadequacy of marks H2 : give one excuse for acts done by the carrier for which he is being excused if these acts have resulted in damage to goods. Act, neglect or default of the master, mariner, pilot or the servants of the carrier in the navigation or in the management of the ship. Or:

7 Saving of attempting to save life or property at sea. Or: Unseaworthiness Latent defect of the ship if that defect could not be known or seen by usual inspection or: Any deviation in saving life. I1 : A Protecting and Indemnity Club is an insurance enterprise based on the principle of mutuality. What is mutuality? Why a P & I club is called a mutual? Mutually means that all the insured are at the same time also all the insurers. This means that at the same time the shipowners are the insurers, all together, in favour of all the insured shipowners. The P & I Club is called a mutual because the insurance cover is based on the principle of mutuality, i.e., all the insured are at the same time all the insurers. I2 : there is no marine insurance policy issued nor a premium charged by a P & I Club, but what comes in place of this? How do we call the amount the member has to pay? What rules govern the relations between the member and his club? Answer: The relations between the P & I Club and the member are based on the Club rules. The member has to pay a call, or an additional call in stead of a premium. The rules governing the relations between the member and his club are as a consequence the club rules. J1: What are the main functions and/or obligations of the insurance broker towards his client, the insured? The main obligations of the marine insurance broker are the following : 1) Obey his principle s instructions.

8 2) Use proper skill and care 3) Carry out the transaction 4) Effect a policy accordingly He must effect the cover with all proper skill, ensuring that all appropriate clauses are included, the risk is correctly described and value. J2: According to English law the marine insurance broker must pay the premium to the insurer(s) and he has to claim reimbursement from his client, the insured, for the payment that he made. What legal protection does the broker enjoy in order to secure this reimbursement from his client? The broker is directly responsible to the insurer for payment of premium but as a quid pro quo the broker has a possessory lien on the policy according to the section 52 and 53 of the Marine Insurance Act 1906.