Law7070 International Trade Law And Assessment Answers
Questions:
On September 1, 2015 Road Hauliers was engaged by Vegetable Growers to transport 10,000 kilograms of oriental vegetables from Singapore to London, England. Road Hauliers transported the oriental vegetables by road vehicle from Singapore to Beijing, China. At Beijing the road vehicle was driven onto a cargo airplane which flew from Beijing, China to Paris, France. At Paris the road vehicle was driven off the cargo airplane and by road to Calais, France. At Calais the road vehicle was driven onto a cargo ship which sailed from Calais to Dover, England. At Dover the road vehicle was driven off the cargo ship and by road to London, England, the final destination of the oriental vegetables. There was no delay in the transportation of the oriental vegetables by Road Hauliers. It was entirely accomplished by means of roll-on, roll-off haulage. The actual value of the oriental vegetables was not declared by Vegetable Growers; however, the currency of both the international sale of goods contract and the contract of affreightment were expressed in British Pound Sterling (UK£).
Assume the following facts:
(1) China and France have both ratified the Montreal Convention;
(2) France and the UK have both adopted the Hague Visby Rules in their respective COGSAs;
(3) the UK has adopted the CMR Convention in its national legislation.Ignore any limitation period, if applicable.
Further assume that when the oriental vegetables arrived in London that 25% of them had spoiled and could not be used for human consumption.
What remedies, if any, do the British grocery chains have and against whom if:
- The fruit was spoiled from Singapore to Beijing?
- The fruit was spoiled from Beijing to Paris?
- The fruit was spoiled from Paris to Calais?
- The fruit was spoiled from Calais to Dover?
- The fruit was spoiled from Dover to London?
Answers:
What remedies, if any, do the British grocery chains have and against whom if:
The fruit was spoiled from Singapore to Beijing?
The vegetables were transported from Singapore to Beijing by road vehicle, assuming 25% vegetables was spoiled the remedies that British grocery chains. CMR Convention provides for transportation of cargo by roads (Clarke, 2014). While majority European countries and other countries in the world are parties to the agreement, China and Singapore are not.
Figure 1 : CMR Countries
Source : (Clarke, 2014)
Though UK as adopted CMR as a part of its legislation, the grocer cannot make any claim to SDR for the part of goods that has been destroyed while transporting in this phase of the journey. Hence, this proportion will be assumed to be sheer loss and aproportioned accordingly.
The fruit was spoiled from Beijing to Paris?
China and France have both adopted the Montreal Convention which provides remedies for damages for loss in air transport. Under this provision air carrier transiting the cargo has liability for proven damages up to 100,000 SDR or GBP 110,113.24 (DeMay, 2008). The company can raise the claims from Road Hauliers due to their significant ignorance inspite of having the knowledge regarding the cargo. They should have taken precautionary measures to prevent damages of any types. However claims more than that amount might not be settled by the airline. Hence, the British grocer can raise its claim and ask for SDR remedies.
The fruit was spoiled from Paris to Calais?
The cargo was driven from Paris to Calais and France has adopted CMR conventions. Under this agreement the party can claim remedies and ask to compensate for loss to damaged goods (Burkovskis, 2008). The minimum amount that the British grocer can claim from this loss is 8.33 SDR or GBP9.17 per kilogram of goods damaged along with carriage charges, customs duties and other charges incurred in full or in proportionate amount. As per the rules and changes in the CMR conventions parties suffering the loss can claim for remedies and get the same back.
The fruit was spoiled from Calais to Dover?
France and UK have both adopted The Hague-Visby Rules in the CAGSAs which governs international carriage of goods by sea (Margetson, 2008). Under this rules, carrier has the duties of proper handling and discharging of goods. In case the British grocer claims for remedies for damages incurred the bill of landing will act as a receipt against which remedies needs to be arranged. While transportation of goods it is the sole responsibility of the carrier company to maintain standards and quality of goods or cargo being carried such that they are fresh and consumable in nature.
The fruit was spoiled from Dover to London?
UK has adopted CMR Convention hence according to which it covers all issues for transporting cargo by road. British grocer can claim for damages for the loss caused by transportation by land by an amount of 8.33 SDR per kilogram or GBP 9.17 per kilogram of damaged goods. The goods on reaching London were found to be 25% damaged hence the grocer can raise the claim from Road Haulers for the amount accordingly. There were no delays in goods caused hence there was no loss from the same. But the damaged condition of goods raises concerns and remedies can be claimed for such issues.
Reference List
Burkovskis, R. (2008). Efficiency of freight forwarder's participation in the process of transportation. Transport, 208-213.
Clarke, M. A. (2014). International carriage of goods by road: CMR. CRC Press.
DeMay, J. E. (2008). Recent developments in aviation law. J. Air L. & Com., 131.
Margetson, N. J. (2008). Liability of the carrier under the Hague (Visby) Rules for cargo damage caused by unseaworthiness of its containers. The Journal of International Maritime Law, 159-161.
