Because of the general reluctance to ratify the MT Convention, the international community decided to introduce an interim measure, which would assist traders and transport providers to conduct efficient multimodal transport operations during the period until the MT Convention enters into force. Consequently, UNCTAD, together with the commercial parties, represented by the International Chamber of Commerce, formulated a set of rules for voluntary application between the parties to a multimodal transport contract. These new rules are called the UNCTAD/ICC Rules for Multimodal Transport Documents, which came into force in January, 1992.
The Rules are available for world-wide application and are acceptable to the international banking community being fully compatible with the latest revision of the ICC Uniform Customs and Practice for Documentary Credits (UCP - ICC 500). However, the Rules only cover a part of the customary contents of a multimodal transport contract. An MTO wishing to use the Rules as the basis for his multimodal
transport contract must add other clauses dealing with certain matters to satisfy his particular needs.
The UNCTAD/ICC Rules consist of thirteen rules. Many of these rules are the same as the MT Convention and the most significant differences are predictably in the provisions relating to the limits of liability of the MTO.
Under the Rules, the MTO is liable for loss of or damage to the goods or delay in the delivery of the goods if the occurrence causing the loss or damage or delay in delivery took place while the goods were in his charge unless he can prove that no fault or neglect of his own or his servants or agents was responsible for the occurrence or contributed to it. The liability for delay in delivery of goods is operative only if the shipper has made a declaration about his interest in the timely delivery, which has been accepted by the MTO. An MT document can be either negotiable or non-negotiable as per the requirements of the consignor.
The limits of liability of the MTO in the UNCTAD/ICC Rules is 8.33 SDR per kilogram of the goods lost or damaged, if the multimodal transport did not include sea transport. If sea transport was included in the MT contract, the liability of the MTO is lowered to 667.67 SDR per unit or 2 SDR per kilogram of the goods lost or damaged and this is the same as the limits of liability laid down in the Hague Rules. In the Hamburg Rules the liability of the carrier would be 835 SDR per unit or 2.5 SDR per kilogram of the goods lost or damaged. In case of loss resulting from delay in delivery of goods the MTO’s liability is limited to the amount of freight payable for the goods and the aggregate liability for loss, damage or delay would not exceed the limits of liability for total loss of the goods.
If the loss of or damage to goods could be localised to a certain leg, the shipper could claim a higher liability as permitted in the law applicable to the particular segment, whereas if the loss or damage could not be localised, the claim would be on a uniform basis as mentioned above. The MTO would lose the right to limit his liability, if the claimant could prove that the loss of or damage to the goods or delay in delivery resulted from an act or omission of the MTO done with the intent
to cause such loss, damage or delay or recklessly and with knowledge that such loss, damage or delay would probably result.
As a temporary and transitional measure, the UNCTAD/ICC Rules are intended to bridge gaps or make some compromises between the MT Convention and the existing unimodal regimes. For instance, the higher limit of liability for the MTO under the MT Convention, which is slightly higher than that in the Hamburg Rules, has been lowered to the limit of liability in the Hague-Visby Rules. As a result, it might be more acceptable to the MTOs, many of whom are major shipowners. The exceptions in the Hague Rules of errors in navigation and management of the vessel, which might be good grounds for shipowners to escape liability for loss of or damage to the goods, and which were removed in the Hamburg Rules, have been brought back in the UNCTAD/ICC Rules. This, again, is an intention of being more realistic in today’s context for multimodal transport by being more in the shipowners’ interests.
On the whole, these Rules, which constitute a model contract for multimodal carriage, are trying to be more commercial and more practical in application. They are also fully compatible with other international laws and take into account different laws and regulations at a national level. They reproduced the MT Convention to a large extent; therefore, if they prove to be successful in practice, the MT Convention will be given new impetus to become effective sooner in practice.