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Study Guide

International Carriage of Goods

Learning Objectives

  • Identify the main international conventions governing carriage of goods by sea and outline the liability framework each establishes.
  • Describe the key features of the air waybill and explain how it differs from a bill of lading.
  • Outline the purpose of multimodal transport arrangements and explain the role of UPU standards (CN22, CN23, EAD) in customs compliance.

Learning Objectives

·        Identify the main international conventions governing carriage of goods by sea and outline the liability framework each establishes.

·        Describe the key features of the air waybill and explain how it differs from a bill of lading.

·        Outline the purpose of multimodal transport arrangements and explain the role of UPU standards (CN22, CN23, EAD) in customs compliance.

A key element of international trade is the carriage of goods from one country to another. Carriage may occur by sea, air, road, or rail. Each mode is governed by complex legal rules that determine the rights and liabilities of the party undertaking the movement — the carrier.

These rules are established both by common law (mercantile practice) and by international conventions incorporated into national law. Such laws impose mandatory requirements on carriers that cannot be excluded by contract.

International sales necessitate the transportation of goods by one or more modes. Incoterms® allocate responsibilities based on the mode or modes of transport. When carriage involves:

  • Only one mode, it is called unimodal transport.
  • When it involves two or more modes, it is called multimodal transport.

The distinction between unimodal and multimodal transport is important for two reasons. It reflects the complexity of the transaction, and it affects how responsibilities are allocated between the parties. Different transport modes may also be governed by different international conventions and customs requirements.

The size and nature of the cargo largely determine the mode of transport. Large bulk shipments are typically moved by sea, as it is more cost effective. When fast delivery is required, air transport may be used, although it is limited by size and cost.