Carriage of goods by multimodal transport

Multimodal transport is the carriage of goods using more than one mode of transport. It is common in international trade because buyers and sellers are often located away from ports, and buyers may require delivery from the seller’s premises to their own location. Depending on the terms of the contract of sale, such as Free On Board (FOB), Cost, Insurance and Freight (CIF), or Ex Works (EXW), the buyer or seller may need to arrange transport with different carriers at each stage of the journey.

In some cases, a single carrier or forwarder may contract with the consignor to manage the entire movement of goods. In this situation, that party accepts responsibility for transporting the cargo across all stages and is liable for its safety from origin to destination.

Each mode of transport is governed by different international conventions. To apply these conventions, separate contracts are often required for each stage of transport. When a through document of transport is used, such as a through bill of lading, the first carrier is responsible to the consignor under the main contract until delivery. The first carrier then contracts with subsequent carriers. The consignor does not usually have direct claims against subsequent carriers unless allowed by law.

This system reflects a lack of coordination between the legal frameworks that apply to different modes of transport. Important issues, such as the relationship between the cargo owner and the actual carrier, and the process for making claims, are not fully defined.

The UNCTAD ICC Rules for Multimodal Transport Documents, introduced in 1992, provide guidance on how parties can define their legal responsibilities. These rules apply only if they are included in the contract.

The UN Convention on International Multimodal Transport of Goods, adopted in 1980, aims to create a unified set of liability rules for multimodal transport involving at least two modes of transport. However, it has not entered into force.