At the global level, the main providers of multi modal transport services appear to be

freight forwarders, who often do not themselves own or operate any means of transport, but arrange
for the performance of individual modal stages of transport by traditional uni modal carriers.
Increasingly, big liner shipping companies, some of which dominate the ocean trade involving
container shipments, are also expanding their services to offer transportation-from door.to-door by
engaging other carriers to perform different modal stages of a multi modal transaction.

Existing liability framework did not reflect developments that have taken place in terms of transport
patterns,technology and markets. No international uniform regime was in force to govern liability for
loss, damage or delay arising from multi modal transport. Instead, the existing legal framework
consists of a complex array of international conventions designed to regulate uni modal carriage,
diverse regional/sub regional agreements, national laws and standard term contracts. As a
consequence, both the applicable liability rules and the degree and extent of a carrier's liability vary
greatly from case to case and were unpredictable.

Legal framework under the maritime Conventions

The Hague and Hague-Visby Rules

The Hague and Hague-Visby Rules are applicable "only to contracts of carriage covered by a bill of
lading or any similar document of title insofar as such document relates to the carriage of goods by
sea" (Article I (b)), the so-called "tackle to tackle" period.

The Hague and Hague-Visby Rules do not mention multimodal carriage nor do they extend their scope
of application beyond international carriage by sea under a bill of lading. The Hague-Visby Rules apply
principally to the document covering the carriage contract i.e. the bill of lading.

Hamburg Rules
the most significant difference between the Hague / Hague-Visby Rules and the Hamburg Rules lies in
the scope Of their applications to sea carriage. The Hague and Hague-Visby Rules apply to contracts of
carriage covered by bills of lading, but only for the "tackle-to-tackle" period whilst the Hamburg Rules
contain a specific reference to multimodal transport and they apply to the entire contract of carriage
by sea.
The sea carriage contract is one of the parts which make up the larger multimodal transport. In spite
of the incorporation of other means of transport in the contract, the Hamburg Rules do not apply to
the whole of the contract. Their application is restricted to the international sea stage.

The Rotterdam Rules

The Rotterdam Rules were clearly intended to apply to the whole of a contract of carriage which
comprises a sea leg, including the stages that are to be performed by road and air. Nevertheless, the
text of the Convention does not mention multimodal transport.
Rotterdam Rules are not a true multimodal Convention. Multimodal transport (without carriage by
sea) is excluded from its scope of application, and this is why some commentators regard the
Convention as only being applicable to "wet multimodal" transport operations.

United Nations convention on Multimodel Transport of goods 1980

Although the Convention has not succeeded in attracting sufficient ratifications to enter into force, its
provisions have significantly influenced the type of legislation enacted in a number of
countries/regions.
The liability of the multimodal transport operator (MTO) for loss of, or damage to, goods as well as
delay in delivery is based on the principle of "presumed fault or neglect." That is to say that the MTO
is liable if the occurrence which caused the loss, damage or delay in delivery took place while the
goods were in his charge,unless the MTO proves that he, his servants or agents or any other person of
whose services he makes use for the performance of the contract, took all measures that could
reasonably be required to avoid the occurrence and its consequences. This provision is modelled on
article 5 (1) of the Hamburg Rules.

UNCTAD/IC Rules for Multimodal Transport Documents 1992

In the early 1990s, a set of standard contractual terms was prepared for incorporation into
commercial contracts (UNCTAD/IC Rules for Multimodal Transport Documents 1992, hereafter
UNCTAD/ICC Rules). However, as these rules are contractual in nature, they are by definition subject
to any applicable mandatory law and are thus not an effective means of achieving international
uniformity,

RESPONSIBILITIES AND LIABILITIES OF THE MULTIMODAL TRANSPORT OPERATOR (CHAPTER IV)

Basis of liability of multimodal transport operator.

(1) The multimodal transport operator shall be liable for loss resulting from-
(a) any loss of, or damage to, the consignment;
(b) delay in delivery of the consignment and any consequential loss or damage arising from such
delay, where such loss, damage or delay in delivery took place while the consignment was in his
charge:
(2) If the consignment has not been delivered within 90 consecutive days following the date of
delivery expressly agreed upon or the reasonable time, the claimant may treat the consignment as
lost.

Limits of liability when the nature and value of the consignment have not been declared and stage of
transport where loss or damage occurred is not known.
(1) liability of the multimodal transport operator to pay compensation shall not exceed 2SDR/Kg of
the gross weight of the consignment lost or damaged or 666.67 Special Drawing Rights per package or
unit lost or damaged, whichever is higher.
(2) if the multimodal transportation does not, according to the multimodal transport contract, include
carriage of goods by sea or by inland waterways, the lability of the multimodal transport operator
shall be limited to an amount not exceeding 8.33 SDR per kilogram of the gross weight of the goods
lost or damaged.

Limits of liability when the nature and value of the consignment have not been declared and stage of
transport where loss or damare occurred is known
Limit of the liability of the multimodal transport operator for such loss or damage shall be determined
in accordance with the provisions of the relevant law applicable in relation to the mode of transport
during the course of which the loss or damage occurred and any stipulation in the multimodal
transport contract to the contrary shall be void and unenforceable.

Liability of the multimodal transport operator in case of delay in delivery of goods under certain
circumstances.
Where delay in delivery of the consignment occurs under any of the circumstances or any
consequential loss or damage arises from such delay, then the liability of the multimodal transport
operator shall be limited to the freight payable for the consignment so delayed.

Assessment of compensation

Assessment of compensation for loss of, or damage to, the consignment shall be made with reference
to the value of such consignment at the place where, and the time at which, such consignment is
delivered to the consignee or at the place and time when, in accordance with the multimodal
transport contract, it should have been delivered.

Loss of right of multimodal transport operator to limit liability. -The multimodal transport operator
shall not be entitled to the benefit of limitation of liability if it is proved that the loss, damage or delay
in delivery of consignment resulted from an act or omission of the multimodal transport operator
with intent to cause such loss, damage or delay or recklessly and with knowledge that such loss,
damage or delay would probably result.
Limit of liability of multimodal transport operator for total loss of goods.

The multimodal transport operator shall not, in any case, be liable for an amount greater than the
liability for total loss of goods for which a person will be entitled to make a claim against him under
the provisions of this Act.
20. Notice of loss of or damage to goods.
(1) The delivery of the consignment to the consignee by the multimodal transport operator shall be
treated as prima face evidence of delivery of the goods as described in the multimodal transport
document unless notice of the general nature of loss of, or damage to, the goods is given, in writing,
by the consignee to the multimodal transport operator at the time of handing over of the goods to
the consignee.
(2) Where the loss or damage is not apparent, notice in writing to be given by the consignee of the
loss of, or damage to, the goods within six consecutive days after the day when the goods were
handed over to the consignee.

Period of responsibility. -The responsibility of the multimodal transport operator for the goods under
this Act shall cover the period from the time he has taken the goods in his charge to the time of their
delivery.