Eastern European Shippers

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(No Transcript)
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Eastern European Shippers

• Legal Aspects

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Scenario

• Eastern European performing carriers becoming
  increasingly common
• Cargo contract of carriage with large,well-known
  Western freight forwarder
• Carriage or part of it is subcontracted to
  Eastern European haulier

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Freight Forwarders offer
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CMR issued
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Cargo

• Recourse against Western carrier under the CMR
  (or NSAB 2000)
• Substandard carriers lead to more claims

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Freight Forwarders Liability Insurers

• Often liable as contractual carriers
• Defence of insured more difficult
• Access to information
• Gathering information
• Witness participation

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Freight Forwarders Liability Insurance

• Recovery from performing carrier more difficult
• Jurisdiction governed by the CMR
• New proceedings in new jurisdictions
• Chapter VI rarely applicable

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Freight Forwarders Liability Insurance

• Jurisdiction
• Carriage Oslo Moscow
• Sties contracts whole carriage with cargo
• Sties carries to Stockholm
• Carried by ferry across the Baltic
• OOO ROSTRANSBIZNEZ subcontracted for Tallin
  Moscow leg
• Temperature damage

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Freight Forwarders Liability Insurers

• Jurisdiction contd
• Cargo sues Sties in Norway, where contract with
  Sties was made, Sties has their headquarters and
  took the goods into their custody for carriage
• Sties sues Rostransbiznez...where?
• Jurisdiction under the CMR
• Jurisdiction under the Lugano Convention?
• New evidence
• Different application of the law

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Freight Forwarders Liability Insurers

• Substandard carriers and substandard insurance
• Claims handling inefficient
• Different approach
• No-risks policies

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Freight Forwarders Liability Insurance
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Freight Forwarders Liability Insurers

• Cooperation with insured
• Set-off
• Arrest of trucks and trailers

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Solutions

• Conditions for cover
• Subcontractors must fulfil minimum standards
• ...and so must their insurance
• Clauses regarding set-off?
• Risk Management
• Advice to insureds how to plan and subcontract
  carriages

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Solutions

• Build difficulties in recoveries into the policy
• Higher premium
• Co-insure subcontractor?