Negotiating Modern Liner Shipping Terms

On 21 September 2006 FTA launched 'Negotiating Modern Liner Shipping Terms' - a shipper's guide. Click here for pdf of short-form brochure (members only). While many other publications provide a detailed analysis of the main liability conventions, such as The Hague and Hague Visby Rules, few, if any, are written with the shipper in mind, or give advice to shippers about how to deal with terms and conditions which are heavily weighted in favour of ocean carriers.

Negotiating Modern Liner Shipping Terms is the first guide that:

• demystifies the complex legal jargon by providing shippers with a simple legal assessment of the key terms and conditions
• identifies those clauses that are negotiable
• shows shippers how to go about the complex process of varying bill of lading terms

Because of the complexity of variation of terms and conditions, FTA recognises that shippers will require further advice and support. Therefore, in addition to the 'short-form' brochure FTA provides an easy to read more detailed legal analysis (click here members only).This should give more confidence to shippers when negotiating or discussing the question of variation of terms and conditions with ocean carriers.

The advice contained in both versions has been scrutinised and reviewed by leading maritime lawyers in the field. However, FTA advises members to take further in-house or external legal advice in the framing of contracts. If you would like further advice you can contact:

• Chris Welsh-General Manager of Campaigns
• FTA's specialist panel of legal maritime lawyers (contact Chris Welsh 01892 552308)

New developments

The work carried out by FTA in negotiating modern liner shipping terms and conditions is new, and is the first step in obtaining more equitable terms for shippers in a deregulated and more competitive liner shipping market. Because this is breaking new ground, the advice provided in the short form guide and the information on the website will be reviewed following the experience of members in negotiating and varying bills of lading terms. FTA's British Shippers' Council will also continue to provide oversight and overall direction of the project. In light of this the project will be regularly updated and the website advice based on the experiences of shippers will also be frequently updated. In particular, phase 11 of the project will include:

• recommended standard variation clauses for incorporation in bills of lading (Autumn 2006)
• phase 111 - based on the accumulation of clauses the potential development of an FTA shipper's bill of lading which marries the best aspects of The Hague, Hague, Visby and Hamburg Rules (2007-8)

UK port development

The competitive nature of the UK’s ports has seen great benefits for the UK economy. Services have become more customer focused and efficiencies have been gained.

However, the UK’s major ports are increasingly congested. The delays, costs and rejections resulting from the planning process for new port facilities are leaving shippers reliant on existing facilities. Ports such as Felixstowe, Southampton and Liverpool are experiencing congestion. This can result in delays for ships but, just as importantly, in congestion for the onward transport links - to get the goods into or out of the port on the landside. As limits are reached, either goods will not come in or will have to reroute to less convenient ports - adding time and cost to both imports and exports, hurting the UK economy.

Click here to read FTA's policy document on UK port development.

Campaign progress report

See Reform on Liner Shipping (pdf 754.6KB)

Campaign objectives		Campaign results
Secure EU Commission review of anti-trust laws (regulation 4056/86)		Secured influential OECD report supporting repeal of anti-trust immunity after 2 year inquiry
		EU Competition Commission started to review EU anti-trust block exemption
		Secured Commission hearing and agreement to proceed with a white/green paper
		Obtained the support of the Consumers Association to reform 4056/86
Secure EU Court ruling upholding complaints and Commission decisions (TAA/FEFC) cases		CFI upholds TAA/FEFC case decisions and awards costs to FTA
		Ship owners’ decline to appeal CFI ruling to ECJ due to strength of CFI decisions
Attempt negotiated settlement in outstanding legal case		Discussions to take place with ship owners' lawyers
Uphold original CFI Court judgement about TACA appeal		CFI rejects ship owners' appeal and upholds Commission decision
		Obtained the support of the Consumers Association who will make their own intervention
		Commission research from World Trade Institute
Key

	Success in campaign objective or action		On-going actions to achieve campaign objectives
	New campaign objectives and actions		Campaign objectives that have not been achieved or where campaign objectives have been modified

Last updated: Thu Jun 14 09:43:22 2007