How do multi-modal transport arrangements influence liability for shipments?

How do multi-modal transport arrangements influence liability for shipments?

• A. They involve multiple carriers and regimes; liability is uniform across legs.
• B. They involve multiple carriers and regimes; liability may be allocated across legs via the governing contract forms and international conventions applicable to each mode.
• C. Liability is determined solely by the first carrier.
• D. Liability is never allocated; each leg is independent.

Answer: (B)

In multi-modal shipments, liability is not a single blanket rule because the journey is made up of separate legs, each potentially governed by a different liability regime. The contract of carriage for each leg together with the international conventions that apply to that mode determine who bears liability and to what extent. For example, a sea leg is typically governed by a regime like Hague-Visby or Rotterdam Rules with its own liability limits, a road leg by CMR with its own limits, a rail leg by CIM/OTIF, and an air leg by the Montreal Convention. A multimodal transport contract links these legs and sets out how liability is shared or allocated across them. So, the overall liability for a shipment is built from the applicable regimes for each leg and the governing multimodal contract, rather than being uniform across the entire journey. This is why liability may be allocated across legs via the forms of contract and the international conventions applicable to each mode.

In multi-modal shipments, liability is not a single blanket rule because the journey is made up of separate legs, each potentially governed by a different liability regime. The contract of carriage for each leg together with the international conventions that apply to that mode determine who bears liability and to what extent. For example, a sea leg is typically governed by a regime like Hague-Visby or Rotterdam Rules with its own liability limits, a road leg by CMR with its own limits, a rail leg by CIM/OTIF, and an air leg by the Montreal Convention. A multimodal transport contract links these legs and sets out how liability is shared or allocated across them. So, the overall liability for a shipment is built from the applicable regimes for each leg and the governing multimodal contract, rather than being uniform across the entire journey. This is why liability may be allocated across legs via the forms of contract and the international conventions applicable to each mode.