United Nations Convention on the International Multimodal Transport of Goods

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The United Nations Convention on International Multimodal Transport of Goods (also known as the “Convention on Multimodal Transport” or “CMT”) is an international agreement pertaining to the transport of goods by means of one or more modes of transport (e.g., inland water, sea, air, railway or road). The CMT was adopted on 31 August 1980 and entered into force on 1 April 1984. It remains in force today.

The purpose of the CMT is to provide a uniform legal framework to regulate all aspects of multimodal transport operations, as well as to promote the development of efficient and cost-effective international multimodal transport services. The Convention sets out a number of important principles and rules governing the liability and duties of parties involved in the multilateral transportations, such as carriers, tour operators, freight forwarders and operators of storage facilities. The Convention also enables contracting countries to enter into bilateral or multilateral agreements for the purpose of implementing the provisions of the CMT.

The CMT applies to any international multimodal transport operation connecting two or more countries, in which one or more modes of transport are used from the place of departure to the place of destination. The carriage must involve at least two Contracting Parties. The transport of dangerous/hazardous goods is not excluded but is subject to additional regulations.

The CMT has four main principles:

1. Duties and Liability of Parties

The CMT stipulates that the carriers are liable for the loss of, or damage to, goods during transport. The liability of the carrier is defined and limited by the contract of carriage. The carrier is also responsible for any actions of the agents they may use in the transport, as well as for the acts or omissions of the forwarders, operators of storage facilities and any other persons employed in the carriage of goods.

2. Pre-Carriage And On-Carriage

The CMT also applies to pre-carriage and on-carriage. Pre-carriage refers to the activities that take place before the commencement of the transport (e.g., loading, unloading, handling, packing, and other activities related to the preparation of the goods for the main carriage). On-carriage refers to the activities taking place during the transport (e.g., loading, unloading, handling, packing, and other activities).

3. Sub-Contracting

The CMT stipulates that the carrier can employ agents, forwarders, operators of storage facilities and any other persons to perform activities related to the transport. These activities must always be performed under the carriers’ control and by their own employees or duly authorized agents.

4. Compliance with Domestic Laws

The CMT requires that the parties to the transport (as well as the agents and third parties) comply with the domestic laws, regulations and practices of the country in which the goods are transported.

These principles provide a uniform legal framework applicable to international multimodal transport operations, irrespective of the place of dispatch, place of delivery and choice of transport means.

The CMT is still in force today, and is recognized by over 80 countries including the US, Canada, Japan and most European Union member states. It has been widely used to settle disputes arising out of multimodal transport contracts and ensures that the rights of all parties involved are respected.

The United Nations Convention on International Multimodal Transport of Goods, also known as the Multimodal Convention, is a legal instrument concluded to unify and harmonize the rules governing the international multimodal transport of goods. The Convention was concluded on 24 May 1980 in Geneva and entered into force on 1 November 1986. The Convention applies to the transport of goods by any combination of road, rail, sea and air transport modes as well as any other mode of transport, such as inland waterways, provided that this combination involves at least two different modes of transport. As of June 2018, the Convention has 37 signatories that have either ratified, accepted, approved or acceded to it, representing all the five regions of the world.

The main aim of the Convention is to provide a common legal framework for multimodal transport operators in the global arena. In this regard, it harmonizes the applicable national laws and regulations of the different countries by creating uniform rules governing any given transport operation. Based on the principles of uniformity and legal certainty, the Convention grants recognition, to the compensation and liability regimes it sets forth, to each of the parties. Likewise, it ensures that these rules are respected, by allowing the international courts to settle disputes arising out of the transport contracts concluded in the context of the international multimodal transport.

The Convention also provides legal certainty to its signatories by establishing the proper framework for any multimodal transport operation, by setting forth the full list of the transport documents along the corresponding obligations and liability. All the multimodal operations are to be concluded with a standardized contract that is inclusive of the inherent risks and exemptions arising from the different modes of transport.

Finally, the Convention also provides for the legal representation of the multimodal transport operator by helping to identify the authorized agents for the negotiation of conditions governing the transport operations. This facilitates the communication and coordination between the involved parties, in a swift and economic way, ensuring the proper functioning of the international multimodal transport system.

In short, the Convention on International Multimodal Transport of Goods, provides an effective legal framework for the international transportation of goods, adding value, efficiency and confidence to global trade, by setting forth uniform and reliable rules that guarantee the proper and secure transportation of goods.