montreal conven and warsaw conven.pdf

8/17/2019 Montreal Conven and Warsaw conven.pdf

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FIATA Congress 2004 / AFI

Montreal Conventionreplaces

Warsaw Convention

Thomas Gutruf Kuehne + Nagel Management AG

Nacora Holding AG


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History

• Montreal Convention = new international treaty concerning airfreight

• Replaces Warsaw Convention in the participating countries• Signed already on 28.05.1999

• Coming into force only 60 days after the 30th ratification

• In force since 04.11.2003

• First important participants: Japan, Canada, USA

• On 28.06.2004 in force in all countries of (old) EU

• Full countries list attached


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Changes – liability basis

Warsaw Convention

• Liability based on negligence

• Exoneration from liability for allkinds of claims:

Montreal Convention

• Strict liability based on possession

• Exoneration from liability only incase of:

- inherent vice of goods- defective packing by person

other than carrier- act of war - act of authority in connection

with entry / exit of cargo

all necessary measures toavoid loss have been taken,or could not be taken


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Changes – liability basis

Warsaw Convention

• Exoneration from liability for allkinds of claims:

Montreal Convention

• Exoneration from liability for delay:

- all measures taken which couldbe reasonably required, or

could not be taken

all necessary measures to

avoid loss have been taken,or could not be taken

• Additional exoneration for all kindsof claims:

- Damage caused / contributedby wrongful act of claimant


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Changes – Extent of liability

Warsaw Convention

• Liability for:

Montreal Convention

• Liability for:

- loss of goods

- financial loss followingloss of goods

- delay

- pure financial loss

- loss of goods

- financial loss followingloss of goods

- delay

• No liability limits in case thatno AWB was issued

• Limited liability even if no AWBwas issued


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Changes – limits of liability

Warsaw Convention

• USD 20,00 / kg (e.g. Asia Pacific)• National transfer laws• Gold value (some countries)

Montreal Convention

• 17 SDR / kg


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Changes – breaking the liability

limits

Warsaw Convention

• Unlimited liability in case of:

Montreal Convention

• always 17 SDR / kg

- intent

- recklessly and with know-ledge that damage wouldprobably result


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List of contracting states as per march 2005

• Denmark• Egypt• Estonia• Finland• France• Gambia• Germany• Greece• Hungary• Iceland• Ireland

• Italy• Japan• Jordan• Kenya

• Kuwait• Latvia• Lithuania• Luxembourg• Macedonia• Malta• Mexico• Monaco• Mongolia• Namibia• Netherlands

• New Zealand• Nigeria• Norway• Panama

• Paraguay• Peru• Portugal• Romania• Qatar • St. Vincent• Saudi Arabia• Slovakia• Slovenia• Spain• Sweden

• Syria• Tanzania• Tonga• United Arab Emirates

• United Kingdom• USA

• Albania• Austria• Bahrain• Barbados• Belgium• Belize• Benin• Botswana• Bulgaria• Cameroon• Canada

• Cape Verde• Colombia• Cyprus• Czech Republic


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Practical suggestions from a FF’s point of view

1. Extend of Applicability

Consolidation De-Consolidation

Air Transportation

On-CarriagePre-Carriage

Airport ofDeparture

Airport ofDestination

If „Airfreight“ is logically the main content of the contract between customerand FF: One liability regime must be applicable for the totality of theservice rendered.


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Conditions of Contract in the HAWB (FF) orin the neutral IATA AWB must be explicitlyamended.

If not, the following can happen:


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Consolidation De-Consolidation

Air Transportation

Pre-Carriage On-Carriage

Airport ofDeparture Airport ofDestination

= Full Liability of the FF according to national laws


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Practical Suggestions

2. Subcontractors

Apart from the airline, the subcontractors of the FFhave to be selected even more careful. If possible,

17 SDR according to Montreal should be agreed.Insurance policies of the subcontractors have to bechecked regularly in order to avoid shortfalls inrecovery.


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3. Transport Operators Liability Policy of the FF

To be on the safe side, legal liability according tonational laws must be insured (make the policies“Montreal compatible”).

4. Cargo Insurance

The fact of the 17 SDR strict and limited liability:Customers must be informed. At the same time,cargo insurance can be sold to costumers(door/door), both for their and the FF’s protection.


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5. Customer Information

• not only the conditions of contract in the HAWBshould be amended

• in addition the FF should inform all airfreightcustomers in writing about the extension to “allcarriage” / “all other services”

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