The role of transport in international trade
Transcript of The role of transport in international trade
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THE ROLE OF TRANSPORT IN INTERNATIONAL TRADEMtl 2019/2020, lecture 1
2 March 2020
Doc. Iva Savić
Department for Maritime and Transport Law
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NO. 1
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THE WORLD’SBUSIEST PORTS IN2019No. 1. sea port: Shanghai, PRC
7 out of TOP 10 situated in China
15 out of TOP 20 situated in East Asia
Only 3 European ports in TOP 20
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INTRODUCTION
• Social category
• Economic category
• Transportation: movement of goods, people and animals
• Transportation services: moving (those objects) from one location to another by air, rail, road, sea, cable, space, or pipeline
/incl.operations regarding that transportation
/incl. Communications
• Logistics – includes integration of packaging of goods, storage, transportation and handling goods
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TRANSPORT MODES
water/sea road rail air
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WHICH ISSUES DOESTRANSPORT LAW DEAL WITH?
• 1. International public law
• 2. International private law
• 3. Competition law
• 4. Administrative law
• 5. Criminal law
• 6. Consumer protection
• 7. Environmental law
• 8. Social sciences/law
…extremely multidisciplinary!
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INTERNATIONAL - GLOBAL TRADE
• International trade > transit of goods > consumer
transport
insurance
Sales
Freight
forwarder
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INTERNATIONAL SALES OF GOODS
• Domesticv. International sales*distance!
> (legal) insecurity
transport
taking delivery of good
payment method – documentary credits
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SALES CONTRACT
• SELLER:
1. Delivers goods
2. Hands in documentation
3. Transfers property to buyer
• BUYER:
1. Pays the price
2. Takes delivery of the goods
• DELIVERY OF GOODS
➢ RISK TRANSFER
➢ FULFILMENT OF SELLER’S OBLIGATION
* WHERE and WHEN is this obligation fulfilled in intl. sales?
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CISG
• United Nations Convention on Contracts for the International Sale of Goods, 1980
(IF applied)
Contract freedom
• INCOTERMS = International Commercial Terms
> Minimising the risk of the conflict between parties (language barriers, knowing lawsand customs in foreign markets, etc
> Easing interpretation of the agreement
> Offering legal certainty to parties
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INCOTERMS
• Author: International Chamber of Commerce (ICC), Paris
• Issued since 1936 – new editions…> 2020 edition
• Part of a sales contracts
• critical point of each clause the moment of transferring the risk from the seller to buyer > e.g. alongside ship, free on board etc.
• waterborne clauses (4)/ used in all transport modes (7)
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WATERBORNE - SUITABLE FOR MARITIME TRANSPORT ONLY
• FAS - Free Alongside Ship (named loading port)
• FOB – Free On Bord (named loading port)
• CFR – Cost and Freight (named destination port)
• CIF - Cost, Insurance, Freight (named destination port)
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SUITABLE FOR ALLTRANSPROT MODES
• EXW- Ex Works
• FCA – Free Carrier (named place of delivery)
• CPT – Carriage Paid To (named place of destination)
• CIP – Carriage and Insurance Paid to (named place of destination)
• DAP – Delivered at Place (named place of destination)
• DPU – Delivered at Place Unloaded (
• DDP – Delivered Duty Paid (named place of destination)
•https://youtu.be/7g7IC4IzjDM
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TRANSPORT INSURANCE
• Marine Insurance –follows growth of cargo shipping and technologicaldevelopment of maritime transport
• Insuring a variety of material interest involved in transport chain
• Marine insurance– special legal regime, specific institutes