Liability Implications of the Rotterdam Rules for Indian Dry Ports

Abstract

The carrier’s liability during the sea leg of transportation is quite unambiguous. However, the shipper’s concerns during the land leg remain yet to be adequately addressed. In India, the land leg of container transportation between gateway ports and dry ports is conducted by the road/rail transporters appointed by the carrier or the dry port operators. The inland transportation of containers, however, is governed by different legal instruments, the provisions of which are not congruent, especially with regard to the liabilities and responsibilities of the dry port operator against the carrier. Understanding such deficiency, this paper attempts to ascertain the implications of ratifying the Rotterdam Rules for India’s existing maritime law regime, especially those applicable to dry ports. We examine the maritime law regimes of different countries which are already signatories to the Rotterdam Rules and apply a similar reasoning in the Indian context. We conclude that one of the effects of ratification by India would be the reduction of ambiguities concerning the liabilities of dry port operators, being now considered a maritime performing party. Consequently, dry port operators would now be held responsible for container security and thus would be perforce to exercise due diligence in discharging its duties as a custodian of the cargoes in its charge. In addition to the efficiency gains that such development would bring about, it would be beneficial for the evolution of an appropriate container security policy for the Indian dry ports sector.