A Review on IATA Condition of Carriage

“Condition of Carriage” designed by IATA, is the summery of all conventions which IATA believe to be best for all Airlines to follow. This condition of carriage reflected in “RESOLUTION 600b for condition of contract” by IATA.

This “condition of contract”, as mentioned in the resolution, is derived from Warsaw Convention 1929, Hauge protocol 1955, Montreal Protocol 1975 (1, 2, 4) and Montreal Convention 1999. They are the best rules, as per IATA, that the airlines is better to implement and follow.

Some important points of this conditions are as below:

At the beginning states that, It is agreed that the goods described herein are accepted in apparent good order and condition (except as noted) for carriage SUBJECT TO THE CONDITIONS OF CONTRACT ON THE REVERSE HEREOF. ALL GOODS MAY BE CARRIED BY ANY OTHER MEANS INCLUDING ROAD OR ANY OTHER CARRIER UNLESS SPECIFIC CONTRARY INSTRUCTIONS ARE GIVEN HEREON BY THE SHIPPER, AND SHIPPER AGREES THAT THE SHIPMENT MAY BE CARRIED VIA INTERMEDIATE STOPPING PLACES WHICH THE CARRIER DEEMS APPROPRIATE.

Point No.4 is for limit of compensation, declares that, For carriage to which the Montreal Convention does not apply, Carrier’s liability limitation for cargo lost, damaged or delayed shall be 19 SDRs per kilogram unless a greater per kilogram monetary limit is provided in any applicable Convention or in Carrier’s tariffs or general conditions of carriage.

Point 5.1 states, Except when the Carrier has extended credit to the consignee without the written consent of the shipper, the shipper guarantees payment of all charges for the carriage due in accordance with Carrier’s tariff, conditions of carriage and related regulations, applicable laws (including national laws implementing the Warsaw Convention and the Montreal Convention), government regulations, orders and requirements.

Point 5.2 states, When no part of the consignment is delivered, a claim with respect to such consignment will be considered even though transportation charges thereon are unpaid.

Point 7.1 states, In cases of loss of, damage or delay to part of the cargo, the weight to be taken into account in determining Carrier’s limit of liability shall be only the weight of the package or packages concerned.

Point 7.2.1. talks about the weight that is considered for compensation as per US regulations, sates that, in the case of loss of, damage or delay to a shipment, the weight to be used in determining Carrier’s limit of liability shall be the weight which is used to determine the charge for carriage of such shipment; and

 

Point 7.2.2 states that, in the case of loss of, damage or delay to a part of a shipment, the shipment weight in 7.2.1 shall be prorated to the packages covered by the same air waybill whose value is affected by the loss, damage or delay.  The weight applicable in the case of loss or damage to one or more articles in a package shall be the weight of the entire package.

 

Point 10.1.1 states that, in the case of damage to the cargo, immediately after discovery of the damage and at the latest within 14 days from the date of receipt of the cargo;

 

Point 10.1.2, in the case of delay, within 21 days from the date on which the cargo was placed at the disposal of the person entitled to delivery.

Point 10.1.3, in the case of non-delivery of the cargo, within 120 days from the date of issue of the air waybill, or if an air waybill has not been issued, within 120 days from the date of receipt of the cargo for transportation by the Carrier.

Point 10.2 states that, Such complaint may be made to the Carrier whose air waybill was used, or to the first Carrier or to the last Carrier or to the Carrier, which performed the carriage during which the loss, damage or delay took place.

 

10.4        Any rights to damages against Carrier shall be extinguished unless an action is brought within two years from the date of arrival at the destination, or from the date on which the aircraft ought to have arrived, or from the date on which the carriage stopped.

  1. Shipper shall comply with all applicable laws and government regulations of any country to or from which the cargo may be carried, including those relating to the packing, carriage or delivery of the cargo, and shall furnish such information and attach such documents to the air waybill as may be necessary to comply with such laws and regulations. Carrier is not liable to shipper and shipper shall indemnify Carrier for loss or expense due to shipper’s failure to comply with this provision.

Here we can see that shipper is responsible for declaring the shipment to customs and the packing requirements also should be met. He should attach appropriate documents to the AWB and carrier is not responsible to check them.