The Multimodal Transportation Act (No.2 of 2021) (MTA) took effect on 28 November 2021 and is Singapore's first piece of law addressing multimodal transportation. The MTA takes effect to Singapore's ratification of the 2005 ASEAN Framework Agreement on Multimodal Transport (AFAMT) on 29 October 2021. After all ten ASEAN nations have approved the agreement, the AFAMT aspires to create a single, unified framework for multimodal transport of products within ASEAN via a Multimodal Transport Contract (MTC). As of the date of this Starboard article, eight of the ten ASEAN member states had ratified the AFAMT.
The MTA will apply to the carriage of goods by at least two distinct modes of transport within a single MTC where the origin and/or destination of the goods delivery are ASEAN member states, provided that the Multimodal Transport Operator (MTO) is registered with the competent national body established in the ASEAN member states. The MTA defines the various modes of transport as road, train, inland waterways, sea, and air. The MTA will apply to the MTO, its servants, agents, and any other person who provided services to the MTO in connection with the MTC. Starboard readers should take note of the MTA's essential characteristics, which include the following:
Multimodal Transport Operators Registration
Singapore's competent national body is the Land Transport Authority (LTA). On 28 November 2021, the LTA created the Singapore AFAMT Registry of Multimodal Transport Operators (Singapore AFAMT Registry). While registration with the Singapore AFAMT Registry is entirely voluntary, MTOs that do so will be able to take use of the AFAMT's advantages and will be covered by the MTA.
Document on Multimodal Transportation
The Multimodal Transport Document (MTD) is a single transport document that is signed and provided by the MTO or its agent to the consignor of the goods when the MTO takes possession of them. A MTD may be issued in either negotiable or non-negotiable form at the consignor's discretion and serves as prima facie proof that the MTO has taken possession of the goods.
MTOs' Duties and Responsibilities
The MTO serves as principal for the products and takes over the MTC's responsibilities. The MTO's term of obligation begins when the MTO takes possession of the commodities subject to the MTC and ends when the products are delivered. MTOs are accountable for any act or omission that results in the loss, damage, or delay in delivery of goods within the period of responsibility. This establishes a uniform standard of culpability for all types of conveyance. In this regard, the MTO must have insurance, a bond, a guarantee, or other financial arrangements in place to cover payment for any claim arising from the loss, damage, or delay in delivery of goods covered by an MTC, as well as any contractual risk assumed by the MTO in connection with the performance of carriage of any goods covered by the MTC.
Consignors' Duties and Responsibilities
The consignor is assumed to have assured the MTO that all details provided in the MTD, including, but not limited to, the hazardous nature of the items, are correct at the moment the MTO accepts the products. Any loss incurred as a consequence of lack of particulars or information will result in the consignor indemnifying the MTO.
Liability Restrictions for MTO
The MTO's obligation will not exceed 666.67 SDR per package or shipping unit of lost or damaged goods, or 2.00 SDR per kilogram of gross weight of lost or damaged goods. Additionally, if the MTO does not offer sea transportation, responsibility is restricted to 8.33 SDR per kilogram of gross weight lost or damaged. However, if it is established that the loss, damage, or delay in the delivery of goods was caused by an act or omission of the MTO with the intent to cause such loss, damage, or delay or recklessly with knowledge that such loss, damage, or delay was likely to occur, the MTO will not be entitled to the MTA's limitation of liability provisions.
Timer
The typical time limit is nine months from the date of delivery of the MTC-covered items. If goods are not delivered within nine months of the date on which they should have been delivered or after the date on which there is a delay in delivery, the consignee of the goods has the right to deem the items as lost.
In the aftermath of the COVID-19 epidemic, attempts to integrate and harmonize existing regulations are both lauded and acknowledged. The MTA will enable Singapore to preserve its competitive edge and expand prospects for ASEAN logistics companies. Transport intermediaries and insurers should get competent legal counsel on their MTA-related rights, obligations, and liabilities.
Comments