International Cargo Transport Law and Dispute Resolution

Introduction

In today’s globalized trade environment, cargo transportation is a fundamental component of international logistics. However, in cross-border transport, the rights and obligations of the parties are not only determined by commercial contracts but also by international conventions and local legislation to which the parties are subject. In this article, we will examine the legal framework of international cargo transport and how disputes are resolved.

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1. Legal Framework

The applicable law in international cargo transportation varies depending on the mode of transport:

• Air Transport → Warsaw Convention (1929) and Montreal Convention (1999)
• Maritime Transport → Hague-Visby Rules (1968), Hamburg Rules (1978)
• Road Transport → CMR Convention (1956) (Turkey is a party)
• Rail Transport → COTIF Convention

These conventions regulate carrier liability limits, compensation principles in cases of damage and delay, and time limits for filing claims.

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2. Parties and Main Responsibilities

There are three main parties in international cargo transportation:

1. Shipper
   • Responsible for accurately declaring the cargo, proper packaging, and providing the necessary documents.
2. Carrier
   • Obliged to deliver the goods safely and on time.
3. Consignee
   • Responsible for inspection and signing at the time of delivery, as well as recording any damage.

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3. Delivery Terms and Transfer of Risk

In international trade, Incoterms rules define the point at which risk and costs are transferred:

• FOB (Free on Board) → Risk passes to the buyer once the goods are loaded on the vessel.
• CIF (Cost, Insurance, Freight) → The seller covers transport and insurance costs, but risk transfers at the loading point.

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4. Insurance and Protection Mechanisms

To minimize damage risk in international transport, cargo insurance is strongly recommended.

• In maritime transport, Institute Cargo Clauses are widely used.
• Insurance policies both accelerate the legal process in case of damage and minimize financial loss.

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5. Damage, Loss, and Delay

• Damage or loss → Under conventions, the carrier is liable, but liability may be limited to a certain SDR (Special Drawing Rights) per kilogram.
• Delay → Some conventions also cover damages arising from delay, but the burden of proof generally lies with the consignee.

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6. Dispute Resolution

Methods of resolving disputes in international transportation include:

1. Contractual Provisions
   • The competent court or arbitration venue should be clearly stated in the contract.
2. Convention Provisions
   • Some agreements, such as the CMR, set specific jurisdictions where lawsuits can be filed.
3. Settlement Through Insurers
   • Resolving claims through the insurance company speeds up the process.
4. Arbitration
   • Preferred in international trade for being fast and confidential.

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Conclusion

International cargo transportation is not only a logistical activity but also a complex legal process. Drafting detailed contracts before shipment, clarifying the rights and obligations of the parties, and understanding the relevant convention provisions will reduce risks and make dispute resolution more efficient.