1. Minimizing potential losses in forwarding activities in Russia: legal view Polina Kondratyuk for ACEX Conference 12-14 September 2014 Law bureau

2. Transportation in Russia: multimodal 2

3. One forwarder is responsible for all the subsequent carriers 3

4. Only reliable and verified partners 4

5. It happens… 5

6. 6

7. 7

8. Quality of service 8 Quality = safety Quality = quick & reasonable settlement

9. Reimbursement 9

10. Local legislation 10 Russian Civil Code Law on Forwarding Activities Rules of Transportation and Forwarding Activity Motor Transport Charter Rules of Carriage of Goods by Road Railway Transport Charter + Rules of Carriage of Goods by Railway Transport Merchant Shipping Code Air law Inland Water Transport Code Opinions of Supreme Arbitrazh Court etc.

11. TRANSPORTATION CONTRACTS: forwarding 11 Mandatory written form Client shall issue POA Rules of Transportation and Forwarding Activity provide issuing of the special documents: Forwarding receipt Forwarding order Warehouse receipt The parties are free to determine contract provisions with minor exceptions

12. TRANSPORTATION CONTRACTS: carriage 12 Shall be confirmed by the transportation waybill The special forms for waybills are provided by the Rules for this type of carriage

13. Examples of defense positions with no chance to success 13 Theft of cargo, road/railway/air accidents are force majeure circumstances according to contractual provisions Carrier/forwarder shall not compensate damages to cargo inflicted by third party’s actions (example – road accident where carrier’s driver is not a breaching party)

14. Practical tips – some aspects of domestic law 14 Claims procedure Domestic law - mandatory pre-action procedure International law (i.e. CMR) – no mandatory pre- action procedure

15. Practical tips – some aspects of domestic law 15 Limitation of action Russian law – peremptory requirements, 1-year limitation period cannot be extended upon agreement of parties In some jurisdictions (i.e. UK) extension is possible

16. Practical tips 16 Liability: forwarder Cost or declared value of cargo CanNOT be reduced by forwarding agreement

17. Practical tips 17 Liability: carrier Cost or declared value of cargo (i.e. domestic road carriage) Cost or declared value of cargo, or indemnity calculation by weight (i.e. air carriage, international road transportation etc.)

18. Practical tips 18 Forwarder’s liability is often broader than carrier’s liability FORWARDER’s LIABILITY CARRIER’S LIABILITY

19. Insurance 19 cargo insurer cargo owner forwarder carrier liability insurer subrogation

20. Supreme Arbitrazh court legalized liability insurance Ruling of the Presidium of Supreme Arbitrazh court dated 13 April 2010 No. 16996/09 brought insurance of carriers’ and forwarding agents’ liability into the legal framework 20

21. The “most popular” damages For sea carriage: Water damage Damage during loading operations For air carriage: Damage during loading operations Shortage of cargo For road carriage: Road accidents Theft and fraud Damage during loading operations 21

22. SUMMARY 22

23. 23 Thank you! Law bureau www.russianlawbureau.com