Container Depot as a Performing Party under the Rotterdam Rules

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Question from O.W.:
Dear Mr. Lee,
With respect and pleasure always to read your articles in DCI. I noticed in the latest issue (Spring [2010]) that you mentioned "the container yard and the container freight station were not parties to a contract of carriage by sea..." I am wondering whether the statement is wrong spelled. CY and CFS are both places to handle FCL or LCL. How come they become parties? Anyway, I can guess what you mean here.
Please clarify if my guess is right. Thanks for that.
Best regards
O.

Response from T.O. Lee:

Dear O.,

A contact of carriage made under the Hague/Visby Rules or the Hamburg Rules, such as a port-to-port bill of lading, is made between the shipper and the actual carrier that provides the means of carriage, the cargo ship for sea carriage. Depending on the terms of carriage printed at the back of the bill of lading, it should also cover the consignee and endorsee (named as "merchants") as parties to the contract of carriage.

The container depot, according to its function, is divided into two parts, (a) the container yard (CY for handling FCL stowage) and (b) the container freight station (CFS for handling LCL stowage). They are only contractors to the carrier, under a separate contract with the carrier, not involving the shipper or the consignee. Hence the container depot is not a party in the bill of lading according to the Hague/Visby Rules or Hamburg Rules. As a result, the consignee cannot claim directly to the container depot in case the carrier goes bankrupt as there is no contractual relationship between the consignee and the container depot.

Therefore, under the Hague/Visby Rules or Hamburg Rules, the shipper or consignee has to claim firstly on the carrier, failing which to the cargo insurance company, but not directly to the container depot. The carrier or the cargo insurance company (after subrogation to claim in the name of the consignee) may counter-claim on the container depot after meeting claims from the consignee.

Now under the Rotterdam Rules, the container depot is also a "performing party" to the contract of carriage such as a port-to-port bill of lading. That means the consignee can claim directly to the container depot for any damage made by the container depot. The purpose is to add contractual responsibilities to this service provider. This is to ensure that in case the carrier declares bankruptcy, the consignee can also claim on the container depot under the bill of lading that is subject to the Rotterdam Rules.

This is what I really mean.

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Best regards,

T. O.

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