The limited scope of seaborne cargo liability regime: new political–economic environments in the 21 century

Since the 1920s, seaborne cargo liability regimes have introduced a small number of mandatory rules into international carriage of goods by sea, through the Hague–Visby Rules, to restrict freedom of contract. These rules worked within a limited scope to offset imperfect competition in the shipping markets. However, the recent Hamburg and Rotterdam Rules attempted to extend this scope of seaborne cargo liability regime, which seems to be more extensive than is desirable. This article compares and examines the shipping sub-sectors’ environment and maritime economics over the past century up to date. The new business patterns of the shipping sub-sectors, the rising influence of developing countries, and the containerisation are creating new shipping environments for this area of law. Compared with previous decades, imperfect competition is only found in a smaller number of areas within the shipping markets nowadays. This article argues that only a limited scope of application is needed for international seaborne cargo liability regime. Thus, these new economic and political realities call for innovative modifications to the recent rules regarding the scope of application, and future regime should refocus international uniformity on a limited scope.