Convention on a Code
of Conduct for Liner Conferences
(Geneva, 6 April 1974)
OBJECTIVES AND PRINCIPLES
THE CONTRACTING PARTIES TO THE PRESENT
DESIRING to improve the liner conference
RECOGNIZING the need for a universally
acceptable code of conduct for liner conferences,
TAKING into account the special needs
and problems of the developing countries with respect to the activities
of liner conferences serving their foreign trade,
AGREEING to reflect in the Code the
following fundamental objectives and basic principles:
(a) the objective to facilitate the orderly
expansion of world sea-borne trade;
(b) the objective to stimulate the development
of regular and efficient liner services adequate to the requirements of
the trade concerned;
(c) the objective to ensure a balance of interests
between suppliers and users of liner shipping services;
(d) the principle that conference practices
should not involve any discrimination against the shipowners, shippers
or the foreign trade of any country;
(e) the principle that conferences hold meaningful
consultations with shippers' organizations, shippers' representatives and
shippers on matters of common interest, with, upon request, the participation
of appropriate authorities;
(f) the principle that conferences should
make available to interested parties pertinent information about their
activities which are relevant to those parties and should publish meaningful
information on their activities,
HAVE AGREED as follows:
Liner conference or conference : A
group of two or more vessel-operating carriers which provides international
liner services for the carriage of cargo on a particular route or routes
within specified geographical limits and which has an agreement or arrangement,
whatever its nature, within the framework of which they operate under uniform
or common freight rates and any other agreed conditions with respect to
the provision of liner services.
National shipping line : A national
shipping line of any given country is a vessel-operating carrier which
has its head office of management and its effective control in that country
and is recognized as such by an appropriate authority of that country or
under the law of that country.
Lines belonging to and operated by a joint
venture involving two or more countries and in whose equity the national
interests, public and/or private, of those countries have a substantial
share and whose head office of management and whose effective control is
in one of those countries can be recognized as a national line by the appropriate
authorities of those countries.
Third-country shipping line : A vessel-operating
carrier in its operations between two countries of which it is not a national
Shipper : A person or entity who has
entered into, or who demonstrates an intention to enter into, a contractual
or other arrangement with a conference or shipping line for the shipment
of goods in which he has a beneficial interest.
Shippers' organization : An association
or equivalent body which promotes, represents and protects the interests
of shippers and, if those authorities so desire, is recognized in that
capacity by the appropriate authority or authorities of the country whose
shippers it represents.
Goods carried by the conference : Cargo
transported by shipping lines members of a conference in accordance with
the conference agreement.
Appropriate authority : Either a government
or a body designated by a government or by national legislation to perform
any of the functions ascribed to such authority by the provisions of this
Promotional freight rate : A rate instituted
for promoting the carriage of non-traditional exports of the country concerned.
Special freight rate : A preferential
freight rate, other than a promotional freight rate, which may be negotiated
between the parties concerned.
RELATIONS AMONG MEMBER LINES
(1) Any national shipping line shall have
the right to be a full member of a conference which serves the foreign
trade of its country, subject to the criteria set out in Article 1(2).
Shipping lines which are not national lines in any trade of a conference
shall have the right to become full members of that conference, subject
to the criteria set out in Article 1(2) and (3) and to the provisions regarding
the share of trade as set out in Article 2 as regards third-country shipping
(2) A shipping line applying for membership
of a conference shall furnish evidence of its ability and intention, which
may include the use of chartered tonnage, provided the criteria of this
paragraph are met, to operate a regular, adequate and efficient service
on a long-term basis as defined in the conference agreement within the
framework of the conference, shall undertake to abide by all the terms
and conditions of the conference agreement, and shall deposit a financial
guarantee to cover any outstanding financial obligation in the event of
subsequent withdrawal, suspension or expulsion from membership, if so required
under the conference agreement.
(3) In considering an application for membership
by a shipping line which is not a national line in any trade of the conference
concerned, in addition to the provisions of Article 1(2), the following
criteria, inter alia , should be taken into account:
(a) the existing volume of the trade on the
route or routes served by the conference and prospects for its growth;
(b) the adequacy of shipping space for the
existing and prospective volume of trade on the route or routes served
by the conference;
(c) the probable effect of admission of the
shipping line to the conference on the efficiency and quality of the conference
(d) the current participation of the shipping
line in trade on the same route or routes outside the framework of a conference;
(e) the current participation of the shipping
line on the same route or routes within the framework of another conference.
The above criteria shall not be applied so
as to subvert the implementation of the provisions relating to participation
in trade set out in Article 2.
(4) An application for admission or readmission
to membership shall be promptly decided upon and the decision communicated
by a conference to an applicant promptly, and in no case later than six
months from the date of application. When a shipping line is refused admission
or readmission the conference shall, at the same time, give in writing
the grounds for such refusal.
(5) When considering applications for admission,
a conference shall take into account the views put forward by shippers
and shippers' organizations of the countries whose trade is carried by
the conference, as well as the views of appropriate authorities if they
(6) In addition to the criteria for admission
set out in Article 1(2), a shipping line applying for readmission shall
also give evidence of having fulfilled its obligations in accordance with
Article 4(1) and (4). The conference may give special scrutiny to the circumstances
under which the line left the conference.
Participation in trade
(1) Any shipping line admitted to membership
of a conference shall have sailing and loading rights in the trades covered
by that conference.
(2) When a conference operates a pool, all
shipping lines members of the conference serving the trade covered by the
pool shall have the right to participate in the pool for that trade.
(3) For the purpose of determining the share
of trade which member lines shall have the right to acquire, the national
shipping lines of each country, irrespective of the number of lines, shall
be regarded as a single group of shipping lines for that country.
(4) When determining a share of trade within
a pool of individual member lines and/or groups of national shipping lines
in accordance with Article 2(2), the following principles regarding their
right of participation in the trade carried by the conference shall be
observed, unless otherwise mutually agreed:
(a) The group of national shipping lines of
each of two countries the foreign trade between which is carried by the
conference shall have equal rights to participate in the freight and volume
of traffic generated by their mutual foreign trade and carried by the conference;
(b) Third-country shipping lines, if any,
shall have the right to acquire a significant part, such as twenty per
cent, in the freight and volume of traffic generated by that trade.
(5) If, for any one of the countries whose
trade is carried by a conference, there are no national shipping lines
participating in the carriage of that trade, the share of the trade to
which national shipping lines of that country would be entitled under Article
2(4) shall be distributed among the individual member lines participating
in the trade in proportion to their respective shares.
(6) If the national shipping lines of one
country decide not to carry their full share of the trade, that portion
of their share of the trade which they do not carry shall be distributed
among the individual member lines participating in the trade in proportion
to their respective shares.
(7) If the national shipping lines of the
countries concerned do not participate in the trade between those countries
covered by a conference, the shares of trade carried by the conference
between those countries shall be allocated between the participating member
lines of third countries by commercial negotiations between those lines.
(8) The national shipping lines of a region,
members of a conference, at one end of the trade covered by the conference,
may redistribute among themselves by mutual agreement the shares in trades
allocated to them, in accordance with Article 2(4) to (7) inclusive.
(9) Subject to the provisions of Article 2(4)
to (8) inclusive regarding shares of trade among individual shipping lines
or groups of shipping lines, pooling or trade-sharing agreements shall
be reviewed by the conference periodically, at intervals to be stipulated
in those agreements and in accordance with criteria to be specified in
the conference agreement.
(10) The application of the present Article
shall commence as soon as possible after entry into force of the present
Convention and shall be completed within a transition period which in no
case shall be longer than two years, taking into account the specific situation
in each of the trades concerned.
(11) Shipping lines members of a conference
shall be entitled to operate chartered ships to fulfil their conference
(12) The criteria for sharing and the revision
of shares as set out in Article 2(1) to (11) inclusive shall apply when,
in the absence of a pool, there exists berthing, sailing and/or any other
form of cargo allocation agreement.
(13) Where no pooling, berthing, sailing or
other trade participation agreements exist in a conference, either group
of national shipping lines, members of the conference, may require that
pooling arrangements be introduced, in respect of the trade between their
countries carried by the conference, in conformity with the provisions
of Article 2(4); or alternatively they may require that the sailings be
so adjusted as to provide an opportunity to these lines to enjoy substantially
the same rights to participate in the trade between those two countries
carried by the conference as they would have enjoyed under the provisions
of Article 2(4). Any such request shall be considered and decided by the
conference. If there is no agreement to institute such a pool or adjustment
of sailings among the members of the conference, the groups of national
shipping lines of the countries at both ends of the trade shall have a
majority vote in deciding to establish such a pool or adjustment of sailings.
The matter shall be decided upon within a period not exceeding six months
from the receipt of the request.
(14) In the event of a disagreement between
the national shipping lines of the countries at either end whose trade
is served by the conference with regard to whether or not pooling shall
be introduced, they may require that within the conference, sailings be
so adjusted as to provide an opportunity to these lines to enjoy substantially
the same rights to participate in the trade between those two countries
carried by the conference as they would have enjoyed under the provisions
of Article 2(4). In the event that there are no national shipping lines
in one of the countries whose trade is served by the conference, the national
shipping line or lines of the other country may make the same request.
The conference shall use its best endeavours to meet this request. If,
however, this request is not met, the appropriate authorities of the countries
at both ends of the trade may take up the matter if they so wish and make
their views known to the parties concerned for their consideration. If
no agreement is reached, the dispute shall be dealt with in accordance
with the procedures established in this Code.
(15) Other shipping lines, members of a conference,
may also request that pooling or sailing agreements be introduced, and
the request shall be considered by the conference in accordance with the
relevant provisions of this Code.
(16) A conference shall provide for appropriate
measures in any conference pooling agreement to cover cases where the cargo
has been shut out by a member line for any reason excepting late presentation
by the shipper. Such agreement shall provide that a vessel with unbooked
space, capable of being used, be allowed to lift the cargo, even in excess
of the pool share of the line in the trade, if otherwise the cargo would
be shut out and delayed beyond a period set by the conference.
(17) The provisions of Article 2(1) to (16)
inclusive concern all goods regardless of their origin, their destination
or the use for which they are intended, with the exception of military
equipment for national defence purposes.
The decision-making procedures embodied in
a conference agreement shall be based on the principle of equality of all
the full member lines; these procedures shall ensure that the voting rules
do not hinder the proper work of the conference and the service of the
trade and shall define the matters on which decisions will be made by unanimity.
However, a decision cannot be taken in respect of matters defined in a
conference agreement relating to the trade between two countries without
the consent of the national shipping lines of those two countries.
(1) A shipping lines member of a conference
shall be entitled, subject to the provisions regarding withdrawal which
are embodied in pool schemes and/or cargo-sharing arrangements, to secure
its release, without penalty, from the terms of the conference agreement
after giving three months' notice, unless the conference agreement provides
for a different time period, although it shall be required to fulfil its
obligations as a member of the conference up to the date of its release.
(2) A conference may, upon notice to be specified
in the conference agreement, suspend or expel a member for significant
failure to abide by the terms and conditions of the conference agreement.
(3) No expulsion or suspension shall become
effective until a statement in writing of the reasons therefor has been
given and until any dispute has been settled as provided in chapter VI.
(4) Upon withdrawal or expulsion, the line
concerned shall be required to pay its share of the outstanding financial
obligations of the conference, up to the date of its withdrawal or expulsion.
In cases of withdrawal, suspension or expulsion, the line shall not be
relieved of its own financial obligations under the conference agreement
or of any of its obligations towards shippers.
(1) A conference shall adopt and keep up to
date an illustrative list, which shall be as comprehensive as possible,
of practices which are regarded as malpractices and/or breaches of the
conference agreement and shall provide effective self-policing machinery
to deal with them, with specific provisions requiring:
(a) the fixing of penalties or a range of
penalties for malpractices or breaches, to be commensurate with their seriousness;
(b) the examination and impartial review of
an adjudication of complaints, and/or decisions taken on complaints, against
malpractices or breaches, by a person or body unconnected with any of the
shipping lines members of the conference or their affiliates, on request
by the conference or any other party concerned;
(c) the reporting, on request, on the action
taken in connexion with complaints against malpractices and/or breaches,
and on a basis of anonymity for the parties concerned, to the appropriate
authorities of the countries whose trade is served by the conference and
of the countries whose shipping lines are members of the conference.
(2) Shipping lines and conferences are entitled
to the full co-operation of shippers and shippers' organizations in the
endeavour to combat malpractices and breaches.
All conference agreements, pooling, berthing
and sailing rights agreements and amendments or other documents directly
related to, and which affect, such agreements shall be made available on
request to the appropriate authorities of the countries whose trade is
served by the conference and of the countries whose shipping lines are
memhers of the conference
RELATIONS WITH SHIPPERS
(1) The shipping lines members of a conference
are entitled to institute and maintain loyalty arrangements with shippers,
the form and terms of which are matters for consultation between the conference
and shippers' organizations or representatives of shippers. These loyalty
arrangements shall provide safeguards making explicit the rights of shippers
and conference members. These arrangements shall be based on the contract
system or any other system which is also lawful.
(2) Whatever loyalty arrangements are made,
the freight rate applicable to loyal shippers shall be determined within
a fixed range of percentages of the freight rate applicable to other shippers.
Where a change in the differential causes an increase in the rates charged
to shippers, the change can be implemented only after 150 days' notice
to those shippers or according to regional practice and/or agreement. Disputes
in connexion with a change of the differential shall be settled as provided
in the loyalty agreement.
(3) The terms of loyalty arrangements shall
provide safeguards making explicit the rights and obligations of shippers
and of shipping lines members of the conference in accordance with the
following provisions, inter alia :
(a) The shipper shall be bound in respect
of cargo whose shipment is controlled by him or his affiliated or subsidiary
company or his forwarding agent in accordance with the contract of sale
of the goods concerned, provided that the shipper shall not, by evasion,
subterfuge, or intermediary, attempt to divert cargo in violation of his
(b) Where there is a loyalty contract, the
extent of actual or liquidated damages and/or penalty shall be specified
in the contract. The member lines of the conference may, however, decide
to assess lower liquidated damages or to waive the claim to liquidated
damages. In any event, the liquidated damages under the contract to be
paid by the shipper shall not exceed the freight charges on the particular
shipment, computed at the rate provided under the contract.
(c) The shipper shall be entitled to resume
full loyalty status, subject to the fulfilment of conditions established
by the conference which shall be specified in the loyalty arrangement.
(d) The loyalty arrangement shall set out:
(i) a list of cargo, which may include bulk
cargo shipped without mark or count, which is specifically excluded from
the scope of the loyalty arrangement;
(ii) a definition of the circumstances in
which cargo other than cargo covered by (i) above is considered to be excluded
from the scope of the loyalty arrangement;
(iii) the method of settlement of disputes
arising under the loyalty arrangement;
(iv) provision for termination of the loyalty
arrangement on request by either a shipper or a conference without penalty,
after expiry of a stipulated period of notice, such notice to be given
in writing; and
(v) the terms of granting dispensation.
(4) If there is a dispute between a conference
and a shippers' organization, representatives of shippers and/or shippers
about the form or terms of a proposed loyalty arrangement, either party
may refer the matter for resolution under appropriate procedures as set
out in this Code.
(1) Conferences shall provide, within the
terms of the loyalty arrangements, that requests by shippers for dispensation
shall be examined and a decision given quickly and, if requested, the reasons
given in writing where dispensation is withheld. Should a conference fail
to confirm, within a period specified in the loyalty arrangement, sufficient
space to accommodate a shipper's cargo within a period also specified in
the loyalty arrangement, the shipper shall have the right, without being
penalized, to utilize any vessel for the cargo in question.
(2) In ports where conference services are
arranged subject to the availability of a specified minimum of cargo (ie.
on inducement), but either the shipping line does not call, despite due
notice by shippers, or the shipping line does not reply within an agreed
time to the notice given by shippers, shippers shall automatically have
the right, without prejudicing their loyalty status, to use any available
vessel for the carriage of their cargo.
Availability of tariffs and related conditions
Tariffs, related conditions, regulations,
and any amendments thereto shall be made available on request to shippers,
shippers' organizations and other parties concerned at reasonable cost,
and they shall be available for examination at offices of shipping lines
and their agents. They shall spell out all conditions concerning the application
of freight rates and the carriage of any cargo covered by them.
Conferences shall provide annually to shippers'
organizations, or to representatives of shippers, reports on their activities
designed to provide general information of interest to them, including
relevant information about consultations held with shippers and shippers'
organizations, action taken regarding complaints, changes in membership,
and significant changes in service, tariffs and conditions of carriage.
Such annual reports shall be submitted, on request, to the appropriate
authorities of the countries whose trade is served by the conference concerned.
(1) There shall be consultations on matters
of common interest between a conference, shippers' organizations, representatives
of shippers and, where practicable, shippers, which may be designated for
that purpose by the appropriate authority if it so desires. These consultations
shall take place whenever requested by any of the above-mentioned parties.
Appropriate authorities shall have the right, upon request, to participate
fully in the consultations, but this does not mean that they play a decision-making
(2) The following matters, inter alia
, may be the subject of consultation:
(a) changes in general tariff conditions and
(b) changes in the general level of tariff
rates and rates for major commodities;
(c) promotional and/or special freight rates;
(d) imposition of, and related changes in,
(e) loyalty arrangements, their establishment
or changes in their form and general conditions;
(f) changes in the tariff classification of
(g) procedure for the supply of necessary
information by shippers concerning the expected volume and nature of their
(h) presentation of cargo for shipment and
the requirements regarding notice of cargo availability.
(3) To the extent that they fall within the
scope of activity of a conference, the following matters may also be the
subject of consultation:
(a) operation of cargo inspection services;
(b) changes in the pattern of service;
(c) effects of the introduction of new technology
in the carriage of cargo, in particular unitization, with consequent reduction
of conventional service or loss of direct services; and
(d) adequacy and quality of shipping services,
including the impact of pooling, berthing or sailing arrangements on the
availability of shipping services and freight rates at which shipping services
are provided; changes in the areas served and in the regularity of calls
by conference vessels.
(4) Consultations shall be held before final
decisions are taken, unless otherwise provided in this Code. Advance notice
shall be given of the intention to take decisions on matters referred to
in Article 11(2) and (3). Where this is impossible, urgent decisions may
be taken pending the holding of consultations.
(5) Consultations shall begin without undue
delay and in any event within a maximum period specified in the conference
agreement or, in the absence of such a provision in the agreement, not
later than 30 days after receipt of the proposal for consultations, unless
different periods of time are provided in this Code.
(6) When holding consultations, the parties
shall use their best efforts to provide relevant information, to hold timely
discussions and to clarify matters for the purpose of seeking solutions
of the issues concerned. The parties involved shall take account of each
other's views and problems and strive to reach agreement consistent with
their commercial viability.
Criteria for freight-rate determination
In arriving at a decision on questions of
tariff policy in all cases mentioned in this Code, the following points
shall, unless otherwise provided, be taken into account:
(a) Freight rates shall be fixed at as low
a level as is feasible from the commercial point of view and shall permit
a reasonable profit for shipowners;
(b) The cost of operations of conferences
shall, as a rule, be evaluated for the round voyage of ships, with the
outward and inward directions considered as a single whole. Where applicable,
the outward and inward voyage should be considered separately. The freight
rates should take into account, among other factors, the nature of cargoes,
the interrelation between weight and cargo measurement, as well as the
value of cargoes;
(c) In fixing promotional freight rates and/or
special freight rates for specific goods, the conditions of trade for these
goods of the countries served by the conference, particularly of developing
and land-locked countries, shall be taken into account.
Conference tariffs and classification of tariff
(1) Conference tariffs shall not unfairly
differentiate between shippers similarly situated. Shipping lines members
of a conference shall adhere strictly to the rates, rules and terms shown
in the tariffs and other currently valid published documents of the conference
and to any special arrangements permitted under this Code.
(2) Conference tariffs should be drawn up
simply and clearly, containing as few classes/categories as possible, depending
on the particular requirements of a trade, specifying a freight rate for
each commodity and, where appropriate, for each class/category; they should
also indicate, wherever practicable, in order to facilitate statistical
compilation and analysis, the corresponding appropriate code number of
the item in accordance with the Standard International Trade Classification,
the Brussels Tariff Nomenclature or any other nomenclature that may be
internationally adopted; the classification of commodities in the tariffs
should, as far as practicable, be prepared in co-operation with shippers'
organizations and other national and international organizations concerned.
General freight-rate increases
(1) A conference shall give notice of not
less than 150 days, or according to regional practice and/or agreement,
to shippers' organizations or representatives of shippers and/or shippers
and, where so required, to appropriate authorities of the countries whose
trade is served by the conference, of its intention to effect a general
increase in freight rates, an indication of its extent, the date of effect
and the reasons supporting the proposed increase.
(2) At the request of any of the parties prescribed
for this purpose in this Code, to be made within an agreed period of time
after the receipt of the notice, consultations shall commence, in accordance
with the relevant provisions of this Code, within a stipulated period not
exceeding thirty days or as previously agreed between the parties concerned;
the consultations shall be held in respect of the bases and amounts of
the proposed increase and the date from which it is to be given effect.
(3) A conference, in an effort to expedite
consultations, may, or upon the request of any of the parties prescribed
in this Code as entitled to participate in consultations on general freight-rate
increases shall, where practicable, reasonably before the consultations,
submit to the participating parties a report from independent accountants
of repute, including, where the requesting parties accept it as one of
the bases of consultations, an aggregated analysis of data regarding relevant
costs and revenues which in the opinion of the conference necessitate an
increase in freight rates.
(4) If agreement is reached as a result of
the consultations, the freight-rate increase shall take effect from the
date indicated in the notice served in accordance with Article 14(1), unless
a later date is agreed upon between the parties concerned.
(5) If no agreement is reached within thirty
days of the giving of notice in accordance with Article 14(1), and subject
to procedures prescribed in this Code, the matter shall be submitted immediately
to international mandatory conciliation, in accordance with chapter VI.
The recommendation of the conciliators, if accepted by the parties concerned,
shall be binding upon them and shall be implemented, subject to the provisions
of Article 14(9), with effect from the date mentioned in the conciliators'
(6) Subject to the provisions of Article 14(9),
a general freight-rate increase may be implemented by a conference pending
the conciliators' recommendation. When making their recommendation, the
conciliators should take into account the extent of the above-mentioned
increase made by the conference and the period for which it has been in
force. In the event that the conference rejects the recommendation of the
conciliators, shippers and/or shippers' organizations shall have the right
to consider themselves not bound, after appropriate notice, by any arrangement
or other contract with that conference which may prevent them from using
non-conference shipping lines. Where a loyalty arrangement exists, shippers
and/or shippers' organizations shall give notice within a period of thirty
days to the effect that they no longer consider themselves bound by that
arrangement, which notice shall apply from the date mentioned therein,
and a period of not less than thirty days and not more than ninety days
shall be provided in the loyalty arrangement for this purpose.
(7) A deferred rebate which is due to the
shipper and which has already been accumulate by the conference shall not
be withheld by, or forfeited to, the conference as a result of action by
the shipper under Article 14(6).
(8) If the trade of a country carried by shipping
lines members of a conference on a particular route consists largely of
one or few basic commodities, any increase in the freight rate on one or
more of those commodities shall be treated as a general freight-rate increase,
and the appropriate provisions of this Code shall apply.
(9) Conferences should institute any general
freight-rate increase effective in accordance with this Code for a period
of a stated minimum duration, subject always to the rules regarding surcharges
and regarding adjustment in freight rates consequent upon fluctuations
in foreign exchange rates. The period over which a general freight-rate
increase is to apply is an appropriate matter to be considered during consultations
conducted in accordance with Article 14(2), but unless otherwise agreed
between the parties concerned during the consultations, the minimum period
of time between the date when one general freight-rate increase becomes
effective and the date of notice for the next general freight-rate increase
given in accordance with Article 14(1) shall not be less than ten months.
Promotional freight rates
(1) Promotional freight rates for non-traditional
exports should be instituted by conferences.
(2) All necessary and reasonable information
justifying the need for a promotional freight rate shall be submitted to
a conference by the shippers, shippers' organizations or representatives
of shippers concerned.
(3) Special procedures shall be instituted
providing for a decision within thirty days from the date of receipt of
that information, unless mutually agreed otherwise, on applications for
promotional freight rates. A clear distinction shall be made between these
and general procedures for considering the possibility of reducing freight
rates for other commodities or of exempting them from increases.
(4) Information regarding the procedures for
considering applications for promotional freight rates shall be made available
by the conference to shippers and/or shippers' organizations and, on request,
to the governments and/or other appropriate authorities of the countries
whose trade is served by the conference.
(5) A promotional freight rate shall be established
normally for a period of twelve months, unless otherwise mutually agreed
between the parties concerned. Prior to the expiry of the period, the promotional
freight rate shall be reviewed, on request by the shipper and/or shippers'
organization concerned, when it shall be a matter for the shipper and/or
shippers' organization, at the request of the conference, to show that
the continuation of the rate is justified beyond the initial period.
(6) When examining a request for a promotional
freight rate, the conference may take into account that, while the rate
should promote the export of the non-traditional product for which it is
sought, it is not likely to create substantial competitive distortions
in the export of a similar product from another country served by the conference.
(7) Promotional freight rates are not excluded
from the imposition of a surcharge or a currency adjustment factor in accordance
with Articles 16 and 17.
(8) Each shipping lines member of a conference
serving the relevant ports of a conference trade shall accept, and not
unreasonably refuse, a fair share of cargo for which a promotional freight
rate has been established by the conference.
(1) Surcharges imposed by a conference to
cover sudden or extraordinary increases in costs or losses of revenue shall
be regarded as temporary. They shall be reduced in accordance with improvements
in the situation or circumstances which they were imposed to meet and shall
be cancelled, subject to Article 16(6), as soon as the situation or circumstances
which prompted their imposition cease to prevail. This shall be indicated
at the moment of their imposition, together, as far as possible, with a
description of the change in the situation or circumstances which will
bring about their increase, reduction or cancellation.
(2) Surcharges imposed on cargo moving to
or from a particular port shall likewise be regarded as temporary and likewise
shall be increased, reduced or cancelled, subject to Article 16(6), when
the situation in that port changes.
(3) Before any surcharge is imposed, whether
general or covering only a specific port, notice should be given and there
shall be consultation, upon request, in accordance with the procedures
of this Code, between the conference concerned and other parties directly
affected by the surcharge and prescribed in this Code as entitled to participate
in such consultations, save in those exceptional circumstances which warrant
immediate imposition of the surcharge. In cases where a surcharge has been
imposed without prior consultation, consultations, upon request, shall
be held as soon as possible thereafter. Prior to such consultations, conferences
shall furnish data which in their opinion justify the imposition of the
(4) Unless the parties agree otherwise, within
a period of fifteen days after the receipt of a notice given in accordance
with Article 16(3), if there is no agreement on the question of the surcharge
between the parties concerned referred to in that article the relevant
provisions for settlement of disputes provided in this Code shall prevail.
Unless the parties concerned agree otherwise, the surcharge may, however,
be imposed pending resolution of the dispute, if the dispute still remains
unresolved at the end of a period of thirty days after the receipt of the
(5) In the event of a surcharge being imposed
in exceptional circumstances without prior consultation as provided in
Article 16(3), if no agreement is reached through subsequent consultations,
the relevant provisions for settlement of disputes provided in this Code
(6) Financial loss incurred by the shipping
lines members of a conference as a result of any delay on account of consultations
and/or other proceedings for resolving disputes regarding imposition of
surcharges in accordance with the provisions of this Code, as compared
to the date from which the surcharge was to be imposed in terms of the
notice given in accordance with Article 16(3), may be compensated by an
equivalent prolongation of the surcharge before its removal. Conversely,
for any surcharge imposed by the conference and subsequently determined
and agreed to be unjustified or excessive as a result of consultations
or other procedures prescribed in this Code, the amounts so collected or
the excess thereof as determined hereinabove, unless otherwise agreed,
shall be refunded to the parties concerned, if claimed by them, within
a period of thirty days of such claim.
(1) Exchange rate changes, including formal
devaluation or revaluation, which lead to changes in the aggregate operational
costs and/or revenues of the shipping lines members of a conference relating
to their operations within the conference provide a valid reason for the
introduction of a currency adjustment factor or for a change in the freight
rates. The adjustment or change shall be such that in the aggregate the
member lines concerned neither gain nor lose, as far as possible, as a
result of the adjustment or change. The adjustment or change may take the
form of currency surcharges or discounts or of increases or decreases in
the freight rates.
(2) Such adjustments or changes shall be subject
to notice, which should be arranged in accordance with regional practice,
where such practice exists, and there shall be consultations in accordance
with the provisions of this Code between the conference concerned and the
other parties directly affected and prescribed in this Code as entitled
to participate in consultations, save in those exceptional circumstances
which warrant immediate imposition of the currency adjustment factor or
freight-rate change. In the event that this has been done without prior
consultations, consultations shall be held as soon as possible thereafter.
The consultations should be on the application, size and date of implementation,
of the currency adjustment factor or freight-rate change, and the same
procedures shall be followed for this purpose as are prescribed in Article
16(4) and (5) in respect of surcharges. Such consultations should take
place and be completed within a period not exceeding fifteen days from
the date when the intention to apply a currency surcharge or to effect
a freight-rate change is announced.
(3) If no agreement is reached within fifteen
days through consultations, the relevant provisions for settlement of disputes
provided in this Code shall prevail.
(4) The provisions of Article 16(6) shall
apply, adapted as necessary, to currency adjustment factors and freight-rate
changes dealt with in the present Article.
Members of a conference shall not use fighting
ships in the conference trade for the purpose of excluding, preventing
or reducing competition by driving a shipping line not a member of the
conference out of the said trade.
Adequacy of service
(1) Conferences should take necessary and
appropriate measures to ensure that their member lines provide regular,
adequate and efficient service of the required frequency on the routes
they serve and shall arrange such services so as to avoid as far as possible
bunching and gapping of sailings. Conferences should also take into consideration
any special measures necessary in arranging services to handle seasonal
variations in cargo volumes.
(2) Conferences and other parties prescribed
in this Code as entitled to participate in consultations, including appropriate
authorities if they so desire, should keep under review, and should maintain
close co-operation regarding, the demand for shipping space, the adequacy
and suitability of service, and in particular the possibilities for rationalization
and for increasing the efficiency of services. Benefits identified as accruing
from rationalization of services shall be fairly reflected in the level
of freight rates.
(3) In respect of any port for which conference
services are supplied only subject to the availability of a specified minimum
of cargo, that minimum shall be specified in the tariff. Shippers should
give adequate notice of the availability of such cargo.
Head office of a conference
A conference shall as a rule establish its
head office in a country whose trade is served by that conference, unless
agreed otherwise by the shipping lines members of that conference.
Conferences shall establish local representation
in all countries served, except that where there are practical reasons
to the contrary the representation may be on a regional basis. The names
and addresses of representatives shall be readily available, and these
representatives shall ensure that the views of shippers and conferences
are made rapidly known to each other with a view to expediting prompt decisions.
When a conference considers it suitable, it shall provide for adequate
delegation of powers of decision to its representatives.
Contents of conference agreements, trade participation
and loyalty arrangements
Conference agreements, trade participation
agreements and loyalty arrangements shall conform to the applicable requirements
of this Code and may include such other provisions as may be agreed which
are not inconsistent with this Code.
PROVISIONS AND MACHINERY FOR SETTLEMENT OF
A. GENERAL PROVISIONS
(1) The provisions of this chapter shall apply
whenever there is a dispute relating to the application or operation of
the provisions of this Code between the following parties:
(a) a conference and a shipping line;
(b) the shipping lines members of a conference;
(c) a conference or a shipping line member
thereof and a shippers' organization or representatives of shippers or
(d) two or more conferences.
For the purposes of this chapter the term
"party" means the original parties to the dispute as well as third parties
which have joined the proceedings in accordance with (a) of Article 34.
(2) Disputes between shipping lines of the
same flag, as well as those between organizations belonging to the same
country, shall be settled within the framework of the national jurisdiction
of that country, unless this creates serious difficulties in the fulfilment
of the provisions of this Code.
(3) The parties to a dispute shall first attempt
to settle it by an exchange of views or direct negotiations with the intention
of finding a mutually satisfactory solution.
(4) Disputes between the parties referred
to in Article 23(1) relating to:
(a) refusal of admission of a national shipping
line to a conference serving the foreign trade of the country of that shipping
(b) refusal of admission of a third-country
shipping line to a conference;
(c) expulsion from a conference;
(d) inconsistency of a conference agreement
with this Code;
(e) a general freight-rate increase;
(g) changes in freight rates or the imposition
of a currency adjustment factor due to exchange rate changes;
(h) participation in trade; and
(i) the form and terms of proposed loyalty
which have not been resolved through an exchange
of views or direct negotiations shall, at the request of any of the parties
to the dispute, be referred to international mandatory conciliation in
accordance with the provisions of this chapter.
(1) The conciliation procedure is initiated
at the request of one of the parties to the dispute.
(2) The request shall be made:
(a) in disputes relating to membership of
conferences: not later than sixty days from the date of receipt by the
applicant of the conference decision, including the reasons therefor, in
accordance with Articles 1(4) and 4(3);
(b) in disputes relating to general freight-rate
increases: not later than the date of expiry of the period of notice specified
in Article 14(1);
(c) in disputes relating to surcharges: not
later than the date of expiry of the thirty-day period specified in Article
16(4) or, where no notice has been given, not later than fifteen days from
the date when the surcharge was put into effect; and
(d) in disputes relating to changes in freight
rates or the imposition of a currency adjustment factor due to exchange
rate changes: not later than five days after the date of expiry of the
period specified in Article 17(3).
(3) The provisions of Article 24(2) shall
not apply to a dispute which is referred to international mandatory conciliation
in accordance with Article 25(3).
(4) Requests for conciliation in disputes
other than those referred to in Article 24(2) may be made at any time.
(5) The time-limits specified in Article 24(2)
may be extended by agreement between the parties.
(6) A request for conciliation shall be considered
to have been duly made if it is proved that the request has been sent to
the other party by registered letter, telegram or teleprinter or has been
served on it within the time-limits specified in Article 24(2) or (5).
(7) Where no request has been made within
the time-limits specified in Article 24(2) or (5), the decision of the
conference shall be final and no proceedings under this chapter may be
brought by any party to the dispute to challenge that decision.
(1) Where the parties have agreed that disputes
referred to in Article 23(4)(a), (b), (c), (d), (h) and (i) shall be resolved
through procedures other than those established in that Article, or agree
on procedures to resolve a particular dispute that has arisen between them,
such disputes shall, at the request of any of the parties to the dispute,
be resolved as provided for in their agreement.
(2) The provisions of Article 25(1) apply
also to the disputes referred to in Article 23(4)(e), (f) and (g), unless
national legislation, rules or regulations prevent shippers from having
this freedom of choice.
(3) Where conciliation proceedings have been
initiated, such proceedings shall have precedence over remedies available
under national law. If a party seeks remedies under national law in respect
of a dispute to which this chapter applies without invoking the procedures
provided for in this chapter, then, upon the request of a respondent to
those proceedings, they shall be stayed and the dispute shall be referred
to the procedures defined in this chapter by the court or other authority
where the national remedies are sought.
(1) The Contracting Parties shall confer upon
conferences and shippers' organizations such capacity as is necessary for
the application of the provisions of this chapter. In particular:
(a) a conference or a shipper's organization
may institute proceedings as a party or be named as a party to proceedings
in its collective capacity;
(b) any notification to a conference or shippers'
organization in its collective capacity shall also constitute a notification
to each member of such conference or shippers' organization;
(c) a notification to a conference or shippers'
organization shall be transmitted to the address of the head office of
the conference or shippers' organization. Each conference or shippers'
organization shall register the address of its head office with the Registrar
appointed in accordance with Article 46(1). In the event that a conference
or a shippers' organization fails to register or has no head office, a
notification to any member in the name of the conference or shippers' organization
shall be deemed to be a notification to such conference or organization.
(2) Acceptance or rejection by a conference
or shippers' organization of a recommendation by conciliators shall be
deemed to be acceptance or rejection of such a recommendation by each member
Unless the parties agree otherwise, the conciliators
may decide to make a recommendation on the basis of written submissions
without oral proceedings.
B. INTERNATIONAL MANDATORY CONCILIATION
In international mandatory conciliation the
appropriate authorities of a Contracting Party shall, if they so request,
participate in the conciliation proceedings in support of a party being
a national of that Contracting Party, or in support of a party having a
dispute arising in the context of the foreign trade of that Contracting
Party. The appropriate authority may alternatively act as an observer in
such conciliation proceedings.
(1) In international mandatory conciliation
the proceedings shall be held in the place unanimously agreed to by the
parties or, failing such agreement, in the place decided upon by the conciliators.
(2) In determining the place of conciliation
proceedings the parties and the conciliators shall take into account, inter
alia , countries which are closely connected with the dispute, bearing
in mind the country of the shipping line concerned and, especially when
the dispute is related to cargo, the country where the cargo originates.
(1) For the purposes of this chapter an International
Panel of Conciliators shall be established, consisting of experts of high
repute or experience in the fields of law, economics of sea transport,
or foreign trade and finance, as determined by the Contracting Parties
selecting them, who shall serve in an independent capacity.
(2) Each Contracting Party may at any time
nominate members of the Panel up to a total of twelve, and shall communicate
their names to the Registrar. The nominations shall be for periods of six
years each and may be renewed. In the event of the death, incapacity or
resignation of a member of the Panel, the Contracting Party which nominated
such person shall nominate a replacement for the remainder of his term
of office. A nomination takes effect from the date on which the communication
of the nomination is received by the Registrar.
(3) The Registrar shall maintain the Panel
list and shall regularly inform the Contracting Parties of the composition
of the Panel.
(1) The purpose of conciliation is to reach
an amicable settlement of the dispute through recommendations formulated
by independent conciliators.
(2) The conciliators shall identify and clarify
the issues in dispute, seek for this purpose any information from the parties,
and, on the basis thereof, submit to the parties a recommendation for the
settlement of the dispute.
(3) The parties shall co-operate in good faith
with the conciliators in order to enable them to carry out their functions.
(4) Subject to the provisions of Article 25(2),
the parties to the dispute may at any time during the conciliation proceedings
decide in agreement to have recourse to a different procedure for the settlement
of their dispute. The parties to a dispute which has been made subject
to proceedings other than those provided for in this chapter may decide
by mutual agreement to have recourse to international mandatory conciliation.
(1) The conciliation proceedings shall be
conducted either by one conciliator or by an uneven number of conciliators
agreed upon or designated by the parties.
(2) Where the parties cannot agree on the
number or the appointment of the conciliators as provided in Article 32(1),
the conciliation proceedings shall be conducted by three conciliators,
one appointed by each party in the statement(s) of claim and reply respectively,
and the third by the two conciliators thus appointed, who shall act as
(3) If the reply does not name a conciliator
to be appointed in cases where Article 32(2) would apply, the second conciliator
shall, within thirty days following the receipt of the statement of claim,
be chosen by lot by the conciliator appointed in the statement of claim
from among the members of the Panel nominated by the Contracting Party
or Parties of which the respondent(s) is(are) a national(s).
(4) Where the conciliators appointed in accordance
with Article 32(2) or (3) cannot agree on the appointment of the third
conciliator within fifteen days following the date of the appointment of
the second conciliator, he shall, within the following five days be chosen
by lot by the appointed conciliators. Prior to the drawing by lot:
(a) no member of the Panel of conciliators
having the same nationality as either of the two appointed conciliators
shall be eligible for selection by lot;
(b) each of the two appointed conciliators
may exclude from the list of the Panel of conciliators an equal number
of them subject to the requirement that at least thirty members of the
Panel shall remain eligible for selection by lot.
(1) Where several parties request conciliation
with the same respondent in respect of the same issue, or of issues which
are closely connected, that respondent may request the consolidation of
(2) The request for consolidation shall be
considered and decided upon by majority vote by the chairmen of the conciliators
so far chosen. If such request is allowed, the chairmen will designate
the conciliators to consider the consolidated cases from among the conciliators
so far appointed or chosen, provided that an uneven number of conciliators
is chosen and that the conciliator first appointed by each party shall
be one of the conciliators considering the consolidated case.
Any party, other than an appropriate authority
referred to in Article 28, if conciliation has been initiated, may join
in the proceedings:
(a) as a party, in case of a direct economic
(b) as a supporting party to one of the original
parties, in case of an indirect economic interest,
unless either of the original parties objects
to such joinder.
(1) The recommendations of the conciliators
shall be made in accordance with the provisions of this Code.
(2) When the Code is silent upon any point,
the conciliators shall apply the law which the parties agree at the time
the conciliation proceedings commence or thereafter, but not later than
the time of submission of evidence to the conciliators. Failing such agreement,
the law which in the opinion of the conciliators is most closely connected
with the dispute shall be applicable.
(3) The conciliators shall not decide ex
aequo et bono upon the dispute unless the parties so agree after the
dispute has arisen.
(4) The conciliators shall not bring a finding
of non liquet on the ground of obscurity of the law.
(5) The conciliators may recommend those remedies
and reliefs which are provided in the law applicable to the dispute.
The recommendations of the conciliators shall
(1) Unless the parties have agreed before,
during or after the conciliation procedure that the recommendation of the
conciliators shall be binding, the recommendation shall become binding
by acceptance by the parties. A recommendation which has been accepted
by some parties to a dispute shall be binding as between those parties
(2) Acceptance of the recommendation must
be communicated by the parties to the conciliators, at an address specified
by them, not later than thirty days after receipt of the notification of
the recommendation; otherwise, it shall be considered that the recommendation
has not been accepted.
(3) Any party which does not accept the recommendation
shall notify the conciliators and the other parties, within thirty days
following the period specified in Article 37(2) of its grounds for rejection
of the recommendation, comprehensively and in wnting.
(4) When the recommendation has been accepted
by parties, the conciliators shall immediately draw up and sign a record
of settlement, at which time the recommendation shall become binding upon
those parties. If the recommendation has not been accepted by all parties,
the conciliators shall draw up a report with respect to those parties rejecting
the recommendation, noting the dispute and the failure of those parties
to settle the dispute.
(5) A recommendation which has become binding
upon the parties shall be implemented by them immediately or at such later
time as is specified in the recommendation.
(6) Any party may make its acceptance conditional
upon acceptance by all or any of the other parties to the dispute.
(1) A recommendation shall constitute a final
determination of a dispute as between the parties which accept it, except
to the extent that the recommendation is not recognized and enforced in
accordance with the provisions of Article 39.
(2) "Recommendation" includes an interpretation,
clarification or revision of the recommendation made by the conciliators
before the recommendation has been accepted.
(1) Each Contracting Party shall recognize
a recommendation as binding between the parties which have accepted it
and shall, subject to the provisions of Article 39(2) and (3), enforce,
at the request of any such party, all obligations imposed by the recommendation
as if it were a final judgment of a court of that Contracting Party.
(2) A recommendation shall not be recognized
and enforced at the request of a party referred to in Article 39(1) only
if the court or other competent authority of the country where recognition
and enforcement is sought is satisfied that:
(a) any party which accepted the recommendation
was, under the law applicable to it, under some legal incapacity at the
time of acceptance;
(b) fraud or coercion has been used in the
making of the recommendation;
(c) the recommendation is contrary to public
policy (ordre public ) in the country of enforcement; or
(d) the composition of the conciliators, or
the conciliation procedure, was not in accordance with the provisions of
(3) Any part of the recommendation shall not
be enforced and recognized if the court or other competent authority is
satisfied that such part comes within any of the subparagraphs of article
39(2) and can be separated from other parts of the recommendation. If such
part cannot be separated, the entire recommendation shall not be enforced
(1) Where the recommendation has been accepted
by all the parties, the recommendation and the reasons therefor may be
published with the consent of all the parties.
(2) Where the recommendation has been rejected
by one or more of the parties but has been accepted by one or more of the
(a) the party or parties rejecting the recommendation
shall publish its or their grounds for rejection, given pursuant to Article
37(3), and may at the same time publish the recommendation and the reasons
(b) a party which has accepted the recommendation
may publish the recommendation and the reasons therefor; it may also publish
the grounds for rejection given by any other party unless such other party
has already published its rejection and the grounds therefor in accordance
with Article 40(2)(a).
(3) Where the recommendation has not been
accepted by any of the parties, each party may publish the recommendation
and the reasons therefor and also its own rejection and the grounds therefor.
(1) Documents and statements containing factual
information supplied by any party to the conciliators shall be made public
unless that party or a majority of the conciliators agrees otherwise.
(2) Such documents and statements supplied
by a party may be tendered by that party in support of its case in subsequent
proceedings arising from the same dispute and between the same parties.
Where the recommendation has not become binding
upon the parties, no views expressed or reasons given by the conciliators,
or concessions or offers made by the parties for the purpose of the conciliation
procedure, shall affect the legal rights and obligations of any of the
(1) (a) The costs of the conciliators and
all costs of the administration of the conciliation proceedings shall be
borne equally by the parties to the proceedings, unless they agree otherwise.
(b) When the conciliation proceedings have
been initiated, the conciliators shall be entitled to require an advance
or security for the costs referred to in Article 43(1)(a).
(2) Each party shall bear all expenses it
incurs in connexion with the proceedings, unless the parties agree otherwise.
(3) Notwithstanding the provisions of Article
43(1) and (2), the conciliators may, having decided unanimously that a
party has brought a claim vexatiously or frivolously, assess against that
party any or all of the costs of other parties to the proceedings. Such
decision shall be final and binding on all the parties.
(1) Failure of a party to appear or to present
its case at any stage of the proceedings shall not be deemed an admission
of the other party's assertions. In that event, the other party may, at
its choice, request the conciliators to close the proceedings or to deal
with the questions presented to them and submit a recommendation in accordance
with the provisions for making recommendations set out in this Code.
(2) Before closing the proceedings, the conciliators
shall grant the party failing to appear or to present its case a period
of grace, not exceeding ten days, unless they are satisfied that the party
does not intend to appear or to present its case.
(3) Failure to observe procedural time-limits
laid down in this Code or determined by the conciliators, in particular
time-limits relating to the submission of statements or information, shall
be considered a failure to appear in the proceedings.
(4) Where the proceedings have been closed
owing to one party's failure to appear or to present its case, the conciliators
shall draw up a report noting that party's failure.
(1) The conciliators shall follow the procedures
stipulated in this Code.
(2) The Rules of Procedure annexed to the
present Convention shall be considered as Model Rules for the guidance
of conciliators. The conciliators may, by mutual consent, use, supplement
or amend the rules contained in the Annex or formulate their own rules
of procedure to the extent that such supplementary, amended or other rules
are not inconsistent with the provisions of this Code.
(3) If the parties agree that it may be in
the interest of achieving an expeditious and inexpensive solution of the
conciliation proceedings, they may mutually agree to rules of procedure
which are not inconsistent with the provisions of this Code.
(4) The conciliators shall formulate their
recommendation by consensus or, failing that, shall decide by majority
(5) The conciliation proceedings shall finish
and the recommendation of the conciliators shall be delivered not later
than six months from the date on which the conciliators are appointed,
except in the cases referred to in Article 23(4)(e), (f) and (g), for which
the time-limits in Articles 14(1) and 16(4) shall be valid. The period
of six months may be extended by agreement of the parties.
C. INSTITUTIONAL MACHINERY
(1) Six months before the entry into force
of the present Convention, the Secretary-General of the United Nations
shall, subject to the approval of the General Assembly of the United Nations,
and taking into account the views expressed by the Contracting Parties,
appoint a Registrar, who may be assisted by such additional staff as may
be necessary for the performance of the functions listed in Article 46(2).
Administrative services for the Registrar and his assistants shall be provided
by the United Nations Office at Geneva.
(2) The Registrar shall perform the following
functions in consultation with the Contracting Parties as appropriate:
(a) maintain the list of conciliators of the
International Panel of Conciliators and regularly inform the Contracting
Parties of the composition of the Panel;
(b) provide the names and addresses of the
conciliators to the parties concerned on request;
(c) receive and maintain copies of requests
for conciliation, replies, recommendations, acceptances, or rejections,
including reasons therefor;
(d) furnish on request, and at their cost,
copies of recommendations and reasons for rejection to the shippers' organisations,
conferences and governments, subject to the provisions of Article 40;
(e) make available information of a non-confidential
nature on completed conciliation cases, and without attribution to the
parties concerned, for the purposes of preparation of material for the
Review Conference referred to in Article 52; and
(f) such other functions prescribed for the
Registrar in Articles 26(1)(c) and 30(2) and (3).
(1) Each Contracting Party shall take such
legislative or other measures as may be necessary to implement the present
(2) Each Contracting Party shall communicate
to the Secretary-General of the United Nations, who shall be the depositary,
the text of the legislative or other measures which it has taken in order
to implement the present Convention.
Signature, ratification, acceptance, approval
(1) The present Convention shall remain open
for signature as from 1 July 1974 until and including 30 June 1975 at United
Nations Headquarters and shall thereafter remain open for accession.
(2) All States are entitled to become Contracting
Parties to the present Convention by:
(a) signature subject to and followed by ratification,
acceptance or approval; or
(b) signature without reservation as to ratification,
acceptance or approval; or
(3) Ratification, acceptance, approval or
accession shall be effected by the deposit of an instrument to this effect
with the depositary.
Entry into force
(1) The present Convention shall enter into
force six months after the date on which not less than twenty-four States,
the combined tonnage of which amounts to at least twenty-five per cent
of world tonnage, have become Contracting Parties to it in accordance with
Article 48. For the purpose of the present Article the tonnage shall be
deemed to be that contained in Lloyd's Register of Shipping , Statistical
Tables 1973 , table 2 "World Fleets - Analysis by Principal Types",
in respect of general cargo (including passenger/cargo) ships and container
(fully cellular) ships, exclusive of the United States reserve fleet and
the American and Canadian Great Lakes Fleets
(2) For each State which thereafter ratifies,
accepts, approves or accedes to it, the present Convention shall come into
force six months after deposit by such State of the appropriate instrument.
(3) Any State which becomes a Contracting
Party to the present Convention after the entry into force of an amendment
shall, failing an expression of a different intention by that State:
(a) be considered as a Party to the present
Convention as amended; and
(b) be considered as a Party to the unamended
Convention in relation to any Party to the present Convention not bound
by the amendment.
(1) The present Convention may be denounced
by any Contracting Party at any time after the expiration of a period of
two years from the date on which the Convention has entered into force.
(2) Denunciation shall be notified to the
depositary in writing, and shall take effect one year, or such longer period
as may be specified in the instrument of denunciation, after the date of
receipt by the depositary.
(1) Any Contracting Party may propose one
or more amendments to the present Convention by communicating the amendments
to the depositary. The depositary shall circulate such amendments among
the Contracting Parties, for their acceptance, and among States entitled
to become Contracting Parties to the present Convention which are not Contracting
Parties, for their information.
(2) Each proposed amendment circulated in
accordance with Article 51(1) shall be deemed to have been accepted if
no Contracting Party communicates an objection thereto to the depositary
within twelve months following the date of its circulation by the depositary.
If a Contracting Party communicates an objection to the proposed amendment,
such amendment shall not be considered as accepted and shall not be put
(3) If no objection has been communicated,
the amendment shall enter into force for all Contracting Parties six months
after the expiry date of the period of twelve months referred to in Article
(1) A Review Conference shall be convened
by the depositary five years from the date on which the present Convention
comes into force to review the working of the Convention, with particular
reference to its implementation, and to consider and adopt appropriate
(2) The depositary shall, four years from
the date on which the present Convention comes into force, seek the views
of all States entitled to attend the Review Conference and shall, on the
basis of the views received, prepare and circulate a draft agenda as well
as amendments proposed for consideration by the Conference.
(3) Further review conferences shall be similarly
convened every five years, or at any time after the first Review Conference,
at the request of one-third of the Contracting Parties to the present Convention,
unless the first Review Conference decides otherwise.
(4) Notwithstanding the provisions of Article
52(1), if the present Convention has not entered into force five years
from the date of the adoption of the Final Act of the United Nations Conference
of Plenipotentiaries on a Code of Conduct for Liner Conferences, a Review
conference shall, at the request of one-third of the States entitled to
become Contracting Parties to the present Convention, be convened by the
Secretary-General of the United Nations, subject to the approval of the
General Assembly, in order to review the provisions of the Convention and
its Annex and to consider and adopt appropriate amendments.
Functions of the depositary
(1) The depositary shall notify the signatory
and acceding States of:
(a) signatures, ratifications, acceptances,
approvals and accessions in accordance with Article 48;
(b) the date on which the present Convention
enters into force in accordance with Article 49;
(c) denunciations of the present Convention
in accordance with Article 50;
(d) reservations to the present Convention
and the withdrawal of reservations;
(e) the text of the legislative or other measures
which each Contracting Party has taken in order to implement the present
Convention in accordance with Article 47;
(f) proposed amendments and objections to
proposed amendments in accordance with Article 51; and
(g) entry into force of amendments in accordance
with Article 51(3).
(2) The depositary shall also undertake such
actions as are necessary under Article 52.
Authentic texts - deposit
The original of the present Convention, of
which the Chinese, English, French, Russian and Spanish texts are equally
authentic, will be deposited with the Secretary-General of the United Nations.
IN WITNESS WHEREOF the undersigned,
having been duly authorized to this effect by their respective governments,
have signed the present Convention, on the dates appearing opposite their
MODEL RULES OF PROCEDURE FOR INTERNATIONAL
(1) Any party wishing to institute conciliation
proceedings under the Code shall address a request to that effect in writing,
accompanied by a statement of claim to the other party, and copied to the
(2) The statement of claim shall:
(a) designate precisely each party to the
dispute and state the address of each;
(b) contain a summary statement of pertinent
facts, the issues in dispute and the claimant's proposal for the settlement
of the dispute;
(c) state whether an oral hearing is desired
and, if so, and to the extent then known, the names and addresses of persons
to give evidence, including experts' evidence, for the claimant;
(d) be accompanied by such supporting documentation
and relevant agreements and arrangements entered into by the parties as
the claimant may consider necessary at the time of making the claim;
(e) indicate the number of conciliators required,
any proposal concerning the appointment of conciliators, or the name of
the conciliator appointed by the claimant in accordance with Article 32(2);
(f) contain proposals, if any, regarding rules
(3) The statement of claim shall be dated
and shall be signed by the party.
(1) If the respondent decides to reply to
the claim, he shall, within thirty days following the date of his receipt
of the statement of claim, transmit a reply to the other party and copied
to the Registrar.
(2) The reply shall:
(a) contain a summary statement of pertinent
facts opposed to the contentions in the statement of claim, the respondent's
proposal, if any, for the settlement of the dispute and any remedy claimed
by him with a view to the settlement of the dispute;
(b) state whether an oral hearing is desired
and, if so, and to the extent then known, the names and addresses of persons
to give evidence, including experts' evidence, for the respondent;
(c) be accompanied by such supporting documentation
and relevant agreements and arrangements entered into by the parties as
the respondent may consider necessary at the time of making the reply;
(d) indicate the number of conciliators required,
any proposal concerning the appointment of conciliators, or the name of
the conciliator appointed by the respondent in accordance with Article
(e) contain proposals, if any, regarding rules
(3) The reply shall be dated and shall be
signed by the party.
(1) Any person or other interest desiring
to participate in conciliation proceedings under Article 34, shall transmit
a written request to the parties to the dispute, with a copy to the Registrar.
(2) If participation in accordance with (a)
of Article 34 is desired, the request shall set forth the grounds therefor,
including the information required under Rule 1(2)(a), (b) and (d).
(3) If participation in accordance with (b)
of Article 34 is desired, the request shall state the grounds therefor
and which of the original parties would be supported.
(4) Any objection to a request for joinder
by such a party shall be sent by the objecting party, with a copy to the
other party, within seven days of receipt of the request.
(5) In the event that two or more proceedings
are consolidated, subsequent requests for third-party participation shall
be transmitted to all parties concerned, each of which may object in accordance
with the present Rule.
By agreement between the parties to a dispute,
on motion by either party, and after affording the parties an opportunity
of being heard, the conciliators may order the consolidation or separation
of all or any claims then pending between the same parties.
(1) Any party may challenge a conciliator
where circumstances exist that cause justifiable doubts as to his independence.
(2) Notice of challenge, stating reasons therefor,
should be made prior to the date of the closing of the proceedings, before
the conciliators have rendered their recommendation. Any such challenge
shall be heard promptly and shall be determined by majority vote of the
conciliators in the first instance, as a preliminary point, in cases where
more than one conciliator has been appointed. The decision in such cases
shall be final.
(3) A conciliator who has died, resigned,
become incapacitated or disqualified shall be replaced promptly.
(4) Proceedings interrupted in this way shall
continue from the point where they were interrupted, unless it is agreed
by the parties or ordered by the conciliators that a review or re-hearing
of any oral testimony takes place.
The conciliators shall be judges of their
own jurisdiction and/or competence within the provisions of the Code.
(1) The conciliators shall receive and consider
all written statements, documents, affidavits, publications or any other
evidence, including oral evidence, which may be submitted to them by or
on behalf of any of the parties, and shall give such weight thereto as
in their judgment such evidence merits.
(2) (a) Each party may submit to the conciliators
any material it considers relevant, and at the time of such submission
shall deliver certified copies to any other party to the proceedings, which
party shall be given a reasonable opportunity to reply thereto.
(b) The conciliators shall be the sole judges
of the relevance and materiality of the evidence submitted to them by the
(c) The conciliators may ask the parties to
produce such additional evidence as they may deem necessary to an understanding
and determination of the dispute, provided that, if such additional evidence
is produced, the other parties to the proceedings shall have a reasonable
opportunity to comment thereon.
(1) Whenever a period of days for the doing
of any act is provided for in the Code or in these Rules, the day from
which the period begins to run shall not be counted, and the last day of
the period shall be counted, except where that last day is a Saturday,
Sunday or a public holiday at the place of conciliation, in which case
the last day shall be the next business day.
(2) When the time provided for is less than
seven days, intermediate Saturdays, Sundays and public holidays shall be
excluded from the computation.
Subject to the provisions relating to procedural
time-limits in the Code, the conciliators may, on a motion by one of the
parties or pursuant to agreement between them, extend any such time-limit
which has been fixed by the conciliators.
(1) The conciliators shall fix the order of
business and, unless otherwise agreed, the date and hour of each session.
(2) Unless the parties otherwise agree, the
proceedings shall take place in private.
(3) The conciliators shall specifically inquire
of all the parties whether they have any further evidence to submit before
declaring the proceedings closed, and a noting thereof shall be recorded.
(1) Conciliators' recommendations shall be
in writing and shall include:
(a) the precise designation and address of
(b) a description of the method of appointing
conciliators, including their names;
(c) the dates and place of the conciliation
(d) a summary of the conciliation proceedings,
as the conciliators deem appropriate;
(e) a summary statement of the facts found
by the conciliators;
(f) a summary of the submissions of the parties;
(g) pronouncements on the issues in dispute,
together with the reasons therefor;
(h) the signatures of the conciliators and
the date of each signature; and
(i) an address for the communication of the
acceptance or rejection of the resommendation.
The recommendation shall, so far as possible,
contain a pronouncement on costs in accordance with the provisions of the
Code. If the recommendation does not contain a full pronouncement on costs,
the conciliators shall, as soon as possible after the recommendation, and
in any event not later than sixty days thereafter, make a pronouncement
in writing regarding costs as provided in the Code.
Conciliators' recommendations shall also take
into account previous and similar cases whenever this would facilitate
a more uniform implementation of the Code and observance of conciliators'
The tonnage requirements for the purposes of Article 49(1) are set out
in the report of the United Nations Conference of Plenipotentiaries on
a Code of Conduct for Liner Conferences on the second part of its session
(TD/CODE/ 10), annex I.