The Multimodal Transportation Act (No.2 of 2021) (MTA) came into force on 28 November 2021 and is the first legislation in Singapore with regards to multimodal transportation. The MTA gives effect to the 2005 ASEAN Framework Agreement on Multimodal Transport (AFAMT) which Singapore ratified on 29 October 2021. The AFAMT aims to provide a single, unified framework for the Multimodal transport of goods within ASEAN under a Multimodal Transport Contract (MTC) after all 10 ASEAN countries have ratified the agreement. As at the date of this article by Starboard, 8 out of the 10 ASEAN countries have ratified the AFAMT.

The MTA will apply to the carriage of goods by at least two different modes of transport under a single MTC where the origin and/or destination of the goods delivery is an ASEAN member state if the Multimodal Transport Operator (MTO) is registered with the competent national body established in the ASEAN member states. The different modes of transport defined in the MTA refer to transport by road, rail, inland waterways, sea or air. The MTA will apply to the MTO, its servants, agents, and any other person whose services the MTO had used to perform the MTC. Readers of Starboard should note some of the following key features of the MTA:

• Registration of Multimodal Transport Operators

The competent national body in Singapore is the Land Transport Authority (LTA). The LTA has established the Singapore AFAMT Registry of Multimodal Transport Operators (Singapore AFAMT Registry) on 28 November 2021. While registration with the Singapore AFAMT Registry is strictly optional, MTOs who register with the Singapore AFAMT Registry will be able to enjoy the benefits of the AFAMT and be covered under the MTA.

• Multimodal Transport Document

The Multimodal Transport Document (MTD) is a single transport document, signed and issued by the MTO or its agent to the consignor of the goods once the MTO takes charge of the goods. A MTD can be issued in negotiable or non-negotiable form at the option of the consignor of goods, and serves as prima facie evidence that the MTO has taken charge of the goods.

• Duties and Liabilities of MTOs

The MTO acts as the principal for the goods and assumes responsibility of the MTC. The period of responsibility of the MTO begins at the time the MTO takes charge of the goods that are subject to the MTC and ends at the time the goods are delivered. Within the period of responsibility, MTOs are liable for any act or omission that causes loss, damage or delay in delivery of goods. This creates a single standard of liability over the different modes of transport. In this regard, it is a pre-requisite for the MTO to have an insurance, bond, guarantee or other financial agreements to cover payment for any claim arising from any loss, damage or delay in the delivery of goods under a MTC, as well as any contractual risk assumed by the MTO in relation to the performance of carriage of any goods under the MTC.

• Duties and Liabilities of Consignors

The consignor is deemed to have guaranteed the MTO that at the time the MTO takes the goods, all particulars specified in the MTD, including among others, the dangerous character of the goods, are accurate. Any loss resulting from inadequacy of any particulars or information will result in the consignor indemnifying the MTO against the said loss.

• Limitation of Liability for MTO

The liability incurred by the MTO will not exceed the equivalent of 666.67 SDR per package of shipping unit of goods lost or damaged or 2.00 SDR per kilogram of gross weight of goods lost or damaged. Further, if the MTO does not provide carriage of goods by sea, liability limited to amount not exceeding 8.33 SDR per kilogram of gross weight loss or damaged. However, if loss of, damage or delay in the delivery of goods is proved to be a result from an act or omission of the MTO with an intention to cause such loss, damage or delay or recklessly with knowledge that such loss, damage or delay would probably result, the MTO will not be entitled to the limitation of liability provisions prescribed in the MTA.

• Time Bar

The standard time bar is within 9 months after the delivery of the goods that are the subject of the MTC. If goods have not been delivered, parties must commence an action or proceedings within 9 months after the date on which the goods should have been delivered or after the date on which there is a delay in delivery, failure to deliver the goods would give the consignee of the goods the right to treat the goods as lost.

In light of the COVID-19 pandemic, efforts to integrate and harmonise existing laws is both valued and recognised. The MTA will allow Singapore to maintain its competitive edge and increase opportunities for logistic providers in ASEAN. Transport intermediaries and insurance providers should seek professional legal advice in relation to their rights, obligations and liabilities in relation to the MTA.