Multimodal transport – liability for freight damage
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Introduction to multimodal transport and liability

Multimodal transport occurs when the carrier is commissioned to transport an entire route using various means of transport (e.g., truck, rail, ship). In such a multimodal freight contract ("network system"), the carrier's liability is governed by the liability regulations applicable to the respective means of transport. These regulations vary depending on the route and the specific means of transport.

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Liability according to the place of damage

In the case of damage whose location is known, case law applies the hypothetical contract for the transport on the leg of the journey on which the damage occurred. This means that not the entire multimodal transport is considered, but only the section on which the damage occurred. The relevant points here are the start and end of the affected leg, not the place of takeover and delivery of the entire multimodal transport.

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Interim storage and its legal treatment

Multimodal transports are generally divided into only partial routes and not further into intermediate stages such as unloading and reloading. (Short-term) interim storage integrated into the transport process does not constitute a separate contractual relationship, such as a warehousing contract. Unless otherwise agreed, such interim storage is treated according to the general provisions of freight law. Even if interim storage lasts several days, it is considered "short-term" if it merely serves to prepare for the subsequent transport section.

Liability for intermediate storage and transshipment

In the present case, the interim storage and transshipment of the container took place at the second defendant's terminal. These measures are part of the overall transport process and therefore do not constitute a separate stage of multimodal transport. The liability of the first defendant (carrier) continues to be assessed according to general freight law principles, even if transshipment and interim storage did take place.

Decision of the Supreme Court of 27 May 2020, 7 Ob 45/20y

The plaintiff commissioned the first defendant with the entire transport from Upper Austria to the USA, using various means of transport. The intermediate storage and reloading were not separately agreed upon, but were part of the overall transport. The damage occurred during normal handling of the container during the change of means of transport and does not constitute a separate phase of the transport.

The interim storage took place at the terminal of the second defendant, which acted as a subcontractor for T***** T***** GmbH. The latter had been commissioned by the first defendant with the transshipment and rail transport. The first defendant's liability therefore also extends to the subcontractor and cannot be exempted from freight liability under the CIM (International Convention for the International Sale of Goods).

Expert support for multimodal transport

If you are involved in a multimodal transport process and need support in clarifying liability issues or legally assessing cargo damage, we are happy to assist you. Our experts offer you in-depth advice on your rights and obligations as a client or carrier. We help you understand the complex legal issues and determine the appropriate liability regime for your case. Trust our experience and expertise to enforce your claims and protect your legal interests. Contact us today for a personalized consultation!

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