ICC develops transport guide
Masakorala, member of expert group:
Contracts of sale and transport can be tricky even for the most
The slightest of errors may cause substantial repercussions such as
detained shipments, spoiled supply chain planning, wrong cost allocation
and delayed payments.
The ICC (International Chamber of Commerce) Guide on Transport and
the Incoterms - 2010 Rules was developed by the ICC expert group to
bridge the gap between expectations and execution. CEO, Shippers'
Academy Colombo, Rohan Masakorala was one of the members of the expert
group on the new ICC guide 2016 on Transport and the Incoterms - 2010
Rules, Understanding contracts for carriage.
Masakorala is one of the first Sri Lankans to be part of this global
team that developed the rules of law.
"This book was designed subsequent to the Incoterms 2010, as a guide
to international transport companies to understand the real liability
and the responsibility of the contracts.
We first had a dialogue with ICC when I was the Secretary General of
the Asian Shippers' Council in 2010 and subsequently I represented the
London-based Global Shippers' Forum (GSF) as well at the ICC as a
working group on surcharges. This was a very long walk as we had to
consider complication of global transportation and various views,"
"I am glad to be part of this new book that will add value to
international trade/transport and would be a good guidance in reviving
national laws etc. which would help Sri Lanka too. At ICC we also
believe that bad things happen when contracts do not align, and the
parties to one do not necessarily understand the obligations set forth
in the other, Sri Lanka too had this experience until few years ago," he
In fact, two contracts should be utilized: a sales contract to
outline the responsibilities that the seller and buyer have to one
another; and a transportation contract that states the commitments
between the carrier and the party contracting for carriage.
This division must be made as a contract of carriage involves
separate parties and has to adhere to an entirely different set of
According to an ICC official, the guide provides parties contracting
for carriage and related services and those providing them, a clearer
understanding of each other's intentions and concerns. Each of the
various buyer-seller Incoterms rules is explained to help simplify what
is needed of the shipping providers and relevant shipping practices are
outlined where possible.