On 5 January 2021, the Multimodal Transport Bill ("Bill") was passed by the Parliament of Singapore. The Multimodal Modal Transport Act 2021 ("Act") was assented to by the President on 5 February 2021 and will come into operation on a date that the Minister appoints. The Act facilitates Singapore's anticipated ratification of the ASEAN Framework Agreement on Multimodal Transport ("Agreement"), which should take place later this year.
By way of background, the Agreement was signed by Singapore on 17 November 2005, and will provide a single, unified framework for the multimodal transport of goods within the Association of Southeast Asian Nations ("ASEAN") once it has been ratified by all ASEAN member countries. This will facilitate market access for Singapore logistics operators to operate in other ASEAN member countries under a set of regionally aligned standards.
The Act will apply to the carriage of goods via more than one transport mode, whether through air, land, or sea. These goods are carried by a multimodal transport operator registered with the Competent National Body ("CNB") established in each ASEAN member state, under a single multimodal transport contract where the origin or destination of the goods is in an ASEAN member country.
The Act covers five key areas:
- Registration with the Singapore CNB;
- Issuance of multimodal transport documents ("MTDs");
- Liabilities of multimodal transport operators (MTOs);
- Duties and liabilities of consignors; and
- Miscellaneous matters.
Given the new responsibilities and liabilities involved, we urge all multimodal transport operators, consignors, and consignees to review the new provisions carefully, including the time bar and the legal significance of MTDs, among other things.
For more information, click here to read our Legal Update.
