Understanding the Code of Liner Conduct: A Comprehensive Guide
Definition & meaning
The Code of Liner Conduct is an international agreement established under the United Nations Conference on Trade and Development (UNCTAD). It aims to regulate shipping activities between countries based on the volume of shipments. According to this code, the distribution of shipping traffic is structured as follows:
40 percent is allocated to shipping companies from the country of origin.
40 percent is designated for shipping companies from the country of destination.
20 percent is reserved for shipping companies from a third country, which is neither the origin nor the destination.
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The Code of Liner Conduct is primarily used in international trade and maritime law. It is relevant for shipping companies, importers, and exporters who engage in cross-border trade. Legal professionals may reference this code when advising clients on shipping agreements and international logistics. Users can manage related forms and procedures with tools like US Legal Forms, which provide templates drafted by qualified attorneys.
Key Legal Elements
Real-World Examples
Here are a couple of examples of abatement:
For instance, if a company in the United States is exporting goods to Germany, under the Code of Liner Conduct, 40 percent of the shipping traffic would go to a U.S. shipping company, 40 percent to a German shipping company, and 20 percent to a shipping company from a third country, such as Canada.
(Hypothetical example) A French company imports electronics from Japan. The shipping traffic would be divided accordingly, ensuring that both French and Japanese companies benefit from the trade.
Comparison with Related Terms
Term
Description
Difference
Shipping Agreement
A contract between parties regarding the terms of shipping goods.
The Code of Liner Conduct is a broader regulation affecting multiple countries, while a shipping agreement is specific to individual transactions.
Freight Forwarding
A service that arranges the transportation of goods on behalf of shippers.
Freight forwarding focuses on logistics and transportation services, whereas the Code of Liner Conduct regulates the allocation of shipping traffic.
Common Misunderstandings
What to Do If This Term Applies to You
If you are involved in international shipping, familiarize yourself with the Code of Liner Conduct to ensure compliance with its regulations. Consider using US Legal Forms to access templates for shipping agreements and other related documents. If your situation is complex, consulting a legal professional is advisable.
Quick Facts
Jurisdiction: International
Allocation Percentages: 40% origin, 40% destination, 20% third country
Purpose: Regulate fair shipping practices
Key Takeaways
FAQs
It is an international agreement that regulates shipping traffic based on shipment quantities between countries.
It allocates shipping traffic percentages to companies based on their country of origin, destination, or a third country.
Yes, using resources like US Legal Forms can help you create compliant shipping agreements.
