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.
Legal Use & context
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.
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.