31 January 2025

International Air Cargo Carriage Agreement

January 31, 2025

BRACE Law Firm ©

In the current stage of economic development, it is difficult to imagine a world without a stable functioning air transport system. Transportation speeds increase daily, as do the distances that must be covered in the shortest possible timeframes.

An aircraft is an inherently dangerous object. Consequently, the legal regulation of carriage by this mode of transport has specific features related to the need to ensure aviation security and the safety of goods entrusted for carriage. The carriage agreement is the primary legal instrument for regulating air transportation. This article examines the specific features of air cargo carriage.

National Legal Regulation of International Air Cargo Carriage in Russia

The Civil Code of the Russian Federation (the "Civil Code") and the Air Code of the Russian Federation (the "Air Code") establish the framework for these activities. The Air Code specifies that legal entities and individual entrepreneurs performing commercial air carriage must comply with general air cargo carriage rules and service requirements for shippers and consignees. These requirements are established by federal aviation rules approved by the federal executive body responsible for state policy and legal regulation in civil aviation. [1]

Carriers may establish their own rules for air carriage. These rules must not contradict general air carriage rules or lower the level of service provided to shippers and consignees (Article 102 of the Air Code).

According to the Federal Aviation Rules On General Rules for the Air Carriage of Passengers, Baggage, and Cargo and Requirements for the Service of Passengers, Shippers, and Consignees,[2] cargo is accepted for carriage under the following conditions:

The dimensions of the cargo must allow for free loading (unloading) into the aircraft, placement in baggage and cargo compartments, and securing, including on/in unit load devices;
The weight, dimensions, or volume of the cargo do not exceed the standards established for the specific aircraft type, including when secured on/in unit load devices;
The cargo must have intact packaging that ensures secure placement and fastening on board the aircraft and safety during carriage, transshipment, reloading, transportation, and storage;
The packaging of each cargo unit must have shipper and transport markings, and cargo requiring special carriage conditions must also have special markings;
During carriage, the cargo must not pose a danger to passengers, aircraft crew members, or other baggage or cargo carried on the same flight;
The shipper must provide the necessary documents required by the laws of the Russian Federation, the laws of the country to, from, or through which the carriage is performed, and international treaties, including the Technical Instructions for the Safe Transport of Dangerous Goods by Air (ICAO Doc 9284 AN/905), as well as the carrier's rules;
The import, export, transit, or transfer of cargo must be permitted by the laws and regulations of the country to, from, or through which the carriage is performed.

If any of these conditions are not met, the carrier may refuse to accept the cargo for carriage.

The carrier must deliver cargo accepted for air carriage to the destination within the established timeframe. The delivery period is determined by federal aviation rules or the carrier’s air carriage rules unless otherwise provided by the air cargo carriage agreement. Specifically, cargo must be delivered to the airport of departure considering the time required for processing, pre-flight formalities, and requirements related to border, customs, sanitary-quarantine, veterinary, and phytosanitary control as provided by the laws of the Russian Federation and/or the laws of the country of departure. Acceptance of cargo from the shipper is carried out taking these timeframes into account.

The carrier is liable to the cargo owner in the manner prescribed by the laws of the Russian Federation, international treaties of the Russian Federation, and the air cargo carriage agreement.

International Regulation of Air Carriage

Until recently, the legal regime for international air carriage was governed by the Warsaw Convention for the Unification of Certain Rules Relating to International Carriage by Air of 1929 (the "Warsaw Convention"), which significantly limited the liability of the air carrier. The Warsaw Convention established the carrier’s fault-based liability for death or injury to passengers and for loss of or damage to cargo and baggage. Liability was limited to 125,000 francs for passenger injury or death, 250 francs per kilogram of cargo and baggage, and 5,000 francs for a passenger's hand luggage.

In addition to the Warsaw Convention itself, there is a series of protocols and one supplementary convention:

The Hague Protocol of September 28, 1955, which established that sums specified in francs refer to a currency unit consisting of 65.5 milligrams of gold of millesimal fineness 900. These sums may be converted into any national currency. In judicial proceedings, conversion into national currencies without gold content is based on the gold value of such currencies on the date of the judgment;
The Guadalajara Convention of 1961 supplementary to the Warsaw Convention, for the Unification of Certain Rules Relating to International Carriage by Air Performed by a Person Other than the Contracting Carrier;
Montreal Additional Protocol No. 1 of 1975, amending the Warsaw Convention;
Montreal Additional Protocol No. 2 of 1975, amending the Warsaw Convention as amended by the Hague Protocol of 1955;
Montreal Additional Protocol No. 4 of 1975, amending the Warsaw Convention as amended by the Hague Protocol of 1955, specifically regarding cargo carriage.

Russia is a party to the Warsaw Convention, the Hague Protocol of 1955, and the Guadalajara Convention of 1961.

Over many years, the Warsaw Convention underwent revisions to increase the air carrier's liability, turning it into a complex system of documents. A state's participation in one document does not always mean it participates in others. For example, a country party to the Hague Protocol participates in the Warsaw Convention as amended by the Hague Protocol, but not in the original Warsaw Convention (Articles 21 and 23 of the Hague Protocol). Carriage between a state party only to the Warsaw Convention and a state party only to the Hague Protocol is excluded from the scope of both documents.

Furthermore, some protocols have not entered into force, such as the Guatemala City Protocol of 1971 and Montreal Additional Protocol No. 3 of 1975.

Pursuant to Federal Law No. 52-FZ dated April 3, 2017, On the Accession of the Russian Federation to the Convention for the Unification of Certain Rules for International Carriage by Air, Russia joined the Convention for the Unification of Certain Rules for International Carriage by Air (concluded in Montreal on May 28, 1999) (the "Montreal Convention").

The Montreal Convention is universal in nature. The regime it establishes provides for unlimited and, up to certain limits, absolute liability of the carrier for death or injury to passengers, and strict liability for the safety of cargo and baggage. A state’s accession to the Montreal Convention does not require the denunciation of the Warsaw Convention and does not result in the automatic withdrawal of the country from the Warsaw system. This ensures no legal vacuum exists for carriage between a state that has joined the new Convention and a state that remains party only to the Warsaw documents. Article 55 of the Montreal Convention stipulates that it prevails over the Warsaw system for carriage between states that are both parties to the Montreal Convention. As of December 31, 2023, 139 states are parties to the Montreal Convention.

The Montreal Convention applies to all international carriage of persons, baggage, or cargo performed by aircraft for reward. It also applies to gratuitous carriage performed by an aircraft by an air transport undertaking. International carriage is defined as any carriage in which, according to the agreement between the parties, the place of departure and the place of destination are situated either within the territories of two States Parties, or within the territory of a single State Party if there is an agreed stopping place within the territory of another State, even if that State is not a State Party. Carriage between two points within the territory of a single State Party without such an agreed stopping place is not considered international.

The Montreal Convention does not apply to international postal items moved by air.

Currently, two different legal regimes for international air cargo carriage operate globally. The Warsaw Convention and its supplementary documents continue to apply to carriage between countries participating in them. Article 55 of the Montreal Convention resolves conflicts by ensuring that accession does not destroy the Warsaw system regime for carriage involving non-parties to the Montreal Convention. The Montreal Convention prevails over the Warsaw Convention for carriage between states that are parties to both.

In addition to these conventions, the Convention on International Civil Aviation (the "Chicago Convention"), adopted on December 7, 1944, also governs the field. The Soviet Union signed this Convention on November 14, 1970, and simultaneously joined the International Civil Aviation Organization (ICAO). Following the dissolution of the USSR, the Russian Federation notified the UN Secretary-General on December 24, 1991, that it would maintain full responsibility for all rights and obligations of the USSR under the UN Charter. A diplomatic note was also delivered to the President of the ICAO Council confirming the Russian Federation's succession to all rights and obligations of the USSR in the ICAO. [3]

Under this convention, each State Party undertakes to collaborate in securing the highest practicable degree of uniformity in regulations, standards, procedures, and organization regarding aircraft, personnel, airways, and auxiliary services to facilitate and improve air navigation.

Terms and Conclusion of an International Air Cargo Carriage Agreement

Article 102 of the Air Code defines an air cargo carriage agreement as a contract under which the carrier undertakes to deliver cargo entrusted by the shipper to the destination and issue it to the person authorized to receive it (the consignee), and the shipper undertakes to pay for the air carriage of the cargo.

Both conventions imply that international air carriage requires a carriage agreement between the carrier and the shipper. The absence of a carriage agreement precludes the application of the conventions and, typically, domestic transport laws that limit carrier liability. For instance, the conventions should not apply to injury or damage if the persons or property were on board without the carrier's consent. In such cases, the transport organization's liability arises not from the contract but under general domestic laws governing torts.[4]

An air cargo carriage agreement may include the following general provisions:

Subject of the contract;
Rights and obligations of the parties;
Cost of carriage;
Procedure for acceptance of services;
Payment procedure;
Liability of the parties;
Dispute resolution procedure.

Under the Montreal Convention, an air waybill or a cargo receipt is prima facie evidence of the conclusion of the contract, the acceptance of the cargo, and the conditions of carriage mentioned therein.

Documenting Cargo for International Air Carriage

In Russia, mandatory forms and rules for completing an air waybill are currently established only for electronic air waybills.

Ministry of Transport Order No. 300 dated August 10, 2018, On Approval of the Form of the Electronic Air Waybill in Civil Aviation, approved the electronic air waybill form. This document certifies the conclusion of an air cargo carriage agreement where the carriage information is provided in digital form. The electronic air waybill consists of an electronic control coupon and a cargo carriage receipt, contains specific information, and has a unique number.

Pursuant to Article 105 of the Air Code, an air waybill is a transport document used in air cargo carriage services. It certifies the conclusion of the air cargo carriage agreement, the acceptance of the cargo for carriage, and the conditions of carriage. The form of the air waybill is established by the Ministry of Transport of Russia.

According to Ministry of Transport Order No. 82 dated June 28, 2016, transport documents are issued by entering the necessary data into an electronic or paper form manually, automatically, or electronically.

The air waybill contains details of the cargo carriage from the airport (point) of departure to the airport (point) of destination, as well as payment details. If issued in paper form, the first copy remains with the carrier, the second copy is for the consignee and accompanies the cargo, and the third copy is returned to the shipper upon acceptance of the cargo. If issued in electronic form, the shipper is provided with a cargo carriage receipt upon request. The air waybill is issued based on a cargo carriage application signed by the shipper. The shipper must provide accurate and sufficient information required for issuing the air waybill.

In 1992, the International Air Transport Association (IATA) and the International Federation of Freight Forwarders Associations (FIATA) developed and implemented a pro forma Neutral Air Waybill (Neutral AWB), which became so popular that it is now universally applicable and effectively mandatory.[5]

Under the Montreal Convention, an air waybill is issued for international air cargo carriage. Any other means which would preserve a record of the carriage to be performed may be substituted for the delivery of an air waybill. If such other means are used, the carrier shall, if so requested by the shipper, deliver to the shipper a cargo receipt permitting identification of the shipment and access to the information contained in the record.

The air waybill or cargo receipt must include:

Indication of the places of departure and destination;
If the places of departure and destination are within the territory of a single State Party and there are one or more agreed stopping places within the territory of another State, an indication of at least one such stopping place;
Indication of the weight of the consignment.

To comply with formalities established by customs, police, and similar public authorities, the shipper may be required to provide a document indicating the nature of the cargo. This provision does not create any duty, obligation, or liability for the carrier.

The Montreal Convention also stipulates that the air waybill shall be made out by the shipper in three original parts. The first part shall be marked "for the carrier" and signed by the shipper. The second part shall be marked "for the consignee" and signed by the shipper and the carrier. The third part shall be signed by the carrier and handed to the shipper after the cargo has been accepted. The signatures of the carrier and the shipper may be printed or stamped. If, at the request of the shipper, the carrier makes out the air waybill, the carrier shall be deemed, subject to proof to the contrary, to have done so on behalf of the shipper.

When there is more than one package, the carrier has the right to require the shipper to make out separate air waybills or issue separate cargo receipts.

Non-compliance with documentation requirements does not affect the existence or validity of the carriage agreement, which remains subject to the Montreal Convention rules, including those concerning limitation of liability.

The shipper is responsible for the correctness of the particulars and statements relating to the cargo inserted by it or on its behalf in the air waybill or furnished by it or on its behalf to the carrier for insertion in the cargo receipt. This also applies where the person acting on behalf of the shipper is also the agent of the carrier.

The shipper shall indemnify the carrier against all damage suffered by it, or by any other person to whom the carrier is liable, by reason of the irregularity, incorrectness, or incompleteness of the particulars and statements furnished by the shipper or on its behalf.

The carrier shall indemnify the shipper against all damage suffered by it, or by any other person to whom the shipper is liable, by reason of the irregularity, incorrectness, or incompleteness of the particulars and statements inserted by the carrier or on its behalf in the cargo receipt or in the record preserved by other means.

Statements in the air waybill or cargo receipt relating to the weight, dimensions, and packaging of the cargo, as well as those relating to the number of packages, are prima facie evidence of the facts stated. Those relating to the quantity, volume, and condition of the cargo do not constitute evidence against the carrier except so far as they both have been, and are stated in the air waybill or cargo receipt to have been, checked by the carrier in the presence of the shipper, or relate to the apparent condition of the cargo.

Please note that according to Article 106 of the EAEU Customs Code, information regarding the weight of goods (gross weight and net weight) must be specified in the goods declaration.

For example, in Case No. A60-67052/2023, the customs authority filed an administrative offense report against an air carrier under Part 3 of Article 16.1 of the Code of Administrative Offenses of the Russian Federation. The offense involved providing incorrect information about the gross weight of goods when placing them in a temporary storage warehouse by submitting invalid documents. Appealing the administrative penalty, the carrier argued that there is no established obligation for an air carrier to report the gross weight of moved goods to customs. The courts, citing legal norms, concluded "that the carrier has an obligation to report accurate information about the gross weight of moved goods to the customs authority". [6]

The shipper has the right, provided it fulfills all obligations under the carriage agreement, to dispose of the cargo by withdrawing it at the airport of departure or destination, stopping it in the course of the journey at any landing, calling for it to be delivered at the place of destination or in the course of the journey to a person other than the original consignee, or requiring it to be returned to the airport of departure. The shipper must not exercise this right of disposition in a manner that prejudices the carrier or other shippers and must reimburse all expenses resulting from the exercise of this right.

If it is impossible to carry out the shipper’s instructions, the carrier must notify the shipper immediately. If the carrier complies with the shipper's instructions for the disposition of cargo without requiring the production of the part of the air waybill or the cargo receipt delivered to the latter, the carrier will be liable, without prejudice to its right of recovery from the shipper, for any damage caused thereby to any person who is lawfully in possession of that part of the air waybill or the cargo receipt.

The shipper’s right ceases at the moment when that of the consignee begins. However, if the consignee declines to accept the cargo, or cannot be communicated with, the shipper resumes its right of disposition.

The consignee is entitled, on arrival of the cargo at the place of destination, to require the carrier to deliver the cargo to it, on payment of the charges due and on complying with the conditions of carriage. Unless it is otherwise agreed, the carrier must notify the consignee as soon as the cargo arrives.

If the carrier admits the loss of the cargo, or if the cargo has not arrived at the expiration of seven days after the date on which it ought to have arrived, the consignee is entitled to enforce against the carrier the rights which flow from the carriage agreement.

The shipper must furnish such information and such documents as are necessary to meet the formalities of customs, police, and any other public authorities before the cargo can be delivered to the consignee. The shipper is liable to the carrier for any damage occasioned by the absence, insufficiency, or irregularity of any such information or documents, unless the damage is due to the fault of the carrier, its servants, or agents. The carrier is under no obligation to enquire into the correctness or sufficiency of such information or documents.

Liability of the Airline in International Air Carriage

The carrier is liable for damage sustained in the event of the destruction or loss of, or damage to, cargo upon condition only that the event which caused the damage so sustained took place during the air carriage. The air carriage comprises the period during which the cargo is in the charge of the carrier.

During the consideration of Case No. A40-212059/2022, the defendant lost the cargo during air carriage, thereby violating the plaintiff’s rights and causing losses.[7]

However, the carrier is not liable if and to the extent that it proves that the destruction, or loss of, or damage to, the cargo resulted from one or more of the following:

Inherent defect, quality, or vice of that cargo;
Defective packing of that cargo performed by a person other than the carrier or its servants or agents;
An act of war or an armed conflict;
An act of public authority carried out in connection with the entry, exit, or transit of the cargo.

The period of the air carriage does not extend to any carriage by land, by sea, or by inland waterway performed outside an airport. If, however, such carriage takes place in the performance of a contract for air carriage, for the purpose of loading, delivery, or transshipment, any damage is presumed, subject to proof to the contrary, to have been the result of an event which took place during the air carriage. If a carrier, without the consent of the shipper, substitutes carriage by another mode of transport for the whole or part of a carriage which, according to the agreement between the parties, was to be by air, such carriage by another mode of transport is deemed to be within the period of air carriage.

For example, Case No. A40-148451/21 involved damage to the plaintiff’s cargo during air carriage. The courts established that the damage was confirmed by the case materials, and the carrier's liability did not exceed the limits specified in the Montreal Convention.[8]

In Case No. A40-237756/2021, the claims were based on the fact that the right of claim against the liable party passed to the insurer under Article 965 of the Civil Code. Rejecting the defendant's arguments that "in legal relations arising from an aircraft charter agreement, the charterer is not liable for cargo during carriage,"the courts stated that "aviation carriage laws do not contain exceptions to the provisions on carrier liability if the carrier performs carriage under an aircraft charter agreement; the main difference between an air charter and an air carriage agreement is that under a charter agreement, carriage is performed on a specially chartered aircraft rather than a regular flight selected by the carrier independently". [9]

In the case of combined carriage performed partly by air and partly by any other mode of carriage, the Montreal Convention applies only to the air carriage, provided that the latter is international.

The Montreal Convention emphasizes that nothing shall prevent the parties in the case of combined carriage from inserting in the document of air carriage conditions relating to other modes of carriage, provided that the Convention is observed as regards the carriage by air.

The carrier is liable for damage occasioned by delay in the air carriage of cargo. Nevertheless, the carrier shall not be liable for damage occasioned by delay if it proves that it and its servants and agents took all measures that could reasonably be required to avoid the damage or that it was impossible for it or them to take such measures.

Regarding liability under Russian law, it is determined in accordance with the Air Code. Note that Air Code norms apply to domestic carriage that is not international. The grounds for carrier liability for loss, shortage, or damage to baggage and cargo in international air carriage are determined in accordance with international treaties (Article 118 of the Air Code), i.e., the Montreal Convention.

The carrier is liable for the loss, shortage, or damage to cargo after acceptance for air carriage and until delivery to the consignee or transfer to another person or legal entity according to established rules, unless the carrier proves that all necessary measures to prevent damage were taken or that it was impossible to take such measures.

The carrier is liable for loss, shortage, or damage if it cannot prove that they were not the result of intentional acts (omissions) of the carrier or did not occur during air carriage.

Article 119 of the Air Code defines the limits of liability:

For loss, shortage, or damage to cargo accepted for air carriage with a declaration of value, in the amount of the declared value. An additional fee, set by the carriage agreement, is charged for the carriage of cargo with a declared value;
For loss, shortage, or damage to cargo accepted for air carriage without a declaration of value, in the amount of its value, but not more than 600 rubles per kilogram of cargo weight.

The value of the cargo is determined based on the price specified in the seller's invoice or provided for by the contract, or, in their absence, based on the average price for similar goods existing at the place where the cargo was to be delivered on the day of voluntary satisfaction of the claim or the day of the court decision.

For delay in delivering cargo to the destination, the carrier pays a fine of 100 rubles for each hour of delay, but not more than 50 percent of the freight charge, unless it proves the delay occurred due to force majeure, repair of aircraft malfunctions, or other circumstances beyond the carrier’s control.

The carrier has the right to conclude agreements with shippers or consignees to increase the limits of its liability compared to the limits established by the Air Code or international treaties.

Limits of Airline Liability in International Carriage

According to the Montreal Convention, in the carriage of cargo, the liability of the carrier in the case of destruction, loss, damage, or delay is limited to a sum of 17 Special Drawing Rights per kilogram, unless the shipper has made, at the time when the package was handed over to the carrier, a special declaration of interest in delivery at destination and has paid a supplementary sum if the case so requires. In that case, the carrier will be liable to pay a sum not exceeding the declared sum, unless it proves that the sum is greater than the shipper’s actual interest in delivery at destination.

In the case of destruction, loss, damage, or delay of part of the cargo, or of any object contained therein, only the total weight of the package or packages concerned shall be taken into consideration in determining the amount to which the carrier’s liability is limited. However, when the destruction, loss, damage, or delay of a part of the cargo, or of an object contained therein, affects the value of other packages covered by the same air waybill, or the same receipt or record, the total weight of such package or packages shall also be taken into consideration in determining the limit of liability.

The value of Special Drawing Rights (SDR) is based on a basket of five currencies: the US dollar, the euro, the Chinese yuan, the Japanese yen, and the British pound. The SDR value in US dollars is determined daily based on spot exchange rates at approximately noon London time. It is published on the International Monetary Fund (the "IMF") website. For example, as of January 24, 2025, the value of one SDR was 1.308170 US dollars and 128.545000 Russian rubles.[10]

Conversion of sums into national currencies in the case of judicial proceedings shall be made according to the value of such currencies in terms of the SDR at the date of the judgment. The value of a national currency, in terms of the SDR, of a State Party which is a Member of the IMF, shall be calculated in accordance with the method of valuation applied by the IMF for its own operations and transactions at the date of the judgment. The value of a national currency, in terms of the SDR, of a State Party which is not a Member of the IMF, shall be calculated in a manner determined by that State.

Nevertheless, those states which are not Members of the IMF and whose law does not permit the application of the established methods may, at the time of ratification or accession or at any time thereafter, declare that the limit of liability of the carrier in judicial proceedings in their territories is fixed at a sum of 250 monetary units per kilogram for cargo. This monetary unit corresponds to 65.5 milligrams of gold of millesimal fineness 900. These sums may be converted into the national currency concerned in round figures. The conversion of these sums into national currency shall be made according to the law of the state concerned.

Calculations shall be made in such a manner as to express in the national currency of the State Party as far as possible the same real value for the amounts as would result from the application of the SDR conversion. States Parties shall communicate to the depositary the manner of calculation or the result of the conversion as the case may be, when depositing an instrument of ratification, acceptance, approval of or accession to this Convention and whenever there is a change in either.

A carrier may stipulate that the carriage agreement shall be subject to higher limits of liability than those provided for in the Montreal Convention or to no limits of liability whatsoever.

Any provision tending to relieve the carrier of liability or to fix a lower limit than that which is laid down is null and void, but the nullity of any such provision does not involve the nullity of the whole contract.

Filing Claims in International Air Carriage

In the carriage of cargo, any action for damages, however founded, whether under the Montreal Convention or in contract or in tort or otherwise, can only be brought subject to the conditions and such limits of liability as are set out in the Montreal Convention, without prejudice to the question as to who are the persons who have the right to bring suit and what are their respective rights. In any such action, punitive, exemplary, or any other non-compensatory damages shall not be recoverable.

If an action is brought against a servant or agent of the carrier arising out of damage, such servant or agent, if they prove they acted within the scope of their employment, shall be entitled to avail themselves of the conditions and limits of liability which the carrier itself is entitled to invoke.

Note that the aggregate amount recoverable from the carrier, its servants, and agents shall not exceed the specified limits.

Receipt by the person entitled to delivery of cargo without complaint is prima facie evidence that the same has been delivered in good condition and in accordance with the document of carriage.

In the case of damage, the person entitled to delivery must complain to the carrier forthwith after the discovery of the damage, and, at the latest, within 14 days from the date of receipt of the cargo. In the case of delay, the complaint must be made at the latest within 21 days from the date on which the cargo has been placed at his or her disposal. Every complaint must be made in writing and given or dispatched within the times aforesaid. If no complaint is made within the times aforesaid, no action shall lie against the carrier, save in the case of fraud on its part.

Note that under the Montreal Convention, "days" means calendar days, not working days.

An action for damages must be brought, at the option of the plaintiff, in the territory of one of the States Parties, either before the court of the domicile of the carrier or of its principal place of business, or where it has a place of business through which the contract has been made or before the court at the place of destination. Questions of procedure shall be governed by the law of the court seized of the case.

The parties to the cargo carriage agreement may stipulate that any dispute relating to the liability of the carrier shall be settled by arbitration. Such agreement shall be in writing. The arbitration proceedings shall, at the option of the plaintiff, take place within one of the jurisdictions referred to for courts. The arbitrator or the arbitration tribunal shall apply the provisions of the Montreal Convention.

According to Clause 3 of Article 1186 of the Civil Code, if an international treaty of the Russian Federation contains substantive law norms applicable to the relevant relation, the determination of the law applicable to issues fully regulated by such substantive law norms based on conflict-of-laws rules is excluded. Since international air carriage agreements are governed by the Montreal Convention, recourse to applicable national law for issues it regulates is excluded. For all other issues not regulated by the Montreal Convention, the law of the country chosen by the parties to the agreement shall apply.

In accordance with Article 1211 of the Civil Code, in the absence of an agreement between the parties on the applicable law, the law of the country where the party performing the service that is of decisive importance for the content of the contract has its residence or principal place of business at the time of the conclusion of the contract shall apply. In an international air carriage agreement, this party is the carrier.

These provisions are deemed to be part of every arbitration clause or agreement, and any term of such a clause or agreement which is inconsistent therewith shall be null and void.

The right to damages shall be extinguished if an action is not brought within a period of two years, reckoned from the date of arrival at the destination, or from the date on which the aircraft ought to have arrived, or from the date on which the carriage stopped. The method of calculating that period shall be determined by the law of the court seized of the case.

In the case of carriage to be performed by various successive carriers, every carrier which accepts cargo is subject to the rules set out in the Montreal Convention and is deemed to be one of the parties to the carriage agreement in so far as the agreement deals with that part of the carriage which is performed under its supervision.

In the case of carriage of this nature, the person entitled to compensation can take action only against the carrier which performed the carriage during which the accident or the delay occurred, save in the case where, by express agreement, the first carrier has assumed liability for the whole journey.

As regards cargo, the shipper will have a right of action against the first carrier, and the consignee who is entitled to delivery will have a right of action against the last carrier, and further, each may take action against the carrier which performed the carriage during which the destruction, loss, damage, or delay took place. These carriers will be jointly and severally liable to the shipper or to the consignee.

Regarding the right of recourse against third parties, the Montreal Convention in no way prejudices the question as to whether a person liable for damage in accordance with its provisions has a right of recourse against any other person.

Any clause contained in the carriage agreement and all special agreements entered into before the damage occurred by which the parties purport to infringe the rules laid down by the Montreal Convention, whether by deciding the law to be applied, or by altering the rules as to jurisdiction, shall be null and void.

States Parties shall require their carriers to maintain adequate insurance covering their liability under the Montreal Convention. A State Party into which a carrier operates flights may require such carrier to furnish evidence that it maintains adequate insurance covering its liability.

In conclusion, the legal regulation of air cargo carriage agreements is implemented through the application of international treaties designed to unify rules governing such carriage and to protect the rights of shippers to the maximum extent possible.

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References

[1] Ministry of Transport Order No. 82 dated June 28, 2007, On Approval of the Federal Aviation Rules On General Rules for the Air Carriage of Passengers, Baggage, and Cargo and Requirements for the Service of Passengers, Shippers, and Consignees.

[2] Ministry of Transport Order No. 82 dated June 28, 2007.

[3] 50 years since Russia's accession to the Convention on International Civil Aviation. November 14, 2020. Information from the Rosaviatsiya website.

[4] Ostroumov N.N. System of International Private Law Unification of the Air Carriage Regime and Its Application. Moscow Journal of International Law, 2015.

[5] Golubchik A.M. Specific Features of Cargo Carriage by Air. International Banking Operations Journal, 2013, No. 4.

[6] Resolution of the Arbitration Court of the Ural District dated August 29, 2024, in Case No. A60-67052/2023.

[7] Resolution of the Arbitration Court of the Moscow District dated September 25, 2023, in Case No. A40-212059/2022.

[8] Resolution of the Ninth Arbitration Court of Appeal dated May 5, 2022, in Case No. A40-148451/2021.

[9] Resolution of the Arbitration Court of the Moscow District dated November 21, 2022, in Case No. A40-237756/2021.

[10] Information from the International Monetary Fund website.