Maritime Transport in Iran

Maritime Transport in Iran

Maritime transport is a fundamental pillar of international trade and is recognized in Iran through domestic legislation and, where relevant, international standards referenced in practice. Under Article 1 of the Iranian Maritime Law of 1964, maritime transport refers to the carriage of persons or goods by sea using a vessel. This law provides the general framework for contracts of carriage by sea, carrier liability, bills of lading, damages, and related claims.

Alongside domestic rules, international instruments such as the Hague Rules of 1924, the Hamburg Rules of 1978, and the Rotterdam Rules of 2008 have influenced how liability allocation and party rights are understood in maritime commerce. The Islamic Republic of Iran has not acceded to the Hamburg Rules, yet certain concepts may be applied through contractual incorporation or doctrinal reference in specific cases. In addition, the Ports and Maritime Organization acts as the governmental authority responsible for oversight and implementation of maritime regulations in Iran. As a result, maritime transport practice in Iran often reflects a combined framework shaped by domestic law and internationally recognized standards to the extent they are contractually or practically relevant.

Carrier Liability in Iran Toward Cargo

Under the Iranian Maritime Law, the carrier is generally required to carry and deliver the entrusted cargo within a reasonable time and with proper regard to safety and preservation. Article 52 provides that the carrier is responsible for losses arising from non-delivery, delay, total loss, or damage to cargo unless the carrier proves that the loss resulted from causes outside its control, such as fire, severe storms, unforeseeable collisions, or navigational fault attributable to the master in circumstances recognized by law.

This approach resembles the Hague Rules model in which liability is generally presumed once damage is shown, subject to recognized defenses. Internationally, the principle of due diligence requires the carrier to properly equip, man, and maintain the vessel, and to ensure the vessel’s seaworthiness within the scope of the applicable legal regime. Where cargo is received in apparent good order but delivered damaged, the bill of lading is commonly treated as the primary evidence of apparent condition at shipment, and the carrier must provide clear legal grounds to avoid liability. Absent a valid defense, the carrier may be required to compensate under the contract, Maritime Law, and general principles of civil liability.

The Role of the Bill of Lading in Maritime Claims in Iran

The bill of lading is the core document in maritime transport and plays a decisive role in defining and proving the rights and obligations of the parties. It is commonly treated as evidence of the contract of carriage, a receipt for the goods, and, in negotiable forms, a document of title. Under Article 38 of the Iranian Maritime Law, the carrier must issue a bill of lading upon receipt of the cargo, stating key particulars such as the cargo description, vessel identification, ports of loading and discharge, and relevant carriage terms.

In disputes and damage claims, the bill of lading is often the principal document used to establish shipment date, packaging condition, carriage terms, and quantity or weight received. It may also be transferable and used as collateral in banking practice. Iranian courts and arbitral tribunals typically compare the bill of lading particulars with discharge records and supporting evidence to determine liability. Where the bill of lading is transferred to a third party, the lawful holder may, in many cases, assert claims directly against the carrier.

Rules on Limitation of the Carrier’s Liability

Under Iranian maritime law, the carrier may limit liability for cargo claims, provided the limitation is properly stated in the bill of lading and does not violate public order or mandatory legal principles. Article 60 allows the carrier, in practice, to set a liability cap based on weight or declared value, which is broadly comparable to the package or unit limitation approach found in Hague-style regimes.

However, where it is proven that the loss resulted from intentional misconduct or gross negligence, limitation defenses are generally unavailable. Where the contract incorporates international regimes such as the Hamburg or Rotterdam rules, limitation thresholds may be calculated using the relevant formulas and valuation standards. In practice, shipping companies often obtain marine liability insurance to manage exposure to high-value claims. These legal and contractual limitation mechanisms are designed to protect carriers against disproportionate claims while maintaining accountability for proven fault.

Time Limits for Bringing Claims in Maritime Transport

Article 88 of the Iranian Maritime Law provides that claims against the carrier are generally subject to a one-year limitation period from the date of delivery or the scheduled delivery date. This relatively short limitation period is consistent with common international maritime practice and aims to ensure that cargo disputes are pursued promptly while evidence remains available.

If the limitation period expires, the claim may be dismissed as time-barred unless the parties have contractually extended the period or exceptional legal grounds apply that justify suspension. In complex matters requiring technical assessment, courts may rely on maritime experts or seek input from the Ports and Maritime Organization. Failure to act within the time limit or failure to preserve and submit adequate evidence can materially weaken or defeat a claim. Prompt legal action, therefore, remains essential for cargo interests and their representatives.

Marine Insurance and Cargo Loss Compensation

Marine insurance is a key mechanism for allocating and compensating transport-related risks. In Iran, it is generally governed by the Insurance Law of 1937 and relevant regulations. Marine insurance may cover hull risks, carrier liability, and cargo risks. Cargo owners may insure against hazards such as sinking, fire, collision, piracy, and other natural or human-related risks.

When a loss occurs, the insurer typically assesses the claim based on documentary evidence, expert surveys, and, where relevant, reports from the vessel’s master. If the loss is attributable to the carrier, the insurer may pursue subrogation against the carrier after compensating the cargo owner. Marine insurance reduces commercial uncertainty for traders and supports cross-border investment. Iranian insurers commonly offer marine coverage structures tailored to cargo type, route, and declared value.

The Supervisory Role of the Ports and Maritime Organization

The Ports and Maritime Organization of the Islamic Republic of Iran is the principal governmental body responsible for supervision, regulation, and development of maritime transport. Under the Maritime Law and implementing regulations, the Organization is responsible for licensing, vessel safety inspection, certification of maritime personnel, and oversight of compliance and violations related to maritime operations.

It also receives and addresses reports involving cargo delivery issues, unsafe loading or discharge practices, and maritime incidents. In disputes arising from port rule violations or operational non-compliance, the Organization may provide expert input and, in certain cases, may assist as a technical reference point. It also plays a role in drafting operational guidelines, training seafarers, strengthening maritime security, and aligning domestic practices with international standards developed through the IMO framework. Cooperation with customs, insurers, and judicial bodies further reinforces its central role in maritime governance in Iran.

Arbitration and Dispute Resolution in Maritime Transport in Iran

Arbitration is widely used in maritime disputes due to its efficiency and technical orientation. Under Iran’s International Commercial Arbitration Law of 1997, parties to a maritime carriage contract may agree to submit disputes to arbitration and may designate a local or international arbitral forum. Many bills of lading include arbitration clauses referring disputes to institutions such as ICC, LMAA, or regional arbitration centers, including Tehran-based arbitration structures.

Arbitration offers confidentiality, faster procedures, specialized decision-making, and greater ease of cross-border enforcement. Under Iranian law, arbitral awards are generally enforceable provided procedural requirements are met, and courts typically refuse enforcement only where the award conflicts with public order or mandatory law. In maritime disputes, arbitrators commonly rely on international conventions, port customs, and carriage documents, including the bill of lading, when determining liability and quantum.

Liability for Delay in Delivery of Cargo

Delay in cargo delivery is among the most common maritime disputes and may cause significant direct and indirect losses. Under Article 52, carrier liability for delay is generally established where the delay results from the carrier’s fault or negligence. Where the delay is caused by adverse weather, port closures, or legal restrictions, the carrier may be exempt, provided it can prove the cause with reliable evidence.

In international practice, the Hamburg approach places greater emphasis on delivery within a reasonable time, and delays beyond that period may give rise to liability under the applicable regime and contractual terms. Losses from delay may include lost sales opportunities, spoilage of time-sensitive goods, or penalties owed to downstream buyers. To prove a delay claim, the bill of lading, customs records, commercial correspondence, and port certificates are often decisive, and Iranian courts may consider customary transit time and relevant port authority reports.

Carrier Responsibility in Loading and Discharge Operations

Shipping companies have defined duties in loading and discharge operations, and failure to comply may result in contractual or civil liability. Under Iranian maritime principles, the carrier must load, stow, and discharge cargo in a manner consistent with safety standards and proper practice. If poor loading or improper discharge causes cargo damage or makes discharge unreasonably difficult, liability may arise.

In Iranian ports, loading and discharge operations are commonly supervised by the Ports and Maritime Organization, and official operational reports generated at these stages often become important evidence in disputes. International carriage terms such as FCL, LCL, FOB, and CIF typically allocate responsibilities between parties, and liability analysis may depend on the agreed trade term and contractual clauses. Where the cargo owner or its representative is not present during loading, the bill of lading remains a central evidentiary document for the shipment condition and loading particulars. Compliance with safe loading and discharge practice is therefore a legal, operational, and commercial requirement.

Frequently Asked Questions About Maritime Transport in Iran