In 1972 the Office of Facilitation in the American Department of Transportation commenced a study on the question of cargo liability for loss and damage in both domestic and international transportation. A report of this study has now been published which will be of considerable interest to those trading with the United States. Although compared with other nations the percentage of foreign trade is relatively small—less than 10 per cent of the gross national product, as measured in monetary terms—it is the world’s largest, amounting to approximately $200 billion in 1974. The total cost of theft-related cargo losses from U.S. transportation is estimated to be in excess of one billion dollars annually. Cargo loss and damage not related to theft is further estimated to exceed $2 billion per annum.

The implications of this report are therefore of considerable importance given the amounts involved. The report deals with a wide range of problems relating to cargo liability, and, inter alia, makes the following recommendations. Firstly, it recommends that the present $500 per package limit on ocean carrier loss and damage should be revised in the current UNCITRAL negotiations. Secondly, that uniform international time limits should be established for the filing of claims and suits. Thirdly, that a 120-day time limit should be established for the settlement of loss and damage claims which will apply uniformly to all carriage. Fourthly, the strengthening of industrial and governmental cargo security programmes and increased efforts to reduce non-security cargo loss and damage.

Finally, the report recommends that the present round of international negotiations should be continued in an effort to formulate a private international law convention on combined transport.

The thoroughness with which the report has been prepared is commendable and if the report’s recommendation that the negotiations be reopened in the latter half of 1976 to be completed in 1977, based on the 1974/5 cargo loss and damage data, is implemented, the results will undoubtedly offer a most interesting and useful comparative study of the problems of cargo liability.