Finland Maritime | Transportation and Freight Forwarding Legislation

November 29, 2024 at 12:26 pm

Overview of Transportation volumes in Finland

Finland’s transportation infrastructure is integral to its role in international trade. Over 90% of Finnish exports and 70% of imports rely on maritime transport, while domestic goods are predominantly moved by road. Rail transport plays a vital role in domestic traffic and trade with Russia, while air transportation mainly focuses on passenger services. The legal framework for transportation in Finland is based on international conventions, with distinct laws governing each mode of transport.

Maritime Transportation: Finnish Maritime Code

The Finnish Maritime Code (674/1994) forms the backbone of Finland's maritime law. Developed collaboratively with Nordic countries, this legislation ensures uniformity across Sweden, Norway, Denmark, and Finland. The Maritime Code governs various aspects of sea transport, including:

Carriage of Goods: Liability for goods loss or damage is primarily based on the Hague-Visby Rules, supplemented by elements of the Hamburg Rules.
Chartering of Vessels: While carriage of goods adheres to mandatory provisions, vessel chartering operates under freedom of contract.
Liability and Limitations: Carriers are liable for damages caused by negligence, with limitations on liability unless gross negligence or willful misconduct is proven.
Maritime Liens and Salvage: Rules ensure equitable treatment of claims against vessels.
Special Shipping Terms: The Finnish Standard Shipping Terms (2008) apply to deliveries at Finnish ports and define responsibilities for carriers and consignees.

The Maritime Code also addresses passenger transportation liability based on the Athens Convention framework, although with notable exceptions.

Road Transport Regulations: Road Transport Agreements Act

Road transportation is Finland’s primary mode for domestic goods movement. The Road Transport Agreements Act (345/1979) and the Act on Commercial Road Transport (693/2006) govern road transport. Key aspects include:

Permit Requirements: Commercial road transport generally requires permits, with exemptions for small vehicles and non-commercial purposes.
Liability Framework: Carriers are strictly liable for goods under their care, with force majeure being one of the few defenses.
Successive and Sub-Carrier Liability: All involved carriers in a shipment share liability, with primary carriers bearing ultimate responsibility.
Statute of Limitations: Claims must be filed within one year from delivery.

These laws incorporate principles of the CMR Convention, ensuring consistency with international standards while accommodating local nuances.

Air Transportation: International Conventions

Air transport in Finland is governed by a series of international conventions, forming a robust legal foundation:

Warsaw Convention of 1929: Established liability for air carriers in international flights.
Montreal Convention of 1999: Harmonizes air transport rules and introduces stricter liability limits for carriers.
Domestic Regulations: The Act on Transportation on Aircrafts (1937) and subsequent legislation adapt international standards to Finland’s needs.

Key principles include carrier liability for goods during transit, limitations of liability based on cargo weight, and strict statutes of limitation (usually two years).

Rail Transport: Domestic and International Laws

Railway transport is governed by distinct legal frameworks for domestic and international carriage:

Domestic Rail Transport: The Act on Railway Transports (1119/2000) outlines the rights and responsibilities of carriers and customers.
Finland-Russia Rail Traffic: A bilateral agreement governs railway traffic between the two nations.
International Carriage: The COTIF Convention and its appendices (CIM and CIV) regulate cross-border rail transport.

Liability rules are similar to road transport, with strict carrier responsibility for goods. The liberalization of rail freight in 2007 allowed competition, but state-owned VR retains exclusive rights to rail freight with Russia.

Multimodal Transport: Unified Yet Diverse

Multimodal transportation involves combining two or more transport modes under a single contract. In Finland, no specific legislation governs multimodal transport. Instead, existing statutes for individual modes apply as follows:

Road Transport Act: Governs carriage when goods remain in a vehicle during sea transport.
Montreal Convention: Applies only to the air segment of a multimodal journey.
COTIF Convention: Includes limited provisions for multimodal transport.

Efforts to address regulatory gaps include adopting standard terms such as the UNCTAD/ICC Rules for Multimodal Transport Documents (1991) and the Nordic Association of Freight Forwarders’ General Conditions ("NSAB").

Freight Forwarding: Managing Multimodal Logistics

Freight forwarding in Finland is guided by the NSAB 2000, created by the Nordic Association of Freight Forwarders. These general conditions establish:

Forwarder Liability: Freight forwarders may be liable as carriers if they use their own means of transport or issue transport documents under their name.
Risk Allocation: Liability depends on the transport mode used during loss or damage.
Special Provisions: NSAB 2000 aligns with the Road Transport Act, offering clarity on packing, defective goods, and customer obligations.

Sustainability in Transportation Laws

Finland’s transportation laws also reflect the nation’s commitment to sustainability. By aligning with international conventions and promoting rail over road transport, Finland encourages environmentally friendly practices.

Key Takeaways

Comprehensive Legislation: Finland’s transportation laws are harmonized with international conventions to ensure clarity and consistency.
Mode-Specific Rules: Each transportation mode operates under distinct regulations, balancing liability and operational freedom.
Freight Forwarding Flexibility: Nordic conditions provide robust frameworks for multimodal and cross-border logistics.
Sustainability Focus: Legal frameworks align with Finland’s commitment to reducing environmental impact.

Finland’s transportation laws offer a cohesive yet adaptable framework, supporting its role as a global trade hub.

Call to Action: Expert Legal Assistance for Transportation and Freight Forwarding

Navigating the complexities of Finland’s transportation and freight forwarding laws can be challenging. Whether you're dealing with maritime, road, air, or multimodal logistics, having the right legal partner ensures compliance, minimizes risks, and streamlines operations.

Contact Us Today!

📞 Call us: +358 (0)40 672 4285
📧 Email us: office(at)lkoslaw.fi
🌐 Visit us: LKOS Law Office

Our expert legal team specializes in transportation law, freight forwarding agreements, and liability management. We provide tailored advice to help you operate confidently in Finland's dynamic trade environment.

👉 Book a Consultation to discuss your needs and get personalized guidance.

Let us handle the legal complexities so you can focus on growing your business. Your success is our priority!

Disclaimer: This article is for informational purposes only.