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Chapter 2: Shipping



Outline

I. Introduction to shipping

1. Introduction

2. InfrastructuresII. Methods of vessel charter

1. Liner charter

2. Voyage charter



I. Introduction to shipping

1. Introduction• dvantages:

! Large "uantities of freight can #e safely stored and$ove in one go

! Shipping is a via#le and cost% effective &ay for$oving a large a$ount of goods over long distances'cheap freight(

! Shipping is an i$portant factor &ithin the internationaltransport chain

• )isadvantages ! Slo& speed ! *ro#a#ility of ris+ occurring



2. Infrastructure

2.1. Merchant vessels

2.1.1. )efinition

• $erchant vessel is a ship that transportscargo and passengers for profita#lepurpose.

',he Logistics and $ariti$e econo$icsInstitute(



II. Infrastructure

2.1. Merchant vessels

2.1.2. Specifications• Ship’s name• Port of Registry: vessel-s home port port of registry or hailing

port is its port of origin as sho&n on its registration docu$ents and

lettered on the stern of the ship/s hull• Flag:

! Conventional flag ! 0lag of convenience

• Ship owner

• Dimensions: ! Length over all 'LO(: the greatest length of the ship fro$ fore to aft. ! ea$: the greatest #readth of the ship fro$ port to star#oard



2.1.2. Specifications

• Classification• )raught)raft: the distance fro$ the #otto$ of the +eel to

the &aterline ! Light )raught

! Loaded )raught• )isplace$ent: the &eight of the ship and all that it

contains% cargo fuel &ater stores cre& and effects.: ! Light displace$ent 'L)(: the $ini$u$ &eight of the ship

includes &eight of #ody of the ship $achines or e"uip$ents#oiler &ater in the #oiler cre&s and their effects

! 3eavy displace$ent '3)(: includes L) &eight of cargo and&eight of stores that use for itinerary



)raft



Load lines




• Deadweight Tons ')4,( % ,he difference #et&eenheavy displace$ent and light displace$ent% $easureof the ship/s total carrying capacity.

• argo Deadweight Tons % ,he &eight re$aining after

deducting fuel &ater stores dunnage and such otherite$s necessary for use on a voyage fro$ thedead&eight of the vessel.

• The gross register tonne '56,(% ,he total cu#ic$easure$ents of the ship 'including engine roo$#un+er tan+s for fuel and &ater sea$en-sacco$$odation(

• The net register tonne '76,(: is the availa#le cu#iccapacity for cargo




• Cargo space ! 5rain space: is the space &hich the ship has

availa#le for cargo in #ul+

! ale space: is the cu#ic contents of the shipthat is availa#le for the transport of goodspac+ed in #ales #o8es crates9



2. Infrastructure

2.2. Sea *orts2.2.1. )efinition

port is a facility for

receiving ships andortransferring sea$en orcargo. It is usually foundat the edge of an ocean.

2.2.2. 6oles%,o serve ships%,o serve cargo



2.2. Sea *orts

2.2.. 6e"uire$ents foran efficient port:% 4ell% e"uipped &ith the

$ost $odern handlingfacilities;% &ell% organi<edcontainer yard for #oth

storage and handling ofcontainers;



2.2. Sea *orts

2.2.. 6e"uire$ents for an efficient port:• I$$ediate availa#ility of fresh &ater and #un+er supplies for vessels

alongside 'at #erth(;• high%end co$puteri<ed syste$ to control the s$ooth delivery of

cargo to and fro$ the port to avoid any congestion and delays;

• good highly trained and "ualified &or+force &or+ing 2=>• good railroad#arge net&or+ to facilitate delivery;• n efficient Custo$s clearance syste$;• 0oresight and for&ard planning to ensure that there are al&ays

enough #erths availa#le to handle larger and faster container ships;

• co$puter syste$ that allo&s the auto$ation of routine operationsin the ports that can #e handle #y re$ote control device; and• Ma+ing the port as custo$er% oriented as possi#le and having a

user% friendly tariff syste$.



VI. Methods of vessel charter

• Liner charter

• Voyage charter



. Liner Charter

1. )efinition of Liner Liner shippingco$pany

% liner service is defined as one that

operates to a regular sailing scheduletransporting goods along a definite routeto fi8ed ports of call

% liner is a vessel that is engaged in this+ind of transportation



. Liner Charter

2. Liner characteristics ! Vessels operate a$ong ports to a regular

sailing schedules

! ll relationships are regulated #y #ill of lading ! ll ter$s and conditions of carrier $ust #e

accepted #y cargo o&ner &ithout negotiation ! Liner freight is fi8ed and #e infor$ed in liner

#ound freight tariff



. Liner Charter

. 3o& a liner service is run? ! Liner *lanning )ivision: planning of ne& trade routes and

fleet e8pansion ! Ship Manage$ent )ivision: overall running of vessels

! Liner )ivision: planning and logistics responsi#ilities forservices vessel schedules container e"uip$ent planningoverseas offices and agencies docu$entation and dataco$$unications and handling of clai$s and insurance

! 0inance )ivision: co$pany-s financial results auditing andperfor$ing treasury functions

! I,@)I )ivision: co$puter syste$s and data interchange&ith suppliers and contractors

! 3u$an resource )ivision: $anpo&er planning staff#enefits and all industrial relations



. Liner Charter

=. 4hat is a liner agent?

person or co$pany that acts on the shippingline-s #ehalf and carries out their #usiness &hilethe vessel re$ains in the agent-s Aurisdiction



asic organi<ation structure for a lineragent

Senior Manage$ent

Mar+etingsales )ocu$entation Operations0inance

d$inistrationInfor$ation,echnology



. Liner Charter

B. ,he order of liner charter ! Step 1: Shipper let a custo$s #ro+er or for&arder find a

suita#le ship ! Step 2: ,he custo$s #ro+er or for&arder chooses a carrier

! Step : ,he custo$s #ro+er or for&arder and the carriernegotiate so$e $ain ter$s and conditions: cargo na$e"uantity of goods ports of loading ports of dischargeissuing docu$ents.

! Step =: ,he custo$s #ro+er or for&arder infor$ to cargoo&ner of the negotiated results

! Step B: Cargo is transported to the loading port #y theshipper

! Step : fter receiving goods the carrier responsi#le forissuing #ill of lading to the shipper.



. Ocean ills of Lading

!.1. Definition and f"nctions• The #$% is the main doc"ment "sed in international maritime

transport. &t is iss"ed 'y a carrier or representative of thecarrier( after cargo is shipped on 'oard or received forshipment.

• )otes*

! &ss"er* give signat"re( f"ll name( legal position• Signed 'y Mr+ as the carrier • Signed 'y Mr+ as the Master • Signed 'y ,ietfract as agent for the carrier • Signed 'y Mr+ on 'ehalf of Mr+ as the Master

! &ss"ing time*

• Shipped on #oard• Received for shipment

! Receiver* shipper -eporter or representative/

• F"nctions ! 0vidence of the contract of affreightment ! onfirmation of shipment

! Doc"ment of title -title of ownership/




.2. Main types of L

.2.1. ase on the negotia#le a#ility of L

• Straight L: L that clearly states na$e and

address of the consignee ! States that the goods are consigned to a specified person

! Is non% negotia#le docu$ent

! Is used &here the goods have #een paid for or do not

re"uire pay$ent 'donation or gifts( ! ,he shipping co$pany &ill deliver the ship$ent to its

consignee on presentation of an identification.




• Order L: #ill of lading that $ade out to theorder of a person 'shipper consignee or #an+(for delivery of the goods and that can #e

transferred #y endorse$ent to third parties.D( to order of shipper

D( to order of consignee

D( to order of #an+

⇒,he order L can #e negotiated #y endorse$entprocedure.




• @ndorse$ent is a procedure of transferring of cargo o&nership fro$original cargo o&ner to another #eneficiary.

• On the reverse side of L endorser has to give his signaturesta$p and hand it to endorsee &hich is the ne8t #eneficiary of theship$ent.

• In ter$s of legal side endorse$ent is an action to confir$ that thecargo o&ner has given up the proprietorship of the ship$ents thatspecified in the L to another #eneficiary.

• ,he endorser has to: ! Ma+e an endorse$ent #y his language to assure that he has definitely

agreed to transfer the ship$ent to another person.

! Ma+e an endorse$ent in original L• )ifferent types of endorse$ent: ! Straight ! ,o order ! lan+




• To #earer #$%: ,his #ill states thatdelivery shall #e $ade to &hosoever holdsthe #ill. Such #ill $ay #e created e8plicitly

or it is an order #ill that fails to no$inatethe consignee &hether in its original for$or through an endorse$ent in #lan+.

• ,his L can #e si$ply transferred #yhanding the docu$ent.




6.2.2. Base on the issuing time• Shipped on #oard L: L that is released after cargo is pass

vessel-s rail. ,his docu$ent is an i$portant evidence for co$pletingdelivery lia#ility of the sellers. ! )ote* F#( &F( FR

• 6eceived for ship$ent L: is L that is issued after the carrierreceive the ship$ent pledge to ship on #oard and transport theship$ent #y the na$ed vessel.D( the goods arrive at the port of departure #efore the vesselD(the goods arrive at the loading port &hen the vessel has notco$pleted all the necessary conditions to #erth the port 'prati"ue

custo$s9(.D( )eliver the goods through a $iddle $an: a for&arder a$ulti$odal transport operator or a consolidator.



2. Ocean ills of Lading

6.2.3. Base on comments/ remarks B/L

• lean$ Perfect #$%: L issued #y a carrier declaringthat the goods have #een received in an appropriatecondition &ithout the presence of defects nor$ally

a#out the appearance and the "uantity of goods.• nclean$ la"sed #$%: #ill of lading that sho&s a

shortfall or da$age in the delivered goods.⇒Most #an+s refuse to accept any unclean L

⇒ 6epairing &ays to have clean L: ! 6eplace or co$ple$ent so$e $issing or da$aged goods ! 6epair da$aged goods if it is possi#le ! 0or$ a letter of inde$nity in order to #e paid perfect goods part.




.2.=. Other types• Surrender L• Sea&ay ill

! S4s are non% negotia#le they cannot #e issued EtoorderF or Eto order ofF ! ,he shipper-s signature is re"uired on the S4 for

endorse$ent of the transport agree$ent so that hecan not later refute the docu$ent

! ,he la&ful consignee has to #e clearly identified sothat the carrier +no&s &hen a consignee #eco$e ala&ful o&ner of the goods




!.3. ontent of #$%

!.3.1. First side of #$%• Shipper • onsignee• )otify party

• ,essel• Place of receipt• Place of delivery• Port of %oading• Port of Discharge• 4oods

• Freight and harges• )"m'er of original• Place of iss"e• Date of iss"e• Signat"re




!.3. ontent of #$%

!.3.1. Reverse side of #$%• )efinitions: carrier shipper consignee• ,he e8tent of carrier-s responsi#ility

• @8cepted *erils• 6egulations on loading discharging preserving goods• 6egulations on 0reight and Charges• 4ar Stri+e riots civil co$$odition clauses

• Late delivery clauses• 5eneral average clause• oth to #la$e collision clause• Supre$e Clause



>.Legal Syste$s in shipping

5.1 &nternational onventions

• International Convention for the unification of certainrules relating to ills of lading russels Convention1G2= 3ague 6ules

• *rotocol to a$end International Convention for theunification of certain rules relating to ills of lading Vis#y*rotocol 1GH 3ague% Vis#y 6ules

• S)6 *rotocol 1G>G

• nited 7ation Convention on the carriage of goods #ysea 3a$#urg Convention 1G>H 3a$#urg 6ules5.2.)ational law

• Vietna$ Mariti$e Code 2JJB



H. @8tend of carrier-s lia#ility to thegoods% International legal syste$s

,he carrier is dee$ed to #e in charge of the goods: ( fro$ the ti$e he has ta+en the goods fro$:

i( the shipper or a person acting on his #ehalf; or ii( an authority or other third party to &ho$ pursuant to la& orregulations applica#le at the port of loading the goods $ust #e

handed over for ship$ent;( until the ti$e he has delivered the goods:i( #y handing over the goods to consignee; or ii( in cases &here the consignee does not receive the goods fro$the carrier #y placing the$ at the disposal of the consignee inaccordance &ith the contract or &ith the la& or &ith usage of the

particular trade applica#le at the port of discharge or iii( #y handing over the goods to an authority or other third party to&ho$ pursuant to la& or regulations applica#le at the port ofdischarge the goods $ust #e handed over.




6.2. #asis of lia'ility* carrier’s lia'ility on loss res"lting from lossof or damage to the goods

6.2.1. 0tend of lia'ility• 3ague and 3ague Vis#y 6ules: loss and da$age of goods• 3a$#urg 6ules: loss da$age of goods and delay in delivery

% E)elay in delivery occurs &hen the goods have not #een deliveredat the port of discharge provided for in the contract of carriage #ysea &ithin the ti$e e8pressly agreed upon or in the a#sence ofsuch agree$ent &ithin the ti$e &hich it &ould #e reasona#le tore"uire of a diligent carrier having regard to the circu$stances ofthe caseF

% ,he goods are considered loss if they have not #een delivered&ithin J consecutive days follo&ing the e8piry of the ti$e fordelivery and &ithout &aiting for consecutive evidence for the loss.




6.2. #asis of lia'ility

6.2.2. Main lia'ilities

9ag"e and 9ag"e ,is'y R"les

• Provide a seaworthy ship: the carrier is e8pected toe8ercise due diligence #efore a voyage to ensure that:D( the ship is dura#le and solid is a#le to stand the &indand &aves in nor$al conditions.D( the ship is properly $anned e"uipped and supplied for

the trip: fresh &ater food fuel9D( all parts of the ship in &hich goods are to #e carriedincluding the holds refrigerating and cool cha$#ers areready to receive transport and preserve the goods.





6.2.2. Main lia'ilities

9ag"e and 9ag"e ,is'y R"les*• Trading lia'ility: Ethe carrier shall properly and carefully load handle sto&

carry +eep care for and discharge the goods carriedF.• &ss"ing #$%: after receiving the goods into his charge the carrier or the

$aster or agent of the carrier shall on de$and of the shipper issue to theshipper a L.

9am'"rg R"les* Pres"med fa"lt or neglect principle*7,he carrier is lia#le if the occurrence that caused the

loss da$age or delay too+ place &hile the goods &erein his charge and he $ay escape lia#ility only if heproves that he his servants or agent too+ all $easuresthat could reasona#ly re"uired to avoid the occurrenceand its conse"uences.F




H.2. asis of lia#ilityH.2.. @8cepted perils 3ague and 3ague Vis#y 6ulesa( ct neglect or default of the $aster $ariner pilot or the servants

of the carrier in the navigation or in the $anage$ent of the ship.

% 7avigation% Manage$ent of the ship#( 0ire unless caused #y the actual fault or privity of the carrier c( *erils dangers and accidents of the sea or other naviga#le &atersd( ct of 5od

• ct of &ar • ct pu#lic ene$ies• rrest or restraint of princes rulers or people or sei<ure under

legal process• Nuarantine restrictions• ct or o$ission of the shipper or o&ner of the goods his agent or

representative





6.2.3. 0cepted perils

• 3ague and 3ague Vis#y 6ules: A( Stri+es or loc+outs or stoppage or restraint of la#our fro$

&hatever cause &hether partial or general+( 6iots and civil co$$otionsl( Saving or atte$pting to save life or property at sea$( 4astage in #ul+ of &eight or any other loss or da$age

arising fro$ inherent defect "uality or vice of the goodsn( Insufficiency of pac+ingo( Insufficiency or inade"uacy of $ar+s





6.2.3. 0cepted perils

• 9ag"e and 9ag"e ,is'y R"les*

p( Latent defects not discovera#le #y due diligence"( ny other cause arising &ithout the actual fault or privity

of the carrier or &ithout the fault or neglect of the agentsor servants of the carrier #ut the #urden of proof shall #eon the person clai$ing the #enefit of this e8ception to

sho& that neither the actual fault or privity of the carriernor the fault or neglect of the agents or servants of thecarrier contri#uted to the loss or da$age

9am'"rg R"les: *resu$ed fault or neglect principle




6.3. %imitation of lia'ility: the $a8i$u$ a$ount of $oneythat the carrier should co$pensate for unit of da$agedor $issing goods in case the value of the goods is notenu$erated in L or other docu$ents evidencing the

contract of carriage.• 3ague 6ules: 1JJ 5* per unit or pac+age of $issing orda$aged goods

• 3ague% Vis#y 6ules: 1J JJJ francs per pac+age or unitor J franc per +ilo of gross &eight of the goods lost orda$aged &hichever is the higher.

• franc $eans a unit consisting of B.B $iligra$$es ofgold of $illesi$al fineness GJJ.




6.3. %imitation of lia'ility

• 3ague% Vis#y 6ules: for those goods thatare consolidated in container pallet or

other transport articles: ! If the L does not enu$erate &hat is

contained in the container the container isone shipping unit

! If the L enu$erates the contents of thecontainer individually each of the pac+ages isa unit





• S)6 *rotocol: .> units of account perpac+age or unit or 2 units of account per+ilo of gross &eight of the goods lost orda$aged &hichever is the higher.

• ,he unit of account is the S)6 as defined#y the IM0




6.3. %imitation of lia'ility• 3a$#urg 6ules: HB units of account per pac+age or

unit or 2.B units of account per +ilo of gross &eight ofthe goods lost or da$aged &hichever is the higher.

• 0or those goods that are consolidated in container orother transport articles: ! If the L does not enu$erate &hat is contained in the

container the container is one shipping unit ! If the L enu$erates the contents of the container individually

each of the pac+ages is a unit

! In case &here the article of transport itself has #een lost orda$aged the article of transport if not o&ned or other&isesupplied #y the carrier is considered one separating shippingunit





3a$#urg 6ules:• ,he unit of account is the S)6 as defined #y the IM0• ,hose states &hich are not $e$#ers of the IM0 and &hose la&

does not per$it the application of the S)6 $ay declare that the

li$its of lia#ility provided for in this Convention to #e applied in theirterritories shall #e fi8ed #y 12 BJJ $onetary units per pac+age orother shipping unit or >.B $onetary units per +ilogra$$e of gross&eight of the goods.

• ,he $onetary unit corresponds to B.B $illigra$$es of gold of$illesi$al fineness nine hundred.

• ,he lia#ility of the carrier for delay in delivery the goods is li$ited toan a$ount e"uivalent to 2.B ti$es the freight paya#le for the goodsdelayed #ut not e8ceeding the total freight paya#le under thecontract of carriage of goods #y sea.




Su$$ary:• ,here are 2 international legal syste$s that are applied

in shipping field '3ague and 3a$#urg 6ules(• ,he 3a$#urg 6ules effect a $ore #alance and e"uita#le

allocation of ris+s and responsi#ilities #et&een carriersand cargo o&ners

• *rogressive points of 3a$#urg 6ules: ! Carrier-s lia#ility is #ased on the principle of presu$ed fault or

neglect ! 6egulates of )ec+ cargo live ani$als cargo consolidated in

containers pallets and other transport articles ! 6egulates lia#ilities of contracting carriers and actual carriers



1J. Clai$s and actions

1J.1. 7otice of loss da$age or delay% 7otice of loss da$age or delay is the consignee-s notice in &riting

specifying the general nature of such loss or da$age &hich sent tothe carrier in a certain period of ti$e.

% If the loss or da$age is apparent: CO6 'Cargo Outturn 6eport(

% 3ague and 3ague Vis#y rules: the consignee $ust send this notice tothe carrier #efore or at the ti$e of delivery the goods% 3a$#urg rules: the consignee $ust send this notice to the carrier not

later than the &or+ing day after the day &hen the goods &ere handedover to the consignee.

% If the loss or da$age is not apparent: LO6 'Letter of 6eservation(% 3ague rules: days after the day &hen the goods &ere handed over to

the consignee% 3a$#urg rules: 1B consecutive days after the day &hen the goods &ere

handed over to the consignee% )elay in delivery 'for 3a$#urg rules only(: the notice has #een

given in &riting to the carrier &ithin J consecutive days after theday &hen the goods &ere handed over to the consignee



1J. Clai$s and actions1:.2. laim and actions

1:.2.1. laimer % Shipper % onsignee% The holder % The ins"rer

1:.2.2. laiming doc"ments

% P"rposes*% Proving the 'enefits of the claimer to the shipment% Proving of the happened loss$damage and the meas"re of them% Demonstrating s"ch loss$damage 'elongs to the carrier

% Papers( Doc"ments*% #$%% ommercial &nvoice% Pac;ing list

% R% RR% ertificate of short landed cargo% %R% S"rvey report$certificate% ther papers$ doc"ments



. Voyage Charter

1. Definition and features of Tramp vessel

1.1. )efinition: ,ra$p vessel carries the goods a$ong 2 or $anyoceans ports depend on the de$and of the cargo o&ner. ,hecarriage is #ased on a transport contract.

1.2. 0eatures:

% ,ra$p vessel sail only &hen there is a sufficient "uantity of cargoon #oard; they do not operate on a fi8ed sailing schedule.% ,hese vessels generally carry cargo in #ul+ such as coal grain

ti$#er sugar ore fertili<er ce$ent clin+er copra #au8ite andphosphates

% ,ra$p vessel-s speed is relatively slo&er than liner-s one

% Carriage freight loading and discharging e8pense conditions areclearly prescri#ed in the contract of carriage



. Voyage Charter

2. Voyage Charter *arty2.1. )efinition

,he charter party is the &ritten agree$ent #et&een the ship o&nerand the charterer and is in fact the enact$ent 'or charter( of theirnegotiations that contains the agreed ter$s and conditions.

2.2. Standard for$s• 6eco$$ended charter parties offer nu$erous advantages:% they are used co$$only;% they are suited for several traffics and are every&here availa#le;% their &ordings is nearly &atertight and they are generally accepted#y the courts;% they are &ithout any dou#t fair to #oth parties.

% nifor$ standard for$s: 5@7CO7 7VO SC7CO79% Specific standard for$s: 7O656I7 C@M@7CO C6S56

6SS4OO) @PO7VO MOILVO S3@LLVO9

2 C t t f h t



2.. Content of voyage charterparty

2..1. Introduction• the na$e and the address of the contracting

parties

• the na$e and a short description of the ship• the position of the ship• the date the ship e8pected to load• the loading and charging ports or places• the cargo• the freight

2 C t t f h t




2..2. Vessel clause• na$e of the ship: EShip na$ed 3ope andor

su#stitute sister shipF• age of the vessel• flag• type of ship• speed of the ship

• classification society and the class• length and #readth• draft

2 C t t f h t




2... @8pected ready to load,he date on &hich the ship $ust #e ready to startloading $ust #e indicated in the contract.

% On 7ov 2B 2JJG the na$ed ship $ust #e ready to start

loading at the loading port% On a#out 7ov 2B 2JJG the na$ed ship $ust #e readyto start loading at the loading portK ny&ay the ship o&ner 'or the operator( $ust +eepthe charterer 'or his #ro+er( infor$ed 'via tel fa8 tele8

e$ail( of the arrival the ship in the first 'or only( port ofloading. '7otice of arrival% 7O(% Canceling date: the latest date on &hich the vessel $ust

#e ready to load at the port.

2 C t t f h t




2..=. Cargo% 7a$e of cargo:

% Clearly states the na$e of cargo% ndor: 1JJJ M, rice andor $ai<e

% ndor any la&ful goods% *ac+ing: types of pac+ing $ar+s and nu$#ers% Nuantity:

% P $etric tons

! #out P $etric tons:• BQ $ore or less in O&ners- option '$oloo(• BQ $ore or less in charterers- option '$olco(• BQ $ore or less in Master-s option '$ol$o(

2 C t t f h t




2..B. *ort of loading port of discharge• fi8ed #erth e.g.: #erth 2 at 3aiphong port• fi8ed port: one safe port La 3avre• fi8ed area : one safe port one safe #erth ustralia• one goodsafe port 7orthern range

• port or an area to #e indicated later: S gulf for order • Several ports: #erth 1 at 0ort the 0rance and one safe #erth at port

of Spain⇒ ny&ay the loading and discharging ports in the charter party $ust

#e safe ones in ter$s of #oth of nautical and political features.⇒ ,here is no nautical and political o#stacles to reach the port#erth &ith a

loaded shipEat all ti$es of the tide al&ays afloatFE7ot al&ays afloat #ut safely aground '7S(F

⇒ 7ote: E9 or so near thereto as she $ay safely get and lie al&aysafloat9F

2 C t t f h t




• 2... 0reight and charge• 0reight in the ordinary $ercantile sense is the re&ard paya#le to the

carrier for the carriage and arrival of the goods in a $erchanta#lecondition ready to #e delivered to the $erchantF.

• 0reight rate: the freight per unit of cargo

• 0reight unit: &eight 'heavy goods( volu$e $easure$ent 'lightgoods(• Nuantity:

! On ta+en "uantity ! )elivery "uantity

• ,i$e to pay:

% In advance: 0reight *repaid 0reight paya#le at Loading port% 0reight to Collect:

D( 0reight paya#le on co$$ence$ent of dischargeD( 0reight paya#le concurrent &ith dischargeD( 0reight paya#le on co$pletion of discharge(D( freight paya#le on actual and proper co$pletion of discharge

2 Content of o age charter




2.3.5. %oading$discharging epense• %iner term$ 4ross term$ 'erth terms• Free &n and "t -F&/* eempt the carrier from the loading and

discharging epenses( the charterer will 'ear these costs< F&ST• F&* eempt the carrier from the loading cost( '"t he sho"ld 'ear the

discharging cost. The charterer’s lia'ility is in contrast to the carrier’s

one.• F

=> Those a'ove terms and conditions a'o"t %oading$dischargingepense sho"ld accompanied 'y the freight rate in the charter party.

⇒ The most important things is d"ring negotiation( the charterer sho"ldchoose the most s"ita'le %oading$discharging epense condition sothat*

?/ he can avoid to pay do"'le %oading$discharging epenses forthe carrier and the shipper

?/ he can save foreign echange

?/ he may create favora'le conditions for %oading$dischargingthe cargo

2 Content of voyage charter




2..H. Laydays Layti$e: is the ti$e &hich according to thecharter party is allo&ed for the loading and dischargingof the cargo 'the allo&ed ti$e(

Manners:

• according to a fi8ed nu$#er of dayshours &hich arenecessary for the loading andor discharging operations• &ithout a fi8ed nu$#er of dayshours '&ith custo$ary

dispatch custo$ary "uic+ dispatch as fast as the vesselcan receive etc.(

• according to a "uantity to #e loaded or discharged





nit e8pressions• 6unning daysconsecutive daysdays• 4or+ing days•

4or+ing days of 2= consecutive hours• 4eather &or+ing days• Sundays and holidays

% 1B 44) S.3. @P . 'Cargo to #e loaded in 1B&eather &or+ing days of 2= consecutive hours

Sundays and holidays e8cepted unless used(% 1B 44) S.3. @P @. 'Cargo to #e loaded in 1B

&eather &or+ing days of 2= consecutive hoursSundays and holidays e8cepted even if used(





• ,he layti$e starts fro$ the $o$ent that the 7O6 istendered and accepted #y the charterer unless thecharter party stipulates differently.

• efore accepting the 7O6 the cargo o&ner should

chec+: ! ,he ship $ust have arrived at her loadingdischarging #erth asindicated in the charter party

! ,he ship $ust in all respects #e ready to load or discharge ! the ship is in order &ith all for$alities such as custo$ for$alities

"uarantine for$alities etc.• 7ote: E4 4 4 4F% 4I*O7: 4hether in *ort or not% 4IO7: 4hether in erth or not% 4I0O7: 4hether in 0ree *rati"ue or not

% 4ICO7: 4hether in Custo$ Cleared or not





5@7CO7 standard for$:• ,he layti$e starts fro$ 1p.$ if the 7O6 is

tendered in office hour #efore 12a.$

• ,he layti$e starts fro$ a.$ of the ne8t day ifthe 7O6 is tendered in office hour after 12a.$

• @8cluded ti$e starts fro$ 1p.$ of Saturday or ofthe &or+ing day #efore holiday to >a.$ of thene8t Monday or the day after the holiday.





2..G.)e$urrage )ispatch )e$urrage• If the ship needs $ore ti$e to load or discharge

than foreseen #y the laydays then the ship &ill#e in days of de$urrage. ,he Charterer &illhave to pay for this a certain co$pensations tothe ship o&ner called de$urrage.

• EOnce on de$urrage al&ays on de$urrageF

• )e$urrage rate K 2 P dispatch rate• )e$urrage $oney K de$urrage ti$e P

de$urrage rate





)ispatch• )ispatch $oney is a co$pensation &hich the

ship o&ner $ust pay to the charterer &hen the

ship is loaded andor discharged $ore rapidlythan provided #y the laydays that &ere foreseen.

• E)ispatch $oney for all ti$e savedF

E)ispatch $oney for all &or+ing ti$e savedF

• )ispatch K 12 P de$urrage rate

• )ispatch $oney K )ispatch ti$e P )ispatch rate





Calculation of de$urrage dispatch $oney• Mutually co$ple$ent• Individually co$ple$ent State$ent of facts• ,i$e sheet:

! )ate and hour of arrival in the roads or in the port

! )ate and hour of arrival in the loading or discharging place ! )ate and hour on &hich the ship is ready in all respects to start loading or

discharging as stated in the 7O6 ! )ate and hour on &hich the 7O6 &as tendered ! )ate and hour on &hich the 7O6 is accepted #y charterer receiver or his agent ! )ate and hour on &hich according to the charter the laydays started

! Loading and discharging speed according to charter party ! State$ent of days &hich could not #e &or+ed ! State$ent of the ti$e allo&ed for loading and discharging ! )ate and hour on &hich the loadingdischarging &as ter$inated





2..1J. Carriership o&ner-s responsi#ility and e8ceptions• 6esponsi#ilities:

% ,o $a+e the vessel in all respects sea&orthy #y due diligence% Secure that the vessel is properly $anned e"uipped and supplied% Issue L after receiving the goods

% 5uide for loading and discharging the ship$ent% Lia#le for loss da$age or delay in delivery of the goods caused #ynautical fault% Control the vessel &ith proper speed avoid deviation unless in caseof force $aAeure.

• @8ceptions:

% ct of 5od% *erils of the sea% 0orce $aAeure% 3ostile activities





• 2..11.r#itration and la&• r#itration is a +ind of private court assigned #y #oth parties in the

contract. ,hey o#ey all of its rules spontaneously.• ll disputes arisen out of the charter party $ay #e solved and

addressed only if there is an ar#itration negotiation in advance or anar#itration clause in the charter party.

• 6e"uire$ents for n ar#itration negotiationclause:D( 0ull and correct na$e of ar#itration organi<ationsD( *rocedural la&rule to deal &ith the $atter D( *lace and Language for Audging nu$#er of ar#itrators

• Sa$ple of ar#itration clause:

Ell disputes arising out of or in relation to this contract shall #e finallysettled #y the Vietna$ International r#itration Center at the Vietna$Cha$#er of Co$$erce and Industry in accordance &ith its

r#itration 6ulesF





2..12. oth to la$e Collision

EIf the 'Carrying( ship co$es into collision &ith another ship as a result of thenegligence of the other ship and any act neglect or default in the navigationor the $anage$ent of the carrying ship the Merchant underta+es to pay thecarrier or &here the Carrier is not the o&ner and in possession of the

carrying ship to pay to the Carrier as trustee for the o&ner andor de$isecharterer of the carrying ship a su$ sufficient to inde$nify the Carrierandor the o&ners andor de$ise charterer of the carrying ship against allloss or lia#ility to the other or non carrying ship or her o&ners insofar assuch loss or lia#ility represents loss of or da$age to or any clai$&hatsoever of the Merchant paid or paya#le #y the other or non carryingship or her o&ners to the Merchant and set off recouped or recovered #y the

other or non carrying ship or her o&ners as part of their clai$ against thecarrying ship or her o&ner or de$ise charterer or the Carrier. ,he foregoingprovisions shall also apply &here the o&ners operators or those in charge ofany ship or ships or o#Aects other than or in addition to the colliding ship oro#Aects are at fault in respect to a collision; contact stranding or otheraccident.F





• E7Ru tu chT hng U$ va tu +hWng hng do hXu"uY sZ su[t c\a tu v do hnh vi sZ su[t ho]c lî l_$c\a thuy`n trTng th\y th\ hoa tibu hay ngi phc vtrong vic chy tu v "uYn tr tu chT hng th ch\hng trbn tu s #ji thng cho ngi chuybn chT

',u ( $ki $[t $t ho]c trch nhi$ Umi vi tu +hWnghng URn $c $[t $t ho]c trch nhi$ ny tZngng vi $[t $t ho]c h hng $ ch\ hng Uqc tu+hWng hng U ho]c s #ji thng v n U Uqc UmichiRu giY$ tr ho]c trch gi nh l$wt ph_n +hiRu ni

c\a tu Umi vi tu . Nuy Unh va Uqc U` cXp cxngs p dng ti nZi no U $ ch\ tu ngi Uiù hnhho]c ngi "uYn l tu hay phZng tin no +hc $ph$ lî l_$ trong $wt v tu U$ vaF.





2..12. 5eneral verage and 7e& zason Clause• E5eneral verage shall #e adAusted in London unless other&ise agreed in

o8 22 according to or+% nt&erp 6ules 1GG= and any su#se"uent$odification thereof. *roprietors of cargo to pay the cargo-s share in thegeneral e8pense even if sa$e have #een necessitated through neglect ordefault of the O&ners- servant.

•If 5eneral verage is to #e adAusted in accordance &ith the la& and practiceof the S of $erica the follo&ing clause shall apply: E In the event ofaccident danger da$age or disaster #efore or after the co$$ence$ent ofthe voyage resulting fro$ any cause &hatsoever &hether due tonegligence or not for &hich or for the conse"uence of &hich the Carrier isnot responsi#le #y statute contract or other&ise the goods ShippersConsignees or o&ners of the goods shall contri#ute &ith the Carrier ingeneral average to the pay$ent of any sacrifices losses or e8penses of ageneral average nature that $ay #e $ade or incurred and shall pay salvageand special charges incurred in respect of the goods. If a salving ship iso&ned or operated #y the Carrier salvage shall #e paid for as fully as if thesaid salving ship or ships #elonged to strangers. Such deposit as the Carrieror his agents $ay dee$ sufficient to cover the esti$ated contri#ution of thegoods and any salvage and special charges thereon shall if re"uired #e$ade #y the goods Shippers Consignees or o&ners of the goods to the

Carrier #efore deliveryF.F





• ECh\ hng ho]c ngi gTi ngi nhXn hng c #{nphXn Ung gp t{n th[t chung #[t +| hi|$ hka tai nn8Yy ra trc ho]c sau hnh trnh c\a con tu #[t +|nguybn nhn 8Yy ra t{n th[t chung nh thR no #ao gj$cY nguybn nhn #[t c}n c\a tu $ tu Uqc hTng

$i~n trch cn c theo luXt php hqp Ujng ho]c cchno +hc. 3k s trY ph cu hw v nhng chi ph U]c #itpht sinh Umi vi hng ha. *h cu hw s Uqc trY ton#w U_y U\ cho d€ tu cu hw thuwc sT hu ch\ tu haysT hu c\a ngi ngoi. Sm ti`n + "u Ung gp t{nth[t chung do ngi chuybn chT ho]c Ui l c\a hk d‚+iRn coi nh U_y U\ s Uqc ch\ hng ngi gTi ho]cngi nhXn hng giao nwp trc +hi nhXn hngF.

part 1- chapter ii- update_bookbooming

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