TOPIC 4 - DRYDOCKING, PORT OF REFUGE AND SAFEGUARDING OF CARGO Flashcards

Question

What is a General Average loss?

Answer 1

A partial loss incurred through a deliberate act performed with the intention of protecting all the interests involved in a voyage from a danger which threatens them all.

Answer 2

They are equitably shared by all the parties to the 'common adventure' (i. e. the voyage), each contributing in proportion to his percentage of the total values involved (e. g. ship + cargo + freight at risk).

Answer 3

The shipowner; the cargo owners (however many); the owners of the bunker fuel (who may be time charterers); the recipient of the freight at risk (usually the shipowners or time charterers). Where cargo is owned by more than one party, each cargo owner is treated as a separate interest and bears his own share of any General Average loss, no matter how small.

Answer 4

By the value of his bunkers remaining on board at the termination of the voyage, plus any freight at risk. (Where the time charterer owns the cargo there may not be any freight at risk.)

Answer 5

If there is no party with property at risk other than the shipowner, no, since there is no 'common adventure'. Where a ship is chartered, however, there may be charterers' property at risk. In the case of a containership carrying empty containers, the owners of the containers are parties to the common adventure, so there can be General Average.

Answer 6

All the property at risk in the common adventure at the time of the incident giving rise to the General Average act, and saved by that act, must contribute to the General Average according to its value to its sound market value at the termination of the adventure. There must be equality of contribution between the owner of property sacrificed and the owner of property saved, so that no interest profits by his sacrifice.

Answer 7

General Average acts, sacrifices, and expenditure. A General Average Act is, for example, the act of refloating a stranded ship. A General Average Sacrifice might be cargo jettisoned to assist the refloating. General Average Expenditure might be the salvor's reward.

Answer 8

Yes, depending on what was stated in the contract of carriage. Unless the contract stipulates the York-Antwerp Rules, adjustment may have to be made under the rules applicable in the country where the voyage is terminated, which may be somewhat different.

Answer 9

(1 ) The sacrifice or expenditure must be extraordinary. (2) The sacrifice or expenditure must be reasonable. (3) The act must be intentional or voluntary, and not inevitable. (4) There must be a peril. (5) The action taken must be for the common safety and not merely for the safety of part of the property involved.

Answer 10

A danger. The peril must be real and substantial, but it need not be imminent. The distinction between action taken for the common safety in time of peril and a measure which, however reasonable, is purely precautionary, is a very fine one. A ship drifting without engine power in mid-ocean would certainly be 'in peril' under the York-Antwerp Rules (which govern the assessment of most general average cases), even though the weather might be calm at the time and there was no immediate threat. Sooner or later, ship and cargo would come to grief one way or another, so the cost of a tow to safety would therefore qualify in General Average. Where the master of a perfectly sound ship prudently decides to run for shelter from an approaching storm, there is no General Average act, since the measure is purely a precaution of a prudent seaman.

Answer 11

Action to avoid a loss due to a peril which threatens the interests of all the parties to a common adventure. For example, say refrigerating machinery of a reefer vessel breaks down during a loaded voyage through tropical waters, making it imperative to put into port for repairs. The threat of loss in this case is limited to the cargo and perhaps the freight. As far as the ship itself is concerned the voyage could quite safely continue, so deviation to a repair port would not be a General Average act. Where a fishmeal cargo was on fire, however, deviation would almost certainly qualify as a General Average act. Deviation to a port of refuge is only allowed in General Average where to do otherwise would imperil the ship, cargo and freight.

Answer 12

Acts such as: (1 ) taking a tow to a port of refuge after a major machinery failure; (2) jettisoning or discharging cargo to aid refloating after stranding; (3) extinguishing a fire; (4) wetting previously undamaged cargo while extinguishing a fire; (5) beaching a ship (i. e. voluntary stranding) to avoid foundering; (6) putting into a port of refuge during a loaded voyage due to fire, shifting of cargo, collision, grounding, leakage, etc.; (7) putting into a port of refuge to effect essential hull or machinery repairs.

Answer 13

For example, damaging engine, propeller or hull durring refloating operations; jettison of cargo from underdeck; jettison of cargo carried on deck by a recognised custom of the trade; slipping an anchor and cable to avoid a collision.

Answer 14

For example: costs of hiring a tug to refloat a stranded ship with cargo onboard; cost of discharging cargo in order to refloat a stranded ship or to carry out repairs at a port of refuge; salvage costs; agency fees at a port of refuge; surveyors' fees; warehousing charges; port charges; master's and crew's wages while a ship is being repaired; and Average Adjuster's fee.

Answer 15

When General Average is declared after the 'adventure is terminated', i. e. on completion of discharge at the port of destination after a General Average act. If the voyage is abandoned at an intermediate port (perhaps the port of refuge), then the adventure terminates at that port.

Answer 16

The shipowner, since he is the party to the common adventure closest to the action', but legally it may be any party to the common adventure. The master could declare General Average on the shipowner's behalf.

Answer 17

Formally, and in compliance with local law and custom, before delivery of cargo to receivers at the destination port, following the General Average act. The owners or port agent should be able to advise on local procedure.

Answer 18

He should call in an Average Adjuster and get his advice, which would normally be to obtain Average Bonds and Guarantees on all sound cargo being discharged after the General Average act, and to accumulate evidence required for the adjustment. The adjuster will make an estimate of the total value of the loss or damage and advise the shipowner of the rate of contribution required from each party.

Answer 19

Yes, he has a common law lien on cargo in his possession for its contribution to a General Average. However, because General Average contributions take many months to be assessed, it is not normal for the shipowner to exercise his lien on cargo for the full contribution. Instead, he exercises the lien on some form of security pending the final adjustment. This takes the form of Average Bonds and Guarantees.

Answer 20

A signed undertaking given by cargo owners stating that, in return for delivery to them or to their order of the goods noted in the bond, they agree to pay the proper proportion of any General Average (and salvage) charges which may thereafter be ascertained to be due from the goods. Lloyd's Average Bond form (LAB77) is normally used.

Answer 21

A cargo underwriter's signed guarantee, given in consideration of delivery of the goods to their consignees without collection of a General Average deposit.

Answer 22

The master, or the ship's agent on his behalf. (In practice, it will normally be the agent.)

Answer 23

Yes, a General Average Deposit (in cash). Deposits might not be so easy to collect, however, than Bonds and Guarantees.

Answer 24

A General Average Deposit Receipt, but never in duplicate.

Answer 25

Cargo is delivered to the receivers, or to their order.

Answer 26

Not necessarily. A vessel may have to proceed from the port of refuge to a repair port. In this case, additional insurance would be required, and the insurers' surveyor, probably from the Salvage Association, and possibly a class surveyor, would normally attend the vessel before she departed for the repair port.

Answer 27

It is to support a cargo’s owner’s claim against underwriters. There is no legal requirement to note protest, however in many countries a “note of protest” is admissible as evidence before a legal hearing and the success of a case may well depend on protest being made.

Answer 28

It is carried out by the ship’s Master making a statement or declaration under oath to a Notary Public, a magistrate or a consular official. The statement is related to the occurrence during the voyage, which is beyond the control of the Master, which has given or may give rise to loss or damage. The Master must reserve the right to extend the note of protest

Answer 29

A 'Note of Protest' is made: When the ship has encountered heavy weather which may result in cargo damage. Whenever damage has been caused or is suspected from any cause. Where cargo has been damaged through a peril of the sea (i.e. inadequate ventilation because of the stresses of bad weather). When cargo is shipped in such a state as to be likely to deteri¬orate during the voyage (B/Ls would also need to be endorsed in this example). When the terms of the Charter Party (C/P) has been breached by either the Charterer, or his agent. Examples: refusal to load, or loading improper cargo. When consignees fail to discharge cargo or to take delivery and pay freight. In all cases of General Average, or failure to make a cancellation date due to heavy weather. It should be borne in mind that the act of Noting Protest should be made as soon as possible after arrival in port. Where a cargo Protest is being made, this should be carried out before 'breaking bulk'. Where cargo is for several ports, a Note of Protest should be made in each port.

Answer 30

As soon as possible after arrival, always within 24 hours of arrival, and (where there may be cargo damage) preferably before breaking bulk.

Answer 31

Perhaps, depending on local law. The agent at the first port should be asked if it will be necessary to note protest at each port in the rotation.

Answer 32

Go to notary public or other appropriate person with one or more witnesses from the crew who have knowledge of the facts. Take Official Log Book, deck log and all other relevant information surrounding the event being protested. Make sworn statement before notary, who enters it in Register of Protests. Obtain at least 3 certified copies of protest (owners, adjuster and ship's file). Pay fee (master's disbursement) and obtain receipt.

Answer 33

Have it notarised by a notary public or a consulate.

Answer 34

Since it may be impossible to ascertain the full extent of the loss or damage when first noting protest.

Answer 35

When relevant facts have come to light, e. g. when a surveyor's report has been received.

Answer 36

An average adjuster, e. g. when preparing a General Average Statement.

Answer 37

In strict conformity with local law regarding time limits, procedure and content. (The extension need not be made in the same port as the original protest. ) I would goto (another) notary, consul, etc. with the original protest and relevant documents (e. g. surveyors' report). I would make a sworn statement before the notary or consul, who will attach authenticated copies of relevant documents, sign and seal the protest. I would pay the fee and obtain a receipt.

Answer 38

No, as long as the initial protest is lodged and the average adjuster gets the required surveyors' reports, etc. from some source.

Answer 39

A written communication recording dissatisfaction on the part of one party concerning any operational matter over which the recipient or other party has control, and holding the other party responsible for the consequences of the matter being complained of. Most commonly a protest is in connection with cargo, although one may be written about almost any matter. It may help to substantiate a claim by owners (or refute a claim by charterers, harbour authority, etc.), and may prove useful, if properly filed, when a dispute is being resolved long after the related event. A letter of protest should not to be confused with a protest (or 'sea protest') noted or lodged with a consul or notary public.

Answer 40

Type or hand-write it, either as a business letter on a company form. (Some companies, especially in the oil, gas or chemical trades, supply masters with a stock of printed Protest forms; others expect masters to compose Letters. ) I would end in an appropriate formal manner, e. g., 'the undersigned hereby declares that the Bill of Lading will be signed under protest...... 'or '.... and I hereby lodge protest accordingly, and we, including my disponent owners, hold you and / or Charterers responsible for delays and consequences. ' I would issue the original to the other party and retain copies for the ship's file, agent and owners.

Answer 41

(1 ) When cargo is being loaded too fast or too slow; (2) when stevedores are damaging ship or mishandling ship's equipment; (3) when wash from harbour craft is causing problems for ship; (4) when the cargo specification is 'wrong'; (5) hen there is a discrepancy between ship's and shore cargo figures; (6) when the berth or fendering arrangements are inadequate; (7) when longshoremen/dockers are misusing ships' equipment and ignoring duty officers' advice, or are urinating in the cargo spaces; (8) when passing vessels cause ranging, wash damage, etc. whilst loading/discharging; (9) in any other situation where the master wishes to formally record his dissatisfaction with arrangements over which the other party has some control.

Answer 42

(1 ) When discharged cargo quantity does not match the bill of lading quantity; (2) when the ship is discharging 'too slowly'; (3) when the specification, colour, temperature, etc. of discharged cargo is 'wrong'; (4) when making smoke in port; (5) after the ship has allegedly caused damage to a quay or other property.

Answer 43

Sign it for receipt only', return the original to the sender, and file the ship's copy.

Answer 44

Tort law is a branch of the law which covers civil wrongs, such as defamation and trespassing, among many other transgressions. Under tort law, if someone suffers a physical, legal, or economic harm, he or she may be entitled to bring suit. If the suit is deemed valid, damages may be awarded to the victim to compensate for his or her troubles. Most tort laws are found in regional, state, and national civil codes, which often spell out limits on damages and the statute of limitations for tort cases. Many people divide tort law into three rough categories: negligent torts, intentional torts, and strict liability torts. Torts arising out negligence are civil wrongs caused by negligent behavior or a failure to practice due diligence. For example, if you are playing soccer in the street and you accidentally kick the ball through someone's living room window, this may be a negligence tort. Medical malpractice and other forms of professional negligence are also covered under the umbrella of negligence torts. Intentional torts are torts which involve a deliberate attempt to harm. Defamation is often viewed as an intentional tort, as is battery, fraud, false imprisonment, and interference with the economic operations of a company. Strict liability torts cover product liability; if a potato peeler takes your finger off when you operate it as directed, the manufacturer could be liable, for example.

Answer 45

(Maritime law) A fraudulent breach of duty by the master of a ship that injures the owner of the ship or its cargo; includes every breach of trust such as stealing or sinking or deserting the ship or embezzling the cargo In maritime law, barratry is the commission of an act by the master or mariners of a vessel for an unlawful or fraudulent purpose that is contrary to the duty owed to the owners, by which act the owners sustain injury. A form of barratry is misconduct of the master of a ship in taking commodities on board that subject the ship to seizure for smuggling. It is essential in barratry that a criminal act or intent exist on the part of the master or mariners which goes to their own benefit and causes loss to the owner(s) of the ship.

Answer 46

The Hague Rules and the Hague-Visby Rules are applied by most countries, but some countries have adopted the Hamburg Rules. (See Section F for questions on these rules.)

Answer 47

The York-Antwerp Rules.

Answer 48

A maritime lien in admiralty law is a privileged claim upon maritime property, such as a ship, in respect of services rendered to, or the injuries caused by that property. In common law, a lien is the right of the creditor to retain the properties of his debtor until the debt is paid.

Answer 49

Wages of the ship’s master and crew Salvage operations General average claims Claims for the breach of a charter party Preferred ship mortgages Claims under maritime contracts for repairs, supplies, towage, pilotage and a wide variety of other “necessaries” Claims for maritime torts including personal injury and death, and collision claims Claims for the damage or loss of cargo Claim by the carrier of cargo for unpaid freight and demurrage Pollution claims Although there is a list recognized by the admiralty jurisdiction, the definitions and criteria are not the same under the maritime law of differing jurisdictions. For example, bunker suppliers are not protected by maritime lien under UK law. However the supplier of bunker goods has the right of lien in the US

Answer 50

In England and Commonwealth countries, the term "maritime lien" applies only to a select group of maritime claims, being seamen's wages, master's wages, master's disbursements, salvage, damage (caused by the ship), bottomry and respondentia. These are known as "traditional maritime liens". Other maritime claims resulting from services supplied to the ship or damages done by the ship, notably claims for "necessaries" provided to the vessel (e.g. bunkers, supplies, repairs, and towage), as well as claims for cargo damage, for breaches of charterparty and for contributions of the ship in general average, do not give rise to "traditional maritime liens" in the U.K. and Commonwealth countries, but only to "statutory rights in rem". The latter are simply rights granted by statute to arrest a ship in an action in rem for a maritime claim. Unlike traditional maritime liens, statutory rights in rem do not arise with the claim; they do not "travel with the ship" (i.e. they are expunged if the vessel is sold in a conventional sale before the action in rem is commenced on the claim concerned); and they rank after, rather than before, the ship mortgage in the distribution of the proceeds of the vessel's judicial sale In rem lawsuits can be brought against the property of debtors in order to collect what is owed, and they are begun for the partition of real property, foreclosure of mortgages, and the enforcement of liens. Respondentia is a loan of money on maritime interest, on goods laden on board of a ship, which, in the course of the voyage must, from their nature, be sold or exchanged, upon this condition, that if the goods should be lost in the course of the voyage, by any of the perils enumerated in the contract, the lender shall lose his money; if not, that the borrower shall pay him the sum borrowed, with the interest agreed upon, The contract is called respondentia, because the money is lent on the personal responsibility of the borrower. It differs principally from bottomry. Bottomry is a loan on the ship; respondentia is a loan upon the goods.

Answer 51

The letter cannot be used as evidence in any court action involving the two parties (the owners of our ships) without the consent of both of them. This enables the parties to negotiate a settlement of the dispute without implying any admission of liability.

Answer 52

The aim of ship’s officers and crewmembers on board should be to prevent damage or deterioration whilst the cargo is under their care and to deliver it, as far as possible, in as good condition and order as it was when received aboard.

Answer 53

The Master and officers require a good working knowledge of the various kinds of cargo they are likely to carry: their peculiar characteristics, liability to damage, decay, or deterioration, their measurement, and the usual methods of packing, loading and discharging, stowage, dunnaging, etc.

Answer 54

The Master. He delegates the function to the Chief Officer but he remains the responsible officer.

Answer 55

Mate’s receipt. This is a document used in the shipment of a cargo. When the goods are received by or for the sea carrier, a “mate’s receipt” is issued either directly by the ship or by the ship’s agents. This is the first evidence that the goods are received and statements on the document describe the quantity of goods, any identifying marks and the apparent condition. This information is inserted from visual evidence when the goods are received. The quantity can be verified by a “tally” or count being made of the number of packages and the tally clerk’s receipt may be attached to the mate’s receipt. This information on the mate’s receipt is very important because this information should also be transferred on to the bill of lading. The bills of lading are usually required to be issued “in accordance” or “in conformity” with the mate’s receipts and/or the tally clerk’s receipts.

Answer 56

Incorrect Bill of Lading and so the ship becomes liable for any shortfall in the cargo delivered?

Answer 57

The aim of ship’s officers and crewmembers on board should be to prevent damage or deterioration whilst the cargo is under their care and to deliver it, as far as possible, in as good condition and order as it was when received aboard.

Answer 58

The Master and officers require a good working knowledge of the various kinds of cargo they are likely to carry: their peculiar characteristics, liability to damage, decay, or deterioration, their measurement, and the usual methods of packing, loading and discharging, stowage, dunnaging, etc.,

Answer 59

The Master. He delegates the function to the Chief Officer but he remains the responsible officer.

Answer 60

Check acceptability of the cargo. The cargo must be dry and in apparent good condition. Check for damage. If the cargo is sensitive to moisture, ensure proper conditions throughout loading are maintained. Close hatches during rain when necessary. Damage to cargo may be caused by incorrect stowage or slinging, careless use of mechanical handling equipment, e.g. forklift trucks, insufficient attention to labeling and marking, carelessly packed units, insufficient dunnaging or packaging, incorrect ventilation settings or, in the case of refrigerated cargo, incorrect set points. Check correct handling and use of cargo handling equipment. For example, cargo hooks should never be used when discharging fragile cargo. The Cargo Officer must be familiar with the ship's specialised cargo gear. Check cargo sling arrangements to safeguard against the cargo being dropped or incorrect Safe Working Load (SWL) slings being used. The stowage of all cargo should be checked with reference to the cargo plan. Particular attention should be paid to the loading of dangerous or refrigerated cargo. Reefers must be plugged in immediately and the temperature logged. When stowing general cargo, preventative measures should be taken to ensure against the possibility of fragile goods being crushed when stowed with heavy goods. Some cargoes are liable to damage from taint. These should not be stowed next to strong smelling cargoes.

Answer 61

If the damage is serious bring it to the immediate attention of the chief officer. It may be necessary to get the damage surveyed prior to loading or even to reject the cargo in serious cases. Minor damage can be dealt with by the completion of a cargo damage report.

Answer 62

The Cargo Damage Report is a statement of damage to the cargo that gives all of the details. Damage reports should have certain essential items recorded on them, e.g. cargo marks, commodity type, container type and number involved, stowage location, when discovered, extent of damage and the time of the discovery.

Answer 63

For inspections refer to the company’s planned maintenance procedures, but in any case: Cargo lifting appliances must be inspected to establish that they are correctly rigged on every occasion they are used. A annual thorough inspection would also take place annually by a ‘competent person’, namely the Chief Officer. In the case of lifting plant, derricks, cranes, shackles, wires, etc. the following test periods would be required: a. after installation when new b. following any major repair c. at intervals of every 5 years.

Answer 64

Derricks are checked every time they are used and undergo a detailed annual inspection. They are tested at five (5) yearly intervals, after installation at new and in circumstances following any repair. The test will be a proof load test, where the rig will be sustained to the SWL + % tonnage to equal the proof load amount. Proof Load for derricks up to 20 tonnes SWL = 25% excess of SWL for derricks 20 to 50 tonnes SWL = 5 tonnes excess of SWL for derricks 50 tonnes + SWL = 10% excess of SWL

Answer 65

The chain register is the register in which data concerning a ship’s lifting gear must be recorded. The term ‘lifting gear’ includes derricks and cranes for the handling of stores, and also lifting gear used in the engineroom, and it is important that all such items of equipment should be properly tested, certified, marked and maintained. When the inspections have been carried out the register must be signed in the appropriate places. Registers are normally divided into four parts to deal with four different categories of equipment. Quadrennial or quintennial examinations of lifting gear are carried out by competent persons such as surveyors from classification societies and foreman from marine engineering works or drydocks, who will sign the chain register upon completion of their work. If several chain registers are carried, the surveyor must sign all of them.

Answer 66

Every item of cargo gear must be of sufficient safe working load (SWL), and suitable design. Every item of cargo gear must be marked with a unique identifying number. There must be a certificate, in an approved form, for each item of cargo gear, identified by its unique number. A system must exist to produce the certificate for any item of cargo gear promptly. Only certificated tested wires, blocks, hooks, swivels and shackles etc. should be used for cargo handling and lifting operations.

Answer 67

This inspection requires a detailed inspection to take place of all aspects – hydraulic, mechanical and electrical – of the lifting appliances. All wires would be visually inspected for defects and the mousing on shackles would be sighted to be satisfactory. The ‘gooseneck’ of derricks and all the blocks would be stripped down and overhauled. Thorough inspections would detect corrosion, damage, hairline cracks and excessive wear and tear. Once defects are found corrective action would be taken to ensure that the plant is retained at 1OO% efficiency. These inspections would normally be carried out systematically under the ship’s planned maintenance schedule. This allows a permanent record to be maintained and is evidence to present to an ISM Auditor. Records and service history should be kept of equipment, of dates when and where it is brought into use, its safe working load, any repairs, modifications, tests and examinations carried out.

Answer 68

Protection and indemnity insurance, commonly known as P&I insurance, is a form of marine insurance provided by a P&I club. A P&I club is a mutual (i.e. co-operative) insurance association that provides cover for its members, who will typically be ship-owners, ship-operators or demise charterers. Unlike a marine insurance company, which is answerable to its shareholders, a P&I club is the servant only of its members.

Answer 69

The P&I Clubs all operate on a mutual or non-profit basis aiming to call up only sufficient money in each year to meet costs, expenses and claims for that year. There are no shareholders and the shipowner members of the Association insure each other.

Answer 70

Both P&I clubs and conventional marine insurers are governed by the provisions of the Marine Insurance Act 1906. The P&I Clubs provide cover for a shipowner’s liabilities, not the fabric of the ship itself. The risks covered will usually include:- 1. Death and personal injury of - Seamen - Passengers - Third parties 2. Liabilities in respect of stowaways or persons saved at sea. 3. Liabilities arising from collisions. 4. Liabilities arising from groundings. 5. Liabilities arising from damage to fixed and floating objects. 6. Liabilities arising from pollution. 7. Liabilities arising from wreck removal. 8. Liabilities arising from towage operations. 9. Liability to cargo.

Answer 71

It provides the ship-owner cover against cargo damage claims. Any given cargo may be insured twice: the shipper/cargo-owner will take out conventional cover, and the carrier will have P&I cover. If the cargo is lost or damaged, the cargo-owner should first make a cargo claim against the carrier; but the latter may avoid liability because either (i) he did not cause the loss, or (ii) the Hague-Visby Rules grant exemption from liability. In such a case, the cargo owner will claim against his own insurer. If the cargo-owner fails to claim first against the carrier, but claims against his own insurer, the latter (having reimbursed their client) will, through subrogation, be able to pursue the claim in their own right against the carrier. It provides advice to the Master and ship-owner. The Master may call upon his owner’s Club for advice in a cargo matter that could be technical or legal, and the Club will appoint a representative to advise the Master accordingly. The Club publishes guidelines and advice in booklets or pamphlets providing advice to the industry as a whole.

Answer 72

Stevedores and agents work for the Master. Stevedores are employed by the agent on behalf of the ship and so they answer to the Master and his officers. Any loading or discharging operation should be openly and frankly discussed between the Chief Officer and Stevedore Boss, however, keep in mind that the Stevedore Boss has to do what the Mate requires. Final responsibility for the safe stowage of the cargo falls upon the Master and his officers. Cargo damage caused by the stevedores is managed under a legal understanding of the fact that the stevedores are the servants of the Master. The ship’s agent acts for and on behalf of the ship-owner for the period the ship is in port. The agent arranges all the requirements for the ship’s husbandry while the ship is in port: such as: customs and immigration clearance; bunkers; stores; stevedores; berth; pilot; tugs; repairs; The relationship between the agent and Master is one of mutual respect and cooperation. Cargo surveyors: If they are acting for the ship they are then the servant of the Master and should be treated with respect and cooperation. They are there to assist you the Mate. If they act for cargo owner (shipper) they are to be accorded cooperation so far as their business is concerned. They do get free access to the ship. They may only view and ask questions specifically about the cargo they represent.

Answer 73

Goods classified in the IMDG Code or in any other IMO publication referred to in The Dangerous Goods and Marine Pollutants Regulations (e. g. the IBC Code and IGC Code) as dangerous for carriage by sea, and any other substance or article which the shipper has reasonable cause to believe might meet the criteria for such classification. They include residues in empty receptacles, empty tanks or cargo holds previously used for carrying dangerous goods unless cleaned, dried, purged, gas freed or ventilated as appropriate or, in the case of radioactive materials, have been both cleaned and adequately closed; and goods labelled, marked or declared as dangerous goods. They do not include ship's equipment or stores.

Answer 74

A substance classified as such in the IMDG Code, or as a noxious liquid substance in the IBC Code, and any other substance, material or article that the shipper has reasonable cause to believe might meet the criteria for such classification.

Answer 75

In the IMDG Code. They are indicated by the words 'MARINE POLLUTANT' and a symbol of a triangle containing a fish, with an overlaid cross.

Answer 76

With a triangle symbol containing a fish, with an overlaid cross.

Answer 77

A Document of Compliance with the Special Requirements for Ships Carrying Dangerous Goods. It certifies that the ship meets the fire protection requirements of SOLAS.

Answer 78

A Dangerous Goods Declaration or a Marine Pollutants Declaration, as appropriate. A combined declaration is allowed. The declaration can be made on a Dangerous Goods/Marine Pollutants Note.

Answer 79

A special Shipping Note for dangerous goods and marine pollutants which is commonly used in the liner and ro-ro trades. It replaces the Standard Shipping Note used for non-dangerous or -polluting goods. It should be presented by the shipper either to the carrier or the master, in return for which a bill of lading or sea waybill would normally be issued by the carrier.

Answer 80

(1) Proper shipping name of the goods; (2) class and division where applicable; (3) UN Numbers where allocated by the IMDG Code; (4) packaging or packing group where relevant; (5) number and kind of packages; (6) total quantity of dangerous goods or net explosive mass of the contents; (7) the words MARINE POLLUTANT where appropriate; and (8) any other information required by the IMDG Code; (9) date of preparation of document; (10) name, status and company or organisation of signatory.

Answer 81

This must set out details, obtained from the shipping documents submitted by the shipper, of the packaged goods on board including: the correct technical name of the goods; their classification in accordance with the IMDG Code, their mass or volume; and details of the stowage location in the ship. The information may be in one combined document relating to both dangerous goods and marine pollutants, or in separate lists. Combined lists must show clearly which goods are dangerous goods and which are marine pollutants.

Answer 82

That a special dangerous goods/marine pollutants list, manifest or stowage plan is carried in the ship. This, and any additional special documents required for the acceptance of goods for carriage must be kept on board and available for reference or inspection until the goods have been discharged.

Answer 83

SAMSA. The agent is usually instructed to do this. The list is submitted with a stowage plan. If loading Class 1, the ship is subject to an inspection bty a SAMSA surveyor

Answer 84

Written notification of the nature of the goods, specifying: (1) their correct technical name; (2) their UN number, if any; (3) for any solid bulk dangerous goods, the classification as listed in the IMDG Code; and (4) for liquid dangerous goods with a flashpoint below 60°C (closed cup), the flashpoint.

Answer 85

A specific list, manifest or stowage plan setting out the details, obtained from the shipping documents submitted by the shipper, of the dangerous goods or marine pollutants carried including: (1 ) the correct

Answer 86

The shipper must provide such information to the owner or master sufficiently in advance of loading as is necessary to enable them to ensure that: (1) the different commodities to be carried are compatible with each other or suitably separated; (2) the cargo is suitable for the ship; (3) the ship is suitable for the cargo; (4) the cargo can be safely stowed and secured and transported under all expected conditions during the intended voyage. The information must be in writing in appropriate shipping documents and be given before loading the cargo on the ship. Where the shipper does not deliver the cargo to the ship or its agent, he must provide the forwarder with the information; it then becomes the forwarder's duty to pass the information to the owner or master.

Answer 87

(1 ) A general description of the cargo, (2) the gross mass of the cargo or cargo units and (3) any relevant special properties of the cargo.

Answer 88

Information on the stowage factor of the cargo, the trimming procedures, the likelihood of shifting including the angle of repose (if applicable), and any other relevant special properties. In the case of a concentrate or other cargo which may liquefy, there must be also be a certificate indicating the moisture content of the cargo and its transportable moisture limit.

Answer 89

Bulk cargoes which are not classified in accordance with Regulation VII/2 of SOLAS, but that have chemical properties that may create a potential hazard.

Answer 90

They must ensure that appropriate documentation, relevant to the cargo and its stowage and securing, which should specify in particular the precautions necessary for the safe carriage of that cargo, is carried on board. This may consist of one or more of: (1 ) the IMO Code of Safe Practice for Cargo Stowage and Securing', (2) the IMO Code of Safe Practice for Ships Carrying Timber Deck Cargoes; or (3) the IMO Code of Safe Practice for Solid Bulk Cargoes (the BC Code).

Answer 91

(1 ) All passenger ships, and (2) all cargo ships carrying cargoes other than solid bulk cargoes, except cargo ships of less than 500 GT engaged on voyages which are not international voyages.

Answer 92

To ensure that: (1) cargo and cargo units carried on or under deck are loaded, stowed and secured so as to prevent as far as practicable, throughout the voyage, damage or hazard to the ship or the persons on board, and loss of cargo overboard; (2) appropriate precautions are taken during loading and transport of heavy cargoes or cargoes with abnormal physical dimensions to ensure that no structural damage to the ship occurs and to maintain adequate stability throughout the voyage; (3) appropriate precautions are taken during loading and transport of cargo units on board ro-ro ships, especially with regard to the securing arrangements on board such ships and on the cargo units and with regard to the strength of the securing points and lashings; (4) cargo on board is stowed and secured throughout any voyage in accordance with the Cargo Securing Manual; (5) cargo on board all ships with ro-ro cargo spaces must be stowed and secured in accordance with the Cargo Securing Manual before the ship leaves a berth.

Answer 93

In the case of a ship transporting or accepting for transport a bulk cargo which is liable to emit a toxic or flammable gas, or cause oxygen depletion in the cargo hold, an appropriate instrument for measuring the concentration of gas or oxygen in the air must be provided together with detailed instructions for its use. The instrument must be of a type approved by a certifying authority, and the crew must be trained in its use. The owner of a ship which transports, or a master who accepts for carriage, such a cargo without ensuring that these requirements have been complied with commits an offence.

Answer 94

Where pesticides are used in cargo spaces, they must be used in accordance with the IMDG Code and MSN 1718 (The Safe Use of Pesticides in Ships) and any statutory requirements of the Flag and Port State.

Answer 95

If either (1) the moisture content of the cargo indicated in its certificate is less than its transportable moisture limit; or (2) if the moisture content is above the TML, appropriate safety arrangements are made to the satisfaction of the certifying authority to ensure adequate stability in the case of cargo shifting, and the ship has adequate structural integrity.

Answer 96

A cargo loading manual, written in a language with which the officers responsible for cargo operations are familiar. (If not in English, an English-language version must also be provided.) This may consist of one or more booklets and as a minimum must contain: (1 ) stability data as required by the Safety of Navigation Regulations OR SOLAS;(2) ballasting and deballasting rates and capacities; (3) maximum allowable load per unit surface area of the tank top plating; (4) maximum allowable load per hold; (5) general loading and unloading instructions with regard to the strength of the ship's structure including any limitations on the most adverse operating conditions during loading, unloading, ballasting operations and the voyage; (6) any special restrictions such as limitations on the most adverse operating conditions imposed by the Administration or organisation recognised by it, if applicable; and (7) where strength calculations are required, maximum permissible forces and moments on the ship's hull during loading, unloading and the voyage.

Answer 97

A plan which: (1) must ensure that the permissible forces and moments on the ship are not exceeded during loading or unloading; and (2) must include the sequence, quantity and rate of loading or unloading -taking into consideration the intended speed of loading or unloading, intended number of pours and the deballasting or ballasting capability of the ship. The master and terminal rep must ensure that the loading and unloading operations conform to the plan.

Answer 98

The appropriate authority of the port State:

Answer 99

The master must ensure that ship's personnel continuously monitor cargo operations. Where possible, the ship's draught must be checked regularly during loading or unloading to confirm the tonnage figures supplied. Each draught and tonnage observation must be entered in a cargo log book. If significant deviations from the plan agreed are detected, cargo or ballast operations or both must be adjusted to ensure that the deviations are corrected.

Answer 100

To ensure that bulk cargoes are loaded and trimmed reasonably level, as necessary, to the boundaries of the cargo space so as to minimise the risk of shifting and to ensure that adequate stability will be maintained throughout the voyage.

Answer 101

The right to suspend operations. If I do so I must notify accordingly the appropriate authority of the port State with which the plan has been lodged. I and the terminal representative must then ensure that corrective action is taken.

Answer 102

We must ensure that the unloading method does not damage the ship's structure.

Answer 103

The requirements of the International Grain Code.

Answer 104

The requirements of the International Grain Code.

Answer 105

A document of authorisation as required by the International Grain Code. In the case of a South African ship this must be issued by SAMSA.

Answer 106

(1) The ship must have on board a document of authorisation; or (2) the master has demonstrated to the satisfaction of the certifying authority that the ship will, in its proposed loading condition, comply with the requirements of the International Grain Code and has obtained a document to this effect signed by a surveyor or a certifying authority.

Answer 107

Yes, I must carry any additional special documents where required for dangerous goods or marine pollutants by the Bulk Cargoes Code, the BCH Code, the IBC Code, the IGC Code or the Gas Carrier Code. These might include a bulk coal Declaration by shipper, a Certificate of Test of a substance, a Certificate of Fitness, etc.

Answer 108

Medical First Aid Guide and Emergency Schedules. They are in the Supplement to the IMDG Code.

Answer 109

Reject the goods (with the advice/assistance of an independent cargo surveyor where necessary).

Answer 110

I would accept the goods for carriage on condition that I can issue a claused bill of lading stating the nature of the deficiency in their order or condition. I am entitled, as the carrier's servant, to enter remarks on the bill of lading as to the apparent order and condition of the goods.

Answer 111

Traditionally, the shipper brings his cargo alongside for loading and tenders to the ship a boat note or shipping note containing full details of the goods to be loaded. The ship tallies the goods as they are loaded. On completion of loading the ship issues to the shipper a mate's receipt containing details of the exact quantity and apparent condition of the goods loaded. The shipper meanwhile obtains a full set of blank original bills of lading, together with any 'copy' Bills he needs. From the mate's receipt the shipper copies the details of the goods loaded (including the date and place of loading, ship's name, etc. ) onto the bill of lading. The shipper then pays any freight due and tenders the original bills of lading to the ship's master or agent for signature. The master or agent compares the details inserted by the shipper in the bill of lading with those in the ship's copy of the mate's receipt and, if no changes are required, signs the original bills of lading. Any remarks on the mate's receipt as to defective condition or number of the goods must appear on the bills of lading. The bills of lading are finally issued to the shipper in return for the original mate's receipt, which he surrenders.

Answer 112

A non-negotiable document, otherwise similar in functions to a bill of lading, which is often used in preference to a bill of lading where this is permitted. It is not a document of title and can not, therefore, be used to transfer title in the goods to a third party. It may travel with the goods on the ship and does not need to arrive ahead of the goods for the receiver to claim the goods. It is often used where there is trust between the buyer and seller, and is preferred to a bill of lading in trades where bills of lading often lag behind the cargo (e. g. short-sea trades), and where there is no contractual requirement for bills of lading (e. g. in a sale not involving a letter of credit).

Answer 113

Since some remarks may not be effective in protecting the carrier's position against later claims by third parties, I would contact the owners' P&l club correspondent before making any remarks of which I was uncertain.

Answer 114

Because certain remarks will make a bill of lading 'dirty', 'claused' or 'foul', with serious consequences for the shipper when he presents a set of shipped bills of lading to his bank and tries to collect early payment for the goods in a letter of credit transaction.

Answer 115

I would: sign bills of lading when the agent presented them (before completion of loading); return the originals to the agent but retain non-negotiable 'captain's copies' together with other copy bills of lading for consignees; make any necessary protest regarding the order or condition of cargo, and allow any investigation to be completed before departure. After departure the agent would normally communicate the shipper's final loading figures as soon as they are available. If I agree the shore figures, I would enter them on my captain's copies and the consignee's copies of the bills of lading. The agent ashore would complete the original bills of lading and sign them on my behalf. (This 'early departure procedure' is commonly used in the tanker trades. )

Answer 116

If I didn't agree with the shipper's figures I would inform the agent, who would write a letter of protest to the shipper on my behalf and complete and sign the bills of lading under protest. The agent would then release all the original documents to the shipper, who would send them to the consignee.

Answer 117

I would not sign. I would consult the P&l club correspondent for advice.

Answer 118

What would you do? I would suspend loading in that hold, issue a letter of protest to the stevedoring company's manager, and gather evidence (e. g. a photograph, statement from the OOW, watchman, etc. ).

Answer 119

I would seek guidance from the P&l club correspondent as to extent of rusting that would be acceptable, and arrange for an independent pre-load survey of the steel coils on the quayside. If no surveyor was available, I would carry out a survey myself and take photographs.

Answer 120

I would seek advice from the owners or the P&l club correspondent They would probably instruct me to issue a receipt to the shipper or his representative (e. g. the freight forwarder). I would not accept for carriage original bills of lading made out 'to order', or where there was no named destination or where the destination was qualified, e. g. 'Lands End for orders/intention Le Havre'. I would not accept original bills of lading for carriage if the shipper refuses to sign the receipt, or if no party is named as receiver in the bill of lading. I would not discharge against an original bill of lading carried on board if the discharge port is different from the destination shown in the bill of lading.

Answer 121

I would refuse. A shipped bill of lading should only be dated for the actual date of loading, or date of completion of loading.

Answer 122

I would refuse, unless with the agreement of the P&l club correspondent. They would normally ensure that before a second set is issued, all bills of lading in the first set were returned and cancelled or destroyed (hence the requirement for the number of Bills in the set to be shown). Each bill of lading in a new set should be claused to effect that it is a replacement bill of lading, with the reason for re-issue.

Answer 123

Refuse, unless with agreement of the P&l club correspondent.

Answer 124

Two or more sets of original bills of lading may have to be issued: where cargo is shipped by more than one shipper (e. g. at multiple loading ports); where cargo is consigned to more than one consignee; or where more than one type/grade/specification of cargo is shipped by one shipper.

Answer 125

I would endorse and sign separate bills of lading to the effect that the shipments are 'part cargoes', or are 'part of a bulk cargo'.

Answer 126

I would consult the shipper as to the apportionment of quantities on the bills of lading for each consignment. Where no instructions are obtainable, the total quantity loaded should generally be divided between the bills of lading in proportion to the original split of the nominated consignments.

Answer 127

I would enter the ship's figures on the face of the bill of lading. Some owners require masters to endorse a bill of lading which does not provide space for the ship's figures in the following terms: 'Vessel's measurements are stated below and this bill of lading only acknowledges the shipment of the weight or quantity given in the vessel's measurements on completion of loading. ' Where the shipper refused to accept such an endorsement I would write a letter of protest to the shipper, pointing out the discrepancy in the figures and stating that the bill of lading will be signed under protest. I would staple a copy of the letter of protest to each negotiable copy of the bill of lading (i. e. all bills in the set of originals).

Answer 128

I would enter the shipper's figures on the bill of lading. No letter of protest is necessary.

Answer 129

I would ensure that the number of originals shown on the face is the same as the number of bills of lading presented and not marked 'NON-NEGOTIABLE'.

Answer 130

I would check that the charterer's bills of lading incorporate (by the inclusion of a Clause Paramount) the terms of the Hague Rules or Hague-Visby Rules. If there was no reference to either rules, I would immediately seek the advice of the P&l club correspondent. (Clubs usually restrict cover to contracts incorporating terms at least as favourable as those given by the Hague Rules or Hague-Visby Rules. )

Answer 131

I would clause the bill of lading to the effect that demurrage is due but has not been paid, so that the lien can be exercised if necessary at the discharge port.

Answer 132

Probably. Where a charterparty requires the master to sign 'clean' bills of lading as presented by charterers, 'clean' has been held to mean only that the bill of lading should not be claused to the effect that demurrage was due at the loading port, without affecting the master's right to clause the bill of lading as to the apparent order and condition of the goods, where necessary.

Answer 133

Clause the bill of lading with an appropriate clause recommended by the P&l club correspondent.

Answer 134

Refuse in all cases. If I signed 'clean' bills of lading where they were not justified I would become party to a fraud (by the shipper or carrier or both) on the consignee or another innocent third party to whom the bill of lading may be endorsed, and the owners' P&l club would not cover any claim arising in connection with the matter. On no account would I issue clean bills of lading in return for a letter of indemnity in these circumstances.

Answer 135

Because the rigid adherence of banks to the terms of letters of credit will make it impossible for him to receive payment on presentation of bills of lading that were anything other than 'clean'.

Answer 136

One phrased in terms acceptable to the owners' P&l club and countersigned by a first class bank or cargo insurance underwriter. Some P&l clubs print their standard letter of indemnity wording in their club handbook or rulebook, which should be carried on board. This does not imply, however, that the club will always give cover for claims arising under such letters of indemnity.

Answer 137

Where the party claiming to be the rightful receiver requests delivery of 'his' goods but can not produce an original bill of lading (perhaps because of a delay in the mail, or because of a theft of documents from his office) I would instruct the agent to inform the receiver so that no cargo can be discharged until either (1) an original bill of lading can be presented; or (2) an acceptable letter of indemnity is given by the receiver.

Answer 138

(1) I would consult stevedores, charterers, the P&l club correspondent and owners. (Stevedores or charterers may be able to remedy the shortage). (2) If the missing cargo could not be provided I would issue a Deadweight Letter to the charterers. (3) I would note protest and make an OLB entry to the effect that I had done so.

Answer 139

I would have ready a written list of the ship's requirements, e. g. cash, crew travel, repairs, stores, fresh water, bunkers, provisions. I would have ready (in plastic wallets if possible) the ships' certificates, which the agent may need to take ashore. I would also have the cargo documents ready (manifest, bills of lading, waybills, etc.).

Answer 140

I would hold a pre-arrival meeting with all officers and POs (e. g. the pumpman) concerned with cargo operations. I would ensure that the 'Chain Register' (i. e. Register of Lifting Appliances and Cargo Handling Gear) was in order for inspection by shore labour representatives (as well as Port State officials).

Answer 141

Under the Hague or Hague-Visby Rules, loss of defences to cargo claims. The carrier must show evidence (e. g. by means of cargo temperature or ventilation records) that he has 'properly and carefully..... ' cared for the cargo.

Answer 142

(1 ) The seller and buyer agree in their sales contract that payment will be made using a letter of credit. (2) The buyer instructs his bank to open a credit in favour of the seller, and that bank sends the letter of credit to the seller's nominated bank. (3) The seller ships the goods, obtains the documents required by the letter of credit and presents them to his bank, which checks the documents for compliance with the letter of credit before making payment. (4) The documents are passed to the buyer's bank (in return for payment), which debits the buyer's account before passing the documents to him.

Answer 143

(1 ) A set of original, clean, on-board bills of lading made out 'to order'; (2) a commercial invoice; and (3) a certificate of insurance. Other special documents, such as a certificate of origin, may be specified in the letter of credit.

Answer 144

It has possession of the documents giving title to the goods (i. e. the 'order' bills of lading), and thus has constructive possession of the goods. Should the buyer not be able to pay or take delivery of the goods for some reason, the bank will be in a position to sell the goods. If the goods are damaged, the bank can claim on the insurance certificate, which it will have.

Answer 145

The seller must bear all costs and risks until the goods have passed the ship's rail at the loading port (Liverpool). He must obtain a bill of lading and any other necessary documents and send them to the buyer.

Answer 146

The buyer must charter a ship or reserve the necessary space on a ship and give the seller details of the ship, the loading berth and loading dates. The buyer must bear all costs and risks after the goods pass the ship's rail at the loading port (Liverpool). He must pay the seller's expenses for obtaining the documentation.

Answer 147

He can sell the goods once he has received the documents (which he should soon after loading). The goods may therefore be sold while on the voyage, which may be essential in the case of oil, grain and other bulk commodities traded on international markets.

Answer 148

The seller must pay the costs and freight necessary to bring the goods to the named destination, but the risk of loss of or damage to the goods, and of any cost increases, is transferred from the seller to the buyer when the goods pass the ship's rail at the loading port. The seller must also, on behalf of the buyer, obtain insurance cover for the carriage.

Answer 149

The seller must pay the costs of the goods and the insurance and freight to Kobe. The buyer must pay all costs, including duty, after delivery on board the ship at Kobe.

Answer 150

CIF allows the sale of the goods by the sale of the documents, and is therefore the preferred trade term where the documentary credit system is used. The banks involved can obtain security for their credit advance by holding the documents that represent the goods.

Answer 151

A company or person who contracts with a carrier for the carriage of goods by sea. In shipping documents the shipper may be called 'the merchant'.

Answer 152

No. Many sellers and exporters employ an agent (e. g. a freight forwarder) to arrange for the shipment, and in that case the freight forwarder may legally be the shipper in the contractual relationship with the carrier. The shipper may be thought of as the party from whom goods are received by the carrier on board the vessel, i. e. the party actually shipping them.

Answer 153

A party who arranges the export or import of another party's goods (by sea, air, rail or road). Where he is arranging the export of goods he acts as the shipper's agent. For imports he may be the consignee's agent. In his contractual relationship with the carrier he may legally be a shipper.

Answer 154

Shipping and forwarding agents.

Answer 155

In the liner trades (i. e. container, ro-ro and general cargo).

Answer 156

They can (1) give expert advice on routeing (cheapest, quickest, safest); (2) arrange carriage with a carrier (i. e. booking space, paying freight, etc. ); (3) prepare or assist in preparation of shipping documents; (4) make customs entry (clearance) of goods; (5) arrange packaging and warehousing of goods before shipment; (6) arrange goods transit insurance; (7) arrange groupage or consolidation (e. g. in an LCL container) with other shippers' goods destined for the same place. Most forwarders can usually carry out any or all of these functions as required by the shipper.

Answer 157

The grouping in one cargo unit (e. g. an LCL container) of the goods of two or more shippers, where all the shipments are destined for the same place in the import country, e. g. an inland container depot. A groupage container is known as an LCL container. Groupage is cheaper for the shipper, since LCL freight rates are lower than FCL rates. Many freight forwarders and carriers offer both LCL and FCL services for shippers.

Answer 158

Usually at a container freight station or inland container depot, by a freight forwarder offering this service.

Answer 159

The individual shipments of goods in the LCL unit are de-consolidated and dispersed to their various consignees (or receivers).

Answer 160

A 'less than container load', i. e. a shipment which would not fill a container and could therefore be grouped or consolidated in one cargo unit with other goods destined for the same place in the import country.

Answer 161

A full container load, which would not need groupage or consolidation. An FCL shipment, e. g. a container-load of Scotch whisky, might be loaded into the container or trailer at the shipper's premises.

Answer 162

The party to whom goods are consigned, i. e. sent, by a shipper. The consignee is the importer, but may employ a freight forwarder to look after the import formalities. If the goods arrive damaged, the consignee is usually the party who makes a claim (either against the carrier or on a cargo insurance policy).

Answer 163

The party who takes delivery of the goods from the carrier at the destination port or terminal. This may be the consignee, or another party (e. g. a haulier) acting on his behalf.

Answer 164

The party who the carrier is instructed (by the shipper) to notify when the goods have arrived at their destination, so that collection can be arranged. The notify party's name and address usually appears on the bill of lading or sea waybill.

Answer 165

(1 ) Direct from an insurance company; (2) from company underwriters at the Institute of London Underwriters (ILU); (3) from Lloyd's underwriters; or (4) through a freight forwarder, in each case usually through a broker. Some liner carriers, such as P&O Nedlloyd, offer transit insurance as part of a package of services.

Answer 166

The dry cargo market and the tanker market. In both markets there is a voyage charter (or 'spot') market and a time charter market.

Answer 167

To find employment for ships, and to find suitable sea transport for the carriage of a cargo.

Answer 168

Owners' brokers, charterers' brokers, tanker brokers, coasting brokers, heavy lift brokers, sale and purchase brokers and various other brokers in sub-markets. Many ships' agents are Shipbrokers

Answer 169

They earn commission, called brokerage, normally at an industry standard rate of 1. 25% of the gross freight or hire rate negotiated for each broker involved in the negotiations of a 'fixture'.

Answer 170

The Institute of Chartered Shipbrokers, which is based in London. Ships' officers may sit IGS examinations and gain Membership

Answer 171

The world's chief shipbroking market, situated in the City of London.

Answer 172

Although some trading is still done face-to-face between member brokers on The Floor' of the Exchange, most communications between Shipbrokers involved in a fixture are now made by electronic means, since the brokers may be in two or more countries. The Baltic is in effect a communications 'hub' and a key source of market information. Most London brokers and many overseas brokers are members of the Baltic Exchange.

Answer 173

Major exporters and importers of iron ore, grain, coal, forest products, sugar, etc.

Answer 174

Oil companies and governments which buy oil. A large oil company will typically have on any given day a core fleet of owned tankers, an additional number of tankers chartered-in on a time charter basis and a large number of voyage chartered tankers.

Answer 175

Not necessarily. When an oil company can earn more by chartering its own ships out to another company, it usually will. Thus it is not uncommon to find a BP tanker chartered to Shell, etc. Independently-owned tankers time-chartered to oil companies are also often employed on voyage charters to third parties.

Answer 176

When, for example, there is an upturn in trade that cannot be met by capacity in its own fleet, or when an owned ship is out of service for repairs or routine dry-docking.

Answer 177

A party (usually a company) who contracts with a shipper or merchant for the carriage of goods. The carrier is not always a shipowner (see NVOC or NVOCC).

Answer 178

Where the time charterer issues his own bill of lading (as is the case with many liner companies which charter ships in), he will be the carrier. Where the ship issues its own bill of lading, however, the shipowner will

Answer 179

The master should follow a time charterer's instructions insofar as they relate to the commercial activities of the ship, e. g. voyage orders, issuing bills of lading, sending messages, etc. There will usually be a clause in the charterparty stating that: (1) the charterers are to give the master the necessary sailing instructions; (2) the master is to be under the orders of the charterer as regards employment, agency, or other arrangements; (3) the master is to prosecute the voyage with the utmost despatch and render customary assistance (to the charterer) with the vessel's crew; (4) the master (and chief engineer) are to keep proper logs accessible to the charterers and their agents; and (5) if the charterers are dissatisfied with the conduct of the master (or other officers), the owners will investigate the matter and, if necessary and practicable, change the appointments.

Answer 180

The master must perform the voyage in accordance with the agreement (the charterparty) made between the shipowner and the charterer. Unlike a time charter, this does not usually give the charterer control over the commercial activities of the ship.

Answer 181

The master, as the carrier's representative, is the bailee of the cargo, and as such is responsible for the proper care and delivery in good condition of the goods. The master should look after the cargo as if it were his own uninsured property.

Answer 182

In some emergency event when it is impossible to get instructions from the cargo owner but there is a real and definite commercial necessity to act on his behalf to preserve the cargo. This may be the case in war or salvage situations. In most cases, however, it will be possible to receive instructions.

Answer 183

A person (most often a qualified deck officer) who is employed by a charterer or cargo owner to oversee the loading, carriage and/or discharge of goods or some operation on board a ship, usually where there is some complexity about the cargo or the operation. A supercargo will often sail on board the ship under a term in the charterparty. As the charterer's representative he has considerable importance, although he has no right to interfere with navigational decisions made by the master in the interests of safety.

Answer 184

To look after the needs of his principal's ship and its crew during their stay in port. The agent should: (1 ) aim for the quickest possible turn-round with maximum efficiency and minimum cost; (2) assist the master in his dealings with officials; (3) procure provisions, stores and other requirements; and (4) communicate messages between owners/time charterers and the master.

Answer 185

If the shipowner is paying the agent's fee, he will normally be the principal, regardless of whether a charterer or other party has nominated the agent.

Answer 186

To ensure that the agent employed will suit the charterer's particular interests. It is commonly agreed in time charters that the charterer (who controls the commercial operations of a time-chartered ship) will nominate a particular agent to be appointed at a port, while the shipowner will pay the agency fee.

Answer 187

(1) Remind him of his primary responsibility to the ship; and/or (2) advise the owners to appoint a husbandry agent (i. e. another agent whose duties would be solely to look after the ship's business and not the cargo operations).

Answer 188

(1) On liner services (e. g. mainline containerships, deep-sea ro-ros and multi-purpose ships); (2) in voyage and time charter markets (e. g. oil tankers, chemical tankers and LPG carriers, dry bulk carriers and offshore supply vessels, etc.).

Answer 189

(1) Liner vessels trade on liner terms, i. e. bill of lading terms. The carrier's standard terms and conditions are stated in his bill of lading which he issues to each shipper of goods. (2) Bulk carriers and deep-sea tankers generally trade on charterparty terms, whether a bill of lading is issued to the shipper or not. (3) Passenger ships carry passengers on the carrier's standard terms and conditions, which are usually available for inspection on request and are displayed at the carriers offices.

Answer 190

Shipbrokers. Owners' brokers find cargoes for their principals' ships, and charterers' brokers find ships to carry their principals' goods.

Answer 191

A fixture. A vessel is said to be fixed to a particular charterer. Representative fixtures are reported in shipping journals such as Lloyd's List and Fairplay.

Answer 192

The terms and conditions of an agreement. A contractual term may be either an express term or an implied term, and may also be categorised as either a condition or a warranty. Some contract terms are innominate terms ('innominate' meaning 'without a definitive name'). In many cases whether a term is a condition or a warranty is obvious, but in other cases it is not. Since breaches of condition and breaches of warranty have different legal consequences, the correct categorisation of a contractual term is useful to know before the obligation is carried out.

Answer 193

A contractual term which has been agreed to by the parties in words, either in writing or orally.

Answer 194

A contractual term which is not agreed to by the parties in words, but which is deemed to exist in the contract either because the courts regard it as necessary to give effect to the presumed intentions of the parties, or because of some statutory requirement.

Answer 195

An important contractual term going right to the root of a contract, and so fundamental that breach of the condition by one party would give the injured party the right to treat the contract as discharged. E. g. it is a condition in any voyage charter that the chartered vessel will arrive and be fully at the charterer's disposal at the agreed loading port not later than the cancelling date and that she can load and carry the agreed cargo.

Answer 196

A contractual undertaking made by one party to the other. E. g. in a charterparty the shipowner might warrant that his ship will be classed with a certain society and that class will be maintained, while the charterer might warrant that he will not load dangerous or hazardous cargoes. Warranties are less important than conditions, and do not go right to the root of the contract, so that breach of a warranty will not frustrate the whole contract.

Answer 197

The right to treat the contract as having been discharged (i. e. to repudiate the contract), and to sue to recover damages to compensate him for any obligations already performed. Alternatively he may affirm (i. e. continue to perform) the contract, and recover damages to compensate him for the breach.

Answer 198

The right to sue to recover any damages. He has no right to repudiate the contract (i. e. to treat it as having been discharged).

Answer 199

Standard terms are clauses printed on the charterparty form. Side clauses are typed clauses inserted in a standard contract, often amending the standard terms. Rider clauses are typed clauses containing additional terms agreed by the parties and normally added at the end of the standard terms. Addenda documents may contain sensitive clauses that the parties do not want to be in the main charterparty document for reasons of security. A side letter may be appended concerning matters relating to the contract, such as charterers' instructions to the master.

Answer 200

A person (or company, e. g. a shipowner) who agrees to carry goods or persons from one place to another.

Answer 201

In law there are two kinds of carrier: (1) common carrier and (2) private carrier.

Answer 202

A carrier who is subject to the common law obligations and who is strictly liable for any loss of or damage to the goods he carries, effectively making him the insurer of the goods whilst in his care. Common carriers don't have very much protection from liability.

Answer 203

No. Many cargo shipping services are operated by 'non-vessel-owning common carriers' (NVOCCs). The carrying ships are owned by other parties, but the contract of carriage is between the carrier and the shipper.

Answer 204

(1 ) To provide a vessel which is seaworthy for the purpose of the contract (when the contract is made). (2) The carrier's vessel must not deviate from the contract route or the usual route unjustifiably. (3) To ensure that the vessel will be ready to load the cargo and proceed on the voyage with reasonable despatch. These obligations are implied conditions and need not be expressed in the contract. Even so, they are often included in printed conditions of carriage on bills of lading, etc.

Answer 205

(1) Act of God; (2) act of Queen's enemies; (3) inherent vice in the goods; (4) negligence of the consignor; (5) fraud of the owner or consignor of the goods; (6) jettison or other proper General Average sacrifice.

Answer 206

Some unforeseen and unpreventable natural event, e. g. lightning or earthquake.

Answer 207

A state or people with whom the carrier is at war during the carriage of the goods (but excluding robbers, rioters and pirates).

Answer 208

A natural tendency of a commodity to deteriorate without human negligence, e. g. deterioration of fruit and fish, fermenting of liquids, loss of weight in hides due to evaporation, severe pitting of steel plates not due to atmospheric rusting.

Answer 209

Negligence of the shipper or sender of the goods, e. g. where insufficient or defective packing of goods inside containers or cases leads to damage.

Answer 210

For example, where the shipper makes an untrue statement to the carrier as to their nature or value, or their threat to safety as well as (for sea carriers only).

Answer 211

When cargo is intentionally and properly destroyed or damaged during the voyage in order to preserve the ship and other cargo from a danger threatening the entire 'adventure'.

Answer 212

When the true cause of the loss or damage to the goods was: (a) his negligence, e. g. in not taking reasonable steps to protect cargo from loss or damage; (b) his vessel was unseaworthy at the start of the voyage; or (c) the loss or damage occurred while the vessel was unjustifiably deviating.

Answer 213

A carrier who restricts his strict liability by contracting out of his common law obligations. He does this by expressly stating his special terms of carriage, usually in a document such as a bill of lading (in some cases, as in passenger tickets, only stating where his terms of carriage may be obtained). The vast majority of shipping companies make themselves private carriers in order to restrict their liability.

Answer 214

His conditions of carriage must be clearly stated to the shipper. (Most carriers print their terms on their 'house' bill of lading or other contract of carriage document. ) His terms must be fair; if a court holds that his contract terms were unreasonable or unfair, a private carrier may find himself reverting to the position of a common carrier, and losing the benefit of the exceptions from liability that he has inserted in his contract (other than the 'common law exceptions').

Answer 215

All of the common law exceptions, plus others such as loss, damage or delay resulting from: pirates; thieves; arrest or restraints of princes, rulers or people; riots; insurrections; barratry - to name but a few.

Answer 216

Seaworthiness has three aspects: (1 ) technical seaworthiness, relating to the vessel's design, condition of her hull and machinery, and her stability, etc.; (2) 'cargoworthiness', relating to her suitability for the intended cargo and the condition of her cargo spaces; and (3) fittedness for the intended voyage' (or Voyage-worthiness'), relating to her equipment (including charts), safe manning, bunkering and stores for the intended voyage. Charts must be corrected up to date, crew must be properly qualified, etc. if a claim of alleged unseaworthiness is to be successfully defended by the carrier.

Answer 217

The vessel must be fit to encounter the 'ordinary perils of the sea' (e. g. bad weather) and other incidental risks to which she will be exposed on the voyage. The common law recognizes that owners cannot guarantee their vessels' seaworthiness once they have left port, so this obligation is imposed only at the start of the voyage, i. e. when the vessel leaves the berth either under her own power or under tow. Under the doctrine of stages, seaworthiness at each stage of the voyage, e. g. in dock, in a river, in an estuary, must be considered separately.

Answer 218

If, for example, she sailed without valid statutory certificates or a valid Certificate (or Interim Certificate) of Class; if her holds were not properly fitted for the cargo (e. g. ventilation system not working, no dunnage, no fire-fighting agent); if her cargo was not property stowed or secured; if she had an improperly qualified master or officers; if she did not carry appropriate (and corrected) charts for the voyage; or if she had insufficient bunkers for the voyage.

Answer 219

To decide matters in dispute between two parties to a shipping-related contract (e. g. a charterparty), as an alternative to litigation.

Answer 220

(1 ) Privacy (in London); (2) more convenience; (3) greater speed of settlement; (4) less formality; (5) expert knowledge of arbitrators; (6) lower costs.

Answer 221

In an Arbitration Clause in the charterparty. This may define where the arbitration is to be held, how many arbitrators there must be and what type of persons they are to be (e. g. Shipbrokers), and whether an umpire is to be appointed in the event that they cannot agree, etc.

Answer 222

London, New York and Paris.

Answer 223

American arbitrations may be published (see examples in Fairplay), which might deter some shipping parties. London arbitrations, on the other hand, are usually kept private. Shipping people often don't want their disputes made public.

Answer 224

An agreement between a charterer on the one hand and a shipowner, disponent owner or carrier on the other hand, for the carriage of a specified (and often large) quantity of named goods between specified places, over a specified (and usually long) period of time, by vessels of a type and size specified by the charterers, but which are nominated by owners.

Answer 225

A contract of carriage by sea, e. g. a charter agreement or the contract expressed in a bill of lading.

Answer 226

(1 ) To provide a seaworthy ship suitable to carry the intended cargo; (2) to bring the ship to the agreed loading port by the agreed date; (3) to load the agreed cargo; (4) to carry the cargo to the agreed destination; (5) to discharge the cargo. He must pay both the ship's running costs and the voyage costs, with the possible exception, where 'free in and out' (FIO) terms are agreed, of loading and discharging costs.

Answer 227

(1 ) To provide the agreed cargo at the agreed loading port; (2) to load the cargo within the agreed period of laytime; (3) to pay the agreed rate of freight at the agreed time. Where 'free in and out' (FIO) terms are agreed he must pay the loading and discharging costs.

Answer 228

The shipowner is generally responsible for both running costs and voyage costs, except where 'free in and out' (FIO) terms are agreed, in which case the charterer pays all cargo-handling costs at each end.

Answer 229

The costs of loading ('in') and discharging ('out') are free to the shipowner - i. e. the charterer will pay the loading costs and the consignees (or the charterer) will pay the discharge costs. In return, the charterer is usually entitled to a reduced freight rate. 'Free in and out' is the usual agreement in bulk shipping charterparties, since bulk charterers are most often in a position to control the loading and discharge costs (many also being terminal owners).

Answer 230

(1) The loading port or ports; (2) the laycan period; (3) the cancelling date; (4) requirements for tendering notice of readiness on arrival, including whether notice of readiness can be tendered when not in berth or in port, etc.; (5) the 'turn time' or 'notice time' allowed to charterers before laytime commences; (6) the period of laytime agreed, or if no definite period is stated, how laytime is to be determined; (7) the period allowed on demurrage; (8) the cargo to be loaded, including any margin allowed and in whose option (charterers' or owners'?); (8) any special instructions of owners or charterers (e. g. requirements re- cargo temperature, sending messages, etc. ); (9) the discharge port or ports; and (10) whether I am required as master to issue bills of lading.

Answer 231

Not usually. The charterparty will probably have been drawn up some weeks or days before the ship must load the cargo. The date of the charterparty is normally at the top of the first page of the document.

Answer 232

The voyage to the loading port. When the vessel is fixed (i. e. the charterparty is drawn up), perhaps some weeks earlier, the ship is usually somewhere other than the loading port, employed on another contract. The first contractual obligation of the owners is to bring the ship to the agreed loading port, not later than the cancelling date.

Answer 233

A standard protecting clause, recommended by P&l clubs, which allows the vessel to deviate off her contract route to take advantage of cheap bunker prices obtainable at ports near oil producing centres, allowing the vessel to take full 'roundtrip' bunkers.

Answer 234

A clause inserted in charterparties under which a bill of lading is required to be issued, having the effect of incorporating into the contract of carriage one of three international conventions setting out minimum terms and conditions out of which the carrier cannot contract, i. e. the Hague Rules, the Hague-Visby Rules or the Hamburg Rules.

Answer 235

The agreed rate for carrying the cargo. In deep-sea trades it is usually in US dollars. In coastal trades it may be in a local currency. (In the USA, the word freight' means goods or cargo.

Answer 236

In voyage charters, normally before delivery of the cargo at the discharge port, but it may be partially or wholly payable in advance of carriage. In the liner trades it is normally pre-paid by the shipper and the bill of lading is marked accordingly.

Answer 237

A rate charged to charterers for cargo agreed for loading but not shipped.

Answer 238

A port which the vessel can safely reach, enter, stay at and leave without any requirement other than normal good seamanship. There must be safe access and the port must be free from permanent obstruction. The vessel must be able to lie safely afloat at all states of the tide, unless it is customary and safe to load and/or discharge aground or there is specific agreement that she will do so. There must be adequate facilities for trade, including a safe shore landing of goods, proper wharves, warehouses and other establishments for dealing with the kind of cargo contemplated. It must be a politically safe port, free from any state of war or embargo. The ship, having reached the port (and discharged her cargo), must be able to leave without lowering or cutting her masts.

Answer 239

Inability of a ship to reach, stay at or leave a loading berth safely for some reason, e. g. insufficient depth of water, berth obstructions, ice, war, general strike, civil insurrection, quarantine restrictions.

Answer 240

To refuse to enter. Unless there is specific agreement to the contrary, I am always entitled to refuse to enter a port which my vessel cannot safely reach without first lightening in a roadstead or other port, even if it is a customary method of discharge at the port. I would note protest at the first opportunity. (Neap tides would not make the port 'unsafe'. )

Answer 241

A berth which is safe in the same respects as a safe port. My duty as master is normally to ensure the berth is safe and to refuse to go to an unsafe berth even if ordered to do so.

Answer 242

The period of days during which the ship must present herself at the loading port, and during which charterers are obliged to accept the ship for loading. Laydays should not be confused with laytime.

Answer 243

The final layday after which, if the ship presents herself at the loading port, charterers have no obligation to load the cargo.

Answer 244

The laydays and cancelling date. For example, a lay/can of '18/22' would mean that the first layday is the 18th of the month, and the final layday, or cancelling date, is the 22nd.

Answer 245

The period of time agreed between the shipowner and charterer during which the owner will make and keep the ship available for loading and/or discharging without payment additional to the freight. Laytime is measured in days, hours and minutes, and can be considered as a 'reservoir' of time that is gradually used up by the charterer.

Answer 246

(1) The vessel must be an 'arrived ship'; (2) she must be fully ready to load or discharge (as the case may be); and (3) notice of readiness must have been tendered in accordance with the Charterparty.

Answer 247

A ship which has reached the required place (i. e. port or berth) under the terms of the Charterparty, and is fully at charterers' disposal. (The Charterparty may allow her to become an 'arrived ship' even though she is not in the port, in the berth, in free pratique, or customs cleared. )

Answer 248

By checking the wording of the Charterparty to see if it is a 'port Charterparty' or a 'berth Charterparty', and checking the ship's position. If a port is defined as the place for loading, without stipulating a particular berth, the Charterparty is a 'port Charterparty' and it is unnecessary to be on a particular loading berth to be an 'arrived ship'; all delays in berthing will be for charterers' account. If a particular berth is defined as the loading place, the Charterparty is a 'berth Charterparty' and the vessel becomes an 'arrived ship' only when she has reached the named berth. Owners prefer 'port charterparties'.

Answer 249

Ready both physically and legally, i. e. with hatches prepared for receiving the cargo, the vessel cleared customs and other formalities, any required survey carried out and passed.

Answer 250

Owners can insert a Waiting for Berth Clause in the Charterparty, or the words 'whether in berth or not', 'whether in port or not' or another protecting phrase in the Laytime Clause to make it clear that time can count as laytime once the vessel is at the customary waiting place. The following abbreviations are often used for these protecting phrases: w. i. p. o. n. ('whether in port or not'); w. i. b. o. n. ('whether in berth or not'); w. c. c. o. n. ('whether customs cleared or not'); w. i. f. p. o. n. ('whether in free pratique or not").

Answer 251

Notice given to the charterer, shipper, receiver or other person as required by the Charterparty that the vessel has arrived at the port or berth and is ready to load or discharge, as the case may be. Laytime usually commences on the expiry of some specified number of hours, variously called 'notice time' or 'turn time', during which the charterer, etc. can make preparations for the ship's cargo operations.

Answer 252

As soon as possible, on a day within the 'laycan' period (i. e. the laydays), in accordance with the procedure stated in the Notice Clause or Laytime Clause in the Charterparty. This may require that notice be tendered only during office hours, and particular care must be taken by the master only to tender in strict accordance with the clause.

Answer 253

By delivery of a printed form or letter, or by telex, fax or cable, unless the Charterparty provides otherwise. Charterers' or owners' notice of readiness forms are often pre-printed for masters to use, but if necessary I would write and send my own notice in duplicate, with a note that the second copy, with the time and date of receipt completed, should be returned for the ship's retention.

Answer 254

To charterers or their agent, not to the shipowners' port agent, although it may be sent via the owners' agent.

Answer 255

I would: (1) make daily attempts to have the notice accepted; (2) send a Letter of Protest to charterers or their agent; (3) consult owners' P&l club correspondent; (4) note protest as soon as possible.

Answer 256

The charterparty will normally state that laytime will commence a specified number of hours after notice of readiness is given or accepted, but if it is not stated, laytime will commence as soon as notice of readiness is given.

Answer 257

Some charterparties state that if notice is not given before Saturday noon or 1 pm, it may not be tendered again until the start of office hours on the next office working day, which will usually be Monday. It may also be stated that laytime will commence on the morning after notice of readiness is given, which would mean Tuesday. Even so, charterers may start cargo operations during the weekend, i. e. before laytime starts. Thus, a few minutes delay in tendering on a Saturday morning could mean that charterers get the benefit of 3 days' 'free' time at owners' expense.

Answer 258

The notice given will be invalid, and a new notice will have to be given once the holds have been further prepared and pass another survey.

Answer 259

A sum of liquidated damages which becomes payable by charterers to owners for each day, or part thereof if stipulated, that the ship is detained beyond the time of expiry of laytime. A Demurrage Clause may state the number of days and the rate payable, usually in US dollars per day. Demurrage is normally paid per running day, i. e. without exclusion of any Sundays, holidays, or bad weather, strikes, etc., occurring during the detention period - hence the well-known expression 'once on demurrage, always on demurrage'.

Answer 260

A sum of damages awarded to owners who successfully sue charterers for unreasonably detaining their ship beyond a reasonable demurrage period. There may be a maximum number of days allowed on demurrage, which if exceeded allows owners to claim their actual losses caused by the delay, i. e. damages for detention, which will normally be more punitive than demurrage. Owners would have a claim for damages for detention, for example, where an extended delay on one charter prevented them from taking up a second charter on which their ship had been fixed on the assumption that she would be available by then.

Answer 261

A monetary reward, normally payable by owners to charterers, for completion of cargo operations within the agreed laytime period. Early completion may give owners an opportunity to complete the voyage early and fix the vessel on another charter, and is obviously also to charterers' benefit. The rate for despatch is stated in the Demurrage and Despatch Clause and is usually half the demurrage rate for all time saved, which means that the laytime exclusions (for weather, etc. ) are not taken into account after the completion of cargo. If for working time saved, laytime exclusions must be taken into account.

Answer 262

An extract from the port operations log kept by the port agent and signed by all parties involved (master, stevedore, agent, etc. ). It contains times of all main events surrounding the vessel's cargo operations in port, such as arrival, tendering notice of readiness, commencement of laytime, weather stoppages, etc. From these facts the Laytime Statement can be compiled.

Answer 263

A signed document on which the agent has made a calculation of the amount of demurrage or despatch owed to either owners or charterers respectively, as the case may be, using the facts in the Statement of Facts. The Laytime Statement (sometimes confusingly called a Laydays Statement) is submitted to both owners and charterers. Several layouts are in use including a BIMCO-recommended format and various charterers' house styles, each slightly different but containing the same essentials, these being columns for: Day; Date; Time or Hours worked; Remarks; Laytime used; Time saved or time on demurrage. Space is left at the foot for despatch or demurrage calculations.

Answer 264

Not necessarily. The cargo may lie in a terminal, e. g. a stockyard, tank farm, car parking lot, container compound, etc. and still constructively be in the carrier's possession. Goods are not delivered until they are handed over to the receiver.

Answer 265

The party authorised to collect the goods from the carrier. He may be the consignee himself, or an agent of the consignee.

Answer 266

There may be an agreement in the charterparty for an extra payment to be made by charterers to owners each time the crew sweep and/or wash down the holds. The same would probably apply for lashing a ro-ro or container cargo, etc. If charterers require ship's crew to do extra work for their purposes, they probably say.

Answer 267

Log books and stationery may be provided by charterers so that they can monitor the vessel's efficiency. Stevedoring damage notification forms and log extracts will be required to be sent to charterers.

Answer 268

For the same reasons as a person hiring a motor vehicle would stipulate what type, size, power, etc. of vehicle he wanted for the hire period. Time charterers require a hired vessel for a specific purpose, and it must generally closely match their technical requirements.

Answer 269

A Statement of General Particulars including classification, dimensions, tonnages (GT, NT, DWT), constant weight, draughts, grain/bale cubic capacity of holds/tanks, dimensions, speeds (laden/in ballast), consumptions of FO and DO (laden/in ballast/in port working/idle), type of engines, fuel used, call sign, etc. For special ship types other specialist information will be required, e. g. lane and ramp details of a ro/ro ship.

Answer 270

General arrangement (GA) and capacity plans. In tanker time charterparties, drawings of the cargo manifold, pumping arrangement and ventilation system, pump characteristic curves, etc.

Answer 271

Speed and fuel consumption are vitally important for determining whether the vessel is performing the contract efficiently and whether charterers are entitled to claim for alleged under-perfomnance. (This is a frequent subject of dispute, as modern bunker prices fluctuate greatly. )

Answer 272

It depends on the type of ship. For a bulker, for example, her deadweight carrying capacity (DWCC) and deadweight all told (DWAT). For a ro-ro ship, her lane-metres. For a containership, the number of slots (t. e. u 's) and reefer slot numbers. They are also interested in the declared 'constant weight' (a fixed tonnage allowed for water, stores, provisions, spares, etc. ).

Answer 273

At common law, the vessel provided must be seaworthy for the purposes of the contract (when this is agreed), thereafter, owners usually agree only to exercise 'due diligence' to make the vessel seaworthy for each voyage during the charter period.

Answer 274

Probably, an undertaking by owners to maintain the vessel in good condition throughout the charter period. Owners may be required to keep the vessel in the condition she was stated to be in when the contract was made, e. g. to 'LR class 100A1 or equivalent'. Some time charterparties require owners to 'exercise due diligence to make the vessel tight, staunch, strong, in good order and condition, and in every way fit for the service, both before, at and throughout the time charter period, taking whatever steps are necessary to so maintain the vessel, even if the cause of repairs and/or additional maintenance result from a cause for which owners are not directly responsible'.

Answer 275

There will usually be a Drydocking Clause and a Maintenance Clause allowing the vessel limited periods off-hire for essential maintenance and surveys.

Answer 276

It depends on the agreement in the charterparty. Period charterers will probably be allowed to fly their own house flag or even paint their own colours on the funnel and/or sides, but this may not be important to them.

Answer 277

It is usually agreed that charterers employ the vessel only in lawful trades, carrying lawful merchandise, using only 'safe ports or berths' and sometimes 'safe anchorages' where the vessel can 'safely lie always afloat'. Ice-bound and other 'unsafe' ports are usually excluded unless owners agree otherwise. No lightening at sea is normally allowed without the permission of underwriters, since this is usually outside terms of the Hull and Machinery policy.

Answer 278

Any country where a port call may bring increased financial or other risks (e. g. of detention) to the shipowner, or a risk of the ship being subsequently barred from another country's ports, e. g. Israel, Persian/Arabian Gulf, Cuba, Vietnam, Kampuchea, North Korea, Lebanon, Angola, Namibia, Syria, Libya, Somalia, Ethiopia and South Africa.

Answer 279

By prohibiting the time charterer from sending the vessel to countries regarded as ITF 'strongholds', i. e. Scandinavian and Australasian countries.

Answer 280

Worldwide within Institute Warranty Limits'. This prohibits the vessel from entering the major areas of the world prone to icing, and from carrying Indian coal during a specified period within a defined zone.

Answer 281

Generally, certain commodities which may be injurious to the ship, such as bulk asphalt, pitch or tar, livestock, logs, acids, scrap, sulphur, petroleum coke, explosives, fishmeal and nuclear materials are expressly prohibited as cargo. Otherwise, the vessel may load 'any lawful merchandise'.

Answer 282

At common law, charterers are under an implied obligation not to load any dangerous cargoes, but most charterparties state that charterers may load certain dangerous goods if various statutes and regulations (e. g. the IMDG Code) are complied with.

Answer 283

The vessel goes on hire when she is delivered to charterers. Owners must deliver the vessel at the agreed place in a fit condition for the employment contemplated. Delivery may be at a named geographical location, e. g. 'passing Cape Passero', or at a specified event, e. g. taking inbound pilot (TIP) New York', or 'dropping outward pilot (OOP) Hong Kong'. Delivery will be required either 'spot' (immediate) or between stated laydays for presentation of the vessel. If the vessel is not presented by the final layday (i. e. the cancelling date), charterers have the option of cancelling the charter, as with a voyage charter. Time charters most often commence with a ballast voyage to a loading port, so that 'dropping outward pilot...... ' at the last discharging port is frequently stated in the charterparty as the place for delivery. On delivery, an on-hire survey will often be required (see below).

Answer 284

Continue with all despatch to the delivery place, checking the charterparty for instructions. A Cancelling Clause may require charterers to declare whether they will exercise their option to cancel.

Answer 285

Before taking a vessel on charter, a prospective charterer - especially an oil company and a charterer hiring older tonnage - may require a thorough condition survey to be made. Having hired a vessel, in most cases, an on-hire or delivery survey will be required. In some cases, however, there is no survey of any kind.

Answer 286

To establish (1) bunkers r. o. b. (to establish the quantity charterers will have to pay owners for); (2) general condition of the vessel; and (3) that tanks/holds are fit for the carriage of the contemplated cargoes. The surveyor will note any existing damage in holds/tanks. Holds of a dry cargo vessel must be dry and swept clean, etc., and tanks for oil or chemicals must pass survey and be certified fit. Time spent on the survey is normally at the owner's risk, i. e. the vessel is not 'on-hire' until after the survey.

Answer 287

Usually, jointly-approved surveyors, paid for 50/50 by owners and charterers.

Answer 288

A Bunker Clause may require a certain quantity of fuel to be on board at delivery, with approximately the same quantity to be on board at redelivery, and in any case enough to reach the next bunkering port. The charterparty will provide for cash settlement of the balance, so that effectively charterers buy any bunkers r. o. b. at delivery from the owners and sell back to owners at redelivery.

Answer 289

A Delivery Certificate confirming the date and time of hand-over, bunkers r. o. b. (and perhaps boiler water r. o. b. ), and condition of holds/tanks. The certificate should be attached to the condition survey report and is vital for the assessment of hire payments due and the commencement of various charterers' liabilities.

Answer 290

Charterers must normally to re-deliver the vessel in the 'same good order as when delivered to Charterers, fair wear and tear excepted..... ' at an agreed port or place and at the agreed time, with the agreed amount of fuel remaining on board.

Answer 291

Charterers

Answer 292

Yes, if agreed. - A sum in compensation to the owners will normally be provided for in the charterparty.

Answer 293

An off-hire survey carried out by independent surveyors to ascertain the extent of damage done during the survey, and bunkers r. o. b. A Redelivery Certificate should be issued by the surveyor.

Answer 294

The charterparty may require owners to investigate complaints by charterers regarding the master or officers, and 'replace them' if requested.

Answer 295

Although employed as a servant of the owners, the master is always under the time charterers' orders as far as the employment of the vessel and agency matters are concerned. He must accordingly prosecute the voyage with 'utmost despatch' and give charterers 'customary and reasonable assistance' with the crew and ship's equipment. Charterers may only give master orders regarding employment of the vessel, and not regarding navigation, safety, etc. (If the master did obey charterers' order regarding navigation and loss or damage occurred, owners would be liable, with no recourse from charterers. )

Answer 296

Port agents are normally nominated and appointed by the time charterer (unlike the case in voyage charters or in the liner trades). However, the shipowner generally pays for the agent's services. A Consignment Clause will sometimes state that 'the vessel is to be consigned to charterers' agents for inward and/or outward business'. If the ship must use the charterer's preferred agent, owners must pay for the agent's services.

Answer 297

As the master is under the time charterer's orders regarding employment and agency, the charterer's port agents have the right to sign bills of lading on behalf of the master, and the master is usually required to sign a form permitting agents to do this.

Answer 298

Unless owners appoint their own protecting agent or husbandry agent, time charterers' agent should also look after owners' affairs, e. g. crew reliefs and repatriation, subs, etc. He will be paid for this under a Disbursements Clause.

Answer 299

If charterers insist on issue of their own house bill of lading forms, the contract of carriage will normally be between the charterers and the shipper, and the terms printed on the bill of lading should make clear who the carrier is. If a time-chartered ship issues a bill of lading using her owners' own bill of lading form and without mention of the fact that the vessel is time-chartered (e. g. in a statement that 'all terms and conditions of carriage are in the relevant Charterparty dated..... '), the contract of carriage may be deemed to be between the owners and the shipper.

Answer 300

Assume that owners are legally the carrier and take care of the cargo and documentation accordingly, issuing a ship's bill of lading if necessary.

Answer 301

The charterparty may provide for a supercargo to be carried to oversee charterers' interests during the voyage. The usual agreement is that his meals will be paid for by charterers, so I would keep records of supercargo's meals provided.

Answer 302

A Suspension of Hire Clause will usually be included in the standard charterparty clauses, providing for hire to cease after the vessel has been unavailable to charterers for a specified period of time, e. g. 24 or 48 hours, because of machinery breakdown, winch breakdowns, crew strikes, hull damage, drydocking or other reasons not beyond owners' control. In the case of a ro-ro ferry the time is likely to be very much less than 24 hours - perhaps just an hour.

Answer 303

A Drydocking Clause will usually be included in the charterparty providing for the vessel to be made available to owners free of cargo after a stated period of notice for cleaning, painting, survey, routine repairs and maintenance. During this period she will be off-hire.

Answer 304

When deviating for owners' purposes, such as this, the vessel will be off-hire from the moment of the deviation until ready to resume service in a position no less favourable to charterers.

Answer 305

The exact times, positions and fuel situations (1) when you deviated and (2) when you rejoined the route. A deduction from hire is calculated on the basis of fuel used in the deviation, including FO and DO at the port deviated to. But if the deviation is for charterers' purposes, e. g. stress of weather, the vessel will remain on hire.

Answer 306

A contract for the lease of a vessel for an agreed period during which the charterer acquires most of the rights of the owner. It is more of a ship financing arrangement than a trading agreement.

Answer 307

Basically the vessel owners put the vessel, without crew, at the complete disposal of charterers and pay her capital costs, but (usually) no other costs. Charterers have commercial and technical responsibility for the vessel, and pay all costs except capital costs. Bareboat charterers become 'disponent owners' under the charterparty.

Answer 308

Banks or finance houses who are not prepared to operate or manage ships themselves, or some other shipowner.

Answer 309

A bareboat charter hinged to a management contract, so that the shipowners manage the vessel on behalf of the bareboat charterers. This is useful to charterers (such as an oil company) who don't want to spend extra money on increasing their ship management team.

Answer 310

BARECON 89, which is a BIMCO document.

Answer 311

It may be hinged to a purchase option after expiry of the charter or during the hire period. (Hire payments may include instalments of the purchase price, and transfer of ownership may follow the final instalment. Many permutations are possible. )

Answer 312

Article 3 of the Hague Rules and Article III of the Hague-Visby Rules require the carrier to '... properly and carefully load, handle, stow, carry, keep, care for, and discharge the goods carried. ' This means the ship must maintain proper procedures in relation to the care of the cargo, including usual seamanlike practices such as operating ventilation systems properly and sounding bilges regularly, and also includes any special measures that may be required for the care of particular commodities or items.

Answer 313

For a 'problem' bulk cargo, in the BCH Code. Charterers or the shipowners may have issued instructions concerning the particular cargo. The owners' P&l club may publish loss prevention literature on the commodity (e. g. the UK Club's Carefully to Carry booklets and brochures). The P&l club managers should be able to give advice about any 'problem' cargo. A textbook (e. g. Thomas's Stowage) may have advice, although it should be checked for validity.

Answer 314

At all times.

Answer 315

'For deck carriage'.

Answer 316

When there is a statement on the face of the bill of lading issued to the shipper that the goods are stowed on deck, and the goods are, in fact, stowed on deck.

Answer 317

Because of the special risks to which cargo stowed on deck are exposed.

Answer 318

At shipper's risk.

Answer 319

Make a special agreement with the carrier (I. e. a contract which will not be governed by the carrier's standard terms, conditions and exceptions).

Answer 320

'Shipped on deck at shipper's risk'. Any innocent transferee of the bill of lading acting in good faith (i. e. a third party obtaining title in the cargo by transfer of the bill of lading) will then know the risks attaching to the goods he is gaining title to. (It would not be fair to transfer a bill of lading in respect of deck cargo without declaring to the transferee that the goods to which he has obtained title are on deck and may therefore be exposed to sea water damage. )

Answer 321

(1 ) If cargo which should have been stowed under deck is stowed on deck; or (2) if a bill of lading in respect of cargo which should have been shipped on deck does not clearly mention the deck carriage on its face.

Answer 322

To cover the deck cargo by an 'on deck' bill of lading expressly recording the deck stowage, and to insert (i. e. stamp) on the face of the bill of lading a clause disclaiming liability for loss or damage, howsoever caused.

Answer 323

The deck carriage would be a fundamental breach of contract similar in gravity to an unlawful deviation. The carrier would have no defences to a claim for loss or damage, and he would not be indemnified by his P&l club.

Answer 324

No - it may be a fundamental breach of the contract to stow cargo in an unsuitable place on deck. The place of stowage on deck is important. The bus should not be stowed in an exposed place, especially on the fore deck.

Answer 325

The company, as carrier, should incorporate a suitable liberty clause permitting on-deck stowage at the carrier's option. This is recommended by the P&l clubs even when the custom of the trade permits on-deck stowage, e. g. when closed containers are carried on purpose-built container ships. The purpose of these clauses (which are nevertheless ineffective in a few jurisdictions which don't follow the generally accepted principles of maritime law) is to ensure that the carrier has a contractual right to stow cargo on deck at his option. However, the clause must be used reasonably, and cannot be used to justify deck stowage for cargo which is unsuitable for deck stowage.

Answer 326

Even when there is no express or implied agreement for under-deck stowage, it may well be a fundamental breach of the contract of carriage to stow cargo on deck which is not suitable for on-deck carriage. Goods are not suitable for deck carriage if they are not packed in such a way as to be protected from contact with sea water which could occur during the voyage and which, if it did occur, would inevitably or probably cause damage to the goods. For example, sensitive machinery transported in a flat or open-top container should not be carried on deck.

Answer 327

As being equivalent to underdeck carriage of goods. Container line bills of lading therefore usually give the carrier the option of stowing the cargo either on or under deck.

Answer 328

As the carriage of ordinary deck cargo. The bill of lading should therefore be property claused for deck stowage and/or a proper liberty clause should be inserted in it.

Answer 329

Unless the cargo is carried on deck in accordance with a recognised custom of the trade, e. g. it is a timber deck cargo or containerised cargo, the cargo owner will have no claim under the York-Antwerp Rules to a General Average contribution from the other parties to the adventure.

Answer 330

If deck cargo is saved by a General Average act (e. g. the refloating of a grounded ship), the owner of the deck cargo will be liable to make a General Average contribution along with other parties to the adventure who have benefited from the General Average act. carriers usually underline this by an express statement in their bills of lading.

Answer 331

If the jettisoned deck cargo had been stowed on deck without the shipper's consent or knowledge, the shipowner, apart from being liable for breach of contract, will be totally liable to the goods owner.

Answer 332

Goods classified in the IMDG Code or in any other IMO publication referred to in the Dangerous Goods and Marine Pollutants Regulations (e. g. the IBC Code and IGC Code) as dangerous for carriage by sea, and any other substance or article which the shipper has reasonable cause to believe might meet the criteria for such classification. They include residues in empty receptacles, empty tanks or cargo holds previously used for carrying dangerous goods unless cleaned, dried, purged, gas freed or ventilated as appropriate or, in the case of radioactive materials, have been both cleaned and adequately closed; and goods labelled, marked or declared as dangerous goods. They do not include ship's equipment or stores.

Answer 333

A substance classified as such in the IMDG Code, or as a noxious liquid substance in the IBC Code, and any other substance, material or article that the shipper has reasonable cause to believe might meet the criteria for such classification.

Answer 334

In the IMDG Code. They are indicated by the words 'MARINE POLLUTANT' and a symbol of a triangle containing a fish, with an overlaid cross.

Answer 335

With a triangle symbol containing a fish, with an overlaid cross.

Answer 336

That the ship meets the fire protection requirements of SOLAS and the MS (Fire Protection: Large Ships) Regulations with respect to fittings and equipment.

Answer 337

Only after any additional equipment has been supplied in accordance with the Fire Protection Regulations, as determined by the MCA surveyor. The DOC will not be issued until this is done, and until then the ship cannot carry DGs.

Answer 338

A Dangerous Goods Declaration or a Marine Pollutants Declaration, as appropriate. A combined declaration is allowed. The declaration can be made on a Dangerous Goods/Marine Pollutants Note.

Answer 339

A special Shipping Note for dangerous goods and marine pollutants which is commonly used in the liner and ro-ro trades. It replaces the Standard Shipping Note used for non-dangerous or -polluting goods. It should be presented by the shipper either to the carrier or the master, in return for which a bill of lading or sea waybill would normally be issued by the carrier.

Answer 340

(1) Proper shipping name of the goods; (2) class and division where applicable; (3) UN Numbers where allocated by the IMDG Code, (4) packaging or packing group where relevant; (5) number and kind of packages; (6) total quantity of dangerous goods or net explosive mass of the contents; (7) the words MARINE POLLUTANT where appropriate; and (8) any other information required by the IMDG Code; (9) date of preparation of document; (10) name, status and company or organisation of signatory. A Packing Certificate must be signed by the person who stowed the goods in their packaging (e. g. container).

Answer 341

That a special dangerous goods/marine pollutants list, manifest or stowage plan is carried in the ship. This, and any additional special documents required for the acceptance of goods for carriage must be kept on board and available for reference or inspection until the goods have been discharged.

Answer 342

This must set out details, obtained from the shipping documents submitted by the shipper, of the packaged goods on board including: (1) the correct technical name of the goods; (2) their classification in accordance with the IMDG Code; (3) their mass or volume; and (4) details of the stowage location in the ship. The information may be in one combined document relating to both dangerous goods and marine pollutants, or in separate lists. Combined lists must show clearly which goods are dangerous goods and which are marine pollutants.

Answer 343

For a copy of the dangerous goods manifest or stowage plan to be submitted to SAMSA prior to the ship sailing..

Answer 344

A specific list, manifest or stowage plan setting out the details, obtained from the shipping documents submitted by the shipper, of the dangerous goods or marine pollutants carried including: (1 ) the correct technical name of the goods; (2) their mass or volume; (3) where the dangerous goods are shown in Appendix B of the Bulk Cargoes Code, the classification as shown in the IMDG Code; and (4) the stowage location in the ship. The list, manifest or stowage plan and any additional special documents must be kept available for reference or inspection on board until the goods have been discharged.

Answer 345

Apart from oil pollution liability insurance for ships carrying 2000 tonnes or more persistent oil as cargo.

Answer 346

(1) Hull and machinery insurance; (2) P&l cover; and (3) employer's liability insurance.

Answer 347

By entering his ships with a P&l club. (The only 'third party' liability insured by Lloyd's or London insurance companies' underwriters is collision liability, but this is restricted to three-fourths of the liability, so the owner obtains cover for the remaining one-fourth from his P&l club. )

Answer 348

Through an insurance broker, from (1) underwriters at Lloyd's or (2) companies at the International Underwriting Association of London (IUA) or (3) a combination of both.

Answer 349

No. The insurance on a high-value vessel (or cargo) may be spread between several marine markets, including some abroad such as in New York, Hamburg or Tokyo.

Answer 350

Basically it is third party liability insurance, obtained from one of a number of P&l clubs.

Answer 351

Cover for: liability for damage done by his ship to a third party's property; liability for other third party' risks, e. g. cargo claims, personal injuries, pollution, wreck removal costs, etc. (called 'P&l risks'); liability for oil pollution claims; loss of earnings from strikes; loss of earnings from operation of war risks; loss of freight.

Answer 352

(1 ) Time policies, and | (2) voyage policies.

Answer 353

A policy for a stated period of cover, like a motor policy. Most ships are insured on time policies with the cover commencing at 0000 hours on a particular date and ending at 0000 hours 12 months later, although the period of cover may be of any agreed duration.

Answer 354

A policy for a stated period of cover, like a motor policy. Most ships are insured on time policies with the cover commencing at 0000 hours on a particular date and ending at 0000 hours 12 months later, although the period of cover may be of any agreed duration.

Answer 355

A policy with cover from one place to another. This type of policy is used mainly for goods insurance, although some ships, e. g. on delivery or scrapping voyages, may be insured for a single voyage.

Answer 356

Basically, a voyage. A 'marine adventure' occurs when a ship, cargo or 'other moveables' are exposed to maritime perils, i. e. are at sea or in port.

Answer 357

A promise by the assured that something will or will not be done, or that some obligation will be fulfilled. The assured may be required, for example, to warrant that his ship will trade only within Institute Warranty Limits. (A car driver may be required to warrant that he will only use his car for 'social, domestic and pleasure' purposes. )

Answer 358

Whereas in carriage of goods law breach of warranty only allows the injured party to sue for damages, in insurance law breach of a warranty gives the insurer the right to regard the contract as discharged, i. e. it has the same effect as a breach of condition in carriage of goods law.

Answer 359

(1) Indemnity; (2) insurable interest; and (3) utmost good faith.

Answer 360

To indemnify is to make good a loss suffered, not by replacement of the subject matter lost, but by a financial payment, i. e. to compensate.

Answer 361

As: 'a contract whereby the insurer undertakes to indemnify the assured, in the manner and to the extent thereby agreed, against marine losses, i. e. the losses incident to a marine adventure'.

Answer 362

An indemnity is for the value of the subject matter insured at the time of its loss, i. e. the insurers will place the assured in the same financial position as he occupied immediately prior to his loss. That is why insurers will assess the value of a 'written off car before paying a claim.

Answer 363

Because of the difficulty of putting a value on ships at sea or on cargoes in transit, they are valued at the commencement of the risk, and the insurers use that value to determine the measure of indemnity they will give the assured.

Answer 364

Where there is a total loss the measure of indemnity is 100% of the insured value. Where 50% of subject matter insured is destroyed, the measure of indemnity is 50% of the insured value, etc.

Answer 365

Any assured must have some legal relationship to the subject matter insured, and must stand to benefit by its preservation or lose by its loss or damage.

Answer 366

The insurable interest of an assured is limited to the amount which he actually stands to lose. The simplest form of insurable interest is ownership of the subject matter insured.

Answer 367

FOB, CIF and other contracts of sale define time of passing of risk (and of insurable interest) from seller to buyer. A carrier has an insurable interest in goods because of his liability to the goods owner. A shipper has an insurable interest in respect of any freight prepaid but not earned (e. g. if the vessel does not complete the voyage). The insurer of a subject-matter insured has an insurable interest in the risk he has written, allowing him to re-insure and spread the risk.

Answer 368

Yes. Under the Marine Insurance Act 1906 the master or any member of the crew of a ship has an insurable interest in respect of his wages.

Answer 369

Basically, honesty in declaring the facts about the subject matter to be insured. The assured must disclose to the insurer, before the contract is concluded, every material circumstance which is known to the assured.

Answer 370

It would be dishonest for a shipowner, for example, not to disclose that his 20-year old vessel had just failed her 5th special survey and had been rejected by a disreputable classification society. If the assured fails to make such disclosure, the insurer may avoid the contract.

Answer 371

Subject to the provisions of the Marine Insurance Act 1906 and unless the policy otherwise provides, an insurer is liable for any loss 'proximately caused' by a peril insured against, but, subject to the same conditions, he is not liable for any loss not 'proximately caused' by a peril insured against.

Answer 372

The most dominant and effective cause, not the nearest cause in time. For example, if a ship is scuttled, the proximate cause is the act of scuttling, although the nearest cause in time is seawater entering the ship. An assured who scuttled his ship might claim that a 'peril of the seas' was the cause of his loss, but the insurer would not be liable, since scuttling is wilful misconduct of the assured.

Answer 373

All goods shipped under bill of lading terms except for (1 ) live animals; and (2) cargo which is stated by the contract of carriage as being, and is actually carried on deck.

Answer 374

Every bill of lading relating to the carriage of goods between ports in two different states if: (1) the bill of lading is issued in a contracting state; or (2) the carriage is from a port in a contracting state; or (3) the contract contained in or evidenced by the bill of lading provides that the Hague-Visby Rules or the legislation of any state giving effect to them (e. g. the UK Carriage of Goods by Sea Act 1971) are to govern the contract. Many states have legislation incorporating the Hague-Visby Rules into national law. Where no such national law applies, the Hague-Visby Rules may still apply to the carriage by agreement of the contracting parties.

Answer 375

(1 ) To ensure the vessel's seaworthiness as far as reasonably possible; (2) to look after the cargo; and (3) to issue a bill of lading if the shipper wants one.

Answer 376

The carrier must, before and at the beginning of the voyage (i. e. up to the moment of sailing), exercise due diligence to: (1) make the ship seaworthy; (2) properly man, equip and supply the ship; and (3) make the holds, refrigerating and cool chambers, and all other parts of the ship in which goods are carried, fit and safe for their reception, carriage and preservation. (These requirements cover the 3 aspects of seaworthiness: technical seaworthiness, cargoworthiness and fittedness for the voyage. ) The vessel must be seaworthy only at the commencement of the voyage, which usually means when she leaves the berth, whether under her own motive power or with the aid of tugs.

Answer 377

Taking all reasonable precautions to see that the vessel is fit for the voyage contemplated. It could be argued that a shipowner who fails to check the qualifications of his ships' officers fails to exercise due diligence. The carrier is not obliged to give an absolute guarantee of seaworthiness. The carrier may delegate his duty to exercise of due diligence (e. g. to surveyors or repairers) but he will be responsible if they fail to exercise due diligence in carrying out their work.

Answer 378

The hull must be in sound condition, the vessel must be mechanically sound, equipped with charts, etc., and crewed by a property trained crew. The holds must be fit and safe for the reception, carriage and preservation of the cargo and, in particular, the hatch covers must be tight and there must be no instability of the vessel through improper stowage. It has been held that the neglect to protect a water pipe in a hold from frost which could have been expected at the time of year showed lack of due diligence to make the vessel seaworthy.

Answer 379

If a cargo owner can show that his loss was caused by a failure of the carrier to exercise due diligence to make the vessel seaworthy, the carrier will not be able to rely on any other clauses in the Hague-Visby Rules which reduce his liability (i. e. the exceptions to liability).

Answer 380

The carrier must 'property and carefully load, handle, stow, carry, keep, care for and discharge any goods carried'. Unlike seaworthiness, this duty extends throughout the voyage and implies greater care than 'due diligence'. The courts do not expect perfection from the carrier, but it has been held that stowage was improper where contamination of other goods occurred; there was inadequate or no ventilation; dry cargo was damaged by liquid goods; and vehicles were secured only by their own brakes. The carrier must have a sound system for looking after the cargo when stowed. He has a duty to use all reasonable means to ascertain the nature and characteristics of the cargo and to care for it accordingly, though the shipper should give special instructions where special care is required. (Where water in tractor radiators froze, it was held that the carrier should have been told of the risks. )

Answer 381

No - a greater degree of care. 'Properly and carefully' caring, etc. for the cargo means looking after it with the greatest degree of care and attention, as if it were the carrier's own property.

Answer 382

On receiving goods into his charge, the carrier, the master or the carrier's agent, if the shipper demands, must issue a bill of lading to the shipper showing, amongst other things: all leading marks for identification of the goods, as stated by the shipper before loading (in his shipping note or boat note), provided these are visible on the goods or their coverings; either the number of packages or pieces, or the quantity, or weight, as stated by the shipper (in his shipping note or boat note); and the apparent order and condition of the goods. Any bill of lading thus issued will be prima facie evidence of receipt of the goods by the carrier as described, but proof to the contrary will not be admissable if the bill of lading is transferred to a third party acting in good faith. Any bill of lading issued after loading must be a 'shipped' bill of lading if the shipper demands, provided he surrenders any previously issued document of title (e. g. a 'received' bill of lading issued when the goods arrived at a warehouse or depot before shipment).

Answer 383

(1 ) His exceptions to liability; (2) his right to deviate; and (3) his rights in respect of dangerous goods.

Answer 384

The carrier or ship will not be responsible for loss or damage arising from: act, neglect or default of the master, mariner, pilot, or the servants of the carrier in the navigation or management of the ship; fire, unless caused by actual fault or privity of the carrier; perils, dangers and accidents of the sea or other navigable waters; act of God; act of war; act of public enemies; arrest or restraint of princes, rulers or people, or seizure under legal process; quarantine regulations; act or omission of the shipper or owner of the goods, his agent or representatives; strikes, lockouts, stoppage or restraint of labour; riots and civil commotions; saving or attempting to safe life or property at sea; wastage in bulk or weight or any other loss or damage arising from inherent defect, quality or vice of the goods; insufficiency of packing; insufficiency or inadequacy of marks; latent defects not discoverable by due diligence; any other cause arising without the actual fault or privily of the carrier, or without the fault or neglect of the agents or servants of the carrier (but the burden of proof will be on the carrier to show that his fault or privity or the fault or neglect of his agents or servants did not contribute to the loss or damage).

Answer 385

Any deviation in saving or attempting to save life or property at sea, or any reasonable deviation, will not be an infringement or breach of the Hague-Visby Rules or of the contract of carriage, and the carrier will therefore not be liable for any resulting loss or damage.

Answer 386

Depending on the terms of sale between seller and buyer of the goods, the shipper may send at least two original bills of lading to the consignee, who will give one to the receiver of his goods enabling him to take delivery at the discharge port from the carrier. Where a letter of credit has been issued to enable the seller to obtain early payment from the buyer, the original bills of lading will be endorsed and transferred by the seller to his bank, which endorses and transfers them to the buyer's bank, which in turn endorses and transfers them to the buyer. Each endorsee will become the new holder of title in the goods. Various copy bills of lading (which are not negotiable documents of title) will also be in the system, as will a non-negotiable 'captain's copy' which will be carried on board.

Answer 387

Reference number; shipper's name/address; consignee's name/address, or 'to order'; notify party's name/address; loading port; loading date; vessel's name; discharge port; number & type of packages; contents; weight or volume; any leading marks; statement that goods were received on board/loaded/shipped 'in good order and condition', qualified by suitable any remarks about defective order or condition; number of original bills of lading issued in set; signature of carrier, master or agent. Copies should be stamped 'copy - non-negotiable'.

Answer 388

It should either contain the carrier's terms, conditions and exceptions (as on a liner bill of lading) or state where these can be found (as on a charterparty bill of lading). The fact that a bill of lading has been issued by the carrier is strong evidence that a contract of carriage with him was entered into by the shipper.

Answer 389

A bill of lading should only be issued once goods have been received, either into the custody of a carrier or forwarder, e. g. at an inland container depot (a 'received' bill of lading), or on board the vessel (a 'shipped' or 'ocean' bill of lading). Acting as a receipt for goods is the basic function of any bill of lading.

Answer 390

If freight was paid before issue (e. g. advance freight paid to a carrier operating a liner service), the bill of lading should be stamped 'freight paid' or 'freight pre-paid'. No freight can be demanded when at the discharge port. If not so stamped, freight may be demanded before delivery of the goods.

Answer 391

On a liner bill of lading, a statement 'freight paid' or 'freight pre-paid' (if this is true). On a non-liner bill of lading, the place where freight is to be paid (if not pre-paid), or freight collect' or freight payable as per charterparty'. The amount to be paid may also be stated.

Answer 392

The statement 'shipped on deck at shipper's risk' should appear on the face of the bill of lading.

Answer 393

One used in the liner trades. Typically, the carrier's standard terms and conditions will be printed in very small print on the back.

Answer 394

One used when the ship is on a voyage charter. In this case the terms and conditions of the relevant charterparty are deemed to be incorporated into the bill of lading terms, as should be stated on the bill.

Answer 395

One used in the tanker trades. It will usually be a form of charterparty bill.

Answer 396

One issued by a freight forwarder to his client where the forwarder is acting as arranging the shipment.

Answer 397

One used for a multimodal shipment, i. e. where the goods are travelling by various forms of transport (e. g. road, rail, barge and ship) under one bill.

Answer 398

One forming part of the set of signed bills, any one of which must be surrendered to the carrier at the discharge port in order to claim delivery of the goods. The most common number of originals in a set is probably three, although sets of two are also common, and a few shipments go under just one original bill.

Answer 399

A bill of lading which is issued along with the originals for some purpose other than that of claiming delivery of the goods. It may be a captain's copy or an office filing copy. Typically, several copy bills will be issued for each consigment.

Answer 400

One issued by the carrier when he has received the goods into his care, typically at a freight depot, but before loading onto the ship.

Answer 401

One issued when the goods have been loaded on board the ship. It may alternatively be called an on-board or ocean bill of lading.

Answer 402

One which bears no remark altering the printed statement 'Shipped in apparent good order and condition.... ' Letters of credit - and banks -generally demand production of only clean bills of lading, which may cause problems when goods are loaded which require clausing of the bill.

Answer 403

One claused with remarks about the defective order or condition, or shortage, of the goods loaded. It may alternatively be called a foul bill.

Answer 404

One of the set of original bills of lading which has been surrendered to the carrier's agent (or to the ship's master) at the discharge port and stamped 'accomplished', any freight and charges due having been paid, leaving the consignee or his receiver free to take delivery of the goods. The other bills in the set will then stand void, i. e. they will be of no value even if produced.

Answer 405

To enable title in the goods to be transferred to a third party, e. g. A bank in the case of a letter of credit sale or an alternative buyer where the goods are to be sold in transit, (some bulk cargoes may be sold many times during a voyage. ) Title is passed by the present title holder stamping the back of the bill of lading 'deliver to the order of..... ' and writing the transferee's name. This cannot be done if, in the space on the front for details of the consignee, a particular party's name and address is inserted, or is inserted without the additional words '... or to his order.

Answer 406

Under the Hague and Hague-Visby Rules the carrier, master or agent need not insert any inaccurate statements on the bill of lading or give any details which he cannot reasonably check. Where it is impossible for the carrier, ship or agent to ascertain the quantity and condition of the goods (e. g. with containerised cargo and some bulk cargoes) it is advisable to insert a remark to this effect, as in the question. If a suitable remark is not inserted, the carrier may be held liable, when the bill of lading has passed to a third party, for any difference in weights found on discharge.

Answer 407

To reduce the risk of fraud, bills of lading may have to be recalled for amendment or re-issue.

Answer 408

The carrier's, the master's, the carrier's agent's, or any of these, depending on what is required in the proper space at the foot of the bill of lading.

Answer 409

By being a negotiable bill of lading, i. e. one of the set of 'originals', made out to order'. This enables the bill of lading representing the goods to be passed to a bank or an alternative buyer (perhaps in a chain of buyers) simply by the present title-holder writing the name of the next title-holder (the transferee) on the back of the bill of lading. A negotiable bill of lading is similar to a cloakroom ticket: whoever has possession of it can claim the goods.

Answer 410

Having a particular consignee's name inserted on its face, i. e. not being made out to order', bills of lading which are not made out to order' will have a particular consignee's name inserted and are therefore not negotiable to a third party, e. g. a bank or a second buyer of the goods. They are therefore similar to a crossed cheque. Copy bills of lading are not negotiable.

Answer 411

All terms, conditions and exceptions of the charterparty dated (place and date inserted), including the choice of law clause and arbitration clause, shall be deemed to be incorporated herein'.

Answer 412

The charterparty. Any third party to whom the bill of lading is transferred may determine what the carrier's terms, etc. are by inspecting the charterparty.

Answer 413

(1 ) A receipt for goods (and perhaps freight); and (2) evidence of a contract.

Answer 414

(1 ) Against issue of a 'clean' bill of lading when cargo is shipped that is not in 'apparent good order and condition'; and (2) when goods are being claimed at the discharge port without surrender of one of the set of 'original' bills of lading.

Answer 415

The first: to do so could be a fraud, i. e. a criminal act, against the banks involved as well as the consignee.

Answer 416

To enable him to comply with the terms of a letter of credit which requires him to tender a full set of 'clean on-board ocean bills of lading' to a bank in order to be paid the invoice price of the goods.

Answer 417

Yes, as long as both parties to the sale of the goods agree to its use. Usually, however, Letters of Credit stipulate bills of lading.

Answer 418

The words 'Non-negotiable sea waybill'.

Answer 419

Because it is not a negotiable document and is therefore less likely to be used for fraudulent purposes than a bill of lading. Two copies of the sea waybill do not need to be sent to the consignee.

Answer 420

The Hague Rules and Hague-Visby Rules are incorporated into the national law of many states, but the Hamburg Rules are not widely used since they are less favourable to shipowners. For cover of cargo liabilities by his P&l club, a carrier must incorporate rules at least as favourable as the Hague Rules into his contracts of carriage with shippers. Liner and other bills of lading normally do this by inclusion of a Clause Paramount.

Answer 421

Goods of an inflammable, explosive or dangerous nature, if not property marked, or if shipped without the knowledge or consent of the carrier, may be landed, destroyed, jettisoned or rendered innocuous at any time before discharge. Such goods, even when shipped with the carrier's knowledge and consent, may be dealt with in this way without liability to the carrier, should they become dangerous.