Friday, May 20, 2016

cargo documentation




MATE’S RECEIPT:- THIS IS A RECEIPT SIGNED BY THE MATE OF A SHIP FOR CARGO THAT IS LOADED ONBOARD. IT CONTAINS DETAILS OF CARGO TO BE SHIPPED AND MUST BE MADE AVAILABLE TO THE MATE BEFORE THE CARGO IS LOADED. THE MATE CAN THEN USE IT AS:
1.      A PRE-ADVICE OF WHAT IS EXPECTED TO BE RECEIVED,
2.      TO PLAN A STOWAGE OF THE CARGO.
3.      TO NOTE ON THEM REMARKS REGARDING THE CONDITION OF THE CARGO, SHORTAGES, MARKS, DESCRIPTION ETC.
IT IS NECESSARY TO PUT REMARKS REGARDING THE CONDIITON OF THE CARGO SO AS TO AVOID UNNECCESSARY CLAIMS ON THE SHIP-OWNER AT THE DISCHARGE PORT. THE REMARKS ON THE MATE’S RECEIPT ARE TRANSFERRED ONTO THE BILLS OF LADING. IT IS GIVEN TO THE SHIPPER AS A RECEIPT WHO THEN TENDERS THEM TO THE AGENT OR SHIP-OWNER IN EXCHANGE FOR BILL OF LADING.
















BILL OF LADING:- THE BILL OF LADING PERFORMS 3 MAIN FUNCTIONS:
1.      IT IS A RECEIPT FOR THE CARGO SIGNED BY THE MASTER OR AGENT ON BEHALF OF THE SHIP OWNER.
2.      IT IS A DOCUMENT OF TITLE TO THE CARGO. THE HOLDER OF THE B/L IS THE OWNER OF THE CARGO. IT IS A NEGOTIABLE DOCUMENT, i.e. CARGO CAN BE SOLD JUST BY THE SIGNING AND TRANSFERRING THE B/L IN THE NAME OF THE NEW BUYER.
3.      IT IS EVIDENCE OF CONTRACT BETWEEN THE SHIP OWNER AND THE SHIPPER, GOVERNING THE TERMS AND CONDITIONS OF CARRIAGE.
THE B/L CONTAINS DETAILS SUCH AS, NAMES AND ADDRESSES OF SHIPPER AND CONSIGNEE, PORTS OF LOADING AND DISCHARGING, MARKS, DESCRIPTION, WEIGHT AND VOLUME OF THE CARGO, NUMBER OF ORIGINALS AND COPIES, DATE OF LOADING AND NAME OF SHIP AND THE TERMS AND CONDITIONS OF CARRIAGE.
IT IS IMPORTANT THAT THE B/L MUST CONTAIN AS ACCURATE DESCRIPTION OF THE CONDITION OF CARGO, IT’S WEIGHT, QUANTITY AND QUALITY. IN CASE THE EXACT WEIGHT CANNOT BE DETERMINED IT SHOULD CONTAIN REMARKS SUCH AS “SAID TO WEIGH”, “SAID TO CONTAIN” etc. IF THE CONTENTS OF THE BOXES ARE UNKNOWN IT SHOULD STATE “CONTENTS OF THE PACKAGE UNKNOWN”. THE SHIPPER GENERALLY PREFERS A CLEAN B/LIN ORDER TO AVOID BANK DELAYS, THEY EVEN OFFER TO GIVE A LETTER OF INDEMNITY FOR THE CONDITION OF THE CARGO. THIS SHOULD BE AVOIDED AS A LETTER OF INDEMNITY HAS GOT NO LEGAL VALUE.

Sample Liner Bill of Lading


CARGO MANIFEST:- IT IS A DOCUMENT PREPARED BY THE VESSEL FOR CUSTOMS PURPOSES. IT IS THE LIST OF CARGO ONBOARD AT ANY TIME.IT SHOULD STATE THE NAMES OF ITEMS OF CARGO, WEIGHT, QUANTITY OR NUMBER OF PACKAGES AND THE COMPARTMENT LOADED IN. A SEPARATE CARGO MANIFEST SHOULD BE PREPARED FOR DANGEROUS GOODS CLEARLY STATING THE PROPPER SHIPPING NAMES AND THE UN No.




















































CHARTERS
Nature of charters
A “charter” is a contract for the hire of a vessel, for a specified journey or an agreed period of
time.
In a maritime context, charters include:
Ø  contracts for carriage of specified quantities of cargo in specified vessels between specified ports (i.e. voyage charters); and
Ø  contracts for hire of specified vessels, including:
ü  time charters; and
ü  bareboat charters (also known as “demise charters”).
Nature of a voyage charter
A voyage charter -
- is a contract for the carriage by a named vessel of a specified quantity of cargo between named ports or places.
- may be thought of as equivalent to the hire of a taxi for a single journey, or for a series of several consecutive journeys in the case of a consecutive voyage charter.
The shipowner basically agrees that he will present the named vessel for loading at the agreed place within an agreed period of time and, following loading (responsibility for which will be as agreed between the parties), will carry the cargo to the agreed place, where he will deliver the cargo.
The charterer, who may be the cargo owner or may be chartering for the account of another party such as the shipper or the receiver, agrees to provide for loading, within the agreed period of time, the agreed quantity of the agreed commodity, to pay the agreed amount of freight, and to take delivery of the cargo at the destination place.
In effect the charterers hire the cargo capacity of the vessel, and not the entire vessel, and to this extent a voyage charter agreement can be considered as the maritime equivalent of a taxi hire agreement. (Control of the ship’s operations remains with the shipowner.)
In some trades, e.g. chemical tankers, several cargo parcels carried on one voyage may have been fixed with several different charterers.

The shipowner must provide the master and crew, act as carrier and pay all running and voyage costs, unless the charter party specifically provides otherwise.

Nature of a time charter
A time charter -
- is a contract for the hire of a named vessel for a specified period of time.
- may be thought of as equivalent to the hire of a chauffeur-driven car (the ship’s crew being “the chauffeur”).
The charterers agree to hire from the shipowner a named vessel, of specified technical characteristics, for an agreed period of time, for the charterer’s purposes subject to agreed restrictions. The hire period may be the duration of one voyage (a “trip charter”) or anything up to several years (“period charter”).
The shipowner is responsible for vessel’s running expenses, i.e. manning, repairs and maintenance, stores, master’s and crew’s wages, hull and machinery insurance, etc. He operates the vessel technically, but not commercially. The owners bear no cargo-handling expenses and do not normally appoint stevedores.

The charterers are responsible for the commercial employment of the vessel, bunker fuel purchase and insurance, port and canal dues (including pilotage, towage, linesmen, etc.), and all loading/stowing/ trimming/discharging arrangements and costs. They direct the ship’s commercial operations, but not her daily running and maintenance.

The charterers normally appoint stevedores and nominate agents.
There may be an agreement between the parties for an extra payment (of perhaps several hundred US$) to be made by the charterers each time the ship’s crew sweep and/or wash down the holds of a dry cargo ship.
A Directions and Logs Clause requires the charterers to provide the master with all instructions and sailing directions, and the master and chief engineer to keep full and correct logs accessible to the charterers or their agents, so that they can monitor the vessel’s efficiency.

Stevedoring damage notification forms, and log extracts (or “abstracts”) will usually be required to be sent to the charterers.
Time charterers are normally allowed to fly their own house flag and, at their own expense, paint their own colours on the funnel and/or sides.

Nature of a bareboat charter and lease arrangement
* A bareboat charter (sometimes called a charter by demise or demise charter, particularly by lawyers)
- is a contract for the hire of a vessel for an agreed period during which the charterers acquire most of the rights of the owners.
- may be thought of as the marine equivalent of a long-term vehicle lease contract.
- is most usually on the BARECON 89 charter party form.
- is used by owners such as banks and finance houses who are not prepared to operate or manage ships
themselves.
- is often hinged to a management agreement. (e.g. where an oil company bareboat charters a tanker from an independent tanker owner but agrees that the owners will manage the ship on the oil company’s behalf during the charter period).
- 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.)
* In essence the vessel owners put the vessel (without any crew) at the complete disposal of the charterers and pay the capital costs, but (usually) no other costs. The charterers have commercial and technical responsibility for the vessel, and pay all costs except capital costs.

PROTESTS
In any of the circumstances enumerated below it is advisable for the master to note a protest.
1. Whenever during the voyage the ship has encountered conditions of wind and sea which may result in damage to cargo.

2. When from any cause the ship is damaged, or there is reason to fear that damage may be sustained.

3. When through stress of weather it has not been practicable to adopt normal precautions in the matter of ventilation of perishable cargo.

4. When cargo is shipped in such condition that it is likely to suffer deterioration during the voyage. In this case, however, the protest will not be effective unless the bills of lading were endorsed to show the condition of the cargo at the time of shipment.

5. When any serious breach of C/P terms is committed by the charterer or his agent, such as refusal to load, unduly delaying loading, loading improper cargo, refusal to pay demurrage, refusal to accept B's/L in the form signed by the master, etc.

6. When consignees fail to discharge cargo or take delivery thereof, and pay freight in accordance with C/P or B/L terms.

7. In all cases of general average.

Protests should be noted as soon as possible, certainly within 24hours of arrival in port, and in the case of cargo protests before breaking bulk.
A "note of protest" is simply a declaration by the master of circumstances beyond his control which may give, or may have given, rise to loss or damage. Such declaration must be made before a notary public, magistrate, consular officer, or other authority. Usually, statements under oath will be taken from the master and other members of the crew and these statements will have to be supported by appropriate log book entries. At the time of noting protest the master should reserve the right to extend it.
Protests are admissible in evidence before legal tribunals and, in many cases, are essential to the establishment of a claim.   In many countries, particularly on the Continent, protests are received in evidence as a matter of course.

Note : In the United Kingdom, however, they are not accepted as evidence in favour of the party making the protest unless both parties consent. The chief use of a protest in the United Kingdom is to support a claim by a cargo owner against his underwriters. There is no legal necessity for a protest in the United Kingdom and legal rights are in no way affected if a protest has not been noted. On the Continent the position is different; there the noting of a protest is a condition precedent to certain legal remedies. For example, consignees are debarred from making a claim for cargo damage unless they protest within 24 hours of taking delivery of the goods and follow this up by a court summons within one month.
The master, if he delivers the cargo and accepts the freight, will be barred from claiming
the cargo's contribution in general average unless he notes protest within 24 hours and
notifies the consignee that he has done so.
It is not essential that a protest should be made on a special form, but it is advisable
and usual in practice.




























A typical protest form reads as follows: –
NOTE OF PROTEST
On this...........................day of.............................................in the year of our Lord
One Thousand Nine Hundred and.................................................personally appeared
and presented himself before me........................................................................British
Consul/Notary Public....................................................................................................
Master of the British......................... the...................... of............................................
Official Number...................and......................................................................Tons
Register, which sailed from............................................... on or about the
........:.......................day. of..................................with a cargo of......................... bound
for......................... and arrived at ................................................... on the ......................
day of.........................and fearing loss or damage owing to...................
........................................................................................................ during the voyage, he
hereby notes his protests against all losses, damages, etc., reserving right to extend the
same at time and place convenient.
Signed before me......................................... (signed) .........................................
British Consul at...................................... (Master
Notary Public (signed ..........................................
this................ day of............................ (British Consul)
One Thousand, Nine Hundred and..............................(Notary Public)
I certify the foregoing to be a true and correct copy of the original Note of Protest,
entered in the Acts of this Consulate and copied therefrom.
British Consulate................................................................, 19.....................
................................................., Consul.
N.B.– If the master makes his protest before a consul, the words "Notary Public" will
be deleted; if before a notary public, then the words "British Consul" will be deleted.
Following the words "owing to" there will be inserted a very brief statement of the cause
of the master's fearing loss or damage, such as "collision", "stranding", "heavy weather",
etc. Only in the case of heavy weather is it permissible to give details at this stage.
Many cases arise where a master feels justified in noting a protest but where he cannot
truthfully declare that the ship has encountered heavy weather. In these circumstances it
is customary to make use of the phrase "boisterous weather", thereby avoiding
exaggeration.
The original protest is entered into a Register at the Consulate or office of the notary
public or magistrate, and true and certified copies are supplied to the master on his
paying the fee demanded. At least three copies should be obtained so that the master can
retain one copy on board and send the others to his owners who may require them for
their underwriters and/ or average adjusters. If the vessel has cargo for several ports,
protests should be noted at each one in turn as it may not be sufficient to protest only at
the first port of call.











Extended Protests. It often happens that at the time when a protest is originally noted it has not been established definitely whether, in fact, loss or damage has occurred or not. Even where some loss or damage is certain, the full extent of it will not be known. Should it transpire that there is no loss or damage, then there will be no need to carry the matter any further. Otherwise it will be necessary to extend the protest. In places where a master's protest affirmed by the official seal of a notary or other authority
is accepted as conclusive evidence of the facts stated, it is most important that an extended protest should be available to support claims.
If necessary, a protest may be noted at one port and extended at another. In some countries a time limit of six months is imposed but in others, for example in the U.S.A., protests may be extended within any reasonable time after noting.
Usually, an extended protest consists of two parts. The first consists of a statement of all the material circumstances leading up to the event and based on log book extracts supported by other available documents, such as weather charts, giving official information on the matter at issue. This statement should be very carefully and accurately drawn up to contain all relevant facts and should not, of course, be at variance with any statement made in the original protest. It must be signed by the master and countersigned by one or more responsible officers and other members of the crew. In the second part the Appearers and the Notary protest against the accident and against losses or damages thereby caused. As the requirements differ from one place to another, the master on arrival at a foreign port in circumstances where it is necessary to note or extend protest should, unless he is already familiar with the local requirements, lose no time in consulting his owner's agents for advice and making certain that all the
necessary steps are taken immediately.
In a case of general average a copy of the extended protest will be one of the various documents required by the average adjuster.
In the case of cargo damage, so long as the cause of the damage is within the exceptions in the C/P or B/L, it will be unnecessary to extend protest in the United Kingdom so far as the shipowner's interests are concerned. However, cargo owners may request the master to note and extend protest for their benefit, viz., to support their claim against their underwriters. There is no reason why the master should not accede to such a request so long as it is clearly understood that the cargo owners concerned will
themselves pay any expenses involved.

Although protests are often extremely valuable, it must be stressed that noting a protest will never exonerate a master from any failure to endorse B's/L in respect of goods short loaded or goods shipped in a damaged or defective condition. In the same way an endorsement on a B/ L of a claim for demurrage incurred at a port of loading will safeguard the shipowner's interest far more effectively than any protest.

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