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Carriage of Goods by Sea Cont…
Clauses of Charter Party:
- Name of parties and ship.
- Class of Charter Party - Deals with the terms for which the ship is hired.
- Class of Ship- Description of the particular class of ship.
- Now at - the clause indicates where the ship is at the time, the charter party is made. It also indicates when the ship will arrive at the port of dispatch.
- Sea Worthiness and Fitness - Express warranty of sea worthiness.
- Port of Loading- This clause specifies the port of loading
- Full and Compete Cargo- The charterer is liable to pay freight for the full capacity of the ship whether it is fully used or not.
Clauses of Charter Party
- Lay Days and Demurrage- Lay days means the days allowed for loading and unloading the ship. In case the charterer does not compete loading and unloading within lay days. He is liable to pay damages.
- Law of Merchandise- The goods must be lawful both at the port of dispatch and port of discharge.
- Payment of Freight- This clause lays down how and to whom freight is to be paid.
- Ship-owners Lien- The ship owner has a lien on the goods he carries for the freight and demurrage due to him. He can refuse to deliver the cargo till the amount due is paid.
Implied Warranties- Carriage by Sea
1. The ship is fit to encounter the ordinary
risks of the sea during the voyage.
2. The ship shall be ready to commence the
voyage with diligence.
3. The ship shall not deviate from the agreed
route except for good cause such as safety of
ship and human life.
4. Illegal contraband and dangerous goods
are not to be included in the cargo.
Effects of Breach of Terms
1. A breach of terms discovered before the
commencement of the voyage, the aggrieved
party may cancel the contract and sue for
damages.
2. A breach of terms comes to the knowledge after
the voyage has begun, the aggrieved party can
claim damages.
3. In case of deviation of the ship from the agreed
route, the ship owner will not be covered by the
excepted peril clause.
Documentation in Carriage of Goods
by Sea Cont…
Contents of Bill of Lading
- Must be stamped and signed by the owner or his agent.
- Marks of identification of goods.
- Number of packages or quantity or weight in writing.
- A statement about the condition of goods.
- The name of the ship, port of shipment, port of delivery and the person to whom delivery is to made.
- Accepted Peril clause.
- Amount of freight.
Kinds of Bill of Lading
- Clean Bill of Lading - When the goods are in good
condition, the bill is said to be a clean bill of lading.
- Qualified Bill of Lading - When it is stated in the bill
of lading that goods are in bad condition, the bill of
lading is said to be qualified bill of lading.
- Through Bill of Lading - when the cargo stated in the
bill of lading is to be carried partly by sea and partly by
land, and the fight has been charged for both, the bill
of lading is called through bill of lading.
Duties of Carrier by Sea
- The carrier is bound to exercise due diligence before and at the beginning of the voyage in:
a. Making the ship seaworthy.
b. Properly man, equip and supply the ship.
c. Make the holds, refrigeration and cool chambers and all parts of the ship fit and safe for reception, carriage and preservation
- Must carefully load, handle, keep, care for and discharge the goods carried.
- After receiving the goods, the carrier must issue a bill of lading.
Liabilities of Carrier by Sea
1. A ship owner is liable for the loss arising from
his negligence.
2. A ship owner can not limit his liability arising
from his negligence.
3. The carrier shall not be liable unless the nature
and value of goods are declared by the shipper
before the shipment in the bill of lading.
4. The carrier shall not be liable for any damage
to the goods, if the nature and value of goods has
been misstated by the shipper in the billl of
lading.
Explanation of Important Terms
Right of Stoppage in Transit:
The shipping company is not required to to deliver the goods to the holder of the bill of lading, if the consignor while exercising his right of stoppage in transit, gives instructions not to deliver the goods.
Maritime Lien:
Maritime lien is a claim on ship, cargo and the freight in respect of services rendered to them. All persons who render some services to save the ship or cargo in time of danger, can recover their charges from the ship owner or cargo owner. The ship can not be allowed to leave harbor and the court may order for the sale of the ship or cargo in favor of the maritime lien.
Explanation of Important Terms
Cont …
Bottomry Bond
When a ship needs urgent repairs during voyage
and it become unavoidable for the captain to
borrow money for such repairs, the captain raises
money on the security of the ship and the cargo.
The contract of raising money in this manner is
called Bottomry Bonds.
Jettison
Jettisons to throw out. Goods may be jettisoned
during a voyage to save the ship from sinking.
Carriage of Goods by Air
Carriage by Air Act,1934. contains two schedules:
Schedule I contains Warsaw Convention Rules
Schedule II covers the Hague Protocol
High Contracting Party
Governments of those countries who have signed the Warsaw Convention Rules are high contracting parties.
International Carriage
It is the carriage in which the place of departure and the place of arrival are located within the territorial jurisdictions of two high contracting parties or within the jurisdiction of a single high contracting party if there is an agreed stop over within the territory of another state even if that other state is not a high contracting party.
Documentation-Carriage By Air
Passenger Ticket - A passenger ticket contains the
following :
1. The place and date of issue.
2. The place of departure and destination.
3. The agreed stopping places.
4. The names and addresses of the carrier or
carriers.
5. A statement that the carriage is subject to the
rules contained in this schedule.
Documentation-Carriage By Air
Air Way Bill ( Air consignment Note)
Following are the points of air way bill:
1. Every carrier of cargo has the right to get air
way bill.
2. The air way bill shall be made in three copies.
3. The first part shall be for the carrier, the
second part for the consignee and the third part
for the consignor.
4. The carrier has the right to get air way bills for
each package separately.
Documentation-Carriage By Air
Contents of Air Way Bill
- The place and date of its execution.
- The place of departure and destination.
- The agreed stopping places.
- The name and address of the consignor.
- The name and address of the first carrier.
- The name and address of the consignee.
- The nature of goods.
- The number of packages, method of packing and the particular numbers upon them.
- The weight, quantity and volume of goods.
