1、Xiefy.SIB.SWUFEChapter 2. International Cargo TransportationFengyan XieXiefy.SIB.SWUFEOutline:oFeatures of ocean transportation oModes of Ocean TransportationoOcean transport FreightoBill of LadingoOther modes of transportationXiefy.SIB.SWUFESection1. Futures of Ocean TransportationAdvantage: Low fr

2、eight cost Large capacity Widely connected ocean routesDisadvantage: Comparatively slow Vulnerable to more types of risk Inefficient to punctuality Xiefy.SIB.SWUFEXiefy.SIB.SWUFESection 2. Modes of ocean transport o Liner oTrampso Ocean Transport Liability ConventionsxfyXiefy.SIB.SWUFE2.2.1 LinerA.

3、Idea of liner liner :a vessel which sails on a fixed sailing routes , calls at a fix basic ports at a comparatively fixed timetable and charges at comparatively fixed freight rates.liner transport: transportation service provided by liner companies.xfyXiefy.SIB.SWUFEB. Types of linersa. Conference l

4、inersb. Non-conference liners Discussion:Is conference necessary for the development of liner transport?xfyLiner Conference: organization of liner companies for the coordination of shipping affairs like routes, basic ports, freight, ectXiefy.SIB.SWUFEC. Features of liner shippingoWith 4 “fixed” char

5、acteroThe carrier is in charge of loading and unloadingoCarry shipments of big or small quantityoUsually equipped with newer and quicker vesselsxfyXiefy.SIB.SWUFED. Process of Liner ShippingThe shipperLiner Co.LinerShipping Order(托運單托運單/訂艙單）訂艙單）loadingMates Receipt（M/R）(大副收據）大副收據）B/LM/RxfyXiefy.SIB.

6、SWUFEXiefy.SIB.SWUFEE.Shipping contract under linershipping order + B/LShipping Order: an offer from the shipper by natureB/L: an acceptance from the carrier by naturePrinciple: Contract is effective when an offer is accepted.Xiefy.SIB.SWUFE2.2.2 Tramps (charter)A. Idea of trampsCharter/tramps/gener

7、al traffic: vessels operated on a non-scheduled basis and sail where the cargo presents itselfB. Main types of charterovoyage charteroTime charter C. Features of charter transportcomparing with liner transport: DiscussionxfyXiefy.SIB.SWUFED. Shipping contract under charter Charter PartyCharter Party

8、: a formal contract between the shipper and the carrier indicating details of shipping service and obligations of both parties.Xiefy.SIB.SWUFEContent of charter party :Charter PartyoOwners Liability ClauseoDeviation ClauseoPayment of FreightoLoading/Discharging oLaytime oDemurrageoLien ClauseoCancel

9、ling ClauseoBill of LadingoBoth to Blame ClauseoGeneral Average and New Jason ClauseoTaxes and Dues ClauseoAgencyoBrokerageoGeneral Strike ClauseoGeneral Ice ClauseoLaw and ArbitrationoxfyXiefy.SIB.SWUFEE. Process of Tramps Transport1.Charter Party2.Loading3.Bill of Lading4.Transport6.Unloading7.Tak

10、e Delivery with B/L5.Pay for B/LShipperCarrierBuyerSellerXiefy.SIB.SWUFEF. Rule of Loading and Unloading under tramps Liner Terms Free In (FI) Free Out (FO) Free In and Out (FIO) Free In and Out, Stowed and Trimmed (FIOST) p124Xiefy.SIB.SWUFE2.2.3 Liability conventions concerning ocean transportatio

11、n A. Opening case: oa French container liner encountered typhoon Prapiroon on its way from Shanghai to Ningbo , in which more than 100 containers on the liner dropped into the sea, causing a lot of damage. oowners of damaged cargo and insurers with the right of subrogation , 15 altogether, institute

12、d court action against the carrier at the Shanghai maritime court.oQuestion: how would the plaintiff and the defendant plea for themselves respectively?Xiefy.SIB.SWUFEB. The list of major conventions oInternational Convention for the Unification of Certain Rules of Law relating to Bill of Lading (“H

13、AGUE RULES”) (International Law Association ,1924)o1968 Protocol to Amend the International Convention for the Unification of Certain Rules of Law Relating to Bills of Lading (Hague-Visby Rules) (Comit Maritime International，1968)o United Nations Convention on the Carriage of Goods by Sea (Hamburg R

14、ules) (UN, 1978)xfyXiefy.SIB.SWUFENoImagexfyXiefy.SIB.SWUFEMaterial 1: The 17 defenses under Hague Rules:oAct, neglect, or default of the master, mariner, pilot, or the servants of the carrier in the navigation or in the management of the ship. oFire, unless caused by the actual fault or privity of

15、the carrier. oPerils, dangers and accidents of the sea or other navigable waters. oAct of God. oAct of war. oAct of public enemies. oArrest or restraint or princes, rulers or people, or seizure under legal process. Xiefy.SIB.SWUFEoQuarantine restrictions. oAct or omission of the shipper or owner of

16、the goods, his agent or representative. oStrikes or lockouts or stoppage or restraint of labour from whatever cause, whether partial or general. oRiots and civil commotions. oSaving or attempting to save life or property at sea. oWastage in bulk or weight or any other loss or damage arising from inh

17、erent defect, quality or vice of the goods. Xiefy.SIB.SWUFEoInsufficiency of packing. o Insufficiency or inadequacy of marks. oLatent defects not discoverable by due diligence. oAny other cause arising without the actual fault or privity of the carrier, or without the actual fault or neglect of the

18、agents or servants of the carrier, but the burden of proof shall be on the person claiming the benefit of this exception to show that neither the actual fault or privity of the carrier nor the fault or neglect of the agents or servants of the carrier contributed to the loss or damage. xfyXiefy.SIB.S

19、WUFEMaterial II. The 3 defenses under Hamburg RulesoDamage the carrier took reasonable steps to avoidoDamage by fireoDamage due to an attempt by the carrier to save life or property at seaXiefy.SIB.SWUFEDiscussion:oReview of the opening caseoHow to evaluate the 3 famous conventions?Xiefy.SIB.SWUFESe

20、ction 3. Freight of Ocean TransportFreightLiner freightCharter freightXiefy.SIB.SWUFE2.3.1 Freight of Liner-tariffpThe formulapFreight = Base freight + Additional charge=Quantity x Base Rate x ( 1 + Additional Rate) (Surcharge=additional charge)xfyXiefy.SIB.SWUFEB. Base freightDefinition: Base freig

21、ht is calculated on the main/regular costs of transport from the port of shipment to port of destination and it listed on the tariff of the liner. TARIFFxfyXiefy.SIB.SWUFEMain criteria used in the tariff for calculating basic freight oW oMoW/M o A.V. oW/M or A.V. oUnit/Head o Minimum rate oOpen Rate

22、 (negotiated rate)xfyP121Xiefy.SIB.SWUFESample of tariff:xfyXiefy.SIB.SWUFEScale of Class Rate for China-Canada Service (HKD)xfyXiefy.SIB.SWUFEC. Additional chargeoAdditional charge is calculated on the SEPECIAL costs of transport from the port of shipment to port of destination and it NOT listed on

23、 the tariff of the liner.oSome examples:oBAF(Bunker Adjust Factor)oCAF(Currency Adjust Factor)oPort Congestion SurchargeoHeavy lift additional oLengthy cargo additionaloAdditional on direct xfy+more on P122Xiefy.SIB.SWUFED. Illustration of liner freight calculation Suppose: Company A exports 1 000 c

24、ases of Commodity Y to London. The volume per case is 40cm x 30cm x 20cm, and the gross weight is 30kg. For Commodity Y, the freight rate basis is W/M, and the Freight Tariff (China -London) is USD230, with a 10% port surcharge. How much is the total freight? Calculation: Total weight: 0.03 M/T x l

25、000 cases = 30 M/T Total measurement: 0.4 x 0.3 x 0.2 x I 000 cases = 24 M3 Weight Measurement , W is the freight basis Total freight = total weight x basic rate x ( 1 + surcharge rate) = 30 x230 x(1 +10%) =USD7590=?Xiefy.SIB.SWUFE2.3.2 Freight of CharterpDecision of Charter Freightp by negotiation

26、between the shipper and the carrier and indicated in the Charter Party.B. Some ways to calculate charter freight:a. Freight=Shipping Weight x freight rateb. Freight= Landing Weight x freight ratec. Freight=On Lump-sum FreightXiefy.SIB.SWUFE Section 4. Bill of Lading2.4.1 DefinitionBill of Lading (B/

27、L) is a document which is issued by an ocean carrier to a shipper with whom the carrier has entered into a contract for the carriage of goods.Sample of B/L: p153-155xfyXiefy.SIB.SWUFE2.4.2 Contents of B/LoOn the face of the B/L: The basic terms about the carriageoOn the back of the B/L: general term

28、s and conditions about the rights and liabilities of the shipper and the carrier in printed form usually based on intern. rules like: Hague Rules( 海牙規則 )Visby Rules (維斯比規則維斯比規則)Hamburg Rules(漢堡規則漢堡規則) Xiefy.SIB.SWUFE2.4.3 Filling the B/LMain items:Shipper: the one who deliver the goods to the carrie

29、roThe exportera.Agent of the exportConsignee : the one who take delivery of the goods at the port of destinationa. a specific person (e.g. the importer)b. to order to order of somebodyc. bearer/holder Xiefy.SIB.SWUFENotifying party: the one to whom the carrier sends the notice of arrival of goodsa.

30、the importerb. other specified personFor the purpose of notice, both the name and the detailed address of notifying party should be filled in.Xiefy.SIB.SWUFEMarks & No.: the Shipping Mark printed on the shipping packageoFill in the assigned shipping mark in the SC or LCoIf no assignment in SC or

31、 LC, fill in a standard onea.e.g. ABC SC 3253Rotterdam1/1000Xiefy.SIB.SWUFEDescription of Goods: the name and quality description of the good as per the SC or LCe.g. Green TeaLonggang Brand, Grade OneXiefy.SIB.SWUFELADEN ON BOARD THE VESSELDATE: refer to the date when goods are on board the shipAT:

32、refer to the port of shipmentSigned: signature of the carrier or his agentXiefy.SIB.SWUFE2.4.4 Functions of the B/La. it is a cargo receiptb. it is evidence of a contract of carriagec. it is a document of title to the goods.Controversial xfyXiefy.SIB.SWUFE2.4.5 Application of B/LShipper carrierbanks

33、Transferee importerB/LB/LB/LB/LB/LB/LxfycarrierXiefy.SIB.SWUFE2.4.6 Issue and Transfer of B/LA. Issue of B/LTime of Issuing: When goods are on board the ship Issuer: The carrier or his representative Original Copies to be issued: 2-3 usuallyxfyXiefy.SIB.SWUFEB. Condition and Mode of Transfer:TitleMo

34、de of TransferTo orderTo order of sb.endorsementBearerHolderdeliverySb.Non-transferableXiefy.SIB.SWUFEC. 3 ways of endorsement:Endorsement: the owner of B/L writes on the back of the B/L to show his willingness of transfer and the transferee he refers to.(1) Special Endorsemente.g.Endorse to ABC Co.Jack ChenJack ChenXY Co.May 11,2011Xiefy.SIB.SWUFE(2) Order Endorsement(3) Blank EndorsementJack ChenJack ChenXY Co.May 11,2011Endorse to order of ABC Co.Jack ChenJack ChenXY Co.May 11,2011Xiefy.SIB.SWUFED. Implication of endorsementSpecial E.: the B/L could not be transferred againOrder E.