Савчук. Foreign trade

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#: The shipper or charterer shall be entitled to do so if the payment is made of a half of the full freight, and demurrage payment if demurrage of the vessel has occurred, other expenses incurred by the carrier at the cost of the goods and not included in the amount of freight, if the denial by the shipper or charterer is made before the expiry of lay time or demurrage time established for the loading of the goods, or before the vessel sets for a voyage, whichever time of the two came first.

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#: It may happen due to circumstances not within the control of the parties: the vessel is lost or is seized by force; the vessel is found unseaworthy; the specific goods perish; the generic goods perish after they are handed over for loading, and the shipper fails to hand over other goods of the same kind for loading.

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If cargoes are carried by a ship, the shipper is obliged to charter the ship. The freighting or chartering of such a ship is done through a shipping agent, who signs an agreement with the shipowner in the name of the charterer. Such an agreement

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is called the Charter –Party. The Charter – Party must include all terms concerning the rate of freight, the time of loading, the port or ports of destination, the loading conditions, and so on. After signing such an agreement the ship is considered to be chartered and the loading of the goods may begin.

The stevedore looks after the stowage and the trimming in the holds, in order to fill the cargo space and to protect the goods from any damage during the voyage.

As soon as the cargo is agreed upon, the Charter – Party is loaded, the Captain of the ship hands over to the shipper a signed receipt, which confirms that the whole cargo is received on board ship.

Such a receipt is called the Bill of Lading. Depending on the requirements of the shippers, the Bill of Lading is issued in 3, 4, or more copies.

A Manifest is a document containing complete specifications of the goods loaded by a ship. Cargo manifests are drawn up by the agents in the port of loading, based upon the Bill of Lading. The Manifest contains the following data: the name of the ship, port of loading and date of departure, port of destination, number of Bills of Lading, marks of packages and contents, names of shippers and consignees, weight of packages, rate of freight per unit, total freight.

Mate’s Receipt is a document signed by the Chief Officer, acknowledging the receipt of cargo on board ship. If the cargo is not “in apparent good order and condition” a correspondent remark will be inserted in the Mate’s Receipt. The Mate’s Receipt is exchanged for Bills of Lading when loading is finished.

Bill of Lading is issued after all Mate’s receipts have been collected. Bill of Lading contains the same descriptions of goods and remarks.

Cargo-plan or Stowage plan shows the part of the hold and the holds in which the various cargo pieces have been stowed. It shows marks and destination of cargo.

Cargo-plan gives a clear picture of the disposition of each cargo piece.

Match the word on the right with the explanation on the left:

clear disposition of each cargo piece on board ship.

Tick whether the statements are true (T) or false (F):

1.Chartering a ship is done through a stevedore.

2.An agreement for the carriage of cargo is called Bill of Lading.

3.Cargo –plan shows the disposition of the goods in the holds.

4.The Captain hands over the shipper a confirmation on the whole cargo is received on board ship.

Answer the following questions:

1 When exporters send goods on board a ship, what do they need from the shipping company?

(a)a receipt

(b)a letter

(c)a standard shipping note

2 When a shipping company carries cargoes for traders, what do the trader and shipping company need?

(a)a note of carriage

(b)a letter of carriage

(c)a contract of carriage

3 The parties in the export contract need a document of title. What does this document show?

(a)who buys the goods

(b)who sells the goods

(c)who carries the goods

(d)who owns the goods

THE FUNCTIONS OF THE BILL OF LADING

The Bill of Lading has 3 important functions. It is a receipt for goods signed by the shipping company and given to the shippers. It is also evidence of a contract of

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carriage between the shipping company and shippers. In addition, it is a document of title because the legal owner of the Bill of Lading is the owner of the goods.

For this reason the Bill of Lading can be used to transfer the goods from one owner to another. When the exporters complete it, they can write the buyers’ name in the space, “consignee”. This means the consignee is the legal owner of the goods, as named on the Bill of Lading. Otherwise the exporters can write “to order” in the space. Underneath “to order” they write the name and address of the agent. Then the agent in the importing country can endorse the Bill to the buyer. In this way the importers can transfer the consignment to their customers.

This means that there has to be a separate Bill of Lading for each consignee and several consignments cannot be consolidated on to one Bill. But it is possible to do this on one Air Waybill.

Find a suitable word in text to complete these sentences:

(a)Containers can be used in many ways. One of their most important _ is storage.

(b)When the goods arrived we found the boxes broken in places. There was some _ of bad handling.

(c)Although the goods were in their warehouse, the company had no _ to them. They were just storing them for their owners.

(d)In Islamic countries it is _ for a man to have 4 wives.

(e)The football players got a _ to another team.

(f)The shipping company must _ the application for Special Stowage Order for any dangerous goods.

Match the words on the left with the explanations on the right:

The Bill of Lading is the central document of a sea export transaction. The form, provided b the shipping company, is filled by the shippers as soon as they

CLEAN BILLS OF LADING

When a consignment is loaded, an officer or agent of the shipping company signs the Bill of Lading that the goods have been “received in apparent good order and condition”. In other words the consignment must be exactly as written on the Bill and not different. The cases should be undamaged and sacks, if any, should not be torn or stained. Drums of liquid should not be dented or leaking. The number and kind of packages should be the same as on the Bill.

If there is any difference between what it says on the Bill and the actual condition of the consignment, the shipping company has to write a clause on the Bill giving the damage or loss. In this case it is no longer a clean Bill of Lading and the bank representing the importer may not accept it. So the exporters’ bank may not be able to get payment for the goods. For this reason “foul” or “claused” Bills of Lading must be avoided at all costs and exporters must make sure their goods arrive at the docks in good order and condition.

Sometimes certain defects of the goods are unavoidable. For instance, timber often has “split ends”. Chemicals cause discoloration on packing. In such cases exporters must get the agreement of the importers to certain clauses on the Bills of Lading. These clauses must be agreed before the export contract is agreed and the importers should tell their bank about the agreed clauses.

Choose the best paraphrase:

1.“in apparent good order and condition”

(a) The goods are in perfect condition.

(b) The goods are all present and in correct order.

(c) The goods appear to be undamaged and all present.

2.“the actual condition of the consignment”

(a) The state the goods are really in.

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(b)The state of the consignment on paper.

(c)The ideal condition of the consignment.

3.“foul … Bills of Lading must be avoided at all costs”

(a) We should try not to allow Bill to become dirty.

(b)We should certainly not allow Bills to have clauses written on them.

(c) Foul Bills of Lading are better than anything else.

4.“sometimes certain defects are unavoidable”

(a)We often find it impossible to ship perfect consignments.

(b)Nothing can be done about certain problems.

(c)Usually consignments have things wrong with them.

Use the following verb to complete the sentences: tear; stain; dent; leak; split; discolor.

(a)The order was _ into two consignments.

(b)Jute ropes sometimes _ cotton bales.

(c)He _ the letter up and threw it into the wastepaper basket.

(d)They lost a lot of petrol because the tank was _.

(e)Clothes sometimes get _ when washed.

(f)After the accident the front of the car was badly _.

Supply one suitable word for each space:

The Bill of Lading normally has _ main functions. It is partly a _ for the goods signed by a _ officer and returned to the exporters. _ also shows that there is a _ of carriage between the exporters and _ company. The Bill of Lading also _ who the legal owner of the _ is. After the goods have been _ several copies are signed by an _ of the shipping company and returned _ the exporters. A copy is kept _ the ship . the exporters send their _ to the bank which sends it _ the other shipping documents to the _ bank in return for payment. It _ important to make sure that the _ are loaded into the ship in _ order and condition. Any damage or _ will be noted on the Bill _ _ a ship’s officer so the Bill _ not be a “clean Bill of _. Claused Bills of Lading are not _ by paying banks unless specific clauses _ definitely been agreed by the customers. _ the paying bank has accepted the _ documents, they forward them by air _ the customers who use them to _ they are the owners of the _ and take delivery of the consignment _ the docks. The shipping company can _ the negotiable Bill of Lading of _ importers with the carbon copy they _ on the ship. If the importers _ to sell the goods immediately to _ buyer they ask the exporters to _ the Bill “to order” and leave _ consignee space on the Bill blank, _