Судоводы - 9 семестр / Видищева Т.В., Монастырская О.И. - English in Maritime Business and Law (2014)

4.Awkward cargoes and heavy ones are supplied with specific cargo handling gear and have specific construction - heavy lift ships and low-float vessels.

5.Rolling cargo —trailer, lorries, cars, trucks, vans are transported by automobile

carriers, Ro-Ro vessels, Ro-Pax andferries.

1.What cargo types do you know? Give the examples.

2.What ships transport liquid cargoes?

3.What are the types o f crude oil carriers and what’s the difference between them?

4.What cargo is carried by clean and dirty tankers?

5.When are combiships used?

6.How can general cargo/refrigerated cargo/heavy cargo be transported?

Exercise 2. Match cargoes with their carriers

Exercise 3. Make words from the jumbled letters and match them with the definitions below

BD I L Q I U

CZ A M R E H N E C D I _______________________________________

DU P R E T O E M L ______________________________________

EE P H A S T O S P H ______________________________________

1.Things for sale, goods

2.A load of goods sent together by sea, road, air

3.Wood for building

4.A mineral oil obtained from below the surface of the Earth

5.The ore from which aluminium is made

6.A substance which is not a solid or a gas, which flows, is wet and no fixed shape

7.Any of various forms of a salt, widely used in industry

Exercise 4. Fill in the gaps with a suitable word

1.The largest type of cargo ship is __________________ .

2.Tankers are designed to carry____________ cargo as oil.

3.The carriers which are over 500,000 DWT are known a s _______________ .

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UNIT 12

INCOTERMS

Vocabulary

• Place (port) o f destination - порт назначения

• To amend- внести поправку

• To reduce the risk - уменьшить (снизить) риск

• Implementation o f the contract o fsale - выполнение договора купли-продажи

•Transfer o f ownership - переход собственности

•Exemptionfrom liability - исключение из сферы ответственности

•Duties and taxes - пошлины и налоги

•Customs clearance costs - стоимость таможенной очистки

•Dispatch - отправка

•Shipper (consignor) - грузоотправитель

•Carrier - перевозчик, транспортное агентство

•Consignee - грузополучатель

•Consignment - партия товара

• Port o fshipment - порт отгрузки, порт отправления груза

•Freight charges - расходы по фрахту

•Over the ship's rail - через поручни судна

•FCA -франко-перевозчик£МЛ-алг^й^к а р ^ н л а

Exercise 1. Read the text and answer the questions

Goods are most often carried by sea as a result o f a sales contract (or sale of goods contract) made between the seller and buyer. The contract o f carriage, which is separate, M e t t ü t as a result of this sales contract. There is a number of persons who are involved in transportation by sea.

Contracts for the sale of goods usually include provisions covering 3 im portant

p o in ts:

a)the time or circumstances of the ^DSSSSI Z *o ftitte ^(ownership) of the goods from seller to buyer;

b)the time when payment becomes due;

c)the time when the risk (o f loss or damage) passes from seller to buyer.

These points are normally addressed in international sale o f goods contracts by incorporation of one of a set of mutually-agreed standard trade terms named INCOTERMS.

Incoterms are a set of international rules for the interpretation o f the most commonly

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used trade terms. There are 11 main terms and several secondary terms. These denote the points at which shipper, carrier and consignee risk and responsibility start and end.

This set of international rules was fn^published in 1936 M^W Q JTERM S 1936’ by the International Chamber of Commerce. Incoterms are a ^ ^ ^ i eveiyTO years.

They were last amended in 2010 and came into force on the 1st January 2011. Four incoterms (DDU поставка без оплаты пошлины, DAF поставка до границы, DEQ поставка с пристани, DES поставка с судна) were substituted by two new terms DAT (поставка на терминале) and DAP (поставка в пункте) which can be used as intermodal terms.

Incoterms are r&ffignizfcd globally by cffiicts^and other aut{iontie|^^^ue^jy, parties to acontract are und ^ fe Tof the different trading practices in their respecfi^ ^ o im ^ e s . This knowledge can lead to misunderstanding and disputes between customer and

supplier. The incorporation of Incoterms in international sales reduces the risk.

The ^^^ o fT n co term s is limited to matters, relating to the rights and obligations o f the parties to the contract o f sale with respect to the delivery of goods sold. Incoterms deal only with the relation between sellers and buyers under the contract of sale.

While it’s essential for exporters and importers to consider the very practical relationship between the various contracts needed to perform an international sales transaction - where not only the contract of sale is required, but also contracts o f carriage, insurance and financing - Incoterms relate to only one of these contracts, namely the contract of sale. Further, they deal with the obligations to clear the goods for export and import, the packing of goods, the buyer’s obligation to take delivery as well as the obligation to provide proof that the respective obligations have been dulyfulfilled. Although Incoterms are extremely important for the implementation o f the contract o f sale, a great number of problems which may occur in such a contract are not dealt with at all, like transfer o f ownership and other property rights, breaches o f contract and the consequences following from such breaches as well as exemptions from liability in certain situations. Incoterms are not intended to replace such contract terms that are needed for a complete contract of sale.

From the top (ExW) to the bottom (DDP) in the table, the seller gathers more responsibility and the pint of transfer of property (i.e. the right of ownership) in the transport chain moves from the seller’s premises towards the buyer’s premises.

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T erm s in ita lics a re fo r m a r itim e tr a n s p o r t o n ly . T h e o th e r te r m s a p p ly to a ll tr a n sp o r t m o d es 1

11 INCOTERMS are defined, which can be arranged into 4 groups: E, F, C, D according to the seller’s basic obligations as follows:

GROUP E - where the goods are to be made available to the buyer at the seller’s premises; seller’s obligations are limited by passing the goods into the buyer’s possession;

GROUP F - where the seller must deliver the goods to a carrier appointed by the buyer; seller’s obligations are limited by the dispatch of the goods;

GROUP C - where the seller must contract for the carriage of the goods without bearing the risk of loss or damage to the goods or additional costs following shipment;

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G R O U P D - w here the seller has to bear all costs and risks required to bring the goods

to their destination.

IN C O TER M S can be further grouped into 2 basic categories: term s suitable for use in contracts involving water transport, and term s suitable for all transport modes.

1.Why is it so important to use Incoterms?

2.When was the set o f Incotermsfirst published?

3.What do Incoterms deal with?

4.Who has to recognize Incoterms?

5.What can lack o f knowledge o f the Incoterms lead to?

6.What type o f contracts is usually required to perform an international sale

transaction?

7.What are the principles o fIncoterms classification?

8.What are the new amendments o f 2010?

9.What is the difference between Incoterm groups?

Exercise 2. Fill in the table using thefollowing scheme

Incoterms 2010: Transfer of risk from the seller to the buyer

____ 1rou3p0rtЛшпгажоpaid_____ ^

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Exercise 3. Match incoterms with their Russian explanation. Translate sentences into English

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Р. Продавец доставит товар названному им перевозчику, он обязан оплатить расходы, связанные с перевозкой товара до названного пункта назначения и 6. CIF обеспечить страхованием от рисков потери и повреждения во время перевозки в пользу покупателя. Покупатель берет на себя все риски до

доставки._______________________________________

Exercise 4. Fill in the gaps with the missing verbs to form fixed expressions. Underline the complete expressions. Use the appropriateform o fthe verb

(10)c-fee.PA to the carrier.

Exercise 5. Complete the obligations of seller and buyer (CIF and FOB) using the following English equivalents

■atrown^expens^ -proofcqfdeHyery- ‘dutiesiandttaxes^ -providegoods- pay*eost advise beaprisk-ofloss- £88P&fpre^hipmentexpensesr obtain-offimalfrerttiission

-^etivckzgoods exportilicenee gfognotiee -assisUWith -*poft?ofiloadihg ap^g&insumnce' -Jn&eeordanG&with

FOB - free on board

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For example, when goods are sold “FOB Liverpool” the seller bears all costs and risks until the goods have passed the ship’s rail at the loading port Liverpool. He must obtain a B/L and other necessary documents and send them to the buyer. 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. He bears 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.

T h e m a in b e n e fit to th e b u y e r w h e n h e b u y s o n a F O B b a sis: 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 market.

C I F - c o st, in s u r a n c e , fr e ig h t

For example, when goods are sold “CIF Kobe” 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.

T h e m a in b e n e fit o f a C IF c o n tr a c t: CIF allows the sale of goods by the sale of the documents, and is therefore the preferred trade term where the documentaiy credit system is used. The banks involved can obtain security for their credit advance by holding the documents that represent the goods.

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Exercise 6. Learn different types of FOB and CIF. Translate the definitionsfrom Russian into English

FOB, stowedfree on board andfree stowed - FOB сукладкой

Покупатель, купив товар на условии FOB, фрахтует судно на условии ‘Free in stowage’ Судовладелец освобождается от расходов по погрузке и укладке груза.

FOB ex stowage and trimming - FOB без укладки и штивки

Ему соответствует условие фрахтования ‘Free in stowage and trimming; ship’s/charterer’s account’ Судно свободно от расходов по погрузке, но укладка и штивка за счет судовладельца/фрахтователя.

FOB liner terms - FOB линейныеусловия

Ему соответствует условие ‘Free in liner terms’ Судно fсвободно на линейных условиях - расходы по оплате погрузочно-разгрузочных работ несет перевозчик, они

компенсируются грузополучателем за счет повышенной фрахтовой ставки.

/

CIF Free Out (FO)

Расходы по выгрузке несет; покупатель, судовладелец освобожден от этих расходов, поскольку продавец фрахтовал его на условии ‘Free discharge (FD) Условие FIOS (free in and out and stowage) освобождает судовладельца не только от расходов по выгрузке,' но также от расходов по погрузке, укладке и штивке.

CIFLiner terms

Организация выгрузки относится на судовладельца по обычаям линейного судоходства в данной 'порту за счет тарифа, оплачиваемого продавцом. Условия фрахтования LI/FO (liner in/free. out) предполагает оплату расходов по погрузке перевозчиком, а по выгрузке - грузополучателем.

Exercise 6. Which incoterm was used in each case?

1. When we imported T-Shirts from the US, we only had to organize transportation - the Co in NY did eveiything else. EX\J -

2.We offered our customer in Argentina very favourable ternis of delivery; he only had to pay duty. QAP/DDP

3.I arranged for the goods to be sent as far as the terminal; after that, it was up to the

importer to do everything else. 0 A T

4.We didn’t have to lift a finger - the exporter did everything. DO P

^We had to arrange insurance as well as paying to transport the last load of goods we imported. CJT / C F R

6.I sent the importer the necessary information about the carriage charges he had to

pay, and he organized insurance and transportation himself. C IF

7.I paid for the goods to be transported to the docks at Dover. Afterwards they became the buyer’s responsibility. PAP

8.I paid all costs involved in getting the goods to Portugal, but left the costs of unloading to the importer. 0 A P

9.I paid all the costs involved in getting the goods to Brazil, but the buyer took over the risk from the time the goods were loaded onto the ship in London. C l F

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