Five reasons to choose sea freight as your mode of transport

POSTED ON 28/05/2024
In the world of transport, the abundance of options can be confusing, but sea freight stands
out for many reasons. In this blog post, we’ll go through five valid reasons why ocean
freight is often an excellent choice for your transport needs. From cost-effectiveness and
the possibility of large volumes to more environmentally friendly alternatives, ocean freight
offers a wide range of benefits. We explore how these factors can influence your logistics
decisions and help you optimise your supply chain.

1. Variety of options
When it comes to transporting goods by sea, different options offer flexibility and efficiency for
different needs:

1. Container freight is one of the most common ways to transport goods. Containers
standardize shipments and make loading, unloading and storage efficient.
2. Mafi is a flatbed truck designed to transport heavy and bulky goods, such as heavy
machinery and vehicles that cannot fit or fit into containers. With Mafi trailers, cargo
is driven directly onto the ship, making them the ideal choice for hard-to-handle
goods.
3. Breakbulk is a traditional form of chartering where large or heavy loads, such as steel
beams or large machinery, are loaded directly into the hold or deck of a ship without
containers. Breakbulk chartering is essential for many goods that exceed the
dimensions or weight limits of containers.
4. RoRo (Roll-on/Roll-off) ships are designed to transport goods on wheels, such as cars,
tractors and other vehicles. The goods are driven directly onto the ship via a ramp,
making loading and unloading fast and efficient.
2. Less restrictions
One of the key advantages of ocean freight is that it has less restrictions on the weight and size of
the load. Unlike air freight, for example, where weight and volume are critical factors in
determining rates, ocean freight allows larger and heavier goods to be transported economically.

This feature is particularly important for large industrial projects, such as infrastructure
construction or the supply of special machinery, where individual components can be very large
and heavy. Ocean freight offers the flexibility to plan and execute transports where other
alternatives are simply not enough.

3. Global network
Shipping routes extend to every corner of the globe, giving ocean freight a unique position to
reach global markets. The world’s major ports are strategically located, facilitating the flow of
goods between continents.
This infrastructure enables large and complex supply chains that support international trade and
economic cooperation. Through major ports, companies can efficiently manage their supply and
meet global demand, which is critical, especially for industries where production lines and
markets are geographically dispersed.

4. Energy efficiency
Ocean freight is known for its energy efficiency, as it consumes significantly less energy per
tonne transported per kilometre compared to other modes of transport, such as air freight or road
transport. This efficiency is partly due to the ability of cargo ships to carry large quantities of
goods at a time, reducing the need for multiple, shorter voyages.

Ocean carriers also emit less carbon dioxide per ton than other modes of transport, making them
a more environmentally friendly option in the global supply chain.

5. Lower costs
Ocean freight is known to be a cost-effective mode of transport, especially for large and heavy
shipments. The ability of large cargo ships to carry huge quantities of goods in a single voyage
allows the cost of transport to be spread over a larger volume of goods, which significantly
reduces unit costs. In addition, the long routes and planned scheduling of ocean-going cargo
ships reduce fuel consumption compared to, for example, shorter and frequently changing air
routes.

Fuel savings are a key factor in the cost-efficiency of maritime transport. Cost efficiency makes
ocean freight an attractive option for many companies seeking to optimise their logistics costs on
a global scale.

The freight market

[edit]
The freight market consists of shipowners, charterers and brokers. They use four types of
contractual arrangements: the voyage charter, the contract of affreightment, the time charter and
the bareboat charter. Shipowners contract to carry cargo for an agreed price per tonne while the
charter market hires out ships for a certain period. A charter is legally agreed upon in a charter-
party in which the terms of the deal are clearly set out.

Freight derivatives
[edit]
Freight derivatives, which includes forward freight agreements (FFA), container freight swap
agreements, container freight derivatives, physical-deliverable freight derivatives, and options
based on these, are financial instruments for trading in future levels of freight rates, for dry
bulk carriers, tankers and containerships. These instruments are settled against various freight
rate indices published by the Baltic Exchange (for Dry and most Wet contracts), Shanghai
Shipping Exchange (International and domestic Dry Bulk, and International Containers), and
Platt's (Asian Wet contracts), or physical delivered through Shanghai Shipping Freight
Exchange.

FFAs are often traded through broker members of the Forward Freight Agreement Brokers
Association (FFABA), such as Arrow Futures, Clarkson's Securities, Marex Spectron, SSY
- Simpson Spence & Young, Braemar Seascope LTD, Freight Investor Services, BGC
Partners, GFI Group, ACM Shipping Ltd, BRS, Tradition-Platou and ICAP. Trades can be given
up for clearing by the broker to one of the clearing houses that support such trades, or be
executed in integrated electronic exchange. There are five clearing houses for freight: NOS
Clearing/NASDAQ OMX, EEX, CME Clearport, ICE Futures Europe and SGX, and one
electronic exchange: Shanghai Shipping Freight Exchange. Freight derivatives are primarily used
by shipowners and operators, oil companies, trading companies, and grain houses as tools for
managing freight rate risk. Recently, with commodities standing at the forefront of international
economics, the large financial trading houses, including banks and hedge funds, have entered the
market.

Baltic Dry Index measures the cost for shipping goods such as iron ore and grains. The trading
volume of dry freight derivatives, a market estimated to be worth about $200 billion in 2007,
grew as those needing ships attempted to contain their risks and investment banks and hedge
funds looked to make profits from speculating on price movements. At the close of the 2007
financial year, the number of traded lots on dry FFAs doubled the derived physical product. [citation
needed]

Shanghai Shipping Freight Exchange is the first electronic shipping freight exchange in the
world. It has three lines of businesses, including International Dry Bulk, Domestic Coastal Coal,
and International Container. The container freight derivatives were launched in 2011 and shortly
became the most liquid container freight contracts. Based on the success and experience from
container freight contracts, SSEFC launched coastal coal contracts in 2012. In 2014, in order to
better achieve the risk shifting effect of shipping freight derivatives, SSEFC innovated and
launched the world's first physical-deliverable shipping capacity contract.

The sale and purchase market

[edit]
In the sale and purchase market, second-hand ships are traded between shipowners. The
administrative procedures used are roughly the same as in the real-estate business, using a
standard contract. Trading ships is an important source of revenue for shipowners, as the prices
are very volatile. The second hand value of ships depends on freight rates, age, inflation and
expectations.

The shipbuilding market

[edit]
The newbuilding market deals with transactions between shipowners and shipbuilders. Contract
negotiation can be very complex and extend beyond price. They also cover ship specifications,
delivery date, stage payments and finance. The prices on the newbuilding market are very
volatile and sometimes follow the prices on the sale and purchase market.
The demolition market
[edit]
On the demolition market, ships are sold for scrap. The transactions happen between shipowners
and demolition merchants, often with speculators acting as intermediaries.

The supply of vessels

The supply of vessels is an extremely important element of efficient maritime trade operations.
Properly equipping vessels is crucial for the safety and comfort of the crew, as well as for the
efficiency of transporting goods. What does such supply involve? In this article, we will try
to explain this using the example of our company.
What does basic supply of maritime vessel include?
Basic supply of maritime vessels encompasses everything necessary for the vessel's functioning
at sea. One of the key elements, of course, is supply ships with provision. For long voyages, it is
necessary to provide an adequate amount of food for the entire crew. The supply of vessels with
food must consider the diversity of products to ensure a balanced diet for all crew members.
Additionally, it includes the provision of drinking water, which is essential for the crew's
survival and for carrying out various technological processes on board. Tobacco and alcoholic
products are also often provided as part of basic supply.

Technical supply of ships – what does it mean in practice?

In addition to the basic needs of the crew, an essential element of supply of maritime vessels is
their technical equipment. In practice, this means providing all necessary spare parts, ship
equipment, and consumables, such as lubricants and fuel. Additionally, the service also covers
the provision of ship chemicals, life-saving and fire-fighting equipment, as well as tools and
accessories necessary to maintain the vessel's proper technical condition. For large vessels such
as container ships or tankers, specialized equipment for loading and unloading goods is also
necessary.
Protectionism, sometimes referred to as trade protectionism, is the economic policy of
restricting imports from other countries through methods such as tariffs on imported
goods, import quotas, and a variety of other government regulations. Proponents argue that
protectionist policies shield the producers, businesses, and workers of the import-competing
sector in the country from foreign competitors and raise government revenue. Opponents argue
that protectionist policies reduce trade, and adversely affect consumers in general (by raising the
cost of imported goods) as well as the producers and workers in export sectors, both in the
country implementing protectionist policies and in the countries against which the protections are
implemented.[1]

Protectionism has been advocated mainly by parties that hold economic nationalist[a] positions,
while economically liberal[b] political parties generally support free trade.[2][3][4][5][6]

There is a consensus among economists that protectionism has a negative effect on economic
growth and economic welfare,[7][8][9][10] while free trade and the reduction of trade barriers have a
significantly positive effect on economic growth.[8][11][12][13][14][15] Some scholars, such
as Douglas Irwin, have implicated protectionism as the cause of some economic crises, most
notably the Great Depression.[16] On the contrary, Paul Krugman, winner of the Nobel Prize for
Economics, argues that tariffs had no negative impact during the Great
Depression.[17] Although trade liberalization can sometimes result in large and unequally
distributed losses and gains, and can, in the short run, cause significant economic dislocation of
workers in import-competing sectors,[18][19] free trade often lowers the costs of goods and
services for both producers and consumers.[20]

Protectionist policies
[edit]
Main article: Tariff

Logo of Belgium's National League for the Franc's Defense,

1924
A variety of policies have been used to achieve protectionist goals. These include:

• Tariffs and import quotas are the most common types of protectionist policies.[21] A tariff is
an excise tax levied on imported goods. Originally imposed to raise government revenue,
modern tariffs are now used primarily to protect domestic producers and wage rates from
lower-priced importers. An import quota is a limit on the volume of a good that may be
legally imported, usually established through an import licensing regime.[21]
• Protection of technologies, patents, technical and scientific knowledge [22][23][24]
• Restrictions on foreign direct investment,[25] such as restrictions on the acquisition of
domestic firms by foreign investors.[26]
• Administrative barriers: Countries are sometimes accused of using their various
administrative rules (e.g., regarding food safety, environmental standards, electrical safety,
etc.) as a way to introduce barriers to imports.
• Anti-dumping legislation: "Dumping" is the practice of firms selling to export markets at
lower prices than are charged in domestic markets. Supporters of anti-dumping laws argue
that they prevent the import of cheaper foreign goods that would cause local firms to close
down. However, in practice, anti-dumping laws are usually used to impose trade tariffs on
foreign exporters.
• Direct subsidies: Government subsidies (in the form of lump-sum payments or cheap loans)
are sometimes given to local firms that cannot compete well against imports. These subsidies
are purported to "protect" local jobs and to help local firms adjust to the world markets.
• Export subsidies: Export subsidies are often used by governments to increase exports. Export
subsidies have the opposite effect of export tariffs because exporters get payment, which is a
percentage or proportion of the value of exported. Export subsidies increase the amount of
trade, and in a country with floating exchange rates, have effects similar to import subsidies.
• Exchange rate control: A government may intervene in the foreign exchange market to lower
the value of its currency by selling its currency in the foreign exchange market. Doing so
will raise the cost of imports and lower the cost of exports, leading to an improvement in
its trade balance. However, such a policy is only effective in the short run, as it will lead to
higher inflation in the country in the long run, which will, in turn, raise the real cost of
exports, and reduce the relative price of imports.
• International patent systems: There is an argument for viewing national patent systems as a
cloak for protectionist trade policies at a national level. Two strands of this argument exist:
one when patents held by one country form part of a system of exploitable relative advantage
in trade negotiations against another, and a second where adhering to a worldwide system of
patents confers "good citizenship" status despite 'de facto protectionism'. Peter
Drahos explains that "States realized that patent systems could be used to cloak protectionist
strategies. There were also reputational advantages for states to be seen to be sticking to
intellectual property systems. One could attend the various revisions of the Paris and Berne
conventions, participate in the cosmopolitan moral dialogue about the need to protect the
fruits of authorial labor and inventive genius...knowing all the while that one's domestic
intellectual property system was a handy protectionist weapon." [27]
• Political campaigns advocating domestic consumption (e.g. the "Buy American" campaign in
the United States, which could be seen as an extra-legal promotion of protectionism.)
• Preferential governmental spending, such as the Buy American Act, federal legislation which
called upon the United States government to prefer US-made products in its purchases.
In the modern trade arena, many other initiatives besides tariffs have been called protectionist.
For example, some commentators, such as Jagdish Bhagwati, see developed countries' efforts in
imposing their own labor or environmental standards as protectionism. Also, the imposition of
restrictive certification procedures on imports is seen in this light.

Further, others point out that free trade agreements often have protectionist provisions such as
intellectual property, copyright, and patent restrictions that benefit large corporations. These
provisions restrict trade in music, movies, pharmaceuticals, software, and other manufactured
items to high-cost producers with quotas from low-cost producers set to zero.

Ship registration is the process by which a ship is documented and given the nationality of the
country to which the ship has been documented. The nationality allows a ship to travel
internationally as it is proof of ownership of the vessel.[1]
International law requires that every ship be registered in a country, called its flag state.[2] A ship
is subject to the law of its flag state.[1] It is usual to say that the ship sails under the flag of the
country of registration.

A ship's flag state exercises regulatory control over the vessel and is required to inspect it
regularly, certify the ship's equipment and crew, and issue safety and pollution prevention
documents. The organization which actually registers the ship is known as its registry. Registries
may be governmental or private agencies. In some cases, such as the United States' Alternative
Compliance Program, the registry can assign a third party to administer inspections. [3]

A register that is open only to ships of its own nation is known as a traditional or national
register. Registers that are open to foreign-owned ships are known as open registries and are
sometimes called flags of convenience.

History
[edit]
Ship registration has been done since business on the seas has been important. Originally meant
to control ships carrying cargo in European seafaring countries,[1] it was used to make sure ships
were being built in the local country, with crews predominantly of the local country.[4] Since
then, ship registration has been used to document ships for ownership. Documentation provides
definite evidence of nationality for international purposes and provides financing opportunities
with the availability of preferred mortgages on documented vessels.[5]

Requirements for registration

[edit]
Vessels that operate internationally or cross international borders are required to be registered.
Some jurisdictions also require vessels that only operate in territorial waters to register on their
national register, and some forbid foreign-flagged vessels from trading between ports within the
country (a practice known as cabotage). The country of registration is a ship's flag state and
determines its nationality as well as which country's laws govern its operation and the behavior
of its crew.[1] A country will specify legal requirements for registration of a ship in its domestic
laws, for example, in the UK, the Merchant Shipping Act 1995 details British law on entitlement
for ship registration, including qualifications, pre-conditions and the machinery for
registration.[6]

Each registry has its own rules as to the types of vessels that it will accept for registration. The
Liberian Registry, for example, registers seagoing vessels of more than 500 net tons that conduct
foreign trade. Vessels over the age of 20 require a waiver as well as the vessel's classification
society being willing to issue statutory certificates to the vessel. Vessels 15 years or older must
have a Status Report of the vessel's Special Survey to be reviewed by Marine Safety. [7] Registries
charge a registration fee.

Link to flag state

[edit]
There must be a "genuine link" between a vessel and its flag state. Article 5(1) of the Geneva
Convention on the High Seas of 1958, which came into effect in 1962, requires that "the state
must effectively exercise its jurisdiction and control in administrative, technical and social
matters over ships flying its flag."[8] There are 63 states party to that Convention. The principle
was repeated in Article 91 of the United Nations Convention on the Law of the Sea of 1982
(UNCLOS), which came into effect in 1994.[2] That Convention has 167 parties.

In 1986, the United Nations Conference on Trade and Development attempted to solidify the
genuine link concept in the United Nations Convention on Conditions for Registration of
Ships.[9] The Convention on Conditions for Registration of Ships would require that a flag state
be linked to its ships either by having an economic stake in the ownership of its ships or by
providing mariners to crew the ships.[9] To come into force, the 1986 treaty requires 40
signatories whose combined tonnage exceeds 25% of the world total.[9] To date, only 14
countries have signed the treaty.[9]

National or closed registries typically require that a ship be owned by national interests, and at
least partially crewed by its citizens. Open registries do not have such requirements; some offer
on-line registration, and one guaranteed completion in less than a day.[10]

Unflagged vessels
[edit]
Ships operated illegally, such as by pirates, or narco-submarines, are not normally registered by
the operators (although a registered ship may be captured or used covertly for illegal purposes).

Port State Control

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• Our Work
• Member State Audit Scheme
• Port State Control

Port State Control (PSC) is the inspection of foreign ships in national ports to verify that the
condition of the ship and its equipment comply with the requirements of international regulations

and that the ship is manned and operated in compliance with these rules.

Many of IMO's most important technical conventions contain provisions for ships to be

inspected when they visit foreign ports to ensure that they meet IMO requirements.
These inspections were originally intended to be a back up to flag State implementation, but

experience has shown that they can be extremely effective. The Organization adopted resolution

A.682(17) on Regional co-operation in the control of ships and discharges promoting the

conclusion of regional agreements. A ship going to a port in one country will normally visit other

countries in the region and it can, therefore, be more efficient if inspections can be closely

coordinated in order to focus on substandard ships and to avoid multiple inspections.

This ensures that as many ships as possible are inspected but at the same time prevents ships

being delayed by unnecessary inspections. The primary responsibility for ships' standards rests

with the flag State - but port State control provides a "safety net" to catch substandard ships.

Nine regional agreements on port State control - Memoranda of Understanding or MoUs - have

been signed: Europe and the north Atlantic (Paris MoU); Asia and the Pacific (Tokyo MoU);

Latin America (Acuerdo de Viña del Mar); Caribbean (Caribbean MoU); West and Central

Africa (Abuja MoU); the Black Sea region (Black Sea MoU); the Mediterranean (Mediterranean

MoU); the Indian Ocean (Indian Ocean MoU); and the Riyadh MoU. The United States Coast

Guard maintain the tenth PSC regime.

IMO hosted six Workshops for PSC MoU/Agreement Secretaries and Database Managers. The

Workshops were funded by the IMO Technical Cooperation Fund and aimed to provide support
to regional port State control regimes by establishing a platform for cooperation and also

providing a forum for the people involved to meet and exchange ideas and experiences. They

also aimed to encourage harmonization and coordination of PSC activities and the development

of practical recommendations which can be forwarded to IMO for further examination by the

Organization's relevant Committees and Sub-Committees.

The reports of the six past workshops are available on IMODOCS under "meeting

documents/others/PSCWS".

Ship classification society

A ship classification society or ship classification organisation is a non-governmental
organization that establishes and maintains technical standards for the construction and operation
of ships and offshore structures. Classification societies certify that the construction of a vessel
complies with relevant standards and carry out regular surveys in service to ensure continuing
compliance with the standards. Currently, more than 50 organizations describe their activities as
including marine classification, twelve of which are members of the International Association of
Classification Societies.[1]

A classification certificate issued by a classification society recognised by the proposed ship

register is required for a ship's owner to be able to register the ship and to obtain marine
insurance on the ship, and may be required to be produced before a ship's entry into some ports
or waterways, and may be of interest to charterers and potential buyers. To avoid liability,
classification societies explicitly disclaim responsibility for the safety, fitness for purpose,
or seaworthiness of the ship, but is a verification only that the vessel is in compliance with the
classification standards of the society issuing the classification certificate. [2][3]

Classification societies also issue International Load Line Certificates in accordance with the
legislation of participating states giving effect to the International Convention on Load
Lines (CLL 66/88).

Responsibilities
[edit]
Classification societies set technical rules based on experience and research, confirm that designs
and calculations meet these rules, survey ships and structures during the process of construction
and commissioning, and periodically survey vessels to ensure that they continue to meet the
rules. Classification societies are also responsible for classing oil platforms, other offshore
structures, and submarines. This survey process covers diesel engines, important shipboard
pumps and other vital machinery. Since the 1950s, the USSR (now Russian) Register of
Shipping has classified nuclear ships, the only classification society to do so.

Classification surveyors inspect ships to make sure that the ship, its components and machinery
are built and maintained according to the standards required for their class.

History
[edit]
In the second half of the 18th century, London merchants, shipowners, and captains often
gathered at Edward Lloyd's coffee house to gossip and make deals including sharing the risks
and rewards of individual voyages. This became known as underwriting after the practice of
signing one's name to the bottom of a document pledging to make good a portion of the losses if
the ship didn't make it in return for a portion of the profits. It did not take long to realize that the
underwriters needed a way of assessing the quality of the ships that they were being asked to
insure. In 1760, the Register Society was formed — the first classification society and the one
which would subsequently become Lloyd's Register — to publish an annual register of ships.
This publication attempted to classify the condition of the ship's hull and equipment. At that
time, an attempt was made to classify the condition of each ship on an annual basis. The
condition of the hull was classified A, E, I, O or U, according to the state of its construction and
its adjudged continuing soundness (or lack thereof). Equipment was G, M, or B: simply, good,
middling or bad. In time, G, M and B were replaced by 1, 2 and 3, which is the origin of the
well-known expression 'A1', meaning 'first or highest class'. The purpose of this system was not
to assess safety, fitness for purpose or seaworthiness of the ship. It was to evaluate risk.

Samuel Plimsoll pointed out the obvious downside of insurance:

"The ability of shipowners to insure themselves against the risks they take not only with
their property, but with other peoples’ lives, is itself the greatest threat to the safe
operation of ships."[4]
The first edition of the Register of Ships was published by Lloyd's Register in 1764 and was
for use in the years 1764 to 1766.

Bureau Veritas (BV) was founded in Antwerp in 1828, moving to Paris in 1832. Lloyd's
Register reconstituted in 1834 to become 'Lloyd's Register of British and Foreign Shipping'.
Where previously surveys had been undertaken by retired sea captains, from this time
surveyors started to be employed and Lloyd's Register formed a General Committee for the
running of the Society and for the Rules regarding ship construction and maintenance, which
began to be published from this time.

In 1834, the Register Society published the first Rules for the survey and classification of
vessels, and changed its name to Lloyds Register of Shipping. A full-time bureaucracy of
surveyors (inspectors) and support personnel was put in place. Similar developments were
taking place in the other major maritime nations.

The adoption of common rules for ship construction by Norwegian insurance societies in the
late 1850s led to the establishment of Det Norske Veritas (DNV) in 1864. RINA was
founded in Genoa, Italy in 1861 under the name Registro Italiano Navale, to meet the needs
of Italian maritime operators. Germanischer Lloyd (GL) was formed in 1867 and Nippon
Kaiji Kyokai (ClassNK) in 1899. The Russian Maritime Register of Shipping (RS) was an
early offshoot of the River Register of 1913.

As the classification profession evolved, the practice of assigning different classifications has
been superseded, with some exceptions. Today a ship either meets the relevant class society's
rules or it does not. As a consequence, it is either 'in' or 'out' of 'class'. Classification societies
do not issue statements or certifications that a vessel is 'fit to sail' or 'unfit to sail', merely that
the vessel is in compliance with the required codes. This is in part related to legal liability of
the classification society. However, each of the classification societies has developed a series
of notations that may be granted to a vessel to indicate that it is in compliance with some
 additional criteria that may be either specific to that vessel type or that are in excess of the
standard classification requirements. See Ice class as an example.

There have always been concerns that competitive pressure might lead to falling standards –
as expressed for example by the European Commission.[5] To counteract class hopping, in
2009, the International Association of Classification Societies (IACS) implemented the
Transfer of Class Agreement (TOCA),[6] whereby no member would accept a ship that had
not carried out improvements demanded by its previous class society.

List of classification societies

[edit]

hide

Name Abbreviation Date Head office IACS member?

Lloyd's Register LR 1760 London Yes

Bureau Veritas BV 1828 Paris Yes

Austrian Veritas/Adriatic AV 1858– Trieste[citation —

Veritas[7] 1921 needed]

Registro Italiano Navale RINA 1861 Genoa Yes

American Bureau of Shipping ABS 1862 Houston Yes

DNV (Det Norske Veritas) DNV 1864 Oslo Yes

Germanischer Lloyd[8] GL 1867– Hamburg No

2013

Nippon Kaiji NK 1899 Tokyo Yes

Kyokai (ClassNK)

Russian Maritime Register of RS 1913 Saint No

Shipping Petersburg
(Российский морской
регистр судоходства)

Hellenic Register of Shipping HR 1919 Piraeus No

Polish Register of Shipping PRS 1936 Gdańsk Yes

(Polski Rejestr Statków)

Phoenix Register of Shipping PHRS 2000 Piraeus No

Korean Classification Society KCS 1947 Pyongyang No

Croatian Register of Shipping CRS 1949 Split Yes

(Hrvatski Registar Brodova)

Bulgarian Register of BRS (БКР) 1950 Varna No

Shipping
(Български Корабен
Регистър)

CR Classification Society CR 1951 Taipei No

China Classification Society CCS 1956 Beijing Yes

Turk Loydu TL 1962 Istanbul Yes

Korean Register of Shipping KR 1960 Busan Yes

Indonesian Classification BKI 1964 Jakarta No

Bureau [id]
(Biro Klasifikasi Indonesia)

Vietnam Register VR 1964 Hanoi No

Registro Internacional RINAVE 1973– Lisbon No
Naval[9] 2004

Indian Register of Shipping IRCLASS 1975 Mumbai Yes

(IRS)

International Register of IRS 1993 Miami No

Shipping

Shipping Register of Ukraine RU (РУ) 1998 Kyiv No

(Регістр судноплавства
України)

Dromon Bureau of Shipping DBS 2003 Piraeus No

Overseas Marine Certification OMCS 2004 Panama No

Services

Iranian Classification Society ICS 2006 Tehran No

Maritime Bureau of Africa MBA 2014 Cape Town No

International Maritime Classification IMC 2015 Dubai No

Dutch Lloyd DL 2018 Eindhoven No

Asia Classification Society ACS 1980 Tehran No

Registro Brasileiro de Navios e Aeronaves RBNA 1982 Rio de Janeiro No

MY Classification MYC 2021 Malaysia No

 Ships Classification Malaysia SCM 1994 Malaysia No

UNIT II

Tonnage, in shipping, the total number of tons registered or carried or the total carrying
capacity.

Gross tonnage (GT) is calculated from the formula GT = K1V, where V is the volume of
a ship’s enclosed spaces in cubic metres and K1 is a constant calculated by K1 = 0.2 +
0.02 log10 V. The measurement is used in assessing harbor dues and canal transit dues for
merchant ships.

Deadweight tonnage (DWT) is a measurement of total contents of a ship including cargo, fuel,
crew, passengers, food, and water aside from boiler water. It is expressed in long tons of 2,240
pounds (1,016.0469088 kilograms).

Displacement tonnage is used to define the size of naval ships. It refers to the weight of the
volume of water displaced by a vessel in normal seagoing condition.

“Load line is a special marking positioned amidships which depicts the draft of the vessel and the
maximum permitted limit in distinct types of waters to which the ship can be loaded.” When the
load line is drawn over the output characteristic curve in a graph, it makes contact at a point
known as the operating point/ quiescent point or Q-point.

As a result of the numerous maritime accidents that have happened at sea due to the overloading
of vessels, the significance of having a standard maximum limit for ships was identified long
before. However, it took many years to have an International agreement for the universal
application of Load lines.

It was in 1930 when the first International Load Line Convention took place, after which it was
periodically amended until the latest one in 2003.
 Safety regulations for different types of ships

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• Our Work
• Maritime Safety
• Safety regulations for different types of ships

While there are no universally applicable definitions of ship types, specific descriptions and

names are used within IMO treaties and conventions. The following is a non-exhaustive list ship

types defined in various IMO instruments:

• A passenger ship is a ship which carries more than twelve passengers. (SOLAS I/2)

• A fishing vessel is a vessel used for catching fish, whales, seals, walrus or other living resources
of the sea. (SOLAS I/2)

• Fishing vessel means any vessel used commercially for catching fish, whales, seals, walrus or

other living resources of the sea. (SFV 1993 article 2)

• A nuclear ship is a ship provided with a nuclear power plant. (SOLAS I/2)
• Bulk carrier means a ship which is constructed generally with single deck, top-side tanks and

hopper side tanks in cargo spaces, and is intended primarily to carry dry cargo in bulk, and

includes such types as ore carriers and combination carriers. (SOLAS IX/1.6)

• Bulk carrier means a ship which is intended primarily to carry dry cargo in bulk, including such

types as ore carriers and combination carriers. (SOLAS XII/1.1)

• Oil tanker means a ship constructed or adapted primarily to carry oil in bulk in its cargo spaces

and includes combination carriers, any "NLS tanker" as defined in Annex II of the present

Convention and any gas carrier as defined in regulation 3.20 of chapter II-1 of SOLAS 74 (as

amended), when carrying a cargo or part cargo of oil in bulk. (MARPOL Annex I reg. 1.5)

• General cargo ship: A ship with a multi-deck or single-deck hull designed primarily for the

carriage of general cargo. (MEPC.1/Circ.681 Annex)

• High-speed craft is a craft capable of travelling at high speed. (SOLAS X/1.2, HSC Code 2000

para 1.4.30)

• Mobile offshore drilling unit (MODU) means a vessel capable of engaging in drilling

operations for the exploration for or exploitation of resources beneath the sea-bed such as liquid

or gaseous hydrocarbons, sulphur or salt. (SOLAS IX/1, MODU Code 2009 para 1.3.40)

• Special purpose ship (SPS) means a mechanically self-propelled ship which by reason of its
function carries on board more than 12 special personnel. (SPS Code para 1.3.12)

1. Container ships

Container vessels are the workhorses of global trade, designed to efficiently transport standardized
cargo containers across the world’s oceans. These ships feature a distinctive box-like structure,
facilitating the secure stowage of containers in a uniform manner. Known for their high carrying
capacity, container vessels play an important role in the logistics chain, enabling the swift and
cost-effective movement of goods between ports. Equipped with advanced loading and unloading
systems, these vessels support the smooth transfer of containers, contributing significantly to the
modern interconnected global economy.
2. Bulk Carriers

Bulk carriers are essential in the maritime industry for transporting large quantities of dry bulk
commodities such as coal, ore and grain. Characterized by their large cargo holds, these vessels
lack the containerized structure, allowing for the direct loading and unloading of loose bulk
materials. Bulk carriers come in various sizes, accommodating different types of cargo, and are
vital for the efficient movement of raw materials, supporting industries worldwide. With their
straightforward design and focus on maximizing cargo volume, bulk carriers deliver important
resources to the global supply chain.

3. Tanker Vessels

Tankers are specialized vessels designed for transporting liquid cargo across the seas. They play a
key role in the global energy and chemical industries. Tankers are categorized based on the type
of cargo they carry, including crude oil tankers, chemical tankers, LNG carriers and LPG carriers.
Recognizable by their cylindrical storage tanks, these ships ensure the safe and efficient
transportation of liquids. Tankers are instrumental for supplying energy resources and chemicals
on a global scale, with advanced technologies and safety measures in place to handle the unique
challenges posed by liquid cargo.

4. Ro-Ro (Roll-on/Roll-off) Ships

Ro-Ro (Roll-on/Roll-off) ships are designed for the swift loading and unloading of vehicles and
other wheeled cargo. Their distinctive feature is built-in ramps, allowing vehicles to be driven
directly on and off the vessel, streamlining the process. Ro-Ro ships cater to a variety of cargo,
including cars, trucks, trailers and heavy machinery. This efficiency makes them a preferred choice
for short-sea routes and transoceanic journeys alike. With their versatility and accessibility, Ro-
Ro ships contribute significantly to the automotive industry and the transportation of oversized or
wheeled goods across international waters.

5. Reefer vessels

Reefer vessels, or refrigerated cargo ships, are designed to transport perishable goods such as fruits
and vegetables. Equipped with refrigeration systems, they maintain controlled temperatures,
ensuring the freshness and quality of cargo during transit. These ships have an important part to
play in the global supply chain for temperature-sensitive products.

6. Tugboats

Tugboats are robust vessels with the purpose of assisting larger ships in tight spaces like harbors.
With powerful engines and towing equipment, they ensure safe navigation, helping with docking,
undocking and towing operations. Tugboats have a key role in maritime logistics, enhancing the
maneuverability of larger vessels within ports and narrow waterways.
7. Offshore vessels (OSVs)

Offshore vessels are essential for supporting various activities in the offshore oil and gas industry.
These specialized ships provide crucial services, including the transportation of personnel,
equipment and supplies to and from offshore platforms. Offshore support vessels (OSVs) come in
various types, such as platform supply vessels (PSVs) and anchor handling tug supply (AHTS)
vessels, each serving a specific purpose. OSVs help ensure the smooth and safe operations of
offshore installations, contributing to the exploration, production and maintenance of energy
resources at sea.

8. Passenger Vessels

Passenger vessels are purpose-built for transporting people across various waterways, offering
diverse travel experiences. From short-distance ferries to luxurious ocean liners, these ships cater
to different needs. Passenger ferries efficiently link coastal areas and islands, providing essential
transportation services. Cruise ships, on the other hand, offer a leisurely and extravagant
experience with onboard amenities such as dining, entertainment and recreational facilities. As
such, the purpose of passenger vessels revolves around daily commutes or unforgettable vacations,
contributing to the tourism industry and global maritime connectivity.

9. Naval Ships

Naval ships are instrumental in safeguarding maritime interests and maintaining national security.
This category includes a diverse range of vessels designed for military purposes. Aircraft carriers
serve as mobile airbases, projecting power and providing strategic air support. Destroyers and
frigates are swift warships equipped for anti-submarine warfare and air defense. Submarines
operate beneath the surface, offering stealth and strategic capabilities. Patrol boats are agile,
patrolling coastal waters, while amphibious assault ships support marine landings. Overall, naval
ships are essential for securing maritime borders, deterring threats, and projecting force, playing a
critical role in a nation’s defense and global security.

10. Fishing vessels

Fishing vessels are specialized ships designed for harvesting marine resources and contributing to
the global seafood industry. Trawlers are equipped with nets to catch fish near the ocean floor,
while longliners use lines with baited hooks for specific species. Purse seiners encircle schools of
fish with a large net, and crabbers target crustaceans. These vessels often feature onboard facilities
for processing and storing catches, ensuring freshness. Fishing vessels play an important role in
meeting global seafood demand and supporting livelihoods, making them vital contributors to both
local economies and the broader food industry.

11. Research vessels

Research vessels are specialized ships designed for scientific exploration and data collection at
sea. Equipped with advanced instrumentation and laboratories, they facilitate studies in
oceanography, marine biology, geophysics and environmental science. These vessels often feature
specialized equipment such as sonar systems, remotely operated vehicles (ROVs) and sampling
tools to conduct research in deep-sea environments. Research vessels contribute significantly to
our understanding of marine ecosystems, climate change and natural resources, playing a
paramount role in advancing scientific knowledge and fostering innovation in various fields of
marine research.

Mr. Marine is you service partner

In summary, the maritime industry boasts a diverse fleet, each vessel playing a strategic role in
global operations. Container ships optimize trade routes, bulk carriers streamline resource
transport and tankers facilitate vital energy distribution. Passenger vessels contribute to leisure and
tourism, while tugboats ensure seamless port operations. Research vessels drive scientific
exploration, and offshore vessels sustain energy production. In this intricate network, each vessel
is a vital component, enhancing efficiency, connectivity and economic growth. As technology
advances and industries evolve, these maritime assets will continue to adapt, reinforcing their
significant contribution in the complex tapestry of international business and trade.

What is Dry Cargo Chartering?

The name says it all, doesn’t it? Any cargo shipped that is dry, solid and not in a liquid or gaseous state is
called dry cargo chartering. Whether it be iron ore, fabrics, rocks grains, steel etc, everything qualifies as dry
cargo. This dry cargo that is shipped in huge quantities is called Dry Cargo Chartering.
The demand for dry cargo chartering is growing rapidly. Over 3 billion tons of cargo is shipped each year.
Dry Cargo Chartering companies like Alphard Maritime help the charterers to ship the required cargo from
one place to another globally. Dry cargo chartering includes some being shipped globally, i.e.
Covering all the trade routes. There are many other things that are shipped as dry cargo parts such as metal,
scrap, steel, timber etc.

Following are the types of cargoes that can be shipped as a part of dry cargo chartering. Every type of cargo
is different and has its own challenges.

Hazardous cargo:
Hazardous cargo or dangerous goods consist of goods that are covered by the IMDG code. This particular
kind of cargo can be harmful and can pose threat to the health and safety of a person because of its
corrosive, flammable, poisonous nature or other properties. Safe storage and appropriate precautions need to
be taken while shipping dangerous goods.
Food-grade cargo:
Food-grade cargo is essentially the goods that consist of edible items, most of them require refrigeration so
as to preserve them throughout the voyage. These kinds of cargoes require a special container that has not
been used for storing any kinds of harmful substances or chemicals before.
Valuable cargo:
Valuable cargo is defined by IATA as a cargo that costs $1000 per kilo. This kind of cargo may consist of
highly expensive things like jewelry, bank documents, cash, medical equipment, high-end fashion items,
etc. Shipping this kind of cargo is a sensitive matter and needs absolute care and security. Utmost care needs
to be taken while shipping valuable cargo given the high-value of these items.
Dry cargo shipping is one of the most important parts of the shipping industry today. Not just in business but
the links of dry cargo chartering are present in objects we use in our day to day life. Like the food in your
refrigerator or the steel used for building the windows of your house, is all present because of dry cargo
chartering. This sector is the one that is always in a boom and is always going to be vital to make our day-to-
day life possible.

What is chartering?

Chartering is the term used to name the renting of a whole ship, in an agreement between a
shipowner and a renting party, in this case known as charterer, intermediated by a freight
forwarder or a shipbroker.

The charterer

The charterer is the individual or organization renting the ship. There are many common reasons
why a charterer rents a ship, it can be to transport their own cargo or to offer this service to
another party, or even to re-rent the ship to someone else for a profit.

In general, the charterer becomes responsible for the integrity of the vessel, its crew, and the
cargo carried, but we will get into specifics of the role of the charterer in each type of chartering
later on this post.

The shipowner

The shipowner is the individual or organization that owns ships, registered under their name.
Sometimes, shipowners have particular shipbrokers that work for them in order to find potential
charterers and ease negotiations.

The shipbroker

The shipbroker is the individual who finds suitable vessels for interested charterers or interested
charterers for available vessels, it will depend on who they’re working for. They charge a fee for
their services, and sometimes can be specialized in a specific type of ship.

It is important to add that, different from a freight forwarder who can also arrange ships for
chartering and are responsible for the coordination of the transport operations on behalf of the
charterer, a shipbroker is just there as an intermediary between the two main parties, the
charterer and the shipowner, and is not responsible for the vessel itself in any way.
The types of charter

There are three main types of charter, each dictating specifics of their contracts that involve the
usage of the vessel by the charterer.

• A demise charter, or bareboat charter, is the hiring of a ship in which the charterer is
fully responsible for the vessel during the charter period, legally and financially. This
type of charter can have years-long contracts, and even end up with the charterer
becoming the shipowner after a while, acquiring the ship for themselves in a formal
manner.
• A voyage charter, where a ship is rented for a voyage between two ports, with the crew
included. In this case, the shipowner is still in full control of the ship, and is simply
offering the usage for the charterer, that pays a freight for this service. This type of
charter also has a specified period in which the cargo must be unloaded from the ship,
called laytime. If laytime is exceeded, the charterer must pay demurrage fees. If not, the
shipowner pays despatch to the charterer according to the time saved.
• A time charter, where a ship is rented, with the crew included, for an established period
of time in which the charterer is in full control of the vessel, paying for the fuel, the port
charges, and the fees for the use of the vessel to the shipowner

Chartering Negotiations
Negotiating must be conducted with care and accuracy. There must be complete agreement on all
the terms and details between the two principals for an enforceable contract to come into being.
It has for many years been the custom for brokers to record the progress and details of
negotiations in a "day book". This can provide a check-list as to the agreed position and
outstanding issues and can later, in the event of a dispute, be used to safeguard their own and
their principal's position. However, in the modern office environment there is less reliance on
paper documents and copies of emails, instant messaging exchanges and the like may represent
an equivalent of a day book. It is essential that such correspondence is recorded and retained for
a reasonable period of time, at least until the Charterparty has ended and all matters have been
finalised.
If agreement is reached a recapitulation (recap) should be exchanged between all parties
summarising the final agreement. Verbal communications outside chartering negotiations, when
a broker must act, for example passing on orders to ships, should be re-confirmed in writing back
to the instructing company.
A broker authorised to sign a Charterparty on behalf of their principal should indicate the source
of authority for example by telephone, facsimile or email authority of [the principal's name] ‘As
Agents only’. When signing on behalf of a principal the basic rule is that with a signature
qualified in this way a broker will not be held personally liable for the performance of the
contract. If the name of the principal is not disclosed, then even the qualification of “as Agents
only” would not absolve the broker from liability for the performance of the contract.
 What Is Liner Shipping?
Liner shipping is the process of transporting goods and cargo from one destination to another by
large ocean ships that move through regular routes on fixed schedules. There are more than 400
liner services in operation today. Most of these liner services provide weekly sailing from the
ports of call.
Liner shipping is by far the most efficient mode of transportation for goods. Liner shipping is
carried out using various liner vessels like container ships, bulk carriers, tankers, specialist ships
and so on.
Among these, container ships stand top in carrying most of the world’s goods. Bulk carriers are
used to transport raw materials like coal or iron ore. Tankers are mainly used to transport oil,
petroleum & other chemicals. Specialist ships consist of vessels such as research ships and ice
breakers.

Advantages Of Liner Shipping

• Large Capacity:

Liner ships have a huge capacity, hence it can carry a lot of goods. Which is why most
businesses prefer liner shipping over air shipping. Another benefit of liner shipping is that you
can choose the ship to match your cargo size so that you transport it in a safe and secure manner.
Heavy machinery, cars, and containers can all be carried on a liner ship.

• Cost Effective:

Liner shipping is one of the cheapest modes of transporting cargo, which makes it the preferred
choice of transportation for many companies. Shipping is four to six times cheaper than
transporting your goods by air. Also, another factor why people favor shipping is that if you
don’t have an entire shipload, you can share space and cost on a cargo ship with other people or
businesses.

• Safe:

Liner ships are designed in such a way that it can carry hazardous materials and dangerous cargo
safely. The industry is well known for handling such goods and has regulations in place to ensure
the safety of the vessel, crew, cargo and environment. Cargo loss due to incidents during
transportation has been decreasing consistently in the past decade as maritime safety increases
significantly.

• Environment Friendly:

Shipping can be said as one of the most carbon-efficient modes of transportation and produces
low amounts of exhaust gas emissions for each ton of cargo transported than air, rail, or road
transport. Another benefit is that more than millions of containers that are used around the world
are now 98 percent recyclable which makes the transportation mode environment friendly.

• Global Economy Driver:

Liner Shipping acts as the Global Engine to connect countries, markets, businesses and people all
over the world for an efficient, safe, low cost and above all environment friendly transportation
network, which never existed before. Today, the liner shipping industry transports goods and
cargo representing one-third of the total value of global trade.
Additionally, the international shipping industry has generated millions of jobs and plays a major
role in creating new jobs worldwide. The shipping industry has contributed hundreds of billions
of dollars to the global economy annually thereby increasing gross domestic product in countries
throughout the world.
Moreover, as the lifeline of global economy, shipping contributes significantly to international
stability & security.
If you would like to know more about liner shipping, contact the shipping experts at Trans Asia
Group.
We have been delivering industry-leading shipping services to companies all over the world for
over a decade now. We have always ensured that our client’s cargo reaches its destination on
time, along with any and every necessary document.
We are here to offer you a hassle-free transportation services, so you can do more with your
business while we handle all the challenging tasks!
Get in touch with us for any of your shipping needs.
TANKER MARKET

The technology of oil transportation has evolved alongside the oil industry. Although use of oil
reaches to prehistory, the first modern commercial exploitation of oils distilled from material
extracted from the ground dates back to James Young's manufacture of paraffin (kerosene) in
1850.[1] In the early 1850s, oil began to be exported from Upper Burma, then a British colony.
The oil was moved in earthenware vessels to the river bank where it was then poured into boat
holds for transportation to Britain.[2]

In the 1860s, the Pennsylvania oil fields became a major supplier of oil, and a center of
innovation after Edwin Drake struck oil near Titusville, Pennsylvania.[2] The first oil well in the
United States was dug here in 1859, initially yielding around ten barrels per day.[3] Within two
years, the Titusville field was providing 3,000 barrels per day (480 m3/d).[3]

The invention of oil refining led to the availability of kerosene as lamp oil, which has a
smokeless combustion in contrast with the until then highly used whale oil. The lamp oil became
known as Pennsylvania Kerosine. Due to overfishing, whale oil became rare and expensive. By
this time, petroleum oil had already begun to supplant fish, whale, and vegetable oils for
applications such as indoor and outdoor lighting, and transatlantic export had already begun. [3]

Break-bulk boats and barges were originally used to transport Pennsylvania oil in 40-US-gallon
(150 L) wooden barrels.[2] But transport by barrel had several problems. The first problem was
weight: the standard empty barrel weighed 64 pounds (29 kg), representing 20% of the total
weight of a full barrel.[4] Also barrels were leaky, and could only be carried one way.[4] Finally,
barrels were themselves expensive. For example, in the early years of the Russian oil industry,
barrels accounted for half the cost of petroleum production.[4]
Early oil tankers
[edit]
The movement of oil in bulk was attempted in many places and in many ways. Modern oil
pipelines have existed since 1860.[2] The first oil tankers were two sail-driven tankers that were
built in 1863 on England's River Tyne.[5]

The first ocean-going oil-tank steamer, the Vaderland, was designed and built by Palmers
Shipbuilding and Iron Company of the United Kingdom for the American-Belgian Red Star
Line in 1873,[3][5] although the vessel's use was soon curtailed by the authorities citing safety
concerns.[6] By 1871, the Pennsylvania oil fields were making limited use of oil tank barges and
cylindrical railroad tank cars similar to those in use today.[2] In 1877, the sailing
ship Lindesnæs was converted to carry oil in bulk.[7][8]

The modern oil tanker

[edit]
The modern oil tanker was developed in the period from 1877 to 1885.[9] In
1876, Ludvig and Robert Nobel, brothers of Alfred Nobel, founded Branobel (short for Brothers
Nobel) in Baku, Azerbaijan. It was, during the late 19th century, one of the largest oil
companies in the world.

Zoroaster the world's first tanker, built by Sven Alexander

Almqvist at Motala Varv and delivered to the Nobel brothers in Baku
Ludvig was a pioneer in the development of early oil tankers. He first experimented with
carrying oil in bulk on single-hulled barges.[4] Turning his attention to self-propelled tankships,
he faced a number of challenges. A primary concern was to keep the cargo and fumes well away
from the engine room to avoid fires.[10] Other challenges included allowing for the cargo to
expand and contract due to temperature changes, and providing a method to ventilate the
tanks.[10]

Nobel's Zoroaster, built in 1878, was the world's first successful oil tanker. He designed this ship
together with Sven Alexander Almqvist, who also built the vessel.[10] The contract to build it was
signed in January 1878, and it made its first run later that year
from Baku to Astrakhan.[10] The Zoroaster design was widely studied and copied, with Nobel
refusing to patent any part of it.[10] In October 1878 he ordered two more tankers of the same
design: the Buddha and the Nordenskjöld.[10]

Zoraster carried its 242 long tons (246 t) of kerosene cargo in two iron tanks joined by
pipes.[10] One tank was forward of the midships engine room and the other was aft.[10] The ship
also featured a set of 21 vertical watertight compartments for extra buoyancy.[10] The ship had a
length overall of 184 feet (56 m), a beam of 27 feet (8.2 m), and a draft of 9 feet
(2.7 m).[10] Unlike later Nobel tankers, the Zoraster design was built small enough to sail
from Sweden to the Caspian by way of the Baltic Sea, Lake Ladoga, Lake Onega,
the Rybinsk and Mariinsk Canals and the Volga River.[10]

When W.A. Riedmann of Geestemünde entered the petroleum trade in 1877, he noted the
difficulties of using barrels, and began to experiment with the former emigrant
ships Adona and Derby, filling their large iron drinking water tanks with oil. In October 1879 he
purchased the Andromeda at Liverpool, an 1,876-ton full-rigged composite ship built in 1864,
brought it to Teklenborgs Werft, and added seventy iron tanks to the hold. The piping between
the tanks was connected so that all could be filled from a single tank. The composite hull, with
structural members of iron covered with wooden planking, was especially suitable for the
addition of tanks, because they could be firmly fastened to the iron beams. Andromeda made
seven trips from Germany to North America as a sailing oil tanker.[11]

The Falls of Clyde is the oldest surviving American tanker and

the world's only surviving sail-driven oil tanker.[12]
Nobel also began to adopt a single-hull design, where the ship's hull forms part of its tank
structure.[10] In November 1880 he ordered his first single-hulled tanker, the Moses.[10] Within a
year, he ordered seven more single-hulled tankers:
the Mohammed, Tatarin, Bramah, Spinoza, Socrates, Darwin, Koran, Talmud,
and Calmuck.[10] Branobel experienced one of the first oil tanker disasters. In 1881 Zoroaster's
sister-ship, Nordenskjöld, exploded in Baku while taking on kerosene.[10] The pipe carrying the
cargo was jerked away from the hold when the ship was hit by a gust of wind.[10] Kerosene then
spilled onto the deck and down into the engine room, where mechanics were working in the light
of kerosene lanterns.[10] The ship then exploded, killing half the crew.[10] Nobel responded to the
disaster by creating a flexible, leakproof loading pipe which was much more resistant to spills. [13]

In 1883, oil tanker design took a large step forward. Working for the Nobel company, British
engineer Colonel Henry F. Swan designed a set of three Nobel tankers.[14] Instead of one or two
large holds, Swan's design used several holds which spanned the width, or beam, of the
ship.[14] These holds were further subdivided into port and starboard sections by a longitudinal
bulkhead.[14] Earlier designs suffered from stability problems caused by the free surface effect,
where oil sloshing from side to side could cause a ship to capsize.[15] But this approach of
dividing the ship's storage space into smaller tanks virtually eliminated free-surface
problems.[15] This approach, almost universal today, was first used by Swan in the Nobel
tankers Blesk, Lumen, and Lux.[14][16]
 The Glückauf grounded in heavy fog at Blue Point
Beach on Fire Island.
Others point to the Glückauf, another design of Colonel Swan, as being the first modern oil
tanker. It adopted the best practices from previous oil tanker designs to create the prototype for
all subsequent vessels of the type. It was the first dedicated steam-driven ocean-going tanker in
the world and was the first ship in which oil could be pumped directly into the vessel hull instead
of being loaded in barrels or drums.[17][better source needed][18] It was also the first tanker with a
horizontal bulkhead,[19] its features included cargo valves operable from the deck, cargo main
piping, a vapor line, cofferdams for added safety, and the ability to fill a ballast tank with
seawater when empty of cargo.[20] The ship was built in Britain[21] and was purchased
by Wilhelm Anton Riedemann, an agent for the Standard Oil Company along with several of her
sister ships.[20] After the Glückauf was lost in 1893 after being grounded in fog, Standard Oil
purchased the sister ships.[20]

In 1903, the Nobel brothers built two oil tankers which ran on internal combustion engines, as
opposed to the older steam engines.[5] The Vandal, the first diesel-electric ship, was capable of
carrying 750 long tons (760 t) of refined oil was powered by three 120 horsepower (89 kW)
diesel motors.[22] The larger Sarmat employed four 180 hp (130 kW) engines.[22] The first
seagoing diesel-powered tanker, 4,500-ton Mysl, was built by Nobel's competitors
in Kolomna.[23] Nobel responded with Emanuel Nobel and Karl Hagelin, 4,600-long-ton
(4,700 t) kerosene tankers with 1,200-horsepower (890 kW) engines.[24]

The 475 ft (145 m), seven-masted schooner Thomas W. Lawson, built in 1902, was the largest
purely sail tanker ever built. It carried coal, and oil in barrels from Texas to the East Coast of the
U.S. This 5,218 GRT schooner was fitted out as an oil tanker in 1906, and sunk in a storm
off Isles of Scilly in December 1907.

Asian oil trade

[edit]
 Branobel's oil facilities in Baku.
The 1880s also saw the beginnings of the Asian oil trade.[20] The oil industry in Azerbaijan was
the largest producer in the world at that time, but was limited to the Russian market. John D.
Rockefellers Standard Oil dominated the world market.

The idea that led to moving Russian oil to the Far East via the Suez Canal was the brainchild of
two men: importer Marcus Samuel and shipowner/broker Fred Lane — the London agent for
the De Rothschild Frères.[20] Prior bids to move oil through the canal had been rejected by
the Suez Canal Company as being too risky.[20] Samuel approached the problem a different way:
asking the company for the specifications of a tanker it would allow through the canal. [20]

Armed with the canal companies specifications, Samuel had James Fortescue Flannery designing
tankers for Bnito — the Russian oil company of the Rothschilds — and ordered three tankers
from William Gray & Company in northern England.[20] Named the Murex, the Conch and
the Clam, each had a capacity of 5,010 long tons of deadweight.[20] In 1893 the Samuel brothers
founded the Tank Syndicate together with Fred Lane and Asian trading companies. In 1897 it
was renamed Shell Transport and Trading company, forerunner of today's Royal Dutch
Shell company.[20]

With facilities prepared in Jakarta, Singapore, Bangkok, Saigon, Hong Kong, Shanghai,
and Kobe, the fledgling Shell company was ready to become Standard Oil's first challenger in
the Asian market.[20] On August 24, 1892, the Murex became the first tanker to pass through the
Suez Canal.[20]

A Royal Dutch Petroleum dock in the Dutch East

Indies (now Indonesia)
In the meanwhile, in 1890 the Koninklijke Nederlandsche Maatschappij tot Exploitatie van
Petroleumbronnen in Nederlandsch-Indie (KNMEP) ("Royal Dutch Company for the Working
of Petroleum Wells in the Dutch Indies") — part of Royal Dutch Petroleum — was founded. In
1892 it found oil near Pangkalan Brandan on Sumatra, just some months before
Samuels kerosene arrived in Singapore. At first, chartered ships were used, but in 1896 KNMEP
launched its first tankers, the Besitang and Berandan. The threat of the Tank Syndicate was
reduced as the Dutch government excluded them from trading in the Dutch East Indies. To
prevent a hostile takeover by Standard Oil, preference shares were issued.[25][26] By the time Shell
merged with Royal Dutch Petroleum in 1907, the company had 34 steam-driven oil tankers.
Standard Oil started building tankers the same way as Shell and by 1900 owned around 60
tankers.

From 1912 Compañía Mexicana de Petróleo El Aguila ("Mexican Eagle Petroleum Company")
— founded in 1909 by Weetman Pearson to develop the newly found Mexican oil fields,
nationalized in 1938 as Pemex — also had its own tanker fleet. They quickly
adopted Isherwood's new longitudinal framing system that allowed much larger ships and a
simpler construction process. Just before World War I it owned a fleet of 20 tankers. [27] Standard
Oil did not participate directly in the newly discovered oil fields in Texas — such
as Spindletop — and Oklahoma, which gave opportunities for new oil companies as Gulf Oil and
Texas Fuel Company, later Texaco. Avoiding the use of Standard Oil's pipe line system, they
started using tankers to get their oil to the East Coast. In combination with the oil fields
discovered in Mexico and Venezuela, this caused a rise in the demand for tankers, which gave
opportunities for the first independents, such as the Norwegian Wilh. Wilhelmsen, that launched
its first tanker in 1913.[28]

INTRODUCTION TO CONTAINERIZED
CARGO
Containerized cargo has revolutionized the shipping industry, making transporting
goods worldwide more manageable and efficient. The concept of containerization
involves using standardized containers to pack and ship various products,
simplifying logistics processes and reducing costs. This article investigates the
development of containerization, its impact on global commerce, and how it has
changed over time.

The idea of using containers for transportation dates back to the early 20th century
when railway companies started utilizing wooden boxes to carry and protect fragile
items during transit. Malcom McLean’s invention of intermodal shipping containers in
the mid-1950s revolutionized global trade by allowing easy transfer between trucks,
trains, and ships without unloading cargo.

This innovation transformed global trade by significantly increasing efficiency while

reducing labor costs associated with loading and unloading cargo tank containers at
each stage of transportation. Today, 90% of non-bulk cargo worldwide is transported
via containers, highlighting their importance in facilitating international commerce.
HISTORY AND DEVELOPMENT
Containerization owes its inception to Malcolm McLean, a trucking magnate who
envisioned a seamless transport system dependent on container load. In the 1950s,
he pioneered the development of the first standardized containers, which later
became the cornerstone of global shipping, making it more efficient and
interconnected.

It’s fascinating that before McLean’s innovations, goods were laboriously loaded and
unloaded onto ships piece by piece. McLean’s vision created the “Intermodal
System,” where containers could move seamlessly across different transport modes.
This reduced product damage and pilferage and cut the costs and time associated
with manual loading.

VESSEL CAPACITY
The size and capacity of vessels underwent a significant transformation post-
containerization. Ships expanded to container load, leading to ‘mega-ships.’ These
behemoths, which can carry over 20,000 twenty-foot equivalent units (TEUs), now
dominate major shipping routes.

The modern design of these mega-ships optimizes space usage, allowing for higher
cargo loads. Enhanced storage capacities mean fewer trips for the same volume of
goods, reducing fuel consumption and overall emissions per container basis.

LOGISTICS
Containerization streamlined logistics by standardizing cargo handling. This
uniformity ensured reduced loading and unloading times, minimized errors, and
simplified warehousing and inventory management, leading to a more agile and
cost-effective supply chain.

An agile supply chain brought about by containerization provides competitive

advantages to businesses. Faster shipping times mean products reach markets
quicker, enhancing profitability. Moreover, reducing shipping errors translates to
enhanced brand reputation and trust.

MAJOR PORT HUBS

With the rise of containerization, ports had to adapt swiftly. Major hubs like
Shanghai, Singapore, and Rotterdam expanded their infrastructures to handle the
burgeoning container traffic, establishing themselves as the primary conduits of
global trade.
A simple container ship can take up an enormous amount of space in the harbor.
Appropriate equipment is needed to manage the full container load of a container
shipping line.

The strategic importance of these port hubs goes beyond their shipping capacities.
They often dictate global trade routes, influence shipping costs, and play pivotal
roles in international geopolitics.

CONTAINER SHIPS TODAY

Modern container ships are marvels of engineering. Enhanced with advanced
navigation systems, optimized hull designs, and eco-friendly technologies, these
vessels transport vast quantities of goods with increased efficiency and reduced
environmental impact. The modern container ship can take on the full container load
of several traditional cargo ships.

Given the increasing environmental concerns, many shipping companies are also
adopting alternative fuel sources, like LNG (Liquefied Natural Gas), to power these
massive vessels, showing a commitment to sustainable practices.

IMPORTANCE OF INTERNATIONAL TRADE

Containerization has been a catalyst for international trade
growth. Intermodal containers democratized trade by simplifying cargo handling and
reducing transport costs, enabling even smaller nations to participate in the global
market, thus fostering economic interdependence and cooperation among countries.

The ripple effects of this economic interdependence are profound. Nations become
stakeholders in each other’s prosperity, often leading to more stable international
relations. Moreover, this interdependence has made economies more resilient to
regional shocks.

What are Freight Charges?

Freight charges are the fees for transporting goods from Point A to Point B. They are like the ticket
price for your products to reach their final destination, from your warehouse to a distribution centre or
directly to the customer’s doorstep.
However, these aren’t just monolithic, one-size-fits-all fees. Freight charges come in various shapes
and sizes, influenced by various factors such as weight, dimensions, distance, mode of transport, and
any extra services like tracking or insurance that you might opt for.
Understanding freight charges also allows you to take advantage of various shipping options tailored
to your needs, such as less-than-truckload or heavyweight shipping. For eCommerce businesses,
freight charges are particularly vital. They directly impact your product pricing and competitiveness in
the market.
Different Types of Freight Charges
Types of Ocean Freight Charges
As an international trader, understanding these charges is crucial for any business importing or
exporting goods via sea.

Freight Category Charges

Ocean Freight (OCE)
The cornerstone of your sea shipping, Ocean Freight, often abbreviated as OCE, is the base charge
for transporting a container from Point A to Point B. Think of it as the ticket fare, generally calculated
as per TEU (Twenty-foot Equivalent Unit).
Bunker Adjustment Factor (BAF)
The Bunker Adjustment Factor (BAF) is a surcharge imposed to offset changes in the price of the
ship’s fuel. BAF changes seasonally and may also depend on geopolitical factors that affect oil prices.
Currency Adjustment Factor
The Currency Adjustment Factor, or CAF, protects shipping companies from foreign exchange risks.
It’s a percentage surcharge over the basic ocean freight, providing a cushion against currency
volatility.
Interim Fuel Participation (IFP)
Much like BAF, Interim Fuel Participation (IFP) is an additional surcharge applied when there’s a
sudden spike in fuel prices. Unlike BAF, which is relatively stable, IFP is a quick-response mechanism
to rapidly changing conditions.
Origin Fuel Surcharge (OFUE)
The Origin Fuel Surcharge, often listed as OFUE, is a charge applied by source countries based on
their local oil prices. This fee is typically a percentage of the basic ocean freight and comes into play
at the initial stage of the shipping process.
Origin Terminal Handling Charges (OTHC)
Origin Terminal Handling Charges (OTHC) cover the cost of services like loading, unloading, and
staging your container at the origin port.
Congestion Surcharge (CON)
Congestion Surcharge, denoted as CON, compensates for delays due to high traffic at the ports. If
your goods are headed to or coming from a busy port, expect this extra charge to pop up in your freight
invoice.
Emergency Risk Surcharge (ERS)
This fee covers additional insurance, added security measures, and potentially higher bunker costs.
Heavy Lift (HEA)
This is a unique charge for cargo that exceeds standard weight limitations and requires specialised
handling.
Out of Gauge Surcharge (OOG)
This charge compensates for the loss of space as these oversized containers take up more than their
fair share of room on the vessel.
Peak Season Surcharge (PSS)
Shipping companies impose a Peak Season Surcharge (PSS) during high-volume times to deal with
the increased operational burden. If you’re shipping during the holiday or harvest, be prepared for this
extra fee.
Special Equipment Surcharge (SPE)
If your cargo requires special conditions, like temperature control, the Special Equipment Surcharge
(SPE) will apply. This fee covers the cost of using specialized containers or equipment.
Hazardous Surcharge (HAZ)
For the adrenaline junkies of shipping—think chemicals, flammable material, etc.—there’s the
Hazardous Surcharge (HAZ). This mandatory charge comes with strict guidelines for handling and
shipping potentially dangerous goods.
Suez Canal Surcharge (SUE)
The Suez Canal Surcharge (SUE) applies to all cargo that passes through this critical trade route. It’s
a cost built into the architecture of global shipping.
Low Sulphur Charge (LSC)
This surcharge is applied for ships that operate within European Union areas and are required to use
low-sulfur fuel, adhering to environmental guidelines.
Panama Canal Surcharge (PCC)
The Panama Canal is another key cog in the global trade machine, and, of course, it has its fee— the
Panama Canal Surcharge (PCC). If your shipping route includes a pit stop through this canal, this
charge will inevitably appear on your invoice.
Aden Gulf Surcharge (ADE)
The Aden Gulf Surcharge (ADE) is applied to mitigate the potential costs associated with shipping
through the Gulf of Yemen. It’s another line item on the bill that buys peace of mind.

FOB Category Charges

Collection Fee (COL)
The Collection Fee covers the costs of collecting your cargo from its origin and moving it to the shipping
terminal. Many variables, such as distance, accessibility, and volume, can affect this charge.
Customs Entry (CUS)
This fee accounts for the processing of essential customs documentation and the clearance of your
goods through immigration-like checkpoints.
Shipping Line Bill of Lading (BIL)
Issued by the shipping line, the fee for the Bill of Lading document varies depending on the shipping
company’s policies and the complexity of your cargo. It’s one document you’ll want to read as diligently
as possible.
Cargo Data Declaration (CDD)
The Cargo Data Declaration (CDD) is an EU-specific regulation equivalent to a background check for
your goods to identify potential security threats. Various factors, such as the type of cargo and the
particularities of the receiving EU country, can influence the charge for this declaration.
Demurrage Charges (DEM)
While we all wish for smooth sailing, there are times when delays are unavoidable—whether it’s a
hold-up in unloading or even long customs checks. Such delays can accumulate what are known as
Demurrage Charges (DEM).
Load, Lash, and Secure (LLS)
Last but not least, let’s talk about ensuring your precious cargo is tucked in snugly for its ocean voyage.
Load, Lash, and Secure (LLS) is the professionally rendered service for securing your cargo inside
the shipping container or directly onto the vessel for non-containerized items. The LLS fee can differ
based on the type of cargo you’re shipping, its weight, and the special requirements for securing it.

Demystifying DDU Category Charges

Destination Fuel Surcharge (DFUE)
The Destination Fuel Surcharge, or DFUE, is applied at the destination and is directly tied to fluctuating
global oil prices. Budgeting for this is crucial to avoid any last-minute navigational errors in your overall
cost projections.
High Cube Additional (HQA)
Is your cargo taller than average, or do you need extra-large packages? If so, you might require a
‘high cube’ container, offering you extra vertical space. A high Cube Additional (HQA) fee is an extra
charge for these speciality containers that can seriously add up, especially for bulkier cargo that
doesn’t conform to standard dimensions.
Container Cleaning/Fumigation Fees
To ensure your cargo meets the health and sanitary regulations of the destination country, you may
incur Container Cleaning or Fumigation Fees.
Chassis Fee (CHF)
The Chassis Fee (CHF) covers the essential equipment cost. These fees can vary depending on the
logistics company and the distance involved, so check in advance.
Wharfage (WHA)
This fee is essentially the rent you pay for occupying space at the destination port.
On Carriage (ONC)
Carriage (ONC) charges cover the inland movement of your cargo post-unloading.
Telex Electronic Cargo Release Fee
The Telex Electronic Cargo Release Fee applies to creating and sending digital documentation to
release your cargo at the destination port.
Destination Charges (DES)
The Destination Charges are levied at the destination port and come into play when the container is
handed over to either the importer or the final logistics provider.

Types of Air Freight Charges

Fuel Surcharge (FSC)
Airliners consume jet fuel and a lot of it. The Fuel Surcharge (FSC) is a levy that adjusts to seasonal
and regional variations in fuel prices. Just like you notice fluctuations at the gas station, fuel prices can
change dramatically depending on geopolitics, climate, or other market factors.
Security Surcharge (SSC)
The Security Surcharge (SSC) is an essential fee covering the extra security measures that come with
flying goods internationally.
Container Service Charge (CSC)
The Container Service Charge (CSC) covers the costs of storing your cargo at the airport terminal
before it embarks on its aerial journey.
Customs Clearance Fees
Customs clearance fees cover the cost of processing your goods through customs at both the point of
departure and the point of arrival. This fee often depends on the type of commodity being shipped, its
value, and sometimes even its weight.
Associated Trucking Fees
Your cargo may have landed, but it still needs to get from the airport to its final destination. This is
where associated trucking fees come into play. These charges cover the cost of moving your cargo
from the airport to a warehouse, distribution centre, or directly to the customer.
Airport Screening Fee
Before your cargo even gets near a plane, it needs to pass rigorous safety screenings to ensure it
poses no security risks. These inspections are what the airport screening fee covers.
Document Creation Fee
Document creation fees cover the cost of generating essential documents, like the Bill of Lading (BOL),
which is a legal document between the shipper and carrier. Without this, your shipment is grounded
before it even gets started.
Transport Document Amendment Fee (AMF)
Sometimes, things change, whether it’s the consignor, the details of the cargo, or even the destination.
When that happens, you’ll likely incur a Transport Document Amendment Fee (AMF). This fee covers
the administrative costs of making these adjustments and reissuing documents.
Gateway Transfer Fee
This fee is applicable when your cargo needs to be transferred to a third party at a ‘gateway’ location.
The Gateway Transfer Fee covers the logistical costs involved in such transfers.
 Messenger Fee
The Messenger Fee is essentially a courier fee covering the cost of physically sending important
documents where they need to go.
Cargo Insurance
Cargo insurance covers these risks and is usually calculated as a percentage of the cargo’s total value.
While not a mandatory fee, it’s highly recommended, especially when shipping valuable or delicate
goods.

Types of Truck Freight Charges

Truck Freight Rates
Truck freight rates are the base rates for shipping your goods. These freight rates are heavily
influenced by supply and demand dynamics and truck availability.
Pickup Charges
Pickup charges are the fees for collecting your consignment from your premises. Typically, this charge
is influenced by factors such as the distance between the pick-up location and the loading point and
the time needed.
Handling Charges
These fees cover the labor costs involved in properly stowing your shipment in the truck, keeping in
mind factors like weight distribution and ease of unloading.
Main Leg Charges
Main leg charges cover the actual costs of transporting your goods from point A to point B. This
includes not just fuel but also tolls, taxes, and any regulatory fees that may apply on the route.
Delivery Charges
Delivery charges cover the costs associated with unloading and handling your consignment before it
reaches its final delivery point. This could include moving it to a storage facility or directly to a retail
outlet.

Basic Shipping Documents required

The following documents are commonly used in exporting; but which of them are necessary in a
particular transaction depends on the requirements of concerned countries and it varies from country
to country.
a) Bill of Lading : It is a very important document in shipping transaction. A bill of lading is a contract
between owner of goods and the carrier. This original shipper’s order bill of lading can be bought, sold
or traded while the goods are in transit. B/L is signed by the Master of the vessel or his agent on
behalf of shipping line. It has undernoted attributes :
• It is a contract of affreightment between the carrier and the shipper/consignee.
• It’s a receipt of cargo by the carrier.
• It is a legitimate title of goods for the holder.
There are different kinds of B/L – Carrier B/L, House B/L, Charter party B/L, Ocean B/L or Combined
Transport B/L etc.

a) Commercial Invoice : A commercial invoice is a bill for the goods from the seller to the buyer. These
invoices are often used by governments to determine the true value of goods when assessing customs
duties. Governments that use the commercial invoice to control imports will often specify its form,
content, number of copies, language to be used, and other characteristics.
b) Consular Invoice : It is a document that is required in some countries. It describes the shipment of goods and shows
information such as the consignor, consignee, and value of the shipment. Certified by the consular official of the
 foreign country stationed here, it is used by the country's customs officials to verify the value, quantity, and nature of
the shipment.
c) Certificate of Origin : It is a document that is required in certain nations. It is a signed statement as to the origin of
the export item. Certificate of origin are usually signed through a semiofficial organization, such as a local chamber of
commerce. A certificate may still be required even if the commercial invoice contains the information.
d) Inspection certificate : It is required by some purchasers and countries in order to attest to the specifications of the
goods shipped. This is usually performed by a third party and often obtained from independent testing organizations.
e) Dock receipt and Warehouse receipt : These receipts are used to transfer accountability when the export item is
moved by the domestic carrier to the port of embarkation and left with the ship line for export.
f) Destination control statement : It appears on the commercial invoice, and ocean or air waybill of lading to notify the
carrier and all foreign parties that the item can be exported only to certain destinations.
g) Shipper’s Export Declaration(SED) : This document is used by the custom authority of the exporting country in
order to exercise control over exports. SEDs are prepared by the exporter or the exporter's agent and delivered to the
exporting carrier. The exporting carrier will present the required number of copies to the customs at the port of export.
Often, the SED is prepared as a substitute document of the Shipper's Letter of Instructions.
h) Export incense : It is government document that authorizes the export of specific goods in specific quantities to a
particular destination. This document is generally required for all countries to export any commodity.
i) Export packing list : This packing list shows the type of package, such as a box, crate, drum, or carton. It also
shows the individual net, legal, tare, and gross weights and measurements for each package. In addition, Package
markings are shown along with the shipper's and buyer's references. The list is used by the shipper or forwarding
agent to determine the total shipment weight and volume of cargo being shipped. Custom officials use the list to
check the cargo.
j) Insurance certificate : This is a very important document in export shipment. This is used to assure the
consignee that insurance will cover the loss of or damage to the cargo during transit. Insurance protects
exporter’s interest, as there are risk factors like bad weather, rough handling of cargo by carriers, and
other common hazards which may cause damage to cargo. If the terms of sale make the exporter
responsible for insurance, the exporter is to take a policy to insure the cargo. If the terms of sale make
the foreign buyer responsible, then the buyer has to obtain an insurance policy. Shipments by sea are
covered by marine cargo insurance.
k) Letter of Credit / Sales contract : This is a basic commercial document through which an international deal of sale
is established between a Seller(exporter) and a buyer(importer). Detail terms & conditions highlighting value of
goods, cost of freight and insurance, time limit for shipment, specifications of goods etc will be incorporated in the
Letter of credit.
l) Pre-shipment inspection survey : A thorough inspection of goods is to be carried out by renown surveyor before
shipment in order to satisfy the buyer that the goods are fit to export in all respect. In case of import, similar
documents will be required to ensure any transaction.
Apart from above shipping documents, Shipping line has to submit/declare following documents to various agencies,
whenever vessel calls a port for loading / discharging operations.
1. Inward Entry Application : Application addressed to Custom authority with a request to permit entry of the vessel in
the port.
2. Berthing Application to Port Health Office : Application addressed to Port Health Officer, with a request to come
on board after berthing in order to complete inward formalities.
3. Application to Immigration Officer: To provide landing permission for the officers and crew of the vessel.
4. Store list book : Store list to be prepared in prescribed form & submit same to custom who will scrutiny the list with
ship’s pantry.
5. Ship’s Arrival Report : The arrival report is prepared by the Master of the vessel with details of vessel, cargo on
board, ship’s stores which is submitted to Customs & Mercantile Marine Department.
6. Load Line Distance Declaration : This is signed by Master of the vessel and same is submitted to Custom
authority.
7. Dangerous Drug Declaration : Declaration is given by the Master to Custom, stating that the vessel has not carried
any dangerous drug.
8. Deck Cargo Declaration : The certificate is issued by the Master regarding deck cargo carried on deck for
submission to Custom.
9. Final Entry Declaration : Agents of the vessel is to submit this application to the Custom, after entrance of the
vessel to the port enclosing all necessary papers regarding export cargo to be discharged.
10. NOC from Mercantile marine & Shipping Master Office : NOC to be obtained from these two governments offices
to sail from the port for outward voyage.
11. NOC from Income Tax Authority : Before sailing from the port, vessel to obtain NOC from Tax authority regarding
payment of duty on the freight earned or expected to be earned from exports carried and projected imports.
12. Custom & Port Clearance : Port clearance is an important document which must be on board the vessel before
sailing and this clearance has to be shown to the next port of call.
13. Statement of facts : This document is prepared by shipping agent showing details of performances of vessel with
regard to discharging and loading of containers on daily basis. This SOF is important for Trump/Chartered vessel to
count actual working days/hours so as to compare same with Charter party terms for calculating demurrage /
dispatch.
Above documents are all related to ship. There are some important documents, which are related to cargo. Some of
them are shown below :
1. Wavier Certificate : As per existing flag protection law applicable in some countries, foreign vessel is required to
obtain wavier certificate from Shipping Department to load cargo, in order to safeguard the legitimate share of
exporting country. As per internationally accepted UNCTAD Code of Conduct, the National line is entitled to carry
40% of the total sea borne Export/Import cargo originating from their country, through it’s own flag carriers. If national
flag carrier of exporting country fail to provide ship to carry some consignment, then the Third country operator can lift
the cargo through obtaining wavier certificate.
2. Mate Receipt: This is an acknowledgement receipt issued by the Master of the vessel, whenever loading of cargo or
container is completed on board the vessel.
3. Cargo Manifest or Freight Menifest : This is a summary statement of detail description of all the cargo loaded in
the vessel. A manifest containing both cargo and financial details is known as Freight Manifest.
4. Export General Manifest (EGM) : The Export General Manifest is prepared with the details of cargo and other
relevant cargo related information on the basis of Bill of Lading and no freight information is incorporated. The EGM is
prepared in the prescribed form and submitted to custom & port authority.
5. Import General Manifest(IGM) : IGM includes details of import cargo to be discharged from the ship and the
information are taken from Bill of lading IGM shows B/L number, description of cargo / container, cubic measurement
/weight, whether freight pre-paid or payable at destination, the names / addresses of the consignee, details of
Dangerous or Hazardous cargo etc. The IGM is submitted to the port and custom authority.
6. Heavy Cargo / Long length Cargo List : A heavy cargo or heavy lift cargo means a cargo whose weight exceeds
more than 35 tons. A heavy cargo is always odd size both in height as well as length and needs special arrangement
at port for discharging. For this reason, the Master or the Agent has to maintain the list of such heavy or long length
cargo, so that the cargo can be handled both on board the ship and at port under special arrangement at the time of
discharging.
7. Dangerous Cargo Declaration : Shipper has to declare with proper documentation regarding dangerous cargo
before shipment of export of such cargo and also import of such cargo while on board before discharging at port.
8. Delivery Order : Delivery order is issued in exchange of an original Bill of Lading ,usually at the port of destination.
On the basis of delivery order issued by the shipping line/agent, port authority deliver the goods to its holder or to a
named party written on the bill of lading under the title ’Consignee’. The concerned agent before issuing delivery
order also check whether custom has out passed Bill of Entry.
9. Landing Tally : At the time of discharging container, tally is jointly maintained by port and shipping agent. When a
container is discharged, the tally clerk records the information like container prefix, container number, seal number,
container size/type/height in code, tare weight etc. This tally sheet is an important supporting document for shipper, if
any damage is caused to the cargo at the time of unloading operation.
10. Out Turn Report : OTR is the final report on the total quantity of cargo (piece wise) landed under a Bill of Lading.
Article gives an idea about the various types of documentation required in liner shipping business for
exports and imports.
What Is a Bill of Lading?
A bill of lading (BL or BoL) is a legal document that's issued by a
transportation company to a shipper. It details the type, quantity, and
destination of the goods being carried. A bill of lading also serves as a
shipment receipt when the carrier delivers the goods at a predetermined
destination.

This document must accompany the shipped products no matter the form
of transportation. It must be signed by an authorized representative from the
carrier, shipper, and receiver.
KEY TAKEAWAYS

• A bill of lading is a legal document that's issued by a carrier to a shipper

detailing the type, quantity, and destination of the goods being carried.
• A bill of lading is a document of title, a receipt for shipped goods, and a
contract between a carrier and a shipper.1
• This document must accompany the shipped goods and must be
signed by an authorized representative from the carrier, shipper, and
receiver.
• A bill of lading can help prevent asset theft if it's managed and reviewed
properly.
• There are several types of bills of lading so it’s important to choose the
right one.
Understanding Bills of Lading
The bill of lading is a legally binding document that provides the carrier and
the shipper with all the necessary details to accurately process a
shipment.2 It has three main functions:

• It's a document of title to the goods described in the bill of lading.

• It's a receipt for the shipped products.
• It represents the agreed-upon terms and conditions for the
transportation of the goods.

Types of Bills of Lading

Some of the most common types of bills of lading include:

• Inland bill of lading

• Ocean bill of lading
• Through bill of lading
• Negotiable bill of lading
• Nonnegotiable bill of lading
• Claused bill of lading
• Clean bill of lading
• Uniform bill of lading

Why Is a Bill of Lading Important?

A bill of lading is a legally binding document that provides the carrier and the
shipper with all the necessary details to accurately process a shipment. It can
be used in litigation if the need should arise and all parties involved will make
a committed effort to ensure the accuracy of the document.
A bill of lading essentially works as undisputed proof of shipment. It allows for
the segregation of duties that is a vital part of a firm’s internal control
structure to prevent theft.

What Is the Purpose of a Bill of Lading?

A bill of lading has three main purposes. It's a document of title to the goods
described in the bill of lading and it's a receipt for the shipped products.
Finally, it represents the agreed-upon terms and conditions for the
transportation and eventual release of the shipped goods.

What's in a Bill of Lading?

A bill of lading will typically include the names and addresses of the shipper
(consignor) and the receiver (consignee) as well as the shipment date,
quantity, exact weight, value, and freight classification. It should include a
complete description of the items including whether they’re classified as
hazardous, as well as the type of packaging used, any specific instructions
for the carrier, and any special order tracking numbers.

Most bills of lading will include language that incorporates the York Antwerp
Rules to help determine costs and liability for lost or damaged cargo.3

The Bottom Line

A bill of lading is a contract issued by a transport company to a shipper that
spells out the quantity, type, and destination of the goods being shipped. It
serves as a receipt of the shipment and can help prevent the theft of goods
being transported. It’s crucial to understand the types of bills of lading to
ensure that the right ones are chosen. Your shipment will likely be delayed
otherwise.

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1. DEFINITIONS
In this Bill of Lading the terms :
“Bill of Lading” means the present document whether called Bill of Lading, Paperless Bill of
Lading or Waybill and
whether issued in paper form or electronically.
“Carriage” means the whole or any part of the operations and services undertaken by the Carrier
in respect of the
Goods.
“Carrier” means the Party on whose behalf this Bill of Lading is issued.
“Clean” means for Merchant’s stuffed and sealed Containers, a Container received in apparent
good order and
condition. In no circumstances is a representation made as to the weight, contents, measure,
quantity,
quality, description, condition, marks or value of the Goods.
“Combined Transport” arises if the Place of Receipt and/or the Place of Delivery are indicated
on the back hereof in the relevant
spaces.
“Container” includes any container, trailer, transportable tank, flat or pallet, or any similar article
used to consolidate
Goods and any equipment thereof or connected thereto.
“Freight” means all charges payable to the Carrier in accordance with Applicable Tariff of this
Bill of Lading,
including without limitation, storage, demurrage, detention and reefer services.
“Goods” means the whole or any part of the cargo received from the Shipper and includes any
equipment or
Container not supplied by or on behalf of the Carrier.
“Hague Rules” means the provisions of the International Convention for the Unification of
Certain Rules relating to Bills
of Lading signed at Brussels on 25th August, 1924 and includes the amendments by the
Protocols
signed at Brussels on 23rd February, 1968 and 21st December, 1979, but only if such
amendments are
compulsorily applicable to this Bill of Lading.
“Holder” means any Person for the time being in possession of this Bill of Lading by reason of
the consignment
of the Goods or the endorsement of this Bill of Lading or otherwise.
“Indemnify” includes defend, indemnify and hold harmless.
“Merchant” includes the Shipper, Holder, Consignee, Receiver of the Goods, any Person owning
or entitled to the
possession of the Goods or of this Bill of Lading and anyone acting on behalf of any such
Person.
“On board” on the back of this Bill of Lading means on board any of the first mode of
transportation used or procured
by the Carrier, including rail, road, water and air transport.
“Person” includes an individual, group, company or other entity.
“Port to Port” arises if the Carriage is not Combined Transport.
“Sub-Contractors” includes owners and operators of any Vessels (other than the Carrier),
stevedores, terminal and
groupage operators, Underlying Carriers, road and rail transport operators and any independent
contractor employed by the Carrier in performance of the Carriage.
“Underlying Carrier” includes any water, rail, motor, air or other Carrier utilised by the Carrier
for any part of the transportation
covered by the Bill of Lading.
“US COGSA” means the United States Carriage of Goods by Sea Act, 46 U.S.C. App. 1300 et
seq. as enacted 1936
and any subsequent recodification thereto.
“Vessel” means the intended ship, craft, lighter, barge, feeder or ocean vessel named on the back
hereof and
any ship, craft, lighter, barge, feeder or other ocean vessel which is or shall be substituted, in
whole or
in part, for that vessel.
2. CARRIER’S TARIFF
Where the Carrier has set up applicable tariff (hereinafter the “Applicable Tariff “) to the
Carriage, the Terms and Conditions of the
Carrier’s Applicable Tariff are incorporated herein. Particular attention is drawn to the Terms
and Conditions therein relating to
Container and vehicle demurrage. Copies of the relevant provisions of the Applicable Tariff are
obtainable from the Carrier or its
agents upon request or on Carrier’s website www.cma-cgm.com. In the case of inconsistency
between this Bill of Lading and the
Applicable Tariff, this Bill of Lading shall prevail.
3. REMITTANCE AND ACCEPTANCE OF THE BILL OF LADING
The Bill of Lading shall be sent or released to the Merchant at its sole risk, expense and
responsibility and shall be deemed remitted
to the Merchant upon sending physically or electronically. In accepting this Bill of Lading, the
Merchant agrees to be bound by all
provisions, exceptions, terms and conditions on the face and back hereof, whether written, typed,
stamped or printed, as fully as if
signed by the Merchant, notwithstanding any contrary custom or privilege, and unless otherwise
specifically agreed in writing between
the Carrier and the Merchant, Merchant agrees that all agreements or Freight engagements for
and in connection with the Carriage
of the Goods are superseded by the Bill of Lading, including any previous engagements between
the Merchant and the Carrier, its
agents, Sub-Contractors, employees, captains or Vessels and acknowledges that the said
provisions, exceptions, terms and
conditions supersede its own general terms and conditions and/or all similar documents.
Merchant consents to the Carrier sharing
information and data contained in the Bill of Lading and/or related to the performance of the
Carriage of the Goods with third parties.
4. WARRANTY
The Merchant warrants that in accepting this Bill of Lading it is, or has the authority of, the
Person owning or entitled to the possession
of the Goods and this Bill of Lading.
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5. NON VESSEL OPERATING COMMON CARRIER (NVOCC)
If the Merchant is a Non Vessel Operating Common Carrier (NVOCC), and has issued, or
intends to issue, other contracts of Carriage
to third parties covering the Goods, or part of the Goods, carried under this Bill of Lading, said
NVOCC hereby warrants and
guarantees that all contracts of Carriage issued by him in respect of the Goods under this Bill of
Lading shall incorporate the Terms
and Conditions of this Bill of Lading. Should the said NVOCC fail to incorporate those Terms
and Conditions, the NVOCC shall
indemnify the Carrier, its servants, agents and Sub-Contractors against all resulting
consequences.
6. CARRIER’S RESPONSIBILITY AND CLAUSE PARAMOUNT
(1) Port-to-Port Shipment
When loss or damage has occurred between the time of loading of the Goods by the Carrier, or
any Underlying Carrier, at the
Port of Loading and the time of discharge by the Carrier, or any Underlying Carrier, at the Port
of Discharge, the responsibility of
the Carrier shall be determined in accordance with the Hague Rules or any national law
incorporating or making the Hague Rules,
or any amendments thereto, compulsorily applicable to this Bill of Lading. The Carrier shall be
under no liability whatsoever for
loss of or damage in connection with the Goods, howsoever occurring, if such loss or damage
arises prior to loading onto or
subsequent to the discharge from the Vessel carrying the Goods. Where any applicable
compulsory law provides to the contrary
of the foregoing, the Carrier shall nonetheless have the benefit of every right, defence, limitation,
if lower, and liberty in the Hague
Rules during such additional compulsory period of responsibility, notwithstanding that the loss
or damage did not occur at sea.
Notwithstanding anything else in this Bill of Lading to the contrary, on shipments to or from the
United States (as defined by US
COGSA), the rights and liabilities of the parties shall be subject exclusively to US COGSA
which shall also govern before the
Goods are loaded on and after they are discharged from the Vessel provided, however, that the
Goods at said times are in the
custody of the Carrier or any Sub-Contractor.
(2) Combined Transport
(a) With the exceptions of subclauses 6(2)(b) and (c), the liability for rail or road Carriage within
a State shall be determined in
accordance with the internal law of such State and/or any International Convention which is
compulsorily applicable by the laws
of such State. In the absence of such compulsory laws or convention the Carrier shall be under
no liability whatsoever for loss of
or damage in connection with the Goods, howsoever occurring.
(b) With respect to road Carriage between countries in Europe liability shall be determined in
accordance with the Convention on
the Contract for the International Carriage of Goods by Road (CMR), dated 19th May 1956; and
during rail Carriage between
countries in Europe according to the International Agreement on Railway Transports (CIM),
dated 25th February 1961 (or any
amendments to this Convention or Agreement).
(c) With respect to Combined Transportation from, to or within the United States when the
Goods are in the custody of the Carrier,
or any Underlying Carrier, such Combined Transport will be governed by the provisions of
Clause 6(1).
(d) In the event Clause 6(1) is held inapplicable to such Combined Transportation from, to or
within the United States, then
Carrier’s liability will be governed by, and be subject to, the Terms and Conditions of the
Underlying Carriers Bill of Lading and/or,
where applicable, the ICC Uniform Bill of Lading together with the Underlying Carrier’s Tariff
which shall be incorporated herein.
Notwithstanding the foregoing, in the event there is a private contract of Carriage between the
Carrier and any Underlying Carrier,
such Combined Transportation will be governed by the Terms and Conditions of said contract
which shall be incorporated herein
as if set forth at length and copies of said contract(s) shall be available to the Merchant at any
office of the Carrier upon request.
(e) Except as provided in Clause 6(2)(a) to 6(2)(d) supra, the Hague Rules as per Clause 6(1)
shall apply to Combined Transport
outside the United States where US COGSA is not compulsory applicable.
(f) In any event, the Carrier shall always be relieved of liability for loss or damage occurring
during the Carriage if such loss or
damage was caused by any cause or event which the Carrier could not have avoided and the
consequences of which he could
not have reasonably prevented and Carrier’s liability shall never exceed One Euro per kilo of the
Goods lost or damaged.
(3) Agency
Whenever the Carrier undertakes to accomplish any act, operation or service not initially agreed
or mentioned on this Bill of
Lading, he shall act as Merchant’s agent and shall be under no liability whatsoever for any loss
or damage to the Goods or any
direct, indirect or consequential loss arising out or resulting from such act, operation, or service.
If, for any reason whatsoever,
the Carrier is denied the right to act as agent as mentioned above, its liability for loss, damage or
delays shall be determined in
accordance with this Bill of Lading.
(4) Subrogation
When any claims are paid by the Carrier to the Merchant, the Carrier shall be automatically
subrogated to all rights of the Merchant
against any other third party, including Underlying Carriers and Sub-Contractors, on account of
such payment.
7. NOTICE OF CLAIM AND TIME FOR SUIT
Unless notice of loss or damage to the Goods specifying or describing the exact nature of such
loss or damage is given in writing to
the Carrier at the Port of Discharge or Place of Delivery before or at the time of delivery of the
Goods or, if the loss or damage is not
apparent, within three (3) consecutive days after delivery, the Goods shall be deemed to have
been delivered as described in this
Bill of Lading. In any event the Carrier and its Sub-Contractors shall be discharged from all
liability in respect of nondelivery, misdelivery, delay, loss or damage unless suit is brought
within one (1) year after delivery of the Goods or the date when the Goods
should have been delivered.
8. LIABILITY PROVISIONS
(1) Basis of Compensation
Without prejudice to any applicable limitation of liability in accordance with the provision set
forth in Clause 6 hereof, the basis of
compensation shall be limited to the value of the Goods so damaged or lost (excluding insurance,
custom fees, taxes, Freight
and retail value). The value of the Goods shall be determined by reference to the commercial
invoice or the custom declaration.
In no circumstance whatsoever, the Carrier shall be responsible for indirect damage, loss of
profit or consequential damage.
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Where compensation is payable, the Carrier is entitled to deduct thereform any sum then due or
which at any time thereafter may
become due to the Carrier by the Merchant under this Bill of Lading or under any agreement or
contract between the Carrier and
the Merchant. The Carrier also reserves the right settle any compensation payable to the
Merchant by way of a credit note.
(2) Ad Valorem Liability
The Merchant agrees and acknowledges that the Carrier has no knowledge of the value of the
Goods, and that compensation
higher than that provided for in this Bill of Lading may not be claimed unless, with the consent
of the Carrier, the value of such
Goods is declared by the Shipper prior to the commencement of the Carriage and is stated in
writing on this Bill of Lading and
extra Freight is paid. In such a case, the amount of the declared value shall be substituted for the
limits laid down in this Bill of
Lading. Any partial loss or damage shall be adjusted pro rata on the basis of such declared value.
In any event, the compensation
shall not exceed the actual commercial value of the Goods as defined in Clause 8(1).
(3) Delay
The Carrier does not undertake that the Goods shall arrive at the Port of Discharge or Place of
Delivery at any particular time or
to meet any particular market or use and the Carrier shall in no circumstances whatsoever, and
however arising be liable for
direct, indirect or consequential loss or damage caused by delay.
If notwithstanding the foregoing the Carrier is held responsible for any delay, it is hereby
expressly agreed that the Carrier’s
liability shall be limited to the ocean Freight paid under this Bill of Lading for the delayed
Goods, exclusive of local charges and/or
demurrage.
(4) US COGSA limitation to US carriage
When the Carriage is to or from the United States of America as stipulated in Clause 6(1), and
unless the nature and value of the
Goods is declared on the back of the Bill of Lading in the condition set out in Clause 8(2), the
Carrier’s limitation of liability in
respect of the Goods, shall not exceed USD 500.00 per Container, package, bundle, pallet, or
other unit, or when the Goods are
not shipped per Container, package, bundle, pallet or other unit, USD 500.00 per customary
Freight units.
9. METHODS AND ROUTES OF CARRIAGE
(1) The Carrier may at any time and without notice to the Merchant,
(a) use any means of Carriage whatsoever,
(b) transfer the Goods from one conveyance to another, including but not limited to transhipping
or carrying them on another
Vessel than that named on the back hereof,
(c) unpack and remove the Goods which have been packed into a Container and forward them in
a Container or otherwise,
(d) proceed by any route, place, or port, in its discretion (whether or not the nearest or most
direct or customary or advertised
route), at any speed, and proceed to or stay at any place or port whatsoever, once or more often
and in any order,
(e) load or unload the Goods at any place or port (whether or not such port is named overleaf as
the Port of Loading or Port of
Discharge) and store the Goods at any such place or port,
(f) comply with any orders or recommendations given by any government or authority, or any
Person acting or purporting to act
as or on behalf of such government or authority, or having under the terms of any insurance on
any conveyance employed by the
Carrier the right to give orders or directions.
(g) permit the Vessel to proceed with or without pilots, to tow or be towed or to be dry-docked.
(2) The liberties set out in Clause 9 (1) may be invoked by the Carrier for any purpose
whatsoever, whether or not connected with
the Carriage of the Goods, including loading or unloading other Goods, bunkering, undergoing
repairs, adjusting instruments, picking
up or landing any Persons, including but not limited to persons involved with the operation or
maintenance of the Vessel and assisting
Vessels in all situations. Anything done in accordance with Clause 9 (1) or any delay arising
therefrom shall be deemed to be within
the contractual Carriage and shall not be a deviation.
(3) By tendering the Goods for Carriage without any written request for Carriage in a specialised
Container, or for Carriage otherwise
than in a Container, the Merchant accepts that the Carriage may properly be undertaken in a
general-purpose Container.
10. MATTERS AFFECTING PERFORMANCE
If at any time the Carriage is or likely to be affected by any hindrance, risk, delay, difficulty or
disadvantage of any kind (other than
the inability of the Goods safely or properly to be carried or carried further which is provided for
in Clause 24 infra) and howsoever
arising (even though the circumstances giving rise to such hindrance, risk, delay, difficulty or
disadvantage existed at the time this
contract was entered into or the Goods were received for Carriage), the Carrier (whether or not
the Carriage is commenced) may,
without prior notice to the Merchant and at the sole discretion of the Carrier, either :
(a) carry the Goods to the contracted Port of Discharge or Place of Delivery, whichever is
applicable, either by the intended or
the alternative route to that indicated in this Bill of Lading or that which is usual for Goods
consigned to that Port of Discharge or
Place of Delivery. If the Carrier elects to invoke the terms of this Clause 10 (a) hereof, he shall
be entitled to charge such additional
Freight, including extra war risk charge as the Carrier may determine, or
(b) suspend the Carriage of the Goods and store them ashore or afloat upon the Terms and
Conditions of this Bill of Lading and
endeavour to forward them as soon as possible, but the Carrier makes no representations as to the
maximum period of
suspension. If the Carrier elects to invoke the Terms and Conditions of this Clause 10 (b) then,
he shall be entitled to charge such
additional Freight as the Carrier may determine, or
(c) abandon the Carriage of the Goods and place the Goods at the Merchant’s disposal at any
place or port which the Carrier
may deem safe and convenient, whereupon the responsibility of the Carrier in respect of such
Goods shall cease. The Carrier
shall nevertheless be entitled to full Freight on the Goods received for Carriage, and the
Merchant shall pay any additional costs
of the Carriage to, and delivery and storage at, such place or port.
If the Carrier elects to use an alternative route under Clause 10 (a) or to suspend the Carriage
under Clause 10 (b) this shall not
prejudice its right subsequently to abandon the Carriage under Clause 10 (c).
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11. NOTIFICATION AND DELIVERY
(1) Any mention herein of parties to be notified of the arrival of the Goods is solely for
information of the Carrier, and failure to give
such notification shall not involve the Carrier‘s liability nor relieve the Merchant of any
obligation hereunder.
(2) The Merchant shall take delivery of the Goods within the time provided for in the Carrier’s
Applicable Tariff (see Clause 2). If the
Merchant fails to do so the Carrier shall be entitled, without notice, to unpack the Goods if
packed in Containers and / or to store the
Goods ashore, afloat, in the open or under cover, at the sole risk of the Merchant. Such storage
shall constitute due delivery
hereunder, and thereupon the liability of the Carrier in respect of the Goods stored as aforesaid
shall cease, and the costs of such
storage (if paid or payable by the Carrier or any agent or Sub-Contractor of the Carrier) shall
forthwith upon demand be paid by the
Merchant to the Carrier.
(3) If, whether by act or omission, the Merchant directly or indirectly prevents, delays or hinders
the discharge or the delivery of the
Goods, any costs, expenses or liability so resulting shall be for its full account.
(4) If the Merchant fails to take delivery of the Goods, the Carrier may, without prejudice to any
other rights which he may have
against the Merchant, without notice and without any responsibility whatsoever attaching to him,
sell, destroy or dispose of the Goods
and apply any proceeds of sale in reduction of the sums due to the Carrier from the Merchant in
respect of this Bill of Lading.
(5) The Merchant undertakes to mitigate any loss or damage in connection with the Goods and to
exhaust all initiatives in this respect.
In particular, the Merchant shall propose the Goods for salvage sale to specialized salvage sale
companies and websites. If the
Merchant fails to prove having undertaken the above actions, it shall lose all rights to claim
damages from the Carrier in connection
with the Goods.
(6) In the event the Carrier agrees, at the request of the Merchant to amend the Place of Delivery
stated herein, the Terms and
Conditions of this Bill of Lading shall continue to apply, only to the extent provided by the
Applicable Tariff, until the Goods are
delivered by the Carrier to the Merchant at the amended Place of Delivery. If the Applicable
Tariff does not explicitly provide for the
continued application of the Terms and Conditions of the Bill of Lading then the Carrier shall act
as agent only to the Merchant in
arranging for delivery of the Goods to the amended Place of Delivery but shall then be under no
liability whatsoever for loss, damage
or delay to the Goods, howsoever arising.
12. FREIGHT
(1) Freight shall be deemed fully earned upon booking of the Goods for the Carriage and shall be
paid and non-returnable in any
event. Should the Merchant cancel the booking of the Goods for the Carriage, at any time and for
any reason whatsoever, he shall
be liable for the payment to the Carrier its agents, successors, or assignee, of a cancellation fee
equal to the value of the Freight,
including all charges, costs and expenses deriving from the cancellation of the booking.
(2) The Merchant’s attention is drawn to the stipulations concerning the currency in which the
Freight is to be paid, rate of exchange,
devaluation and other contingencies relative to Freight in the Applicable Tariff.
(3) Freight has been calculated on the basis of particulars furnished by or on behalf of the
Shipper. If the particulars furnished by or
on behalf of the Shipper are incorrect, it is agreed that additional Freight shall be payable to the
Carrier.
(4) The Merchant shall be responsible for the full payment to the Carrier, its agent,
representatives, successors or assignees, of the
entire Freight due pursuant to this Bill of Lading on the agreed date and for its full amount,
without possible deduction or set off of
any sort. Merchant irrevocably agrees to waive any right of set-off between the freight and any
amount due under a contractual or
tortious claim, which he has or may have against the Carrier and/or its Sub-Contractors, agents,
officers, employees or assignees,
whether or not the claim is related to the Carriage under this Bill of Lading and without prejudice
to its right to file such claim
subsequently.
(5) Any Person engaged by the Merchant to perform forwarding services in respect of the Goods
shall be considered to be the
exclusive agent of the Merchant for all purposes and any payment of Freight to such Person shall
not be considered payment to the
Carrier in any event. Failure of such Person to pay any part of the Freight to the Carrier shall be
considered a default by the Merchant
in the payment of Freight.
(6) If the Merchant fails to pay the Freight upon the due date, then, without prejudice to any
other right or remedy available to the
Carrier, Carrier may at its option either (i) postpone the fulfilment of its own obligations until
full payment of the Freight; (ii) charge
the Merchant interest on the amount unpaid, by applying per half year, for the first semester of
the relevant year, the bid interest rate
of the European Central Bank in force as of the 1st of January of the said year and the one in
force as of the 1st of July for the second
semester of the said year, increased by ten (10) percentage points, until payment is made in full (
a part of a month being treated as
a full month) plus a lump sum fee of forty (40) Euros for collection costs per issued invoice; (iii)
terminate the contract upon expiry of
a seven (7) calendar days written notice of the Carrier to the Merchant which has remained
without effect. In the event of a payment
delay by the Merchant, the Carrier may also for any new delivery, require payment prior to
shipment or suspend or cancel the contract
or any pending booking order regardless of the conditions that may have been agreed, without
incurring any liabilities whatsoever.
Whatever the option, the Merchant shall bear all attorneys’ fees, bailiffs’ fees and judicial costs
incurred by the Carrier for the recovery
of the unpaid Freight.
(7) Any credit granted by the Carrier to the Merchant shall be subject to the Carrier’s Standard
Credit Terms, available upon request
or on the website (link : http://www.cma-cgm.com/products-services/shipping-guide/bl-clauses).
(8) The Carrier may assign its rights with respect to Freight and other receivables without prior
consent of the Merchant.
13. LIEN
The Carrier its servants or agents shall have a lien on the Goods and any documents related
thereto and a right to sell the Goods
whether privately or by public auction for all Freight (including additional Freight payable under
Clause 12), primage, deadfreight,
pre-Carriage and/or inland Carriage whatsoever, demurrage, Container demurrage and storage
charges, detention charges, salvage,
general average contributions and all other charges and expenses whatsoever which are for the
account of the Goods or of the
Merchant and for the costs and expenses of exercising such lien and of such sale and also for all
previously unsatisfied debits
whatsoever due to him by the Merchant. The Carrier, its servants or agents shall also have a lien
on the Goods carried under this Bill
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of Lading and any document relating thereto for all sums including Freights an charges as above
mentioned due and outstanding on
any other Contracts for the Carriage of Goods concluded between the Carrier, its servants or
agents and the Merchant, at any time
where such sums or Freights remains due and unpaid. If the goods are unclaimed during a
reasonable time, or whenever in the
Carrier’s opinion, the Goods are likely to become deteriorated, decayed or worthless, the Carrier
may, at its discretion without
responsibility whatsoever, auction, sell, abandon or otherwise dispose of such Goods solely at
the risk and expense of the Merchant.
Nothing in this Clause shall prevent the Carrier from recovering from the Merchant the
difference between the amount due to him by
the Merchant and the amount realised by the exercise of the rights given to the Carrier under this
Clause.
14. GENERAL AVERAGE AND SALVAGE
(1) In the event of accident, danger, damage or disaster before or after the commencement of the
voyage, resulting from any cause
whatsoever, due to negligence or not, for which, or for the consequences of which, the Carrier is
not responsible, by statute, contract
or otherwise, the Merchant shall contribute with the Carrier in general average to the payment of
any sacrifices, losses or expenses
of a general average nature that may be made or incurred, and shall pay salvage and special
charges incurred in respect of the
Goods. All expenses in connection with a general average or salvage act to avoid damage to the
environment shall always be
considered as general average expenses.
(2) Any general average on a Vessel operated by the Carrier shall be adjusted according to York
Antwerp Rules 1994, at any port or
place at the option of the Carrier and in any currency at the option of the Carrier. Any general
average on a Vessel not operated by
the Carrier (whether a seagoing or inland waterways Vessel) shall be adjusted according to the
requirements of the operator of that
Vessel, in either case the Merchant shall give such cash deposit or other security as the Carrier or
the operator may deem sufficient
to cover the estimated general average contribution of the Goods before delivery if the Carrier or
the operator requires, or, if the
Carrier or the operator does not so require, within three months of the delivery of the Goods,
whether or not the Merchant had notice
of the Carrier’s or the operator’s lien at the time of delivery. The Carrier shall be under no
obligation to exercise any lien for general
average contribution due to the Merchant.
(3) Conversion into the currency of the adjustment shall be calculated at the rate prevailing on
the date of payment for disbursements
and on the date of completion of discharge of the Vessel for allowances,
(4) If a salving Vessel is owned or operated by the Carrier, salvage shall be paid for as fully as if
the salving Vessel or Vessels
belonged to strangers.
(5) In the event of the Master considering that salvage services are needed, the Merchant agrees
that the Master may act as its agent
to procure such services to Goods and that the Carrier may act as its agent to settle salvage
remuneration.
(6) If the Merchant contests payment of contribution to general average, salvage, salvage charges
and/or special charges to Goods
on any grounds whatsoever or fails to make payment of contribution within three months of the
issue of the adjustment thereof,
whether or not prior security has been provided, the Merchant shall pay interest for the period in
excess of three months on the
contribution due at two percent per annum above the base lending rate of the central bank of the
country in whose currency the
adjustment is issued, in addition to the contribution due.
15. BOTH-TO-BLAME COLLISION
If the Vessel comes into collision with another ship as a result of the negligence of the other ship
and any act, neglect or default of
the Master, Mariner, Pilot or the servants of the Carrier in the navigation or in the management
of the Vessel, the Merchant hereunder
will indemnify the Carrier against all loss or liability to the other or non-carrying ship or her
Owners in so far as such loss or liability
represents loss of, or damage to, or any claim whatsoever of the Merchant, paid or payable by the
other or non-carrying ship or her
Owners to the Merchant and set-off, recouped or recovered by the other or non-carrying ship or
her Owners as part of their claim
against the carrying Vessel or Carrier. The foregoing provisions shall also apply where the
Owners, operators or those in charge of
any ship or ships or objects other than, or in addition to, the colliding ships or objects are at fault
in respect of a collision or contact.
16. FCL MULTIPLE BILLS OF LADING
(1) Goods will only be delivered in a Container to the Merchant if all Bills of Lading in respect
of the contents of the Container have
been surrendered authorizing delivery to a single Merchant at a single Place of Delivery. In the
event that this requirement is not
fulfilled the Carrier may unpack the Container and, in respect of Goods for which Bills of Lading
have been surrendered, deliver them
to the Merchant on a LCL basis. Such delivery shall constitute due delivery hereunder, but will
only be effected against payment by
the Merchant of LCL Service Charges and any charges appropriate to LCL Goods (as laid down
in the Tariff) together with the actual
costs incurred for any additional services rendered.
(2) If this is an FCL multiple Bill of Lading (as evidenced by the qualification of the tally
acknowledged overleaf to the effect that it is
“One of part cargoes in the Container”), then the Goods detailed overleaf are said to comprise
part of the contents of the Container
indicated. If the Carrier is required to deliver the Goods to more than one Merchant and if all or
part of the total Goods within the
Container consists of bulk Goods or inappropriate Goods or is or becomes mixed or unmarked or
unidentifiable, the Holders of Bills
of Lading relating to Goods within the Container shall take delivery thereof (including any
damaged portion) and bear any shortage
in such proportions as the Carrier shall in its absolute discretion determine, and such delivery
shall constitute due delivery hereunder.
17. DESCRIPTION OF GOODS AND NOTIFICATION
The Carrier, its Agents and servants shall not in any circumstances whatsoever be under any
liability for insufficient packing or
inaccuracies, obliteration or absence of marks, numbers, addresses or description, nor for mis-
delivery due to marks or countermarks
or numbers, nor for failure to notify the Consignee of the arrival of the Goods, any custom of the
port to the contrary notwithstanding.
18. OPTIONAL STOWAGE AND DECK CARGO
(1) The Goods may be packed by the Carrier in Containers and consolidated with other Goods in
Containers.
(2) Goods, whether or not packed in Containers, may be carried on deck or under deck without
notice to the Merchant. In the absence
of the mention “under deck” on the back hereof, or any similar mention, the Goods shall be
presumed carried on ship’s deck. All such
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Goods whether carried on deck or under deck, shall participate in general average and shall be
deemed to be within the definition of
Goods for the purposes of The Hague Rules or US COGSA and shall be carried subject to those
Rules.
(3) In the event the Goods which are stated on the back hereof as being carried on deck (or in the
event of the absence of the mention
“under deck” or any similar mention), and which are so carried, the Hague Rules shall not apply
and the Carrier shall be under no
liability whatsoever for loss, damage or delay, howsoever arising, and whether or not caused by
the negligence on the part of the
Carrier, its servants, Agents or Sub-Contractors. If Carrier’s liability is anyway implicated, the
liability of the Carrier shall be limited
according to the Terms and Conditions of this contract and otherwise to the Hague Rules, Hague
and Visby Rules or the US COGSA
rules, whichever is applicable under the article 6 of the Bill of Lading.
19. LIVE ANIMALS
The Hague Rules shall not apply to the Carriage of live animals, which are carried at the sole risk
of the Merchant. The Carrier shall
be under no liability whatsoever for any injury, illness, death, delay or destruction howsoever
arising. Should the Master in its sole
discretion consider that any live animals likely to be injurious to any other live animal or any
Person or property on board, or to cause
the vessel to be delayed or impeded in the prosecution of the Carriage, such live animal may be
destroyed and thrown overboard
without any liability attaching to the Carrier. The Merchant shall indemnify the Carrier against
all or any extra costs incurred for any
reason whatsoever in connection with the Carriage of any live animal.
20. DANGEROUS GOODS
(1) No Goods which are or may become dangerous, inflammable or damaging (including radio-
active materials), or which are or may
become liable to damage any property whatsoever, shall be tendered to the Carrier for Carriage
without its express consent in writing,
and without the Container as well as the Goods themselves being distinctly marked on the
outside so as to indicate the nature and
character of any such Goods and so as to comply with any applicable laws, regulations or
requirements. If any such Goods are
delivered to the Carrier without such written consent and/or marking, or if in the opinion of the
Carrier the Goods are liable or deemed
liable to become of dangerous, inflammable or damaging nature, they may at any time be
destroyed, disposed of, abandoned, or
rendered harmless without compensation to the Merchant and without prejudice to the Carrier’s
right to Freight.
(2) The Merchant undertakes to provide the Carrier with all accurate and up to date detailed
information related to the nature,
dangerousness, and stowage, storage and transportation of such Goods and that such Goods are
packed stowed and stuffed in a
manner adequate to withstand the risks of Carriage having regard to their nature and in
compliance with all laws or regulations which
may be applicable during the Carriage.
(3) Whether or not the Merchant was aware of the nature of the Goods, the Merchant shall
indemnify the Carrier against all claims,
losses, damages or expenses arising in consequence of the Carriage of such Goods.
(4) Nothing contained in this Clause shall deprive the Carrier of any of its rights provided for
elsewhere.
21. PERISHABLE GOODS
(1) Goods of a perishable nature shall be carried in ordinary Containers without special
protection, services or other measures unless
there is noted on the reverse side of this Bill of Lading that the Goods will be carried in a
refrigerated, heated, electrically ventilated
or otherwise specially equipped Container or are to receive special attention in any way. The
Merchant undertakes not to tender for
transportation any Goods which require refrigeration without giving written notice of their nature
and the required temperature setting
of the thermostatic controls before receipt of the Goods by the Carrier in case of refrigerated
Container(s) packed by or on behalf of
the Merchant. The Merchant undertakes that the Goods have been properly stowed in the
Container and that the thermostatic controls
have been adequately set by him before receipt of the Goods by the Carrier and, if necessary, that
the Goods have been pre-chilled
before the loading into the Container. The Merchant’s attention is drawn to the fact that
refrigerated Containers are not designed to
freeze down Goods which have not been presented for stuffing at or below its designated
carrying temperature and the Carrier shall
not be responsible for the consequences of cargo presented at a higher temperature than that
required for the transportation. If the
above requirements are not complied with the Carrier shall not be liable for any loss of or
damage to the Goods howsoever arising.
The Merchant’s attention is also drawn to the fact that refrigerated containers are not designed to
automatically monitor and control
humidity levels and cannot increase humidity levels in the container. Unless specific instructions
concerning humidity levels are given
by the Merchant, and accepted by the Carrier, Carrier does not guarantee and shall not be
responsible for the maintenance of any
level of humidity inside the Container.
(2) The term “apparent good order and condition” when used in this Bill of Lading with
reference to Goods which require refrigeration
does not mean that the Goods, when received were verified by the Carrier as being at the
designated carrying temperature.
(3) The Merchant is free to use its own temperature recording device. In no circumstance shall
the Carrier be under any obligation to
release the extracted data log records of the Container itself to the Merchant or any other Person.
22. INSPECTION OF THE GOODS
(1) If by order of the authorities at any place, a Container has to be opened for the Goods to be
inspected, the Carrier will not be
liable for any loss or damage incurred as a result of any opening, unpacking, inspection or re-
packing. The Carrier shall be entitled
to recover the cost of such opening, unpacking, inspection and re-packing from the Merchant.
(2) By tendering the Goods for Carriage, the Merchant authorises the Carrier to open the
Container at its sole discretion and to
proceed with the inspection and weighing of the Goods. Should the Goods be misdeclared, the
Carrier reserves its right to stop the
transport at any time according to Clause 10 of the Bill of Lading without prejudice to the
Carrier’s other rights including those under
Clauses 25 and 26 of the Bill of Lading.
(3) In no circumstance whatsoever, the Carrier shall be liable for any loss, damage or delay
howsoever arising from any action taken
under this Clause.
23. MERCHANT-STUFFED CONTAINERS
If a Container has not been stuffed by or on behalf of the Carrier:
BL LARA CMA CGM – printed by Paragon CC - A4 – 07/21
(1) The Carrier shall not be liable for loss of or damage to the Goods caused by:
(a) the manner in which the Goods has been packed, stowed, stuffed or secured, or
(b) the unsuitability of the Goods for Carriage in the Container supplied, or
(c) the unsuitability, the defective condition of the Container or the incorrect setting - ventilation
or any other refrigeration controls
thereof - provided that, if the Container has been supplied by or on behalf of the Carrier, this
unsuitability or defective condition
would have been apparent upon inspection by the Merchant at or prior to the time when the
Container was stuffed, or
(d) Stuffing refrigerated Goods that are not at the correct temperature for Carriage, or
(e) condensation.
(2) The Merchant is responsible for the packing and sealing of all Merchant-stuffed Containers
and, if a Merchant-stuffed Container
is delivered by the Carrier with its original seal as affixed by the Merchant intact, the Carrier
shall not be liable for any shortage of
Goods ascertained at delivery.
(3) The Merchant shall indemnify the Carrier against any loss, damage, liability or expense
whatsoever and howsoever arising caused
by one or more of the matters referred to in Clause 23(1), save that, if the loss, damage liability
or expense was caused by a matter
referred to in Clause 23(1)(c), the Merchant shall not be liable to indemnify the Carrier in respect
thereof unless the provision referred
to in that Clause applies.
24. CARRIAGE AFFECTED BY CONDITION OF GOODS
If it appears at any time that, due to their condition, the Goods cannot safely or properly be
carried (or carried further), either at all or
without incurring any additional expense or taking any measure(s) in relation to the Container or
the Goods the Carrier may without
notice to the Merchant (but as its agent only) take any measure(s) and/or incur any additional
expense to carry or to continue the
Carriage thereof, and/or sell or dispose of the Goods, and/or abandon the Carriage and/or store
them ashore or afloat, under cover
or in the open, at any place, whichever the Carrier, in its absolute discretion, considers most
appropriate, which abandonment,
storage, sale or disposal shall be deemed to constitute due delivery under this Bill of Lading. The
Merchant shall indemnify the Carrier
against any additional expense and liability so incurred.
25. DESCRIPTION OF GOODS
(1) This Bill of Lading shall be prima facie evidence of the receipt by the Carrier from the
Shipper in apparent good order and condition,
except as otherwise noted, of the total number of Containers or other packages or units indicated
in the box on the back hereof
entitled “Total No of Containers / Packages received by the Carrier”.
(2) Except as provided in Clause 25 (1), no representation is made by the Carrier as to the
weight, contents, measure, quantity,
quality, description, condition, marks, numbers or value of the Goods, and the Carrier shall be
under no responsibility whatsoever in
respect of such description or particulars.
(3) If any particulars of any Letter of Credit and/or Import Licence and/or Sale Contract and/or
Invoice or order number and/or details
of any contract to which the Carrier is not a party are shown on the back of this Bill of Lading,
such particulars are included solely at
the request of the Merchant for its convenience. The Merchant agrees that the inclusion of such
particulars shall not be regarded as
a declaration of value and in no way increases the Carrier’s liability under this Bill of Lading.
The Merchant further agrees to indemnify
the Carrier against all consequences of including such particulars in this Bill of Lading.The
Merchant acknowledges that, except when
the provisions of Clause 8 (2) apply, the value of the Goods is unknown to the Carrier.
(4) The Merchant warrants to the Carrier that the particulars relating to the Goods as set out
overleaf have been checked by the
Merchant on receipt of this Bill of Lading and that such particulars, and any other particulars
furnished by or on behalf of the Merchant,
are adequate and correct. The Merchant also warrants that the Goods are lawful Goods and
contain no contraband, drugs or other
illegal substances or stowaways, and that the Goods will not cause loss, damage or expense to
the Carrier, or to any other cargo.
(5) Without prejudice to any other rights and defences afforded by the Bill of Lading - and
irrespective of any loss, damages, fines
and expenses suffered or incurred by the Carrier that may always be claimed by virtue of clause
26 - in case of any failure of the
Merchant to comply with the clause 25 (4), the Carrier shall be entitled to charge the Merchant at
any time (i) an amount of USD
2,000 as processing and administrative fees per Container or for non-containerized Goods per
Bill of Lading in addition to (ii) a
misdeclaration fee of either USD 15,000 per Container or for non-containerized Goods per Bill
of Lading in respect of dangerous
Goods cargo, or USD 5,000 per Container or per Bill of Lading for non-containerized Goods in
respect of non-dangerous Goods
cargo.
26. SHIPPER’S / MERCHANT’S RESPONSIBILITY
(1) All of the Persons coming within the definition of Merchant in Clause 1 shall be jointly and
severally liable to the Carrier for the
due fulfilment of all obligations undertaken by the Merchant in this Bill of Lading, and remain so
liable throughout Carriage
notwithstanding their having transferred this Bill of Lading and/or title to the Goods to any third
party. Such liability shall include but
not be limited to court costs, expenses and attorney’s fees incurred in collecting charges and
sums due to the Carrier.
(2) The Merchant warrants to the Carrier that the particulars relating to the Goods as set out
overleaf have been checked by the
Merchant on receipt of this Bill of Lading and that such particulars, and any other particulars
furnished by or on behalf of the Merchant,
are adequate and correct. The Merchant also warrants that the Goods are lawful Goods and
contain no contraband, drugs or other
illegal substances or stowaways, and that the Goods will not cause loss, damage or expense to
the Carrier, or to any other cargo.
(3) The Merchant shall indemnify the Carrier against all loss, damage, fines and expenses arising
or resulting from any breach of any
of the warranties in Clause 26 (2) hereof or from any other cause in connection with the Goods
for which the Carrier is not responsible.
(4) The Merchant shall comply with all regulations or requirements of customs, port and other
authorities, with the provisions of
applicable anticorruption laws, including but not limited to the United Nations Convention
against Corruption (2005), the U.S Foreign
Corrupt Practices Act of 1977, the UK Bribery Act of 2010, with the applicable economic
sanctions regulations, including but not
limited to the ones published by the United States, European Union, United Nations and United
Kingdom. The Merchant further
represents and warrants that it is not listed or detained/controlled by an entity listed by the United
States, European Union, United
Nations or United Kingdom as a “Blocked Person”, “Denied Person”, “Specially Designated
National”. The Merchant shall bear and
BL LARA CMA CGM – printed by Paragon CC - A4 – 07/21
pay all duties, taxes, fines, imposts, expenses or losses (including, without prejudice to the
generality of the foregoing, Freight for
any additional Carriage undertaken) incurred or suffered by reason of any failure to so comply,
or by reason of any illegal, incorrect
or insufficient marking, numbering or addressing of the Goods, or the discovery of any drugs,
narcotics or other illegal substances
within Containers packed by the Merchant or inside Goods supplied by the Merchant or any
stowaways discovered inside the
Container and shall indemnify the Carrier in respect thereof.
(5) The Merchant is responsible for returning any empty Container, with interior clean, free of
any dangerous goods placards, labels
or markings, at the designated place. The Carrier is entitled to collect a deposit from the
Merchant at the time of release of the
Container which shall be remitted as security for payment of any sums due to the Carrier, in
particular for payment of all Freight and
may be kept by the Carrier fully or partially. In no case shall this deposit accrue any interest.
(6) Containers released into the care of the Merchant for packing, unpacking or any other
purpose whatsoever are at the sole risk of
the Merchant until redelivered to the Carrier. The Merchant shall indemnify the Carrier of all
loss, damage, injury, fines or expenses
caused or incurred by to such Containers whilst in Merchant control and/or until redelivery to the
Carrier. Merchants are deemed to
be aware of the dimensions of any Containers released to them.
27. SUB-CONTRACTING AND INDEMNITY
(1) The Carrier shall be entitled to sub-contract the Carriage on any terms whatsoever.
(2) The Merchant undertakes that no claim or allegation shall be made against any Person
whomsoever by whom the Carriage is
performed or undertaken (including all Sub-Contractors of the Carrier), other than the Carrier,
which imposes or attempts to impose
upon any such Person, or any Vessel owned by any such Person, any liability whatsoever in
connection with the Goods or the
Carriage of the Goods, whether or not arising out of negligence on the part of such Person and, if
any such claim or allegation should
nevertheless be made, to indemnify the Carrier against all consequences thereof. Without
prejudice to the foregoing every such
Person shall have the benefit of every right, defence, limitation and liberty of whatsoever nature
herein contained or otherwise
available to the Carrier as if such provisions were expressly for its benefit; and in entering into
this contract, the Carrier, to the extent
of these provisions, does so not only on its own behalf but also as agent and trustee for such
Persons.
(3) The provisions of Clause 27 (2), including but not limited to the undertakings of the
Merchant contained therein, shall extend to
claims or allegations of whatsoever nature against other Persons chartering space on the carrying
Vessel.
(4) Nothing herein contained shall be construed to limit or to relieve any beneficiaries of this
Clause from liability to the Carrier for
damage, loss and liability arising or resulting from their fault or neglect.
(5) The Merchant further undertakes that no claim or allegation in respect of the Goods shall be
made against the Carrier by any
Person other than in accordance with the Terms and Conditions of this Bill of Lading which
imposes or attempts to impose upon the
Carrier any liability whatsoever in connection with the Goods or the Carriage of the Goods,
whether or not arising out of negligence
on the part of the Carrier and, if any such claim or allegation should nevertheless be made, to
indemnify the Carrier against all
consequences thereof.
28. VARIATION OF THE CONTRACT
No servant or agent of the Carrier shall have the power to waive or vary any of the terms of this
Bill of Lading, unless such waiver or
variation is in writing and is specifically authorised or ratified in writing by the Carrier.
29. VALIDITY
In the event that anything herein contained is inconsistent with any applicable international
Convention or national law which cannot
be departed from by private contract, the provisions hereof shall to the extent of such
inconsistency but no further be null and void.
30. LAW
Except as specifically provided elsewhere herein, French law shall apply to the Terms and
Conditions of this Bill of Lading, and
French law shall also be applied in interpreting the Terms and Conditions hereof, excluding its
conflict of law provisions.
31. JURISDICTION
All claims and actions arising between the Carrier and the Merchant in relation with the contract
of Carriage evidenced by this Bill of
Lading shall be brought before the Tribunal de Commerce de Marseille and no other Court shall
have jurisdiction with regards to
any such claim or action. Notwithstanding the above, the Carrier is also entitled to bring the
claim or action before the Court of the
place where the defendant has his registered office.