1、Xiefy.SIB.SWUFEChapter 2.International Cargo TransportationFengyan XieXiefy.SIB.SWUFEOutline:1.Features of ocean transportation 2.Modes of Ocean Transportation3.Ocean transport Freight4.Bill of Lading5.Other modes of transportationXiefy.SIB.SWUFESection1.Futures of Ocean TransportationAdvantage:?Low
2、 freight cost?Large capacity?Widely connected ocean routesDisadvantage:?Comparatively slow?Vulnerable to more types of risk?Inefficient to punctuality Xiefy.SIB.SWUFEXiefy.SIB.SWUFESection 2.Modes of ocean transport?Liner?Tramps?Ocean Transport Liability ConventionsxfyXiefy.SIB.SWUFE2.2.1 LinerA.Ide
3、a of liner liner:a vessel which sails on a fixed sailing routes,calls at a fix basic portsat a comparatively fixed timetableand charges at comparatively fixed freight rates.liner transport:transportation service provided by liner companies.xfyXiefy.SIB.SWUFEB.Types of linersa.Conference linersb.Non-
4、conference liners Discussion:Is conference necessary for the development of liner transport?xfyLiner Conference:organizationof liner companies for the coordination of shipping affairs like routes,basic ports,freight,ectXiefy.SIB.SWUFEC.Features of liner shipping?With 4“fixed”character?The carrier is
5、 in charge of loading and unloading?Carry shipments of big or small quantity?Usually equipped with newer and quicker vesselsxfyXiefy.SIB.SWUFED.Process of Liner ShippingThe shipperLiner Co.LinerShipping Order(托运单托运单/订舱单）loadingMates Receipt（M/R）(大副收据）B/LM/RxfyXiefy.SIB.SWUFEXiefy.SIB.SWUFEE.Shipping
6、 contract under liner shipping order+B/LShipping Order:an offer from the shipper by natureB/L:an acceptance from the carrier by naturePrinciple:Contract is effective when an offer is accepted.Xiefy.SIB.SWUFE2.2.2 Tramps(charter)A.Idea of trampsCharter/tramps/general traffic:vessels operated on a non
7、-scheduled basis and sail where the cargo presents itselfB.Main types of charter?voyage charter?Time charter C.Features of charter transport comparing with liner transport:DiscussionxfyXiefy.SIB.SWUFED.Shipping contract under charter Charter PartyCharter Party:a formal contract between the shipper a
8、nd the carrier indicating details of shipping service and obligations of both parties.Xiefy.SIB.SWUFEContent of charter party:Charter Party?Owners Liability Clause?Deviation Clause?Payment of Freight?Loading/Discharging?Laytime?Demurrage?Lien Clause?Cancelling Clause?Bill of Lading?Both to Blame Cla
9、use?General Average and New Jason Clause?Taxes and Dues Clause?Agency?Brokerage?General Strike Clause?General Ice Clause?Law and Arbitration?xfyXiefy.SIB.SWUFEE.Process of Tramps Transport1.Charter Party2.Loading3.Bill of Lading4.Transport6.Unloading7.Take Delivery with B/L5.Pay for B/LShipperCarrie
10、rBuyerSellerXiefy.SIB.SWUFEF.Rule of Loading and Unloading under trampsLiner TermsFree In(FI)Free Out(FO)Free In and Out(FIO)Free In and Out,Stowed and Trimmed(FIOST)p124Xiefy.SIB.SWUFE2.2.3 Liability conventions concerning ocean transportationA.Opening case:?a French container liner encountered typ
11、hoon Prapiroon on its way from Shanghai to Ningbo,in which more than 100 containers on the liner dropped into the sea,causing a lot of damage.?owners of damaged cargo and insurers with the right of subrogation,15 altogether,instituted court action against the carrier at the Shanghai maritime court.?
12、Question:how would the plaintiff and the defendant plea for themselves respectively?Xiefy.SIB.SWUFEB.The list of major conventions?International Convention for the Unification of Certain Rules of Law relating to Bill of Lading(“HAGUE RULES”)(International Law Association,1924)?1968 Protocol to Amend
13、 the International Convention for the Unification of Certain Rules of Law Relating to Bills of Lading(Hague-Visby Rules)(Comit Maritime International，1968)?United Nations Convention on the Carriage of Goods by Sea(Hamburg Rules)(UN,1978)xfyXiefy.SIB.SWUFEC.Some rules of the 3 conventions Hague R Hag
14、ue-Visby R Hamburg R Liability scope Tackle to tackle Tackle to tackle Port to port Items of defenses 17 17 3 Liability of carrier US$500 per package US$666.67.(1968)SDR666.67(1979)SDR 835.Limitation of action against carrier 1 year after delivery of the goods 1 year after delivery of the goods,prol
15、onged upon negotiation 2 year after delivery of the goods xfyXiefy.SIB.SWUFEMaterial 1:The 17 defenses under Hague Rules:Act,neglect,or default of the master,mariner,pilot,or the servants of the carrier in the navigation or in the management of the ship.Fire,unless caused by the actual fault or priv
16、ity of the carrier.Perils,dangers and accidents of the sea or other navigable waters.Act of God.Act of war.Act of public enemies.Arrest or restraint or princes,rulers or people,or seizure under legal process.Xiefy.SIB.SWUFEQuarantine restrictions.Act or omission of the shipper or owner of the goods,
17、his agent or representative.Strikes or lockouts or stoppage or restraint of labour from whatever cause,whether partial or general.?Riots and civil commotions.?Saving or attempting to save life or property at sea.?Wastage in bulk or weight or any other loss or damage arising from inherent defect,qual
18、ity or vice of the goods.Xiefy.SIB.SWUFE14.Insufficiency of packing.15.Insufficiency or inadequacy of marks.16.Latent defects not discoverable by due diligence.17.Any other cause arising without the actual fault or privity of the carrier,or without the actual fault or neglect of the agents or servan
19、ts of the carrier,but the burden of proof shall be on the person claiming the benefit of this exception to show that neither the actual fault or privity of the carrier nor the fault or neglect of the agents or servants of the carrier contributed to the loss or damage.xfyXiefy.SIB.SWUFEMaterial II.Th
20、e 3 defenses under Hamburg RulesDamage the carrier took reasonable steps to avoidDamage by fireDamage due to an attempt by the carrier to save life or property at seaXiefy.SIB.SWUFEDiscussion:Review of the opening caseHow to evaluate the 3 famous conventions?Xiefy.SIB.SWUFESection 3.Freight of Ocean
21、 TransportFreightLiner freightCharter freightXiefy.SIB.SWUFE2.3.1 Freight of Liner-tariffA.The formulaFreight=Base freight+Additional charge=Quantity x Base Ratex(1+Additional Rate)(Surcharge=additional charge)xfyXiefy.SIB.SWUFEB.Base freightDefinition:Base freight is calculated on the main/regular
22、costs of transport from the port of shipment to port of destination and it listed on the tariff of the liner.TARIFFxfyXiefy.SIB.SWUFEMain criteria used in the tariff for calculating basic freightW MW/M A.V.W/M or A.V.Unit/Head Minimum rate Open Rate(negotiated rate)xfyP121Xiefy.SIB.SWUFEClassificati
23、on of Commodities Commodity Basis Class Fishing Implement M 9 Flour W 5 Fruit,dried M 11 Fruit,fresh W 7 Furniture M/Ad.V.16 Sample of tariff:xfyXiefy.SIB.SWUFEPort of Destination(from CMP)Class Vancouver St-John Toronto Hamilton 5 183 215 235 7 205 248 270 9 235 283 309 11 285 337 368 16 449 2%off
24、FOB V.536 1.5%off FOB V.585 3%off FOB V.Scale of Class Rate forChina-Canada Service(HKD)xfyXiefy.SIB.SWUFEC.Additional charge?Additional chargeis calculated on the SEPECIAL costs of transport from the port of shipment to port of destination and it NOT listed on the tariff of the liner.?Some examples
25、:BAF(Bunker Adjust Factor)CAF(Currency Adjust Factor)Port Congestion SurchargeHeavy lift additional Lengthy cargo additionalAdditional on directxfy+more on P122Xiefy.SIB.SWUFED.Illustration of liner freight calculation Suppose:Company A exports 1 000 cases of Commodity Y to London.The volume per cas
26、e is 40cm x 30cm x 20cm,and the gross weight is 30kg.For Commodity Y,the freight rate basis is W/M,and the Freight Tariff(China-London)is USD230,with a 10%port surcharge.How much is the total freight?Calculation:Total weight:0.03 M/T x l 000 cases=30 M/TTotal measurement:0.4 x 0.3 x 0.2 x I 000 case
27、s=24 M3Weight Measurement,W is the freight basisTotal freight=total weight x basic rate x(1+surcharge rate)=30 x230 x(1+10%)=USD7590=?Xiefy.SIB.SWUFE2.3.2 Freight of CharterA.Decision of Charter Freightbynegotiation between the shipper and the carrier and indicated in the Charter Party.B.Some ways t
28、o calculate charter freight:a.Freight=Shipping Weight x freight rateb.Freight=Landing Weight x freight ratec.Freight=On Lump-sum FreightXiefy.SIB.SWUFESection 4.Bill of Lading2.4.1 DefinitionBill of Lading(B/L)is a document which is issued by an ocean carrier to a shipper with whom the carrier has e
29、ntered into a contract for the carriage of goods.Sample of B/L:p153-155xfyXiefy.SIB.SWUFE2.4.2 Contents of B/L?On the face of the B/L:The basic terms about the carriage?On the backof the B/L:general terms and conditions about the rights and liabilities of the shipper and the carrier in printed form
30、usually based on intern.rules like:Hague Rules(海牙规则)Visby Rules(维斯比规则)Hamburg Rules(汉堡规则)Xiefy.SIB.SWUFE2.4.3 Filling the B/LMain items:Shipper:the one who deliver the goods to the carriera.The exporterb.Agent of the exportConsignee:the one who take delivery of the goods at the port of destinationa.
31、a specific person(e.g.the importer)b.to orderto order of somebodyc.bearer/holder Xiefy.SIB.SWUFENotifying party:the one to whom the carrier sends the notice of arrival of goodsa.the importerb.other specified personFor the purpose of notice,both the name and the detailed address of notifying party sh
32、ould be filled in.Xiefy.SIB.SWUFEMarks&No.:the Shipping Mark printed on the shipping packagea.Fill in the assigned shipping mark in the SC or LCb.If no assignment in SC or LC,fill in a standard onee.g.ABC SC 3253Rotterdam1/1000Xiefy.SIB.SWUFEDescription of Goods:the name and quality description of t
33、he good as per the SC or LCe.g.Green TeaLonggang Brand,Grade OneXiefy.SIB.SWUFELADEN ON BOARD THE VESSELDATE:refer to the date when goods are on board the shipAT:refer to the port of shipmentSigned:signature of the carrier or his agentXiefy.SIB.SWUFE2.4.4 Functions of the B/La.it is a cargo receiptb
34、.it is evidence of a contract of carriagec.it is a document of title to the goods.Controversial xfyXiefy.SIB.SWUFE2.4.5 Application of B/LShipper carrierbanksTransfereeimporterB/LB/LB/LB/LB/LB/LxfycarrierXiefy.SIB.SWUFE2.4.6 Issue and Transfer of B/LA.Issue of B/LTime of Issuing:When goods are on bo
35、ard the ship Issuer:The carrier or his representative Original Copies to be issued:2-3usuallyxfyXiefy.SIB.SWUFEB.Condition and Mode of Transfer:TitleMode of TransferTo orderTo order of sb.endorsementBearerHolderdeliverySb.Non-transferableXiefy.SIB.SWUFEC.3 ways of endorsement:Endorsement:the owner o
36、f B/L writes on the back of the B/L to show his willingness of transfer and the transferee he refers to.(1)Special Endorsemente.g.Endorse to ABC Co.Jack ChenXY Co.May 11,2011Xiefy.SIB.SWUFE(2)Order Endorsement(3)Blank EndorsementJack ChenXY Co.May 11,2011Endorse to order of ABC Co.Jack ChenXY Co.May
37、 11,2011Xiefy.SIB.SWUFED.Implication of endorsementSpecial E.:the B/L could not be transferred againOrder E.:the B/L could be transferred by further endorsementBlank E.:the B/L could be transferred only by deliveryXiefy.SIB.SWUFE2.4.7 Types of B/LOn-board B/L Received for Shipment B/LClean B/L Uncle
38、an B/LStraight B/LOrder B/L Bearer B/LStale B/LAnte-dated B/L Advanced B/L Direct B/LTransshipment B/LXiefy.SIB.SWUFEStale B/L,Ante-dated B/L,Advanced B/LType of B/LcharacterStale B/Lthe B/L arrives the port of destination later than the cargothe B/L is presented to the bank later than the time of p
39、resentation of L/CAnte-dated B/L The date of B/L is earlier than the regular date of B/LAdvanced B/Lthe B/L is issued before the goods are on board or totally on board the shipXiefy.SIB.SWUFESection 5 Other Modes of Intern.TransportationRail TransportRoad TransportAir TransportParcel TransportContai
40、ner TransportMultimodal transportInternationalFeatures?Xiefy.SIB.SWUFETeaching and Learning Arrangement:Reading and exercise after classXiefy.SIB.SWUFEIndividual/group workIndividual work:Exercise 2Group work:Case study1.Litigation over the application of Hague Rules2.British buyers Claim against a late shipment
