English in Maritime Business and Law - Vidishcheva T.V. - 2008 PDF

CONTENTS
UNIT 1. SALES CONTRACT........................................................................................................4

UNIT 2. COMPLAINTS AND ADJUSTMENTS......................................................................... 10
UNIT 3. TERMS OF PAYMENT................................................................................................. 16
UNIT 4. TERMS OF PAYMENT IN FOREIGN TRADE. Part 1...................................................23
UNIT 5. TERMS OF PAYMENT IN FOREIGN TRADE. Part II.................................................29
UNIT 6. CUSTOMS. Part I ...........................................................................................................35
UNIT 7. CUSTOMS. Part II..........................................................................................................39
UNIT 8. TRANSPORTATION OF CARGO................................................................................ 44
UNIT 9. TRANSPORT LOGISTIC SCHEME OF DELIVERY....................................................51
UNIT 10. INTERMODAL TRANSPORTATION......................................................................... 56
UNIT 11. CLASSIFICATION OF SHIPS. KINDS OF CARGOES....................................... 63
UNIT 12. INCOTERMS............................................................................................................... 67
UNIT 13. CHARTERING (GENERAL). Part I .............................................................................74
UNIT 14. CHARTERING (GENERAL). Part II............................................................................85
UNIT 15. VOYAGE CHARTER AGREEMENTS. Part 1............................................................. 90
UNIT 16. VOYAGE CHARTER AGREEMENTS. Part II...........................................................100
UNIT 17. TIME CHARTER AGREEMENTS.............................................................................111
UNIT 18. CONTRACT BETWEEN SHIPOWNER AND CARGO OWNER..............................123
UNIT 19. BILL OF LADING. Part 1........................................................................................... 128
UNIT 20. BILL OF LADING. Part II.......................................................................................... 133
UNIT 21. MARINE INSURANCE. Part 1....................................................................................138
UNIT 22. MARINE INSURANCE. Part II..................................................................................145
UNIT 23. TYPES OF LOSS........................................................................................................151
UNIT 24. GENERAL AVERAGE AND THE YORK-ANTWERP RULES................................155
UNIT 25. MARINE CLAIMS. HAGUE-VISBY RULES. HAMBURG RULES..........................163
UNIT 26. NOTING PROTEST................................................................................................... 170
APPENDICES...........................................................................................................................176
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UNIT 1
SALES CONTRACT
Vocabulary
4 Sales contract- договор купли-продажи
4- Party to a contract -договаривающаяся сторона
4 To conclude a contract —заключать договор
4 To fluctuate - колебаться
4 Binding agreement - юридически обязательный договор
4 Non-binding agreement -юридически необязательный договор
4 То fulfill liabilities —выполнять обязательства
4 Title —право собственности
4 Document o f title -товарораспорядительный документ
4 Breach o f contract - нарушение контракта
4 То claim compensation - требовать компенсацию
4 An injured party —пострадавшая сторона
Exercise 1. Read the text and answer the questions

A sales contract is a legally binding agreement reached by the seller and the buyer
(the parties to the contract). It can be made orally or in writing, although it is usual for the
contract to be drawn up in writing to prevent disputes.
There are 3 ways to conclude a sales contract:
1. This is the most normal way of concluding a sales contract, because most offers
are non-binding. As non-binding offers can be changed or withdrawn at any time, a sales
contract doesn’t exist until the parties confirm the order, making any changes impossible.
2. Sellers tend to make firm offers when trading in goods where the prices fluctuate a
lot. They set a fixed price and if the buyer doesn’t place an order within the period of time
where this price is valid, the offer expires. The seller can then make another offer with new
prices to keep up with the prices on the market.
3. In this case, if the buyer is not interested in the goods, he is expected to return them
within a certain period of time, otherwise he will have to pay for them.
After a sales contract has been concluded the seller and buyer have to fulfill certain
liabilities.
The seller’s liabilities are:

1. To deliver the goods on time and in perfect condition
2. To ensure that the title to the goods is transferred to the buyer - in other words, the
seller has to make sure that the buyer becomes the owner of the goods. This is normally
done by passing a special document, the document o f title, to the buyer.
The buyer’s liabilities are:

1. To accept delivery of the goods (this prevents him from changing his mind after the
goods have been sent)
2. To pay for the goods within the time agreed.
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If one party doesn’t fulfill its liabilities, the contract is broken (this is called the
breach o f contract).
In this case the other party (the injured party) can claim compensation.
1. What’s the obligatory condition while concluding a sales contract?

2. Why does an offer expire?
3. What does ‘afirm offer’ mean?
4. Enumerate sellers ’ and buyers ’ liabilities.
Exercise 2. Match each item to its definition
1. Valid contract A. Money paid to someone because they’ve suffered injury or

loss, or because something they own has been damaged
2. Liability B. An agreement (contract, promise) which must be obeyed
3. Title C. A document, agreement is legally or officially acceptable
4. Compensation D. An actual failure by a party to a contract to perform its

obligations
5. Charge E. The legal right to have or own something
6. Costs F. Legal responsibility for something, especially for paying

money that’s owed, or for damage or injury
7. Binding G. The amount of money you have to pay for goods and
services
8. Breach o f contract I. The money that you must regularly spend in order to run a
business, a home, etc.
1 2 3 4 5 6 7 8
Exercise 3. Analyze given situations

Did a breach of contract take place? If so, how? If not, why not?
1. A mail order Co. sent some goods to Mr. Adams. However, he refused to accept
delivery of them as they had not been ordered.
2. Mr. Williams ordered 20 video-recorders from a Co. selling electrical goods.
However, he had to return one of the video-recorders because it didn’t work.
3. Mr. Watson refused to pay the full price for a customized machine he had ordered;
because it didn’t exactly meet the specifications he had given.
4. Mr. Jackson sent a free sample of wine glasses to a potential new customer.
Unfortunately, the package burst open in the post and the glasses were broken.
5. Mr. Johnson sent some spare parts to an airline. However, a series of staff strikes
brought the airline into financial difficulties and his invoice was only paid 6 months later.
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Exercise 4. Below are the main paragraph titles from a Sale Agreement. Match the
paragraph titles with the details o f the contents o f each paragraph
1. Price and payment A. The Buyer only receives title to the Goods once he has paid
all sums due to the Seller
2. Goods B. This prevents a party from relying on something said in
pre-contract negotiations that is not excluded in the
Agreement itself with the exception of deliberate
misrepresentations
3. Delivery C. The goods are as specified in the quotation
4. Acceptance D. Allows for defaults in the event of happenings outside the
control of the Seller
5. Title and risk E. The price is the quoted price; if the Price is not paid on
time the Seller is entitled to interest at 4% above base
6. Limitation o f Liability F. This doesn’t prevent the buyer suing for breach of warranty
after the 7th day. It’s intended to prevent rejection
7. Force majeure G. Specifies which law applies and where the parties must sue
8. Entire agreement H. Delivery is as shown on the quotation

9. Governing law I. This is required when selling to consumers. To sell a
and jurisdiction consumer without this phrase would be a criminal offense
10. Rights o f consumer J. Tries to exclude and restrict the liability of the Seller to
personal injury and death. It excludes economic loss and
limits the liability of the Seller to the price. There is a risk
that these terms would be deemed unfair in a consumer
transaction
1 2 3 4 5 6 7 8 9 10
Exercise 5. Here is a brief summary o f the law contract. Complete the texts using the
words below
Agreement breach capacity consideration damages fraud

illegal obligation oral performance property signed terms
What is a contract?
It’s an agreement that creates a binding (1) obligation upon the parties. The essentials
of a contract are as follows: mutual (2)________________ ; a legal (3)_____________ ,
which in most instances need not be financial; parties who have legal
(4)________________ to make a contract; absence of (5)________________or duress; and a
subject matter that is not (6) ________________ or against public policy.
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4. Terms of Payment
The Buyer is obliged to make payment in US dollars. 100 per cent value of Contract is to be
paid in advance to the Seller's Bank in 10 days from the date of the Contract's signing (as
indicated in Enclosure N1).
5. Insurance
The Seller shall insure goods to be delivered on CIF terms against usual transport risks in
accordance with the Insurance Agreement.
6. Guarantees
6.1. The Seller guarantees the quality of the delivered goods for 36 months from the date of
putting the equipment into operation.
6.2. If during the guarantee period the equipment proves to be defective, the Seller at his cost
eliminates defects within the shortest possible time or replaces the defective equipment.
7. Packing and Marking

Each set of the goods shall be packed and marked according to the Buyer's inquiry. Marking
Information is the following:
1. Name of the consignee;
2. Name of the consignor;
3. Contract N (Code);
4. Air Way Bill N;
5. Gross Weight;
6. Net Weight;
7. BoxN.
8. Arbitration
8.1. All disputes and disagreements which may arise due to this Contract or in connection with
it shall be settled through friendly negotiations between the parties. Disputes and
disagreements that cannot be settled by parties through negotiations are subject to settlement
excluding the court in the Federal Arbitration of California State in accordance with the law in
force.
8.2. The award shall be final and binding upon both parties.
9. Other Conditions
9.1. All amendments and alterations to this Contract are valid only in written form and should
be signed by both parties.
9.2: Upon signing this Contract, all preceding talks and correspondence on it lose their force.
9.3. Neither party is entitled to transfer rights and obligations to any third party without a
written consent of the other contracting party.
9.4. The present Contract has been drawn up in 2 (two) copies; both copies having equal rights.
9.5. Enclosure N1. Specifications on 2 pages.
10. Legal Addresses of the Parties
The Buyer: The Seller:

Company: Jackson Ltd. Marketing Company: BlakeElectronic Corporation
1867, Albert Road, Reno, CA,31137, USA 2811, Pine Line Blackville, MD, 57348, USA
PhoneN: PhoneN:
FaxN: Fax N:
Account N: Account N:
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1. Who is referred to as the” Seller” in this contract? What firm does he represent?
2. Who is the “Buyer”? What post does he hold?
3. What is the subject of the contract?
4. What is the price for each set of equipment?
5. When should the goods be delivered?
6. Why should the goods be insured and who is to do it?
7. What should be done if the equipment proves to be defective?
8. Who is to eliminate the defects?
9. How should all disagreements be settled?
Exercise 7. Translate into English

1. Продавец продает, а покупатель покупает на условиях CIF Одесса, Украина,
медицинское оборудование в соответствии со спецификациями к настоящему
контракту и являющимися его неотъемлемой частью.
2. Цена по настоящему контракту включает стоимость материалов, перевозку,
страхование и упаковку соответственно настоящему контракту.
3. Поставка осуществляется в течение 6-ти недель. Поставка возможна’ ранее
указанного в контракте срока.
4. Продавец обязуется поставить товар покупателю в течение 2-х недель после
подписания им данного договора.
5. Товар должен соответствовать качеству, предъявляемому к такому виду
товара.
6. Упаковка должна обеспечить безопасную транспортировку и доставку товара.
7. Остальные пункты контракта могут быть решены в рабочем порядке (there
and then).
8. Цена за единицу товара указана в приложении к контракту.
9. Как только мы подготовим окончательный вариант контракта, он будет
представлен Вам на рассмотрение.
10. Все расхождения (divergence), связанные с контрактом, должны решаться
путем переговоров.
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UNIT 2
COMPLAINTS AND ADJUSTMENTS
Vocabulary
Execution o f the order - выполнение заказа
4 To make a complaint - предъявлять претензию, рекламацию
4 To be o f inferior quality - быть некачественным
4^ To be damaged —быть поврежденным
4- In transit - в пути
4»- Delay in delivery —задержка поставки
4 - To be shortshipped - недопоставленный
4 To match a sample - соответствовать образцу
4 Justified - обоснованный
4 Adjustment - урегулирование; поправка; (морское страхование) расчет
убытков по общей аварии
4 Reminder —(письмо)-напоминание
4 Final deadline - крайний срок
4 То reserve the right —оставлять за собой право
4 То withdraw from the contract —выйти из договора
4 То cancel an order - отменять заказ; аннулировать
4 То suffer a loss —понести убытки
4 То claim damages - требовать возмещения
4 Overdue —просроченный
4 Hidden, covert reminder - скрытое, косвенное напоминание
4 Deferment - отсрочка
4 Debit note —дебетовое авизо
4 Credit note - кредитовое авизо
4 Undercharge - заниженная цена
4 Overcharge —завышенная цена

If the seller causes a breach of contract, or if there is something wrong with the
execution of the order, the buyer can make a complaint. Here are some of the things a buyer
can complain about:
a) the goods are o f inferior quality;
b) the goods are damaged;
c) the goods were lost in transit;
d) the price is incorrect;
e) there was a delay in delivery;
f the goods were shortshipped (the weight was too low or the quantity too small);
g) the wrong goods were delivered;
h) the goods don’t match the sample;
If the complaint is justified, the seller has to make an adjustment, i.e. he has to offer
the buyer some form of compensation.
There are 4 possibilities:
1. The seller invites the buyer to Return the goods at the seller’s expense.
2. The seller Replaces the faulty goods at his own expense.
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3. In some cases, the goods can be Repaired by the seller or at the seller’s expense.
4. The buyer keeps the goods, but the seller offers him a price Reduction.
If the seller is delivering the goods, the buyer can send one or more reminders and tell
the seller that he will withdraw from the contract if the goods are not delivered by a certain
date, the final deadline.
It can be that the buyer reserved the right to cancel the order if he can cancel his order
without sending any reminders.
It can happen that the buyer suffers a loss if the goods are delivered late - he may lose
business, for example. In this case, he can claim damages from the seller; that means, he can
start legal proceedings for compensation. However, if the delay is caused by factors beyond
the seller’s control, e.g. floods, earthquakes, war, etc., the seller is not liable for any of the
buyer’s losses.
1. What do you understand by breach o f a contract? Give some examples.

2. Describe the reasons a buyer may have to make a complaint. What kind o f
compensation would you, as the buyer, offer in each case (a-h)?
3. What can you, as the seller, do, i f the buyer fails to fulfill his liability o f paying on
time.
Exercise 2. Scan the letter of damage. Answer the questions
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1. How had the damage occurred?
2. Why can’t the garments still be sold?
3. What does Mr Crane intend to do with the damaged consignment?
4. What is enclosed with the letter?
5. What does “a c.i.f. basis” mean?
6. Which words correspond to the following: during transportation; assess; clothes;
make up fo r the loss?

1. Adjustment A. Having an acceptable explanation or reason
2. Damages (pi) B. A business organization or a person who is to prepare shipping

documents, to arrange for shipping space and insurance, etc.
3. Consignment C. The amount of money spent on something
4. Shipment D. The determination of the amount due under a policy of insurance
5. ForwardingE. A sum of money awarded by a court as compensation for a breach

agent of contract
6. Expense F. Goods packed together and sent from seller to buyer
7. Justified G. A load of goods sent by sea, road, or air

(complaint)
Exercise 4. What kind o f adjustment would you expect in each case?

1. You ordered two chests of best quality Ceylon tea. However, when it arrives, you
find that the quality is inferior to that of the sample.
2. You ordered 100 ladies’ coats in size 38. However, the coats delivered are size 40.
Nevertheless, the quality is good and you think these dresses will sell just as well.
3. You ordered 442 pairs of handmade leather shoes. When they arrive, you see that
the stitching on one of the shoes is broken.
4. You ordered 7 washing machines, to be delivered within 14 days. However, 6 week
later they still haven’t arrived.
Many letters of complaint arise out of accounting errors, which can be put right by
adjustments. Debit notes and credit notes are used for this purpose.
Debit notes are the second charge for a consignment and become necessary if a
customer has been undercharged through a mistake in the calculations on the original
invoice.
Credit notes are sent because of accidental overcharges. A credit note may also be
issued when a deposit is being refunded or when goods are returned because they were not
suitable or had been damaged. Credit notes are often printed in red. The form of a credit
note is the same as that for a debit note, except for the heading.
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Exercise 5. Read the debit note
This note is necessary because the suppliers, Seymore Furniture Ltd., have made a mistake
in their calculations and have undercharged their customers, C.R. Mendez
DEBIT NOTE No. 311
SEYMORE FURNITURE L tA.

Tib Street, M a id e n h e a d , Berks. S L6 5 D 2 Telep h o n e 0 6 2 8 2 6 7 5 5
Registered No. 18 51 4 3 9 1 London

VAT No. 231 6 1 8 8 31
C.R. Mendez SA 31 May 19—

Avda del Ej^rcito 83
E-48015 Bilbao
19—
5 May Invoice No. L 8992. UNDERCHARGE.
The extension should have read:

6 Chairs @ £12.00 each = £72.00
NOT
6 Chairs @ £10.00 each = £60.00
We apologize for the error and ask if you

would please pay the difference viz. £12.00. £12.00
REMINDERS
If the buyer fails to fulfill his obligation of paying on time, it’s customary to send 3
reminders.
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Exercise 6. Read the second reminder and translate into your native language
(balance due —дебетное сальдо; due date —дата платежа; outstanding balances —
неуплаченное сальдо; with regard to the accounts rendered - относительно
произведенных расчетов; by return - срочно; at the rate o f 25% per annum - 25%
годовыхj
Attention: Herr Holer

Dear Herr Holer
Your ref: 023/499
Account No.: SO/7895
Balance Due: $ 4, 231.92
Due date: 15 April 2007
I am disappointed to note that, despite our previous reminder o f 12 April, your

account with us still remains unpaid. You will recall from our Conditions o f Sale
that all outstanding balances due to us must be paid within 30 days after receipt
o f our invoice. By placing an order with us you indicated your agreement to our
terms. According to my records no query has been raised with regard to the
goods delivered or the accounts rendered.
Under the circumstances I would be grateful if you could arrange for the above
sum to be paid by return. Should you fail to do so I shall have no alternative but
to add interest to the balance at the rate o f 25% per annum as prescribed by our
Conditions o f Sale.
Yours sincerely
NOR THERN OPTICS L TD
Exercise 7. Here are the extracts from three reminders and a final demand.
Organize the extracts into the correct letters
1. We are concerned that this matter is still unresolved and would be grateful to receive
your cheque in full settlement of the outstanding sum without further delay.
2. We would like to remind you that the sum of $3500 is still outstanding on your
account.
3. Since we have received no replies to our earlier letters, we have no option but to
inform you that unless we receive a cheque for the outstanding sum of $3500 within
7 days of the date of this letter, we shall place the matter in the hands of our solicitor.
4. I wrote to you on 1st July regarding your unpaid account, accounting to $3500.
5. Clearly, this situation cannot be permitted to continue, and we must urge you to the
immediate action to clear the indebtedness.
6. If you are satisfied with the goods supplied to you, we would ask that you kindly
settle the account as soon as possible.
7. We have now reminded you twice regarding the outstanding sum of $3500 on your
account, but to no avail.
REMINDER 1 REMINDER 2 REMINDER 3 FINAL DEMAND

2
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UNIT 3
TERMS OF PAYMENT
Vocabulary
4 To grant - предоставлять
4 To deduct - удерживать
4* Bulk discount —оптовая скидка
4 Early payment discount —скидка за предоплату
4 Cash discount —скидка при оплате наличными
4 Cash with order —оплата при заказе
4 Reputable company —компания с хорошей репутацией
4 Cash on delivery - оплата при поставке, «по факту»
4 Carrier —перевозчик
4 Payment on invoice —оплата по получении счета
4 Right o f disposal - право распоряжения собственностью
4 Commercial invoice - торговая счет-фактура
4 Consular invoice - консульская счет-фактура
4 Customs invoice - таможенная счет-фактура
4 Pro-forma invoice - предварительная счет-фактура
4 On approval - для ознакомления
4 Indispensable - обязательный, непреложный
4 Open-account terms —условия открытого счета
4 Statement o f account —выписка по счету
4 То owe —быть должным
4 IOU (I Owe You) - долговая расписка
4 То settle —расплачиваться, рассчитываться
4 Debt —долг
4 То retain - оставлять, сохранять
4 То request a quotation - запросить ценовую политику
4 By order o f - по поручению
4 On behalf o f - от имени

When deciding on the terms of payment, the seller and buyer have to agree on:
When to pay ( for example, in advance, on delivery);
- How to pay (for example, cash, cheque, transfer);
- How much to pay (whether the seller is prepared to grant any discounts)
Types o f discount:
1. Bulk (quantity) Discount, granted when the buyer orders a large quantity.
“If you order more than 300 units we’ll give you a 10% discount”.
2. Early payment Discount, granted when the buyer pays within a certain period of time.
“If you pay within 7 days, you can deduct 5% from the price”.
3. Cash Discount, granted when the buyer pays cash.
“If you pay cash, we’ll give you 2% o ff’.
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The terms of payment described here are all particularly suitable for domestic trade.
CWO (Cash With Order)

The buyer sends payment with his order. Because this term of payment carries a
certain risk for the buyer, he will generally only agree to it in certain situations:
a) If he is doing business for the first time with a reputable company;
b) If the seller gives him a discount;
c) If he places a special, expensive order, the seller may ask fo r a part-payment to be
sent with the order.
COD (Cash On Delivery)
The buyer pays the company which delivers the goods (for example, the post office
or the carrier) at the time they are delivered. The Post Office offers a service by which they
will deliver goods and accept payment on behalf of the supplier. The payment is then given
to the seller.
Companies which don’t know anything about the financial standing of their
customers prefer to use this term of payment.
Payment on invoice
The invoice is an important document in the export trade, as copies may be required
by banks, export/import agents, shipping companies, customs authorities, and consulates.
The invoice will be sent to the customer by post, or through an agent or a bank. In the case
of single or isolated transactions, payment is then required, either before delivery or on
delivery of the goods. The buyer receives an invoice on or after delivery which describes the
goods delivered, the amount to be paid and the period within which the invoice must be paid
(e.g. 14 days). This method of payment is called payment on invoice.
There are 4 main types o f invoice:

1. Commercial invoice
The commercial invoice is the seller’s formal request for payment. Along with the
transport document, it is probably the most important paper needed in an export transaction,
as it is also an essential component of certain methods of payment (for example, the letter of
credit) and indispensable for customs purposes. Several copies are made.
The commercial invoice serves the following purposes:
a) It is a record of the transaction between the seller and the buyer, listing details of
the goods, how much they cost and how they are to be transported.
b) It is the basis on which the customs authorities assess how much duty or tax is to
be paid.
c) It is used to confirm the value of the goods for insurance purposes.
2. Pro-forma invoice
Unlike the commercial invoice, the pro-forma invoice is not a request for payment.
Instead, it is a “sample” invoice, which may for example be issued:
a) When the buyer has requested a quotation;
b) When the seller sends the buyer goods on approval;
c) If the goods are to be sold by an agent, in which case the agent will need a pro
forma invoice in order to be able to fix his own prices.
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3. Customs invoice
Some countries may require the exporter to provide a customs invoice, a special
invoice for the customs authorities of the importing country. This invoice is very similar to
the commercial invoice, but requires additional information such as the domestic value and
export price of the goods. With this information, the customs authorities can decide whether
the goods are admissible (whether they can be allowed into the country) and how much duty
is to be paid.
A customs invoice may be required in the following situations:
a) Where the value of the consignment is relatively high;
b) Where specific types of goods are being imported;
c) If the importer requires preferential treatment by the customs authorities, for
example a lower rate of duty.
4. Consular invoice
Certain countries, notably those in South America, may insist on a consular invoice
as evidence that the goods being imported are not over-priced. A consular invoice is issued
as follows:
a) The exporter buys the relevant forms from the consulate of the importing country
located in his own country;
b) The exporter fills out these forms. This is no easy task as there may be up to 6
copies, and they all have to be perfect - if anything has been added or crossed out, the forms
will be rejected;
c) The exporter takes a commercial invoice for the goods to be exported to the
Chamber of Commerce. Here the invoice is stamped on the reverse side to confirm the
origin of the goods (where they come from);
d) The exporter then takes all these forms - plus any others which may be required -
back to the consulate;
e) Here the consulate invoice is legalized by the consul. This means that the exporter
has to swear to the accuracy of the documents.
Payment on statement
With reliable customers who place regular orders, the seller might agree to open-
account terms. Here the buyer doesn’t have to pay for every delivery separately. Instead, he
receives a statement o f account every month or quarter which states the TTL (total) amount
he owes the seller. He is then expected to settle a min amount of his debt (10% of the TTL
amount, e.g.).
Payment on invoice and open-account terms can all be risky for the seller, as he is
dependent on the buyer’s ability and readiness to pay. For this reason, he retains the title of
the goods until they have been completely paid for. That means the buyer can use the goods
but they remain the property of the seller until the buyer has made full payment. This
ensures that the seller can get the goods back if the buyer doesn’t pay for them.
1. Compare CWO and COD.

2. Which o f the terms ofpayment described above are the most favourable for the seller
and why?
3. Which o f the terms ofpayment described above are the most favourable for the buyer
and why?
4. Define the peculiarities o f invoice types. Which o f them are used most and why?
5. What are the typical situations for their use?
18
Exercise 2. Remember the following abbreviations and terms connected with invoicing
and accounting. Learn them.
Dr. (= Debit) C r. ( = Credit)
a/c (= account) c/f (= carried forward)
b/f (= brought forward) Bal. ( = Balance)
c.w.o. (= cash with order) N/C ( = no charge)
Exercise 3. Match the parts o f an invoice with their titles

M ETROPOLITAN TENNIS EQUIPMENT COMPANY
4019 Beach Boulevard South
Los Angeles, California 90126
Invoice Telephone: 615.890.9000
A Fax: 615.890.9077
e-mail: sales@mtec.com
Champion Sport Ltd. 71 Victoria Lane Date 7th May 1999 В

Stjohn’sWood C Invoice No. 699
London NW1 3PP___________________
Quantity________________ Description Amount
160 Tennis Rackets
120 o f‘GX 12’ model
40 o f‘Tennis Pro’ model D
Ex-works price:
GX 12 model £78 each
Tennis Pro model £116 each £14000
All freight charges and export packing £5000 c

Insurance from warehouse to warehouse £90 C
F c.i.f. London Total £14590 G
Marks 16 cardboard cartons - H

and Nos.
10 per carton I
Import Licence No. BRX431999 «I
MET
CS LTD К
LONDON
1-16 per pro
Metropolitan Tennis Equipment
RoBerto MoraCes
1. Cost of freight and insurance

2. Date of issue
3. Shipment terms
4. The export and/or import license numbers
19
5. The contents of individual packages
6. Description of goods
7. Exporter’s name and address
8. Total amount payable
9. Number and type of packages
10.Importer’s name and address
11. Marks and numbers on packages
Exercise 4. Read the explanation o f the invoice. Fill in the gaps using the figures from
the invoice
By looking at the invoice number______, you will notice that on the____________ ,
the Metropolitan Tennis Equipment Company of Los Angeles shipped a total of
________ tennis rackets to Champion Sport Ltd. in London. The shipment included
_______ of the GX 12 model priced a t_________ and________ of the “Tennis Pro” model
at ________ , for a total o f__________ . The cost of freight was__________ and the
insurance Irom warehouse to warehouse w as_______ . The total amount to be paid by the
UK importer w as______________ . The rackets were packed in _______ cardboard cartons,
________ per carton, on which the words MET CS LTD. LONDON 1-16 were written. The
import license number was____________________ . The invoice was signed by an official
of the exporting company, Mr Robert Morales.
1. What is the total number of

items? HOM EM AKERS Ltd.
2. What’s the price per item? 5 4 —59 Riverside. C o rd iH CF1 1JW
3. When can the above T elep h o n e: (0222) 49721

Telex: 36217
R egistered N o C l 35162
mentioned abbreviations be
used?
Mr R. Hughes 24 July 19—
R. Hughes & Son Ltd.
Exercise 5. Scan the letter on 21 Mead Road
Swansea
granting open-account facilities. Glamorgan 3ST 1DR
Answer the questions
Dear Mr Hughes,
Homemakers are prepared to
Thank you for your order. No. В1662. which will be sent to you
give credit even though they feel tomorrow. I have taken the opportunity to enclose the invoice,
it may not be in the best interests DM 1113, with this letter.
o f their customer With regard to your request for open account facilities, settlement
against monthly statement, 1feel there would be more advantage for
you in claiming the 3% cash discounts offered for payment within seven
days of receipt of invoice. Nevertheless. 1am quite prepared to allow
monthly settlements, and there will b e no need to supply references as
1. Why does Mr Cliff think it you are a long-standing customer.
would be better for Mr Hughes to The enclosed invoice will be included m your next statement.
settle invoices within 7 days? Yours sincerely.
2. Why doesn’t Mr Cliff need any
references from Mr Hughes?
3. When should Mr Hughes pay R Cliff 1234
invoice DM 1113?
4. What form of open account
facilities is Mr Cliff offering?
Enc. Invoice DM 1113
20
Exercise 6. Scan the request fo r pro-forma invoice and answer the following questions
( to conform to requirements - отвечать требованиям; to grant a rebate - дать скидку;

to justify the concession - оправдать уступку; to open the L/C - открыть аккредитив)
10 April 20..
Diamantsagen Wilde GmbH

RitterstraRe 9
22089 Hamburg
GERMANY
Dear Mr Wilde
Our Enquiry PU384 o f 2nd March 20—

Your Offer No. 58391 of 21st March 20—
We are pleased to inform you that your DX 33 saw-blades wholly conform to our
quality requirements. We should therefore like to place an order for 25 units,
provided you can see your way clear to granting us a further rebate o f 5% on your
prices as quoted in the above-mentioned offer. We feel that the volume o f the order
we are interested in placing would justify this small concession.
However, to enable us to import these saw-blades into India we will need to apply for
an import license from our local Government authorities and would therefore ask
you to send us a pro-forma invoice to include the following details:
-exact description o f the goods

-unit and total price with discounts
-terms o f payments and delivery CIF Calcutta
-packing list
We would be grateful if you would send the pro-forma invoice by registered mail. As
soon as we have received the import license, we shall telex our order to you and open
the L/C with our bankers.
Yours sincerely...
1. Why can the consumers be given a 5% discount?

2. Why do they need a pro-forma invoice?
3. What details must be included in a pro-forma invoice?
21
Exercise 7. You are sending an invoice. Complete the letter; fill in the gaps using the
following English equivalents
subject enclosed to be dispatched bank transfer to be
shipped
premises to settle to arrive early payment discount all transport costs
You ref: FM/ly

Our ref: SV/52/ip
7 January 2007
Mr A rth ur Jones
Laser Engineering Ltd
Dear Mr Jones
Your order 835/YI o f 23 Dec 2007
We are pleased to inform you that the articles (были отправлены) by lorry
yesterday. They (будут отправлены) across the Channel on board SS Marina
tomorrow and are due (прибыть) at your (офисные помещения) at the
beginning o f next week.
Please find (прилагаемый) our invoice No.351685 T fo r $17,850.00 including

(все транспортные расходы). We would ask you (оплатить) it either by
(банковский перевод) or by cheque within 30 days, (подлежащий)to the usual
(скидка за npedowiamy)of 3 per cent.
We trust that you will receive the goods in perfect condition and remain at your
service for further deliveries at any time.
Yours sincerely _ __________ _ __________
Инвойс - счет-фактура - оформляется, как правило, посредством заполнения

стандартной формы и выдается продавцом покупателю для расчетов по отдельным
операциям. Содержит обычно следующие данные: имя и адрес покупателя;
наименование товара и его цену; пункт, в который товар был доставлен или отгружен;
дату совершения операции (сделки); условия продажи.
Некоторые счета-фактуры, особенно оформленные при международных
сделках, содержат более подробную информацию, в том числе указание валюты, в
которой должны производиться расчеты, условия отгрузки, описание маркировки на
товарах или его упаковке и другие данные в соответствии с требованиями
правительственных и/или таможенных органов.
22
UNIT 4
TERMS OF PAYMENT IN FOREIGN TRADE
Part 1
Vocabulary
4 Timelag —временной лаг, отставание во времени, запаздывание, период
ожидания
4 Collection o f payments —инкассо (получение денег по векселям)
4- Indispensable - необходимый, обязательный
4- Cash against documents (CAD) - оплата по получении документов
4 Documents against payment —документы после оплаты
4 A sight bill - вексель к оплате по предъявлению
4 Transport documents —транспортная документация/накладная
4 Remitting bank —банк-плательщик; банк, переводящий денежные средства
4 Collecting bank —банк-получатель; банк-инкассатор
4 A draft - платежное поручение
4 Perishable goods - скоропортящийся груз
4 То dispatch —отправлять, отгружать
4 То seal the goods —опечатывать товары
4 То issue —выдавать
4 A bill o f exchange —банковский вексель
4 То draw a bill - выписать вексель
4 A drawer —трассант; лицо, подписавшее вексель
4 A drawee - трассат; лицо, на которое выставлена тратта
4 First/second bill o f exchange —первый/второй экземпляр векселя
4 Maturity —дата, срок выплаты
4 То accept —акцептировать, принять к оплате
4 Acceptance —акцепт; согласие на оплату денежных и товарных документов
4 A sight bill —вексель к оплате по предъявлению
4 A time bill - вексель со сроком оплаты
4 A term bill - вексель с оплатой в течение указанного срока
4 A date bill - вексель с указанной датой оплаты
4 A clean bill - чистый вексель
4 То endorse the bill —индоссировать документ, сделать передаточную
надпись
4 At a current rate o f exchange -по текущему курсу обмена валюты
4 Dishonoured - не оплаченный в установленный срок

When it comes to dealing with money, the banks provide a variety of services
essential to trade and to the economy of a country. They not only see to it that justice is
done to both buyer and seller, but that the timelag between order and delivery is overcome
without loss to either party. These services have to be paid for, but are not expensive and are
almost indispensable - the bank comes into every transaction at some stage or another.
That’s why, the buyer and the seller work in close collaboration with their banks and
carriers.
Banks play a vital part. Their services to exporters and importers include:
1. Handling of shipping documents
23
2. Collection of payments
3. Observance of buyers’ conditions of purchase
4. Discounting bill of exchange (B/E)
5. Loans to exporters
6. Acting as agents for foreign banks and their customers
Payments in foreign trade may be made by:

1. Banker’s transfer (draft)
2. Bill of exchange (B/E)
3. Letter of credit (L/C)
As well as in the local trade, payment may be made a) in advance; b) on open
account.
Payments in advance are used 1) when a buyer is in urgent need; 2) when a buyer is
unknown to the seller; 3) in the case of a single isolated transaction. The method of payment
will be by banker’s draft or transfer.
Open account terms are granted by a seller to a buyer of unquestionable reputation in
whom he has complete confidence, regular customers, agents. Payment is made quarterly by
bill of exchange or banker’s draft.
The Banker’s transfer

This is a simple transference of money from the bank account of a buyer in his own
country to the bank account of the seller in the seller’s country. It’s necessary for the buyer
or a debtor to send a letter of instruction to his bank - or use a special form. The transfer is
carried out at current rates o f exchange. Such transfers are subject to any exchange control
regulations of the countries concerned.
IG/PO
26 June 2007
Benson Bank pic
34-38 Market Place
NEW MALDEN KT3 5TZ
Dear Sir
Our Account No. 789315
Please transfer the sum o f J5,423.00

to the account o f Esser & Co., Wirtschaftswerbung GmbH in Witten, Germany in respect o f
their invoice No. 92/4/AUSL./4093.
The account details are as follows:

Account holder: Esser & Co.
A ccoun t No.: 789046001
Branch Code: 45240056
We would be grateful ifyou would arrange for payment to be effected by SWIFT to ensure
that the funds arrive by the end o f the month.
Yours faithfully
VANTAGE AD VERTISING
Iain Gowe
European Campaigns Manager____________________________________________ _
24
(in respect o f —касательно; account holder - держатель счета; branch code -
банковский код; arrange fo r - принимать меры, обеспечивать; ensure —
обеспечивать; SW IF T —банковская компьютерная система для международных
банковских переводов)
The Bill of Exchange (B/E)

A B/E is an unconditional order from one person to another to pay a certain amount
at a certain time. The money can be paid either to the person who gave the unconditional
order or to a third party. B/E can be used for either domestic or foreign trade.
The parties to a B/E are: a drawer who makes out the B/E and sends it to the
drawee (the person who has to pay it). He may send 2 copies (the first and second bill o f
exchange) in case one gets lost.
Each B/E belongs to a certain category, depending on the time at which it matures
(has to be paid).
1. A sight bill (draft) is paid on presentation. It includes the words “Pay at sight”. The
drawee has to pay as soon as the draft is presented (as soon as he sees it). A B/E which
hasn’t been paid yet is called a draft; an accepted B/E is called an acceptance.
2. Time bills are payable at a fixed or determinable future time. There are 2 types of
time bill:
a) a term bill is payable at a certain number of days after it is presented to the drawee,
e.g. “Pay at 60 days after sight”.
b) a date bill is payable at a certain number of days after it was drawn, e.g. “pay at
60”.
3. A clean bill is one that is not accompanied by shipping documents.
4. A dishonoured bill is one that is not paid on the due date. In this case the exporter
will protest the bill, i.e. he will go to a notary, a lawyer, who will take legal actions to
recover the debt.
5. Bills can be negotiable if the drawer endorses the bill, i.e. the bill becomes payable
to the person who owned it.
A sight draft is paid on presentation. In a documents against payment (D/P)
transaction, the sight draft is presented to the importer with the shipping documents, and the
importer pays immediately, i.e. ’on presentation’ or ‘at sight’.
Documents against payment (D/P)

The buyer needs the transport documents before he can take possession of the goods
he has purchased, but is only given them after paying a sight bill drawn by the seller.
D/P transaction is effected as follows:

1. The seller sends the goods to the carrier (ship owner, airline, etc.)
2. The carrier gives the necessary transport documents to the seller and transports the
goods to the buyer’s country.
3. The seller collects any other transport documents which may be necessary and
gives them to his bank (the remitting bank) together with a sight draft.
4. The remitting bank sends the transport documents and the draft to the buyer’s bank
(the collecting bank). The buyer is notified when they arrive.
5. The buyer pays the sight bill and receives the transport documents in return. He
can then take the transport documents to collect his goods from the carrier in his country.
25
6. The collecting bank sends the payment to the remitting bank. The amount is credited
the seller.
This means that if the buyer doesn’t pay, he doesn’t get the goods. This minimizes the risk
for the seller, because if the buyer doesn’t pay, the seller can ask the collecting bank to find another
buyer.
In theory this minimizes the loss for the seller, but may be a problem if he is exporting perishable
goods, for example.
D/P holds a certain risk for the buyer, because he doesn’t have the chance to examine the
goods before he has paid for them. However, this risk can be minimized by asking the seller to
arrange examination of the goods by an inspection Co. before they are dispatched. The inspection
Co. will then seal the goods and issue an inspection certificate, which has to be sent to the
collecting bank with the transport documents.
1. What types o f payments inforeign trade do you know?

2. In what way may they be made?
3. When are payments in advance used?
4. Whom are open account terms granted to?
5. What is the banker's transfer?
6. What is necessary for a customer to do while paying by banker’s transfer?
7. What is the bill of exchange?
8. What are different types o f the B/E? Define the situations which differ their use.
Exercise 2. Enumerate the functions of D/P transaction

Seller Buyer Carrier Remitting bank Collecting bank
Exercise 3. Read the bill. Answer the following questions

The bill has already been accepted by the drawee, who has named a bank in London which he
wants to use to clear the bill
(payee - лицо, получающее платеж; получатель денег по переводному векселю; ремитент)
26
1. What type of draft is this?
2. How much is it for?
3. Who is the payee?
4. When must the draft be paid?
5. What is the rate of exchange?
If a customer can’t pay a bill, he must inform his supplier immediately; there is an
example when a bill is not paid and no notice has been given, the supplier usually writes to
the customer before protesting a draft. The expression “Refer to Drawer” means that the
bank is returning the bill to the drawer. (This expression is also used when a dishonoured
cheque is returned).The formal protest is to be made, which means that the drawer will
contact a lawyer to handle the debt if payment is not made within the specified period of
time.
Exercise 4. Scan the letter and define the main idea
Panton Manufacturing Ltd.

Panton Works, Hounslow, Middlesex, TW62BQ
Tel: 081 3530125 R eg u tered N o England 266I3S
Cables: PA N M A N
Telex: 21511
Fax. 081 353 6783
Mrs B. Haas, 10th April 19—

B. HaasB. V„
Heldringstraat 180-2
Postbus 5411
Amsterdam 1007
NETHERLANDS
Dear Mrs Haas,

B/E No. 1671
The above bill for £860.00 w as returned to us from our bank this morning
marked 'Refer to Drawer’.
The bill w as d u e on the 5th April and appears to have b een dishonoured.
W e are p rep ared to allow you a further three days before presenting it to
the bank again, in which time w e hope that the draft will have b een met.
If the account is still not settled, w e will have to m ake a formal protest,
which w e h op e will not b e necessary.
Yours sincerely,
D. Panton
M anaging Director
(Protest a bill - опротестовать вексель)

1. Commission A The date by which a bill must be paid
2. Drawer В To sign a document passing rights in it to another person
3. Time-lag C A charge made on a percentage basis for services
4. On a consignment note D The person who is drawn up
27
5. Drawee E Delay, loss of time
6. Due date F The person who draws a bill
7. Endorse (to) G Without fixed prices
1 2 3 4 5 6 7

1. Владелец векселя может продать его банку по номинальной стоимости.
2. Вы можете оплатить данный товар по текущему курсу обмена валюты.
3. Условия оплаты по открытому счету предоставляются покупателю с безупречной
репутацией.
4. Вексель на сумму US $ 5000 не был оплачен в срок.
5. Если трассант индоссирует вексель, он становится оборотным.
6. Вексель должен быть оплачен в течение 30 дней после предъявления.
7. Акцепт - это письменное согласие на оплату платежного требования, т.е. взять на
себя обязательство оплатить переводной вексель или тратту в срок. Оформляется
надписью акцептантом (acceptor) на платежном требовании «акцептовано» и его
подписью.
8. Переводной вексель с оплатой по предъявлении является международным
платежным документом, расчеты по которому производятся немедленно.
Предполагается, что представление переводного векселя и его акцептование
совершаются практически в одно и то же время. Если в кратчайший срок (до 5
дней) после представления документа акцептование не происходит, документ
считается не принятым к оплате.
28
UNIT 5
TERMS OF PAYMENT IN FOREIGN TRADE
Part 2
Vocabulary
4 Documents against acceptance —документы по принятию; передача права
собственности после получения чека к оплате
4 Letter o f credit - аккредитив
4 Opening/issuing bank - банк-эмитент; банк, оформляющий аккредитив
•4- Advising bank —банк, производящий выплату по аккредитиву
<4 Beneficiary —бенефициар, получатель по аккредитиву
4 Documentary credit - документарный аккредитив
4 То honour the bill o f exchange- оплатить счет в установленный срок;
выполнять обязательства
4 То recover the goods —получить свой товар обратно
4 Confirming bank —подтверждающий банк
4 Cost and charges - стоимость и расходы
4 Irrevocable L/C - безотзывный аккредитив
DOCUMENTS AGAINST ACCEPTANCE (D/A)
This term of payment is very similar to D/P. However, instead of sending a sight
draft to his bank, the seller sends a time draft. In order to get the transport documents, the
buyer only has to accept the draft. At maturity, he goes back to his bank and pays for the
goods.
A D/A transaction is effected as follows:
1. The seller sends the goods to the carrier.
2. The carrier gives the necessary shipping documents to the seller and transports the
goods to the buyer’s country.
3. The seller collects the other shipping documents and gives them to his bank (the
remitting bank) together with a time draft.
4. The remitting bank sends the documents and draft to the collecting bank (the buyer’s
bank). The buyer is notified to when they arrive.
5. The buyer goes to his bank and accepts the time draft. In return, he is given the
transport documents and can collect the goods.
6. At maturity, the buyer goes back to his bank and pays the B/E. The money is sent
from the collecting bank to the remitting bank and credited to the seller’s account.
Obviously this is more favourable for the buyer than CAD (Cash against Documents)
or P/D, as he can take possession of the goods before paying. However, D/A carries a
considerable risk for the seller: if the buyer fails to honour the bill o f exchange, the seller
probably won’t be able to recover the goods (2 or 3 months may elapse between the time
the draft is accepted and the time it matures, e.g., in which time the buyer may have sold the
goods).
Moreover, taking legal action to recover the money is far more difficult on an
international basis.
29
LETTER OF CREDIT (L/C)
A letter of credit is a more binding method of payment.
A letter of credit is a promise made by the buyer’s bank (the opening or issuing
bank) to send a certain sum of money to the seller’s bank (the advising bank), to be
credited to the seller, known as his beneficiary, provided he fulfils his part of the sales
contract. It is also known as a documentary credit.
Documentary credits - letters of credit accompanied by documents - are widely used
in the import/export trade.
There are two types of documentary credits: revocable - those that can be cancelled,
and irrevocable - those that can’t be cancelled. The second type is more common in
overseas business transactions.
Payment by letter of credit is effected as follows:
1. The buyer and the seller agree on all terms and conditions of the sales contract.
2. The buyer fills out an application form to open a letter of credit at his bank (see
annex 1). The application form names the exporter (the seller) and states: the amount
to be paid; the documents concerned; what the consignment consists of; whether the
shipment is c.i.f., f.o.b.,etc; details of dispatch and any other documents involved
(e.g. certificate of origin, consular invoice, certificate of quality); the length of time
the credit will be available. The availability of the credit should take into account of
how much time it will take to prepare and ship the goods.
3. The opening (buyer’s) bank opens the letter of credit and sends it to the advising
(seller’s) bank. If appropriate, the opening bank also asks the confirming bank to
confirm the L/C.
4. The advising bank tells (advises) the seller that the L/C has been opened.
5. The seller checks that all the terms and conditions are correctly listed in the L/C.
6. The seller collects all the necessary transport documents (bill o f lading, insurance
certificate, invoice, etc).
7. The seller gives the transport documents and a sight or time draft to his bank. The
bank checks the documents against conditions and pays him. He can get his money
now if the L/C is confirmed.
8. The advising bank checks that all the documents are correct and sends them to the
opening bank with the cost and charges, which are calculated as a percentage of the
total amount of the invoice, plus an extra charge if the letter is confirmed.
9. The opening bank checks the documents again and sends the payment to the advising
bank.
10. The buyer pays (sight draft) or accepts the draft (time draft) and gets the shipping
documents in return. With these, he can collect the goods from the carrier in his
country.123456
1. Explain the differences and similarities between CAD (D/P) and D/A.
2. What are the advantages and disadvantages o f CAD (D/P) fo r the buyer?
3. What are the advantages and disadvantages o f D/A for the seller?
4. Which o f the various terms ofpayment for foreign trade is the safest for all parties
and why?
5. What information should be included in the application form?
6. What is the function o f a confirming bank?
30
Exercise 2. Enumerate actions which must be fulfilled by the parties in documentary
credit transactions. Use the verb+noun expressions
Seller Buyer Issuing bank Advising bank Confirming bank
Exercise 3. Read the letter from the importer (the buyer) to his bank. The importer writes
to his bank opening the credit. Quote his requirements
N . Z. Business M achines Pty.

100, South Street, Wellington
Directors: C.M. Perimann, L.F. Drozin
Telephone: 444 8617

Telex: 60184 BUSMAC
Fax 444 3186
The Manager oa»: 3 May 19—

New Zealand Bank
Takapuna House
Takapuna Street
Wellington 8
Dear Sir,
Please open an irrevocable documentary credit for £22,000 in favour of
Delta Computers Ltd., England. 1have enclosed your application form with
all the relevant details completed.
Please inform me when you have made arrangements with your agents in
London.
Yours feithfully.
M Tanner
N.Z. Business Machines Pty.
Enel. Application for documentary credit
At the same time as opening the credit at his bank, who will notify their agents in London,
the importer (the buyer) writes to his supplier (the seller).
31
Exercise 4. Read the letter and answer the following questions
N. Z. Business Machines Pty.

100, South Street, Wellington
Directors: C.M Perimann, L F. Drozin
Telephone: 444 8617

Telex: 60184 BUSMAC
Fax: 444 3186
Mr G. Jam es
D elta C om puters Ltd.
Bradfield Estate Date: 5 M ay 19—
B radfield Road
W ellingborough
N ortham ptonshire NN8 4HB
UNITED KINGDOM
D ear Mr James,
Thank you for replying to our enquiry of 19 April and letting us know that
the C2000 com puters, Cat. No. D16 a re available.
The term s you qu o ted a re quite satisfactory, an d you will find our order,
8815, enclosed. W e have instructed our bank, New Zealand Bank,
Takapuna Street, W ellington, to o p e n an irrevocable letter of cred it for
£22,000 in your favour. This should co v er c.i.f. shipm ent and b an k charges,
and the cred it is valid until 10 June 19— .
You will re c e iv e confirmation from our bank’s ag en ts Eastland Bank Ltd.,

401 A ldgate, London EC1, an d you m ay d raw on them at 60 days for the
am ount of the invoice. W hen subm itting your draft, would you p le a se
en clo se the following docum ents?
Bill of lading (6 copies)

Invoice c.i.f. W ellington (4 copies)
A.R. Insurance Policy for £24,200
P lease fax or telex us as soon as you have a rra n g e d shipm ent.
Yours sincerely,
Vi lT
M, T anner
N.Z. Business M achm es Pty.
Enel: O rd e r 8815
1. When does the credit expire?

2. What should the beneficiary do to get the money?
3. What sort of shipment is it?
4. Who is the confirming bank?
32
1. Beneficiary A. The date by which a bill must be paid
2. Days o f grace B. A credit which cannot be cancelled
3. Honour (to) C. A load of goods sent by sea, road or air
4. Indemnify (to) D. To come to an end; to be no longer valid
5. Irrevocable credit E. To compensate a person or free him from liability
6. Shipment F. The person benefiting by a draft
7. Expire (to) G. 3 days extra in which to settle a time bill
1 2 3 4 5 6 7
Exercise 6. Read this letter requesting credit, and fill in the blanks with the correct verb
taken from the list below
Place began may be approached have been cleared
Have been trading has passed would be settled had been established
D. L. Cromer Ltd
Central Trading Estate
Staines
Middlesex TW19 4UP
The Sales Manager 12 May 19 —

Antonio Medina S.L.
C/Sagasta 1156
Barcelona 08317
Dear Mr Medina.
We (1)____________________with you for the past year and during that

time our accounts (2)_______ ____________ by letter of credit. However.
when we (3)_________ __________ our association with you. you
mentioned that once a business relationship (4)____________________ .
our accounts (5)_____ __ _______ _ by 60-day bill of exchange,
documents against acceptance. We feel that sufficient time
(6)_____________ _______to allow this arrangement to be effected.
Please let us know before we (71 __________________our next order, if

these new payment terms are acceptable.
I enclose details of two referees, who (81____________________ should

you require trade references, and look forward to hearing from you.
Yours sincerely,
D cLvuJ /Код<fld
David Arnold
Accountant
Encs.
33
1. Аккредитив - документ, выписанный коммерческим банком (эмитентом) и
свидетельствующий о том, что последний принимает на себя обязательство по оплате
тратт, выставленных в соответствии с оговоренными условиями.
2. Аккредитив может быть подтвержденным (confirmed) или
неподтвержденным(ипсопйгшеб). Подтвержденным считается аккредитив, в
соответствии с которым другой банк (отличный от банка-эмитента) принимает на
себя обязательства по оплате должным образом оформленных и представленных
тратт. По неподтвержденному аккредитиву ответственность несет только банк-
эмитент. Как правило, за подтверждение банк взимает соответствующую плату с
заявителя или покупателя.
3. Вы должны открыть безотзывный аккредитив на сумму US$ 5000 в пользу
нашей компании в Центральном банке Вашей страны.
4. Каков срок действия Вашего аккредитива?- Аккредитив будет действителен в
течение 60 дней.
5. Мы не получили от Вас полный комплект документов. - Все требуемые по
аккредитиву документы были своевременно направлены в банк.
6. На каких условиях Международный инвестиционный банк предоставляет
долгосрочный кредит?- Кредиты предоставляются на приемлемых условиях.
7. Эта сумма покрывает расходы, связанные с открытием и подтверждением
Вашего аккредитива.
34
UNIT 6
CUSTOMS
Part 1
Vocabulary
4 - Home-produced goods -отечественные товары
4 To impose duty -облагать пошлиной
4 Excise duty - акцизный сбор
4 Legal entities and individuals —юридические и физические лица
4 Customs authorities —таможенные власти
4 То seal a container - опечатать контейнер
4 Intact seal —целая пломба
4 Customs duties and taxes - таможенные пошлины и налоги
4 Duty rates —таможенные ставки
4 Duty-free —беспошлинный
4 То declare goods - декларировать товар
4 То clear goods through customs - проводить таможенную очистку
4 Customs clearance —таможенная очистка
4 £)Щш6/е-облагаемый пошлиной
4 Bonded warehouse -бондовый склад, где грузы находятся до уплаты
таможенной пошлины
4 In bond - нерастаможенный
4 То release the goods- снять арест с товара, «растаможить» товар
4 Surtax duty - подоходный налог
4 Sales taxes - налог на продажу
4 V.A. Т. (Value Added Tax) - налог на добавленную стоимость
4 Turnover taxes —налог с оборота
4 EEC (European Economic Community, the Common Market) - Европейское
экономическое сообщество, Общий рынок
4 EFTA (European Free Trade Association) —Европейская ассоциация
свободной торговли
In every country import-export rates are supposed to fulfill four functions:

- to protect home producers from foreign competition in order to increase their own
competitiveness in the domestic(home) market;
- to limit exporting products in which there is a shortage in this country and to regulate
foreign trade transactions for political interests;
- to supply local consumers, both legal entities and individuals, with products which
are not produced in this country or produced insufficiently;
- to provide the state budget with additional financial resources.
Every country has to ensure that the proportion of imports to exports has a positive
effect on its economy. Too many cheap imports can damage a country’s economy, as sales
of the country’s home-produced goods will suffer. Too many expensive exports can also be
harmful because few people will buy them. Therefore, each country has the right to impose
duty on imported goods in order to control prices and protect its economy.
35
CUSTOMS PROCEDURE
If the goods being imported or exported are duty-free (if no duty has to be paid on
them), they have to be declared to the customs authorities but will be immediately cleared
for further transportation. However, if the goods are dutiable (if duty has to be paid on
them), they will proceed through customs in one of the ways described here:
1. The goods are transported to the customs office at the border, the duty is calculated
and the importer pays it (or the exporter, depending on the terms of delivery). The goods are
then released for further transportation to their destination.
2. In the case of containerized goods, the container is sealed by the customs
authorities at the place of departure, and then transported to the customs office at the place
of destination. Here the container is opened, the duty is calculated and the importer pays it.
This eliminates the need for the goods to be inspected at every border they cross.
3. The third possibility is for the importer to store the goods in a bonded warehouse, a
special warehouse where the goods can be stored until the duty has been paid. This means
the duty doesn’t have to be paid until the goods are needed (for example when the importer
finds the buyer).
The following documents should be presented to the Customs or be enclosed with the
accounts when goods are declared:
Customs declaration, filled in and complete, with customs duties and taxes
calculated and entered on the form.
Bill o f lading, freight document, notice o f arrival or similar document issued in
connection with buying or selling the goods (one copy will be kept by the Customs if the
Customs declaration is surrendered at the customs house).
Documents o f origin (Certificate of Origin, Certificate of Quality), when customs
clearance of goods from certain countries under the terms for preferential trade is claimed,
for example, EEC or EFTA countries.
Licenses, permits, etc. for goods which are subject to import restrictions (not all
types of goods can be imported freely).
Other documents requested by the Customs in order to determine the correct customs
tariffs (duty rates, etc.), weight, quantity, value of the goods.
Relevant documents are catalogues, folders, weight specifications or contract
documents.1234
1. What are the possible ways o f proceeding through customs?

2. What is a bonded warehouse, and what purpose does it serve?
3. Why does every country need Customs?
4. Enumerate the necessary documents and their contents.
Exercise 2. Insert appropriate prepositions
1. All taxes, customs duties and other charges levied __________ connection
____________ the performance__________ this Contract_________ Ukraine are to be
paid ________ the Sellers and those levied outside Ukraine are to be paid
_________ the Buyers.
2. The simplest form ________ a tariff is one which consists of a single column levying
the same rate________ duty________ all imports.
36
3. ________ addition_______ customs duties proper, many countries levy extra charges
_______ one kind or another. The most common form is a surtax charged as a
percentage____________ the duty.
4. The internal taxes a re _________ a different kind. They are collected_______ imports
________ many countries. These are usually levied ________ the same rate as
_______ similar products________ domestic origin. Included__________this category
are sales taxes, excise taxes, V.A.T., turnover and transaction taxes, and the like.
Exercise 3. Fill in the customs declaration
CUSTOMS DECLARATION
(DESCRIPTION OF GOODS) “
(QUANTITY OF GOODS)(PRICE PER UNIT) (TOTAL VALUE)
(NUMBER OF CASES) (GROSS WEIGHT)
Contract No
(COUNTRY OF ORIGIN)
(CONSIGNOR)
(DESTINATION)
(CONSIGNEE)
FOR OFFICIAL USE ONLY

CUSTOMS TARIFF_______________________________________
DUTY TO PAY____________________________________________
ADDITIONAL CHARGES___________________________________
REMARKS_______________________________________________ CUSTOMS OFFICIAL
DATE_____________
Exercise 4. Complete the sentences using appropriate word and word expressions
Commodity penalty duties and taxes customs tariff declared restrictions

Importing and exporting Customs authorities importable violation for
control
1. If your line of business involves ______________ of goods you will come into
contact with t h e _______________ . All goods must b e _______ and presented
37
2. Declaring a ________ involves giving the Customs authorities information about
the commodity, which they need in order to determine the correct______ _
for the commodity. This information which includes weight, quantity, value and
etc., forms the basis for calculating_________________ .
3. Some goods, for example foodstuffs, clothes or flowers may be subject to_____ ;
the other types of goods, such as narcotics are n o t________ at a ll.___________
of these regulations can result in severe___________ .
1. В таможенной декларации указываются следующие данные:

- наименование товара/груза_______________________________________
- количество_____________________________________________
- цена за единицу___________________________________________ ______
- общая стоимость________________________________________________
- страна отгрузки_________________________________________________
- отправитель__________________________________________ _
- страна назначения_______________________________________________
- грузополучатель_________________________________________________
2. В соответствии с нашим Контрактом 22-07 от 11 мая с.г. сообщаем, что груз
прошел таможенную очистку 7 декабря.
3. В Контракте указано, что стоимость товара включает все таможенные
пошлины и сборы.
4. Грузовая таможенная декларация заполняется на каждую партию товаров,
перемещаемых через государственную границу, участниками внешнеторговых
операций независимо от их резиденства, юридического статуса, местоположения,
пользования таможенными льготами.
5. Основой для исчисления таможенных сборов и пошлин являются данные о
весе товара, его количестве, стоимости и т.д.
6. Если Вы занимаетесь экспортно-импортными операциями, Вам необходим
контакт с таможенной службой, поскольку весь товар должен быть задекларирован и
представлен для таможенного контроля.
7. Задекларировать товар означает снабдить информацией, которая необходима
таможенным органам для правильного определения таможенного тарифа.
38
UNIT 7
CUSTOMS
Part 2
Vocabulary
4ь Export duty -экспортная пошлина
4- Import duty - ввозная таможенная пошлина
A- Protective duty - протекционная пошлина
4- Dumping —демпинг, бросовые цены
A- Trade agreement - торговое соглашение
A Bilateral agreement - двусторонний договор
A Multilateral agreement - многосторонний договор
A Luxury goods - предметы роскоши
A Preferential duty - преференциальная пошлина
A Specific duty (fixed duty) - фиксированная пошлина
A Compound duty (mixed duty) —смешанная пошлина
4ь Customs clearance- таможенная очистка
A Ad valorem duty - адволарная пошлина
A Freight forwarder - грузоперевозчик
A Consumption —потребление
A To designate - предназначать
A Official customs stamp - печать
A To reclaim customs duty - требовать налоговую пошлину
A To discharge from the responsibility - снимать ответственность
A To absolve o f the guarantee - быть свободным от гарантий
A Fraudulent —фальшивый, мошеннический
TYPES OF DUTY
Export Duty
Export duty is sometimes imposed on goods when they leave the country (for
example, on oil exports from Russia).However, this kind of duty is not commonly imposed
because in many cases it would make the goods too expensive for the world market.
Import Duty
This kind of duty is imposed on goods when they are brought into a country. There
are two types of import duty:
1. Protective duty. Protective duty is imposed to prevent home producers losing

■usiness because of cheaper foreign imports. The process of importing cheaper foreign
goods is known as dumping.2
2. Preferential duty. Preferential duty is a lower rate of duty imposed on countries

-ith which there is a trade agreement. Such agreements may be bilateral (between two
. antries) or multilateral (three or more countries). Groups of countries which have
ziLiltilateral trade agreements include NAFTA (the North American Free Trade Association,
z;ade up of Canada, the US and Mexico) and ASEAN( the Association of Southeast Asian
39
Nations, made up of Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand).
This lower rate of duty is imposed to encourage importers to trade with the preferred
countries rather than with non-member nations.
Excise Duty
The purpose of excise duty is to raise money for the government. It is imposed on
certain home-produced products such as luxury goods, cigarettes, oil and alcohol.
CALCULATING DUTY
Duty is calculated in several ways:

Specific duty (fixed duty)
Specific duty, also known as fixed duty, is calculated as a fixed sum of money per
unit of quantity or weight (50 USD per 1,000 units or 50 USD per 120 kg).
Ad valorem duty
Ad valorem duty is charged as a percentage of the value of the goods, as
distinguished from a specific or fixed duty or tax, i.e. the more expensive the goods, the
higher the duty.
Compound duty
Compound duty, also known as mixed duty, is calculated using a combination of ad
valorem and specific factors; both the quantity or weight and the value of the goods are
taken into consideration. This kind of duty is imposed on goods where the prices fluctuate,
in order to prevent the amount of duty falling below CERTAIN MINIMUM. For example,
duty may be imposed on tea at a rate of 10% of the value (ad valorem duty).However, if the
price of tea falls, steps must be taken to prevent the duty falling below a rate of 30 USD per
100 kg (specific duty). If this happens, specific duty will be charged in addition to the ad
valorem duty to keep the duty imposed at the minimum required.
EUROPEAN COMMUNITY’S TRANSIT SYSTEM
In the European Union there is the European Community’s Transit System. The
procedure is the following: under the system the owner of goods is responsible for the
payment of duty. However, the destination of some goods requires the freight forwarder to
become responsible for the payment of customs duty instead of the owner. These goods are
classified as Community Transit goods. All imported goods for consumption within the EU
are subject to customs duty. However, the EU doesn’t require the payment of customs duty
when the goods are classified as Community Transit goods. Since they ordinarily originate
outside the EU but always pass through one or several member states. The system allows a
consignor to transport goods without repeatedly having to pay and reclaim customs duty
with every country. When goods are transported, the EU requires a guarantee to cover any
potential customs duty loss in cases where goods are thought to have been consumed within
a member state country not designated as the final destination. The freight forwarder
provides the guarantee because he has legal possession of the goods and is responsible for
duty and taxes.
The freight forwarder is able to absolve himself o f the guarantee after proving that
the goods reached their destination. This is usually done when the EU customs official at
40
port of entry is shown documentary proof that that the goods have left an EU customs port
of exit. The documentation that regulates the Community Transit, the “T1 Form” is the
official customs stamp on page 5 of the document. Its return to the port of entry discharges
the freight forwarder from the responsibility. If page 5 of the form doesn’t arrive or is
proved fraudulent, customs enforce the guarantee.
1. What purposes do the different types o f duty serve?

2. How can duty be calculated?
3. Why is it necessary to have more than one way o f calculating duty?
4. What’s the procedure o f European community’s Transit system?
Exercise 2. What kind o f duty do you think was imposed in each case?
1. An exporter in France sent a consignment of cheese to an importer in Sweden.
2. An importer in Japan wanted to buy cheap cameras from Taiwan.
3. A group of Ukrainian tourists bought quantity of expensive perfume while on
holiday in France.
4. A Sri Lanka company sent large quantity of tea to England.
Exercise 3. Scan the freight forwarder’s request fo r customs clearance and answer the
questions
(shipping order — отгружаемый заказ; haulier —экспедитор наземного транспорта;
documentary collection - торговое инкассо; forwarding arrangement -
фрахтовые/экспедиторские мероприятия; forwarder’s receipt — расписка
экспедитора; export notification —экспортное уведомление)
EUROFREIGHT LTD
49 Tentertow© Lane
Hitltngdon
Middlesex MU8 8DE
e-mail: ewoireightfeiQl.cQm.tjk
AG/MM
24 March 20..
Glaxo Chemicals Ltd
237 Sutton Common Road
LONDON
SW11 3BY
Dear Sirs
Export Consignment to Budapest. Hungary
We refer to the following shipping order:

Consignee: Budapesti Vegyi Mbvek
Budapest XII
Radnoti Miklos Utca 23
1367 ’
Magyarorszag (Hungary)
Consignment: 10,565 kg bitumen (15 drums) (value J13,300)

Order No.: 19t/l .93 (as per your fax of 12 March 200-) __
41
D elivery: 3-4 w eeks after receipt o f L /C
H auliers: U rigtrocam ion, B u d ap est
Y o u r custom er, B udapesti V egyi M bvek, has requested us to co llect the above consignm ent using
U n g aro cam io n hauliers and forw ard it in accordance w ith his instructions to H ungary.
P lease therefo re let us have details o f eith er the L /C or the docum entary collection (B /E, B s/L )
ag reed , to enable us to p ro g ress forw arding arrangem ents and issue a forw arder's receipt.
F o r cu stom s clearance w e require:
for E xport
Export notification or export declaration
for Im p o rt into H ungary
Commercial Invoice in triplicate
Packing specification in triplicate
S hould you req u ire any further details or inform ation please do no t hesitate to call us on 0181 580
580 4971 or fax us on 0181 580 4862, o r send us an e-m ail.
Y o u rs faithfully
E U R O F R IG H T L T D
A rn o ld G raham
T ran sp o rt C o ntroller
1. Who is the consignor/shipper?

2. What’s the name of the company which has to receive the goods?
3. What’s the place of destination?
4. What documents are required?
5. When can a forwarder’s receipt be issued?
Exercise 4. Complete the sentences using appropriate word and word expressions
Import or export documents customs regulations the Customs delivered
Customs clearance receipts customs declaration1234
1. As the importer or exporter it is your responsibility to fill in a _________ and present it

to ______________for______________ .
2. When you declare goods, you submit the necessary_______________________ to the
Customs.
3. The gods will not b e ____________ until invoice, freight document, licences, permits
and other documents demanded by the Customs a n d ________________ have been
presented.
4. Before you can sell or make use of the goods, you need ____ from the Customs,
showing that customs duties and taxes have been paid.
Exercise 5. Translate from Russian into English
1. Таможенный союз - межгосударственное формирование, в рамках которого

значительно снижены тарифы на провоз товаров в пределах стран - участниц
союза и установлен общий таможенный тариф, обеспечивающий
единообразные для всех членов условия приема товаров из других государств.
42
Таможенный союз - более высокая ступень экономической интеграции по
сравнению с зоной свободной торговли, но уступающая общему рынку.
2. Таможенные пошлины - обязательные налоги на товары, ввозимые в страну
или вывозимые за ее пределы. Система установленных пошлин, подлежащих
взиманию с товаров, перемещающихся через границу, является таможенным
тарифом.
3. Под нарушением таможенных правил имеется в виду импорт товаров, ввоз
которых запрещен или строго ограничен.
4. Для того, чтобы пройти таможенную очистку, необходимо заполнить
декларацию и представить ее таможенным властям.
5. Вместе с декларацией таможенной службе должна быть представлена вся
экспортно-импортная документация.
6. Экспортно-импортная документация включает в себя коммерческий инвойс,
транспортную накладную, разные сертификаты, лицензии и разрешения.
7. Для того, чтобы торговать импортным товаром, необходимо иметь квитанцию,
удостоверяющую, что все таможенные сборы и налоги уплачены.
43
UNIT 8
TRANSPORTATION OF CARGO
Vocabulary
4* General cargo - генеральный груз
4 Bulk cargo - насыпной, навалочный, наливной груз
4 Bulky cargo —громоздкий, объемистый груз
4- Dry bulk cargo - навалочный груз
4 Heavy cargo (heavy-lift,extra-weight) —тяжеловесный груз
4- Liquid cargo - жидкий груз
>4 Refrigerated cargo - рефрижераторный груз
4- Airwaybill - авиагрузовая накладная
4- To deteriorate - ухудшать(ся)
4 Haulage company - компания наземных перевозок
4- Grouped consignment — сборная партия груза
4 Groupage B/L - коносамент на сборную партию груза
4 Forwarding agent — экспедитор
4 Intermediary- посредник
4 Consignment note - грузовая накладная
4 Forwarding agent’s Certificate o f Receipt - Акт приемки экспедитором
4 Railway company - компания железнодорожных перевозок
4 Goods train - товарный поезд
4 Passenger train —пассажирский поезд
4 Express train —поезд-экспресс
4 Rail consignment note —железнодорожная накладная
4 International Consignment Note (CMR) - транспортная накладная

A good transport system is necessary if goods are to be traded efficiently. A
consignor (someone who dispatches goods) can choose to send his consignment (goods) to
the consignee (the person who receives the goods) by:
- Air
- Land, by road or by rail
- Water, which covers both domestic (national) and ocean (international) shipping.
When choosing the most suitable form of transport, the consignor has to consider:
- What kind of goods are to be sent - perishable goods have to be transported more
quickly than non-perishable goods, for example.
- The place of destination —not all destinations can be reached by all forms of
transport.
- The cost of each form of transport, how fast it is and how safe. The consignor
may have to decide whether speed is more important than safety, for example.
Types of cargo
When goods are being transported they are called ‘cargo’.
- General cargo - goods sent packed in boxes, cases, crates
- Bulk cargo - large quantities of items such as sand, grain and coal when sent
unpacked.
44
- Bulky cargo —large individual items such as cars which have to be sent unpacked.
- Perishable cargo - goods with short storage period
- Dry bulk cargo - goods loaded and discharged by cranes with grabs or by pumps
- Liquid cargo - cargo which is carried in tankers
- Refrigerated cargo - cargo which is shipped in refrigerating plants
Air transport
Air transport is chosen when the goods are valuable, fragile, urgently needed. Some
goods deteriorate, e.g. flowers (perishable goods).
ADVANTAGES DISADVANTAGES
1. Air transport is fast 1. It is relatively expensive.
With bulk consignments air is much more
expensive, and can be uneconomical
2. It is a secure form of transport; 2. It is not practical for short distances.

Which means that insurance costs are
low. Besides, insurance tends to be
cheaper as consignments spend less
time in transit.
3. There is no limitation as to distance. 3. It may be necessary to send the goods

some distance to reach the cargo terminal
of an airport.
The transport document is necessary when goods are dispatched by air is the air
waybill.
Airwaybill
The air waybill isn’t a document of title and can’t be negotiated (see annex 2).
However, the exporter has a right of disposal to the goods, which means that on presenting
his copy of the air waybill, he can stop the goods during their journey, have the goods
delivered to a different consignee from the consignee mentioned on the air waybill, or have
the consignment returned. This is useful if the exporters discover after dispatching the goods
that the consignee may not be able to pay for them.
The air waybill is made up of 3 originals and several copies (TTL 12).
- Original 1 is marked “For carrier” and is kept by the airline once it has been
signed by the consignor or his agent.
- Original 2 is marked “For consignee” and travels with the goods
- Original 3 is marked “For shipper” and is returned to the exporter once it has
been signed by the airline.
45
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Road transport
Goods which need careful handling, such as fruit, are often sent by road, as they need
to be loaded and unloaded once. Normally they are sent as general cargo. The carrier
responsible for transporting goods by road is the haulage company.
1. It is very fast over short distances 1. Only small quantities can be
transported
2. The extensive road network means 2. There is relatively high risk of

that most destinations can be reached accidents and delays through traffic jams
3. It’s relatively secure - even valuable 3. It’s expensive and time-consuming

items such as cash reserves can be over longer distances; intercontinental
transported by specialist companies transportation is virtually impossible
Another advantage of sending goods by road (although it’s possible with other means
of transport) is the opportunity of using a grouped consignment service. If a trader only has
a small quantity of cargo to send, he can collaborate with other sellers with small
consignments all going to the same destination.
The various parts of consignments are then sent together as one whole consignment,
which reduces the transport costs for everybody involved.
One of the people who organizes grouped consignments is the forwarding agent. He
is the intermediary between the buyer, seller and carriers. Other services which he provides
are delivering goods from the seller to the carrier, transporting goods with his own lorries,
arranging special packaging and providing storage space for goods which are to be
dispatched at a later date.
The transport documents essential to road transport are the International
Consignment Note (CMR) if a haulage company is used and the Forwarding Agent’s
Certificate o f Receipt (FCR) for transportation by a forwarding agent.
Consignment notes like the AWBs are not documents of title so ownership of the
document doesn’t mean ownership of the goods. They are not negotiable, i.e. they cannot be
bought, sold, transferred by the consignor (the exporter), or the consignee (the importer).
Railway transport
If goods are transported by train, the carrier is the railway company. The price of
railway transport depends on how fast the goods are to travel: the slow goods train is
cheaper than the passenger train, and the express train is the fastest and most expensive of
all.
1. V irtually all ty p es o f cargo can be 1. T he railw ay m ay be effected by strikes
transported
2. V irtually any d istance can be covered 2. T here is a relatively high risk o f theft
Large q u an tities can be transported
47
The transport document needed for railway transport is the rail consignment note.
6. What key points should be taken in consideration to choose the best mode o f
transportation ?
7. What types o f cargo do you know?
8. What modes o f transportation are used for transporting goods?
9. What documents are used fo r different air/road/railway transportation?
10. What’s the function o f the airwaybill?
11. Who can arrange for grouped consignment?
12. What’s the airwaybill made up of?
Exercise 2. Divide the following goods into cargo groups
General Bulky Perishable Dry bulk

Bulk cargo Liquid cargo
cargo cargo cargo cargo
Grain +
Meat
Ore
Petroleum
Fertilizer
Water
Yacht
Oil
Fruit
Crude oil
Edible oils
Coal
Exercise 3. Which form or form s o f transport would you choose fo r the following
consignments, and why? What kind o f cargo is involved in each case?
1. A large consignment of cars from Hamburg to Dresden.
2. A small consignment of flour from Wales to London.
3. A small consignment of china from London to Kiev.
4. An urgently needed consignment of tea from Bombay to Boston.
5. A consignment of diamonds from Cape Town to Cairo.
6. A large consignment of coal from Sheffield to Leeds (both in the north of
England).
48
Exercise 4. Study the quotation for delivery by air. Answer the following questions
Universal Airways Ltd
Airline House, Palace Road, London SW1

Directors: Sir Bernard Hullings, E.M. Marchant FCA,
D.L. Owen АСА, В. Friens MA
Telephone: 071 638 4129 Reg. No.: London 281395

Telex: 381215 Vat No: 85 1162788
Cable: UNIWAY
Fax: 071 638 5551
MrN. Jay 18 June 20-

British Crystal Ltd-
Glazier House
Green Lane
Derby DEI 1RT
Dear Mr Jay,
Thank you for your enquiry of 15 June.
We will be able to send your consignment to Riyadh within 24 hours of delivery to Heathrow.
The cost of freight Heathrow/Riyadh is £10.60 per kilo, plus £8.50 air waybill, and £54.00
customs clearance and handling charges. But you will have to arrange your own insurance.
There are three flights a week from London to Saudi Arabia, Monday, Wednesday, and
Saturday.
Please fill in the enclosed Despatch Form and return it to us with the consignment and
commercial invoices, one of which should be included in the parcel for customs inspection.
Yours sincerely,
Rladen
R. Laden
Cargo Manager
Enc.1234
1. What other charges are there besides the freight charges?

2. Are there daily flights to Saudi Arabia?
3. Why should an invoice be included in the parcel?
4. Who will arrange insurance?
49
Exercise 5. Study the request fo r a quotation for delivery by road.
Compose a reply to Mr. Cliff’s letter, using the following terms
Consignment (2) insurance receipt delivering
reply consignee quote enclosed delivery
Dear Mr Cliff,
In to your letter o f 10 November, we can $75.50 for
picking up and your from your
address to the premises. This includes loading and unloading,
plus
I f you fill out the Despatch Note , and let us know 2 days before
you want the made, our driver will hand you a
when he calls to collect the
Yours sincerely,
1. Так как Ваши грузы скоропортящиеся, то определяющим фактором,

влияющим на эффективность перевозки, является срок доставки.
2. Наши заказчики боятся, что их продукция может быстро выйти из моды,
кроме того, многие поставляемые грузы хрупкие, а при авиаперевозках они
доставляются быстро и в сохранности. Наши заказчики это очень ценят. И хотя
ставки высоки по сравнению с другими видами транспорта, экономия в затратах на
страхование и упаковку компенсирует это.
3. Из порта назначения груз будет доставлен получателю автомобильным
транспортом.
4. То, что Ваш груз пришел не в срок, явилось результатом затора на дорогах.
Вам не надо было отправлять груз автомобилем.
5. Я предлагаю воспользоваться услугами железнодорожного транспорта. Он
перевозит грузы по регулярному расписанию, на него практически не влияют
погодные условия и загруженность на дорогах.
6. Потеря или повреждение груза могут быть результатом неправильного
выбора транспортного средства.
50
UNIT 9
TRANSPORT LOGISTIC SCHEME OF DELIVERY
Vocabulary
4 Palletized cargo - паллетизированный груз, уложенный на поддоны
4- То be built up on a ULD - закладывать в УЛД, формировать в УЛД
4 Unit Load Device - грузовой модуль, укрупненная грузовая единица
4 Expertise —знания, опыт
4 Return trip - обратный рейс, обратное направление
4 Revenue - доход
4 Transfer- перевалка
4 Container freight station - контейнерная товарная станция, склад
формирования (консолидации) контейнеров, расформирования
(деконсолидации) контейнеров
4 То forward —отправлять
4 То track and trace cargo —отслеживать груз
4 То adhere strictly to documentary credit terms — строго соблюдать условия
документарного аккредитива
4 То expedite, to speed up —ускорять
By rail, by road, by air or by sea —it’s a matter o f options.

Do you want your cargo to be shipped quickly and efficiently? Does time matter or
are freight charges a more decisive factor? Are your goods perishable, live animals or do
they need special treatment?
Is your freight general cargo (FAK = Freight All Kind), bulk cargo, standardized or
containerized cargo? Can it be consolidated with other cargo? Can it be palletized and built
up on an aircraft Unit Load Device, a ULD1
You will consider different transport modes depending on the size and nature of the
consignment, length of the ship and urgency of the shipment. In many cases multimodal
carriage is necessary, such as a combination of air, road, sea and rail. This multimodal
transportation has been facilitated by the use of standardized containers (CNTRS), which
permit quick and efficient transfer of cargo from one carrier type to another.
It’s a freight forwarder’s job to seek the best route and contract the best carrier for
your shipment. A shipper or a consignor relies on the forwarder’s expertise to give you
confidence that your consignment is forwarded to the consignee or addressee in a timely
manner and in good order.
To improve efficiency and to reduce transportation costs, freight with the same
destination is grouped or consolidated. Good planning also involves arranging for cargo
transportation on return trips when possible, i.e. planning a back load, as cargo planes that
return empty result in an unnecessary loss of revenue. The forwarder - if instructed by the
shipper - also arranges for insurance to cover possible loss or damage during transportation.
Freight forwarding
As freight forwarder provides for a transport-logistic scheme of delivery, he’s called
a logistic service provider, or a transport manager.
51
His function and role can be compared with a travel agent’s job. People that want to travel
can either make all of the arrangements themselves (book a flight, arrange accommodation,
rent a car, etc.) or contact a travel agency to take advantage of their professional expertise to
find the lowest rates and travel accommodations.
A freight forwarder usually has a network of counterparts in the major shipping and
transportation centers worldwide.
Communication with his/her counterparts facilitates the forwarder’s ability to track
and trace cargo during transportation.
This is a list of the main tasks of a freight forwarder:
1. The forwarder advises his client on the quickest and most economical transport mode,
taking into account applicable trade rules and documentary credits that apply.
2. He advises clients on packing problems. He’s aware of modem packing techniques
especially for the transport of perishable or fragile goods. Efficient packing can reduce
cost, thereby increasing a client’s competitive edge.
3. The forwarder handles customs formalities for his client. He knows the tariffs and taxes
so that goods destined for export are cleared through customs immediately after their
delivery by the client. Thus, goods are more quickly available in case of import.
4. He sees to it that foreign trade regulations and instructions regarding documentary
credits are adhered to. He assists in preparing and legalizing certificates of origin and
consular invoices.
5. The forwarder negotiates transportation contracts with carriers. Because of his daily
contacts with several of these carriers, he can expedite delivery in case of emergency.
6. He consolidates different shipments into one, which results in an optimal use of the
available cargo space and competitive prices.
7. The forwarder arranges fo r shipping insurance based on consultation and instructions
from the client. His experience places him in a favorable position to negotiate and select
the most favorable rates for his client.
8. He gives advice on warehousing and distribution. Many forwarders have their own
warehouses and organize distribution, which speeds up and increases liquidity.
9. He completes all the necessary transport documents.
Bolero System
The Bolero System is a technological environment, owned by the world's logistics
and banking communities, in which paper Bs/L and other trade documentation are replaced
by electronic messages sent via the Internet. Bolero is designed for all parties in the trade
process: importers, exporters, freight forwarders, port authorities, inspection agencies,
carriers, ship's agents, customs agencies and financial institutions.
It is supported by a legal framework based on a Bolero Rule Book which establishes
a contractually binding set of rules which all users of the Bolero System are required to
sign.
The backbone of the B.S. is the Core Messaging Platform, which enables users to
exchange electronic trade documents via the Internet. The system is secure, is underpinned
by a legal structure and is maintained by a trusted third party. All messages between users
are validated. All messages are acknowledged and notifications are provided as requested.
Additional messages determine whether the recipient accepted or refuses the stated offer.
Another major feature is the Title Registry application, which allows for the ownership of
goods to be exchanged online.
52
.What‘s the purpose o f multimodal transportation?
2. What facilitates multimodal transportation?
j. Why is the freight consolidated?
- What fields should a freight forwarder be experienced in?
5. What problems does he advise on?
6. What documents does he deal with?
What is the function o f Bolero system?
8. How does it work?
Exercise 2. Comment on the following issues

1. Name the factors the freight forwarder is guided with when planning
transportation of a consignment.
2. Name the parties involved in the trade process who may use the Bolero system.
3. Describe the way the Bolero system is made secure.
Exercise 3. Define if the following statements are true (T) or false (F)
1. If required freight forwarder establishes export and import licences, certificates,

insurance policies and documents.
2. He acts in the name of his client, who still bears all responsibility during
transportation.
3. The client will investigate transportation possibilities, compare them and find the
ideal combination of price, travel time and reliability.
4. A freight forwarder has to be aware of political changes.
5. He has to be informed about government regulations.
6. Riots or strikes going on at an airport are no concern of the forwarder’s.
7. Carriers contact forwarders for transporting goods from departure point A to
destination point B.
Exercise 4. Here is a list o f some transport documents which have to be completed by a

forwarder: Multimodal B/L, Insurance certificate, Consular invoice, Airwaybill, B/L,
Packing list, Standard shipping note, Certificate o f Origin, Invoice, Commercial invoice,
Container way bill
Match the definition and the term
DEFINITION NAME OF DOCUMENT

1. L ist o f g o ods b eing sent. T his repeats som e o f the
in form ation on a bill o f lading, but is a separate d o cum ent
2. L ist o f g o ods o r serv ices that states how m uch m ust be
paid for them
3. B/L co v erin g m ore than one m eans o f tran sp o rt
4. D o cu m en t th at gives inform ation ab o u t g o ods sen t by
container, and states w h eth er the buyer or seller is
resp o n sib le for in surance
5. D o cu m en t th at an insurance policy is w ritten
6.D o cu m en t co m p leted by the ex p o rter th at gives
inform ation ab out a consignm ent. It is used as delivery
note or receipt.
7. A stam p on co m m ercial invoice, issued by th e consulate
53
in the im porting country w hich gives perm ission for goods
to be im ported
8. A d o cum ent th at show s w here goods w ere m ade
9. D ocum ent th at giv es inform ation ab o u t g o o d s sent by
air, and states w h eth er the buyer or seller is responsible for
insurance
10. Shipping d o cu m en t that gives details o f a consignm ent,
its destination, and the consignee. It en titles th e consignee
to collect th e g oods on arrival
11. A d o cu m en t th at w ill include the nam e and address o f
the seller and buyer, the term s o f delivery and p ay m en t and
a description o f the goods being sold.
Exercise 5. Read the instruction to a forwarding agent and fill in the blanks with the
correct term taken from the list below. Translate into your native language
Shipment pick up formalities arrangements shipped
insurance handle
Dear Mr Simpson
Could you please____________ a consignment of 20 C2000 computers and make the necessary
_________________ for them to b e _______________to Mr Tanner, NZ Business Machines
Pty, 100 South Street, Wellington, New Zealand?
Please_____________ all the shipping______________ and insurance, and send us five copies
of the bill of lading, three copies of the commercial invoice, and th e ________________
certificate. We will advise our customers of_______________ ourselves.
Could you handle this a.s.a.p. ? Your charges may be sent to us in the usual way.
Yours sincerely,
Neil Smith

Мы хорошо знакомы с современными условиями торговли,
правительственными предписаниями и современными технологическими
возможностями. Мы можем проконсультировать по вопросам, связанным с упаковкой
товара, оформить все необходимые транспортные документы, выполнить
таможенные формальности, организовать страхование, а также через широкую сеть
контрагентов проследить движение Вашего груза в процессе его перевозки.
В задачу также входит найти лучший и наиболее дешевый вид транспорта,
организовать начальную и последующую перевозку груза, проследить за
соблюдением условий документарного аккредитива, организовать необходимое
хранение груза. Эта деятельность называется транспортный менеджмент.
Listening comprehension
Watch the video clip by the International Chamber o f Shipping publicizing the shipping
industry.
54
Exercise 7. You are going to hear information about International Shipping industry.
Underline the words the speaker uses.
Flood economy law raw merchant value economics
Blood row goods freeze coast million assets marine
Liable food half low foot freight cost sale
Exercise 8. Listen to the text again. Complete the gaps in the transcript
The International Shipping Industry carries__________ of world trade. It is the life
blood of the global economy. There are around_____________________ merchant ships
____________ internationally, transporting every kind o f _______ . Without shipping
intercontinental trade the _______ _ transport o f ______ materials and the import and
export of affordable food and manufactured goods would simply not be possible. Half the
world would _________ and the other half would _________ . Ships are technically
sophisticated high ________ assets that can cost hundreds of millions of dollars
_________ . Their safe operation and _____________ are crucial to the continual
health of the world economy. And as world trade grows, the international shipping industry
has responded to the demands for its services. _____________ estimates show annual
freight rates of more than _______________________ , which represents approximately 5%
of t h e ____________________________economy. It is the availability, low cost and the
efficiency of maritime transport that has in large part been responsible for recent
________________ improvements in global _____________________ .
Exercise 9. Listen to the information about the international character o f shipping.

The shipping industry today is truly international, flying the flags of over 150
different nations and manned by over a million seafarers o f most nationalities. It is also one
o f the safest, cleanest and most efficiently run industries.
The speaker enumerates the ways of achieving success in shipping.
Put them in order.
- navigation rules _______
- UN role _______
- enforcement of IMO conventions ____________
- global framework of regulations _____1_____
- construction standards __________
- crew qualifications ___________
Exercise 10. Listen to the second extract o f this part and fill in the gaps
Nations also have the power to detain foreign ships in port if they do not
________________ the regulations, a serious sanction port states are not afraid to use. As a
result, although the nature of the sea means that ships are exposed to considerable physical
risk, ____________ _____________ of the shipping industry and its
_____________________ performance are impressive. Serious maritime accidents have
more than_____________ in the last ten years. At the same time it’s the amount of maritime
trade has almost _________________ . The quantity o f _______ ___________ is now
running at less than 10% of the level in the early _______ , and carbon dioxide
_________________ from cargo ships are a fraction of the equivalent figure for aircrafts.
55
UNIT 10
INTERMODAL TRANSPORTATION
Vocabulary
4 Unaccompanied delivery —без сопровождения
4- A lorry —грузовой автомобиль
4- To deposit - доставлять
4- Articulated vehicle —съемный прицеп
4- Low-loader wagon - низкорамная платформа
-4- Feeder shipping —фидерное морское судоходство *
4 “One-stop-shopping ” - технология «одного окна» **
4 Corrosive —едкий
4 Harmful - вредный
4 Poisonous - ядовитый
4 Carton - (большая) картонная коробка
4 С а п - бидон
4 Drum - вытянутая бочка
4 B a le - кипа
4 Pail - ведро
4 Barrel- бочка
4 То dispense contents —распределить содержимое
4 String, cord - веревка
4 Sawdust - опилки
4 Woodfibre —древесное волокно
4 Refrigerant - охладитель
4 То line with —обивать
4 Crate - большой деревянный ящик, клеть
4 J a r -б ан к а
4 Demijohn —большая оплетенная бутыль
4 Igloo - авиационный контейнер
4 A wide-body freighter - широкофюзеляжный самолет
4 Wicker-прутья для плетения
* Фидерные линии - л и н и и , р а б о т а ю щ и е п о с б о р н о -р а с п р е д е л и т е л ь н о м у п р и н ц и п у : из к руп н ы х
б а зо в ы х п ор т о в гр у зы р а зв о зя тся м ел к и м и партиям и п о б л и зл еж а щ и м п о р т а м , и н а о б о р о т ,
о су щ ест в л я ет ся п о д в о з г р у зо в к т а к о м у п о р т у для н а к оп л ен и я и отправки н а д а л ь н и е р асстоя н и я .
К о н т ей н ер о в о зы и р ол к ер ы , р а б о т а ю щ и е на э т и х л и н и я х н о ся т н а зв а н и е « ф и д е р о в » .
** Технология работы «одного окна» - эт о кон ц ен тр ац и я с п р о с а в р у к а х т р а н сн а ц и о н а л ь н ой
к ор п ор ац и и и о б е с п е ч е н и е у д о в л е т в о р е н и я т а к о го сп р о с а т а к ж е о д н и м п р е д п р и я т и ем —
п р о и зв о д и т ел ем у с л у г , как п р ав и л о, т р а н сн а ц и о н а л ь н о й т р а н сп о р т н о й к о р п о р а ц и ей (та к ую
т е х н о л о г и ю н азы в а ю т т а к ж е « а у т с о р с и н г о м » - a u tso rsin g ).

Intermodality is a concept which embraces the movement and transfer of
standardized cargo containers by sea, air and land. It has reduced cargo handling,
particularly in door-to-door shipments. Development of specialized CNTRs of various
types, sizes and configurations permits containerization of most cargo.
A common form of intermodal transport is unaccompanied delivery. The longest
distance is covered by rail, and the distribution from the terminal to the final destination
56
takes place by road. The lorry deposits the loading unit at the railway station and upon
arrival by train the unit is picked up by a vehicle and travels to its final destination.
In accompanied transport, entire lorries or articulated vehicles are transported by rail
on special low-loader wagons. The drivers travel on the same train in a sleeping car. It
should be mentioned that freight load may be operated more efficiently when we use the
traditional modes including rail, inland waterways and short-sea shipping transport - feeder
shipping on one hand, and “one- stop-shopping”facilities on the other hand.
Packing
Packing refers not only to the materials used to prepare goods for transport, but also
to the operation of putting goods into CNTRs. The packing must maintain the purity and
freshness of its contents and protect the contents from the outside environment; if the
contents are harmful, corrosive, or poisonous, the package must also protect the outside
environment. The packaging itself must present no chemical hazard as well. The package
must identify the contents and their quantity, and it must facilitate distribution.
The basic materials of packages today are:
paper, cellophane, steel, aluminium, glass, wood, textiles, and plastics.
Conventional package forms include:
wraps, bags, cartons, cans, bottles, pails, drums, barrels and bulk CNTRs.
All packages must be sealed in some way, and many require an opening for
dispensing the contents. The contents are usually identified by direct imprinting or by an
applied label.
Goods can be wrapped (in paper) and tied with string or cord, sealed, or taped with
cellotape. Sometimes materials such as sawdust, wood fibres are used to prevent damage.
Perishables or special temperature - sensitive cargo such as vaccines and medical supplies
are packed in dry ice. Its cooling effect is almost twice that of wet ice; its special advantages
are that it doesn’t melt as a liquid one but turns into gas, and that it produces an inert
atmosphere that reduces bacterial growth.
Grains, ores and coal are usually transported in bulk. Other goods are shipped in
cases, sometimes lined with zinc to make them watertight. Cotton, tobacco and wool are
sent in bale, either loose or pressed. Dry goods such as coffee or seeds can be packed in
paper. Crates are large cases with slats used for sendingfurniture, fruit, etc.
Liquids can be packed in various types of CNTRs, such as jars, spray cans or
demijohns. The latter holds 10 gallons. They are used for wine or acids, and are usually
covered with wicker.
Goods destined for airfreight are made ready for transportation at the airport. They
are built up and packed in Unit Load Devices (ULDs). These may be pallets, igloos or
CNTRs. Pallets and igloos are designed so that they fit in the aircraft without loosing space.
Intermodal CNTRs, whose weight and size are standardized can be lifted mechanically off
trucks, railway flats and ships, can be loaded on the main deck of a wide-body freighter.
Marking
There are 3 principal types of marking which may have to be done on export
packages:
1. The consignees ’ own distinctive marks
They are registered and serve as identification. They include the port of destination,
eg. К R X X
Durban Singapore
57
2. Any official mark registered by authorities
They are special marks demanded by the country of export or import (name of the
country of origin of the goods, weights and dimensions, etc).
eg FOREIGN PRODUCE OF SOUTH AFRICA
Net weight 100 kg. Dimensions
Gross weight 125 kg. lm. x 1.5m. x 2.25 m.
Tare 25 kg.
3. Special directions or warnings
They are special instructions regarding manner of handling, loading, lifting and various
warnings both for the owner’s and the carrier’s benefit.
1. What are the advantages o f intermodal transportation?

2. What aspects are o f great importance fo r packing?
3. What’s the purpose o f packing?
4. What are conventional package forms?
5. What cargo is packed in ULD?
6. What ’re main principal types o f marking?
Exercise 2. Comment on the following issues

1. Name and compare common forms of intermodal transport.
2. Name the requirements for packing.
3. Describe in general the procedure of packing of goods destined for airfreight.
Exercise 3. Match the following English warnings with their Russian equivalents
1. HANDLE WITH CARE A. ХРАНИТЬ В ПРОХЛАДНОМ МЕСТЕ
2. GLASS - WITH CARE B. БЕРЕЧЬ ОТ ВЛАГИ
3. FRAGILE C. ВЕРХНЯЯ ЧАСТЬ
4. USE NO HOOKS D. НЕ СКЛАДЫВАТЬ НА ПАЛУБЕ
5. TO BE KEPT COOL E. ПОДНИМАТЬ С ЭТОГО КОНЦА
6. THIS SIDE UP F. ОСТОРОЖНО, ХРУПКИЙ ГРУЗ
7. DO NOT STOW ON THE DECK G. ОСТОРОЖНО
8. KEEP DRY H. ОСТОРОЖНО, СТЕКЛО
9. LIFT HERE I. НЕ ПОЛЬЗОВАТЬСЯ КРЮКАМИ
10. INFLAMMABLE J. ДЕРЖАТЬ ВДАЛИ ОТ
НАГРЕВАТЕЛЬНЫХ ПРИБОРОВ
11. STOW AWAY FROM HEAT K. ОГНЕОПАСНО
Exercise 4. Choose the cargo to fit the following packing
Drum Tube with a vaccine

Dry ice beer
Barrel a dog
Crate oil
Wicker basket marmalade
Jar cotton
Bale furniture
58
Exercise 5. Find the odd-one-out
1. corrosive, watertight, harmful, poisonous
2. dry ice, perishables, igloos, medical supplies
3. pail, wood, can, carton
4. aluminium, plastics, bag, steel
5. hazard, liquid, solid, gas
6. melt, wrap, tie, tape
Exercise 6. Read the container company’s reply to an enquiry. Answer the questions.
Translate into your native language
Dear Mr Pike
Thank you fo r your fax o f 15 March.

The Europe sails from Tilbury on March 26 and will arrive in Hamburg on March
28, which appears to suit your schedule fo r delivery. Please note, however, that the vessel
closes fo r cargo on 24 March.
You will see from our list o f tariffs that charges are calculated by cubic metre or
cubic kilogram and that we offer substantial rebates fo r regular shipments.
The most suitable container fo r your consignment would be a half-height
container which is 20’ x 8 ’ x 4 ’ or, in metres 6.1.x 2.4 x 1.3. This can carry a payload of
18,300 kg. It has a solid removable top, and will protect the metal against all elements.
I suggest that, as the consignment is to be loaded from lorry to ship and then
transferred again, you should use our combined transport bill. This would cover the
goods from point o f acceptance to point of delivery. I f you would like to go ahead on this
basis, please complete the attached export cargo shipping instructions and the export
cargo packing instructions and return them to us as soon as possible. Although we accept
door-to-door responsibility, we would advise you to take out an all-risk insurance policy,
and send a copy o f this and three copies o f the commercial invoice to us.
The cargo should be marked on at least two sides with a shipping mark which
includes the destination port. This should correspond with the mark on your shipping
documents.
Hook forward to receiving your instructions.
Davis Muner
Customer Service Manager
International Containers pic
London WW 1H 9BN
1. How are the freight charges estimated?

2. Is there any advantage in the exporter making regular shipments?
3. When does the Europe close for cargo?
4. What type of container does Mr Muner recommend?
5. What sort of liability will the shipping company accept?
6. Does the exporter need to insure the cargo?
59
Exercise 7. Complete the letter enquiring about a forwarding agent’s charges with the
correct prepositions. Translate into your native language
Dear Sir,
You were recommended_______ us_____ Stellman Ltd., our associates,________
whom you have operated as forwarding agents.
We are looking____________ a reliable agent to handle our deliveries__________

Europe, taking care_________ documentation and making su re________safe delivery -
many_______our products are very fragile.
You will fin d a list representing a consignment we wish to send_______ Lausanne

_______ road. Could you let us have quotation, and if it is competitive, we can assure you
____________ further business_______ the future.
______Yours sincerely__________________________________________________________
Exercise 8. Compose the forwarding agent’s reply. Put the phrases in the correct order;
add paragraphs, capitals and punctuation where necessary*12345
Dear Sir,
- our freight charges/ o f 10 November/ thank you/ enquiring about/for your fax
- fo r shipments/ I enclose/ which includes all transport customs and
documentation charges/ our tariff list
- are highly competitive/I think/ that these rates/you will find
- that we have/ in handling fragile consignments/ in addition/extensive
experience/I can confirm
and 1 will be very pleased/any further questions/please contact те/to help/if you
have
- to hearing/I look forward/fromyou
Yours sincerely__________________________________________________________
1. Перевозке в смешанном сообщении во многом будет содействовать

перевозка грузов в контейнерах стандартных типоразмеров.
2. Этот груз должен быть помещен в грузовой модуль, что позволит
осуществить быструю и эффективную перевалку с одного вида транспорта на другой.
3. Не волнуйтесь о том, что Ваш груз повредится или потеряется во время
транзита, он следует в сопровождении. Перевозчик несет личную ответственность за
сохранность груза, кроме того, он застрахован от повреждения, потери и хищения.
4. На контейнерной товарной станции грузы консолидируются. Ваш груз будет
сгруппирован экспедитором с другими партиями грузов, следующих в одном
направлении, и помещен в контейнер. Чтобы снизить транспортные издержки и
повысить эффективность перевозки, используются стандартизированные контейнеры.
5. У Вас мелкие партии груза, и Вам важно, чтобы они прибыли к адресату как
можно скорее.
60
6. Груз будет следовать на судне, и экспедитор организует быструю и
эффективную перевалку с железной дороги на борт судна. Если на то будут указания
отправителя, он также может застраховать груз от возможных рисков.
7. Мы ручаемся, что Ваш груз будет должным образом упакован, замаркирован
и погружен.
8. Не забудьте прикрепить ярлык (affix) на каждую упаковку с надписью
«Опасные грузы» в соответствии с применяемыми правилами о перевозке опасных
грузов.
9. Каждая упаковка должна иметь ясную и прочную маркировку, содержащую
имя и полный адрес отправителя и получателя.
Listening comprehension
Watch the video clip by the International Chamber of Shipping publicizing the shipping
industry.
Exercise 10. You are going to hear an extract about the world fleet.
Listen to the recording and complete the chart. Add the missing types o f ships
There is a wide variety o f merchant ships trading internationally and they fall into a
number o f categories.
Types of ships Cargo transported Cargo capacity

Container ships
Bulk carriers
Tankers
Exercise 11. You are going to hear an extract about the efficiency o f shipping. Focus on
figures.
Listen to the text and define if the following statements are true or false.
Correct the wrong ones.
Continuous improvements in technology and efficiency have made the costs o f
moving goods by sea very competitive.
1. Over the last 50 years US wholesale prices have risen by almost 700%.
2. During the same period bulk shipping costs have increased by just 70%.
9
3. Transporting crude oil from the Middle East to USA is half a cent per gallon.4
4. Shipping a can of beer from Australia to Europe costs about 10 cents.
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5. Over three fourths of world shipping tonnage is associated with energy and met
industries.________________________________________
Exercise 12. Listen to the second extract o f this part. Fill in the appropriate prepositions
As we’ve seen shipping is almost the safest and most environmentally friendly forms
of commercial transport. It was _____________ the very first industries to adopt the
international safety standards, which have been widely implemented_______________ the
International Maritime Organisation.
_____ recent years the world has seen a major shift _________ industrial
production in Asia, this has in turn brought significant improvement ______ global
standards of living. It is only the international shipping industry and the low costs and the
efficiency _______ moving goods ______ sea that has made this possible. Shipping is
indeed the life blood of global economy.
62
UNIT 11
CLASSIFICATION OF SHIPS.
KINDS OF CARGOES
Vocabulary
4 Bulk cargoes —массовые грузы
•к Crude oil carrier —судно для перевозки сырой нефти
«4- Product carrier —судно для перевозки нефтепродуктов
Gas carrier - судно для перевозки сжиженных газов
■4- Clean tanker —«светлый» танкер
'l- Dirty tanker —«темный» танкер
<4- Petrol - бензин
4 Petroleum - нефть
4 Nafta - лигроин
4 Jet fuel —топливо для реактивных двигателей
4 Gazoil —газолин, дизтопливо
4 Fuel oil - мазут флотский
4 Low sulfur - мазут сернистый
4 LSWR - восковидные осадки
4 CBFS —сажевые кормовые прибавки
4 MR Product carrier —судно для перевозки нефтепродуктов среднего размера
4 LR product carrier —океанское судно для перевозки нефтепродуктов
4 LNG (Liquefied Natural Gas) —сжиженный природный газ
4 LPG (Liquefied Petroleum Gas) - сжиженный нефтяной газ
4 Bauxite - бокситы
4 Alumina - глинозем
4 Handysize —ходовой размер
4 Chilled meat —охлажденное мясо
4 Chilled merchandize —замороженные и охлажденные продукты
4 Loose cargo —груз россыпью
4 Palletized cargo — пакетированный груз, перевозимый на специальных
поддонах
4 Pre-sling cargo- груз в стропах
4 Multipurpose ship - многоцелевое судно
4 Awkward cargo - негабаритный груз
4 Heavy cargo —тяжеловесный груз
4 Rolling cargo —колесный груз
4 Ro-Pax - грузопассажирские суда
4 Ferry - паром
4 Cargo handling gear —грузовое устройство

Cargoes transported by sea are divided into bulk cargoes and other cargoes. Bulk
cargoes are subdivided into liquid cargoes and dry ones.
Ships which carry liquid cargoes may be: crude oil carriers, product carriers,
chemical and gas carriers.
Crude oil carriers are of the following types:
63
- Рапатах (55 - 70,000 DWT) - which dimensions allow to pass through the
Panama Canal;
- Aframax (75 - 120, 000 DWT) which had to round Africa from the ports of the
Persian Gulf before the Suez Canal reconstruction;
- Suezmax (120 -200,000 DWT) which dimensions allow them to pass through the
Suez Canal after its reconstruction;
- VLCC - Very Large Crude Carrier (200 - 320,000 DWT);
- ULCC —Ultra Large Crude Carrier (320, 000 DWT —more).
Product carriers may be of various types due to the kinds of liquids they carry:
clean tankers and dirty tankers. Clean tankers carry petrol, nafta, kerosene, je t fuel, gazoil.
Dirty tankers carry fuel oil, low sulfur, LSWR and CBFS. In case of necessity after
thorough cleaning of tanks they may carry various oil products, mineral and vegetable oils.
Thus, their most important characteristics in connection with transportation are as follows:
DWT adequate to shipments (consignments) to carry, common of them are of 25-40,000
tons. The product carriers for the above consignments are called Handy (25 - 40,000
DWT). There are also Medium Range - MR product carriers (up to 50,000 DWT) and Long
Range —LR product carriers - over 50,000 DWT.
Gas carriers are called LNG - Liquefied Natural gas and LPG - Liquefied Petroleum
gas.
Dry bulk include iron ore, coal, grain, phosphates, timber, bauxite/alumina. They
are transported by bulk carriers. The latter are grouped as follows:
Handysize (10,000 - 34,999 dwt);

Handymax (35,000 - 49,999 dwt);
Panamax (50,000 - 79,999 dwt);
Capesize (80,000 -199,000 dwt).
The vessels carrying both liquid cargoes and dry bulk are called combination
carriers/combi/combiships. They may be ore/oil carrier; ore/bulk/oil - OBO carrier,
product/oil/bulk/ore - carrier - PBOBO ship.
There are other types of cargo.
1. Containerized cargoes may be general, liquid, bulk, gas. The vessels carrying
them are container ships that may be divided into
- 1st generation (400 teus - twenty feet equivalent unit);
- 2nd generation ( up to 700 teus);
- 3rd generation ( up to 3000 teus panamax);
- 4th generation (postpanamax - over 4,500 teus).
2. Refrigerated cargoes are carried by frig ships, refrigerated ships and include
chilled meat ships; ships good to carry frozen meat and fish; chilled merchandize ships;
banana ships, fruit/vegetable ships.
3. General cargoes include loose cargoes; palletized cargo; pre-sling cargo. These
cargoes are carried by multipurpose ships and general cargo vessels.
4. Awkward cargoes and heavy ones are supplied with specific cargo handling gear
and have specific construction - heavy lift ships and low-float vessels.
5. Rolling cargo —trailer, lorries, cars, trucks, vans are transported by automobile
carriers, Ro-Ro vessels, Ro-Pax and ferries.
64
1. What cargo types do you know? Give the examples.
2. What ships transport liquid cargoes?
3. What are the types o f crude oil carriers and what’s the difference between them?
4. What cargo is carried by clean and dirty tankers?
5. When are combiships used?
6. How can general cargo/refrigerated cargo/heavy cargo be transported?
Exercise 2. Match cargoes with their carriers
1. Heavy lift ships A. Fuel oil

2. OBO B. Truck, lorries
3. Clean tankers C. Alumina/ timber
4. Ro-Ro D. Ore/bulk/oil
5. Gas carrier E. Jet fuel, nafta
6. Dirty tanker F. Chilled merchandize
7. Frig ship G. LPG
8. Bulk carrier H. Derelicts and wrecks
Exercise 3. Make words from the jumbled letters and match them with the definitions
below
A BIMRTE _____________________________
В DILQIU _____________________________
C ZAMREHNECD _____________________________
D UPRETOEML _____________________________
E EPHASTOSPH _____________________________
F IBEAXUT _____________________________
G MISTHNPE1234567
1. Things for sale, goods

2. A load of goods sent together by sea, road, air
3. Wood for building
4. A mineral oil obtained from below the surface of the Earth
5. The ore from which aluminium is made
6. A substance which is not a solid or a gas, which flows, is wet and no fixed shape
7. Any of various forms of a salt, widely used in industry
Exercise 4. Fill in the gaps with a suitable word

1. The largest type of cargo ship is _____
2 . Tankers are designed to carry_______ cargo as oil.
3. The carriers which are over 500,000 DWT are known a s______________ .
4. A ______________________ ship is designed to carry both dry and liquid cargo.
5. Fruit, meat and dairy are carried in ships.
6 . Heavy cargoes are supplied w ith_ _gear.
7. Automobile carriers can carry____
65
Exercise 5. Complete the table to summarize the information
Types o f cargo Examples Type of ship

Liquid bulk
Heavy cargo
Dry bulk
Containerized
Refrigerated
General
Rolling
66
UNIT 12
INCOTERMS
Vocabulary
4 Place (port) o f destination —порт назначения
4- To amend- внести поправку
4 To reduce the risk - уменьшить (снизить) риск
4- Implementation o f the contract o f sale —выполнение договора купли-продажи
4. Transfer o f ownership —переход собственности
4- Exemption from liability —исключение из сферы ответственности
4. Duties and taxes —пошлины и налоги
4- Customs clearance costs —стоимость таможенной очистки
4 Dispatch —отправка
4 Shipper (consignor) - грузоотправитель
4 Carrier —перевозчик, транспортное агентство
4 Consignee —грузополучатель
4 Consignment - партия товара
4 Port o f shipment —порт отгрузки, порт отправления груза
4 Freight charges - расходы по фрахту; расходы по грузу
4 Over the ship’s rail —через поручни судна
4 Free alongside ship - подача к борту судна
4 FCA - франко-перевозчик
4 DAF - франко-граница; поставка на границе
4 DDP - поставка с оплатой пошлины
4 D D U - поставка без оплаты пошлины
4 DEQ - поставка с причала
4 DES —поставка с судна
4 ЕхЖ-франко-завод
4 FAS —франко вдоль борта судна
4 FOB - свободно на борт
4 CIF —стоимость, страхование, фрахт

Goods are most often carried by sea as a result of a sales contract (or sale of goods
contract) made between the seller and buyer. The contract o f carriage, which is separate,
comes about as a result of this sales contract. There is a number of persons who are involved
in transportation by sea.
Contracts for the sale of goods usually include provisions covering 3 important
points:
a) the time or circumstances of the passing o f title (ownership) o f the goods from seller
to buyer;
b) the time when payment becomes due;
c) the time when the risk (of loss or damage) passes from seller to buyer.
These points are normally addressed in international sale of goods contracts by
incorporation of one of a set of mutually-agreed standard trade terms named INCOTERMS.
Incoterms are a set of international rules for the interpretation of the most commonly
used trade terms. There are 13 main terms and several secondary terms. These denote the
points at which shipper, carrier and consignee risk and responsibility start and end.
67
This set of international rules was first published in 1936 known as “INCOTERMS
1936’ by the International Chamber of Commerce. Incoterms are amended every 10 years.
Incoterms are recognized globally by courts and other authorities. Frequently, parties
to a contract are unaware of the different trading practices in their respective countries. This
lack of knowledge can lead to misunderstanding and disputes between customer and
supplier. The incorporation of Incoterms in international sales reduces the risk.
The scope of Incoterms is limited to matters relating to the rights and obligations o f
the parties to the contract o f sale with respect to the delivery of goods sold. Incoterms deal
only with the relation between sellers and buyers under the contract of sale.
While it’s essential for exporters and importers to consider the very practical
relationship between the various contracts needed to perform an international sales
transaction - where not only the contract of sale is required, but also contracts o f carriage,
insurance and financing - Incoterms relate to only one of these contracts, namely the
contract of sale. Further, they deal with the obligations to clear the goods for export and
import, the packing of goods, the buyer’s obligation to take delivery as well as the
obligation to provide proof that the respective obligations have been duly fulfilled. Although
Incoterms are extremely important for the implementation o f the contract o f sale, a great
number of problems which may occur in such a contract are not dealt with at all, like
transfer o f ownership and other property rights, breaches o f contract and the consequences
following from such breaches as well as exemptions from liability in certain situations.
Incoterms are not intended to replace such contract terms that are needed for a complete
contract of sale.
From the top (ExW) to the bottom (DDP) in the table, the seller gathers more
responsibility and the pint of transfer of property (i.e. the right of ownership) in the
transport chain moves from the seller’s premises towards the buyer’s premises.
Seller packs and prepares goods for dispatch with delivery taking place
EXW Ex works
at his/her factory or warehouse. Buyer takes all transit risks.
Seller gives the goods to the carrier (airline, shipping company, freight
forwarder) who is named by the buyer.
FCA Free Carrier The seller will pay all the costs up to this point, including export
formalities and licenses. From this point the buyer takes the risks for
the goods and transit
Delivery occurs alongside the ship named by the buyer at the named
Free port of shipment. Buyer has the expense of loading. The seller pays
FAS Alongside costs up to and including delivery alongside the ship, including all
Ship documentation. The goods and transit risks are the buyer’s when the
goods are delivered within the period stated in the contract of sale.
Delivery takes place when goods are on board the named ship at the
Free On buyer’s named port. Seller pays all costs of loading. The buyer’s risks
FOB
Board for the goods and transit begin once the goods have been put over the
ship's rail.
Delivery has occurred when the goods are on the ship at the port of
shipment. The seller pays all the costs to this point and freight charges
Cost and to the named port of destination. He provides the buyer with the
CFR
Freight transport documentation showing freight paid to that point. The goods
and transit risks become the buyer’s when the goods have gone over the
ship’s rail at the port of shipment.
Cost, Delivery occurs as in CFR and the risks are the same, but the seller pays
CIF insurance, cargo insurance
freight
68
Delivery occurs when goods are given to the carrier (if more than one,
Carriage Paid the first carrier, or a freight forwarder). The seller pays the costs of
CPT
To
delivery to the named place and the buyer’s risks start from there
Carriage and Delivery occurs as in CPT with the buyer’s risks being the same. The
CIP Insurance only change is the exporter pays the cost of cargo insurance
Paid To
The buyer gets the goods at a named place on the frontier, cleared for
Delivered At export, but not cleared for import.
DAF The seller pays all the costs to this point, but doesn’t pay for unloading
Frontier
or import clearing charges.
Delivered Ex Buyer gets goods at the named port. He then assumes all risks, but the
DES seller pays all costs to that point, but not unloading or import clearance
Ship
Delivered Ex The buyer gets the goods on his/her quay (dock) and assumes all risks
DEQ Quay-Duty from that point. The seller pays all charges to that point including
Paid import and customs clearance costs
Buyer gets the goods at the named place in the importing country and
Delivered
DDU Duty Unpaid takes all the risks thereafter. The seller pays all costs to this point, but
not duties and taxes
Delivered Delivery happens as in DDU, with the buyer taking the same risks. The
DDP seller pays all costs to this point including duties and taxes
Duty Paid
Terms in italics are for maritime transport only. The other terms apply to all
transport modes
13 INCOTERMS are defined, which can be arranged into 4 groups: E, F, C, D
according to the seller’s basic obligations as follows:
GROUP E - where the goods are to be made available to the buyer at the seller’s
premises;
GROUP F - where the seller and buyer must deliver the goods to a carrier appointed
by the buyer;
GROUP C - where the seller must contract for the carriage of the goods without
bearing the risk of loss or damage to the goods or additional costs following shipment;
GROUP D - where the seller has to bear all costs and risks required to bring the
goods to their destination.
INCOTERMS can be further grouped into 2 basic categories: terms suitable for use
in contracts involving water transport, and terms suitable for all transport modes.12
FOR SEA TRANSPORT FOR ALL TRANSPORT

GROUP TERM TYPE MODES
ONLY
E Departure term ExW (Ex Works)
Shipment term,
FAS (Free Alongside Ship) FCA (Free Carrier)
F main carriage
FOB (Free on Board)
unpaid
Shipment term, CPT (Carriage Paid to)
CFR (Cost and Freight) CIP (Carriage and Insurance
C main carriage
CIF(Cost, Insurance, Freight) Paid to)
paid
DAF (Delivered at Frontier)
DES (Delivered Ex Ship) DDU (Delivered Duty Unpaid)
D Delivery term
DEQ (Delivered Ex Quay) DDP (Delivered Duty Paid)
1. Why is it so important to use Incoterms?

2. When was the set o f Incoterms first published?
69
3. What do Incoterms deal with?
4. Whom must they recognized by?
5. What can lack o f knowledge o f the Incoterms lead to?
6. What type o f contacts is usually required to perform an international sale transaction?
7. What are the principles o f Incoterms classification?
. Fill in the tab 'e using the information from the text
Port of
Who pays What Pays
Incoterms Destination
Buyer/Seller for
Terms of delivery
CFR
CIF
FAS
FCA
EXW
DDU
DDP
FOB
DAF
CPT
DES
CIP
DEQ
Exercise 3. Match Incoterms with their Russian explanation
INCOTERMS RUSSIAN EXPLANATION

А. Поставщик считается выполнившим свои обязательства после того,
1. FCA как товар доставлен в порт разгрузки; все дальнейшие расходы - за счет
покупателя
В. Поставщик обязан доставить товар в порт погрузки и оплатить его
2. DEQ погрузку на судно. Все дальнейшие расходы, провозная плата и риски за
счет покупателя
С. Поставщик доставляет товар на пристань в порту погрузки; с этого
3. DES момента право собственности на товар, провозная плата и риски - за счет
70
D. Продавец оплачивает товар, стоимость доставки и расходы по
4. FAS
страхованию
Е. Поставщик несет расходы по доставке товара на терминал в пункте
5. FOB отправления или до места передачи первому перевозчику
F. Поставщик предъявляет товар покупателю на пристани в порту
разгрузки; таможенная пошлина может быть оплачена как покупателем,
6. CIF так и поставщиком. Все дальнейшие расходы и риски - за счет
Exercise 4. Fill in the gaps with the missing verbs to form fixed expressions. Underline
the complete expressions. Use the appropriate form o f the verb
Contract place fulfill deliver pass clear

specify obtain carry out transfer
FOB.... Named port of shipment

The seller is considered to have_________________________his obligations as the
goods__________ for export have b een __________________ on board ship in the named
port of shipment. Risks of loss or damage to the goods________________ from seller to the
buyer when the goods have________________ the ships rail. The buyer must
______________________ at his own risk and expense import license or other official
authorization, ___________________ where applicable all customs formalities, pay all
duties, taxes and charges. He must_______________ at his expense for the carriage of the
goods. He m ust_________________ the name of the ship, date or period of delivery, point
within the port where the goods should b e _______________ to the carrier.
Exercise 5. Complete the obligations o f seller and buyer (CIF and FOB) using the
following English equivalents
At own expense proof o f delivery duties and taxes provide
goods
pay cost advise bear risk o f loss cost o f pre-shipment
expenses obtain official permission deliver goods export licence
give notice assist with port o f loading arrange
insurance in accordance with
FOB - free on board
Seller’s obligations Buyer’s obligations

\.(обеспечить товар) according to 1. Pay the price
contract
2. Assist buyer to obtain necessary export 2. (получить официальное разрешение)
licence and licence for export/import
3. (доставить товары) on board named 3. Arrange for shipment (за свой счет)
vessel at named port
4. (нести ответственность за риск 4. Take delivery at named port
потери) or damage until time of delivery
on ship
5. Pay all costs until delivery on ship 5. Bear risk of loss or damage after delivery
71
at ship side
6. (сообщить) that goods have been 6. Pay all costs after delivery including
delivered to ship duties and taxes
7. (уведомить) buyer of delivery of goods 7. Give seller adequate notice of ship and
in agreed manner (порт погрузки)
8. (оплатить расходы) of packaging, 8. Accept (доказательство поставки)
checking and marking
9. Assist with obtaining import licences and 9. Pay all costs relating to import licences,
insurance if necessary etc.
CIF - cost, insurance, freight
Seller’s obligations Buyer’s obligations

1. Provide goods ( в соответствии с) 1. Pay the price
contract
2. Obtain necessary {разрешение на 2. Obtain any import licence
экспорт)
3. Arrange at own expenses for shipment of 3. Take delivery at named port
goods to named port. (Застраховатьôf
goods
4. Deliver goods on board vessel at named 4. Bear the risk of loss or damage after
port delivery at port of shipment
5. Bear risk of loss or damage until delivery 5. Pay all costs after delivery including
on board the vessel (пошлины и налоги)
6. Pay all costs until delivery 6. Give seller adequate notice of time and
port of loading
7. Give seller adequate notice that goods 7. Accept proof of delivery
have been delivered
8. Pay costs of packaging, checking and 8. Pay (стоимость расходов до отправки
marking груза)
9. (Помочь) obtaining import licences and 9. Pay all costs relating to import licences,
insurance if necessary etc.
Exercise 5. Learn different types o f FOB and CIF. Translate the definitions from Russian
into English
FOB, stowed free on board and free stowed —FOB с укладкой

Покупатель, купив товар на условии FOB, фрахтует судно на условии ‘Free in
stowage’. Судовладелец освобождается от расходов по погрузке и укладке груза.
FOB ex stowage and trimming - FOB без укладки и штивки

Ему соответствует условие фрахтования SFree in stowage and t r i m m ing;
ship’s/charterer’s account’. Судно свободно от расходов по погрузке, но укладка и
штивка за счет судовладельца/фрахтователя.
FOB liner terms - FOB линейные условия
72
Ему соответствует условие ‘Free in liner terms’. Судно свободно на линейных
условиях - расходы по оплате погрузочно-разгрузочных работ несет перевозчик, они
компенсируются грузополучателем за счет повышенной фрахтовой ставки.
CIF Free Out (FO)

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

Организация выгрузки относится на счет судовладельца по обычаям линейного
судоходства в данном порту за счет тарифа, оплачиваемого продавцом. Условия
фрахтования LI/FO (liner in/free out) предполагает оплату расходов по погрузке
перевозчиком, а по выгрузке - грузополучателем.
Exercise 6. Which Incoterm was used in each case?

1. When we imported T-Shirts from the US, we only had to organize transportation
- the Co in NY did everything else.
2. We offered our customer in Argentina very favourable terms of delivery; he only
had to pay duty.
3. I arranged for the goods to be sent as far as the border; after that, it was up to the
importer to do everything else/
4. We didn’t have to lift a finger - the exporter did everything
5. We had to arrange insurance as well as paying to transport the last load of good
we imported.
6. I sent the importer the necessary information about the carriage charges he had to
pay, and he organized insurance and transportation himself.
7. I paid for the goods to be transported to the docks at Dover. Afterwards they
became the buyer’s responsibility.
8. I paid all costs involved in getting the goods to Portugal, but left the costs of
unloading to the importer.
9. I paid all the costs involved in getting the goods to Brazil, but the buyer took over
the risk from the time the goods were loaded onto the ship in London.
10.1 paid for the goods to be transported to Liverpool and loaded onto the ship but
that was all.
11.1 paid for the goods to be transported to the docks and loaded onto the ship. I also
agreed to pay the cost of carrying the goods across the Atlantic.
12. The importer only had to pay for the goods to be transported from Rotterdam to
his warehouse. I paid for everything else.
73
UNIT 13
CHARTERING (GENERAL)
Contract between shipowner and charterer
Vocabulary
4- Contract for carriage- контракт на перевозку
4- Contract for hire-контракт найма
4- СошесиП'уе-последовательный
4- Cargo capacity- грузовместимость
4- Subject to agreed restrictions - подлежащий договорным ограничениям
4- Manning -укомплектование личным составом
4- Repair and maintenance -ремонт и техническое обслуживание
4- Store - снабжение, предметы снабжения, запас
4- Hull and machinery /mwrcwce-страхование корпуса и машинного
оборудования
4- Cargo-handling expenses-pacxojxhi на грузовые операции
4 Pilotage - лоцманская проводка
4 Towage - буксировка
4 Stowing - укладка; размещение груза
4 Trimming- дифферентовка; распределение груза в трюме
4 Funnel - дымовая труба
4 Long-term vehicle lease contract — долгосрочный договор об аренде
транспортного средства
4 Expiry o f the charter - истечение срока чартера
4 Istallments - оплата в рассрочку
4 At the complete disposal - в полном распоряжении
4 Capital costs - капитальные затраты; затраты основного капитала
4 Insurance premium —страховая премия
4 Amalgamation - объединение; слияние
4 То demise - сдавать в аренду
4 Demise charter-party - договор фрахтования судна без экипажа
4 Box form - боксовая форма чартера

Nature of charters
A “charter” is a contract for the hire of a vessel, aircraft, bus, etc. for a specified
journey or an agreed period of time.
In a maritime context, charters include:
- contracts for carriage of specified quantities of cargo in specified vessels between
specified ports (i.e. voyage charters); and
- contracts for hire of specified vessels, including
- time charters;
- bareboat charters (also known as “demise charters”).
Nature of a voyage charter

A voyage charter is a contract for the carriage by a named vessel of a specified
quantity of cargo between named ports or places.(It may be thought of as equivalent to the
74
hire of a taxi for a single journey, or for a series of several consecutive journeys in the case
of a consecutive voyage charter).
The SHIPOWNER basically agrees that he will present the named vessels for
loading at the agreed place within an agreed period of time and following loading
(responsibility for which will be as agreed between the parties), will carry the cargo to the
agreed place, where he will deliver the cargo.
The CHARTERER, who may be the cargo owner or may be chartering for the
account of another party such as the shipper or the receiver, agrees to provide for loading,
within the agreed period of time, the agreed quality of the agreed commodity, to pay the
agreed amount of freight, and take delivery of the cargo at the destination place. In effect
the charterers hire the cargo capacity of the vessel, and not the entire vessel, and to this
extent a voyage charter agreement can be considered as the maritime equivalent of a taxi
hire agreement. (Control of the ship’s operations remains with the shipowner).
In some trades, e.g. chemical tankers, several cargo parcels carried on one voyage
may have been fixed with several different charterers.
The shipowner must provide the master and crew, act as carrier and pay all
running and voyage costs, unless the charter party specifically provides otherwise.
Taxi hire agreement Voyage charter agreement

Agreement for carriage Agreement for carriage
Of specified "load" (e.g. one person plus luggage)Of specified cargo (e.g. 20,000mt coal in bulk)
Ship to be presented at loading port between
Car to "pick up" at agreed time (e.g. 7.30 a.m.)
agreed dates (e.g. 2/6 May)
Load to be carried from agreed "pick-up" point Cargo to be carried from agreed loading port (e.g.
(e.g. 20 Station Road, Brighton) "Singapore")
To agreed "drop-off point (e.g. Gatwick Airport) To agreed discharge port (e.g. "Rotterdam")
No agreed journey duration No agreed voyage duration
Vessel owner to pay all running and voyage
Vehicle owner to pay all running and journey costs, with exception of loading and discharge
costs
costs where terms are "free in and out" (FIO)
Freight to be paid on completion of voyage
Hire charge to be paid on completion of journey (before delivery of cargo)
Nature of a time charter

A time charter is a contract for the hire of a named vessel for a specified period of
time. It may be thought of as equivalent to the hire of a chauffeur-driven car (the ship’s
crew being “the chauffeur”). The charterers agree to hire from the shipowner a named
vessel, of specified technical characteristics, for an agreed period of time, for the
charterers’s purposes subject to agreed restrictions. The hire period may be the duration of
one voyage (“д trip charter”) or anything up to several years (“period charter”).
The SHIPOWNER is responsible for vessel’s running expenses, e.g. manning,
repairs and maintenance, stores, master’s and crew’s wages, hull and machinery insurance,
etc. He operates the vessel technically, but not commercially. The owners bear no cargo
handling expenses and don’t normally appoint stevedores.
The CHARTERER is responsible for the commercial employment of the vessel,
bunker fuel purchase and insurance, port and canal dues (including pilotage, towage, etc.),
and all loading/stowing/trimming/discharging arrangements and costs. They direct the
ship’s commercial operations, but not her daily running and maintenance. The charterers
normally appoint stevedores and nominate agents.
75
There may be an agreement between the parties for an extra payment (of perhaps
several hundred US dollars) to be made by the charterers each time the ship’s crew sweep
and/or wash the holds of a dry cargo ship. Time charterers are normally allowed to fly their
own house flag and, at their own expense, paint their own colours on the funnel and/or
sides.
Chauffeur-driven car hire agreement Time charter agreement

Agreement for hire Agreement for hire
Of specified vehicle (e.g. Rolls-Royce Silver
Of specified vessel (e.g. m.v. "Carrymuch")
Cloud)
For specified purposes (e.g. to carry any non-
For specified purposes (e.g. wedding)
excluded cargoes)
For agreed duration (e.g. 24 hours) For agreed duration (e.g. 12 months)
Commencing at agreed time and place Commencing at agreed time and place
Ending at agreed time and place Ending at agreed time and place
Vehicle owner to pay all running costs (e.g. Vessel owner to pay all running costs (e.g.
maintenance, MOT tests, road tax, insurance, maintenance, surveys, lubricating oil, crew
chauffeur's wages) wages)
Charterers to pay all voyage costs during hire
Hirer to pay all journey costs during hire period
period (e.g. bunker fuel, canal and port dues,
(e.g. fuel, bridge tolls, parking fees)
loading and discharge costs)
Hire payments to be made at specified intervals Hire payments to be made at specified
in advance (e.g. monthly) intervals in advance (e.g. monthlv)
Nature of a bareboat charter

A bareboat charter (sometimes called a charter by demise or demise charter) is a
contract for the hire of a vessel for an agreed period during which the charterers acquire
most of the rights of the owners. It may be thought of as the marine equivalent of a long
term vehicle lease contract. It is most usually used on the Barecon 89 charter party form.
It’s used by owners such as banks and finance houses who are not prepared to
operate or manage ships themselves.
It’s often hinged to a management agreement (e.g. where an oil company bareboat
charters a tanker from an independent tanker owner but agrees that the owners will manage
the ship on the oil company’s behalf during the charter period).
Hire payments may include installments o f the purchase price, and transfer of
ownership may follow the final installment.
In essence the vessel owners put the vessel (without any crew) at the complete
disposal of the charterers, and pay the capital costs, but usually no other costs. The
charterers have commercial and technical responsibility for the vessel, and pay all costs
except capital costs.
“The Barecon A” form, under which the owners bear responsibility for insurance
premiums, was designed for short-period chartering (e.g. the summer hire of a passenger
vessel).
“The Barecon B” form was designed as a long-period financial type of contract,
mainly for newbuildings although it can be modified for second-hand tonnage. The
charterers are responsible for insurance premiums.
“Barecon 89” is an amalgamation of the “Barecon A” and “Barecon B” forms
designed to reflect the growing use of bareboat charter registration, (see annex 3, 4)
76
Vehicle lease agreement Bareboat charter agreement
Agreement for hire Agreement for hire
Of specified vehicle (e.g. Jaguar XJS) Of specified vessel (e.g. m.v. "Carrymuch")
For agreed duration (e.g. 12 months) For agreed duration (e.g. 10 years)
Commencing at agreed time and place Commencing at agreed time and place
Ending at agreed time and place Ending at agreed time and place
Vehicle owner to pay capital costs (e.g. to car Vessel owner to pay capital costs (e.g. to
maker) shipbuilder)
Hirer to pay all other costs during hire period Charterers to pay all other costs during hire period
Hire payments to be made at specified intervals in Hire payments to be made at specified intervals in
advance (e.g. monthly) advance (e.g. monthly)
The “Gencon” universal established by BIMCO 1994 is used in geographical
directions to transport the cargoes in case there are no requirements to conclude specific
charter-parties (see annex 5).
It’s useful to consider certain terminology it contains to clearly understand the
provisions of the Contract of Transportation by Sea as well as the above mentioned specific
charter-parties.
PORT is an area within which ships are loaded with and/or discharged of cargo and
includes the usual paces where the ships wait for their turn, no matter the distance from the
area.
SAFE PORT is a port which during the relevant period of time the ship can reach,
enter, remain at and depart from without being exposed to danger which can’t be avoided by
good navigation and seamanship.
Ports may be defined as follows:
LOADING PORT
PORT OF SHIPMENT ' Порт погрузки, порт отправки
PORT OF DEPARTURE -
PORT OF DISCHARGE "I

i- Порт выгрузки, порт назначения
PORT OF DESTINATION]
PORT OF TRANSSHIPMENT 1
^ Порт перевалки, транзитный порт
TRANSIT PORT
REGISTER PORT Порт регистрации
PORT OF REFUGE Порт-убежище, порт вынужденного захода
They are subdivided into:
BASE PORT Базовый порт, обязательный порт захода

OPTIONAL PORT Факультативный порт
OUTPORT Порт, в котором грузы доставляются с перевалкой в
77
базовом порту
AVANPORT, OUTERPORT Аванпорт, находящийся на более глубоком месте, чем

основной
INTERMEDIATE PORT Промежуточный порт
FREE PORT Свободный порт, порто-франко —порт

беспошлинного ввоза
DEEP WATER PORT Глубоководный порт
SHALLOW PORT Порт с недостаточными глубинами
UNFROZEN PORT Незамерзающий порт
NORTHERN RANGE PORT Северо-Атлантический рейндж США (Portland,

Boston, Norfolk)
CONTINENTAL PORT Континентальный порт (Hamburg, Bremen, Antwerp,

Rotterdam, Havre)
The ports and berths may be defined when negotiating the C/Ps terms using abbreviations as
follows: g s a a p b - good, safe, always afloat, always accessible port/berth.
If the loading/discharging berth is not available when the vessel has arrived (on the
vessel’s arrival) at the port, the vessel is entitled to give notice of readiness {whether in
berth or not, WIBON), whether in free practice or not (WIFPON), whether customs
cleared or not (WICCON), provided that the master warrants that the ship is in fact ready in
all respects.
Free practice /pratique (свободная практика - это разрешение на сообщение с
берегом и на производство коммерческих операций, включая допуск судна к грузовым
операциям).
Certificate of free pratique is a certificate from the port health authorities that the
ship is without infectious disease or plague on board and therefore permitted to enter port
and to allow people to board and disembark. One of the conditions that must be met before a
ship is considered to be "ready" to load or discharge and thus to allow laytime to commence
is that it must be "legally ready". This includes permission from the port health
authorities.Free pratique can be obtained in advance of the ship's arrival by the port agent,
and communicated to the ship by telecommunication . When the vessel arrives, the master
may have to prepare and issue a "Maritime Declaration of Health".
78
CERTIFICATE OF "PRATIQUE'
BY CUSTOMS OFFICER
(1)Master's name I hereby certify that I have examined (1).

..JAMES... ARTHUR GREENWOOD
(2) Ship's Name
(3)Port where voyage Master of a ship called the (2)
commenced .......................................... "FORESTER”...
(4)"Verbal" or "written" lately arrived from (3).TAKORADI ............
as the case may be and that it appears by the (4)written............
answers of the said Master to the
questions put to him that there has
not been on board during the voyage
any infectious disease demanding
detention of the ship by the Customs
authorities and that she is free to
proceed.
Given under my hand at LONDON
This certificate, issued by the this 12 th day of April

Customs authorities, does not 19 73
exemnt the shin from any (Signed) A.Williamon*123
requirement which may be made by
the Medical Officer of the Health
Authority under the Law in that
respect. Preventive (or other responsible)
Officer of Customs and Excise
The documents to be issued by the vessel when in the port:

1. Statements of Facts. SOF (Акт стояночного времени. Документ
отражает учет стояночного времени, деятельность судна с момента швартовки к
причалу до окончания грузовых операций и оформления грузовых документов).
This is the document attached to a record of calculation of laytime used (the
"Timesheet") and is a record of the events that can affect the counting of laytime. In some
calculation forms, the Statement of Facts could be part of the Timesheet, preceding the
columns in which the periods for loading, discharging, shifting, inclement weather, other
excepted periods and tendering of Notice of Readiness etc., are noted.
Shipowners and charterers may use their own forms of SOF and Timesheets. However,
BIMCO publishes standard forms, (see annex 12)
2. Time sheet (Таймшит. Документ составляется на основе акта
стояночного времени и используется для суммирования сталийного времени и
определения демереджа ши диспача).(see annex 14)
3. Disbursement Account (Дисбурсментский счет. Документ, содержащий
перечень понесенных судном расходов, связанных с его обслуживанием в порту).
Disbursements cover all payments made by the ship’s agents for port charges, stevedoring
79
expenses, tug hire, customs fees, stores, bunkers, water, etc., on behalf of owners. The
agents may charge a certain disbursements’ commission on such advances, e.g., 2 per cent,
(see annex 11)
CONTRACTUAL RELATIONSHIPS RELATED TO THE SHIP'S EMPLOYMENT

In connection with the ship’s employment contractual relationships will exist between:
1. The ship’s OWNER and SHIP MANAGER employed (a ship management
contract)
2. The ship’s OWNER, MANAGER or OPERATOR and any CHARTERERS
(Charter party)
3. The HEAD CHARTERER and any SUB-CHARTERER (Charter party)
4. The ship’s OWNER, MANAGER or OPERATOR and SHIPBROKER who fixes
the ship’s employment
5. The BUYER and SELLER of each consignment of goods carried on board (sale of
goods contract)
6. An EXPORTER and any FREIGHT FORWARDER hired to arrange for the
delivery of goods
7. The LEGAL CARRIER and each SHIPPER of goods on board (contract of
carriage)
8. The ship’s OWNER, MANAGER or OPERATOR and each PORT AGENT
appointed by him
9. The ship’s OWNER, MANAGER or OPERATOR and various other parties whose
services are used during a voyage such as CHANDLERS, EQUIPMENT SUPPLIERS,
REPAIRERS, TUGOWNERS, PILOTAGE AUTHORITIES, PORT AUTHORITIES,
STEVEDORING COMPANIES, etc. (contract for services)
10. A SHIPOWNER and each PASSENGER (contract of passage).
1. What does a charter include?

2. What are the liabilities o f a shipowner according to a voyage charter and a time
charter? Define the difference.
3. What are the liabilities o f a charterer according to a voyage charter and a time-charter?
Define the difference.
4. What is a bareboat charter?
5. What is the difference between the Barecon forms?
6. What documents should be issued in the port?
Exercise 2. Complete the chart. Tick the applicable criteria

Criteria Time charter Voyage charter Bareboat charter
Limited period of time
Long-term lease contract
Charterer’s responsibility
for commercial employment
Shipowner’s responsibility
for running costs
Charterer’s responsibility for
insurance premiums
Charterer’s responsibility for
commercial and technical
employment
80
Exercise 3. Match words from box A with words from box В to make business terms.
Then use the terms to complete the sentences below
А В
Shipping bulk risks waybill
Charter delivery note party
Air all agent note
Forwarding shipping mark carrier
1. Packing and shipment will be arranged by our________________ .

2. The freighter Narvik is a __________________ with a cargo capacity of 6 000 tons.
3. When you have confirmed the charter, we will send you t h e _________________ for
signature.
4. Before signing th e __________________ , please check that the consignment has arrived
undamaged.
5. The cost of freight London Heathrow - Dubai is $ 10.00 per kilo, plus $ 8.00
, and $ 60.00 customs clearance and handling.
6. Please would you arrange insurance cover for $100,000
against______________________ .
7. Enclosed you will find our standard_____________________ and bill of lading.
8. The____________________________on the sides of the crates should correspond with
the one on your shipping documents.
Exercise 4. Read “Gencon ” charter. Fill in the gaps using the corresponding Russian terms
and match them with the given English ones
1. Судовой брокер
2. Название судна
3. Дедвейт в тоннах
4. Дата канцелинга
5. Брокерская комиссия и кому оплачивается
6. Стоимость погрузки/выгрузки
7. Ставка демереджа (погрузка и выгрузка)
8. Грузоотправитель
9. Позиция судна в настоящее время
10. Сталийное время (за погрузку; для выгрузки; общее сталийное время)
11. Оплата фрахта (валюта, метод оплаты, бенефициар и банковский счет)
12. Валовая/чистая грузовместимость
13. Ожидаемая готовность в погрузке
14. Порт/место погрузки/выгрузки
15. Груз (кол-во груза и марджин судовладельцев; если полный груз не согласован,
указать «часть»)
16. Ставка фрахта (оплата по выгруженному или коносаментному количеству)
17. Согласованные дополнительные статьи, предусматривающие специальные условия
81
1. Shipbroker 2. Place and date
3. Owners/Place of business (Cl. 1) 4. Charterers/Place of business (Cl.l)
5. Vessel's name (Cl. 1) 6. GRT/NRT (Cl.l)
7. Deadweight cargo carrying capacity in 8. Present position (Cl.l)

tons (Cl. 1)
9. Expected ready to load (Cl. 1) 10. Discharging port or place (Cl.l)
1 1. Loading port or place (Cl. 1)
12. Cargo (also state quantity and margin in Owners’ option, if agreed; if full and
complete cargo not agreed state “part cargo”) (Cl. 1)
13.Freight rate (also state if payable on 14. Freight payment (state currency and
delivered or intaken quantity) (Cl. 1) method of payment; also beneficiary and bank
account)
15. Loading and discharging costs 16. Laytime (if separate laytime for load.and
disch. is agreed, fill in a) and b)
17. Shippers (state name and address) (Cl.6) 18. Demurrage rate (load. And disch.) (Cl.7)
19. Cancelling date (Cl. 22) 20. Brokerage commission and to whom
payable (Cl. 25)
21. Additional clauses covering special provisions, if agreed
It is mutually agreed that this Contract shall be performed subject to the conditions
contained in this Charter which shall include Part I, as well as Part II. In the event of
a conflict of conditions, the provisions of Part I shall prevail over those of Part II to the
extent of such conflict.
Signature (Owners) Signature (Charterers)
Fill in the gaps using the corresponding Russian terms and match them with the given
English ones
82
1. 2.
3. 4.
5. 6.
1. 8.
9. 10.
11
12
13 14
15 16
17
18
19 20
21
Взаимно согласовано, что договор будет выполнен в соответствии с условиями,

содержащимися в этом чартере, который включает как ч.1, так и ч.2. В случае
противоречия условий условия ч.1 превалируют над условиями ч. 2 в объеме этого
противоречия
Подпись (Судовладельцы) Подпись (Фрахтователи)
Exercise 5. Translate fro m English into your native language

There are some conditions that might make a port unsafe within the meaning of a
charter party. They are: inability of the ship to reach, stay at or leave a loading berth safely
83
for some reason, e.g. insufficient depth of water, berth obstructions, ice, war, general strike,
and quarantine restrictions. If a chartered ship goes alongside a berth at which the ship gets
damaged, whose liability is it - owners’ or charterers’? Damage done to either ship or quay
at an unsafe berth is usually owners’ liability, not charterers’ (although some courts have
held the reverse to be the case). It is always best to assume that the shipowner will be
liable.

1. Договор морской перевозки, самой распространенной формой которого
является чартер-партия, предусматривает перемещение груза перевозчиком по
договоренности с грузовладельцем (фрахтователем).
2. Стороны берут на себя следующие обязательства:
Перевозчик обязуется за обусловленную плату (фрахт) принять от
фрахтователя (грузоотправителя) на борт судна груз, доставить его в сохранности в
согласованное сторонами место назначения и сдать его фрахтователю или
грузополучателю.
3. Фрахтователь обязан в пункте отправления своевременно предоставить
обусловленный груз для погрузки его на судно, принять этот груз в пункте
назначения и уплатить фрахт за перевозку.
4. В договоре морской перевозки указываются права и обязанности сторон,
различные условия, связанные с погрузкой, перевозкой и выгрузкой груза. В чартер-
партии указаны страна, порт погрузки и выгрузки груза, количество и название груза,
ставка фрахта и общая сумма фрахта.
5. Если причал погрузки/выгрузки не предоставлен по прибытии судна в порт,
судно вправе подать нотис о готовности. Это не зависит от предоставления ему права
свободной практики и прохождения таможенной очистки. Капитан гарантирует, что
судно действительно готово во всех отношениях.
6. Свободная практика - это разрешение на сообщение с берегом и на
производство коммерческих операций.
84
UNIT 14
CHARTERING (GENERAL)
Sub-charters
Vocabulary
4 To sub-let —сдать судно в субчартер
4- Disponent owner- распорядитель
•4- Contract o f affreightment (COA) —фрахтовый контракт
*4 Cargo order - грузовой ордер
4- Position list- позиционный лист
4- Open date - открытая дата
4 - On subject - предметно
4 Rider clause- дополнительные пункты (положения) контракта
4 Subject stem - постановка судна под погрузку в порядке очередности
4 Fixture - фрахтовая сделка
4 То remunerate —компенсировать
4 Brokerage- комиссионное вознаграждение
4 То stipulate - оговаривать
4 Deadfreight —мертвый фрахт
4 Demurrage- плата за простой судна, демередж
4 Hub o f the community —центр сообщества
4 The Baltic Exchange — Лондонская фрахтовая биржа (по морским и
воздушным перевозкам)
4 То abide( by) —соблюдать
4 Coasting broker —каботажный брокер
4 Gross receipts —валовый приход
4 Range - рендж, зона или отрезок между определенными портами
It is common for the terms of both time and voyage charters to permit the charterers
to sub-let the vessel in whole or in part, on condition that the head charterer remains
responsible to the shipowner for the performance of the original charter. It would be
possible, therefore, for a vessel to be:
1. owned by a bank or finance house;
2. leased or bareboat chartered to Co A;
3. time - chartered from Co A by Со В;
4. voyage - chartered from Со В by Co C;
5. employed by Co C in its own liner service, or even sub-chartered from Co C by
Co D.
Any reference in a charter party to a “disponent owner” refers to the time or bareboat
charterer of a sub-let vessel, who assumes, in relation to the sub-charterer, the
responsibilities of a real owner.
85
owned
Bank ----------------► Со A ---------------- ► Со В ----------------► Со С CoD
Bareboat- time- voyage- sub
chartered chartered chartered chartered
Figure 1
Contracts o f affreightment (COA)
In modem shipping practice, a contract o f affreightment is essentially a contract to
satisfy a long-term need for transport, most often for iron ore and coal in bulk. The owners
agree to transport an agreed volume of cargo over a specified period.
The charterers nominate cargoes loading dates.
The owners nominate suitable vessels.
A COA may be based on a standard Charter party as the main COA document with a
number of rider clauses added, or on a main COA document supplemented by separate
charter parties relating to each voyage made under the COA.
Fixing o f Ships on Charter

Shipbrokers
Ships are normally “fixed” on charters arranged between the shipowner and charterer
by shipbrokers acting as negotiators for the two parties. Shipbrokers include:
- Owners’ brokers, who find and arrange employment for their principals ships;
- Charterers’ brokers (or “chartering brokers”) who find ships to carry out their
principals requirements;
- Tanker brokers, who arrange oil cargo fixtures in the specialist tanker market;
- Liner brokers and liner agents who find cargoes for liner owners and operators;
- Coasting brokers, who work in the short sea market and often combine the
functions of owners’ and charterers’ brokers;
- Ships’ agents, who are employed by shipowners and charterers to service their
vessels’ needs in ports;
- Sale and purchase brokers, who buy and sell ships and can, if required, arrange
newbuilding contracts for their principals.
Many shipbrokers are self-employed, while others work in large firms active in several
of the above disciplines.
The chief stages in the fixing process are

1. Circulation by the charterers’ broker of “cargo orders”, outlining charterers’
forthcoming cargo transportation requirements.
2. Circulation by the owners’ broker of ‘‘position lists” or ‘‘tonnage lists”, detailing
expected “open ” dates and positions of available ships.
3. Study of market reports by brokers.
4. Negotiations on main terms between brokers on behalf of their respective
principals, with offers and counter-offers by either side; if main terms cannot be resolved
there is little or no point in negotiating further details.
86
5. Negotiations “o« subjects”, e.g. “subject stem ”, “subject receiver's approval”, etc.
where the main terms have been agreed, but final agreement is subjecLto various secondary
conditions being agreed.
6. “Fixture”, i.e. the full and final agreement, with all “subjects” removed.
Following fixture is a “post - fixture” or follow-up period during which the broker
may undertake various administrative functions on behalf of his principal, such as (in some
cases) collection of freight or hire.
Shipbrokers are remunerated by commission called “brokerage”, payable by the
shipowner to each broker involved in arranging a contract. In voyage or time charters the
brokerage payable is stipulated in a Brokerage Clause and is normally 1.25 % of the
shipowner's gross receipts from hire, freight, deadfreight and demurrage, payable to each
broker involved.
The professional body for shipbrokers worldwide is the London-based Institute o f
Chartered Shipbrokers, whose motto is “O ur W ord, O ur Bond”.
London is the hub o f the international shipbroking community, and many individual
brokers and broking firms are members of the Baltic Exchange, which is a self-regulated
shipbroking marketplace. The activities of its members, who are mostly shipowners, cargo
interests and shipbrokers, include the matching of bulk ships and bulk cargoes, and the sale
and purchase of ships. Baltic Exchange members undertake to abide by a strict code of
business practice, enshrined in the famous Baltic motto “Our Word, Our Bond”.
The Baltic's membership includes shipbrokers of all types as well as non - trading
individuals such as maritime lawyers, insurers, financiers, classification societies and
consultants.
1. What’s the main condition o f subletting a vessel?

2. What’s COA based on?
3. What’s COA used for?
4. What’s the difference in brokers ’ responsibilities?
5. What are the brokers ’ terms o f payment?
6. What are the main spheres o f interest o f the Baltic Exchange?
7. How can you explain the meaning o f the motto “Our Word, Our Bond”.
Exercise 2. Match terms with their definitions
1. Affreightment A. Insurance policy for loss of cargo

2. Clean charter B. Missing cargo (-items)
3. Demurrage C. Bareboat Charter^vessel chartered without crew)
4. Dead freight D. Charter Party
5. Demise charter E. Charter without unusual conditions
6. Freight policy F. All expenses for the account of shipowner
7. Gross charter G. Delaying of a ship and consequent compensation-payment
when loading or discharge-times have been exceeded
1 2 3 4 5 6 7
87
Exercise 3. Read “Gencon” Charter. Translate the main clauses
Adopted by the RECOMMENDED.

Documentary
Committee of the Issued to some into force for fixtures on and after 15th September. 1922.
Chamber of Shipping of The Documentary Council of The Baltic &White Sea Conference,
the UNIFORM GENERAL CHARTER.
United Kingdom AS REVISED 1922. (Only to be used for which no approved form is in
force).
CODE NAME
GENCON
I. IT IS THIS DAY MUTUALLY

Owners
AGREED between............................................................................
Owners of the steamer or motor-vessel................................................

Position of......tons gross/nett Register and carrying about tons of deadweight
cargo, now..........................................................................................
and expected ready to load under this Charter about............................
Charterers and Messrs.........................................................................................
Where to That the said vessel shall proceed to....................................................

load
or so near thereto as she may safely get and lie
always afloat, and there load a full and complete cargo (if shipment of
Cargo deck cargo agreed same to be at Charterers' risk) of..............................
Destination (Charterers to provide all mats and/or wood for dunnage and any
separations required, the Owners allowing the use of any dunnage wood on
board if required) which the Charterers bind themselves to ship, and being
so loaded the vessel shall proceed to.....................................................
as ordered on signing Bills of Lading or so near thereto as she may safely

get and lie always afloat and there deliver the cargo on being paid
Rate of freight—on delivered/intaken quantity—as follows
freight
(idunnage - сепарационный, прокладочный и подстилочный материал для

укладки груза в трюме, деннаж)
88
Exercise 4. Read the enquiry about freight rates. Answer the questions. Translate into
your native language___________________________________________________________
Dear Sirs
Please quote us your most favourable freight rates fo r the transport o f 50 tonnes of
palletised house bricks, net weight 1 tonne per unit, fo r shipment from Southampton to
Tunis in the first two weeks o f December.
Please quote us assuming delivery FOB Southampton stating details o f shipping
commission and any further charges.
Yours faithfully__________________________________________________________
1. What is the name of the consignment?

2. What is the route?
3. What terms is the shipping company interested in?
Exercise 5. Fill in the gaps using the following words and phrases to complete
the “Re-chartering”from the Charterparty
Rate offreight(2) fulfillment option prejudiced)
sub-let signed responsible
The Charterers shall have the________________ to re-charter

or_____________ (wholly or partly) the vessel at
any_____________________________without _______________________to this
Charterparty and the Bill of Lading shall be __________ at any
____________ without ____________________ to this Charterparty, but the
Charterers shall always remain ______________ to the owners for
due__________________ of this Charterparty.
(from Timber Charterparty)
Exercise 6. Translate the article from Uniform Time Charter

1. Фрахтователи имеют право сдать судно в субчартер, известив об этом должным
образом судовладельцев, но первоначальные фрахтователи всегда остаются
ответственными перед судовладельцами за должное выполнение данного чартера.
2. Судовладельцы несут ответственность за утрату или повреждение груза или за
задержку в доставке груза только в случае, если эта утрата, повреждение или
задержка были вызваны неправильной или небрежной укладкой груза.
3. Судно имеет право захода в любой порт в любой последовательности для любой
цели, следовать без лоцманов, буксировать, а также отклоняться от пути следования с
целью спасания жизни или имущества.
Exercise 7. Read the Standard Bareboat charter. Answer the following questions (see
annex 3, 4)
1. What countries are owners and charterers from?
2. What is the country of the Bareboat Charter Registry?
3. What is the precise information about the vessel?
4. What details of chartering are mentioned in the document?
5. Is there any brokerage commission?
89
UNIT 15
VOYAGE CHARTER AGREEMENTS
Part 1
Vocabulary
■4- Voyage charter party —рейсовый чартер
4 To be seaworthy - обладать хорошими мореходными качествами
<4- Warranty o f seaworthiness —гарантия мореходности
4 То exercise due diligence —проявлять должное прилежание, исполнение
обязанностей
<4- Want (lack) o f due diligence - отсутствие должного старания, прилежания
«4 Loadline грузовая марка
-
4- Peril o f the voyage - опасность морского предприятия

4 Cargoworthy —приспособленный для перевозки конкретного груза
4»- Intaken weight o f cargo - количество груза, взятое на борт
4 Outturn weight - вес груза, установленный после его выгрузки с судна
4 » Lumpsum freight - твердая сумма фрахта, люмсум, аккордный фрахт
4 Bill o f lading freight - фрахт по коносаменту
4 - Advance or pre-paid freight - аванс фрахта
4 Pro-rata freight - фрахт пропорционально пройденному пути,
дистанционный фрахт
4 Ad valorem freight - фрахт, исчисленный со стоимости груза
4 То evaporate - испаряться
4 A grab - грейфер, ковш
4 Refundable - возмещаемый
4 Negotiable B/L - оборотный коносамент
4 Over-carrying —завоз груза в другой порт (по недосмотру)
4 Short-shipped - недогруженный
4 Detention - сверхконтрсталия, простой судна сверх обусловленных дней, за
которые выплачивается демередж
4 То waive the right -отказаться от прав
Exercise 1. Read the text. Learn the name o f the clauses and their Russian equivalents.
Voyage charter party clauses
A general purpose dry cargo voyage C/P will usually incorporate clauses covering
the basic provisions tabulated below.
The provisions may be expressed in different C/Ps by clauses bearing different
names, or by numbered clauses with no names. Rider clauses, as agreed upon the parties,
will generally be appended to the standard clauses.
90
Name of
Matters covered in clause
clause
Preamble Identity of parties; identity of vessel; warranty of seaworthiness; present position;
Преамбула expected date of readiness to load; obligation to proceed to loading port; identity
of and safety of loading port; amount and nature of cargo; obligation to proceed to
and identity of discharge port; obligation to deliver cargo
Owner’s Responsibility of owners for loss of or damage to goods or delay in delivery of
Responsibility goods; exclusion of owner’s liability for loss of or damage to goods or delay in
Ответствен delivery of goods
ность
владельца
Deviation Liberty of vessel to call at ports in any order; liberty of vessel to tow and assist
Отклонения vessels; liberty of vessel to deviate for purpose of saving life or property
от курса
Freight Rate and amount of payment of freight
Фрахт
Laytime Duration of laytime allowed; exceptions to laytime; commencement of laytime
Сталийное and manner of tendering of notice of readiness
время
Demurrage Duration of demurrage allowed; whether demurrage allowed at loading and/or
Демередж discharge ports
Lien Whether the owners are to have a lien on cargo for freight, deadfreight, demurrage
Залоговое and/or damages for detention; whether the charterers are to be responsible for
право freight and demurrage, etc..incurred at the discharge port
Bills o f Lading Master’s obligation to sign bills of lading
Коносамент
Laydays and Laydays; canceling date; conditions under which charterers have option to cancel
Cancelling charter; charterers’ obligation to declare intention to exercise option to cancel, if
Сталийные applicable
дни и
канцелинг
General Rules under which any General Average is to be settled; obligation of cargo
Average owners to pay cargo’s share of General Average expenses
Общая
авария
Agency Owner’s (charterer’s) obligation to appoint agents at loading and discharge ports
Агент
Brokerage Amount of brokerage commission due and party to whom payable
Брокерская
комиссия
Strikes Allocation of responsibility for consequences of strikes or lock-outs preventing
Забастовки fulfillment of obligations
War Risks Liberty of owner to cancel charter in event of outbreak of war; liberty of master to
Военные sail from loading port before completion of loading in event of outbreak of war
риски
91
Ice Liberties of master in event of inaccessibility of, or threat of trapping at, loading
Ледовые and/or discharge ports due to ice
условия
Clause
Paramount
Оговорка Identity of liability regime applying to bills of lading issued
Парамаунт
New Jason
Clause
Новая Protection of owner against US lawsuits where General Average is to be adjusted
in accordance with US law
оговорка
Джейсона
Both to Blame
Collision
Clause
Оговорка о Protection of owner against US lawsuits in collision cases
взаимной
ответствен
ности при
столкновени
и
Law And
Arbitration
Законодател Jurisdiction to which any dispute will be referred; place of any arbitration;
appointment of arbitrators
ьство и
арбитраж
Warranty of seaworthiness
Unless a contract of carriage by sea has an express provision concerning
seaworthiness, the absolute (common law) obligation, known as the warranty o f
seaworthiness, is implied in the contract.
In a charter party the absolute warranty of seaworthiness is usually moderated,
however, to an undertaking that the shipowner or carrier will only exercise due diligence to
make the vessel seaworthy before sailing.
For a shipowner or carrier to exercise due diligence he must:

1) Make a reasonable and careful inspection and perform maintenance of the vessel in
accordance with the custom of the trade;
2) Do this before the commencement of the voyage.
Due diligence is a clause that implies that “The carrier shall properly and carefully
load, handle, stow, carry, keep, care fo r and discharge the goods carried’’.
Exercising due diligence to ensure that a vessel is seaworthy would therefore mean,
for example, ensuring that:
- class surveys and statutory safety construction, equipment and loadline surveys are
carried out and passed in accordance with current requirements (i.e. the vessel is technically
seaworthy);
92
- the cargo spaces are fit for the reception and carriage of the cargo and that the
:argo is properly loaded and stowed taking into account the expected perils o f the voyage
ithe vessel is “cargoworthy”) ;
- the vessel is properly equipped and supplied for the expected duration of the voyage
in terms of sufficient competent crew, navigational equipment and supplies stores,
provisions and spares, bunker fuel, fresh water, etc. (“fittedness fo r the voyage”).
Owners' Responsibility Clause

is a BIMCO (Baltic and International Maritime Conference has an international
membership of shipowners, shipbrokers, agents and P&I Clubs) clause that states the
conditions under which the owners will be responsible for loss, damage or delay of the
goods, to the exclusion of all other causes.
Owners will usually accept liability only
- where the loss, damage or delay has been caused by the improper or negligent
stowage of the goods (unless the stowage is performed by shippers or charterers or their
stevedores or servants);
- by personal want o f due diligence on the part of the owners to make the vessel in
all respects seaworthy and to secure that she is properly manned, equipped or supplied.
Freight Clause
specifies the freight rate, how freight will be calculated, when it must be paid and the
arrangements for payment. Details of bank accounts may be in a separate document annexed
to the C/P.
Freight is the remuneration payable by the charterers to the owners for the
performance of the contract. It may be called charter party freight in the contract.
FREIGHT IS PAID FREIGHT IS NOT PAID

1. is payable in US dollars in the deep-sea trades, but 1. is not paid unless the entire cargo
may be payable in local currency in short-sea trades. reaches the agreed destination, even
2. must be paid, under common law, and in the if not the carrier's fault, e.g. if the
absence of any term to the contrary, on delivery of voyage is abandoned after a General
the cargo to the consignee or his receiver at the Average act. (The owners usually
agreed destination. protect themselves by insuring
3. is normally paid in accordance with the term of a against possible loss of freight, so
“Freight Clause” which stipulates the amount of that in case of General Average the
freight, the time for payment and the method of loss of freight insurers become a
payment. party to the “common maritime
4. is often paid under C/P terms partially in advance, adventure”)
e.g. on loading, or on the issue of Bs/L. 2. is not paid where the owners have
5. may depend on amount of the intaken weight o f breached the contract. When cargo is
cargo, or (less commonly) on the outturn weight, the delivered damaged, however, full
cargo volume, cargo value. freight is normally payable and a
6. is payable in advance, is collected by the agent at separate claim is presented by the
the loading port before issue of Bs/L marked cargo owners for the damage.
“Freight Pre-Paid". 3. is not payable on delivery if the
7. if payable on delivery of the goods, is collected goods have lost their “specie”, i.e.
from the consignee or his receiver by the port agent changed their physical nature.
on the first presentation o f an original B/L.
93
Freight may be of the following kinds: ordinary or charter party freight (described
above); lumpsum freight; bill o f lading freight; advance or pre-paid freight; pro-rata
freight; or ad valorem freight.
1. Lumpsum freight
- is a fixed sum payable irrespective of the amount of cargo carried. The owners
guarantee a specified cargo capacity for charterers’ use
- is useful in “mixed cargo” charters where cargoes are of varying densities
- is more common in the tanker trades than in dry cargo trades
2. Bill o f Lading freight

- is freight calculated on shipped or intaken weights, as stated in a bill of lading
- is used in trades where intaken and outturn weights are likely to differ, e.g. where:
oil evaporates during the voyage;
ice melts on timber after loading;
grabs can’t discharge all of a cargo;
- is the usual type of freight stipulated in tanker charter parties;
- may be payable in advance or at destination.
3. Advance or prepaid freight

- is often demanded by carriers of dry cargo, and is the usual type of freight in the
liner trades.
- may be the TTL freight or an agreed proposition of it, payable in advance at the
loading port, the balance being payable on delivery of the cargo
- is deemed to be earned as the cargo is loaded
- is not refundable if the vessel and cargo are lost
- is commonly required where cargo is shipped under a negotiable B/L, as buyers of
goods covered by a Bill of Lading often require a “freight paid” B/L.
4. Pro-rata freight
- is payable in common law where only part of the voyage has been completed, e.g.
when the voyage is abandoned following an outbreak of war or an accident, and the cargo is
discharged at an intermediate port, or if the vessel had to leave port because of the onset of
ice.
- is not “freight” in the normal sense, but the shipowner's compensation for carrying
the goods at least part-way to their destination.
5. A d valorem freight
- is freight charged at a rate stated as a percentage of the value of a shipment, usually
of high - value goods.
- is one on which the value of the cargo is recorded, and under which the carrier
waives his right to limit his liability to the goods owner under the package limitation
provisions in the contract, usually in return for the higher ad valorem freight.
- P&I clubs do not normally cover owners for liabilities in connection with high-
value cargoes, and owners must usually make other insurance arrangements.6
6. Back freight
- is freight paid by a shipper for the return carriage o f goods not delivered to or not
accepted by their receiver or consignee.
94
- is normally not mentioned in C/P terms.
If the non-delivery or no-acceptance was the vessel's fault (e.g. due to over-
carrying), no back-freight will be payable.
7. Deadfreight
is not genuine freight, but owner's compensation for lost freight, payable by the charterers
on a quantity of cargo short-shipped, i.e. a quantity which he agreed, but failed to load. For
example, if the C/P agreement was that the charterers would load 70,000 tonnes of wheat,
but he loaded only 60,000 tonnes, the shipowner will claim deadfreight on 10,000 tonnes at
the agreed rate of freight. (Some shipowners place deadfreight claim forms on board, on
which the master quantifies the amount short-shipped).
1. Who is responsible fo r seaworthiness o f a vessel?
2. Explain the difference between “cargoworthy ” and “seaworthy ”.
3. What are the freight terms o f payment?
4. What measures should be taken while breaking the contract by the owners?
5. What does “Exercise due diligence ” mean?
6. What types o f freight do you know?
7. What are the distinguishedfeatures o f freight types?
Exercise 2. Find the nouns in the text to complete the following collocations (different
variants are possible). Use them in your own sentences______________________________
VERBS NOUNS
To equip A vessel
To supply
To carry out
To damage
To perform
To calculate
To stipulate
To specify
To abandon
To breach
To collect
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To remunerate
Exercise 3. Complete the freight offer with the proper prepositions. Translate into your
native language_______________________________________________________________
Dear Sir
Thank you _____ your enquiry regarding the transport ______ 50 tonnes _____
palletized house bricks. Our offer is as follows:
M. V. M A N H A TTA N _____$ 50per metric
tonne or 10 cubic metres, at steamer's
option, _____4 laydays
As can be seen the enclosed sailing card, the vessel is currently located in
Marseille and is due ______ dock ______ Southampton _______ November 30 .
Loading will commence ________ December 1st ________ an additional charge
______$250____ every day o f demurrage.
I f you accept this offer please forward us the charter p a rty_____quadruplicate to
enable us to issue the necessary instructions________ the ship’s captain.
We look forw ard______ your early reply.

Yours sincerely__________________________________________________________
(at steamer's option - по выбору судна (судоходной компании); sailing card -
расписание судов)
Exercise 4. Match the peculiarities with the different kinds o f freight (B/L freight (B/L);
Prepaid freight (P/P); Pro- rata freight (P/R); A d valorem freight (A/V); Back freight
(B/F); Deadfreight (D/F)
1. It’s used for very expensive goods______________________
2. A consignor pays for the goods which haven’t been delivered to the port of
destination_________
3. The voyage hasn’t been over because o f valid reasons____________________
4. Dry cargo should be loaded under a negotiable bill o f lading___________________
5. Missing cargo should be claimed by a shipowner __________ __
6. It’s used for bulk cargo_________________
Exercise 5 . Match terms with their definitions

1. Distress freight A. Set up and defend a legitimate claim
2. Freight at destination B. A document that allows trading of the
goods it describes
3. Freight, demurrage and defence C. Cargo to be stowed at reduced rates into
unused stowage space
4. Negligence clause D. Charterer will pay a fixed amount of
money, irrespective of the amount of cargo
5. Lumpsum charter E. Insurance against latent deficiencies
6. General average F. Freight to be paid upon delivery at
destination
1. Negotiable B/L G. Indemnity for all parties in case of
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deliberate infliction (нанесение) o f damage
in order to avoid greater dam age
1 2 3 4 5 6 7
Exercise 6. Read the sample o f a voyage charterparty. Translate the preamble. Learn the
following phrases and use them in your translation
It is hereby agreed —настоящим согласовано
In every respect —во всех отношениях
So near thereunto - так близко к..., как
In Parts A and В hereof - в разделах А и Б настоящего чартера
A typewritten provision —машинописные условия
То proceed to the port - проследовать в порт
То be afloat - оставаться на плаву
То bind to supply - обязуется предоставить
То carry with all possible despatch —доставить со всей возможной скоростью
EXAMPLE: how to fill in a VOYAGE CHARTER PARTY

PART A
1. Preamble:
It is hereby agreed between the Owners and the Charterers that the Vessel - being in every respect fit
for the carriage of the cargo - shall proceed to the loading port indicated below or so near thereunto as
she may safely get and lie always afloat, and there load the cargo, which the Charterers bind
themselves to supply, and carry it with all the possible despatch to the port of discharge indicated
below or so near thereunto as she may safely get and lie always afloat, and there deliver the cargo.
The carriage under this Charter shall be performed against payment of freight and in accordance with
the terms contained in Parts A and В of this Charter Party, of which the typewritten provisions of
Part A shall prevail over those contained in Part В to the extent of any conflict between them.
2. Owners:
represented by (agent) _____________________________________________________ _
3. Charterers:
represented by (agent))
4. Vessel:
a - name
b-GRT
c present position NRT
DWT (All Told on Summer loadline)
d - (class, cubic capacity, equipment, etc.)
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5. Cargo: (quantity, packing, special features, etc.)
A........................................ ( full and complete / part) cargo o f ____________________
(of which..........................may be carried on deck.
% more or less at.................................................( Owners / Charterers) option to be declared
when / on...................................................(actual commencement o f chartering o f vessel)
6. Laydays (number o f days allowed for loading) not to commence before 8 a.m. on
Cancelling date and time: (when the vessel must be ready for loading) ............
7. Advance Notice of Readiness to load to be sent to (Shipper and Charterer)89
8. Loading:
a - port(s):______________________________________________________________________
b - time: (quantity per weather working day, total time for loading) ____________________
c - cost: (fixedprice / free in & stowed/fa.s.) _______________________________________
d - dunnage paid by (Owners or Charterers)________________________________________
e - stevedores paid by (Owners or Charterers)_______________________________________
f - vessel's agent appointed by (Owners or Charterers)________________________________
g - max. loaded draft in .................. (salt/fresh) water not to exceed: _ _ _ _ _______________
i
h - shippers:____________________________________________________________________
9. Discharging:
a - port(s):______________________________________________________________________
b - time: (quantity per weather workins day, total time for discharging)._________________
c - cost: (fixedprice/free out.)____________________________________________________
d - stevedores paid by (Owners. Charterers or Consignee)_____________________________
e - vessel's agent appointed by (Owners or Charterers)________________________________
f - max. loaded draft in.................. (salt/fresh) water not to exceed:.______________________
g-
Consignee(s):___________________________________________________________________
/^Freight-rate (the costs of transportation of the cargo by the vessel):

per 40 ft. Container on quantity......................................................... (delivered/taken in).
//.Demurrage (compensation-payment when loading- or discharging time has been

exceeded):
a - in loading payable b y ............................................................................. (Charterer / Shipper)
b - in discharging payable b y ................................................................ (Consisnee / Charterers)
Brokerage:...........% on freight and deadfreight is due to (the agent) ........................................
For the owners: For the Charterers:
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Dunnage -сепарационный, прокладочный и подстилочный материал (для укладки груза в
трюме), деннаж
Salt water - морская (забортная) вода
Fresh water - пресная вода
Exercise 7. Look at the following extracts from contract clauses. A navigation word has
been underlined. Link the underlined word to its meaning
Contract clauses Meaning
1. now it is hereby agreed.... A. by means of or because of that

2. subject as hereinafter provided B. with this document
3. you will find in the documents C. of this event
herewith attached
4. the first installment becoming D. later in this document
due one month from the date
hereof
5. as thereby stated E. by means of this document or declaration
1 2 3 4 5
1. При отдельных перевозках фрахт исчисляется по погруженному количеству.

2. Чартер «Дженкон» в ледовой оговорке и пункте о забастовке обусловливает
уплату дополнительного фрахта пропорционально пройденному расстоянию, если
судно будет направлено для выгрузки в более дальний порт, чем первоначальный
пункт назначения.
3. Фрахт люмпсум практикуется при перевозке разнообразного груза, вес и
кубатуру которого заранее трудно определить. Тогда в чартере указывается
грузоподъемность судна и кубатура грузовых перемещений для размещения груза.
Этот тип фрахта взимается с условием, что стоимость погрузки и выгрузки
оплачивается фрахтователем.
4. Фрахт исчисляется обычно в валюте места платежа, т.е. в валюте страны
отправления или назначения.
5. Если фрахтователь виновен в том, что к погрузке предъявлено не все
количество груза, то за недогруженное количество фрахтователь обязан заплатить
полный фрахт, исключая стоимость погрузки и выгрузки, если они входили во
фрахтовую ставку.
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UNIT 16
VOYAGE CHARTER AGREEMENTS
Part II
Vocabulary
Clause Paramount - Оговорка «Парамаунт»
4 New Jason Clause - Оговорка Джейсона, новая оговорка Джейсона
4- Lawsuit - судебный процесс
4- То exonerate a ship- освободить судно
4 Laydays - сталийные дни, установленное чартером количество дней для
грузовых операций или докования судна
4 Cancelling/Canceling date (cancellation) —канцеллинг; расторжение договора
ввиду нарушения своих обязательств одной из сторон, например, опоздание
прибытия судна в порт в установленный чартером срок
4 Laytime —сталийное время
4 То compel —заставлять
4 Despatch days —разница между расчетным количеством дней, отведенных на
выполнение грузовых операций, и фактически затраченными днями (за
сэкономленное время судовладелец выплачивает фрахтователю
обусловленную сумму)
4 Despatch (dispatch) - диспач; компенсация фрахтователю за досрочное
завершение грузовых работ
4 Reversible - взаимный зачет простоя и диспача по погрузке и выгрузке
4 Customary dispatch (CD) - обычное обслуживание согласно обычаям
данного порта
4 Customary quick dispatch (CQD) - с обычной скоростью (о норме погрузки и
выгрузки)
4 A computation - вычисление
4 Demurrage — демередж, сумма, подлежащая выплате судовладельцу для
компенсации убытков, происшедших из-за простоя судна в порту сверх
времени, предусмотренного для выполнения грузовых операций
4 Salvage - спасение имущества (груза)
4 То procure - добиваться
4 Amount due - сумма долга
4 Arrived ship - прибывшее судно
P a rti
Clause Paramount
A Clause Paramount (sometimes named “General Paramount Clause”)
incorporates into the contract for carriage one of the three international conventions setting
out minimum terms and conditions out of which the carrier cannot contract, i.e. the Hague
Rules, the Hague-Visby Rules or the Hamburg Rules. It is inserted in any C/P under which
a B/L is required to be issued, and is also found in various forms in liner and charter party
Bs/L.
100
Most maritime states have incorporated one or other of the 3 conventions into their
national law. In such cases the relevant rules are usually automatically incorporated in
contracts for carriage from that country.
An example of a simple Clause Paramount is: ‘‘The Hague Rules as amended by the
Brussels Protocol 1968 shall apply to this Charter Party and to any Bills o f Lading issued
hereunder. The Charterers shall procure that all Bills o f Lading issued under this Charter
party shall contain a clause to include these rules ".
New Jason Clause (or Amended Jason Clause)

is required to protect owners against the possibility of US lawsuits.
Under US common law, a shipowner cannot claim General Average contributions
from cargo where there has been faulty navigation or management of the vessel. The owner
will therefore seek to exonerate himself from liability for loss from these causes. However,
the Harter Act 1893 made it illegal to insert any clause in a B/L exonerating the ship from
liability for loss caused through negligence, improper stowage, etc. Even so, a clause was
commonly inserted in Bs/L giving owners the right to claim General Average contributions
from cargo.
Validity of this clause was tested in a 1904 court case concerning the s.s. Jason, and
in 1911 after lengthy litigation, the clause’s validity was upheld by the court. It has since
been extended to include salvage and is now called the New (or Amended) Jason Clause
and commonly inserted in Bs/L and C/Ps.
Laydays and the cancelling date

Laydays
- refer to a period of specified days (e.g. Jan 8/15) during which owners must present
the vessel for loading.
- should not be confused with laytime, which is the period allowed to the charterers for
loading and/or discharging without payment additional to the freight.
The cancelling date
- is the final layday and the date beyond which, if the chartered vessel has not been
presented for loading, the charterers may reject and cancel the charter.
- will usually be found in a Cancelling Clause, which provides that the charterers will
not be entitled to cancel the charter before the stated canceling date, even when it is
obvious that the vessel cannot arrive at the loading port by this date.
Together, laydays / cancelling or, as it is often called, the “laycan” is the period
within which the vessel must be presented at the agreed port or place. If the vessel arrives
before the first day of the period, the charterers do not have to accept her until
commencement of the agreed laydays. If she arrives after the final layday, the charterers are
entitled to reject the vessel and cancel the charter.
The charterers cannot be made to declare whether they intend to cancel or not before
the vessel arrives at the loading port. Even after the canceling day has passed, owners can
still not compel the charterers to declare whether or not they will load the vessel (and in
practice the charterers will often stay silent, hoping to make a new contract with owners).
To avoid delay to the vessel in awaiting the charterer's decision on cancellation, some
charter parties have an extension to the Cancelling Clause compelling the charterers to
declare within a specified time whether or not they elect to cancel after being informed of
the vessel's late arrival.
101
In C/Ps and related documents the laycan will usually be written as “10/20 May”
meaning 10 May is the first layday while 20 May is the canceling date.
Laytime
- is defined in Voyage Charter Party Laytime Interpretation Rules (1993) as “ the
period agreed between the parties during which the owners will make and keep the
vessel available for loading or discharging without payment additional to the
freight”
- is time allowed to the charterers for cargo operations without additional payment
- should in the interest of the owners, commence as soon as practicable.
- may be separate for load and discharge ports, or reversible (or “all purposes”.)
- may be of three types with respect to the method of determining the duration:
• Definite laytime
• Calculable laytime
• Indefinite laytime
- if definite will be stated in the C/P as a specified period of time, e.g. “6 (six) days ”
or “48 running hours ”.
- If calculable must be determined by making a computation from information in the
C/P, e.g. where a cargo weighing 20,000 tons is to be loaded at a rate of 10,000 tons
per day, the laytime will be 2, 00 days.
- If indefinite the C/P may state that the cargo is to be loaded with “customary
despatch” or “customary quick despatch” or “or as fast as the vessel can receive”.
Can only start to count against the charterers after three conditions have been
fulfilled:
1. The vessel has become an “arrived ship” within the term of the C/P.
2. The vessel is in all respects ready to load/discharge
3. Notice of readiness has been served on the charterers or their agent in accordance
with the C/P.
1. Why's this clause called “paramount”?

2. What are shipowner’s liabilities according to US lawsuit?
3. Explain the reason o f Jason clause.
4. What’s the difference between laytime, laydays and laycan?
5. When can a charterer cancel a charter?
6. Why do charterers delay their decision about cancellation?
7. What are the types o f laytime?
8. What are the conditions to count against the charterer?
Exercise 1. Find the verbs in the text that take the noun “vessel” as their object. Use these
word combinations in your own sentences, e.g. to discharge a vessel
a vessel
102
Exercise 2. Define the liabilities o f charterers and owners under the following clauses
using verb + noun expressions
NEW JASON CANCELLING

CLAUSES LAYTIME
CLAUSE
OWNERS
CHARTERERS
Part 2
Read the text. Answer the questions.
Read the sample o f NOR. Translate into your native language
Notice o f Readiness (NOR)

- is a notice to the charterer, shipper, receiver or other person as required by the C/P
that the vessel has arrived at the port or berth, as the case may be, and is ready to
load or discharge;
- may be (and is often) given by the ship's agent on the master's behalf;
- must be given before laytime can commence;
- must be given within the “laycan” period;
- is often required to be given during office hours from Monday to Saturday;
- need only be given at the first o f two or more load ports, unless the C/P provides
otherwise;
- must be addressed to the charterers or their agent;
The C/P will normally state that laytime will commence a certain number of HRS
after Notice of Readiness (NOR) is given or accepted; the waiting period is usually
termed “notice time” or “turn time”.
If such period is not specified, laytime will commence as soon as NOR is given.
Messrs. Shippers, Receivers and Port Authorities
M.T. Corrona
Voy. No.01390/N-leg.
Port: Rotterdam-Waalhaven
Date:
Dear Sirs,
This is to notify you that the above vessel under my command arrived at the Port of Rotterdam at
2300hrsAugust 28 and is ready in all respects to load a cargo of 6500 metric tons of ACETON and
350 metric tons of METHANOL in accordance with the terms and conditions of the Charter Party
dated 31 July 2005.
Please acknowledge the above.
Yours Truly,
Master of M.T. Corrona
Notice accepted at 1700 hrs on August 29 2005
Signature_____________ (Shippers/Receivers) Agent
103
Demmurage
If cargo operations are completed after expiry of the laytime, there is a breach of
contract for which the charterers would be technically liable for damages. Owners and
charterers will often find themselves in this situation, and to avoid the expense and
unpleasantness of legal proceedings, liquidated damages, termed demurrage normally
become payable by the charterers to the owners for each day, or part of a day, that the ship
is detained beyond the time of expiry of laytime.
Demurrage is defined in the Voyage C/P Laytime Interpretation Rules 1993 as “ал
agreed amount payable to the owners in respect o f delay to the vessel beyond the laytime,
fo r which the owners are not responsible. Demurrage shall not be subject to laytime
exceptions ".
The demurrage rate, which is normally quoted in US Dollars, will normally be a daily
rate that will at least cover the owners' costs of keeping the ship in port. Demurrage is
normally paid per running day, i.e. without exclusion of any Sundays, holidays, or bad
weather, strikes, etc., occurring during the detention period.
Despatch
If cargo operations are completed before expiry of the laytime, a monetary reward,
termed despatch or despatch money, is normally payable by the owners to the charterer.
Despatch will only be payable if provided for in a charter party clause (e.g. a Demurrage /
Despatch Money).
Some charter-parties stipulate “ free dispatch”, meaning that the owners will not pay
any dispatch money if time is saved.
The daily dispatch rate, which is normally quoted in US Dollars, is traditionally
half the agreed demurrage rate, the reasoning being that while early completion of cargo
may give the owners an opportunity to complete the voyage early and fix the vessel on
another charter, the charterers may also benefit from early berthing of the next due vessel.123456789
Remember the following abbreviations:

Bdi - both days included
D1/2D (DHD) - Despatch half Demurrage
LTS - Despatch - All Laytime saved
ATS - Despatch - All Time saved
WTS - Despatch - All working time saved
FHEX - Friday and Holidays excluded
FHINC - Friday and Holidays included
SHEX - Sunday and Holidays excluded
SHINC - Sunday and Holidays included
1. What does NOR mean?

2. What are time requirements for giving NOR?
3. Where must NOR be given?
4. Who is NOR addressed to?
5. When does the laytime commence?
6. When is dispatch paid?
7. How is dispatch rate calculated?
8. How is demurrage defined in Voyage Charter Party?
9. How is demurrage rate calculated and paid?
104
Exercise 2.Look at the following extracts from contract clauses. A navigation word has
been underlined. Link the underlined word to its meaning
Contract clauses Meaning
1. The failure of either party to exercise any A. after that event
right to which it is entitled hereunder
2. By referring to the points mentioned therein B. on that item
3. And for a period of 12 months thereafter C. by the terms of agreement
4. The cost of the product, and the monthly
payments therefore D. for that item
5. The Initial Fee together with any VAT thereon E. in that matter
Exercise 3. Read the enquiry for a voyage charter.

a) Complete the letter with the correct prepositions
b) What are the main items which are o f primary importance fo r voyage charterer?
Underline them._____________________________ __________________________________
Dear Sirs,
We would like to charter a vessel______ one voyage________ Newcastle, NSW, Ausrtalia,
_______ St Malo, Brittany, France, to take a consignment_____ 4,000 (four thousand) tons
of bauxite.
Our contract states that we have to take delivery____________ 1 and 5 August, so we need
a ship that will be able to load during those dates. Please advise us if you can get a vessel and
let us know the terms.
Yours faithfully,
Shipping Manager
Exercise 4. Read the shipbroker’s reply.

a) Answer the questions__________________________________________________
Dear Sirs,
You should have already received our letter (fax) in which we said that we had an option on a
vessel, MS Sheraton, which is docked in Melbourne, Australia at present. She has a cargo
capacity o f 7,000 (seven thousand) tons and although she is larger than you wanted, her
owners are willing to offer a part charter.
They have quoted $12.30 (twelve dollars, thirty pence) per ton which is a very competitive rate
considering you will be sharing the cost.
Could you fax us your decision a.s.a.p.?
Yoursfaithfully,1234
Charter Department ______________________

(tonne —метрическая тонна)
1. What does an option on a vessel mean?
2. Where is the MS Sheridan at the moment?
3. Is the ship exactly what charterers wanted?
4. Why is the chartering cost lower for this shipment?
105
b) Underline the direct answers to the enquiries in the previous letter.
Exercise 5. Multiple matching. Match the extracts from voyage charters with the
headings
1. Responsibility. Paramount Clause. Hague Rules
2. Cancelling Date
3. Loading/Discharging Expenses
4. Notice of Readiness
5. Commencement of Laytime for Loading/Discharging
6. Demurrage
7. Bills of Lading
8. Lien
9. Freight advance
10. New Jason clause
11. Both to Blame collision clause
Exercise 6. Read the passages from Voyage Charter. Check your translation by finding
the corresponding point in Russian.
Underline the key points in both variants and com pare them
1. Судовладельцы имеют залоговое
A. 10 days altogether on demurrage shall be allowed право на груз в обеспечение любых
at... .per day or pro rata for any part of a day, payable сумм, причитающихся по данному
day by day. чартеру, и расходов, необходимых для
получения этих сумм
2. Наличные деньги для обычных
B. The owners shall have a lien on the cargo for any дисбурсментских расходов судна в
amount due under this contract and expenses порту погрузки в сумме, не
necessary o f recovering same превышающих 1/3 суммы фрахта,
авансируются фрахтователями, если
судовладельцы платят 2% в покрытие
расходов по страхованию и всех иных
расходов
3. Капитан подписывает коносамент,
представленный в соответствии с
C. A sailing telegram and running day’s notice of the проформой, указанной на обороте
expected date of readiness to load shall be given to этого чартера, без ущерба для данного
the Shippers or their Agents who shall be kept чартера. Фрахтователи освобождают
informed of any material alteration of the notice date судовладельцев от ответственности,
если последние привлекаются к
ответственности по этим коносаментам
в связи с любыми претензиями, по
которым судовладельцы не
ответственны перед фрахтователями по
данному чартеру
4. В случае аварии, опасности,
повреждении или бедствия до или
после начала рейса вследствие каких-
D. The “Hague Rules” contained in the International то причин, независимо от того,
Convention for the Unification of Certain Rules являются ли они следствием
relating to Bs/L, dated Brussels the 25th August 1924 небрежности, за которую или за
as enacted in the country of destination shall apply to последствия которой перевозчик не
106
this contract. When no such enactment is in force in несет ответственности по закону, по
the country of destination the corresponding договору,.. .груз, грузоотправители,
legislation of the country of shipment shall apply, but грузополучатели или грузовладельцы
if no such legislation is in force in either country then должны нести свою долю убытков по
the British Carriage of Goods by Sea Act 1924 shall общей аварии совместно с
apply. The Owners and Charterers are entitled to the перевозчиком в порядке оплаты любых
benefit of all privileges, rights and immunities пожертвований, убытков или расходов,
contained in such enactment as if the same were понесенных в связи с общей аварией и
herein specifically set out. должны оплатить относящееся к грузу
вознаграждение и специальные
расходы по спасению. Если спасавшее
судно принадлежит перевозчику или
эксплуатируется им, вознаграждение за
спасение должно оплачиваться ему
полностью, как если бы спасавшее
судно принадлежало третьим лицам.
Депозит в размере, который перевозчик
сочтет достаточным для покрытия доли
груза в общей аварии, вознаграждения
за спасение, должен быть внесен
перевозчику грузоотправителями или
грузовладельцами до сдачи груза
E. The cargo shall be brought to and taken from 5. Фрахтователям разрешается держать
alongside the vessel by the Charterers or their Agents судно на демередже в течение 10 дней
at their risk and expense, the Owners paying for в целом по погрузке и выгрузке;
loading and discharging демередж по ставке в день или
пропорционально за часть дня
выплачивается день за днем
F. The time shall commence at 1 p.m. if notice of 6. Телеграмма об отходе судна и
readiness is given before 10 a.m. and at 7 a.m. next дневной нотис (календарные дни) с
working day if notice given during office hours after указанием предполагаемой даты
10 a.m. Any time lost in waiting for berth at or off готовности судна к погрузке должны
port of loading and port of discharge shall count as быть даны грузоотправителям или их
laytime агентам, которых необходимо
информировать о любых существенных
отклонениях от даты нотиса
G. Cash for vessel’s ordinary disbursements at the 7. Груз должен быть доставлен к борту
port of loading not exceeding l/3rd of the freight to судна и принят от борта судна
be advanced by the Charterers if demanded by the фрахтователями или их агентами на их
Owners or Captain, Owners paying 2 per cent to риск и за их счет. Судовладельцы
cover insurance and all other expenses оплачивают расходы по погрузке и
выгрузке
1. The Captain shall sign B/L as printed below 8. Сталийное время должно
without prejudice to this Charter. The Charterers учитываться с 13.00, если нотис о го
shall indemnify the Owners if the Owners are held товности судна дан до 10 часов утра, и
liable under the B/L in respect of any claim for с 7 часов утра следующего рабочего
which the Owners are not liable towards the дня, если НОГ дан в течение рабочих
Charterers under this Charter часов конторы после 10 часов утра.
Время ожидания причала судном,
находящимся в порту или на рейде
порта погрузки или выгрузки,
считается сталийным.
107
J. Should the vessel not be ready to load latest at 12 9. При столкновении судна с другим
midnight on the.... Charterers have the option of судном, в результате небрежности
canceling this contract. If it appears that the vessel последнего, упущения или
will be delayed beyond such canceling date, the небрежности со стороны капитана,
Owners may as soon as they are in a position to state члена экипажа, лоцмана или служащих
with reasonable certainty the day within which the судовладельца в судовождении или в
vessel will be ready as above, give notice thereof to управлении судном, владельцы груза
the Charterers asking whether they will exercise their возмещают судовладельцам все убытки
option of canceling. Such option must be declared или освобождают от ответственности
within 36 running hours (Sundays and holidays перед другим, не перевозящим груз
excepted) after the receipt of the Owner’s notice. судном или перед его владельцами в
той мере, в какой эти убытки или
ответственность представляют ущерб
или иск владельцев указанного груза,
оплаченные другим, не перевозящим
данный груз судном или его
владельцами владельцам указанного
груза, и зачтенные, удержанные или
возмещенные другим, не перевозящим
данный груз судном или его
владельцами как частичное
удовлетворение их требований к
перевозящему судну или его
владельцам. Вышеуказанные условия
должны применяться тогда, когда
судовладельцы, операторы судна или
лица, в ведении которых находится
судно, или объекты, участвовавшие в
столкновении, виновны в столкновении
или касании
K. In the event of accident, danger, damage or 10. Гаагские правила, изложенные в
disaster before or after the commencement of a международной конвенции по
voyage, resulting from any cause whatsoever, унификации некоторых правил,
whether due to negligence or not, for which, or for касающихся коносаментов, принятой в
the consequences of which, the Carrier is not Брюсселе в том виде, в каком они
responsible, by statute, contract, the cargo, shippers, приняты в стране назначения груза,
consignees or the owners of the cargo shall применяются к данному договору. Если
contribute with the Carrier in General Average to the эти правила не приняты в стране
payment of any sacrifices, losses or expenses of a назначения, применяется
General Average nature that may be made and shall соответствующее законодательство
pay salvage and special charges incurred in respect страны отправления груза, но если
of the cargo. If a salving vessel is owned or operated подобное законодательство не
by the Carrier, salvage shall be paid for as fully as if действует ни в одной из этих стран, то
the said salving vessel belonged to strangers. Such должен применяться английский Закон
deposit as the Carrier, or his agents, may deem о перевозке грузов морем 1924 года.
sufficient to cover the estimated contribution of the Судовладельцы и фрахтователи
goods and any salvage and special charges thereon пользуются всеми привилегиями,
shall, if required, be made by the cargo, shippers, правами и льготами,
consignees or owners of the goods to the Carrier предусмотренными таким
before delivery законодательством, так же как если бы
эти правила содержались в данном
чартере
108
L. If the vessel comes into collision with another 11. Если судно не буден готово к
vessel as a result of the negligence of the other vessel погрузке к 12.00, фрахтователи имеют
and any act, neglect or default of the Master, право аннулировать этот чартер. Если
Mariner, Pilot and servants of the Carrier in the окажется, что судно вследствие
navigation or in the management of the vessel, the задержки не может прибыть к дате
owners of the cargo carried hereunder will indemnify канцелинга, судовладельцы могут,- как
the Carrier against any loss or liability on the other or только они будут в состоянии
non-carrying vessel or her owners in so far as such установить с разумной степенью
loss or liability represents loss of, or damage to, or точности день, в течение которого
any claim of the owners of said cargo, paid or судно будет готово к погрузке в
payable by the other or non-carrying vessel or her указанном выше смысле,- дать нотис с
owners to the owners of said cargo and set-off, указанием этой даты фрахтователям, с
recouped or recovered by the other or non-carrying просьбой сообщить, воспользуются ли
vessel or her owners as part of their claim against the они своим правом аннулирования
carrying vessel or the carrier. The foregoing чартера. Этот опцион аннулирования
provisions shall apply where the owners, operators or чартера должен быть заявлен
those in charge of any vessel or objects other than, or фрахтователям в течение 36 текущих
in addition to, the colliding vessels or objects are at часов после получения нотиса
fault in respect of a collision or contract судовладельцев
Exercise 7. Complete NOR using the following English equivalents
Passed by Port Warden Please be advised ready in all respects

For and on behalf o f Charterers at the anchorage estimated quantity o f cargo
Port__________
Date________ 200___
Messrs.__________
To whom it may concern.
(Пожалуйста, примите к сведению) that my vessel “________ ” arrived (рейд ) of the

p o rt_________ a t ______hours________ 200___and having been passed by the Canadian
(USA) Department of Agriculture and by the port of Warden is now (готово во всех
отношениях) to commence the loading of her grain cargo in accordance with all terms,
conditions, provisions and exceptions of the governing Charter party.
(Предполагаемое к погрузке количество груза)________ tons.

Passed by Canadian (USA) Dep. Of Agriculture (Month, date)_______ 200 at____hours.
(Принято портовым контролем)_______ th 200_______at_______ hours.
Yours very truly,

$
Received a t_______ hours_____th, 200___.
Time to count as per governing C/P.
(По поручению и от имени фрахтователей)
109
1. Если судно не будет готово к погрузке к 12.00, фрахтователи имеют право
аннулировать чартер.
2. Дневной нотис с указанием предполагаемой даты готовности судн
погрузке должен быть выдан грузоотправителям или их агентам.
3. Время ожидания причала судном, находящимся в порту или на рейде по
погрузки или выгрузки, считается сталийным.
4. Груз должен быть доставлен к борту судна и принят от борта су
фрахтователями или их агентами на их риск и за их счет.
5. Аннулирование чартера должно быть заявлено фрахтователями в течени
текущих часов после получения нотиса судовладельцев.
6. Фрахтователям разрешается держать судно на демередже в течение 10 дн
целом по погрузке и выгрузке.
7. Капитан подписывает коносамент, представленный в соответствии
проформой, указанной на обороте этого чартера, без ущерба для данного чартера.
8. Оговорка “Парамаунт», означающая первостепенный, верховный, должна
подчеркивать, что ее содержание превалирует над всеми условиями чартера. Эта
оговорка была введена в практику фрахтования после нескольких американских
судебных решений. По этой концепции обязательство судовладельца обеспечить
мореходность судна носит абсолютный характер.
110
UNIT 17
TIME CHARTER AGREEMENTS
Time C harter Clauses
Vocabulary
■4 Disbursement - выплата; расходы, издержки
4 To reimburse - возмещать; компенсировать
4 Cessation o f hire - прекращение аренды
4 Suspension o f hire —приостановление выплаты арендной платы
4 In default o f payment —в случае неуплаты аренды
4 Umpire’s decision - решение третейского судьи; арбитра
4 Speed and fuel consumption —скорость и расход топлива
4 FO (fuel oil) - жидкое топливо, мазут
4 DO (diesel oil) - дизельное топливо
4 Laden —груженый, загруженный (о судне)
4 Idle -холостой, работающий на малых оборотах
4 Trade limits -(зд .) перевозки, рейсы; границы использования судна
4 Merchandise - товары
4 Berth - причал
4 Anchorage - якорная стоянка
4 A m ate’s receipt - штурманская расписка
4 ‘Disponent owner ’- диспонент, фактически распоряжающийся судном
судовладелец
4 Fraud - обман, мошенничество
4 Supercargo - суперкарго (представитель фрахтователя на тайм-чартерном
судне или представитель владельца груза, сопровождающий груз в пути)
4 “Off-hire ” —вне аренды; обстоятельства, приостанавливающие оплату
аренды судна
4 Wear and tear- амортизация
4 r.o.b. (remaining on board) - остаток груза, не поддающийся откачке
зачистными насосами и остающийся в грузовых танках
4 Redelivery - возврат судна из тайм-чартера
4 Foul B/L —коносамент с оговорками
4 Downtime - неэксплуатационный период
4 То withdraw- отзывать
4 Indemnification - возмещение ущерба
Exercise 1. Read the text.Learn the name o f clauses and their Russian equivalents.
A g e n e ra l p u rp o s e d ry c a rg o tim e c h a rte r p a r ty w ill u s u a lly in c o rp o r a te c la u se s

c o v e rin g a t le a s t th e b a s ic p ro v is io n s ta b u la te d b e lo w . T h e p r o v is io n s m a y b e c o v e re d in
d iffe re n t C /P s b y c la u s e s b e a rin g d iffe re n t n a m e s , o r b y n u m b e r e d c la u s e s w ith o u t n a m e s.
Ill
Clause name Matters covered by clause
Preamble Identity of parties; identity and technical specifications of vessel; present
Преамбула position of vessel
Period/Port of Period of hire; place and time of delivery to charterers
Delivery/
Time o f Delivery
Trade Legality of vessel’s employment; legality of cargoes carried; safety of
Использование судна ports used; prohibition of cargoes injurious to ship
Owners to provide Owners’ obligation to pay for specific items
Обязанности
судовладельцев
Charterers to Provide Charterers’ obligation to pay for specific items
Bunkers Charterers’ obligation to buy bunkers remaining on board (r.o.b.) at
Топливо delivery port; owners’ obligation to buy bunkers r.o.b. at delivery port;
minimum quantity of bunkers to be on board at redelivery
Hire Charterers’ obligation to pay hire at the specified rate at the specified
Аренда intervals until delivery; owners’ right to withdraw vessel for default on
hire payments
Redelivery Charterers’ obligation to re-deliver vessel in same condition as when
Возврат судна из delivered (fair wear and tear excepted); redelivery place, date and time;
тайм-чартера giving notice of redelivery by charterers; provisions where vessel is on a
voyage at agreed redelivery time
Cargo space Agreement that entire carrying capacity of vessel will be at charterers’
Грузовые помещения disposal
судна
Master Master’s speedy prosecution of voyages; master’s and crew’s assistance
Капитан to charterer; master’s obedience of charterers’ orders relating to vessel’s
employment, agency, etc; charterers’ indemnification of owners against
consequences of owners’ servants signing bills of lading or other
documents, or complying with charterers’ orders; exclusion of owners’
liability for cargo claims; owners’ agreement to investigate charterers’
complaints about crew
Directions and Logs Charterers’ obligation to provide master with voyage instructions and
Распоряжения information; obligation of master and engineers to make voyage logs
фрахтователей и available to chartereres and their agents
судовой журнал
Suspension o f Hire Suspension of hire payment for duration of any “downtime” of vessel in
Приостановление specified circumstances; charterers’ responsibility for loss of time in
выплаты арендной specified circumstances
платы
Cleaning Boilers Owners’ obligation to clean boilers with vessel in service, if possible;
Зачистка котлов charterers’ obligation to allow boiler cleaning time when necessary;
suspension of hire when boiler cleaning time extends beyond specified
time
Responsibility and Conditions under which owners will be responsible for delay in delivery,
Exemption delay during the charter, or loss or damage to cargo; owners’ exclusion of
Ответственность и responsibility in all other circumstances; charterers’ responsibility for loss
исключения из or damage to vessel or owners caused by improper or negligent loading,
ответственности bunkering or other acts on their or their servants’ parts
Advances Charterers’ obligation to advance necessary funds to master for ordinary
Авансы disbursements at any port; deduction of advances from hire
112
Excluded ports Prohibition on Charterers from ordering vessel to a place where disease is
Исключаемые порты prevalent or which would be beyond the agreed limits of the Crew
Agreement, or to any ice-bound place
Loss o f vessels Cessation of hire from date of loss of vessel
Гибель судна
Overtime Owners’ obligation to make vessel available for work 24h per day if
Сверхурочные required; charterers’ obligation to reimburse owners for crew overtime
Lien Owners’ lien for claims under the charter on cargoes, subfreights and bill
Залоговое право of lading freight
Salvage Equal sharing of salvage money after deduction of masters’ and crew’s
Вознаграждение за proportions and other expenses
спасание
Sublet Charterers’ option to sublet vessel; original charterers’ responsibility for
Сдача судна в суб due performance of charter
чартер
Prohibition on Charterers from using vessel in war zones or for carriage of
goods which will expose her to risks of capture; charterers’ responsibility
War to pay any war risks premiums, hire for time lost due to warlike
Военная оговорка operations and increased costs due to war zone operations; liberty of
vessel to comply with flag State orders during war; cancellation of charter
by either party; and redelivery of vessel, if Flag State becomes involved in
war
Cancelling Charterers’option of canceling charter if vessel is not delivered by agreed
Канцелинг date; charterers’ obligation to declare intention to cancel
Arbitration Reference of disputes to arbitration in London or other agreed place;
Арбитраж nomination of arbitrators by parties; umpire’s decision where arbitrators
disagree
General Average Rules under which any General Average is to be settled; non-contribution
Общая авария of hire to General Average
Commission Amount of (brokerage) commission to be paid by owners, and party to
Брокерская комиссия whom payable
The vessel
T im e c h a rte r p a r tie s n o rm a lly in c lu d e a s ta te m e n t o f g e n e ra l p a r tic u la rs a b o u t th e
v e sse l in c lu d in g c la s s ific a tio n , d im e n s io n s , to n n a g e s (G T , N T , D W T ), c o n s ta n t w e ig h t,
d ra u g h t, g ra in (b a le c u b ic c a p a c ity o f h o ld s /ta n k s ), s p e e d {laden!in b a lla s t), c o n s u m p tio n o f
FO and DO (la d e n /in b a lla s t/in p o rt w o r k in g / idle), ty p e o f e n g in e , fu e l u s e d , c a ll sig n , etc.
G e n e ra l a r ra n g e m e n t a n d c a p a c ity p la n s m a y a ls o b e r e q u ir e d b y th e c h a rte r.
Speed and fuel consumption a re v ita lly im p o rta n t to th e c h a rte re rs fo r d e te r m in in g
w h e th e r th e v e s s e l is p e r f o r m in g th e c o n tra c t e f fic ie n tly a n d w h e th e r h e is e n title d to c la im
for a n y alleged under-performance. (T h is is a fr e q u e n t s u b je c t o f d is p u te , s in c e m o d e m
b u n k e r p ric e s flu c tu a te g re a tly ). T h e d e c la re d constant weight (a fix e d to n n a g e a llo w e d fo r
w ater, s to re s , p ro v is io n s , s p a re s , e tc .) is im p o rta n t to th e C h a rte r e rs in th e ir cargo planning.
A t c o m m o n la w , th e v e s s e l p ro v id e d b y th e o w n e rs m u s t b e s e a w o rth y fo r th e
im p o s e s o f th e c o n tr a c t a t th e tim e o f th e c o n tr a c t’s m a k in g . T h e r e a f te r, th e o w n e rs u s u a lly
ig re e o n ly to exercise due diligence to m a k e th e v e s s e l s e a w o rth y fo r e a c h v o y a g e d u rin g
n e c h a r te r p e rio d .
A tim e c h a rte r p a r ty u s u a lly c o n ta in s an u n d e r ta k in g b y th e o w n e rs to m a in ta in th e
e sse l in g o o d c o n d itio n th ro u g h o u t th e c h a rte r p e rio d , a n d th e o w n e rs m a y b e re q u ir e d to
•..cep th e v e s s e l in th e c o n d itio n sh e w a s s ta te d to b e in w h e n th e c o n tra c t w a s m a d e .
113
A time С/Р usually incorporates a clause defining the ship’s permitted e m p lo y m e n t o r
tr a d e lim its . Typically, the charterers may employ the vessel only in la w fu l tra d e s, carrying
la w fu l m e r c h a n d is e , using only ‘g o o d a n d s a fe p o r t s o r b e r t h s ’ and sometimes s a fe
a n c h o r a g e s where the vessel can lie always safely afloat within the agreed trading limits.
The C/P should always be checked for trade limits. Some countries, areas and ports (e.g.
North Korea, Lebanon, Angola, Namibia, Lybia, Somalia, etc.) may be excluded from the
permitted trading area. ‘Worldwide within ‘Institute Warranty Limits’ is a common term
describing agreed trading areas (the Institute meaning the Institute of London Underwriters).
Liability as carrier
When cargo is s h ip p e d , the shipper may be given a m a t e ’s r e c e ip t (or equivalent
document) acknowledgement. The First Mate will make up a receipt wherein all the
particulars and amounts of the cargoes that were loaded are stated, including any shortages
or damaged cargo items.
When the amount of cargo received by the vessel does not agree with the amount that
is stated in the Charter Party, we speak of “deadweight” (which is actually the amount of
cargo missing).
The master will now make up a “Deadfreight Letter” in which the shortage is
stated. Now the owners of the cargo will have the right to claim damages. The Bill of
Lading will then become “f o u l ”.
The information in a mate’s receipt forms the basis of a B/L, which in many non
liner trades is prepared by the shipper.
SHIPPER:
CONSIGNEE
ADDRESS TO BE NOTIFIED:
VESSEL
PORT OF LOADING
PORT OF DISCHARGE
FREIGHT___________________________________ (PREPAID/ PA YABLE A TDESTINA TION)

Number o f original B/L
CARGO
MARKS & NUMBERS DESCRIPTIONS OF GOODS & PACKAGES GROSS WEIGHT
SPECIFICATION OF FREIGHT AND CHARGES IN €
TO:
MASTER
114
The B/L functions as a receipt, as a document of title and as evidence of a contract
iir carriage. Although a time charterer is a ‘disponent owner’, the contract for carriage
ienced by a B/L, if a bill is issued to a shipper, is between the real shipowner and the
fejpper. If the ship fails to deliver the goods described in the B/L, the owners (and not the
riarterers) will therefore be liable to the owners of the goods. Whether or not time charter
rre has been paid, the shipowner must deliver the goods to the final holder of the B/L and
-suds occasionally occur where a time charterer was the original cargo owner but sells the
.argo to a consignee, fails to pay the next hire payment due, and disappears.
In these cases the shipowner is (usually) still legally obliged to deliver the cargo to
r e holder of the B/L, but receives nothing for carrying the goods.
If a time-chartered ship issues a B/L using her owner’s own ‘house’ B/L form and
without mention of the fact that the vessel is time-chartered (e.g. in statement that all terms
snd conditions o f carriage are in the relevant C/P dated ...), the contract of carriage may be
eeemed to be between the shipowner and the shipper.
If the charterers insist on the issue of their own (charterer’s) B/L forms, the contract
:f carriage will normally be between the charterers and the shipper; in this case the terms on
±e B/L should make the identity of the carrier clear.
The C/P may provide for a supercargo to be carried in order to protect the charterer’s
mterests during the voyage (e.g. with respect to care of the cargo, discharge, etc.)
Agents
Since time charterers require their cargo operations in each port to be overseen by
reliable port agents, particularly in specialized trades, the charterers will normally reserve
the rights to nominate agents, although these charterers’ agents will usually be appointed
and have their fees paid by the owners. (The owners will therefore be the principal in the
legal relationship).
Redelivery
Redelivery conditions
A time-chartered vessel goes “off-hire ” when she is redelivered to her owner.
A Redelivery Clause will normally be found in a Time C/P. Under most Time C/Ps
the vessel must be in the same good order at redelivery as when delivered (fair wear and
tear excepted). An off-hire survey is required to determine the extent of any damage done
during the period of hire. The vessel may be redelivered “clean” or “dirty”. In the event of
redelivery not being in the same good order and condition, the charterers would be liable for
the cost of repairs.
The off-hire survey will normally be carried out by an independent surveyor to
ascertain the extent of damage done during the charter, bunkers r.o.b. (remaining on board),
etc. A Redelivery Certificate should be issued to the Master. It may be agreed that
redelivery will be between certain stated HRS, e.g. 0900-1800 (or 1400 on Saturday) - and
not on Sunday or holiday. The charterers may be required to give the owners not less than
10 days notice.
A Time charterer may want to delay redelivery when freight rates are high, while the
owners may be content with a late redelivery when freight rates are low, if the hire
negotiated was better than the equivalent freight rate.
115
1. What main points must be included?
2. What are the conditions o f time-chartering?
3. What are the functions o f B/L in different cases?
4. What are the cases o f liability o f real shipowners?
5. When can a ship go “off-hire ”?
6. What’s the purpose o f an “off-hire ” survey?
7. What information should be mentioned in M ate’s receipt?
8. What does a ’foul ” B/L mean?
Exercise 2. Read the enquiry fo r a time charter.

a) Complete the letter with the correct prepositions.
b) What are the main items which are o f primary importance fo r time charterer?
Underline them.
Dear Sirs,
This letter (fax) is to confirm our conversation this m orning_____which we asked i f

you could fin d a sh ip _______ s ix _____ seven thousand tons which we could charter
_______ six months to take shipments o f grain___________Baltimore, North America,
________ various ports_______________ the South American coast.
We will need a ship that is capable________ making a fa st turnround and will be able
to manage________ least ten trips within the period.
Yours faithfully,_____________________________________________
Exercise 3. a) Complete the shipbroker ’s reply using appropriate word and word
expressions
Meet reference bulk capable identify knot confirm

currently maximum cargo capacity
Dear Sir,
With_____________________ to your letter (fax) o f 10 January 20_____ , we are
pleased to inform you that we h a v e _________________________ a vessel that will
_________ your requirements.
She is the Manhattan, and is docked in Boston. She is a

________ carrier with a ____ o f seven thousand tons. She
has a speed o f 24_ _ , so would certainly be
o f ten trips in the period you mentioned.
Please fa x us to the charter and we will send you the charter

party.
Yours sincerely
b) Underline the direct answers to the enquiries in the previous letter.
116
Exercise 4. Read the Time charter. Fill in the gaps in the Time charter using the
corresponding Russian terms and match them with the English ones
1. Судовой брокер
2. Название судна
3. Дедвейт по летнюю грузовую марку, определяемую Торговой палатой
4. Дата канцелинга
5. Брокерская комиссия и кому оплачивается
6. Место или рендж возврата судна
7. Количество бункера при возврате (указать минимальное и максимальное
количество)
8. Позиция судна в настоящее время
9. Порт и время сдачи
10. Постоянный запас бункера
11. Оплата за аренду (валюта, метод оплаты, банковский счет)
12. Валовая/чистая грузовместимость
13. Мощность главного двигателя
14. Зерновая/киповая вместимость в куб. футах
15. Скорость в узлах.. .при потреблении.. .тонн
16. Период тайм-чартера
17. Согласованные дополнительные статьи, предусматривающие особые условия,
если согласованы
18. Границы использования судна/ специально оговоренные исключаемые грузы
19. Место арбитража
20. Военная оговорка
1. S h ip b ro k er 2. P lace and date
3. O w n e rs /P la c e o f b u s in e s s 4. C h arterers/P lace o f business (C l. 1)
5. V e sse l's n am e 6. G R T /N R T
7. C lass 8. In d ic a te d h o rse p o w e r
9. T o ta l to n s d .w . (a b t.) on B o ard o f 10. C u b ic fe et g ra in /b a le ca p a c ity

T ra d e su m m e r fre e b o a rd
1 1. P erm an e n t b u n k ers (a b t.)
12. S p eed c a p a b ility in k n o ts (a b t.) on a c o n s u m p tio n in to n s (a b t.) o f
13. Present position 14. F reight p ay m en t (state currency and

m ethod o f paym ent; also beneficiary and bank
account)
117
15. Port of delivery (Cl. 1) 16. Time of delivery (Cl. 1)
17. Shippers (state name and address) (Cl.6)
18. Bunkers on re-delivery (state min. and max. quantity) (Cl. 5)
19. Cancelling hire (Cl. 6) 20. Hire payment (state currency, method and
place of payment; and bank account) (Cl. 6)
21. Place or range of re-delivery (Cl. 7) 22. War (only to be filled in if Section (c)
agreed (CL 2,1)
23. Cancelling date (Cl. 22) 24. Place of arbitration (only to be filled in if
place other that London agreed (CI. 23)
25. Brokerage commission and to whom 26. Number of additional clauses covering
payable (Cl. 25) special provisions, if agreed
It is mutually agreed that this Contract shall be performed subject to the conditions
contained in this Charter which shall include Part I, as well as Part II. In the event of
a conflict of conditions, the provisions of Part I shall prevail over those of Part II to the
extent of such conflict.
1. 2.
3. 4.
5. 6.
7. 8.
9. 10.
11.
12.
118
13. 14.
15. 16.
17.
18.
19. 20.
21. 22.
23. 24.
25. 26.
Взаимно согласовано, что договор будет выполнен в соответствии с условиями,

содержащимися в этом чартере, который включает как ч.1, так и ч.2. В случае противоречия
условий условия ч.1 превалируют над условиями ч. 2 в объеме этого противоречия
П одп ись (С у д о вл ад ельц ы ) П о д п и сь (Ф рахтовател и )
Exercise 5. Read the passages from Time Charter. Check your translation by finding the
corresponding point in Russian. Define the time charter clauses using the table above.
Underline the key points in both variants and compare them
A. Owners to provide and pay for 1. Если судно погибло или пропало без вести, арендная
all provisions and wages, for плата не выплачивается с даты гибели судна. Если дата
insurance o f the vessel,for all deck гибели не может быть установлена, то арендная плата
and stores engine-rooms and выплачивается в половинном размере со дня получения
maintain her in a thoroughly последнего сообщения о судне до расчетной даты
efficient state in hull and machinery прибытия в порт назначения.
during service
B. Charterers to pay as hire the rate 2. Любой спор по условиям данного чартера подлежит
stated in Box 19 per 30 days, until передаче в арбитраж в Лондоне. Один арбитр
her redelivery to her Owners. In номинируется судовладельцами, другой
default of payment Owners to have фрахтователями. Если эти арбитры не могут прийти к
the right of withdrawing the vessel соглашению, то дело передается на рассмотрение
from the service of the Charterers, суперарбитра, который номинируется ими. Решение
without noting any protest and арбитров или суперарбитров является окончательным и
interference by any court and обязательным для обеих сторон
without any prejudice to any
claim....
119
C. Should the vessel be lost or 3.Судовладельцы обязаны предоставить и оплатить
missing, hire to cease from the date все снаряжение судна, обеспечивать палубное
when she was lost. If the date of снаряжение и снаряжение машинного отделения,
loss can't be ascertained half hire to поддерживать судно, корпус и машины в полностью
be paid from the date the vessel was пригодном к эксплуатации состоянии
last reported until the calculated
date of arrival at the destination.
D. Should the parties agree to 4. Судовладельцы имеют залоговое право на все грузы,
cancel the Charter, Owners to субфрахт, причитающийся тайм-чартерным
indemnify the Brokers against any фрахтователям, и на любой коносамент в обеспечение
loss of commission but in such любых претензий по чартеру. Фрахтователи имеют
case the commission not to exceed залоговое право на судно в обеспечение всех денежных
the brokerage on one year’s hire сумм, выплаченных авансом, но не заработанных
судном
E. Any dispute arising under the 5. В случае, если судно вынуждено зайти в порт-
Charter to be referred to arbitration убежище либо стать на якорную стоянку из-за плохой
in London. One arbitrator to be погоды, либо если грузу судна нанесен ущерб, время
nominated by the Owners and the любой задержки судна и/или вызванные такой
other by the Charterer, and in case задержкой расходы, относятся за счет фрахтователей,
the Arbitrators shall not agree to the даже если такая задержка и/или расходы, либо
decision of an Umpire to be причина, вызвавшая эту задержку или расходы,
appointed by them, the award of являются следствием небрежности со стороны
Arbitrators or the Umpire to be служащих судовладельцев или связаны с ней
final and binding upon both parties
F. Owners to have a lien upon all 6. Если стороны договариваются об аннулировании

cargoes and sub-freights belonging чартера, судовладельцы гарантируют брокерам
to the Time-charterers and any B/L возмещение любых убытков от потери комиссии, но в
freight for all claims under the этом случае размер комиссии не должен превышать
Charter, Charterers to have a lien on размер брокерской комиссии от суммы арендной платы
the vessel for all money paid in за 1 год
advance and not earned
G. In the event of the vessel being 7. Фрахтователи выплачивают арендную плату по

driven into port or to anchorage ставке, указанной в..., за каждые 30 дней, до момента
through stress of weather, trading to возврата судна из тайм-чартера его владельцам. Если
shallow harbors or suffering an аренда не выплачивается, судовладельцы имеют право
accident to her cargo, any detention изъять судно из эксплуатации у фрахтователей, не
of vessel and/or expenses resulting принимать во внимание протесты, не прибегать к
from the detention to be for помощи судебных органов, причем это право
Charterers’ account even if such осуществляется без ущерба для претензий в иных
detention and/or expenses, or the отношениях...
cause by reason of which either is
incurred be due to, or be
contributed to by the negligence of
Owners’ servants
120
I
Exercise 6. Read the sample o f a deadfreight letter. Fill in the gaps using the following
phrases. Translate into your native language
form al notice completion o f loading acknowledge fo u l
please be informed to claim inserted has loaded
Dear Sirs,
__________________________ that the vessel under my command________________

light of deadweight to the amount of 510 metric tons of Methanol.
According to the vessel’s ullages taken upon_________________________ at the
COMCO-Installation at Swansea the cargo totaled 7,990 metric tons of Methanol.
However, you_________________ a quantity of 8,500 metric tons in the Bill of Lading,
which means that there is a difference of 510 metric tons.
We will therefore sign a______________ Bill of Lading.
I herewith submit______________________ , reserving owners’
right________________ deadfreight as they may consider necessary as per covering
Charter Party.
Please____________________ receipt of this letter.
Yours faithfully,
S. Brown, Master of M.T. Comma*123456
(Ullage - незаполненная часть объема(цистерны), пустоты)
Exercise 7. Decide i f the statements below refer to (a) owner; (b) charterer according to
Time charter
1. Provide and pay for all provisions and wages, for insurance of the vessel ____________
2. Take all reasonable steps to maintain the vessel in efficient state in hull and
machinery_________
3. Provide and pay for all fuel and lubricants and transport, water, pilotage, port
charges__________
4. Provide and pay for all deck and engine room stores_____________
5. Provide and pay for loading and unloading of cargoes and cleaning of cargo
tanks__________
6. Provide and pay for custom duties, permits, import duties, clearance
expenses_____________
1. По условиям тайм-чартера судовладелец оплачивает все постоянные

расходы (заработная плата и питание экипажа, содержание судна в надлежащем
техническом состоянии и т.д.), а фрахтователь - все переменные расходы (стоимость
топлива, портовые сборы и расходы, стоимость погрузки и выгрузки).
2. Фрахтователь обязан сдать судно обратно после истечения срока чартера в
том же состоянии, в котором оно было ему передано.
121
3. Фрахтователь выдает капитану необходимый аванс в счет арендной платы
для обычных расходов судна в любом порту.
4. Очистка котлов, если это возможно, должна производиться во время
эксплуатации судна. В противном случае, фрахтователь обязан предоставить
судовладельцу необходимое для очистки время.
5. Фрахтователь может сдать судно в субаренду, известив об этом
судовладельца, но он отвечает за надлежащее выполнение чартера.
6. В тайм-чартере оговаривается, что арендная плата не участвует в
контрибуционном капитале при распределении общей аварии.
122
Unit 18
CONTRACT BETWEEN SHIPOWNER AND CARGO
OWNER
Vocabulary
4- Common carrier - общественный перевозчик; перевозчик на общих для всех
основаниях
4 Private carrier - частный перевозчик; судно, закрепленное на перевозках
грузов частной компании
4- Inherent vice - свойственный, присущий
4 Jettison - выбрасывание предметов (грузов) за борт для спасения судна
4 “Adventure ” - морское предприятие
*4- Bailee - депозитарий - лицо, которому переданы товары на ответственное
хранение; хранитель
■4 Consolidation o f cargo shipments - укрупнение (объединение) мелких партий
грузов.
4- То deviate from the contract - отклоняться от контракта
4 Without undue delay - без чрезмерной, ненадлежащей задержки
The Carrier
- is a party who agrees to carry, on a business basis goods or persons from one place
to another. Most shipowners have the legal status of carrier.
The law recognizes 2 kinds of carrier: the common carrier and the private carrier.
Common carriers
- advertise themselves as being ready to carry goods or passengers, within their usual
trading area, for anyone wanting to employ their services.
- are subject to the common law obligations
- are strictly liable for any loss or damage to the goods they carry, so that effectively
they are the insurer of the goods whilst in their care.
Private carriers
make a special contract with their customers excluding or restricting their strict liability, i.e.
contracting out of the common law obligations by stating their special terms of carriage.
Although the law allows any carrier to do this, the Unfair Contract Terms Act 1977 applies
to the terms incorporated into his contract and provides that any exclusion from liability
must be reasonable.
The terms under which a private carrier contracts out of his common law obligations
must be clearly stated if they are to protect him in law. (Most carriers print their terms on
their Bs/L or other contract of carriage documents).
If a court holds that his contract terms were unreasonable or unfair, a private carrier
may find himself reverting to the position of a common carrier.
As a private carrier, a carrier becomes a bailee of the goods carried; as such he is
only liable for damage or the consequences of delay occurring through his negligence.
123
Most shipowners make themselves private carriers.
Common law obligations o f carriers

All carriers of goods or passengers by sea (both common and private) are subject to
the three common law obligations, which are that:
1. The carrier must provide a vessel which is seaworthy for the purpose of the
contract at the time it is made.
2. The carrier must not deviate from the contract, geographically or otherwise,
without justification.
3. The carrier must ensure his vessel will be ready to load the cargo and proceed on
the voyage with reasonable dispatch (without undue delay). These obligations are implied
conditions and need not, therefore, be expressed in the contract. Even so, they are often
expressed in the printed conditions of carriage on Bs/L
Common law exceptions from liability

Recognising the special nature of the perils facing a carrier by sea, the English courts
have reduced the strict liability of a common carrier to the following six common law
exceptions from liability:
1. Act o f God, i.e. some unforeseen and unpreventable natural event, e.g. lightning
or earthquake;
2. Act o f Queen's enemies, i.e. a state or people with whom the carrier is at war
during the carriage of the goods (but excluding robbers, rioters and pirates);
3. Inherent vice in the goods, i.e. a natural tendency of a commodity to deteriorate
without human negligence, e.g. fruit and fish deteriorating, liquids fermenting, loss of
weight due to evaporation, etc. A carrier will not be liable for ordinary wear and tear in
transit, ordinary loss or deterioration in quality or quantity such as evaporation, but he will
be liable if he aggravates any loss or damage due to inherent vice through a breach of
contract, e.g. by not protecting steel plates from the weather. Difficulty is often experienced
in deciding whether deterioration in perishable goods is due to inherent vice or to bad
ventilation or stowage (for which the ship would be liable);
4. Negligence o f the consignor, e.g. insufficient or defective packing of goods inside
CNTRs or cases;
5. Fraud o f the owner or consignor o f the goods, e.g. where the shipper makes an
untrue statement to the carrier as to their nature or value, or their threat to safety as well (for
sea carrier only);
6. Jettison or their proper General Average sacrifice, e.g. when cargo is
intentionally and properly destroyed or damaged during the voyage in order to preserve the
ship and other cargo from a danger threatening the entire “adventure".
A sea carrier will not, however, be protected by the common law exceptions when
the true cause of the loss or damage to the goods was:
- his negligence, e.g. is not taking reasonable steps to protect cargo from loss or
damage;
- his vessel was unseaworthy at the start of the voyage; or
- the loss or damage occurred while the vessel was unjustifiably deviating from the
contract.
NVOC s and NVOCC s
A non - vessel owning carrier or non-vessel operating carrier (NVOC) operates a
shipping service (usually in the liner /general cargo trades) without owning or operating his
124
own vessel, instead buying a volume of cargo space on vessels owned or operated by one or
more shipowners with whom he contracts as a “shipper”, and then selling that space to
individual merchants.
The NVOC issues his own B/L to each shipper with whom he contracts.
In relation to the merchant, the NVOC is the contractual carrier. In relation to the
owner / operator of the carrying ship, the NVOC is a shipper, and will be issued with a B/L
like any ordinary shipper.
Essentially, an NVOC is a freight forwarder in all but name. (Many freight forwarders and
cargo consolidators advertise as NVOC or NVOCC s).
The expression “NVOCC” means non-vessel operating common carrier. It has legal
definition only in the USA, where a party, contracting as an NVOCC carries the usual
heavy legal burden of any common carrier.
1. How do you understand the term “Carrier" and what obligations has he got?
2. What obligations do common carriers usually fulfill?
3. What are the obligations o f private carriers?
4. What common law obligations are all carriers o f goods subject to?
5. What are common law exceptions from liability?
6. What way does a non-vessel owning carrier operate?
1. Act o f God A. Insurance against negligence or latent deficiencies

2. Perils o f the sea B. Types of cargoes that are transported from a specific
port to prevent smuggling
3. Negligence clause C. The owner of the vessel can’t be held responsible for
damage sustained to the vessel due to natural disasters
4. Lawful trade D. Deficiencies that can’t be detected with the naked eye
5. Latent defects E. Damage that was caused by seawater, storm or
collision
1 2 3 4 5
Exercise 3. Scan the text and list the verbs that take the nouns in the right column as
objects________________________________ __________________________________
VERBS NOUNS
To deteriorate fruit
goods
damage
statement
ship/ vessel
loss
services
B/L
cargo
liability
contract
125
Exercise 4. Here is a list o f some o f the major participants in the shipping procedure:
Shipowner, Shipper, Consignee, Port Authority, Stevedores, Customs House, and
Forwarding Agents. Match the definition and the term
D EFINITION NAM E OF PARTICIPANT

1. Company engaged in loading/discharge
and stowage of cargo on board ship
2. Company that operates, manages or owns
vessels and undertakes the carriage of goods
by sea
3. A shipping agent or merchant that
provides the goods and books shipping
space with the owner
4. A firm or persons authorized to receive
the cargo and to whom it is consigned
5. A governmental or administrative body
governing the safety and arrangement of
port operations
6. Persons or company engaged in taking
care of cargo or personal effects from one
place to another by sea, land or air; also
dealing with customs formalities on behalf
of the ship
7. The place where imports are entered,
clearance papers are obtained, and other
official ship’s business is transacted
Exercise 5. Scan the text on the beginning o f shipping procedure. Fill in the gaps using
the following nouns. Translate into your native language
(Wharfinger - начальник причала; представитель судовладельца на причале)
Cargo Port Authority Receipt agents tonnage bills o f lading

shipper Schedule voyages draught docks shipment wharfinger
shipping note
The shipping procedure starts when cargo liner, operating on ____________

_______________ , at her terminal port, and the owners or________________ have
estimated the date when she will be ready to start loading for the next voyage.
First, application is made to t h e ___________ _____________________ for a berth
giving the date she will proceed alongside and later, when it is known, the actual time,
particulars of draught, information regarding t h e __________________ and type of
______________ she will work, and the maximum ____________ _ anticipated when
loading has been completed.
At the appointed time, the goods are transported to the
________________ accompanied by a _____________________ ___________ made out
in duplicate, which is the wharfinger’s authority to receive the goods and store them
before____________________ . This note gives details of marks, references, number and
126
description of packages, weight, measurement and port of destination. Along with this note
copies of the Shipping Order and Mate’s______________ are completed.
The note is signed by the _______________ and returned to the
_________ , or his representative, who then lodges__________ ______________
with the shipowner or agent.
Exercise 6. Translate from English into your native language

1. A common carrier. “Negligence of the consignor” means negligence of the
shipper or sender of the goods, e.g. where insufficient or defective packing of goods inside
containers or cases leads to damage. “Fraud of the owner or consignor of the goods” is
where the shipper makes an untrue statement to the carrier as to their nature or value, or
their threat to safety (for sea carriers only).
2. A private carrier usually inserts in his contract all of the common law
exceptions plus others such as loss, damage or delay resulting from a number of reasons,
barratry including. Barratry is a wrongful act willfully committed by the master or crew to
the prejudice of the owner or charterer.
3. A non-vessel-operating carrier (NVOC), which is a company operating a goods
shipping service using space it has hired on another company, ship. Some NVOCs hire
containership slots from shipowners (for which purpose the Slothire charter party was
developed), while others charter entire ships. An NVOC thus has one contract, as carrier,
with the exporter/merchant, and another, as shipper, with the owner or operator of the
carrying ship (sometimes called the performing carrier). Numerous NVOCs operate in the
liner trades.
127
UNIT 19
BILL OF LADING
Part I
Vocabulary
4- Negotiable - оборотный
4- Shipping note - ордер на погрузку
4- To tally - подсчитывать
~4 Tallyman - тальман
4 In triplicate - в 3 экземплярах
4 ‘A pparent order and condition ’- надлежащее по внешнему виду состояние
4 Blank bill o f lading —незаполненный коносамент
4 Endorsement - индоссамент, передаточная надпись на обороте документа
4 Contractor - подрядчик
4 “Accomplished” - выполнено
4 Void - недействительный
4 Delivery order - деливери-ордер, сдаточный ордер
4 То tender - предлагать; представлять
4 Tenor - текст документа; срок действия

A B/L - is a receipt for goods either received (before shipment) or shipped on board.
- is good evidence of the existence and terms of a contract between the shipper and
carrier. (A contract of carriage may exist without issue of a B/L, however).
- is a document of title, signifying that the holder has the legal right to possession of
the goods it describes.
- may, depending on how it is made out, be negotiable, i.e. transferable to a third
party so as to effect transfer of title to the goods it describes, (see annex 6,7, 8)
For a better understanding of the main functions of a B/L it is useful to know the
basic documentary procedures used in shipping operations.
Dry cargo tramp shipping procedure
1. Exporter /shipper makes a goods sales contract with an overseas buyer/ consignee.
2. Carrying ship is voyage chartered, proceeds to loading port, arrives on berth.
3. Shipping note containing details of goods (as stated by shipper) is presented to
Chief Mate or Master.
4. Goods are loaded (i.e. shipped) on board. Break bulk cargoes (i.e. bagged, baled,
crated, etc. goods) are tallied on board by ship’s tally clerk; if in bulk, ship ascertains in-
taken cargo weight or quantity by some means.
5. Chief mate compares ship’s tally or in-taken cargo tonnages with details on
shipping note and issues a mate’s receipt from ship’s triplicate book. Mate’s receipt contains
accurate and truthful details of quantity and condition of goods, i.e. their ‘apparent order
and condition’ with references to any shortage, damage, etc. One or more copies are given
to shipper’s representative; ship retains one copy in book. (In practice the port agent may
issue mate’s receipts for the carrier).
6. Shipper obtains a full set of blank bills of lading (e.g. “Congebill” forms, see annex
6-8) from carrier, prints or types in details of shipped goods exactly as stated on mate’s
receipt. Set most often comprises 3 originals, but sometimes fewer and very occasionally
128
more, with several copies (marked “Copy non-negotiable”) for various parties and purposes
(often including one marked “Captain’s Copy”).
7. Shipper tenders all original bills for signing by or on behalf of the carrier, i.e. by
carrier’s head office, port agent or ship’s master.
8. Person authorized to sign carefully checks details inserted by shipper to see that
they correspond to those in ship’s copy of mate’s receipt, stamps (writes any required
endorsements,) then signs all original bills in set.
9. Full set of signed original bills is issued to shipper together with copies as required.
(Mate’s receipt, as issued by ship, may be demanded by carrier before issue of bills of
lading). Master retains one copy of B/L on board as “Captain’s Copy”).
10. Ship sails from loading port.
11. Shipper sends full set of B/L to consignee (usually in exchange for payment for
goods, but as agreed in sales contract). At least one bill should be posted in a later post than
others in case all are lost/ stolen.
12. Ship arrives at discharge port.
13.Consignee, or receiver acting as consignee’s agent (e.g. haulage contractor) proves
his identity to port agent and presents one original B/L, duly endorsed to him. Freight,
demurrage or other charges owed to carrier are paid to agent.
14. Agent stamps presented B/L “Accomplished”; all other original Bs/L in set are now
legally void. Agent issues delivery order to consignee or receiver to enable collection of
goods from quay, warehouse, tank, ship, etc.
15. Delivery order is presented to warehouseman, ship, etc. Goods are released into
possession of consignee or receiver and become legally delivered.
The above is a simplification of the procedure in modem shipping operations. The

documentary credit system is often used to facilitate early payment of the seller by the
buyer, and this complicates the journey of the Bs/L, since the original bills must be
transferred to specified banks as security for their credit advances, made out in such a
way that each bank involved has a good legal title in the goods represented by the B/L.
1. What kind o f document is a bill o f lading? What are its functions?

2. What does this document signify?
3. In what case may a bill o f lading be negotiable?
4. What are the basic documents used in shipping operations? Name them.
5. What are the parties in the shipping procedure?
6. What set o f documents must be obtained by the shipper?
7. What is the function o f an agent in the procedure?
8. Who issues the delivery note and why?
Exercise 2. Match the parts o f the bill o f lading with the descriptions below
1. The date of the contract between the exporter and the shipping company
2. The name of the importer
3. Details of the goods
4. The name of a ship
5. Money paid to the shipping company before the journey
6. The place where the goods are unloaded
7. The name of the shipping company
8. The place where the goods are loaded
129
CODE NAME- ‘CONGENBIU', EDITION 1994
■в Shipper BILL OF LADING
© - TRANSFA b Co. T O BE U S ED W ITH CHARTER PARTIES
"♦ C o n s ig n e e 689381
© ASIAN GOODS IMPORTING EMPORIUM
8/L No,
Notify Address
Telefax
Unit 18, Walterstown
© - Industrial Estate, Dover
1
—# Vessel — # Port o f loading
^ Star of the East Bangkok
cT/ —— ♦ Port of discharge
j Dover
у : Shipper s description of goods Gross weight
100 cardboard cartons of porcelain items 1000 kg
150 cardboard cartons of Christmas decorations 150 kg
200 cardboard cartons of rice cookers 700 kg
j Freight payable as per f . Qi

C U I D D C n a u b * ^ or t o i 1,',s<!'n8 * apparent
j CHASTER-PASTY dated ......... О Г П Г I t L J good order and condition on board
the Vessel for carnage to the Port of Discharge or so near
thereto *s she may safely get the good* specified above.
1 FREIGHT ADVANCE Weight, measure, quality, quantity, condition, contents and
i Received on account o f freight value unknown,
IN WITNESS whereof the Master or Agent of the said Vessel
| Paid has signed the number of M s of lading indicated below all
of this tenor and date, any on* ofwhichbeing accomplished
j Time used for t0 ®dmg.,.....+,.lfA..,,,.days,...... the others Shall be void.
FOR CONDITIONS OF CARRIAGE SEE OVERLEAF
freight payable si Fiaee and date of issue
Bangkok Bangkok
Number of original BsA. Signature
T Park
130
Exercise 3. Scan the text and list the verbs that take the nouns as the subject and the
object. The left column represents the main participants o f the shipping procedure. Verbs
can be used in active and passive voices. Follow the scheme N+V+N
Noun Verb Noun
e.g. 1. SHIPPER tenders_____ B/L_____________
■<
V.
2. CHIEF MATE
3. AGENT/
AUTHORITY
<
4. CONSIGNEE
-<
Exercise 4. Scan the text “What is “apparent order and condition?”. Fill in the gaps
using the following verbs. Translate into your native language
Refers to be verified stipulates to withstand to protect issue

packed shipped
Article III Rule 3 o f the Hague- Visby R ules __________________ that carriers must at
least state on the bill o f lading the “apparent order and condition” o f the goods
___________________ if the shipper so demand. This article discusses how members can
balance their duty to customers and their right____________________ themselves from cargo
claims.
“Apparent order and condition” ____________________ the condition o f the goods
as would be apparent on reasonable examination, and not the internal condition o f the goods
on shipment or their quality. If you receive consignments in irregular or doubtful condition,
the Club recommends the following guidelines:
Firstly, you should note that when a shipment is stated to be in “apparent good order and
condition”, it is also taken to mean it is properly_________________and in such condition as
___________________ the ordinary incidents o f the voyage. If you receive a consignment
131
which is obviously insufficiently packed, you must not____________________ a B/L without
reservation.
Secondly, the terms o f reservation must be as clear as desirable.
Finally, most Bs/L contain a printed clause such as “all particulars as furnished by
the shippers but unknown to the carrier”, or “weight, measure, quality, quantity, condition,
contents, and value unknown”. These statements are helpful to protect the carriers when the
cargo details cannot _____ _______________________ by reasonable shipping practices and
members should make sure that their standard transport documents contain such clauses.

1. Перевозчик выдает грузоотправителю по его требованию коносамент,
который служит доказательством того, что перевозчик принял обозначенный в нем
груз.
2. Содержание коносамента определяет правоотношения между перевозчиком
груза и его получателем. Коносамент также определяет, кому должен быть выдан груз
в порту назначения, т.е. является товарораспорядительным документом.
3. Лицо, в чью пользу сделана передаточная надпись отправителя или
получателя, может в свою очередь сделать такую же передаточную надпись в пользу
другого лица, последние - в пользу третьего лица и т.д. Груз выдается лицу,
указанному в последней передаточной надписи.
4. Пока судно в пути, коносамент переменить нескольких владельцев.
Покупатель судит о товаре по записям, сделанным в коносаменте. Происходит купля-
продажа не груза в натуре, а грузовых документов.
5. Обычно в международной торговле при продаже на условиях CIF продавец
передает покупателю 3 документа: коносамент, страховой сертификат и счет-фактуру.
132
UNIT 20
BILL OF LADING
Part II
Vocabulary
4 Superimposed - дополнительные
4 To indemnify - гарантировать возмещение ущерба
4- A letter o f Indemnity (or “back letter”) - гарантийное письмо
4- To be unsound - непрочный, в ненадлежащем состоянии
4* A “through” B/L - сквозной коносамент
4- A “received” B/L - коносамент на проверенный, но не погруженный груз
4- A “shipped ” or “on board” B/L - коносамент на груз, принятый на борт
судна
4 A “straight” B/L - именной коносамент
4- An “order” B/L - ордерный коносамент
4- A “groupage ” B/L - сборный коносамент
4 A house B/L - внутренний коносамент
4 A derogatory clause - нарушающий (права)

A clean B/L is a B/L bearing no superimposed clauses stating a defective condition
or shortage o f the goods. It states that the goods have been received “in apparent good order
and condition...”, without further remarks as to their condition.
A dirty B/L, also known as a “claused” with remarks such as “tom bags”, “rusty
drums”, etc. A full set o f “clean on board bills o f lading” is normally demanded as a
condition o f a bank's letter o f credit, and if not issued will prevent early payment o f the
exporter by the bank. Pressure may therefore be exerted by a shipper for clean Bs/L to be
issued, even where these would not be justified by the actual condition or quantity o f the
goods.
A letter o f Indemnity (or “back letter ”) may be offered by the Shipper promising to
indemnify the master or carrier against any loss or liability as a consequence o f signing a
clean B/L. However, acceptance o f a Letter o f Indemnity o f this type in return for clean
Bs/L make the master a party to an act o f deception or fraud on banks, consignee / buyer,
and insurers, since it is an attempt to obtain payment for goods knowing them to be
unsound. There may be personal criminal liability for fraud on the part o f the carrier and the
master, and a heavy financial liability on the shipowner.
Types o f B/L
B/L forms are produced in many styles by shipping companies, shippers, charterers,
freight forwarders and organizations such as BIMCO.
A “long-form” B/L has spaces or boxes on its front for typed details and numerous
printed conditions o f carriage on its back. Most liner shipping companies print their own
long-form bills o f lading with their company conditions o f carriage on the back. Typically
they contain about 30 printed and numbered clauses. The majority o f clauses are common to
the bills o f most major carriers, although the wording may differ.
133
А “short-form ” B/L has only a few standard terms printed on it avoiding the need
for shippers to hold stocks o f Bs/L for every carrier they use, so that they can prepare the
B/L with the required details before presentation for signature.
A “combined transport B/L ” covers carriage from door-to door by several modes o f
transport, which is common in many liner services. The combined transport operator (CTO)
takes responsibility for the goods throughout the entire journey and issues the CT bill o f
lading at its start.
A “through” B/L is issued when the carriage will involve both sea and other
transport models, but different carriers will be involved at each stage, e.g. a railway
company, a shipping company, a road haulier. The B/L is issued by the sea carrier but he
states on it that he only accepts responsibility for the goods during the sea passage. The B/L
is valid for the whole journey and prevents each individual carrier having to issue its own
transport document.
A “received” B/L is issued for goods received at a freight depot or some other place
before loading on the ship. This type o f B/L may be issued by a freight forwarder and
covers the goods while they are in his care.
When the goods are eventually shipped the “received” B/L must be replaced by a “shipped”
B/L.
A “shipped ” or “on board” B/L is issued by the carrier after the goods are loaded on
the carrying ship. Banks may insist on “shipped ” Bs/L as being safer than the received
version.
A “straight” B/L can't be negotiated. Only the consignee stated on the B/L can take
delivery o f the goods.
An “order” B/L can be negotiated by endorsement. Banks only usually accept
“order” Bs/L.
A container B/L is used for the transportation o f containerized goods (goods packed
in standard-sized CNTRs which are then sealed and not opened until they reach their
destination. These CNTRs do not have to be inspected by the customs authorities when
crossing borders). Such a B/L covers the road and/ or rail transport necessary to get the
goods to and from the ports o f shipment and destination.
A “groupage” B/L is used for grouped consignments. The B/L lists the forwarding
agent who arranged the grouped consignment as the shipper, and the forwarder in the
importing country as the consignee. The forwarding agent then issues a house B/L to each
o f the exporters whose goods are included in the grouped consignment. The house B/L then
serves as the collection document for the importer.
Signing Bs/L
The master or his authorized deputy should always check the following when signing
a B/L:
1. The goods have actually been shipped (which may be determined from the ship's
copy o f any mate's receipt issued; this should be identical to the original mate's receipt
issued to the shipper, which should be presented by the shipper when requesting his Bs/L;)
2. The date o f shipment is correct, i.e. as stated on the mate's receipt or standard
shipping note;
3. The B/L is not marked “freight paid” or “freight prepaid” if not true;
4. Any clausing o f the corresponding mate's receipt is also contained in the B/L;
5. Reference is made to the charter party where one exists;
6. Any C/P terms do not conflict with the B/L terms;
134
I
7. T h e n u m b e r o f o r ig in a l b ills in th e se t is s ta te d .
Every original in the set must be signed.
S h ip ’s agents and Bill o f Lading

S h ip ’s a g e n ts s h o u ld b e m in d fu l o f th e f o llo w in g p o in ts w h e n h a n d lin g b ill o f la d in g :
1. Is the B/L an “on board” or a “received for shipment” bill o f lading?

2. Is the B/L properly endorsed if it is an “order” B/L?
3. Are the alterations or clauses in the B/L properly authenticated by the Master, carrier or
his agent and has the “alteration approved” stamp been added to the alteration?
4. Is there an “on deck” remark?
5. Is there reference to a C/P on the B/L?
6. Is the B/L “clean”, i.e., does it have any derogatory clause referring to the condition,
packing or number o f packages?
7. Is there a transhipment clause or remark?
8. Is there a “notify” address?
9. Are the loading and discharging ports properly named?
10. Do the references to the payment o f the freight agree with the manifest and has the
freight been collected or is it still due?____________________________________________
1. What does a clean B/L state?
2. What does a dirty B/L mean?
3. In what case may a letter o f Indemnity be offered?
4. What does a “combined" B/L cover?
5. What is the difference between “long-form ” and “short-form ” Bs/L?
6. When is a “through ” B/L issued?
7. For what kinds o f goods are a “received” B/L issued?
8. When is a “shipped” or “on board” B/L issued?
9. Can a “straight ” B/L be negotiated?
10. For what purpose is a “container” B/L used?
11. Who issues a “house” B/L?
Exercise 2. What kinds o f B/L are these?

Consignee Bulk cargo to be sent Case No. 3
P. Brown or order from London to missing
Copenhagen via Hamburg
1 2 3
Goods in Liverpool Consignee Goods received in

awaiting shipment P. Brown apparent order and
condition
4 5 6
Goods shipped CNTR to be sent from Part - loads shipped by

and waiting to depart London to Paris via Dover Newton’s Forwarding
and Calais Agency
7 8 9
135
Exercise 3. Match the definition o f type o f B/L and the term from the list below. There are
two extra points
Claused B/L, Received B/L, Shipped B/L, Clean B/L, Through B/L, Groupage B/L
D EFINITION TYPE OF BILL OF LADING

1) B/L issued to a shipper when he delivers
the goods into the custody o f the shipowner
or his agent before the ship has arrived or
before the ship is ready to receive the
goods;
2) B/L covering the carriage o f goods to its

destination partly by sea and partly
overland, or where sea transport occurs by
two or more ships;
3) B/L containing clauses that the goods or

the packing are not satisfactory, or that the
contents, weight, measurement, quality, or
technical specification o f the goods are not
known to the carrier;
4) B/L issued after the goods have actually

been loaded into the ship;
5) B/L bearing no clauses or endorsement

as to the defective condition o f the goods or
packaging
6) B/L referring to the goods for a number

o f receivers, but the goods is dispatched and
carried as one consignment only. For
various shippers/receivers under the same
B/L separate Certificates o f Shipment are
issued. Especially suitable for the shipment
o f containers. Opposite to Straight or Order
B/L
7) B/L issued when the goods are carried

by two or more ships
8) B/L bearing the words “or his or their

assigns”, also referred to as an “order B/L”
Exercise 4. Fill in the gaps in the complaint about unclean bills o f lading using the
following words. Translate into your native language
To fa il damage consignment apparent to be due should
a letter o f indemnity to note insurance certificate negotiable
notation to review
136
Dear Sir or Madam,
We have received the B/L and________________________ for the_______________
o f 50 tons o f palletized teak on board nuv. “Colombo”, which________ to dock in Liverpool at
the end o f this month.
We________ with dismay, however, that the Bs/L include the_____________ ”6 pallets
damaged”. As you well know, our company sells timber “on water” to European importers and
unclean B/L is only_________________ in exceptional cases. We_________ to understand
why you didn ’t provide the shipping company with a ______________________ _ as soon as it
was__________________ that the goods were not in perfect condition.
It only remains to be hoped that the_______________ is to the palates and not to the
timber.______________ the consignment prove unsaleable we will______________all future
contracts with your company and seek redress for the loss o f trade.
Yours faithfully*12345
( to seek redress - требовать удовлетворения)

1. B практике международной торговли преобладают ордерные коносаменты,
так как они упрощают передачу прав на груз. Именные коносаменты выписываются
преимущественно на ценные грузы (драгоценные металлы и камни, пушнина).
2. При наличии чартера в коносаменте всегда делается ссылка на его условия.
При трамповых перевозках массовых грузов коносаменты, как правило, готовит
грузоотправитель по форме, обусловленной чартером или по согласованной форме.
3. Для того, чтобы уменьшить возможные убытки для грузоотправителя,
которые могут возникнуть от отметок о некачественности груза или дефектов
упаковки, можно предложить ему на всю партию два коносамента: один - на груз,
свободный от всяких недостатков, другой - на ту часть, которая имеет повреждения.
Этот вариант возможен только в том случае, если дефекты присущи лишь небольшой
части груза.
4. Обычно перевозчики, договаривающиеся о совместном участии в перевозке
груза по сквозному коносаменту', обусловливают в коносаментах и в своих взаимных
обязательствах, что каждый перевозчик отвечает только за тот участок пути, на
котором он совершает перевозку.
5. На первой странице коносамента приводятся некоторые условия перевозки, а
на второй - сведения о грузе. Пункт 1 обусловливает, что все условия чартер-партии,
включая статью об арбитраже, считаются включенными в коносамент и что
перевозчик не несет ответственности за недостачу и повреждение груза до погрузки
на судно и после выгрузки с него. Пункт 2 содержит текст оговорки «Парамаунт», о
применении коносаментных правил от 25 августа 1924 года. Пункт 3
предусматривает, что при распределении общей аварии применяются Йорк-
Антверпенские правила и грузовладелец обязан внести долю общей аварии даже в
случае вины, небрежности или ошибки капитана, лоцмана, команды. Пункт 4
содержит текст оговорки Джейсона. Пункт 5 содержит текст оговорки о смешанной
ответственности при столкновениях.
137
UNIT 21
MARINE INSURANCE
Part I
Vocabulary
4 Insured - застрахованный, страхователь
4- Insurer (underwriter) - страховщик
4- Insurance adjuster - оценщик размера страхового убытка
4* Insurance certificate —страховое свидетельство
4 Premium - страховая премия; страховой взнос
4- Hull and machinery insurance -страхование корпуса и машинного отделения
4- То suffer a loss - понести убытки
'4- То claim a compensation - требовать возмещения
4- То take out insurance - заключить страховку
4 Act o f God - стихийные бедствия, действия непреодолимой силы
4- Vermin —вредитель
4 Cover - (зд.) покрытие
4 Coverage - страхование, страховое покрытие
4 Cover(ing) note - ковернота, временное свидетельство о страховании
4 Total estimated call —требование взноса
4 Advance call - предварительный взнос
4 Supplementary call —дополнительный взнос
4 Refund - возмещение убытков
4 Income —доход
4 Outgoing(s) - расходы, издержки
4 Claim - иск о возмещении убытков
4 Expenses- расходы
4 Indemnity - возмещение, гарантия от убытков
4 Conveyance - перевозка, доставка, транспортировка

Marine insurance is the oldest form o f insurance. Back in the Middle Ages, ships
were the most important form o f transport, and their cargo was very valuable. Sometimes,
traders would even risk their whole capital with just one shipment. So somebody came up
with the idea o f forming a group to spread the risk - and marine insurance was bom. Very
generally, marine insurance works as follows:
Insured В Receives
IN SU R E D A suffers a loss compensation
Ufi
Ж
чз
IN SU R E D В a
ft IN S U R E R S 100 USS
3
я on their t
IN S U R E D C property Insurer
Insured m akes a
claim
rp,?!
(i*
ё
138
The ship and cargo owners ( the insured) each pay a percentage o f the value o f their
goods (the premium) into a fund administered by the insurance Co ( the insurer). Should one
o f the insured then suffer a loss, he can claim compensation from the insurer for the loss;
this means he will receive money from the fund to the value o f the loss he suffered.
Some o f the risks against which it is possible to take out insurance include:
- So-called Acts o f God such as fire, floods, earthquakes, etc;
- Loss o f the goods through being washed overboard;
- Damage to the goods, e.g. by breaking, bending, etc.;
- Damage to the goods by vermin such as rats and mice;
- Loss o f the ship on which the goods are being transported, e.g. by sinking or
collision with another ship;
- Loss o f the goods through theft or non-delivery;
Standard insurance policies generally do not cover political risks as war and strikes.
However, it may be possible to obtain insurance cover o f these risks by paying an extra or
higher premium.
The party obliged to obtain the insurance cover will depend on the terms o f the sales
contract.
The London marine insurance market is the largest insurance market in the world
covering marine risks. It comprises:
- Lloyd’s (the Lloyd market) and
- Companies represented at the International Underwriting Association (IUA)
(sometimes referred to as the Companied market).
Lloyd’s is not a company, but a society o f individual and corporate members with
uniform practices and procedures, regulated by strict rules. It provides facilities for the
transaction o f insurance business. Lloyd’s is involved in 4 areas o f business: marine (18%
o f Lloyd’s business in 2001), non-marine (59%), aviation (7%) and motor (16%).
Members o f Lloyd’s provide the capital which supports the risks underwritten at Lloyd’s.
They are either wealthy individual members (called “names”), who trade with unlimited
liability, or corporate members who trade with limited or unlimited liability. In 2001 there
were 2,852 individual members and 854 corporate members.
P&I clubs (properly called protection and indemnity associations), o f which several
are based in the UK, also provide marine insurance. “Protection” in the title originally
referred to shipowners’ protection from the one fourth o f collision liability that,
traditionally, London hull and machinery insurers didn’t cover, while “indemnity” referred
to the club’s indemnity, or compensation, for liability to cargo under a contract o f carriage.
They are associations o f member shipowners and charterers, owned and controlled by the
insured shipowner or charterer members, for the purpose, basically, o f mutual insurance
against third party liabilities which arise in connection with the operation o f ships. P&I
clubs include the 13 members o f the International Group o f P&I Clubs (and their 4 associate
clubs) and a member o f small independent clubs.
Whereas with hull and machinery insurance the cost o f the insurance (the premium)
is fixed at the start o f the period o f insurance, a P&I Club member will not know exactly
how much his insurance will cost for at least a year, and perhaps not for 4 or 5 years.
Each P&I Club sets a premium rating for an individual owner reflecting the risks
against which he requires cover, his fleet’s ship types, ages, GRT (Gross Registered
Tonnage), trades, flags, crew nationality exposure to risks and other factors including the
member’s claims record and the likelihood o f large claims in the coming year.
139
The member is advised o f his total estimated call for the next 12 months; this
comprises an advance call and a supplementary call. Advance calls are levied on all
members at the start o f the P&I year, which in February, 20. Later in the year, if claims have
been heavier than expected, the managers will ask members for a supplementary call to
“balance the books”. Clubs aim to be accurate in their predictions o f future. Refunds are
made when income (calls+investm ents) exceeds outgoings (claims+expenses).
P&I Clubs retain correspondents at numerous ports worldwide.
In all cases correspondents:
- are, for legal reasons, representatives, and not agents o f the club;
- will attend members’ vessels when so requested by the master or agent to protect a
member’s interest;
- may appoint surveyors to inspect damage, etc.
1. What’s the simplest scheme o f marine insurance?

2. In what cases is it possible to take out insurance?
3. What risks can be covered by insurance? Why do you think political risks are not
usually covered by marine insurance?
4. What organisations provide marine insurance?
5. What does Lloyd’s provide ?
6. What are the main activities o f P&I club?
7. Who can become P&I member?
8. How is a premium rating set for an individual owner?
9. What calls should be paid by P&I members?

1. Insurance adjuster A. A demand by an insured party on the insurer
for payment under an insurance policy
2. Insurance policy B. A short printed record providing that insurance
money has been paid and giving insurance
protection until a proper insurance contract is ready
3. Insurance premium C. A written contract by which the insurer in return
for a payment binds him self to pay the insured
a certain sum o f money when a stated event happen
4. Insurance certificate D. A person employed by an insurance company to
settle claims under policies issued by the company
5. Document o f title E. Money paid by the insured to the insurers under
the conditions in an insurance policy
6. Insurance claim F. A short document issued by an insurance company
to an insured party, that an insurance contract
covers the insured against certain stated risks
and mentions the essential conditions o f the policy
7. Cover note G. A document that gives the holder a right to deal
with the property to which the document relates as
though he owns the property
1 2 3 4 5 6 7
140
Exercise 3. Study an extract from the Certificate o f Insurance and answer the questions
ORIGINAL C L A IM S S E T T L E M E N T
IN S T R U C T IO N S
1. Lloyd's Selling Agent nearosi destination »s
»uthOfr*ftd to »<i»ust ami on betel* <?f tt»e
Underwvtiais. and :o pyrdiaae on behalf of the
TH IS CERTIFICATE Corporation ot Uov<n. *n accordance votn Lloyd's
REQUIRES ENDORSEMENT IN Standing Regulations tor the Settlement ot Claims
Abroad, any claim which may arise on this
THE EVENT O F ASSIGNMENT Certificate
2, И Itoyrfs Agonts ate net to deal w4h claims. A
should Dr dearly marked by an X in the atâceot
□ bo* and claim paper; sent »o A. Snort A Co Ltd.

l London Road. London EC£> IOC.
Certificate of Insurance No. с 0000/

ThtS i s t O C e r t i f y that there has been deposited with the Council of Lloyd's a Contract effected by A S h o r t A C o L td . Lloyd's, acting on of
of
behalf B o d g it a n d S c a r p a Ltd., with Underw riters at Lloyd’s, for insurances attaching thereto during the period commencing the F ir s t day of M a tch .
of
1997. and ending the T w enty -eighth day February. 199.S, both days inclusive, and that the said Underw riters have undertaken to issue to A S h o rt A Co.
Ltd.. Policy/Polkles of Insurance at Lloyd *s to cover, up to U S S 5 .0 0 0 .0 0 0 (o r e q u iv a le n t in o th e r cu rren cies), in ail by any one s te a m e r a n d /o r co n veya n ces,
or tend in g b y a ir a n d /o r p o st. G e n e ra l M erch a n d ise a n d /o r G oods a n d /o r E q u ip m e n t o f a n y n a tu re w h a ts o e v e r in c lu d in g b u t n o t lim ite d to Я к е . Sugar. M o to r
Spare P a m . B icycles. G e n e ra to r Sets. R a w Jute. J u te G oods, fr o m any port o r ports, place or places la th e World, to any port o r ports, place or places in
the World, inc lu d in g a ll tra n sh ip m e n ts a x a n d w hen o ccu rrin g , and that B o d g it a n d S c a rp a U d .. are entitled to declare against the said Contract insurances
attaching thereto.
««kute Racboective Contemns»юг. Exclusion Clause,

««кию RepJacemsnt Clause
Underwriters agree losses, if any. shall be payable to the order of BODGIT AND SCARPA LTD, on surrender of this Certificate.
In the event of loss or damage which may result in a claim under this Insurance, immediate notice must be given to the Lloyd’s Agent at the p ort or
place where the loss or damage is discovered in o rder that he may examine the goods and issue a survey report. The survey agent will normally he
the Agent authorised to adjust and settle claims in accordance with the terms and conditions set forth herein, but where such Agent docs not hold the
requisite authority, he will be able to supply the name and address of the appropriate Settling Agent.
(Survey fee is customarily paid by claimant and included in valid claim against Underwriters.)
SEE IM PORTANT INSTRUCTIONS ON REVERSE

This Certificate not valid unless the Declaration be signed by
ВОО0ГГ AND SCARPA LTD
Bickers A Short A Со, ltd . Signed

1 London Road. London EC9 IOC LLOYDS Authorised Signatory
930SCM
141
1. Who will claim compensation if there is damage or loss?
2. Who are the brokers on this certificate?
3. To what destination is the consignment covered?
4. What is the total cover for the consignment?
5. What should be done in the event o f loss or damage?
Exercise 4. Translate into your native language

The Marine Insurance Act 1906 refers to a marine adventure which is basically a
voyage. A marine adventure occurs when a ship, cargo or other moveables are exposed to
maritime perils, i.e. are at sea or in port. The above Act defines a contract o f marine
insurance as “a contract whereby the insurer undertakes to indemnify the assured, in the
manner and to the extent thereby agreed, against marine losses”. Because o f the difficulty o f
putting a value on ships at sea or on cargoes in transit, they are valued at the commencement
o f the risk, and the insurers use that value to determine the measure o f indemnity they will
give the assured.
Exercise 5. Read a request fo r marine insurance quotation. Study the details and define
the reason for composing a letter. Translate into your native language
(AR -All Risks)
K E N TjCLA R K E ^CO .lTD

SOUTH B A N K H O U S E - B O R O U G H R O A D L O N D O N SE 1 OAA
T E LE PH O N E : + 4 4 (o)20 7 9 2 8 7716 •FACS I M I L E: + 4 4 (o )2 0 7 9 2 8 7111
Email: simpsonj<®kencia. corn
Facsimile
To W orldw ide In su ran ce Ltd
Fax 0207263 6925
From ID. Sim pson
Date 15 M ay 2 0 -
Pages 3
Subject D elta sh ip m e n t
We w ill be sen d in g on b e h a lf of o u r clients. D elta C om puters Ltd, a

c o n sig n m en t of 20 co m p u ters to N.Z. B usiness M achines Pty, W ellington,
N ew Zealand. The c o n sig n m en t is to be lo ad ed on to th e N orthern Cross,
ex-Tilbury 18 M ay due W ellington 25 June.
D etails of packing a n d values are attach ed . Please q u o te AR p ort-to-port

rate.
We w ould ap p reciate a p ro m p t reply.
J. V. SimfHOiv
J.D. Sim pson (Mr)
Supervisor
142
Exercise 6. Read the reply to the letter, quotation fo r marine insurance.
Define the terms o f payment. Translate into your native language
C h a ir m a n
WORLDWIDE INSURANCE Ltd A.L Galvin а с а F IS
. Л, W o rldw ide H ouse, Voriey Road, L ondon N 1 9 5HD M a n a g in g D ire c to r
"$ -*1*4.1- P.R. Erwin C IS
Telephone: + 4 4 (0 )2 0 72 6 3 6 2 16 D ire c to rs
F a x : + 4 4 (0 )2 0 72 6 3 6 9 2 5 L. Swanne, T.R. Crowe mc
Email: d.adair@ w orldw ide.co.uk H.B. Sidey ma
FAX
To J. Simpson - Kent, Clarke & Co.

Ref 3 9 8 2 /1 3 0 9 8
Fax 0 2 0 7 9 2 8 7111
Subject Delta shipm ent quotation

P ages 2
Dear Mr Simpson
Thank you for your fax of 15 May regarding the above cover.
I notice the net amount of the invoice is £22,000, and payment is by letter of
credit. I would therefore suggest a port-to-port AR valued policy for which
w e can quote £4.35p%.
We w ill issue a cover note as soon as you have completed and returned the
attached declaration form.
Yours sincerely
Vamdx Adair
David Adair
Manager
Quotations Department
A declaration form gives the insurance company information about the shipment so
they can prepare an insurance certificate.
143
Exercise 7. Fill in the gaps in the letter on taking out insurance cover using the following
English equivalents
То provide to accept a quotation consignment to forward

stipulation cover seaworthy packing on or after
Sovereign Assurance Ltd

London Regional Marine Branch
24 Lime Street
LONDON
Dear Sirs
Thank you for your quotation o f 10 April for warehouse to warehouse (страховое
покрытие) for а (партия товара) o f 50 bales of raw silk from Liverpool to Marseille to be
shipped (вуказанный день или после него) after June 1st.
We are pleased (принять Ваше предложение) and would request (отправить) the
necessary documents to us for the policy to be signed.
We have taken note o f your (условие) that (упаковка при доставки морем) is necessary
and will ensure that this is (обеспечивать).
Yours faithfully*1234

1. Клубы взаимного страхования имеют представительства во всех крупных
морских портах мира.
2. Самым существенным элементом взаимного страхования является
возмещение убытков за недостачу или повреждение перевозимых грузов. Клубы
также возмещают судебные издержки и расходы на ведение арбитражных дел.
3. Членский взнос устанавливается в зависимости от застрахованного тоннажа.
Членский взнос состоит из двух частей: предварительный взнос и дополнительный
взнос.
4. В страховых случаях капитан застрахованного в клубе судна через судового
агента должен обратиться к местному корреспонденту клуба. Корреспондент может
потребовать выписки (extracts) из судового журнала, показания свидетелей.
Корреспондент ведет расследование (investigate) каждого страхового случая и
направляет материалы в клуб.
144
UNIT 22
MARINE INSURANCE
Part 2
Vocabulary
4- Utmost good faith - полное доверие
4- Insurance policy - страховой полис
4 Insurance interest - страховой интерес
4 Subrogation - переход прав страхователя к страховщику
4 Hull policy - полис страхования судна
4 Cargo policy - полис страхования груза
4 Voyage policy - полис страхования на перевозку
4 Time policy - полис на срок
4 Floating policy - текущий полис
4 Mixed policy - смешанный полисТ
4 Trial order - пробный заказ
4 Standing order - постоянный заказ
4 Open cover policy - генеральный полис
4 Underwriter - страховщик (при морском страховании)
4 Personal accident insurance- страхование несчастных случаев
4 Seaworthy - годный к плаванию, мореходный
4 То expire- истекать (о временном периоде)
4 Forwarding agent- транспортно-экспедиторское агентство
4 Valued policy - таксированный полис
4 То suffer financial loss -нести финансовые потери
Exercise I. Read the text and answer the questions

Principle o f insurance. For insurance to function properly, the insurer and insured
have to make sure that certain basic requirements are fulfilled when the insurance policy is
drawn up.
Utmost good faith (uberrimae fidei). When someone fills out a form applying to take
out insurance, he’s obliged to tell the truth about the value and condition o f the goods to be
insured, and also to mention anything which might increase the risk o f the goods being
stolen or damaged. The insurer accepts the application in “utmost good faith ” that all the
details supplied by the insured are correct, and fixes the level o f the premium accordingly.
For this part, the insurer is obliged to deal fairly with the insured, e.g. by making all the
conditions o f the insurance policy clear to him.
Insurable interest. It is essential that the insured has an insurable interest in the goods
to be insured: this means he has to suffer a financial loss if the goods are stolen or damaged.
Generally this means that you can take out insurance for your own property, but not for
someone else’s.
Indemnity. The idea o f indemnity is that if the insured suffers a loss, he has to be paid
sufficient compensation to bring him back to the same financial condition as he was in
before the loss — not more and not less (this doesn’t apply to life or personal accident
insurance). This prevents people from overinsuring their goods in the hope to make a profit.
Subrogation. Once the insurer has compensated the insured for his loss, he has the
right to recover the amount in question from the party responsible for the loss (e.g. if the
145
insurer can prove that the ship was not seaworthy, he can take legal steps against the
shipowner).
Types o f insurance policy

Written evidence o f the insurance contract is provided in the insurance policy. If
insurance is needed at short notice, the insurer can provide the insured with a cover note to
fulfil this function until the insurance policy is ready. The following types o f cover note are
available:
- Hull policies cover the ship herself, but not the goods being carried.
- Cargo policies cover the goods carried on board the ship, but not the ship herself.
1. Voyage policy. This type o f policy covers the ship and/or cargo for one voyage
only. This kind o f policy may specify a date limit within which the ship is expected to have
arrived at the port o f destination. It is used by people or companies who only have to ship
goods occasionally.
2. Time policy. This is the type o f policy used most often. It covers all shipments
within a certain time period. The premium is paid in advance and then adjusted at the end o f
the period o f insurance, depending on the number and value o f shipments made. The
insured has the responsibility o f filling out an insurance certificate for each shipment, so
that an accurate record can be presented at the end o f the insurance period.
3. Floating policy. With a floating policy, the insured and insurer agree in advance
on a certain sum at which the goods are to be insured. The insured can then make as many
shipments as he wants until this value has been reached, at which point the policy expires.
4. M ixed policy. This is a combination o f the voyage and time policies. The ship
and/or cargo is covered for all voyages between two named ports for a certain period o f time
(e.g. for all voyages from Liverpool to Boston over a year).
5. Open cover policy. It’s a type o f marine insurance that provides cover for all
shipments made by policy holder over an agreed period, e.g. 6 months. It’s made between
the underwriter and shipper, with the latter informing the underwriter, on a declaration
form, whenever the shipment is made, and receiving the policy or certificate after shipment.
Forwarding agents often have this kind o f agreement with insurance companies, allowing
them to make shipments, and then inform the insurance company after the shipment has
been made.
6. Valued policy. This is a type o f insurance policy in which the value o f the goods to
be insured is agreed in advance.123
1. What are the principles o f insurance? Why are they necessary?

2. In what cases can subrogation be possible?
3. What is the difference among a time policy, a floating policy and a mixed policy?
Give some examples where the insured may prefer to choose one over the others.
146
Exercise 2. Fill in the chart
Distinguishing features
Types o f policy The cover of
Period of coverage
policy
Hull policy
Cargo policy
* Voyage policy
Time policy
Floating policy
Mixed policy
Open cover
policy
Exercise 3. Complete the missing terms used in insurance. Pay attention to the first letter
o f the word
1. An i______________________ company indemnifies clients against loss.
2. An insurance p __________________ is a contract taken out to protect
someone against future risks.
3. Clients are i____________________ against loss or damage when they have
insurance policies.
4. A p___________________________ is the amount o f money paid to the insurance
company for cover.
5. L___________________ List is a daily newspaper about shipping movements and
cargo markets.
6. A client sends their insurance company a c___________________ form when they
have suffered damage or loss.
7. The job o f an average a_______________________ is to examine damage and
estimate compensation.
Exercise 4. What type o f insurance policy would you use in each case?
1. A customer in China placed a trial order.
2. A Co. in Britain received a standing order from Canada.
3. A carpet importer in Greece often places orders with a Co. in Iran. However, as
sales fluctuate, the size and value o f the orders tends to vary and is not always predictable.
4. An exporter in Japan was offered a two-year contract to supply goods to various
branches o f a French corporation.
5. A family immigrating from Iraque to Australia sent most o f their household goods
by ship.
147
Exercise 5. Scan 1) the quotation fo r open cover and 2) the claim under open cover.
Analyze the situation and answer the questions. Translate both letters into your native
language
In an open cover policy, the client can be certain that the consignment is insured as soon as
they have returned the declaration form to the insurance company. Settlement may either be
on a monthly or quarterly basis, or per shipment. When insurance cover is nearly used up,
the insurance company will inform the client and ask i f he wants to renew the policy.
; WORLDWIDE INSURANCE Lid C h a irm a n

A .L Galvin а с а fis
W o r ld w id e H o u se , V o r le y R o a d , L o n d o n n 19 5H d M a n a g in g D irector
P R . Erwin c is
T e le p h o n e : +-44 (0)20 7263 6226 D irectors
F a x : +44 (0)20 7263 6925 L Swanne.T.R. Crowe m c
Email: d.adair@worldwide.co.uk H .B . Sidey m a
Your Ref: 5 / 3 / 2 0 —
Our Ref: M 1- C 1 6 8 9 3
Date; 7 M a rch 20—
M s E la in e G o o d m a n
E xp o rt D e p a rtm e n t
G l a s t o n P o t t e r ie s L td
C la y f i e ld
B u r n l e y B B 10 IR Q
D ear M s G oodm an
In r e p l y t o y o u r e m a i l o f 5 M a r c h , I a m p l e a s e d t o s a y t h a t w e c a n a r r a n g e a n
A R o p e n c o v e r p o li c y f o r c h i n a w a r e s h i p m e n t s t o N o r t h a n d S o u t h
A m e r i c a n e a s t e r n s e a b o a r d p o r ts .
A s y o u p r o p o s e t o s h ip r e g u la r ly , w e c a n o f f e r y o u a r a t e o f £ 4 .4 8 p % f o r a
t o t a l c o v e r o f £ 2 0 0 ,0 0 0 .1 e n c l o s e a b lo c k o f d e c l a r a t i o n f o r m s - y o u w o u l d b e
r e q u i r e d t o s u b m i t o n e f o r e a c h s h i p m e n t g i v i n g f u l l d e t a i ls .
I l o o k f o r w a r d t o y o u r c o n f i r m a t i o n t h a t t h e s e t e r m s a r e a c c e p t a b le .
Y o u rs s in c e r e ly
V ал/ i d A d a ir
D a v id A d a ir
M a n a g e r , Q u o ta tio n s D e p a r tm e n t
E n c. D e c la r a t i o n f o r m s
1. What company can arrange an all risk open cover policy?
148
2. What terms of payment were offered by the company?
3. What document should be obligatory enclosed? What should be included in this
document?
Dear Mr Korvin
Policy No. OC 515561
l am writing to inform you that a number of pieces of crockery were damaged in a recent
shipment to MacKenzie Bros of Dawson, Canada. The consignment was shipped clean on
board the Manitoba, ex-Liverpool 16 September. You have our declaration form No. 117
65916.
I would be grateful if you could send me a claim form.
Elaine Goodman
Export Department
GLASTON POTTERIES Ltd
Clayfield, Burnley BB10 1RQ
Tel:+44 (0)1282 46125
Fax:+44(0)1282 63182
Email: e.goodman@glaston.co.uk
1. What happened to the items in a shipment?

2. How were the goods shipped?
3. What does “ex-Liverpool” mean?
Exercise 6. Fill in the blank spaces with the words from the list below
Premium underwriters broker

Lloyd’s perils policy insurer insurance
1. The most famous insurance market in the w o rld ,________o f London, has many
aspects. It is a society o f ________ , a corporation, a world centre o f marine intelligence, and
a specialist publishing house for maritime and legal affairs.
2. In general practice the insured does not deal directly with the underwriters, but
negotiates through an insurance_________ .
3. The insured pays a sum o f money to the underwriter known a s _____________ .
4. M aritime_________include fire, war, capture, jettison, barratry, etc.
5. The party that undertakes to indemnify the insured under an insurance policy is
called th e ___________________ .
6. The Insurance_________is a written document o f contract where the underwriter
undertakes to indemnify the insured for the loss or damage up to a certain limit.
Exercise 7. Translate into your native language. Use the dictionary i f necessary
P&I clubs usually cover cargo claims (e.g. loss or damage to cargo); crew claims
(e.g. medical expenses, repatriation, substitute expenses, compensation for death or injury);
collision liabilities (to the extent that the claim is not covered under the hull policy); “fixed
and floating objects” (e.g. damage to docks, wharves and buoys); third party injury and
149
death claims (e.g. from stevedores, crew members and passengers); oil pollution problem
liability (and liability for pollution by other substances); special compensation payable in
accordance with Article 14 o f the International Salvage Convention, including payments
assessed under the Scopic Clause; miscellaneous claims (including fines for innocent
breaches o f regulations, diversion and other expenses incurred in landing refugees, sick
persons and stowaways, contractual liabilities including those o f customary towage,
unrecoverable general average contributions, ship’s proportion o f general average when in
excess o f the insured value, salvor’s expenses under Lloyd’s Open Form, and wreck
removal costs.
150
UNIT 23
TYPES OF LOSS
Vocabulary
4 Actual total loss (ATL) - действительная полная гибель; потеря
собственности в случае, когда она полностью разрушена и непригодна для
дальнейшего использования
4 Constructive total loss (CTL) - конструктивная полная гибель; потеря судна
или груза, когда их состояние таково, что стоимость спасания и ремонта
превышает их стоимость до аварийного случая
4 Peril insured - (страх.) страховой риск
4 Perils o f the sea - морские риски, опасности
4 Perils o f the sea clause - оговорка о морских опасностях
4 An assured - застрахованный, страхователь
4 То be deprived o f something - быть лишенным чего-либо
4 То exceed the value - превышать стоимость
4 Jettison - сбрасывать за борт предметы (с целью восстановления плавучести
и остойчивости)
4 Jetsam - предметы, сбрасываемые с аварийного корабля
4 То strand - садиться на мель
4 Irretrievably —невосполнимо
4 То settle a claim - урегулировать спор, рассмотреть иск
4 Entrapment - захват
4 То take over - принимать от другого лица (командование, например)
4 Particular average —частная авария
4 General average - общая авария
4 Proviso - условие, клаузула, оговорка (часть статьи, начинающаяся словом
«provided» - при условии)
4 Want o f due diligence - непроявление, отсутствие должного старания
4 Barratry - баратрия (намеренные действия капитана и/или команды,
причиняющие ущерб судну или грузу; ущерб, нанесенный судну или грузу
капитаном и/ или командой по преступной небрежности или умышленно).
4 Expenditures —затраты, расходы
4 Sacrifices - потери, жертвы
4 То recover a ship -(зд .) возвращать судно; взыскивать в судебном порядке
4 То be borne (to bear) - нести (ответственность)
ATL CTL PA GA
As far as marine insurance is concerned, insurers distinguish between total loss and
partial loss (a partial loss being known as average).
1. Total losses may be categorized as:
a) actual total losses (ATL) b) constructive total losses (CTL)
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a) An actual total loss (ATL) may occur in 4 ways:
- where the property insured is actually destroyed, e.g. where a ship is wrecked or
burnt out, or where goods are crushed in the collapse o f a stow o f cargo;
- where goods change their character to such a degree that they can be said to be no
longer a thing o f the kind that was insured, e.g. where cement powder solidifies;
- where the assured is irretrievably deprived o f his property, e.g. where the ship is
sunk in very deep water;
- where the insured property is posted “missing” at Lloyd, e.g. where a ship has not
reported for several weeks.
If the ship then turns up after a claim for ATL has been settled, it automatically
becomes the property o f the insurers.
b) There is a constructive total loss (CTL) in the following cases:

- where an assured is deprived o f possession o f his ship or goods by a peril insured
against and
- it is unlikely that he can recover them; or
- the cost o f recovering the ship or goods would exceed their value when recovered;
and
- in the case o f damage to goods, where the cost o f repairing the damage and
forwarding the goods to their destination would exceed their value on arrival.
Thus, where a ship that has stranded due to a “peril o f the seas” is in danger o f
breaking up, there is a constructive total loss. The shipowner will not want to wait until she
has actually broken up before claiming for a total loss, so he will normally claim a CTL on
the grounds that an ATL appears to be unavoidable.
Where an owner who has War Risks Insurance cover is deprived o f his ship by its
entrapment by war-wrecked vessels, there is a CTL. As time passes, it may become more
unlikely that the assured can recover the vessel and she will therefore be declared a CTL.
The cost o f recovering her (towage, etc.) after several years o f idleness would exceed her
market value after recovery. (The same will apply to foods on a trapped ship).
In the case o f damage to a ship, where she is so damaged by a peril insured against,
e.g. grounding damage, that the cost o f repairing the damage would exceed the value o f the
ship when repaired, there is a constructive total loss.2
2. A partial loss (or “average”) will always be categorized as either:

- particular average (PA) or
- general average (GA).
A particular average (PA) loss is defined as a partial loss, proximately caused by a
peril insured against and which is not a general average loss.
A particular Average is an accidental loss which concerns only the owner of the
property damaged and, if the cause of the damage is an insured peril, his
underwriters.
The insured perils in a hull and machinery (H&M) policy are listed in a Perils Clause
in the set o f clauses attached to the policy such as the International Hulls Clauses (01.11.02)
or the Institute Time Clauses - Hulls (1.10.83). Under Clause 2 - Perils - structural damage
proximately caused by collision, grounding, heavy weather, etc. (“perils o f the seas”) would
normally be classed as a particular average loss. Many owners insuring their ships under the
Institute Time Clauses - Hulls prefer to extend their cover by paying an additional premium
for clauses such as the Institute Additional Perils Clauses -Hulls (APCs), which cover loss
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or damage caused by any accident. Instead o f having to demonstrate the operation o f one o f
the perils insured against, the assured only has to prove that the loss or damage was caused
by an accident during the policy term. Both above clauses are subject to the proviso that the
loss or damage has not resulted from want o f due diligence on the part o f the assured,
owners or managers.
Barratry includes every wrongful act willfully committed by the master or crew to
the prejudice o f the owner or charterer. E.g., willfully running the ship ashore with
fraudulent intent; fraudulently selling the ship, her equipment or cargo; sailing in breach o f
an embargo; willfully assisting illegal immigration; smuggling without the owner’s consent,
are all acts o f barratry.
Particular Average is a partial General Average is a partial

loss loss
1. due to purely accidental causes, 1. voluntarily and reasonably
e.g., stranding, fire, collisions etc.; incurred in time o f peril for the
safety o f the joint adventure;
2. which is borne by the owners o f 2. which is contributed to by the
the property damaged, e.g., ship owners o f all property saved, e.g.,
or cargo, as the case may be. ship, freight and cargo.
1. Describe two types o f total loss. Give the examples to illustrate both o f them
2. What are the types o f partial loss? What is the difference between them?
3. What is GA? Why do you think it’s fairer for the loss to be borne by all parties?
4. Why is barratry a fraud?
Exercise 2. Retell the text about total losses using the Passive voice.
Differentiate between ATL and CTL. Every noun can have several combinations
e.g. In ATL In CTL
a ship is wrecked a ship can t be recovered
Actual total loss Constructive total loss

A ship
Goods
Property
Assured
Value
Exercise 3. Learn the following word combinations with the words “responsibility” and
“responsible”. Fill in the gaps with the correct prepositions. Use them in your own
sentences or situations
To have burden________ responsibility
To hold smb responsible_____________ smth
To release ______________ responsibility
To be responsible__________ smth
To be exempt____________ responsibility
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To be responsible_____ smb
The responsibility lie s ___________
Exercise 4. Translate fro m English into your native language. Use the dictionary i f
necessary
(Abandonment - абандон (акт отказа судовладельца от груза или своего
застрахованного имущества в пользу страховщика); Notice o f abandonment -
извещение об абандоне ; to waive the right - отказаться от права)
Freight Waiver
In the event o f total or constructive total loss no claim to be made by the
Underwriters for freight whether notice o f abandonment has been given or not.
It has been known for hull underwriters, under their right o f subrogation, after paying
a constructive loss o f the ship, to forward the cargo to its destination and collect the freight
thereby earned. As the freight had been earned, the shipowner had no claim against the
freight underwriters for a total loss o f freight, because it hadn’t been lost to the shipowner
through a peril o f the sea, which he was insured against, but due to his abandonment to the
hull underwriters. To avoid this difficulty, in the event o f a total or constructive total loss,
the hull underwriters in this clause agree to waive their right to collect any freight earned,
whether notice o f abandonment has been given or not.
This enables the shipowner to claim for loss o f freight against the freight insurance
underwriters, who are then able to be credited with any freight earned by the right o f
subrogation.
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UNIT 24
GENERAL AVERAGE AND THE YORK-ANTWERP
RULES
Vocabulary
■4- To incur an expenditure - понести расходы
4 To extricate a vessel - высвободить судно
4 Common maritime adventure —общее морское предприятие
4 Abandonment - абандон (акт отказа судовладельца от груза или своего
застрахованного имущества в пользу страховщика)
4 Notice o f abandonment - извещение об абандоне
4 То abandon - абандонировать
4 Tender - официальное предложение, тендер
4 Assessment —оценка
4 General average adjustment —расчёт убытков по общей аварии
4 General average contribution - долевой взнос по общей аварии
4 General average bond - аварийная подписка
4 General average guarantee —гарантия по общей аварии
4 General average deposit - депозит или аварийный взнос
4 Lien - право удержания, залоговое право на груз, судно
4 То exercise a lien on ... - применить залоговое право на ...
4 Security - обеспечение, залог
4 Average adjuster —диспашер, специалист по оценке убытков по общей
аварии и их распределению между участниками морского предприятия
4 Average adjustment - диспаша (см. выше)
4 То be due - подлежащий оплате
4 Port o f refuge - порт вынужденного захода, порт-убежище
4 То retain the ship - сохранить судно
4 То furnish particulars - представлять (предъявлять) подробности, детали
4 То take over (a ship) - принимать судно
4 Proceeds -поступления, доходы
4 То dispose o f - избавиться от
Part 1
Principle and object o f general average
The principle o f general average may be said simply: “That which has been
sacrificed for the benefit of all shall be made good by the contribution of all”. (The
principle was applied under Rhodian law, the body o f maritime law said to have been
administered on the island o f Rhodes from abt.800 B.C.).
The object o f general average is to ensure that the owner o f a vessel or cargo who
has incurred an expenditure or suffered a sacrifice o f his property' in order to extricate the
vessel (and consequently the cargo) from a perilous position receives a contribution to his
loss from all those who have benefited from the action.
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A general average is a partial loss incurred through a deliberate act performed with
the intention o f preserving all the property involved in a voyage from a danger which
threatens them all. General average losses are equitably shared by all the parties to the
common maritime adventure (the voyage being the maritime adventure) each party
contributing in proportion to his share o f the total values involved. The term “maritime
adventure’ comes from the days o f merchant adventurers who sponsored ships’ voyages to
the East and West Indies. A common maritime adventure is a voyage in which several
parties have some financial interest as opposed to a ballast voyage o f a non-chartered liner
vessel where the only party involved is the shipowner.
The parties to a common marine adventure could include:
- the shipowner;
- each consignee o f cargo on board (however many these may be);
- where the vessel is on time-charter, the owners o f the bunker fuel (time-charterer)
- the recipient o f the freight (who will normally be the shipowner or time charterer).
Where cargo is owned by more than one party, each consignee is treated as a separate
interest and is liable for his own contribution to the general average, no matter how small.
The carrier usually makes this clear to the holder o f a B/L in a General Average Clause.
Where on a vessel, equipment is installed that belongs to some third party (e.g. a
diving systems owned by a diving contractor or a cable-laying installation fitted on a
chartered ship, etc.), the owner (1) o f that equipment become a party to the common
maritime adventure.
In order to have the right to claim a contribution from parties to the common
maritime adventure, the owner o f a vessel which together with its cargo and any other
property has been saved from danger must be able to show that there was a general average
act.
A general average act is defined in Rule A o f the York - Antwerp Rules.
The essential elements o f it are as follows:
SACRIFICE or EXPENDITURE
must be
extraordinary
intentionally made or incurred
reasonably made or incurred
for
the common safety
preserving the property from peril
The following are the examples o f extraordinary sacrifices intentionally and
reasonably made for the common safety and allowed as GA:
a) a vessel is aground and her engine and equipment are damaged in efforts to
refloat the vessel;
b) a fire occurs in the hold o f a vessel and a hole is cut in another o f her holds to
gain access to the fire and put it out. The cargo not on fire may also be damaged;
c) cargo is jettisoned for the common safety in time o f peril;
156
d) cargo burnt as fuel (e.g., fuel oil in the ship’s tanker) if there is a shortage of
bunkers;
e) cargo not on fire is damaged by water being used to extinguish other cargo, which
is on fire.
If cargo is lost and as a result the shipowner can’t collect the freight which is payable
at destination, the freight is sacrificed equally with the cargo and is allowed as GA.
The following are the examples o f extraordinary expenditures intentionally and
reasonably incurred for the common safety:
a) the expense o f hiring lighters for storing cargo in which efforts to refloat a vessel
take place;
b) the expense o f hiring a tug with fire-fighting equipment to extinguish a fire on
board a vessel;
c) port o f refuge expenses;
d) salvage charges.
1. What’s the main principle o f GA?

2. What ’ the object o f GA ?
3. What are the advantages o f common maritime adventure?
4. What are the parties to common maritime adventure?
5. What are the principles o f Rule A o f the York-Antwerp Rules?
6. Give the examples o f extraordinary sacrifices and expenditures.
7. What happens i f cargo is owned by several parties?
Exercise 2. What type o f loss was this?

1. A ship disappeared while sailing through the Bermuda Triangle.
2. A ship carrying cheap general cargo sank close to the coast o f England.
3. Two boxes o f goods were lost overboard as a result o f bad weather.
4. In 1912, the supposedly unsinkable Titanic hit an iceberg and sank in the Atlantic.
5. A ship carrying oil barrels caught fire, and the crew threw the barrels into the sea
to prevent an explosion.
6. Pirates boarded a ship and stole part o f the cargo.

1. Сущность общей аварии в том, что для сохранения целого судна, груза и
фрахта приносится в жертву часть целого или производятся расходы. Цель расходов -
спасти имущество от общей опасности.
2. В общую аварию включаются чрезвычайные пожертвования или расходы,
произведенные намеренно и являются разумными в данной ситуации.
3. Общая авария является разумным актом в обоюдных интересах судна и
находящегося на нем груза для спасения их от общей опасности. Эта опасность
должна быть реальной, а не воображаемой.
4. Можно определить следующие 4 признака общей аварии: общая опасность
для судна, груза и фрахта, преднамеренность, разумность и чрезвычайность
мероприятий, направленных на общее спасение. Если отсутствует хотя бы один из
них, авария не является общей. Она может относиться к категории частной аварии
или к расходам и убыткам судовладельца или грузовладельца.
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5. Йорк-Антверпенские правила были приняты в Йорке в 1864 и Антверпене
1877 на конференциях представителей судовладельцев, страховщиков и диспашеров
разных стран для унификации обычаев распределения общей аварии.
Part 2
Nature and application o f York-Antwerp Rules
The York-Antwerp Rules - are a set o f internationally recognized rules, drawn up by a

number o f maritime countries to enable the assessment o f each
party’s general average contribution following an incident in
which general average was declared.
- are (unlike the Hague-Visby Rules) not incorporated into
national law, but are voluntarily and mutually accepted by
shippers, shipowners and insurers.
- are generally incorporated into a contract o f carriage in a General
Average Clause. If the parties have not agreed to apply the York-
Antwerp Rules, common law usually that o f the country where the
voyage is terminated following the general average act - may be
applied to the general average adjustment. There is a risk in such
cases o f wide variations from one country to another in the
method o f adjustment o f general average.
- consist o f 7 lettered rules (A to G) stating the general principles o f
general average, plus 22 numbered rules (I to XXII) dealing with
specific matters.
Security fo r general average contributions

A carrier or shipowner has a common law lien on cargo in his possession for its
contribution to a general average, this being a condition o f delivery o f the cargo.
Possession o f the cargo is the carrier’s / shipowner’s only guarantee that the cargo owners
will pay the required contributions without costly court actions to enforce this.
In practice, general average contributions take months or even years to be assessed,
so it is not normal for the shipowner to exercise his lien on cargo for the full contribution.
Instead, he exercises the lien on some form o f security pending the final adjustment. It
becomes the duty o f the master (or the ship’s agent on behalf o f the master) to obtain an
acceptable security for the cargo’s general average contribution before delivering the cargo
to receivers.
Acceptable general average security may be given in the form of:
- a general average deposit;
- a general average bond (i.e. a signed promise by the receivers to pay their
general average charges when known); (see annex 10)
- a general average guarantee (a promise from cargo underwriters to pay the
required contribution without collection o f a deposit); (see annex 9)
- or a combination o f two o f the above, e.g. a bond backed by a guarantee.
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General average bonds and deposits
The average adjuster will, on his appointment, make an estimate of the loss or
damage and the rate o f contribution required from each party to the common maritime
adventure (e.g. 10% of the total arrived value of their property).
Each owner of cargo saved by the general average act must then sign a general
average bond; in return for delivery to them or to their order of the goods noted in the bond,
they agree to pay the proper proportion of any general average charges which may later be
ascertained to be due from the goods. Receivers agree also to furnish particulars of the
value of the goods and make a general average deposit of an amount certified by the
adjuster to be due.
In return for the general average bond and deposit, the cargo is delivered to the
receiver or to their order.
Cargo should never be delivered after general average act until a general average
bond has been signed and the required deposit has been collected. As evidence of their
deposits, receivers are issued with a general average deposit receipt, these must never be
issued in duplicate.
Abandonment
An owner of a damaged and salvaged ship will not usually spend more on repairs
than the value of the ship after repair. (The ship may qualify as a constructive total loss).
The owner is not obliged to claim a CTL; he may choose to claim a 100 % partial loss,
make repairs and retain the ship. If he wishes to claim a CTL, the owner must abandon the
property to the insurer.
After a valid abandonment, the insurer is entitled to take over the interest of the assured
in whatever remains of the insured property, including all proprietary rights in it, e.g.
- the right for any freight in the course of being earned when the casualty occurred;
- the right to take over the ship;
- the right to dispose o f the ship as he thinks fit and retain all the proceeds (even if
more than the claim paid).
When a ship is badly damaged and the owner fears a CTL the owner gives notice o f
abandonment to the underwriter.
Tenders are taken from salvers and repairers. It is ascertained whether expenditure
will exceed the repaired value. Items taken into account in the calculation include estimated
repair costs; the cost of future salvage operations; any general average contributions to
which the ship would be liable if she were repaired. If the estimated total outlays exceed
repaired value, a CTL is shown and the underwriter will be liable for a total loss. The
insurer pays the claim and takes over proprietary rights in the vessel if she is eventually
recovered.1234567
1. When can the York-Antwerp rules be applied?

2. What are the forms o f GA security?
3. What is the difference between GA bond and GA quarantee?
4. Who and in what situation gets a GA deposit receipt?
5. When must the owner abandon the property to the insurer?
6. What rights and obligations does the insurer obtain after abandonement?
7. Read the GA bond and GA guarantee in the annex. Compare them and explain
different aspects o f their use.
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Exercise 5. State which o f the following terms are defined below
Actual total loss cargo outturn report Particular average

Insurance broker General Average maritime perils
Constructive total loss underwriter policy
1. A right claimed by the assured for the property lost, where recovery is unlikely:23456789
2. One who agrees to compensate another person for loss from an insured peril in
consideration of payment of a premium:_____________.
3. Kind of risk where the property has been completely destroyed, a missing ship for
example:_________ .
4. A contract of insurance:____________ .
5. A hazard or risk at sea:______________.
6. An accidental loss to the ship or cargo or freight: _____________.
7. A voluntary sacrifice or extraordinary expenses for the common safety of a
maritime adventure:__________ .
8. Report of the quantity of cargo discharged from a ship:___________ .
9. An intermediary who negotiates insurance contracts with the underwriters on
behalf of the shipowner, i.e. the assured:_________ .
Exercise 6. Here is the simplified example o f a General Average adjustment. Analyze the
situation
- Assume that a vessel on a loaded voyage accidentally ran aground, was salvaged on a
Lloyd’s Open Form salvage agreement, and was towed to a port of refuge for repairs.
Cargo was discharged and stored ashore to allow drydocking, bottom survey and repairs.
The ship’s crew was accommodated in a hotel during the drydocking.
The bottom was found to be damaged by the grounding, while the propeller and tailshaft
were found to have been damaged during the refloating operation.
- On completion of repairs the vessel was undocked, reloaded her cargo and continued on
her voyage.
- The salvors obtained security from the ship and cargo interests before the vessel left the
port of re frige, the salvage award being set some time later by the Lloyd’s Arbitration
hearing.
- The shipowners paid the costs of entering the port, discharging and reloading cargo, the
costs of wages and maintenance of the crew, fuel, stores, etc. whilst making for and
staying at the port of refuge.
(tailshaft - гребной вал, дейдвудный вал)
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T h e a d j u s t m e n t o f g e n e r a l a v e r a g e w a s p r e p a r e d a s s e t o u t b e lo w :
General Average
Per York-Antwerp Rules
us$
US$
Salvage awarded against ship $ 1,850,000 & cargo $ 1,295,000 3.145.000
Allow per Rule YI 3,145,000
Port charges putting into and leaving port of refuge

Allow per Rule {(a) 165.000
165.000
Cost of repairs:
Accidental bottom damage repairs (not allowed as GA) 185.000
Propeller, etc.repairs 65.000
Allow per Rule XYIII 65,000
Cost of dry docking 100.000
Allow 50% 50,000
Cost of discharging, storage and reloading of cargo 145.000

Allow per Rule X(b) and (c) 145,000
Wages and maintenance of crew, fuel and stores, etc 50.000
Allow per Rule XI 50,000
Interest at 7% per annum and 2% commission allowed on GA
Disbursements per Rules XX and XXI, say 510,000
4,130,000
Ship’s contributory value per Rule XVII

Sound market value: 38,000,000
Deduct: Damage (%} 85.000 + S65.000+S 100.000) 350.000
37,650,000
Add: Made good ($65,000+$50,000) 110.000
37,760,000 3,239,485
Cargo’s contributory value per Rule XVII
Sound CIF market value at destination: 11,000,000
Deduct: Damage (found on arrival at destination! 620,000

10.380.000 890.515
48.140.000 4.130.000
Ship and cargo both contribute to the general average equal proportions (in this
case approx. 8.6%) of their respective contributory values. The ship’s proportion is
$3,239,485 while the cargo’s proportion is $890,515.

1. При общей аварии необходимо до выдачи груза в порту назначения
получить от всех грузополучателей аварийные подписки, содержащие их
обязательства, объявить стоимость груза и уплатить долю груза по диспаше.
161
2. Если грузополучатель отказывается выдать аварийную подписку, капитан
должен использовать залоговое право и не выдавать груз до получения аварийной
подписки.
3. Если нет уверенности в платежеспособности грузополучателя, следует
получить аварийную подписку с гарантийной надписью банка или страхового
общества. Чаще всего используется гарантийная надпись страховщика груза. Если Вы
сомневаетесь в солидности страховой компании, гарантийная надпись или
гарантийное письмо должны быть выданы банком.
162
UNIT 25
MARINE CLAIMS.
HAGUE-VISBY RULES. HAMBURG RULES
Vocabulary
4 Voucher - оправдательный документ
*4- Endorsement - подтверждение
4- Class surveyor - инспектор классификационного общества
4- Disbursement - расходы судовладельца во время пребывания судна в порту
4- Agency fee —агентское вознаграждение
4 Casualty - происшествие
4- То lodge a claim - подать иск
4 То forego defences - воздерживаться (отказываться) от защиты
4 Concurrently - одновременно
4 То pursue a claim —предъявлять иск
4 То prejudice a right - наносить ущерб
4 То disclaim liability - отрицать ответственность
4 То uphold (identity) - подтвердить, идентифицировать
4 То be in one’s custody - быть под контролем, опекой, охраной
4 Burden o f p ro o f- бремя (обязанность) доказывания
4 То evidence (a contract) - служить доказательством, доказывать
Part 1
Hull claims
Following any case of hull or machinery damage, e.g. due to collision or grounding,
the shipowner/ manager’s insurance department will normally immediately inform, via the
broker, the lead hull and machinery insurer. If abroad, Lloyd’s agent will normally be
notified. Underwriters or their agent, e. g. Lloyd’s agent, will instruct a surveyor to ascertain
the nature, cause and extent of damage. In major casualty cases, the surveyor appointed is
likely to be a Salvage Association surveyor.
In the event of a claim on a Lloyd’s policy the client must contact the broker
concerned to initiate the claims process. The broker will inform the leading underwriter at
Lloyd’s (who originally set the terms and conditions of the risk) and Lloyd’s Claims Office,
which acts on behalf of following Lloyd’s underwriters. Once the validity of the claim has
been checked and payment agreed, Lloyd’s central accounting system will ensure that the
claim’s paid directly to the broker’s account and the accounts of the underwriting syndicates
are duly debited.
Documents and information required from the ship by the Claims Handler
In addition to copies of the relevant insurance policies (which will be supplied by the
owners), the documents and information listed below may be required to accompany a claim
lodged by owners against underwriters. If an adjustment is prepared, the average adjuster
will extract the required information from the documents and incorporate it in the
adjustment, but underwriters are in any case entitled to see the original documents and
vouchers if they wish.
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Certain items forwarded will require the endorsement of the underwriters and
surveyor as being fair and reasonable. The endorsement may be obtained either by the
owner’s superintendent at the time of survey or repair, or later through correspondence
between the average adjuster and the surveyor.
General documents and information required include:

- deck and engine room logbooks covering the casualty and the repair period;
- master’s and/or Chief engineer’s detailed report;
- relevant letters of protest;
- protests and extended protests;
- underwriters’ surveyor’s report;
- class surveyor’s report;
- owners’ superintendent’s report;
- receipted accounts for repairs and/or any spare parts supplied by owners, in connection
with repairs, endorsed by underwriter’s survey or as being fair and reasonable;
- accounts covering any drydocking and general expenses relating to the repairs, endorsed
as above;
- accounts for all incidental disbursements at the port of repair, e.g. for port charges,
watchmen, communication expenses, agency fees, etc.
- details of fuel and engine room stores consumed during the repair period (i.e. from the
time of deviation to the port of refuge), together with the cost of replacement;
- accounts for owners’ repairs effected concurrently with damage repairs;
- copies of faxes and telexes sent and details of long-distance calls made in connection
with the casualty, together with their costs;
- any accounts rendered by surveyors, etc., with dates of payment where made.
Cargo claims
Most cargo claims arise as a result of alleged breaches by the carrier of contractual
obligations properly to carry and care for the cargo while in his custody.
These contractual obligations are usually incurred under a contract of carriage with
the shipper of the goods, usually a bill of lading. The B/L is governed by the law of a
particular country, which will have enacted legislation governing the carriage of goods by
sea which is then incorporated in the B/L.
Where cargo loss or damage is discovered (usually by the receiver or consignee at

the discharge port of destination)
A Delivery Note or Consignment Note will be claused with a note of the loss or
damage. The cargo owner will immediately inform his insurer; if the loss or damage is
found outside the UK, this is done through the local Lloyd’s Agent in the case of a Lloyd’s
policy. Where the goods were sold “CIF” the relevant Lloyd’s Agent is noted on Certificate
of Insurance, e.g. “Lloyd’s Agent at Hong Kong”, Hong Kong being the destination in this
case.
If the loss or damage value is likely to exceed about $250, underwriters will normally
ask for a Survey Report. This is arranged by Lloyd’s Agent, who can appoint surveyors and
pay small claims locally.
After the claim is quantified and documented, the underwriter settles the claim
through Lloyd’s Agent. The underwriter then decides whether or not claim is worth
pursuing against the carrier. If he decides to pursue the claim, he immediately makes a
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written claim on the carrier; failure to claim may prejudice his right o f recovery. The claim
(including the surveyor’s fee) is settled by the carrier in the currency stated in the policy or
in the Certificate o f Insurance. The carrier, if a P&I club member, then claims on his club
policy.
1. Who is involved in the claims procedure? Name the parties.

2. What are interrelations between the parties in the event o f the claim?
3. Can an underwriter ask for original documents? Who can endorse them?
4. What’s Lloyd’s strategy in casualty cases?
4. What’s the role o f average adjuster?
5. What documents are necessary from the ship?
6. Who must complete and endorse the documents?
Exercise 2. Characterize different types o f documents used in the claims procedure
Criteria Logbook Report Account Other documents
1. Who
completes the
documents?
2. What items are

covered in the
document?
Exercise 3. Here is a list o f participants in the claim procedure:

Surveyor, Superintendent, Underwriter, Agent, Broker, Watchman.
Match the definition and the term
Definition Name o f a participant

1. Someone who makes insurance contracts
2. Someone whose job is to examine the condition,

to measure or to record the details o f something
3. A person or a company that represents another
person or company
4. Someone whose job is to guard the place
5. Someone who is officially in charge o f a place,
job, activity
6. Someone who buys and sells things in companies,
arranges sales or business arrangements for other
people
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Exercise 4. Translate into your native language. Use maritime dictionary
Evidence o f cargo care

If cargo was not discharged in “apparent good order and condition” and there was a
claim against the company, the following evidence might be useful in resisting the claim:
bilge, ballast and bunker sounding and pumping records; cargo ventilation, humidity and
temperature records; records o f unusual weather conditions, routeing details, warnings and
weather reports; records o f hatch, access, hold and watertight checks; records o f fire and
safety equipment checks, including log entries and other records o f training and safety
exercises; records o f cargo securing and lashing rounds and checks. Depending what the
commodity was: records o f cargo temperatures (heating or cooling) where appropriate;
records o f inert gas and venting operations; records o f reefer defrosting and temperature
control.
Part 2
THE HA GUE- VIS В Y R ULES

define the carrier’s liabilities and rights with regard to the cargo carried in the vessel.
Liabilities o f a CARRIER The rights and defences o f a CARRIER

1. To make the ship properly man, equip 1. The carrier is not liable for loss or
and supply; damage to the goods unless an action is
2. To make the cargo holds, refrigerated brought within 1 year from the date of
spaces and any other parts of the ship delivery of the goods;
where cargo is intended to be carried fit 2. The carrier is not liable for loss or
and safe for its carriage and damage arising from the unseaworthiness
preservation; of the vessel unless it was caused by the
3. On demand of the shipper, to issue a want of due diligence on the part of the
B/L describing the condition of the carrier to make the ship seaworthy and fit
cargo, the number of pieces or packages for the carriage of the cargo;
or the quantity or weight, as stated by 3. The carrier is not liable for loss or
the shipper, and the leading marks on damage arising from neglect of the master
the packages to assist in identifying the and crew in the navigation or management
goods; of the ship; from fire, perils of the sea, acts
o f God, war, public enemies, quarantine
BUT the shipper can’t demand a B/L with restrictions, strikes or lockouts, riots, when
a wrong description of the goods when the attempting to save life or property at sea,
situation doesn’t justify it. Indeed, if the wastage of bulk goods or damage arising
master fails to show “the apparent order from inherent defects, quality or vice of the
and condition of the goods” the shipowner goods, nor for insufficiency of packing,
will forego any possible defences to a inadequacy of marking and latent defects
claim brought by a 3rd party. The clausing of the goods not discoverable due
of the B/L is not a choice but an diligence, and finally from any other cause
obligation. arising without the fault of the carrier.
If the carrier receives a claim for damage to or
loss of the goods while they were in his custody
and wishes to use one or more of the above
defences to disclaim liability, the burden of
proof that the loss is covered by those defences
is on him.
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THE HAMBURG RULES
In many respects the Rules cover the same subject matter as the Hague-Visby Rules,
in that they are concerned with imposing a compulsory regime o f liabilities and
responsibilities on carriers o f goods under contracts o f carriage by sea.
The regime is very different, as are the situations in which the Rules will apply.
The Convention applies to sea carriage between different states under any contract
whereby the carrier undertakes against payment o f freight to carry goods by sea from one
port to another (Articles 1 and 2). Where the carriage is both by sea and by some other
means o f transport, the Rules will generally apply only in so far as the carriage relates to the
sea element. Coastal voyages are excluded.
Unlike the Hague-Visby Rules, therefore, the regime is not limited to carriage
under Bs/L or similar documents. The Rules apply to C/Ps.
If the Rules apply, the CARRIER will be responsible for the goods during the period
when he is “in charge” o f them; that is to say, from the time he takes them over at the port
o f loading until he delivers them at the port o f discharge. This is a significant extension to
the period o f his responsibility, when compared with the Hague-Visby Rules regime.
Another point is how the CARRIER IS DEFINED. It’s not expressly addressed in the
Hague-Visby Rules. For example, in England a B/L signed by the master will usually
evidence a contract with the shipowner (rather than the charterer) and an identity o f carrier
clause dealing with the point will usually be upheld. The same is not, however, true in many
continental jurisdictions. Under the Hamburg Rules, the carrier is defined as the person
by whom or in whose name the contract is concluded. The name and the place o f
business o f the carrier must be set out in the bill. A bill signed by the master is deemed to
have been signed on behalf o f the carrier (i.e. not the registered owner unless he is also the
carrier).
Under these rules, it is possible that where the contracting carrier is the charterer o f a
ship, the registered owner will be treated as an actual carrier for the purposes o f the
Convention.
In broad terms, the Hamburg Rules regime is more favourable to cargo
interests than the Hague-Visby regime. It should be noted that the time limit for
commencing court or arbitration proceedings is extended from one or two years, and that
this limit applies to claims both by and against the earner. The carrier in the currency stated
in the policy or in the Certificate o f Insurance. The carrier, if a P&I club member, then
claims on his club policy.
1. What’s the subject o f Hague- Visby Rules and Hamburg Rules?

2. What should be issued by a carrier on demand o f the shipper?
3. What must a shipowner do i f the goods don’t conform to the description in B/L?
4. In what cases a carrier bear no responsibility fo r loss or damage under Hague-Visby
Rules?
5. How is a carrier defined under Hamburg Rules?
6. Why is Hamburg Rules regime more preferable for cargo interests, in your opinion?
Exercise 6. Put the following verbs in correct order to describe the usual claims
procedure
Agree instruct start with inform (2) pay

insure at initiate act check
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The usual claims procedure following hull damage to a ship
___________________ Lloyd’s _____________________ the assured contract his broker
to____________________ the claims process. Therefore, the shipowner’s or manager’s
insurance department will im m ediately______________________ the company’s broker,
who will inform the lead underwriter at Lloyd’s.
The lead underwriter w ill_____________________ a surveyor to ascertain and report
the nature, cause and extent o f damage. (In major cases the Salvage Association will usually
be instructed).
The broker t h e n __ ____________________ the lead underwriter and Lloyd’s
Claims Office, w h ich ___________________ on behalf o f the other “following” underwriters.
Once the validity o f the claim has been __________________ and payment
______________ . Lloyd’s central accounting system ensures that the claim is ____________
directly to the broker’s account and the accounts o f the underwriting syndicates are duly
debited.
Exercise 7. Read a claim fo r demurrage money and answer the questions
Dear Sir,
This is to inform you that due to your failure to provide the cargo o f linseed expellers
fo r my vessel as fa st as she could receive, as per C/P dated 03/01/2008, laytime allowed
fo r loading expired at 08.00 hours local time March 8,2008. From that time till
completion o f loading, that is, 15.00 hours local time, today, March 10, 2008 the vessel
was on demurrage o f which you had been duly warned in advance by my letter o f March
3, 2008. So, the time o f the vessel on demurrage is 2 days and 6 hours 30 minutes, which
at the rate o f 500 US Dollars per 1 hour o f demurrage as per the C/P makes the total o f
10,750 US Dollars.
I hold you responsible fo r the above sum and kindly ask you to pay it before our
departure.
Yours faithfully, 1234
1. What’s the reason for loading laytime expiring?

2. How many hours was the vessel on demurrage?
3. What total amount o f money must be paid for demurrage and when?
4. Who usually bears responsibility for demurrage?

Hague-Visby Rules are applied to all goods shipped under B/L terms except for: 1)
live animals; and 2) cargo which is stated by the contract o f carriage as being, and is
actually carried on deck.
They apply to every B/L relating to the carriage o f goods between ports in two
different states if: 1) the B/L is issued in a contracting State; 2) the carriage is from a port in
a contracting State; 3) the contract contained in or evidenced by the B/L provides that the
Hague-Visby Rules or the legislation o f any state giving effect to them. Many States have
legislation incorporating the Hague-Visby Rules into national law. Where no such national
168
law applies, the Hague-Visby Rules may still apply to the carriage by agreement o f the
contracting parties.

1. В случае нарушения таможенных правил судно, обычно, извещается о сумме
исчисленного штрафа таможенными властями немедленно. Разрешение на
отход не выдается до того, как организовано обеспечение гарантий.
2. P&I клуб, на свое усмотрение, может предоставить гарантийное письмо от
имени владельца судна, хотя подобные письма принимаются не во всех
странах. Таможенные власти некоторых стран настаивают на банковских
гарантиях.
3. Судовладелец должен быть немедленно извещен о сумме штрафа с целью
совместной деятельности с P&I клубом. Ему необходимо выяснить, есть ли
смягчающие обстоятельства (mitigating circumstances). Корреспонденты или
юристы P&I клуба начинают немедленное расследование, если возникает
возможность смягчить штрафные санкции, налагаемые таможней.
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UNIT 26
NOTING PROTEST
Vocabulary
4 Extended protest- дополненный протест

4 To note a protest —заявлять протест
4- Affidavit - письменное показание, подтвержденное присягой или
торжественным заявлением и заверенное нотариусом
4- Before breaking bulk - до открытия трюмов, до начала выгрузки
4- Deck log - вахтенный журнал
4- Log entries - записи в вахтенном журнале
4- То sustain damage —понести ущерб
4- То take depositions - удостоверить (засвидетельствовать) показания под
присягой
4- Rough seas - по шкале оценки состояния моря и зыби (шкала Бофорта)
высота волны - 2.5 - 4 метра
4- Heavy swell - по шкале оценки состояния моря и зыби (шкала Бофорта)
высота зыби свыше 4 метров
4 Pitching - килевая качка
4 Rolling - бортовая качка
4 То ship water —черпать воду
A “protest”, sometimes called a “sea protest”, is a solemn declaration, made on

oath by a shipmaster before a person legally empowered to hear such declarations, that
circumstances beyond his control have, or may have, caused loss o f and/or damage to his
ship and its cargo, or have caused him to take action which may render the owner liable to
another person.
A protest (without an extension) is a simple statement of fact, without added
details.
An “extended protest” is a protest to which supplementary information has been
added at a later date. “Noting protest” is the act o f making the protest before the
appropriate person.
The appropriate person before whom a protest should be noted is a notary public in
those countries (such as the UK, USA, India, South Africa, etc.) where notaries public are
appointed, or a consul in other countries. A “notary public” or “notary” is a public
official who is primarily concerned with the preparation and authentication o f documents to
use abroad and is empowered under his country’s law to administer oaths (i.e. swearing to
the truth o f statement), take acknowledgements, certify documents and take depositions for
use in legal actions. The signature and seal or stamp o f a notary public is necessary to attest
to the oath o f truth o f a person making an affidavit and to attest that a person has
acknowledged that he/she executed a deed, power o f attorney or other document.
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PROTEST
"On thi s day, th e d a y of , one thousand nine hundred and

ninety- six , b e f o r e me, James S. Anderson of the City of
Glasgow, S c otland, Notary Public duly admitted a n d sworn,
personally appeared Angus McMillan, master of the motor
vessel "Kintyre Venture" belonging to the Port of
Campbeltown, o f f i c i a l n u m b e r 300123, o f the burthen 5 9 3 . 0 2
t o n s gross, or t h e r e a b o u t s , w h i c h s a i l e d from Ardrishaig on
or a b o u t the 29th day of March 1996 w i t h a cargo of timber
a n d t h e r e w i t h to G l a s g o w , a n d a r r i v e d in this Port of Glasgow
on the 30th day of March 1996.
It is d e c l a r e d t hat this vessel at v a r i o u s times on
passage met very rough seas a n d h e a v y swell, p i t c h e d and
rolled, s h i p p e d s p r a y a n d water, a n d e n c o u n t e r e d h e a v y rain.
A n d f e a r i n g t h a t d a m a g e a n d loss m a y h a v e b e e n s u s t a i n e d b y
the s a i d c a r g o d u r i n g t h e s a i d voya g e , he thu s enters a note
of HIS PROTEST a g a i n s t all losses, dama g e , etc. to be
extended in due form if n e c e s s a r y , r e s e r v i n g r i g h t t o e x te n d
t h e same a t a t im e a n d p l a c e c o n v e n ie n t .
S i g n e d b e f o r e m e ......................................................
J a m e s S. A n d e r s o n , N o t a r y P u b l i c
at 1 1 . 0 0 GMT on 1st A p r i l 1996
Angus McMillan
Mast e r , m.v. " K i n t y r e V e n t u r e "
(to reserve the right to extend the protest at a time and place convenient - оставлять за
собой право продлить/дополнить настоящий протест в любое удобное время и в
любом удобном месте)
A Letter of Protest is a written communication recording dissatisfaction on the part
o f one party concerning any operational matter over which the other party has control, and
holding the other party responsible for any consequences o f the matter being complained
about.(see annex 13)
A Letter o f Protest should not be confused with a protest (or sea protest) noted or
lodged with a notary public or consul.
A Master him self might receive a Letter o f Protest when:
a) the discharged cargo quantity doesn’t match the B/L quantity;
b) the specification, colours, temperature, etc. o f discharged cargo is “ wrong”.
When to note protest
Noting protest may help to resist cargo losses or damage claims against the
shipowner, and may be required in the adjustment o f a general average, but is not always
necessary. The local P&I club representative should be able to advise the master on the need
for noting protest.
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It may be prudent to note protest in the following situations:
1. After every case o f general average;
2. After wind and/or sea conditions have been encountered which may have damaged the
cargo;
3. After wind and/or sea conditions have been encountered which caused failure to make a
canceling d ate;
4. After cargo is shipped in a condition likely to deteriorate during the forthcoming voyage;
5. After the ship has sustained material damage;
6. After the ship has caused material damage;
7. After a serious breach o f the Charter Party by the charterer or his agent (e.g. undue delay,
refusal to load cargo not o f a sort allowed by the C/P, refusal to pay demurrage, refusal to
accept B/L after signing because o f clausing by master, sending vessel to an unsafe port,
etc).
8. After the consignee fails to discharge or take delivery o f the cargo or fails to pay freight.
Protest should be noted ASAP after arrival and always within 24 hours o f arrival. If
in connection with cargo, it should be noted before breaking bulk. If cargo for more than
one discharge port is involved, the P&I club correspondent should be asked whether it will
be necessary to note protest at each port in the notation.
Procedure for noting protest
The Master should request the agent to arrange an appointment with, and transport to,
a notary public, consul or other appropriate person before whom a protest can be made. (In
some countries the appropriate person may be a magistrate or other official).
The Master accompanied by one or more witnesses from the crew who have
knowledge o f the relevant facts, should take with him to the notary’s office the official log
book, the deck log, and any other relevant information pertaining to the matter being
protested about. (Where, for example, bad weather has led to cargo damage, a record o f the
weather should be taken to the notary’s office. Where reefer machinery has failed during the
voyage, cargo temperature records should be taken). Copies o f log entries or other relevant
records will be attached to the protest.
The Master will normally have to show proof o f his identity to the notary. The notary
will hear the master’s declaration and will make a written record in a Register o f Protests.
At least 3 certified copies o f the protest should be obtained from the notary: 2 for the
owner and 1 for the ship’s file. A fee will be payable for noting the protest and for each
requested copy.
Extending protest
Since it’s often impossible to ascertain the full extent o f a loss or damage at the time
o f noting protest, an extended protest should be made when the relevant facts have come to
light, which may be, for example, when a surveyor’s report has been received. It’s therefore
necessary at the time o f making the original protest to “reserve the right to extend the
protest at a time and place convenient”.
An extended protest document will usually be required by an average adjuster
preparing a General Average Statement.
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Procedure for extending protest
E x te n s io n n e e d n o t b e m a d e in th e s a m e p la c e as th e o r ig in a l p r o te s t w a s m a d e , b u t
m u s t b e in s tric t c o n f o rm ity w ith lo c a l la w r e g a r d in g tim e lim its a n d c o n te n t.
T h e e x te n s io n e x p a n d s th e b a re fa c ts o f th e o rig in a l p ro te s t, a n d a g a in , a n y re le v a n t
d o c u m e n ts (e .g ., lo g b o o k s a n d re p o rts ) s h o u ld b e ta k e n to th e n o ta r y ’s o ffic e . T h e
e x te n s io n is e n te re d , w itn e s s e d , s ig n e d a n d s e a le d in th e s a m e m a n n e r a s th e in itia l p ro te s t.
MARINE EXTENDED PROTEST

By this public instrument of declaration and protest be it known and made manifest to all whom
these presents shall come or may concern, that on the....... day of............... , 200...,
before..........................American................... for....................and dependencies thereof,
personally came and appeared..................................... , Master of the vessel called
the........................................ , Official No...................of the burthen of................... tons or
thereabout, then lying in this port of..........................laden w ith................................. cargo, who
duly noted and entered with the said....................................... his protest, for the uses and purposes
hereafter mentioned; and now, on this day, the............... day of.............., 200..., before
me.............................., American.................. at......................... , comes the
said................................... , and requires me to extend this protest; and together with the said
Master also come.............................................................and......................................all crew
members of said ship, all of whom, being by me duly sworn, do voluntarily asservate as follows:
That these appearers, on the..........day of...............sailed in and with the said.................. from the
port of................... laden with.......................... , and bound to the port of...................................
That the said ship was then properly manned and equipped and in every respect seaworthy;
that*..........................................
* Here insert narrative of the facts of the voyage as they occurred, with full and minute particulars,
with date, latitude, longitude, etc. If additional space is required blank sheets may be used and
securely attached to this document under the seal of the consular office.
And these appearers, upon their oaths aforesaid, do further declare and say: That during the said
voyage they, together with the others of the said ship's company used their utmost endeavors to
preserve the said.......................... and cargo from all manner o f loss, damage or injury. Wherefore
the said........................................... Master, has protested in accordance with law and declares that
all losses, damages, costs, charges and expenses as stated herein that have happened to the
said.....................................or cargo, or to either, are and ought to be borne by those to whom the
same by right may appertain by way of average or otherwise, the same having occurred as before
mentioned, and not by or through the insufficiency of the said.................................... her tackle or
apparel, or fault or neglect of this appearer, his officers, or any of his mariners, or fault or neglect
in the proper loading, stowage, custody and care of the cargo.
Thus done and presented in the port of....................................this...........day of................ 200........
IN TESTIMONY WHEREOF, these appearers have hereunto subscribed their names, and I, the
said......................... have granted to the said Master this public instrument, under my hand and the
seal o f this......................................to serve and avail him, and all others whom it does or may
concern as need and occasion may require.
........................................... of the United States of America
............................................ Master
........................................... First Officer
........................................... (Position of crew)
........................................... (Position of crew)____________
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1. What is a protest and when is it used?
2. What are the duties o f a notary?
3. What accidents can be caused by improper weather conditions?
4. How can a charterer violate the contract?
5. What breach o f a contract can be made by a consignee?
6. Who participates in procedure for noting protest?
7. What documents should be presented in the notary office? Why?
8. How many copies o f a protest must be taken from the notary?
9. In what cases should an extended protest be made? What are the points which differ
it from a protest?
Exercise 2. Read the sea protest about a storm. Answer the questions
STA TEM ENT OF SEA PROTEST
I, , the Master o f the m/v “_____________ ”

under the flag o f____________, Gross Tonnage 15893, Net Tonnage 8092, registered at
the port o f_________________ , International Call Letters UUSW, sailed from the port o f
Mobile, Ala., USA on August 15, 2006, bound fo r St. Petersburg with 6750 metric tons o f
general cargo, the vessel being then tight, staunch and strong, well manned, victualled
and sound, and in all respects fit fo r the said intended voyage.
A t 18.00 GMT on __ ______________ 2006 in position Latitude 45-20 North and

Longitude 015-10 West the ship encountered a heavy storm with stern wind o f Force 9-10
fro m WSW and a heavy swell up to 8 metres. As a result o f this, the vessel suffered heavy
pitching and rolling up to 28 to either side. A t 20.00 GMT the vessel had to reduce her
speed to 10 knots to reduce the rolling. A t 23.00 GMT due to shifting o f the cargo ofpipes
in Holds 2 and 3 the vessel sustained a permanent list o f 10 degrees to starboard and had
to deviate to the port o f refuge Breast. A t 09.00 on August 26, 2006 the vessel was moored
at Pier 18 in the port o f Breast.
Though the crew has taken all precautions to save the vessel and the cargo, fearing
damage to the ship and the cargo from the above heavy weather, and also losses
connected with calling in at the port o f refuge and delay o f the vessel, I declare this Sea
protest, reserving the right to extend this protest at a time and place convenient.12345
1. What characteristics o f the vessel should be mentioned in the sea protest?

2. What weather conditions did the ship encounter?
3. What damage did they cause?
4. What actions must be undertaken to save the vessel? Enumerate them.
e.g. A vessel must reduce her speed.
5. Why did the Master declare the sea protest?

A shipmaster should note a protest
1) after every case of General Average;
174
2) after wind and/or sea conditions have been encountered which may have damaged
cargo;
3) after wind and/or sea conditions have been encountered which caused failure to make
a cancelling date;
4) after cargo is shipped in a condition likely to deteriorate during the forthcoming
voyage (also, Bs/L should be appropriately claused after consultation with shipper and P&I
correspondent);
5) after the ship has been damaged from any cause;
6) after a serious breach of a charter party by the charterer or his agent (e.g. undue
delay; refusal to load cargo not o f a sort allowed by the charter party; refusal to pay
demurrage; refusal to accept Bs/L after signing because o f clausing by master; sending
vessel to unsafe port, etc;
7) after the consignee fails to discharge or take delivery of the cargo or fails to pay
freight, and similar situations.
Exercise 4. Complete the sentences using the following verbs. M ind the grammar
Lodge Extend Relieve Enter Raise Accompany
1. A sea protest must_________________ within 24 hours o f the ship’s arrival

2. Sea protests ________________________ in cases o f collision, fire on board,
unfavourable weather, engine breakdown, etc.
3. A protest c a n ____________________ later on if necessary.
4. Sea protests are among the most important documents produced when claims
against the insurers.
5. Protest serves to __________________ the shipowner from liability for alleged
damage or loss to the ship or cargo.
6. A sea protest must _________________ by copies o f the deck log book and o f the
engine-room log.

1. Агент сообщает капитану о предполагаемом времени оформления протеста и
числе членов экипажа, которые должны присутствовать. При оформлении
протеста капитана и членов экипажа сопровождает представитель агента.
Морской протест подписывает капитан, члены экипажа, и представитель агента
как свидетель.
2. Оформление морского протеста и его значение в различных странах
неодинаковы. Например, в портах Италии морской протест оформляется в
трибунале в течение 24 часов после прихода судна в порт.
3. В Англии морской протест заявляют в нотариальные конторы. В первом
заявлении капитан сообщает данные о судне, грузе, рейсе. Капитан должен
предъявить агенту выписку из судовых журналов.
4. Факт общей аварии должен быть обязательно оформлен морским протестом
после прибытия в ближайший порт или в порт назначения. В морском протесте
указываются обстоятельства, которые привели к необходимости совершить акт
общей аварии. Это подтверждается выпиской из судового журнала и
свидетельскими показаниями.
175
APPENDICES
1. Application form for documentary credit
2. Specimen o f airwaybill
3. Specimen o f Barecon 89
4. Specimen o f Barecon 89
5. Gencon charterparty
6-8. Bill o f Lading
9. Average guarantee
10. Average bond
11 .Standard Form o f Disbursement Account
12.Standard Form o f Statement o f Facts (SOF)
13. Letter o f Protest
14. Timesheet
15. Abbreviations used in chartering (in alphabetic order)
176
Pleose complete all areas in black ink an d block capitals
O riginal m ail instructio n s Fax codeword

Original fax instructio n s Date
Party details
Customer (Applicant)
A pplicant's reference
Contact name
Telephone num ber
Fax num ber
C ustomerTrade ID
{See n o te 2) (S« n o te 3)
Beneficiary
Beneficiary’s
Telephone num ber
Transaction details
Am ount and currency w o rd s a n d fig u r e s ) Payment term s
Sight
days a fte r (specify)
U p to For % o f invoice value (eg. 100%)
About + (specify) %
Goods description S hipm ent term s
(Avoid excessive d e ta ils :y o u m a y inclu de a refe re nce to p ro fo rm a Ex w orks FOB/FCA CFR/CPT
invoice(s) th o u g h such d o c u m e n ts m a y n o t b e a tta c h e d ) CIF/CIP (specify)
Last sh ip m e n t date
{See n o te 4)
Oocum ents to be presented w ith in days o f

sh ip m e n t b u t w ith in th e v a lid ity o f th e credit
Expiry date
Transportation
From
To
P artshipm ent
A llow ed
N o t allowed
Transhipm ent [S ee n o t e 5)
A llow ed
N ot allowed
Documents required (see note 6 and 7 )
Transport documents (Tick o n e b o x ) l

Se a ru n set c»*••*>■on h o a rd t 0 1'orl n r - '. o f l u i.iw t Air A ir w a y R il!
Hull Set MuitmiOdcH Iraoipori Uocufwnts \pUuwsp*4ijy\

Consignee M arked n o tify
Bland endorsed (B/L only) A p p lic a n t
O ther
Other Other
Original/Copies
O r ig in a l C opy (S ta te n u m b e r o f o rig in a ls a n d /o r copy do c u m e n ts ] O r ig in a l C opy
Invoice Packing list

GSP Form A C ertificate o f O rigin
O ther (specify) O ther (specify)
Insurance Covering
(See c o n d itio n d ) : f o r s h ip m e n t te rm s C IF /C IP/C & I ( o r o t h e r te rm s
In stitu te cargo clauses'A'
r e q u ir in g t h e b e n e fic ia ry t o be res p o n s ib le f o r in s u ra n c e ) p le ase
in d ic a te co ve r re q uired .
War risks
O rig . C opy Strikes, riots and civil co m m otio n s
Insurance Policy/C ertificate Endorsed Warehouse to warehouse
in blank for th e Invoice value O ther (specify)
plus %
O ther conditions S e ttle m e nt (On re c e ip t o f d o c u m e n ts in o rd e r/a t m a tu rity )

NB. N o d o c u m e n t w i ll b e d e m a n d e d f o r n o n - d o c u m e n ta r y Branch Sort code
c o n d itio n s u n less s p e c ific a lly req ue s ted . (See n o te 8.)
D ebit our Sterling Account num ber
Debit our Currency Account num ber
U tilise Forward C ontract num ber:
M a tu rin g Rate
Forward cover being arranged
Commission and charges ( i f d iffe r e n t]
D ebit our Sterling Account num ber

Debit our Currency Account num ber
W e r e q u e s t y o u t o issue y o u r Irre v o c a b le I m p o r t L e tte r o f C re dit

f o r o u r a c c o u n t in accordonr. e w ith th e a b o v e In s tru c tio n s a n d
s u b je c t to th e c o n d itio n s p r in t e d o v e rle a f. (See n o te I )
ANNEX 1
S to m p a n d u g n a tu re (s ) o n b e h a lf o f c u s to m e r in a cco rda nce

w it h m a n d a te h e ld b y Bank.
Commissions and charges (Seecondition/)

A ll our account
ли beneficiaries account I-----------------------
I Fa v co d e w o rd
r e m a in d e r o u r s LUJte
ANNEX 2
CSR/EC1
125 3043 3174 125 3043 3174
-
Shipper’s N am e and Address Shipper’s Accounl Number Not negotiable
Air Waybill
Issued by BRITISH AIRWAYS
British Airways London
M ember ot IATA WORLD CARGO
Copies i 2 and 3 of this Air Waybill are originals and have the same validity
C ons'gnee s Name and A ddress C onsignee's Accounl Number tt is agreed that the goods herein are accepted in apparent good order and condition
texcepl as noted) for carnage SUBJECT TO THE CONDITIONS OF CONTRACT ON THE
REVERSE HEREOF ALL GOODS MAY BE CARRIED BY ANY OTHER MEANS INCLUDING
ROAD OR ANY OTHER CARRIER UNLESS SPECIFIC CONTRARY INSTRUCTIONS ARE
GIVEN HEREON BY THE SHIPPER. AND SHIPPER AGREES THAT THE SHIPMENT MAY BE
CARRIED VIA INTERMEDIATE STOPPING PLACES WHICH THE CARRIER DEEMS
APPROPRIATE THE SHIPPER S ATTENTION IS DRAWN TO THE NOTICE CONCERNING
CARRIER'S LIMITATION OF LIABILITY. Shipper may increase such limitation of liability hy
declanng a higher value for carriage and paying a supplemental charge if required
Telephone Number ISSUING CARRIER MAINTAINS CARGO ACCIDENT LIABILITY INSURANCE
Issuing Carrier's Agent Nam e and City Accounting Information
Agent's IATA Code
Airport of Departure (Addr. of First Carrier) and R eq u ested Routing
To By First Carrier V.Routing and Destination ^ to by to Currency chgs I wt /val Other Declared Value for Carnage Declared Value for Customs
C odejppQ C O L l PPO IcO LL
Airport of Destination F lig h t/D a tclôr Carrier Use Onf^/plight/Date
Handling Information
CANCELLED - SPECIMEN CORY

No of Gross C hargeable R ate Nature and Quantity of G oods
Pieces Weight Total
Weight {inch Dim ensions or Volume)
RCP C harge
V. Prepaid Weigh C harge C ollect J O ther C harges
_V. I
Valuation C h arg e
_ J
__
_____________I ______ _
V Tax J
^ Total O ther C harges Due Agent J Shipper certifies that the particulars on the face hereof are correct a n d th at insofar as any part of
the consignm ent contains dangerous goods, such part is properly described by nam e and is in
proper condition for carriage by air according to the applicable D angerous G oods Regulations.
L Total Other C harges Due C arrier J
................................................
Signature of Shipper or his Agent
Total Prepaid J T Total Collect 7"
Currency Conversion R ates 4CG C h arg es in Dest. Currency^

Executed on (date) ai (place) Signature ot Issuing e a rn e r or its Agent]
For C arriers Use only at

^ C h a rg e s at Destination J L Total Collect C h arg es J ^ О О r| " 7 Д
Destination
M. 197 -9 th
ORIGINAL 3 (FOR SHIPPER)
178
ANNEX 3
1. Shipbroker THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO) Щ §§Э

STANDART BAREBOAT CHARTER
none CODE NAME: "BARECON 89" PART I
2. P lace and d ate
Kiev,Ukraine 26.07. 2000

3 O w ners/Place of business 4. Bareboat ch arterers ( C h arterers ) / P lace of b usiness
Sovereign Maritime Inc. Silvercone Holdings Ltd.

80 B r o a d S t r e e t T h e m i s C o u r t 2, F l a t 201-
Monrovia, Liberia 202, P . O . B o x : 40
8100, Paphos, Cyprus
5. V essel's nam e, Call Sign and Flag (Cl. 9 (c))
m / v Petr Pervyy, J 8 Q X 5 , St. Vinsent and The Grenadines

t/b/r Primexpress
6. Type of V essel 7 G R T7N R T
passenger / ro-ro 12602/4811

8. W hen / W here built 9. Total DWT (abt.) in m etric to n s o n sum m er freeboard
1982, Szcecin, Poland 1883
10. C lass (Cl. 9) 11. Date of last special survey by th e V essel’s classification society
KM (*) Л2 [1] A2 May 2000

12. Further particulars of V essel (also indicate minimum num ber of m onths’ validity of c lass certificates a g re e d acc. to Cl. 14)
six month m i n i m u m v a l i d i t y of class certificate
13. Port or P lace of delivery (Cl. 2) 14. Time for delivery (Cl. 3 ) 15. Cancelling d a te (Cl. 4)
31.07.2000 31.07.2000
16. Port or P lace of redelivery (Cl. 14)
Jabel Ali, alongside the berth
to be m u t u a l l y agreed
17. Running d ay s’ notice if o ther than s ta te d in Cl. 3 18. Frequency of dry-docking if o ther than stated in Cl. 9 ( f)
according to C1.3 according to C l . 9 (f)
19. Trading Limits (Cl. 5)
according to Cl. 5
20. C harter period 21. C harter Hire (Cl. 10)
fifteen years USD 3,000 (three thousand) per day

excluded p e r i o d of repairs cost of repairs on owner account
22. R ate of interest payable acc. to Cl. 10 (f) and, if applicable, acc. to PART IV 23. Currency and m ethod of paym ent (Cl. 10)
none in us dollars by bank remittance
(co n tinu ed )
179
{continued) “ B A R EC O N 89” S tan d art B areb o at PART I
C harter _____________________________________________
24. P lace of payment; also state beneficiary and bank acco u n t (CI.10) 25. Bank g u arantee/bond (sum and place) (Cl. 22.) (optional)
to be m u t u a l l y agreed none
26. M ortgage(s), if any, (state w hether Cl. 11 (a) or (b) applies; if 11 (b) applies 27. Insurance (marine or w ar risks) (state value acc. to Cl. 12 (f) o r if applicable, acc. to
state date of Deed (s) of Covenant and n am e of M ortgagee(s)/Place of business) Cl. 13 (k)) (also state if Cl. 13 applies)
(Cl. 11)
Cl. 13 not to apply
according to C l . 11 (b) 15.000.000 (fifteen million) US
dollars
28. Additional insurance cover, if any, for ow ners' account limited to (cl. 12 (b)) or, if 29. Additional insurance cover, if any, for C harterers' account limited to (Cl. 12 (b)) or, if
applicable, (cl. 13 (g)) applicable, (Cl. 13 (g))
none none
30. Latent defects (only to be filled in if period other than stated in Cl 2) 31. W ar cancellation (indicate countries agreed) (Cl. 24)
according to C l . 2 according to C l . 24
32. Brokerage com m ission a n d to whom payable (Cl. 25)
none
33. Law and arbitration (state 26.1., 26.2., or 26.3. of Cl. 26 a s agreed, also state 34. Number of additional c la u se s covering special provisions, if agreed
place of arbitration) (Cl. 26)
according to C l . 26.1 none
35. Newbuilding V essel (indicate with “y e s” o r “no" w hether Part III applies) 36 Nam e and place of Builders (only to b e filled in if Part III applies)
(optional)
part III not apply
no
37. V essel's Yard Building No. (only to be filled in if Part III applies) 38 Date of Building C ontract (only to b e filled in if Part III applies)
part III not apply part III not apply
39. H ire/purchase agreem en t (indicate with “y es’ o r “n o ” w h eth er part iv applies) 40. Bareboat C harter Registry (indicate with “y es’ or “no" w hether Part V applies)
(optional) (optional)
no yes
41. Flag and Country of the Bareboat C harter Registry (only to be filled in if Part V 42. Country of th e Underlying Registry (only to b e filled in if Part V applies)
applies)
St. Vinsent and The Grenadines
Ukrainian, Ukraine
P R E A M B L E - It is m u tu a l ly a g r e e d t h a t t h i s C o n t r a c t s h a l l b e p e r f o r m e d s u b j e c t to t h e c o n d i t i o n s c o n t a i n e d in t h i s C h a r t e r w h ic h s h a l
i n c l u d e P A R T I a n d P A R T II. In t h e e v e n t o f a c o n f l i c t o f c o n d i t i o n s , t h e p r o v i s i o n s o f P A R T I s h a l l p r e v a i l o v e r t h o s e o f P A R T II to t h e
e x t e n t o f s u c h c o n f l i c t b u t n o f u r t h e r . It is f u r t h e r m u tu a l ly a g r e e d t h a t P A R T III a n d / o r P A R T IV a n d / o r P A R T V s h a l l o n ly a p p ly a n c
s h a l l o n ly fo rm p a r t o f t h i s C h a r t e r if e x p r e s s l y a g r e e d a n d s t a t e d in t h e B o x e s 3 5 , 3 9 a n d 4 0 . If P A R T III a n d / o r P A R T IV a n d / o r P A R T
V a p p ly , it is f u r t h e r m u tu a l ly a g r e e d t h a t in t h e e v e n t o f a c o n f l i c t o f c o n d i t i o n s , t h e p r o v i s i o n s o f P A R T I a n d P A R T II s h a l l p r e v a i l o v e r
t h o s e o f P A R T III a n d / o r P A R T IV a n d / o r P A R T V to t h e e x t e n t o f s u c h c o n f l i c t b u t n o f u r t h e r
180
ANNEX 4
PART II
“BARECON 89” Standard Bareboat Charter
1 1. Definitions 97 A complete inventory of the Vessel's entire equipment, outfit, appliances and
2 In this Charter, the following terms shall have meanings hereby assigned to 96 of aH consumable stores on board the Vessel shall be made by the Charterers
99 in conjunction with the Owners on delivery and again on redelivery of the
3 them:
100 Vessel. The Charterers and the Owners, respectively, shall at the time of
4 "The Owners" shaH mean the person or company registered as Owners of the 101 delivery and redelrvery take over and pay for all bunkers, lubricating oil, water
5 Vessel 102 and unbroached provisions, paints, oils, ropes and other consumable stores in
6 "The Charterers" shall mean the Bareboat charterers and shall not be 103 the said Vessel at the then current market prices at the ports of delivery and
7 constructed to mean a time charterer or a voyage charterer. 104 redelrvery, respectively.
8 2. Delivery (not applicable to newbutlding vessels) 105 9. Maintenance and Operation

9 The Vessel shall be delivered and taken over by the Charterers at the port or 106 (a) The Vessel shall during the Charter period be in the full possession and at
10 place indicated in Box 13. in such ready berth as the Charterers may direct 107 the absolute disposal for all purposes of the Charterers and under their
11 The Owners shall before and at the time of delivery exercise due diligence to 108 complete control in every respect The Charterers shall maintain the Vessel
12 make the Vessel seaworthy and in every respect ready in hull, machinery and 109 her machinery, boilers, appurtenances and spare parts in a good state of
13 equipment for service under this Charter. The Vessel shall be properly 110 repair, in efficient operating condition and in accordance with good
14 documented at time of delivery. 111 commercial maintenance practice and, except as provided for in Clause 13 (I)
15 The delivery to the Charterers of the Vessel and the taking over of the Vessel 112 they shall keep the Vessel with unexpired classification of the class indicated
16 by the Charterers shall constitute a full performance by the Owners of all the 113 in Box 10 and with other required certificates in force at all times. The
17 Owners' obligations under Clause 2, and thereafter the Charterers shall not 114 Charterers to take immediate steps to have the necessary repairs done within
18 be entitled to make or assert any claim against the Owners on account of any 115 a reasonable time falling which the Owners shall have the right of withdrawing
19 conditions, representations or warranties expressed or implied with respect to 116 the Vessel from the service of the Charterers without noting any protest and
20 the Vessel but the Owners shall be responsible for repairs or renewals 117 without prejudice to any claim the Owners may otherwise have against the
21 occasioned by latent defects in the Vessel, her machinery or appurtenances, 118 Charterers under the Charter.
22 existing at the time of delivery under the Charter, provided such defects have 119 Unless otherwise agreed, in the event of any improvement, structural changes
23 manifested themselves within 18 months after delivery unless otherwise 120 or expensive new equipment becoming necessary for the continued operation
24 provided in Box 30. 121 of the Vessel by reason of new class requirements or by compulsory
122 legislation costing more than 5 per cent, of the Vessel's marine insurance
25 3. Time fo r Delivery (not applicable to newbuilding vessels) 123 value as stated in Box 27. then the extent, if any, to which the rate of hire shall
124 be varied and ratio in which the cost of compliance shall be shared between
26 The Vessel to be delivered not before the date indicated in Box 14 unless with
125 the parties concerned in order to achieve a reasonable distribution thereof as
27 the Charterers' consent. Unless otherwise agreed in Box 17, the Owners to
126 between the Owners and the Charterers having regard, inter alia, to the length
28 give the Charterers not less than 30 running days' preliminary and not less
127 of the period remaining under the Charter, shall in the absence of agreement,
29 than 14 days definite notice of the date on which the Vessel is expected to be
128 be referred to arbitration according to Clause 26.
30 ready for delivery.
129 The Charterers are required to establish and maintain financial security or
31 The Owners to keep the Charterers closely advised of possible changes in the
130 responsibility in respect of oil or other pollution damage as required by any
32 Vessel's position.
131 government, including Federal, state or municipal or other division o r authority
132 thereof, to enable the Vessel, without penalty or charge, lawfully to enter
33 4. Cancelling (not applicable to newbuilding vessels) 133 remain at. or leave any port, place, territorial or contiguous waters of any
34 Should the Vessel not be delivered latest by the cancelling date indicated in 134 country, state or municipality in performance of this Charter without any delay
35 Box 15, the Charterers to have the option of cancelling this Charter without 135 This obligation shall apply whether or not such requirements have been
36 prejudice to any claim the Charterers may otherwise have on the Owners 136 lawfully imposed by such government or division or authority thereof. The
37 under the Charter. 137 Charterers shall make and maintain all arrangements by bond or otherwise as
38 If it appears that the Vessel will be delayed beyond the cancelling date, the 138 may be necessary to satisfy such requirements at the Charterers' sole
39 Owners shall, as soon as they are in a position to state with reasonable 139 expense and the Charterers shall indemnify the Owners against all
40 certainty the day on which the Vessel should be ready, give notice thereof to 140 consequences whatsoever (including loss of time) for any failure or inability to
41 the Charterers asking whether they will exercise their option of cancelling, 141 do so.
42 and the option must then be declared within one hundred and sixty-eight (168) 142 ------ TOVALO P SC HEME»(Applicable to o il tank voggoIs only). Trio Chortorers are
43 hours of the receipt by the Charterers of such notice. If the Charterers do not 143 required to enter- the Vessel under the TOVALOP SCHEME or umtef- any
44 then exercise their option of cancelling, the seventh day after the readiness 144 similar compulsory'ochome upon ■deliver у umter- t hie Charter af>d-to maietow
45 date stated in the Owners' notice shall be regarded as a new cancelling date
46 for the purpose of this Clause 146 (b) The Charterers shall at their own expense and by their own procurement
147 man, victual, navigate, operate, supply, fuel and repair the Vessel whenever
47 5. Trading Limits. 148 required during the Charter period and they shall pay all charges and
48 The Vessel shall be employed in lawful trades for the carriage of suitable 149 expenses of every kind and nature whatsoever incidental to their use and
49 lawful merchandise within the trading limits indicated in Box 19. The 150 operation of the Vessel under this Charter, including any foreign general
50 Charterers undertake not to employ the Vessel or suffer the Vessel to be 151 municipality and/or state taxes. The Master, officers and crew of the Vessel
51 employed otherwise than in conformity with the terms of the instruments of 152 shall be servants of the Charterer for all purposes whatsoever, even if for any
52 insurance (including any warranties expressed or implied therein) without first 153 reason appointed by the Owners.
53 obtaining the consent to such employment of the insurers and complying with 154 Charterers shall comply with the regulations regarding officers and crew in
54 such requirements as to extra premium or otherwise as the insurers may 155 force in the country of the Vessel"s flag or any other applicable law.
55 prescribe. If required, the Charterers shall keep the Owners and the
56 Mortgagees advised of the intended employment of the Vessel
57 The Charterers also undertake not to employ the Vessel or suffer her 158 indicated- in Bo*-5r Provided, however, that the Charterers shall have the
58 employment in any trade of business which is forbidden by the law of any 159 liberty to paint the Vessel in their own colours, install and display their funnel
59 country to which the Vessel may sail or is otherwise illicit or carrying illicit or 160 insignia and fly their own house flag. Painting and re-painting, instalment and
60 prohibited goods or in any manner whatsoever which may render her liable to 161 re-instalment to be for the Charterers’ account and time used thereby to count
61 condemnation, destruction, seizure or confiscation. 162 as time on hire.
62 Notwithstanding any other provisions contained in this Charter it is agreed that 163 (d) The Charterers shall make no structural changes in the Vessel or changes
63 nuclear fuels or radioactive products or waste are specifically excluded from 164 in the machinery, boilers, appurtenances or spare parts thereof without in
64 the cargo permitted to be loaded or carried under this Charter This exclusion 165 each instance first securing the Owners' approval thereof. If the Owners so
65 does not apply to radio-isotopes used or intended to be used for any 166 agree, the Charterers shall, if the Owners so require, restore the Vessel to its
66 industrial, commercial, agricultural, medical or scientific purposes provided the 167 former condition before the termination of the Charter.
67 Owners' prior approval has been obtained to loading thereof
168 (e) The Charterers shall have the use of all outfit, equipment, and appliances
169 on board the Vessel at the time of delivery, provided the same or their
68 6. Su rveys (hot applicable to newbuilding vessels) 170 substantial equivalent shall be returned to the Owners on redelivery in the
69 Survey on D elivery and Redehverv. - The Owners and Charterers shall each 171 same good order and condition as when recewed, ordinary wear and tear
70 appoint surveyors for the purpose of determining and agreeing in writing the 172 expected The Charterers shall from time to time during the Charter period
71 condition of the Vessel at the time of delivery and redelivery hereunder. The 173 replace such items of equipment as shall be so damaged or worn as to be
72 Owners shall bear ail expenses of the On-Survey including loss of time if any, 174 unfit for use. The Charterers are to procure that ail repairs to or replacement
73 and the Charterers shall bear all expenses of the Off-Survey including loss of 175 of any damaged, worn or lost parts or equipment be effected in such manner
74 time, if any, at the rate of hire per day or pro rata, also including in each case 176 (both as regards workmanship and quality of materials) as not to diminish the
75 the cost of any docking and undocking, if required, in connection herewith. 177 value of the Vessel The Charterers have the right to fit additional equipment
178 at their expense and risk but the Charterers shall remove such equipment at
76 7. Inspection 179 the end of the period if requested by the Owners.
77 Inspection. - The Owners shall have the right at any time to inspect or survey 180 Any equipment including radio equipment on hire on the Vessel at time of
78 the Vessel or instruct a duly authorised surveyor to carry out such survey on 181 delivery shall be kept and maintained by the Charterers and the Charterers
79 their behalf to ascertain the condition of the Vessel and satisfy themselves 182 shall assume the obligations and liabilities of the Owners under any lease
80 that the Vessel is being properly repaired and maintained Inspection or 183 contracts in connection therewith and shall reimburse the Owners for all
81 survey in dry-dock shall be made only when the Vessel shall be in dry-dock 184 expenses incurred in connection therewith, also for any new equipment
82 for the Charterers' purpose. However, the Owners shall have the right to 185 required in order to comply with radio regulations
83 require the Vessel to be dry-docked for inspection if the Charterers are not 186 (f) The Charterers shall dry-dock the Vessel and dean and paint her
84 docking her at normal classification intervals. The fees for such inspection or 187 underwater parts whenever the same may be necessary, but not less than
85 survey shall in the even of the Vessel being found to be in the condition 188 once in every calendar months after delivery unless otherwise agreed in Box
86 provided in Clause 9 of this Charter be payable by the Owners and shall be 189 18
87 paid by the Charterers onty in the event of the Vessel being found to require
88 repairs or maintenance in order to achieve the condition so provided All time 190 10. Hire
89 taken in respect of inspection, survey or repairs shall count as time on hire
191 (a) The Charterers shall pay to the Owners for the hire of the Vessel at the
90 and shall form part of the Charter period.
192 lump sum per calendar month as indicated in Box 21 commencing on and
91 The Charterers shall also permit the Owners to inspect the Vessel s log books 193 from the date and hour of her delivery to the Charterers and at and after the
92 whenever requested and shall whenever required by the Owners furnish them 194 agreed lump sum for any part of a month. Hire to continue until the date and
93 with full information regarding any casualties or other incidents or damage to 195 hour when the Vessel is redelivered by the Charterers to her Owners
94 the Vessel. For the purpose of this Clause, the Charterers shall keep the
196 (b) Payment of Hire, except- for the first and the last month's Hire, of sub-
95 Owners advised of the intended employment of the Vessel
197 clause (c) of this Clause is applicable, shall be made in cash without discount
198 every month in advance on the First day of each month in the currency and in
96 8. Inventories and Consumable Oil and Stores. 199 the manner indicated in Box 23 at the place mentioned in Box 24
181
PART II
“BARECON 89” Standard Bareboat Charter
200 (c) Payment of Hire for the first and last month's Hire if less than a full month
201 shall be calculated proportionally according to the number of days in the
202 particular calendar month and advance payment to be effected accordingly
203 (d) Should the Vessel be lost or missing, Hire to cease from the date and time
204 when she was lost or last heard of. Any Hire paid in advance to be adjusted
205 accordingly.
206 (e) Time shall be of the essence in relation to payment of Hire hereunder In
207 default of payment beyond a period of seven running days, the Owner shall
have the right to withdraw the Vessel from the service of the Charterers Charterers ohaM rectify tho pocitiow-wrthin seven-running days, facing"
208
209 without noting any protest and without interference by any other formality
210 whatsoever, and shall, without prejudice to any other claim the Owners may Chartere re -w itbout prejudice to any alarm the O wners may otherwi se hove
221211 otherwise have against the Charterers under the Charter, be entitled to
damages in respect of all costs and losses incurred as a result of the
213 Charterers' default and the ensuing withdrawal of the Vessel. ivided tho Charterer shall pay to tho Owners all
214 (f) Any delay in payment of Hire shall entitle the Owners to an interest at the lessee and--indemnify the Owners against all claims and de mands-w h ich
rate per annum as agreed in Box 22. If Box 22 has not been filled in the would otherwi se have been covered by such insurance
215
216 current market rate in the country where the Ovwers have their Principal
217 Place of Business shall apply.
settlement of all■miscellaneous < > connection-with.-such repairs г
218 11. Mortgage
219 (a) Owners warrant that they have not effected any mortgage of the Vessel.
220 (b) The Vessel chartered under this Charter is financed by a mortgage Underwriters for such expe nditures upon presentatren-ot-assounts-
221 according to the Deed(s) of Covenant annexed to this Charter and as stated
(e) The Charterers to remain -responsi ble for and to effect repairs - and
222 in Box 26. By their counter-signature on the Deed(s) of Covenant, the
settleme nt of costs and ex p e n s e insurrod thereby in respect of all othe r
223 Charterers undertake to have acquainted themselves with all terms,
repairs not covered— by the--insurance s-and/or not exoeoding any possible
224 conditions and provisions of the said Deed(s) of Covenant The Charterers
225 undertake that they will comply with all such instructions or directions in
226 regard to the employment, insurance, repairs and maintenance of the Vessel, - -(f) AH time used for repairs under the provisions of sub c lause (d) and (ej- ef
227 etc., as laid down in the Deed(s) of Covenant or as may be directed from this- Clause and for repairs of latent defects according-to-Cl ause 2 above;
228 time to time during the currency of the Charter by the Mortgage(s) in including any deviation, shall oeent as t ime on hire and shall form port of the
229 conformity with the Deed(s) of Covenant.
230 (c) The Owners warrant that they have not effect any mortgage(s) other than The Owners shal l -net -he responsible for- any expenses as are incide nt to-the
231 stated in Box 26 and that they will not effect any other mortgage(s) without the
232 prior consent of the Charterers
(O ptional. Clauses 11(a) and 11(b) are alternatives; indicate alternative (g) If th e -Gonddions -of-the above ii s pe rmit additional ii
233
234 agreed in Boy 26). placed by-the-parties such c f shall be limited-te -the amount for each party
the case may be-shall immediately furnish the other party wtth particulars-ef
235 12. Insurance and Repairs
any additional insurance effected- inctuding- copies of any cover notes o r
236 (a) During the Charter period the Vessel shall be kept insured by the
237 Charterers at their expense against marine, war and Protection and Indemnity >e ny c & where-the c isent и esa ry-.
238 risks in such form as the Owners shall in writing approve, which approval shall
(h) Should the vessel become an actual, constructive; compromised or agreed
239 not be unreasonably withheld. Such marine, war and P and I. insurance shall
total 10 66 under tho insurances required under 6u& c lause (a) of this Clause,-
240 be arranged by the Charterers to protect the interests of both the Owners and
all insurance payments- for- such loss shall be paid to the Owne rs -wfro -shall
241 the Charterers and mortgagees (if any), and the Charterers shall be at liberty
distribute the monoyo botweon themselves and the Charterers according to
242 to protect under such insurance the interests of any managers they may
243 appoint All insurance policies shall be in the joint names of Owners and the
244 Charterers as their interests may appear. (i) If the Vessel becomes an actual , constructive,- compromiserhor agrood total
lose under the insurances arranged by the Owners m accordance wrth -suh-
245 If the Charterers fall to arrange and keep any of the insurance provided for
Giause (a) of th is C lause, this-Chatter shall te rminate as if -the date of such
246 under the provisions of sub-clause (a) above in the manner described therein,
247 the Owners shall notify the Charterers whereupon the Charterers shall rectify
248 the position within seven running days, falling which Owners shall have the
249 right to withdraw the Vessel from the service of the Charterers without
250 prejudice to any claim the Owners may otherwise have against the
251 Charterers.
252 The Charterers shall, subject to the approval of the Owners and the the provisions of sub c lause (a) of this С1а ыбо, the value of the Vessel is the
253 Underwriters, effect all insured repairs and shall undertake settlement of all
254 costs in connection with such repairs as well as insured charges, expenses ■(I) Notwithstanding anything oontalned -rn Ciauso 0 (a), it is agreed that-under
255 and liabilities (reimbursement to be secured by the Charterers from the
256 Underwriters) to the extend of coverage under the insurance herein provided
257 for
258 The Charterers also to remain responsible for and to effect repairs and Redelivery
259 settlement of costs and expenses incurred thereby in respect of alt other The Charters shall at the expiration of the Charter period redeliver the Vessel
260 repairs not covered by the insurance and/or not exceeding any possible at a safe and ice-free port or place as indicated in Box 16. The Charterers
261 franchise(s) or deductibles provided for in the insurance. shall give the Owners not less than 30 running days' preliminary and not less
262 All time used for repairs under the provisions of sub-clause (a) of this Clause than 14 days' definite notice of expected date, range of ports of redelivery or
263 and for repairs of latent defects according to Clause 2 above including any port or place of redelivery. Any changes thereafter in Vessel's position shall
264 deviation shall count as time on hire and shall form part of the Charter period be notified immediately to the Owners
265 (b) Under conditions of the above insurances permit additional insurance to Should the Vessel be ordered on a voyage by which the Charter period may
266 be placed by the parties, such cover shall be limited to the amount for each be exceeded the Charterers to have the use of the Vessel tom enable them
267 party set out in Box 28 and Box 29, respectively. The Owners or the to complete the voyage, provided it could be reasonably calculated that the
268 Charterers as the case may be shall immediately furnish the other party with voyaqe would allow redelivery about the time fixed the termination of the
269 particulars of the additional insurance effected, including copies of any cover Charter.
270 notes or policies and the written consent of the insurers of any such required The vessel shall be redelivered to the Owners in the same or as good
271 insurance in any case where the consent of such insurers is necessary. structure, state, condition and class as that in which she was delivered, fair
272 (c) Should the Vessel become an actual, constructive, compromised or wear and tear not affecting class expected.
273 agreed total loss under the insurances required under sub-clause (a) of The Vessel upon redelivery shall have her survey cycles up to date and class
274 Clause 12, all insurance payments for such loss shall be paid to the Mortgagee, certificates valid for at least the number of months agreed in Box 12..
275 if any. in the manner described in the Deed(s) of Covenant, who shall
276 distribute the moneys between themselves, the Owners and the Charterers
Non-Lien and Indemnity
277 according to their respective interests. The Charterers undertake to notify the
278 Owners and the Mortgagee, if any, of any occurrences in consequence of The Charters will not suffer, nor permit to be continued, any lien or
279 which the Vessel is likely to become a Total Loss as defined in this Clause encumbrance incurred by them or their agents, which might have priority over
(d) If the Vessel becomes an actual, constructive, compromised or agreed the title and interest of the Owners in the Vessel.
280
281 total loss under the insurances arranged by the Charterers in accordance with The Charterers further agree to fasten to the Vessel in a conspicuous place
282 sub-clause (a) of this Clause, this Charter shall terminate as of the date of and to keep so fastened during the Charter period a notice reading as
283 such loss. follows: -
284 (e) The Owners shall upon the request of the Charterers, promptly execute “ This Vessel is the property of (name of Owners). It is under charter to (name
285 such documents as may be required to enable the Charterers to abandon the of Charterers) and by the term of the Charter party neither the Charterers nor
286 Vessel to insurers and claim a constructive total loss. the Master have any right, power or authority to create, incur or permit to be
imposed on the Vessel any lien whatsoever."
287 (f) For the purpose of insurance coverage against marine and war risks under
288 the provisions of sub-clause (a) of this Clause, the value of the Vessel is the The Charterers shall indemnify and hold the Owners harmless against any
289 sum indicated in Box 27. lien of whatsoever nature arising upon the Vessel during the Charter period
while she is under the control of the Charteres, and against any claims
290 43-— In s ur ance , Re p a irs and Classificat io n against the Owners arising out of or in relation to the operation on the Vessel
by the Charterers. Should the Vessel be arrested by reason of claims or
291 ------- (O ptional, only to a pply if oxpronely agreed and stated w>-go*-27.- m whiGh liens arising out of her operation hereunder by the Charterers, the Charterers
292 event Clause 12 sh all be Gonsiderod delated) shall at their own expense take all reasonable steps to secure that within a
293 reasonable time the Vessel is released and at their own expense put up bail
294 to secure release of the Vessel.
295
296 396 16. Lien
297 damage-to the Vessel-о he r machinery or appurtenance s covered by such
397 The Owners to have a lien upon all cargoes and sub-freights belonging to the
298 insurance, or on account of payments made to d ischarge ciatfn- aga*ae.t-or
398 Charteres and any Bill of Landing freight for all claims under this Charter, and
299
399 the Charterers to have a lion on the Vessel for ali moneys paid in advance
182
P A R T II
“ B A R E C O N 89” S ta n d a rd B a re b o a t C h a rte r
400 and not earned 460 24. W ar
461 (a) The Vessel unless the consent of the Owners be first obtained not to be
401 17. Salvage 462 ordered nor continue to any place or on any voyage nor be used on any
402 All salvage and towage performed by the Vessel shall be for the Charterers 463 service which will bring her within a zone which is dangerous as a result of
403 benefit and the cost of repairing damage occasioned thereby shall be borne 464 any actual or threatened act of war, war, hostilities, warlike operations, acts of
404 by the Charterers. 465 piracy or of hostility or malicious damage against this or any other vessel or its
466 cargo by any person, body or State whatsoever, revolution, civil war, civil
467 commotion or the operation of international law, nor be exposed in any way to
405 18. W reck Removal
468 any risks or penalties whatsoever consequent upon the imposition of
406 In the event of the Vessel becoming a wreck or obstruction to navigation the 469 Sanctions, nor carry any goods that may in any way expose her to any risks of
407 Charterers shall indemnify the Owners against any sums whatsoever which 470 seizure, capture, penalties or any other interference any kind whatsoever by
406 the Owners shall become liable to pay and shall pay in consequence of the 471 the belligerent or fighting powers or parties or by any Government or Ruler.
409 Vessel becoming a wreck or obstruction to navigation
472 (b) The Vessel to have liberty to comply with any orders or directions as to
473 departure, arrival, routes, ports of call stoppages, destination, delivery or in
410 19. General Average 474 any other wise whatsoever given by the Government of the nation under
411 General Average, if any, shall be adjusted according to the York-Antv»rp 475 whose flag the Vessel sails or any other Government or any person (or body)
412 Rules 1974 or any subsequent modification thereof current at the time of the 476 acting or purporting to act with the authority of such Government or by any
413 casualty. 477 committee or person having under the terms of the war risks insurance on the
414 The Charter Hire not to contribute to General Average 478 vessel the right to give any such orders or directions
479 (c) In the event of outbreak of war (whether there be a declaration of war or
415 20. Assignm ent and Sub-Demise 480 not) between ant two or more of the countries as stated in Box 31, both the
416 The Charterers shall not assign this Charter nor sub-demise the Vessel 481 Owners and the Charterers shall have the right to cancel this Charter,
417 except with the prior consent in writing of the Owners which shall not be 482 whereupon the Charterers shall redeliver the vessel to the Owners in
unreasonably withheld and subject to such terms and conditions as the 483 accordance with Clause 14, if she has cargo on board after discharge thereof
418
419 Owners shall approve. 484 at destination, or if debarred under this Clause from reaching or entering it at
485 a near open and state port as directed by the Owners, or if she has no cargo
486 on board, at the port at which she then is or if at sea at a near open and safe
420 21. B ills o f Lading
487 port as directed by the Owners. In all cases hire shall continue to be paid in
421 The Charterers are to procure that all Bills of Lading issued for carriage of 488 accordance with Clause 10 and except as aforesaid all other provisions of this
422 goods under this Charter shall contain a Paramount Clause incorporating any 489 Charter shall apply until redelivery.
423 legislation relating to carrier's liability for cargo compulsorily applicable in the
424 trade; if no such legislation exists, the Bills of Landing shall incorporate the 490 25 C o m m issio n
425 British Carriage of goods by Sea Act. The Bills of lading shall also contain the
426 amended new Jason Clause and the Both-to Blame Collision Clause.
427 The Charterers agree to indemnify the Owners against all consequences or 493 Iogg tha n -is песебьогу to cover the actual expenses of the-Brokers -and--a
428 liabilities arising from the Master, officers or agents Bills of landing or other 494 reas onable fee le* trie»» work -If -the kill Hire w. net paid owing to breach of
429 documents 495 Charter- by either- o f the parties the party liable -thereof to- i ndemnify-the
430 23<— Bank Guarantee.

431 ------- The Charterers underta ke to furnish, before delivery of the Vessel. » first class
432 bank guarantee or bond in the sum and the place a& indicated-irv-Box 25 as 499 to oxceocktho brokerage of -one-yea^ e Hire
433
434 (O ptional, only to apply if Box 25 fille d in). 500 26. Law and A rbitration
501 26.1 This Charter shall be governed by English law and any dispute arising
435 23. R equisition/Acquisition 502 out of this Charter shall be refferred to arbitration in London, one arbitrator
436 (a) In the event of the Requisition for the Hire of the Vessel by any 503 being appointed by each party, in accordance with Arbitration Acts 1950 and
437 governmental or other competent authority (hereinafter referred to as 504 1979 or any statutory modification or re-enactment thereof for the time being
438 Requisition for Hire") irrespective of the date during the Charter period when 505 in force. On the receipt by one party of the nomination in \Miting of the other
439 "Requisition for Hire" may occur and irrespective of he length thereof and 506 party’s arbitrator, that party shall appoint their arbitrator within fourteen days,
440 whether or not it be for an indefinite or a limited period of time, and 507 failling which the decision of the single Arbitrator appointed shall apply. If two
441 irrespective of whether it may or will remain in force for the remainder for the 508 Arbitrators properly appointed shall not agree they shall appoint an umpire
442 Charter period, this Charter shall not be deemed thereby or thereupon to be 509 whose decision shall be final
443 frustrated or otherwise terminated and the Charterers shall continue to pay 510 26.2. Should any- dtspete-aribo out of thio Chartor, tho matter in d ispute shali
444 the stipulated hire in the manner provided by this Charter until the time when 511 be referred to -three persons at Mew York, one to be appoi nted by each if the
445 the Charter would have terminated pursuant to any of the provisions hereof 512
446 always provided however that in the event of "Requisition for Hire” or 513 two of them shall be final, and purpose- of enforcing- any- award, this
447 compensation received or receivable by the Owners shall be payable to the 514 agreement may-bo mode bo mode о rulo of tho Court-
448 Charterers during the remainder of the Charter period or the period of the
515 ■The arbitrators bhaH bo members of the Society of Maritime Arbitrators , too-of
449 "Requisition for Hire" whichever to be shorter.
516
450 The Hire under this Charter shall be payable to the Owners from the same 517
451 time as the requisition Hire is payable to the Charterers
518 26.3. Any dispute-arising out of this-Charter- shaW-be re fe rred to-afbitratiofi at
452 (b) In the event of the Owners being deprived of their ownership in the Vessel 519 tho place ind-GOto in Box 33, -oobjoct to the law aod- proeed w ee applicable
453 by any Compulsory Acquisition of the Vessel or requisition for title by any 520
454 governmental or other competent authority (hereinafter referred to as 521 --------26.4-. i n-box 33 in -Part I i& not fifed in. cob clause 2 6 1 of this ' Clause shali
455 "Compulsory Acquisition"), then, irrespective of the date during the Charter
522 appty-
456 period when "Compulsory Acquisition" may occur, this Charter shall be
457 deemed terminated as of the date of such “Compulsory Acquisition". In such 523 (2 6 .1 .2 6 .2 and 26.3. are alternatives, indicate alternative agreed in Box 33.)
458 event Charter Hire to be considered as earned and to be paid up to the date
459 and time of such "Compulsory Acquisition".
183
“BARECON 89” Standart Bareboat Charter
PART III
PR O V IS IO N TO A P P L Y FO R N E W B U IL D IN G V E S S E LS O N L Y
fOptional, only to apply rf expressly agreed and stated in Box 35)
48 warranties, whether'expfes&er implied, tho seaworthiness of the Vessel or in
49 howsoever
50 the Building
51 Contract, tho Buildoro become ontitled undor that Contraot- not to deliver tho
52 Vocool to the Own ers,--tne -Owners shall upon giving to the Charterers written
53 notice of Builders becoming so entitled,--be-excused from giving delivery of the
54 Voccol to tho Chartorors and upon roceipt of ouch notice by tho Charterers-this
55 Chorter-shall coooe to have effect
56
57 reject the Vessel the O w er t shall, before ■< i such right ef rejection,.
58 consult the Chartorors and thoroupon
12 themceiveb that construction ir. in accardance with such approved specifications 59
13 and-plane oo rofortod to under- cub ctouee-(a) of this Clauco 60 > (7) days by -notice in writing and upon reoeipt by-the
81
15 of the description sot out theroin providod novortholeec that tho Charter err, ohoH 62 ii) if the Charterers udsh to take delivery of the Vessel they may by notice m-v. 4ting
16 be bound to accept the Vessel from the Owners on the date of delwory by the 63 eath the Builders-.
64 tho torms on wtuch-dolivory should be takon and/or rofrom from exorcising their
18 Building Contract and tho Chartororo undertake that after having € 65 right to rejection and upon receipt of such notice the Owne rs shall commence
19 such negotiations ond/or tako dolivory of the Voccol from tho Builders and
20 tne Vobsel's performance or specification ot-defoctb tf-a >t that in res pect 67 dolwer-her to tho Chartorere
21 of any--repair or replacement ■ot - any dofoote wfoich appear wi thin the first - 4-2 68 Hi) in ne circumstances shall the Charte rers be entitled to rej ect the Vessel
22 69 unless the Ownors are able to reject the Vessel from the Builders:
23 expenditure -incurred m remedying such defects from the BmldersT-bU shall only 70 * ) if this Charter term inates under-set» c lause (b) or (c) of this Clause, the Owners
24 be liable to the Charterers te the extent the Own ers have a valid claim agains t the
71
25 Buildoro unde r the guarantee ctause-ef-tno Building Contract (a copy whereof has
72 of this Chador or its termination
26 been supplied to the Charterers) provided that the Charterers shall be bound-to
27 accept 6uofr-Guffl6 as tho Qwnoro aro able to recover under this clause-end-б1>эИ 73 Guarantee WorRs
28 make no claim -i > the Owners for any difference botwoon tho amounts--*
29 75 guarantee works to bo-performed ■m-accordance veth the building contract terms,
30 any loss of time incurred thereby
31 77 advise the Owners about tho-performance te the extent the Owners may request
33 cargo equipment m accordance wxth the -Borkhng Contract and spec if ications to
35 take delivery of the Vessel afloat when ready fer -delivery- at-tbe-8uride»b-¥ard-of 80 Chartere rs and tho Vossol- shall be paintod i tho colours, display tho funnol
36 сото othor safe and-readily accessible dock, wharf or place as may bo agrood 81
38 Builders -have estimated that tho Vessel win be ready for dolivory to the Owners as
39 therein-provided -but the delivery date fe r the purpose ef this Charter shall be the 83 Tho Qwnore and the -Chortorors chan appoin t-r voyors for tho purpose of
40 date when tho Vessel ir i fact ready for delivory-by the Builders after completion 84
41 85
42 Notwithstanding the foregoing, the Gharterers-s 1 not be obliged-to take delivery 86 W ithout prejudice -te Clause 14 (Part II), the Charterer s-shell- beef all survey
43 87 oxponses and all other-costs, if any, including the oost of docking and undocking, if
44 Charter-and free fer transfer to the-flag che has to-fly- Subject as aforesaid the 88 required, as well os all геренг costs ineurred-
45 Charterers shoU not bo entitled to ref use-acceptance of dolivory of tho Vessel and 89 The Charterers shall a lso hoar all loss of time spent in connec tion w«th ony docking
47 claim againct tho Owner s -m respect of any conditions , ■represe ntations -er
PART IV
H IR E /P U R C H A S E A G R E E M E N T
(O ptional, only to apply if expressly agreed and stated in Box 39)
obligations according to Port I and II a . woH-as Bart 111, if applicable, it is agreed-, account Any T consular and other charges -and-■< i oonnoctod with
that on payment of the last month's hire
hove purchased the Vessel with overything-belonging to hor aed-tho Vecsol ю fully the Sellers shall
p3id for fuffn6h-#>o Buyers with a -Bill of Solo duly attested and-legalised, togethor with a
If the payment-of -the instalment due is delayed for less than-7-rennmg days or for certificate setting out--the registered encumbrances, tf any On delivery of the
reason beyond the Charterers' centre!, the right of wi thdrawal undor the terms of Vossol the Sellers-shall provide for deletion of the Vessel from the-Ship's Register
Clause- 10<e) of Part II shall not be exercised However, any delay in payment of-the
instalment due shaH-епШе the Ownefs te an interest at the rate per annum as of delivery, hand to the Buyers a l classification
agreod in-Box-32--If Box 23 has not been filled in the curren t-market rate in the
country-where the Qwno- -have their Principal Place ef -Business shall apply.-
-to as the Sellers and tho The Wireless Installation and Nautical Instruments, unless on hire, shall be
included in the sale without any extra payment
Tho Vessel with everything belonging te hor chaH be at Sollere' risk and expense
until she ю doliverod to the Buyere subject to the- condit io ns of this-Contract end
the Vessel with everything bolongmg to her shall be delmered- and token -over as
encumbrances and-meutimo liens or any debts whatsoever ether than these sho is ait tho time of dolvory after which tho Soli ore Gholl have i > responsibility for
arising- from anything done or not done by the Buyers er any existing mortgage » faults or def iciencioc of any description
agrood not to be poid off by the timo of dolwery Should any-d o rms, which have
hereby undertake te indemnify the Cuyi

i be provod that the Sellers s icponsiblo for-such
j expenses connected
PART V
PR O V IS IO N TO A P P L Y FO R V E S S E L S R E G IS TE R E D IN A B A R E B O A T C H A R TE R R E G IS TR Y
(O ptional, only to apply if expressly agreed and stated in Box 40)
1 Definitions
2 For the purpose of this PART V. the following terms shall have the meanings If tbe Vessel chartered under this Charter is registered -*»-» Bareboat Charter
3 hereby assigned to them: Regietry-as stated in Box 41 and if tho Qwners-s hall default in the payment of
4 "The Bareboat Charter Registry" shall mean the registry of the State whose flag any amounts due- u nder the mortgogo(s) spec if ied in Box 26, the Chortorors
5 the Vessel will fly and in which the Charterers are registered as the bareboat Gholl, if Go- Foqmred by tho mortgagee, d irect tho-Qvmoro to re -register the-Vessol
6 charterers dunng the period of the Bareboat Charter in tho Underlying Registry oc shown in Box 43
7 “The Underlying Registry" shal mean the registry of the State in which the Owners
8 of the Vessel are registered as Owners and to which jurisdiction and control of the Gtoted in Box 41, due to э-default by tho Owners in the payment of any amounts
9 Vessels will revert upon termination of Bareboat Charter Registration due under th e mortgage(s), tho Charterers shall hove die right to term inate tfus
11 The vessel chartere d unde r this Charter io f inanced by a mortgage and the
12 provisions of Clause 11 (b) (Part ll)-6holl apply
184
ANNEX 5
f . Shipbroker RECOMMENDED
THE BALTIC AND INTERNATIONAL MARITIME COUNCIL
UNIFORM GENERAL CHARTER {AS REVISED 1922, 1976 and 1994) -
(To bo used for trades for which no specially approved form is in force)
CODE NAME: "GENCON"
P a rt I
2. Place and date
3. Owners/Place of business (Cl. 1) 4 Cbarterers/Place of business (Cl. 1)
5. Vessefs name (Cl 1) 6. GT/NT (Cl. 1)
7. DWT all told on summer load line in metric tons (abt.) (Cl. 1) 8. Present position (Cl. 1)
9. Expected ready to load (abt.) (Cl. 1)
10. Loading port or place (Cl. 1) 11 Discharging port or place (Cl. 1)
12.Cargo(also state quantity and margin in Owners'option, If agreed if full and complete cargo not agreed state'part cargo') (Cl. 1)
13. Freight rate (also state whether freight prepaid or payable on delivery) (Cl. 4) 14. Freight payment (state currency and method of payment; also beneficiary and
bank account) (Cl. 4)
15. State if vessel's cargo handling gear shall not be used (Cl. 5) 16. Laytime (if separate laytime for load, and dsch. is agreed fill in a) and b). If
total laytime for load, and disch., fill in c) only) (Cl. 6)
17. Shippers/Ptace of business (Cl. 6) a) Laytime for loading
18 Agents (loading) (Cl. 6) b) Laytime for discharging
19. Agents (discharging) (Cl 6) c) Total laytime for loading and discharging
20. Demurrage rate and manner payable (loading and discharging) (Cl. 7) 21. Cancelling date (Cl. 9)
22 General Average to be ac(usted at (Cl. 12)
23. Freight Tax (state if for the Owners' account) (Cl. 13 (c)) 24 Brokerage commission and to whom payable (Cl. 15)
25. Law and Arbitration (state 19 (a), 19 (b) or 19 (c) of Cl 19; if 19 (c) agreed
also state Place of Arbitration) (if not filled in 19 (a) shall apply) (Cl. 19)
(a) State maximum amount for small daims/shonened arbitration (Cl. 19) 26. Additional clauses covering special provisions, if agreed
It is mutually agreed that this Contract shall be performed subject to the conditions contained in this Charter Party which shall include Part I as well as Part If In the event
of a conflict of conditions, the provisions of Part i shall prevail over those of Part II to the extent of such conflict.
P rinted by The BIMCO C h a rte r Party E d ito r
185
PART II
"Gencon" Charter (As Revised 1922, 1976 and 1994)
1. It is agreed between the party mentioned in Box 3 as the Owners of the Vessel 1 always work under the supervision of the Master 75
named in Box 5, of the GT/NT indicated in Box 6 and carrying about the number 2 (c) Stevedore Damage 76
of metric tons of deadweight capacity all told on summer loadline stated in Box 3 The Charterers shall be responsible for damage (beyond ordinary wear and 77
7, now in position as stated in Box 8 and expected ready to load under this 4 tear) to any part of the Vessel caused by Stevedores Such damage shall be 78
Charter Party about the date indicated in Box 9, and the party mentioned as the 5 notified as soon as reasonably possible fcy the Master to the Charterers or their 79
Charterers in Box 4 that: 6 agents and to their Stevedores, failing which the Charterers shall not be held 80
The said Vessel shall., as soon as her pnor commitments have been ccmpleted, 7 responsible The Master shall endeavour to obtain the Stevedores' written 81
proceed to the loading port(s) or place(s) stated in Box 10 or so near thereto as 8 acknowledgement of liability. 82
she may safely get and lie always afloat, and there load a full and complete 9 The Charterers are obliged to repair any stevedore damage prior to completion 83
cargo (if shipment of deck cargo agreed same to be at the Charterers' risk and 10 of the voyage, but must repair stevedore damage affecting the Vessel's 84
responsibility) as stated in Box 12, which the Charterers bind themselves to 11 seaworthiness or class before the Vessel sails from the port where such 85
ship, and being so loaded the Vessel shall proceed to the discharging port(s) or 12 damage was caused a found. All additional expenses incurred shall be for the 86
place(s) stated in Box 11 as ordered on signing Bills of Lading, or so near 13 account of the Charterers and any time lost shall be for the account of and shall 87
thereto as she may safety get and lie always afloat, and there deliver the cargo 14 be paid to the Owners by the Charterers at the demurrage rate. 88
2. Owners’ Responsibility Clause 15 6. Laytime 89

The Owners are to be responsible for loss of or damage to the goods or for 16 * (a) Separate laytime for loading and discharging 90
delay in delivery of the goods only in case the loss, damage or delay has been 17 The cargo shall be loaded within the number of running days/hours as 91
caused by personal want of due diligence on the part of the Owners or their 18 indicated in Box 16, weather permitting, Sundays and holidays excepted, 92
Manager to make the Vessel in all respects seaworthy and to secure that she is 19 unless used, in which event time used shall count 93
properly manned, equipped and supplied, or by the personal act or default of 20 The cargo shall be dscharged within the number of running days/hours as 94
the Owners or their Manager. 21 indicated in Box 16, weather permitting, Sundays and holidays excepted, 95
And the Owners are not responsible for loss, damage or delay arising from any 22 unless used, in which event time used shall count 96
other cause whatsoever even from the neglect or default of the Master or crew 23 * (b) Total laytime for foading and discharging 97
or some other person employed by the Owners on board or ashore for whose 24 The cargo shall be loaded and discharged within the number of total running 98
acts they would, but for this Clause, be responsible, or from unseaworthiness of 25 days/hours as indicated in Box 16, weather permitting, Sundays and holidays 99
the Vessel on loading or commencement of the voyage or at any time 26 excepted, unless used, in which event time used shall count. 100
whatsoever 27 (c) Com mencemen t of laytime (loading and discharging) 101
Laytime for loading and discharging shall commence at 13.00 hours, if notice of 102
3. Deviation Clause 28 readiness is given up to and including 12.00 hours, and at 06.00 hours next 103
The Vessel has liberty to call at any port or ports in any order, for any purpose, 29 working day if notice given during office hours after 12.00 hours. Notice of 104
to sail without pilots, to tow and/or assist Vessels in all situations, and also to 30 readiness at loading port to be given to the Shippers named in Box 17 or if not 105
deviate for the purpose of saving life and/or properly. 31 named, to the Charterers or their agents named in Box 18. Notice of readiness 106
at the discharging port to be given to the Receivers or, if not known, to the 107
4. Payment of Freight 32 Charterers or their agents named in Box 19. 108
(a) The freight at the rate stated in Box 13 shall be paid in cash calculated on the 33 If the loading/discharging berth is not available on the Vessel's arrival at or off 109
intaken quantity of cargo. 34 the port of loading/discharging, the Vessel shall be entitled to give notice of 110
(b) Prepaid. If according to Box 13 freight is to be paid on shipment, it shall be 35 readiness within ordinary office hours on arrival there, whether in free pratique 111
deemed earned and non-returnable, Vessel and/or cargo lost or not lost 36 or not, whether customs cleared or not. Laytime or time on demurrage shall 112
Neither the Owners nor their agents shall be required to sign or endorse bills of 37 then count as if she were in berth and in all respects ready for loading/ 113
lading showing freight prepaid unless the freight due to the Owners has 38 discharging provided that the Master warrants that she is in fact ready in all 114
actually been pad. 39 respects. Time used in moving from the place of waiting to the loading/ 115
(c) On delivery. If according to Box 13 freight, or part thereof, is payable at 40 discharging berth shall not count as laytime. 116
destination it shall not be deemed earned until the cargo is thus delivered. 41 If, after inspection, the Vessel is found not to be ready in all respects to load/ 117
Notwithstanding the provisions under (a), if freight or part thereof is payable on 42 discharge time lost after the discovery thereof until the Vessel is again ready to 118
delivery of the cargo the Charterers shall have the option of paying the freight 43 load/discharge shall not count as laytime 119
on delivered weight/quantity provided such option is declared before breaking 44 Time used before commencement of laytime shall count. 120
bulk and the weight/quantity can be ascertained by official weighing machine, 45 * Indicate alternative (a) or (b) as agreed, in Box 16 121
joint draft survey or tally 46
Cash for Vessel's ordinary disbursements at the port of loading to be advanced 47 7. Demurrage 122
by the Charterers, if required, at highest current rate of exchange, subject to 48 Demurrage at the loading and discharging port is payable by the Charterers at 123
two (2) per cent to cover insurance and other expenses5 49 the rate stated in Box 20 in the manner stated in Box 20 per day or pro rata for 124
any part of a day. Demurrage shall fall due day by day and shall be payable 125
5. Loading/Discharging 50 upon receipt of the Owners' invoice 126
(a) Costs/Risks 51 In the event the demurrage is not paid in accordance with the above, the 127
The cargo shall be brought into the holds, loaded, stowed and/or trimmed, 52 Owners shall give the Charterers 96 running hours written notice to rectify the 128
tallied, lashed and/or secured and taken from the holds and discharged by the 53 failure. If the demurrage is not paid at the expiration of this time limit and if the 129
Charterers, free of any risk, liability and expense whatsoever to the Owners 54 vessel is in or at the loading port, the Owners are entitled at any time to 130
The Charterers shall provide and lay all dunnage material as required for the 55 terminate the Charter Party and claim damages for any losses caused thereby. 131
proper stowage and protection of the cargo on board, the Owners allowing the 56
use of all dunnage available on board. The Charterers shall be responsible for 57 8. Lien Clause 132
and pay the cost of removing their dunnage after discharge of the cargo under 58 The Owners shall have a lien on the cargo and on all sub-freights payable in 133
this Charter Party and time to count until dunnage has been removed. 59 respect of the cargo, for freight, deadfreight, demurrage, claims for damages 134
(b) Cargo Handling Gear 60 and for all other amounts due under this Charter Party including costs of 135
Unless the Vessel is gearless or unless it has been agreed between the parties 61 recovering same. 136
that the Vessel's gear shall not be used and stated as such in Box 15, the 62
Owners shall throughout the duration of loadng/discharging give free use of 63 9. Cancelling Clause 137
the Vessel's cargo handling gear and of sufficient motive power to operate all 64 (a) Should the Vessel not be ready to load (whether in berth or not) on the 138
such cargo handling gear All such equipment to be in good working order. 65 cancelling date indicated in Box 21, the Charterers shall have the option of 139
Unless caused by negligence of the stevedores, time lost by breakdown of the 66 cancelling this Charter Party 140
Vessel's cargo handling gear or motive power - pro rata the total number of 67 (b) Should the Owners anticipate that, despite the exercise of due diligence, 141
cranes/winches required at that time for the loading/discharging of cargo 68 the Vessel will not be ready to load by the cancelling date, they shall notify the 142
under this Charter Party - shall not count as laytime or time on demurrage 69 Charterers thereof without delay stating the expected date of the Vessel's 143
On request the Owners shall provide free of charge cranemen/winchmen from 70 readiness to load and asking whether the Charterers will exercise their option 144
the crew to operate the Vessel's cargo handling gear, unless local regulations 71 of cancelling the Charter Party, or agree to a new cancelling date 145
prohibit this, in which latter event shore labourers shall be for the account of the 72 Such option must be declared by the Charterers within 48 running hours after 146
Charterers Cranemen/winchmen shall be under the Charterers' risk and 73 the receipt of the Owners' notice. If the Charterers do not exercise their option 147
responsibility and as stevedores to be deemed as their servants but shall 74 of cancelling, then this Charter Party shall be deemed to be amended such that 148
This computer generated form is printed by authority of BlMCO. Any insertion or deletion to the form must be clearly viable In event of any modification being made to the preprinted text of this document, which is
not clearly visible, the original BlMCO approved document shall apply. BlMCO assume no responsibility for any loss or damage caused as a result of discrepancies between the original BlMCO document and this
document.
186
PART II
Gencon" Charter (As Revised 1922, 1976 and 1994)
the seventh day after the new readiness date stated in the Owners' notification 149 at any time during the voyage to the рол or ports of loading or after her arrival 220
to the Charterers shall be the new cancelling date 150 there, the Master or the Owners may ask the Charterers to declare, that they 221
The provisions of sub-clause (b) of this Clause shall operate only once, and in 151 agree to reckon the laydays as if there were no strike or lock-out. Unless the 222
case of the Vessel’s further delay, the Charterers shall have the option of 152 Charterers have given such declaration in writing (by telegram, if necessary) 223
cancelling the Charier Party as per sub-clause (a) of this Clause 153 within 24 hours, the Owners shall have the option of cancelling this Charter 224
Party. If part cargo has already been loaded, the Owners must proceed with 225
10. Bills of Lading 154 same, (freight payable on loaded quantity only) having liberty to complete with 226
Bills of Lading shall be presented and signed by the Master as per the 155 other cargo on the way for their own account. 227
"Congenbill" Bill of Lading form, Edition 1994, without prejudice to this Charter 156 (b) If there is a strike a lock-out affecting or preventing the actual discharging 228
Party, or by the Owners' agents provided written authority has been given by 157 of the cargo on or after the Vessel's arrival at or off рол of discharge and same 229
Owners to the agents, a copy of which is to be furnished to the Charterers The 158 has not been settled within 48 hours, the Chaherers shall have the option of 230
Charterers shall indemnify the Owners against all consequences or liabilities 159 keeping the Vessel waiting until such strike or lock-out is at an end against 231
that may arise from the signing of bills of lading as presented to the extent that 160 paying half demurrage after expiration of the time provided for discharging 232
the terms or contents of such bills of lading impose or result in the imposition of 161 until the strike or iock-out terminates and thereafter full demurrage shall be 233
more onerous liabilities upon the Owners than those assumed by the Owners 162 payable until the completion of discharging, or of ordering the Vessel to a safe 234
under this Charter Party 163 рол where she can safely discharge without risk of being detained by strike or 235
lock-out. Such orders to be given within 48 hours after the Master or the 236
11. Both-to-Blame Collision Clause 164 Owners have given notice to the Chaherers of the strike or lock-out affecting 237
If the Vessel comes into collision with another vessel as a result of the 165 the discharge. On delivery of the cargo at such роЛ, all conditions of this 238
negligence of the other vessel and any act, neglect or default of the Master, 166 Chaher РаЛу and of the Bill of Lading shall apply and the Vessel shall receive 239
Mariner, Pilot or the servants of the Owners in the navigation or in the 167 the same freight as if she had discharged at the original роЛ of destination, 240
management of the Vessel, the owners of the cargo carried hereunder will 168 except that if the distance to the substituted port exceeds 100 nautical miles, 241
indemnify the Owners against all loss or liability to the other or non-carrying 169 the freight on the cargo delivered at the substituted p a t to be increased in 242
vessel or her owners in so far as such loss or liability represents loss of, or 170 proportion 243
damage to, or any claim whatsoever of the owners of said cargo, paid or 171 (c) Except for the obligations described above, neither the Chaherers n a the 244
payable by the other or non-carrying vessel or her owners to the owners of said 172 Owners shall be responsible for the consequences of any strikes or lock-outs 245
cargo and set-off, recouped or recovered by the other or non-carrying vessel 173 preventing a affecting the actual loading or discharging of the cargo 246
or her owners as part of their claim against the carrying Vessel or the Owners. 174
The foregoing provisions shall also apply where the owners, operators or those 175 17. War Risks (’Voywar 1993") 247
in charge of any vessel or vessels or objects other than, or in addition to, the 176 (1) For the purpose of this Clause, the words 248
colliding vessels or objects are at fault in respect of a collision or contact 177 (a) The "Owners" shall include the shipowners, bareboat charterers, 249
disponent owners, managers or other operatas who are charged with the 250
12. General Average and New Jason Clause 178 management of the Vessel, and the Master; and 251
General Average shall be adjusted in London unless otherwise agreed in Box 179 (b) "War Risks" shall include any war (whether actual or threatened), act of 252
22 according to York-Antwerp Rules 1994 and any subsequent modification 180 war, civil war, hostilities, revolution, rebellion, civil commotion, wahike 253
thereof. Proprietors of cargo to pay the cargo's share in the general expenses 181 operations, the laying of mines (whether actual a reported), acts of piracy, 254
even if same have been necessitated through neglect or default of the Owners’ 182 acts of terrorists, acts of hostility or malicious damage, blockades 255
servants (see Clause 2). 183 (whether imposed against all Vessels a imposed selectively against 256
If General Average is to be adjusted in accordance with the law and practice of 184 Vessels of certain flags or ownership, or against certain cargoes or crews 257
the United States of America, the following Clause shall apply. "In the event of 185 or otherwise howsoever), by any person, body, terrorist or political group, 258
accident, danger, damage or disaster before or after the commencement of the 186 or the Government of any state whatsoever, which, in the reasonable 259
voyage, resulting from any cause whatsoever, whether due to negligence or 187 judgement of the Master and/ а the Owners, may be dangerous a are 260
not, for which, or for the consequence of which, the Owners are not 188 likely to be a to become dangerous to the Vessel, her cargo, crew or other 261
responsible, by statute, contract or otherwise, the cargo shippers, consignees 189 persons on board the Vessel 262
or the owners of the cargo shall contribute with the Owners in General Average 190 (2) If at any time before the Vessel commences loadng, П appears that, in the 263
to the payment of any sacrifices, losses or expenses of a General Average 191 reasonable judgement of the Master and/or the Owners, реЛ атапсе of 264
nature that may be made or incurred and shall pay salvage and special charges 192 the Contract of Carnage, a any рал of it. may expose, or is likely to expose, 265
incurred in respect of the cargo. If a salving vessel is owned or operated by the 193 the Vessel, her cargo, crew or other persons on board the Vessel to War 266
Owners, salvage shall be paid for as fully as if the said salving vessel or vessels 194 Risks, the Owners may give notice to the Charterers cancelling this 267
belonged to strangers. Such deposit as the Owners, or their agents, may deem 195 Contract of Carriage, or may refuse to perform such pan of it as may 268
sufficient to cover the estimated contribution of the goods and any salvage and 196 expose, or may be likely to expose, the Vessel, h a cargo, crew or other 269
special charges thereon shall, if required, be made by the cargo, shippers, 197 persons on board the Vessel to War Risks; provided always that if this 270
consignees or owners of the goods to the Owners before delivery ’ 198 Contract of Carriage provides that loading or discharging is to take place 271
within a range of pods, and at the роЛ a pons nominated by the Chaneras 272
13. Taxes and Dues Clause 199 the Vessel, h a cargo, crew, or other persons onboard the Vessel may be 273
(a) On Vessel -The Owners shall pay all dues, charges and taxes customarily 200 exposed, a may be likely to be exposed, to War Risks, the O wnas shall 274
levied on the Vessel, howsoever the amount thereof may be assessed. 201 first require the Charterers to nominate any other safe роЛ which lies 275
(b) On cargo -The Charterers shall pay all dues, charges, duties and taxes 202 within the range for loading or discharging, and may only cancel this 276
customarily levied on the cargo, howsoever the amount thereof may be 203 Contract of Carriage if the C h a ria a s shall not have nominated such safe 277
assessed. 204 p a t or pohs within 48 hours of receipt of notice of such requirement. 278
(c) On freight -Unless otherwise agreed in Box 23, taxes levied on the freight 205 (3) The Owners shall not be required to continue to load cargo f a any voyage, 279
shall be for the Charterers' account. 206 or to sign Bills of Lading f a any роЛ or place, a to proceed or continue on 280
any voyage, or on any part thereof, or to proceed through any canal or 281
14. Agency 207 waterway, or to proceed to or remain at any роЛ a place whatsoeva, 282
In every case the Owners shall appoint their own Agent both at the port of 208 where it appears, eitha after the loading of the cargo commences, or at 283
loading and the port of discharge. 209 any stage of the voyage thereafta before the discharge of the cargo is 284
completed, that, in the reasonable judgement of the Master and/ а the 285
15. Brokerage 210 Ownas, the Vessel, her cargo (or any раЛ thereof), crew a a h a persons 286
A brokerage commission at the rate stated in Box 24 on the freight, dead-freight 211 on board the Vessel ( a any one or more of them) may be, or are likely to be, 287
and demurrage earned is due to the party mentioned in Box 24 212 exposed to War Risks. If it should so appear, the Ownas may by notice 288
In case of non-execution 1/3 of the brokerage on the estimated amount of 213 request the Charterers to nominate a safe рол for the discharge of the 289
freight to be paid by the party responsible for such non-execution to the 214 cargo or any pah thereof, and if within 48 hours of the receipt of such 290
Brokers as indemnity for the latter's expenses and work. In case of more 215 naice, the Charterers shall n a have nominated such а роЛ, the O wnas 291
voyages the amount of indemnity to be agreed. 216 may discharge the cargo at any safe роЛ of their chdce (inducing the p a t 292
of loading) in complete fulfilment of the Contract of Carnage. The O wnas 293
16. General Strike Clause 217 shall be entitled to recover from the Charterers the extra expenses of such 294
(a) If there is a strike or lock-out affecting or preventing the actual loading of the 218 discharge and, if the discharge takes place at any port dher than the 295
cargo, or any part of it, when the Vessel is ready to proceed from her last port or 219 loading pot, to receive the full freight as though the cargo had been 296
This computer generated form is printed by authority of BIMCO Any insertion or deletion to the form must be clearly visible. In event of any modification being made to the preprinted text of this document, which is
not clearly visible, the original BIMCO approved document shall apply. BIMCO assume no responsibility for any loss or damage caused as a result of discrepancies between the original BIMCO document and this
document
187
PART II
'Gencon" Charter (As Revised 1922, 1976 and 1994)
carried to the discharging port and if the extra distance exceeds 100 miles, 297 o f destination 373
to additional freight which shall be the same percentage of the freight 298 (b) If during discharging the Master for fear of the Vessel being frozen in deems 374
contracted for as the percentage which the extra distance represents to 299 it advisable to leave, he has liberty to do so with what cargo he has on board and 375
the distance of the normal and customary route, the Owners having a lien 300 to proceed to the nearest accessible p a t where she can safety discharge 376
on the cargo for such expenses and freight, 301 (c) On delivery of the cargo at such port, all condtions o f the Bill of la cing shall 377
(4) If at any stage o f the voyage after the loading of the cargo commences, it 302 apply and Ihe Vessel shall receive the same freight as if she had discharged at 378
appears that, in the reasonable judgement of the Master ancVor the 303 the aiginal port of destination, except that if the distance of the substituted port 379
Owners, the Vessel, her cargo, crew or other persons on board the Vessel 304 exceeds 100 nautical miles, the freight on the cargo delivered at the substituted 380
may be, or are likely to be, exposed to War Risks on any part of the route 305 port lo be increased in proportion, 381
(including any canal or waterway) which is normally and customarily used 306
in a voyage o f the nature contracted for, and there is another longer route 307 19. Law and Arbitration 382
to the dscharging port, the Owners shall give notice to the Charterers that 308 * (a) This Charter Party shall begoverned by and construed in accordance with 383
this route will be taken. In this event the Owners shall be entitled, if the total 309 English law and any dispute arising out of this Charter Party shall be referred to 384
extra distance exceeds 100 miles, to additional freight which shall be the 310 arbitration in London in accordance with the Arbitration Acts 1950 and 1979 or 385
same percentage of the freight contracted for as the percentage which the 311 any statutory modification or re-enactment thereof for the time being in fa c e 386
extra distance represents to the dstance of the normal and customary 312 Unless the parties agree ip on a sote arbitrator, one arbitrator shall be 387
route. 313 appointed by each party and the arbitrators so appointed shall appoint a third 388
(5) The Vessel shall have liberty:- 314 arbitrator, the decision of the three-man tribunal thus constituted or any two o f 389
(a) to comply with all orders, drections, recommendations or advice as to 315 them, shall be final. On Ihe receipt by one party of ihe nomination in writing of 390
departure, arrival, routes, sailing In convoy, ports of call, stoppages, 316 the other party's arbitrator, that party shall appoint their arbitrator within 391
destinations, discharge of cargo, delivery or in any way whatsoever which 317 fourteen days, failing which the decision o f the single arbitrator appointed shall 392
are given by the Government o f the Nation under whose flag the Vessel 318 be final 393
sails, or other Government to whose laws the Owners are subiect, or any 319 F a dsputes where the total amount claimed by either party does not exceed 394
other Government which so requires, or any body or group acting with the 320 the amount stated in Box 25” the arbitration shall be conducted in accadance 395
pcwer to compel compliance with their orders or directions; 321 with the Small Claims Procedure of the London Maritime Arbitratas 396
(b) to comply with the orders, directions or recommendations of any war 322 Association. 397
risks underwriters who have the authority to give the same under Ihe terms 323 " (b) This Charter Party shall be governed by and construed in accordance with 398
of the war risks insurance; 324 Title 9 of the United States Code and the Maritime Law of the United States and 399
(c) to comply with the terms of any resolution of the Security Council of the 325 should any dispute arise out of this Charter Party, the matter in dispute shall be 400
United Nations, any directn/es of the European Community, the effective 326 referred to three persons at New Y a k, one lo be appointed by each of the 401
orders of any other Supranational body which has the right to issue and 327 parties hereto, and the third by the two so chosen; their decision a that of any 402
give the same, and with national laws aimed at enforcing the same to which 328 two of them shall be final, and fa purpose of enfacing any award, this 403
the Owners are subject, and to obey the orders and drections o f those who 329 agreement may be made a rule of Ihe Court. The proceedings shall be 404
are charged with their enforcement; 330 conducted in accordance with the rules of the Society of Maritime Arbitrators, 405
(d) to dscharge at any other port any cargo or part thereof which may 331 Inc.. 406
render the Vessel liable to confiscation as a contraband carrier; 332 F a dsputes where the total amount claimed by either parly does not exceed 407
(e) to call at any other port to change the crew or any part thereof or other 333 the amount stated in Box 25” the arbitration shall be conducted in accordance 408
persons on board the Vessel when there is reason to believe that they may 334 with the Shortened Arbitration Procedure of the Society o( Maritime Arbitrators, 409
be subject to internment, imprisonment or other sanctions; 335 Inc, 410
(f) where cargo has not been loaded or has been discharged by the 336 * (c) Any dispute arising out of this Charter Party shall be referred to arbitration at 411
Owners under any previsions of this Clause, to load other cargo for the 337 the place indicated in Box 25, subject to the procedures applicable there. The 412
Owners’ own benefit and carry it to any other port or ports whatsoever, 338 laws of the place indicated in Box 25 shall govern this Charter Party, 413
whether backwards or forwards or in a contrary direction to the ordinary or 339 (d) If Box 25 in Part 1 is not filled in, sub-clause (a) of this Clause shall apply, 414
customary route, 340 * (a), (b) and (c) are alternatives; indicate alternative agreed in Box 25 415
(6) If in compliance with any of the provisions of sub-clauses (2) to (5) of this 341 ” Where no figure is supplied in Box 25 in Pad 1, this provision only shall be voidbu(416
Clause anything is done or not done, such shall not be deemed to be a 342 the other provisions o ftN s Clause shall have fu ll force and remain in effect. 417
deviation, but shall be considered as due fulfilment of the Contract of 343
Carriage, 344
8. General Ice Clause 345

Port o f loading 346
(a) In the event of the loadng port being inaccessible by reason of ice when the 347
Vessel is ready to proceed from her last port or at any time during the voyage or 348
on the Vessel's arrival or in case frost sets in after Ihe Vessel's arrival, the 349
Master for fear of being frozen in is at liberty to leave without cargo, and this 350
Charter Party shall be null and void, 351
(b) If during loadng the Master, for fear of Ihe Vessel being frozen in, deems it 352
advisable lo leave, he has liberty to do so with what cargo he has on board and 353
to proceed to any other port or ports with option of completing cargo for the 354
Owners' benefit for any port or ports including port of discharge. Any part Э55
cargo thus loaded under this Charter Party to be forwarded to destination at the 356
Vessel's expense but against payment of freight, provided that no extra 357
expenses be thereby caused to the Charterers, freight being paid on quantity 358
delivered (in proportion if lumpsum), all other conditions as per INs Charter 359
Party 360
(c) In case of more than one loading port, and if one or more of the ports are 361
closed by ice, the Master or the Owners lo be at liberty either lo load the part 362
cargo at the open port and fill up elsewhere for their own account as under 363
section (b) or to declare Ihe Charter Party null and void unless Ihe Charterers 364
agree to load full cargo at the open port. 365
Pod o f discharge 366

(a) Should ice prevent the Vessel from reaching port of discharge the 367
Charterers shall have Ihe option of keeping the Vessel waiting until the re 368
opening of navigation and paying demurrage or of ordenng the Vessel to a safe 369
and immediately accessible port where she can safely discharge without risk of 370
detention by ice. Such orders to be given within 48 hours alter the Master or the 371
Owners have given nolice to the Charterers of the impossibility of reaching port 372
This computer generated form is printed by authority of BIMCO. Any insertion or deletion to the form must be clearly visible In event of any modification being made lo the preprinted text of this document which is
not clearly visible, the original BIMCO approved document shall apply BIMCO assume no responsibility for any loss or damage caused as a result of discrepancies between the original BIMCO document and this
document.
ANNEX 6
Shipper
BILL OF LADING b/l no
x/xxx
"Name of the company"
TO BE USED WITH CHARTER-PARTIES
Reference No.
Consignee
"Name ofthe company or bank"
Notify address
"Name ofthe company or bank”
Name of Vessel Port of loading

MV "XXXXX" MARIUPOL, UKRAINE
Port of discharge
BARI, ITALY____________________________________________________________
Shipper's description of goods Quantity
PRIME QUALITY BASIC PIG IRON - PL 1, PL2 METRIC TONS
CLEAN ON BOARD
(of which NONE on deck at Shipper's risk; the Carrier not

bein2j^sgonsjbj£ifoM ^s-or_danTaa£jT0ôever^risinai____________
Freight PAYABLE as per CHARTER-PARTY dated SHIPPED at the Port of Loading in apparent good order
FREIGHT ADVANCE Received on account of and condition on board the Vessel for carriage to the Port of
freight: Discharge or so near thereto as she may safely get the goods
Time used for loading.............. days..............hours. specified above.
Weight, measure, quantity, condition, contents and value
unknown. IN WITNESS whereof the Master or Agent of the said
Vessel has signed the number of Bills of lading indicated below
all of this tenor and date, any one of which being accomplished
the others shall be void.
Freight payable at Place and date of issue
DESTINATION MARIUPOL, 2005/01/12

Number of original Bs/L Signature
3/3 M ASTER MV "XXXXXX"
CAPT.
189
ANNEX 7
BILL OF LADING
TO BE USED WITH CHARTER-PARTIES
CODE NAME: "CONGENBILL"
EDITION: 1994
ADOPTED BY
THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)
Conditions of Carriage
(1) Al! terms and conditions, liberties and exceptions of the Charter Party, dated as overleaf, including the Law and Arbitration
Clause, are herewit:
Incorporated.
(2) General Paramaunt Clause.
(a) The Hague Rules contained in the International Convention for the Unification of certain rules relating to Bills of Lading,
dated Brussels the 25 th August 1924 as enacted in the country of shipment, shall apply to this Bill of Lading. When no such
enactment is in force in the country о shipment, the corresponding legislation of the country of destination shall apply, but in
respect of shipments to which no such enactments are compulsorily applicable, the terms of the said Convention shall apply.
b) Trades where Hague-Visby Rules apply.
In trades where the International Brussels Convention 1924 as amended by the Protocol signed at Brussels on February 23rd
1968-the Hagu Visby Rules - apply compulsorily, the provisions of the respective legislation shall apply to this Bill of
Lading.
(c) The carrier shall in no case be responsible for loss of or damage to the cargo, how1soever arising prior to loading into and after
discharge fron the Vessel or while the cargo is in the charge of another Carrier, nor in respect of deck cargo or live animals.
(3) General Average.
General Average shall be adjusted, stated and settled according to York-Antverp Rules 1994, or any subsequent modification
thereof, in London unless another place is agreed in the Charter Party.
Cargo's contribution to General Average shall be paid to the Carrier even when such average is the result of a fault neglect or error
of the Master, Pilot or Crew. The Charterers, Shippers and Consignees expressly renounce the Belgian Commercial Code, Part II,
Art. 148.
(4) New' Jason Clause.
In the event of accident, danger, damage or disaster before or after the commencement of the voyage, resulting from any cause
whatsoever, whether due to negligence or not, for which, or for the consequence of which, the Carrier is not responsible, by statute,
contract or otherwise, the cargo, shippers, consignees or the owners of the cargo 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 cargo. If a salving vessel is owned or operated by the Carrier, salvage
shall be paid for as fully as if the said salving vessel or vessels belonged to strangers Such deposit as the Carrier, or his agents, may
deem sufficient to cover the estimated contribution of the goods and any salvage and special charges thereon shall, if required, be
made by the cargo, shippers, consignees or owners of the goods to the Carrier before delivery'.
(j, Joth-to-Blame Collision Clause.
If the Vessel comes into collision with another vessel as a result of the negligence of the other vessel and any act, neglect or default
of the Master,
Vlariner, Pilot or the servants of the Carrier in the navigation or in the management of the Vessel, the owners of the cargo carried
hereunder will
indemnify the Carrier against all loss or liability to the other or non-earring vessel or her owners in so far as such loss or liability
represents loss of,
or damage to, or any claim whatsoever of the owners of said cargo, paid or payable by the other or non-earring vessel or her owners
to the owners
of said cargo and set-off, recouped or recovered by the other or non-carrying vessel or her owners as part of their claim against the
carrying Vessel
or the Carrier.
The foregoing provisions shall also apply where the owners, operators or those in charge of any vessel or vessels or objects other
than, or in
addition to, the colliding vessels or objects are at fault in respect of a collision or contact.
For particulars of cargo,

freight destination, etc., see
overleaf.
190
ANNEX 8
CODE NAME: "CONGENBILL" EDITION 1994 Page
Sluppcr
BILL OF LADING 2 B/LNo 1
"KRUTRADE A.G." TO BE USED WITH CHARTER-
ON BEHALF OF "KRUTRADE HOLDINGS CORF." PARTIES
Consignee
KAZANCIOGLU GIDA SAN. VE KOMUR
ISLETMELERI TIC. LTD. STI
copy |
Notify address non negotiable!
K A ZA N aO G LU GIDA SAN VE KOMUR
ISLETMELERI TIC. LTD. STI
Vessel Port of loading

PHOBOS TUAPSE. RUSSIA
Port of discharge
Shipper's description of Gross weight
eoods RUSSIAN SIZED IN BULK 4,984.780 MT

TRABZON. GIRESUN. TURKEY
FREIGHT PAYABLE AS PER C/P

CLEAN ON BOARD
(of which on deck at Shipper's risk; the Carrier not

being responsible for loss or damage howsoever arising)
Freight payable as per SHIPPED at the Port of Loading in apparent good
CHARTER-PARTY order and
dated condition on board tire Vessel for carriage
to the Port of Discharge or so near thereto as she may
FREIGHT ADVANCE. safely get the goods specified above.
Received on account of
freight: un-knovvn.
IN WITNESS whereof the Master or Agent of the said
Vessel lias
signed the number of Bills of Lading indicated below all
days hours. of this
tenor and date, any one of which being accomplished the
Time used for loading others
shall be void.
Freight Place and date of
payable at issue TUAPSE, JANUARY 26. 2006
RUSSIA
Number of original Signature
Bs/L
3/ТНЕЕЕ/
191
ANNEX 9
IMPORTANT: This guarantee will only be accepted provided no additions, deletions or
amendments are made to the wording by the Underwriters
AVERAGE GUARANTEE
(For Signature by Underwriters of Cargo to avoid collection of Deposits
in those cases in which it is practicable to do so.)
Vessel m.v. "NORASIA TAURUS"
Voyage From Far East to Mediterranean and Black Sea norts in June/Julv 2005
Casualty' Fire in stow of deck cargo off Daimetta on 16* July 2005
In consideration of the delivery in due course to the Consignees of the Merchandise specified below,
without collection of a deposit on account of Average, we, the undersigned Underwriters, hereby guarantee to the
Shipowners on account of those concerned the payment of any contribution to General Average and/or Salvage
and/or Charges which may hereafter be ascertained to be due in respect of the said Merchandise.
We further agree to make a prompt payment on account if required, as soon as such payment may be
certified by the Average Adjusters, Stichling Hahn Hilbrich Ltd., London and to furnish to the Average Adjusters
at their request all information which is available to us relative to the value of the said Merchandise.
We also agree that this Average Guarantee shall be governed by and construed in accordance w'ith English
law and all disputes arising hereunder shall be subject to the exclusive jurisdiction of the English High Court.
NON SEPARATION AGREEMENT:

It is agreed that in the event of the vessel’s cargo or part thereof being forwarded to original destination by other
vessel, vessels or conveyances, rights and liabilities in general average shall not be affected by such forwarding, it
being the intention to place the parties concerned as nearly as possible in the same position in this respect as they
would have been in the absence of such forwarding and with the adventure continuing by the original vessel for so
long as is justifiable under the law applicable or under the Contract of Affreightment.
The basis of contribution to general average of the property involved shall be the values on delivery' at original
destination unless sold or otherwise disposed of short of the destination; but where none of her cargo is carried
forward in the vessel she shall contribute on the basis of her actual value on the date she completes discharge of her
cargo.
ВU Port of Shipment Container No(s). Description of cargo and weight C.I.F. Value
No(s). Destination Marks &No(s)
Folio
No(s).
Imuortant In case of damage to/'loss of

cargo submit customary claim Please attach copy
documentation, inch Subrogation Letter of commercial
invoice
Date................. Signature and Stamp of Insurers
Full name..........................................................
Full address..............................................................................
Tel/Fax No:.........................................................Reference No:.

- Collecting Agents -Stichling Hahn Hilbrich
(Average Adjusters) Lid.
Meliza Court, 6th Floor, 229, Arch. Makarios III Ave, P.O. Box 54117, 3721 Limassol, Cyprus
Tel No: +357-2558 8988, Fax No: +357-2558 3254 E-Mail: admin@shh.com.cv
Website: www.shh-adjusters.com Associated
Offices in London and Hamburg
192
ANNEX 10
AVERAGE BOND
To Celine Navigation Company Ltd.. St. John's, Antigua
Vessel m.v. "NORASIA TAURUS"
Voyage and date From Far Bast to Mediterranean and Black Sea ports in June/Julv 2005
Casualty________ Fire in stow of deck cargo offDamietta on 16й July 2005_______________
Port of shipment
_______ Port of destination___________________________________________________
Bill of lading or waybill nnmbert'sl
Container No(s). Description of Cargo and Weight CIF value (please attach copy
Marks &Nos. of commeicial invoice)
In consideration of the deliver)' to us or to our order, on payment of the freight due, of the goods noted above we agree to
pay the proper proportion of any salvage and/or general average and/or special charges which may hereafter be ascertained to be
due from the goods or the shippers or owners thereof under an adjustment prepared in accordance with the provisions of the
contract of affreightment governing the carriage of the goods or, failing any such provision, in accordance with the law and
practice ofthe place where the common maritime adventure ended and which is payable in respect of the goods by the shippers or
owners thereof.
In case the goods are oncarried by another vessel and/ or conveyances the following Non-Separation-Agreement shall apply:
It is agreed that in the event of vessel's cargo or part thereof being forwarded to original destination by other vessel, vessels
or conveyances, rights and liabilities in general average shall not be affected by such forwarding, it being the intention to
place the parties concerned as nearly as possible in the same position in this respect as they would have been in the absence
of such forwarding and with the adventure continuing by the original vessel for so long as justifiable under the law-
applicable or under the Contract of Affreightment.
The basis of contribution to general average of the property involved shall be the values on delivery at original destination
unless sold or otherwise disposed of short of that destination; but where none of her cargo is carried forward inthe vessel she
shall contribute on the basis of her actual value on the date she completes discharge of her cargo.
We also agree to:
CO furnish particulars of the value of the goods, supported by a copy of the commercial invoice rendered to us or, if
there is no such invoice, details of the shipped value (ii) make a payment on account of such sum as is
duly certified by the average adjusters to be due from the goods
and which is payable in respect of the goods by the shippers or owners thereof and (iii) that this Average
Bond shall be governed by and construed in accordance with English law and all disputes
arising hereunder shall be subject to the exclusive jurisdiction of the English High Court.
Date......................Signature of Shippers or Receivers of goods.

Full name...........................................................................................
Full address.......................................................................................
Tel/Fax No:............................................................Contact Person:.
- Collecting Agents -Stichling Hahn Hilbrich
(Average Adjusters) Ltd.
Meliza Court, 6th Floor, 229, Arch. Makarios Ш Ave., P.O. Box 54117,3721 Limassol, Cyprus
Tel No: +357-2558 8988, Fax No: +357-2558 3254 E-Mail: admm@shh.com.cy
Website: www.shh-adjusters.com Associated
Offices in London and Hamburg
193
ANNEX 11
DISBURSEMENT ACCOUNT No.
Owner/ Chartered Owners' Disponent Owners
Port: ODESSA Date: Date of b. 01.05.02 Vessel: HATICEC

Arrived from: Date/Hour 01.05.02 LOA: 88,67 D.M. : 7,00
Sailed for Date/Hoar 03.05.02 Beam: 14,00 V.: 8690
.Cargo loaded: general Cargo discharged : IN: 100 OUT: 100
No. PORT CHARGES USD DEBIT CREDIT
1 Tonnage dues 1634
2 Canal dues 0 192 if use
3 Pilotage 178
4 Towage IN OUT 0 904 if use
5 Mooring X Unmooring 108
в Light dues 253
7 Sanitary dues 122
8 Berth dues 192
9 Shore radar 164
10 Harbor Master's fees 91
11 Air pollution fees 58
12 Quarantine expenses 3
13 Bank charges 50
14 Survey and sealing of all valves 90
15 Administration dues 122
16 Port information service 34
3099 Total
AGENCY CHARGE
17 Agency fees 1314'
18 Petties, Blanks 0
19 Supervisions 10B
20 Clearance 0
21 Telegrams, telex, post,phone 50
22 Car 100
1572 Total
SHIP CHARGES
23 Fresh water supply 0
24 Watchman 108
108 Total
TOTAL BALANCE:- 4779
SAY:
MASTER AGENT
194
ANNEX 12
S A R D E L IS SHIPPING AGENCY
SPELIAJDOU Bystreet TeJ: (0030)26820/22228-27311-27312
481 OO Prevesr-a Greece Fax: (0030) 26820 26552
Tlx: 322246/322177
£-malh GSAGENCY(®OTENET.GR
STATEMENT OF FACTS NO. 15/07
M/V: SELEN Flag: MONGOLIA Master: POKALCHUK OI.EKSANDR

Arrived from: CARTAGENA-SPAIN Berthed at: PREVEZA-GREECE
B/L Cargo/ Quantities : AS PER B/L No t CARGO OF
MONOCALCIUM PHOSPHATE IN 807 BB, MT 966,807/MONOCALCIUM PHOSPHATE IN 628 PLTS, MT 799,44/
DICALCIUM PHOSPHATE IN 275 BB, MT 322, 535/ DICALCIUM PHOSPHATE IN 91 PLTS, MT 115,843
As per stowage plan :
Arrival Draught f m a Sailing Draught f m a
Bunkers on arrival:___________________________________Bunkers on sailing: _________ __________________
Log I t e m s Day Date Hour Remarks
Vessel arrived pilot station MON 29.01.07 11:30 PREVEZA ROAD
Pilot boarded MON 29.01.07 12:10
Xi'o / boat assistance on arrival MON 29.01.07 13:00 T/B “PANAGIA TINOU”
A.thed alongside MON 29.01.07 13:00
Free pratique MOiN 29.01.07 13:15
Notice of readiness handed MON 29.01.07 13:15 TIME TO COUNT AS PER C/P
Notice of readiness accepted
Discharging commenced TUE 30.01.07 08:15
Discharging completed WED 31.01.07 14:00
Documents on board WED 31.01.07 14:30
Tug / boat Assistance on sailing WED 31.01.07 14:45 T/B “PANAGIA TINOU”
Sailed for: H E R A K L IO N WED 31.01.07 14:45
Day Date Worked Ga MCP DCP Remarks

Fm To ngs BB PLTS BB PLTS
MON 29.01.07 — — -- — •--- — — No work as no gangs and shore means
available
TUE 30.01.07 0815 1800 2 235 182 49 10
WED 31.01.07 0800 1400 2 34 113 0 20
w
TTL DISCHARC ED BB/PLTS 269 295 49 30
1
TWO PRIVATE MOBILE CRANES'
EXPENSES FOR RECEIVERS ACCOUNT
GENERAL REMARK:
DUE TO BAD STOWAGE OF PALLETIZED CARGO, DISCHARGE DELAYS.
15 BIG BAGS MCP DISCHARGED TORN WITH MOST CARGO SPILLED INTO
3 PALLETS MCP & 2 PALLETS DCP DISCHARGED BROKEN (BAGS IN LOOSE
MOST OF THEM EMPTY)
I's / k c h c / - J f f /fA r o ft* / L / / f& ra o

P R E V E g A , 3 1 /( U /2 0 fffA y
SHIPPERS / RECEIVERS
* IN':
195
ANNEX 13
то
THE MASTER OF PREVEZA, 31.01.2007
M/V SELEN
AT PREVEZA PORT
LETTER OF P R O T E S T
RE: M/V SELEN CARGO OF

MONOCALCIUM PHOSPHATE IN BIG BAGS 807, IN PALLETS 628
DICALCIUM PHOSPHATE IN BIG BAGS 275, IN PALLETS 91
CARTAGENA SPAIN / PREVEZA GREECE
As receivers upon completion of Preveza parcel cargo, we strongly protest for

your negligent and careless stowage of cargo into hold, and inadequate
dunnage between the layers, as you ought to have placed for cargo security.
As a result, 15 big bags MCP discharged torn with most cargo spilled into the
hold, almost empty.
3 pallets MCP & 2 pallets DCP discharged broken in loose condition with most
bags empty.
As a consequence, due to bad stowage discharge delays.
For all above facts and without prejudice to our rights which we all reserve, we
hereby hold Master/Vessel/Ship Owners fully responsible for any loss/ damage/
expenses/ delays will occur due to the above mentioned facts.
196
ANNEX 14
7 A g « t|
ONM A agency TIM E S H E E T o f Voy: PO NTA DA M AD EIR A -
IL L IC H E V S K
3 Perl
HANHAI, Panam a
ILLICHEVSK
4 ОмгшпДМаропаг* Owner* 5. Vaiaat barthad
PINGHAI SHIPPING INC. 03.0B.0571B.18
S. lo a tin g commenced 7. LBating compWad
8 Cargo 9. D is c fw y ig commenced Ю. Owchargsig comptotod
0 3.O B .O S719.O O D8.0a.08/19.00

S IN T E R F E E D C A R A JA S (S F C J )
11 Draft «unray cOcnptotod 12. V a tsrtM itod
05.08.08721:00 05.08.05/22:40
1Э. CONTRACT NUMBER 14. Wortdno houraMta«l h M «#(ha pod
0 1 2 0 /1 D A T E D J U N E 2 3 /2 0 0 5
13 0*» od la frn g le.OuRum wtoghtftjuartfty
44.800,000 ИТ 44.592.00 MT
17. Va»*ei arrived on road» 03.06.05 14.00 i4 Tim# (o coux mom 0 3 .0 5 .0 5 /1 4 :0 0
Notica of raadlnaaa tandarad03.0B.0B at 14.00 К

19. Ново» МПМГМ 20. Rata of demurrage 2V Rato of diapalch
30.0S 05/04:00 USD 23.000 POPP HD

U. Hm ti tide avabbto 23. Tim * to stop courting 0 5 . 0 8 . 0 5 / 2 2 . 4 0
24. Laytime айстмвс! for looting 2S la y tm . for d iK fi
7A J2
tOOOMTSSHMC
l a y t im e c o m p u t a t io n
Data Day Time worked Laytime used On demurrage Remark*
From • To days hours m int days hours mine
03.01.OS WED 14:00:00 74.-00:00 10
04.01.08 thu 0:00:00 24:00:00 1
05.0S.05 frl 0:00:00 22.40 22 40
2,0000 1,00 40
General remark*
DAYS
Laytime showed 7.4320
Laytime used 2,3410
Laytime on despatch S.071
Despatch $23 000 : 2 « *11 800,00 X 5,071 - 318.50
pinanda* Odessa, 06*08.05
197
ANNEX 15
AA Always Afloat Всегда на плаву

ABT About Около, приблизительно
ADV Advise Совет, сообщение
A/E Accept/Except Принимается кроме
AF Advanced freight Аванс фрахта
A /0 And/or И/или
APPR Approval Одобрение
ARRL Arrival Прибытие
ASA As soon as Как только
A/S After Sight После просмотра
ASAP As Soon As Possible Насколько можно быстро
A/V According to Value (Ad Valorem) В соответствии с ценой, (Эд
Валорем)
AVG Average В среднем
До открытия трюмов (условия
BBB Before Breaking Bulk
оплаты фрахта)
BDS, В DAYS Banking Days Банковский день
BE, BENDS Both Ends (Loads & Discharge ports) На обоих концах (в порту
погрузки и выгрузки)
B.O. Buyer's Option В опционе покупателя
BOB Bunker On Board Бункер на борту
BOFFER Best Offer Наилучшее предложение
CC Cargo Capacity Грузоподъёмность,
грузовместимость
CHABE Charter's Agents Both Ends Агент фрахтователя на обоих
концах (в обоих портах)
CHOPT Charter's Option Опцион фрахтователя
CHRTS Charterers Фрахтователи
CNFM Confirm Подтверждение
COB Closing Of Business Конец рабочего времени дня
CONS Consumption Расход
CONSG Consignment Предписание, письменное
соглашение
COP Custom Of the Port Обычай порта
CPD Charterer Pays Dues Фрахтователь платит сборы
CQD Customary Quick Dispatch Обычная быстрая обработка
CR Current Rate Текущая ставка
Days All Purposes (Total days for Дни для всего (всего дней для
DAPS
loading & discharging) погрузки и выгрузки)
DEM Demurrage Простой судна сверх сталии
Премия за досрочную
DISP Dispatch обработку
Простой судна сверх контр
DET Detention сталии
198
DETS Details Детали
Диспач - половина демереджа за
Dispatch Half Demurrage on All Time
DHDATSBE все спасённое время в обоих
Saved Both Ends
портах
DHDWTSBE Dispatch Half Demurrage on Working Диспач - половина демереджа за
Time Saved Both Ends спасённое рабочее время в
обоих портах
DISPORT Discharging Port Порт выгрузки
DO Diesel Oil Дизельное топливо
ETA Estimated Time of Arrival Ожидаемое время прибытия
ETC Estimated Time of Completion Ожидаемое время окончания
ETD Estimated Time of Departure Ожидаемое время отхода
ETR Expected Time of Readiness Ожидаемое время готовности
ETS Estimated Time of Sailing Ожидаемое время отплытия
EXINS Extra Insurance Дополнительная страховка
FDESP, FD Free Dispatch Без диспача
FDIS Free Discharge Свободен от платы за выгрузку
FHEX Fridays/Holidays Excluded Пятница, праздники
FHINC Fridays/Holidays Included Пятница, праздники
включаются
FILO Free In/Liner Out. Sea freight with ФИЛО. Свободен от платы за
which the shipper pays load costs and пофузку, выгрузка за счёт пере
the Carrier pays for discharge costs возчика. Формула расчёта
фрахта
FIO Free In/Out. Freight booked FIO ФИО Перевозчик свободен от
includes the sea freight, but no оплаты погрузки и выгрузки.
loading/discharging costs, i.e. the Формула расчёта фрахта
Charterers pays for cost of loading/
discharging cargo
FIOS Free In/Out Stowed. As per FIO, but ФИОС. Перевозчик свободен от
includes stowage costs платы за погрузку, выгрузку и
укладку груза в трюмах.
Формула расчёта фрахта
FIOST Free In/Out and Trimmed. Owners free ФИОСТ. Перевозчик свободен
from cost of loading/discharging cargo, от оплаты погрузки, выгрузки,
including stowage and trimming штивки и укладки груза
Формула расчёта фрахта
FIOT Free In/Out and Trimmed. As per ФИОТ. Перевозчик свободен от
FIOS but includes trimming, e.g. погрузки, выгрузки, штивки (за
leveling of bulk cargoes. FIOS полнения пустот,
includes sea freights, but excludes выравнивания) навалочного
loading/ discharging and stowage costs груза. Формула расчёта фрахта
FO Fuel Oil Жидкое топливо
FOLL Following Следующее
FRT Freight Rate Ставка фрахта
FYG For Your Guidance Для вашего сведения
199
FYI For Your Information Для вашей информации
GA General Average Общая авария. Все участники
перевозки участвуют в
покрытии убытков
GO Gas Oil Газойль (легкое дизельное
топливо)
GRD Geared Судно с грузовыми
устройствами
CRT Gross Restricted Tonnage Брутто Регистровый тоннаж
HA Hatch Люк
HO Hold Трюм
IMMY, Immediately Немедленно
IMMLY
L/A Letter of Authority Доверенность
LASH To hold goods in position by use of Крепление груза при помощи
Ropes, Wires, Chains or Straps etc. тросов, цепей, спец .устройств,
проволоки и т.п.
LS (or LUMPS) Lump sum Лумпсум (плата за всё судно)
одной суммой
LT Local time Местное время
MDO (DO) Marine Diesel Oil Морское дизельное топливо
(тяжелое дизельное топливо)
MT Metric Tone (i.e. 1000 kilos) Метрические тонны (1000 кг)
M/V Motor Vessel Моторное судно (теплоход)
NEGOS Negotiations Согласования,
NRT Net Registered Tonnage Нетто Регистровый тоннаж
00 Owners Option Опцион судовладельца
OWS Owners Судовладельцы
PC Period of Charter Продолжительность чартера
PC, PCGO Part Cargo Груз на неполное судно
PCT Percent Процент
PDPR Per Day Pro Rata В день или пропорционально
части дня
PH PD Per Hatch Per Day На люк в день (сутки)
P/L Package List Упаковочный лист
RCVR Receivers Получатели
REDEL Redelivery Передача возврат судна
RT Revenue Tone (i.e. 1 .0 metric tone or Фрахтовая тонна. Может быть
1 .0 cubic meter, whichever greater). тонна, куб.метр, метр в
The overall RT is calculated on a line зависимости от договорённости.
by line basis of the Packing List using Указание в договоре перевозки
the largest amount the overall freight об оплате за фрахтовую тонну
liability is calculated on the total RT дает право перевозчику выбрать
amount, multiplied by the freight rate меру по каждому грузу,
дающую больший фрахт
SHING Sundays and Holidays Included Воскресенья и праздничные дни
включены
200
SHEX Sundays/Holidays Excluded Воскресенья и праздничные дни
исключены
SOF Statement Of Facts Акт стояночного времени
SSHEX (or Saturdays, Sundays, Flolidays Субботы, воскресенья,
SATSHEX1 Excluded праздничные дни исключаются
SSHINC (or Субботы, воскресенья ,
SATSHINC) Saturdays, Sundays, Holidays Included праздничные дни включаются
Subject To Enough Merchandise В зависимости от достаточного
STEM количества груза
(Availability of Cargo)
TBA To Be Advised Будет сообщено
TBN To Be Nominated Будет номинировано
TS Time Sheet Тайм шит - лист расчёта
сталийного времени и
WIBON Whether In Berth Or Not У причала или нет
WIFPON Whether In Free Pratique Or Not Получило свободную практику
или нет
WIPON Whether In Port Or Not В порту или нет
WP Weather Permitting Если погода позволит
WPD Weather Permitting Day Погожий день
WTS Working Time Saved Сохранённое рабочее время
WWD Weather Working Day Погожий рабочий день
WWWW Wipon, Wibon, Wiccon, Wifpon В порту или нет, у причала или
нет, очищен таможней или нет,
получил свободную практику
или нет (касается пришедшего
судна)
201
LITERATURE
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138 с.
З.Оберг Р.Р., Фафурин Н.А. Коммерческая практика заграничного плавания. М.
«Транспорт», 1973,- 278 с.
4.Проформы чартеров. Часть 1., М., В/О «Мортехниформреклама», 1983. -468 с.
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6. Ярмолович Р.П., Джежер Е.В. Практика фрахтования судов. - Одесса, Феникс, 2006. -
323 с.
7. Ashley A. Oxford Handbook of Business correspondence. New edition. Oxford University Press,
2007,-304 p.
8. Heather Ferlicchia BA. Commercial English. EKSMO Education, 2005. - 223 p.
9. Hill Ch. Maritime Law. Lloyd’s of London Press Ltd., 1995. - 476 p.
10. Hopkins F. Business and Law for the Shipmaster. - Glasgow., Brown, Son and Ferguson, Ltd,
1998,- 346 p.
II. Lopez N. BES’ Chartering and Shipping terms. Lloyd’s of London Press Ltd., 1998. - 445 p.
12. Luddeke Ch. Marine claims. Lloyd’s of London Press Ltd., 1996. -366 p.
13. Maclachlan M. The Shipmaster’s Business Companion. England, O’Sullivan Printing
Corporation, Southall, 1999. - 431 p.
14. Moens G., Gillies P. International trade and business: Law, policy and ethics. - Cavendish
Publishing . Pty Limited - Sydney - London, 2000. - 819 p.
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статистика», 1992
16. Большой англо-русский юридический словарь. М. «Экзамен», 2003
17. Лысенко В.А. Русско-английский морской технический словарь. Киев «Логос», 1998
18. Повалиев Г.Н. Англо-русский толковый словарь-справочник морских терминов. М.,
«РКонсульт», 2002
19. Фаворов В.П. Англо-русский морской словарь. М., MES, 1996
20. Dictionary of contemporary English. Longman. New edition, 2003
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CONTENTS

UNIT 1. SALES CONTRACT........................................................................................................4

Exercise 1. Read the text and answer the questions

The seller’s liabilities are:

The buyer’s liabilities are:

1. What’s the obligatory condition while concluding a sales contract?

Exercise 2. Match each item to its definition

1. Valid contract A. Money paid to someone because they’ve suffered injury or

2. Liability B. An agreement (contract, promise) which must be obeyed

3. Title C. A document, agreement is legally or officially acceptable

4. Compensation D. An actual failure by a party to a contract to perform its

5. Charge E. The legal right to have or own something

6. Costs F. Legal responsibility for something, especially for paying

Exercise 3. Analyze given situations

8. Entire agreement H. Delivery is as shown on the quotation

Agreement breach capacity consideration damages fraud

7. Packing and Marking

10. Legal Addresses of the Parties

The Buyer: The Seller:

Exercise 7. Translate into English

Exercise 1. Read the text and answer the questions

1. What do you understand by breach o f a contract? Give some examples.

Exercise 3. Match each item to its definition

2. Damages (pi) B. A business organization or a person who is to prepare shipping

3. Consignment C. The amount of money spent on something

4. Shipment D. The determination of the amount due under a policy of insurance

5. ForwardingE. A sum of money awarded by a court as compensation for a breach

6. Expense F. Goods packed together and sent from seller to buyer

7. Justified G. A load of goods sent by sea, road, or air

Exercise 4. What kind o f adjustment would you expect in each case?

DEBIT NOTE No. 311

SEYMORE FURNITURE L tA.

Registered No. 18 51 4 3 9 1 London

C.R. Mendez SA 31 May 19—

The extension should have read:

We apologize for the error and ask if you

Attention: Herr Holer

I am disappointed to note that, despite our previous reminder o f 12 April, your

REMINDER 1 REMINDER 2 REMINDER 3 FINAL DEMAND

Exercise 1. Read the text and answer the questions

CWO (Cash With Order)

There are 4 main types o f invoice:

1. Compare CWO and COD.

Exercise 3. Match the parts o f an invoice with their titles

Champion Sport Ltd. 71 Victoria Lane Date 7th May 1999 В

All freight charges and export packing £5000 c

F c.i.f. London Total £14590 G

Marks 16 cardboard cartons - H

Import Licence No. BRX431999 «I

1. Cost of freight and insurance

1. What is the total number of

3. When can the above T elep h o n e: (0222) 49721

( to conform to requirements - отвечать требованиям; to grant a rebate - дать скидку;

Diamantsagen Wilde GmbH

Our Enquiry PU384 o f 2nd March 20—

-exact description o f the goods

1. Why can the consumers be given a 5% discount?

You ref: FM/ly

Please find (прилагаемый) our invoice No.351685 T fo r $17,850.00 including

Exercise 8. Translate into English

Инвойс - счет-фактура - оформляется, как правило, посредством заполнения

Exercise 1. Read the text and answer the questions

Payments in foreign trade may be made by: