М ИНИСТЕРСТВО ОБРАЗОВАНИЯ И НАУКИ УКРАИНЫ

ОДЕССКАЯ НАЦИОНАЛЬНАЯ МОРСКАЯ АКАДЕМИЯ

Т. В. ВИДИЩЕВА, О. И. МОНАСТЫРСКАЯ

АНГЛИЙСКИЙ ЯЗЫК
В МОРСКОМ БИЗНЕСЕ
И ПРАВЕ
УЧЕБНОЕ ПОСОБИЕ

2-ОЕ ИЗДАНИЕ, ДОПОЛНЕННОЕ, ИСПРАВЛЕННОЕ

ОДЕССА -2014
ББК 81.43
УДК 811.111:34
В 42

Утверждено ученым советом ОНМА в качестве учебного пособия Протокол

№ 10 от 29 мая 2008 года

Рецензенты: зав. кафедрой теоретической и прикладной фонетики английского языка

факультета романо-германской филологии Одесского национального
университета им. И.И. Мечникова к.ф.н., доцент Григорян Н.Р.;
доцент кафедры морских перевозок Одесской национальной морской
академии, капитан дальнего плавания Ярмолович Р.П..;
к.т.н., доцент, профессор Одесского национального морского
университета, академик транспортной академии Украины Марков В.В.

В 42 Английский язык в морском бизнесе и праве [Текст]: учебное пособие. Изд. 2-ое,
дополненное, исправленное / Т.В. Видищева, О.И. Монастырская; - Одесса: ОНМА,
2 0 1 4 -2 4 4 с.

Учебное пособие предназначено для студентов старших курсов морских

высших учебных заведений, изучающих морское право и менеджмент морских
организаций, магистров судовождения, а также для широкого круга читателей,
занимающихся правовыми вопросами в сфере морского бизнеса.
В учебном пособии приведены текстовые аутентичные материалы на
английском языке, подробно освещающие основные темы профессионального
общения в сфере морского бизнеса и права (условия оплаты в международной
торговле, различные виды транспортировки грузов, типы судов и грузов, транспортно­
логистическая схема их транспортировки, инкотермины, обязанности транспортно­
экспедиторского агентства, виды чартер-партии, коносаменты, страховые документы,
общая и частная авария и другие).
Все вышеуказанные темы проиллюстрированы образцами деловых писем,
договоров, банковской документацией, образцами типовых чартеров, коносаментов,
аварийных расписок и гарантий. Пособие содержит англо-русский словарь и
приложение.
Пособие предназначено для тех, что уже владеет английским языком и кому
необходимо усовершенствовать свои знания в области морского бизнеса и права.

ББК 81.43
УДК 811.111:34

ISBN 978-966-7591-30-4 © Т.В. Видищева, О.И. Монастырская, 2008

 CONTENTS
UNIT 1. SALES CONTRACT.........................................................................................................4
UNIT 2. COMPLAINTS AND ADJUSTMENTS.........................................................................15
UNIT 3. TERMS OF PAYMENT...................................................................................................21
UNIT 4. TERMS OF PAYMENT IN FOREIGN TRADE ................................................ 28
UNIT 5. TERMS OF PAYMENT IN FOREIGN T R A D E . A...............................................34
UNIT 6. CUSTOMS....................................................................................................................... 40
UNIT 7. CUSTOMS........................................................................................................................44
UNIT 8. TRANSPORTATION OF CARGO................................................................................ 49
UNIT 9. FREIGHT FORWARDING SHACKLES OF TRANSPORT LOGISTIC CHAIN
P a r ti.................................................................................................................................. 59
Part 2.................................................................................................................................. 64
UNIT 10. INTERMODAL TRANSPORTATION........................................................................ 69
UNIT 11. CLASSIFICATION OF SHIPS. KINDS OF CARGOES........................................... 78
UNIT 12.INCOTERMS................................................................................................................ 82
/ UNIT 13: CHARTERING (GENERAL).......................................................................................91
' UNIT 14. AGENCY...................................................................................................................... 102
UNIT 15. VOYAGE CHARTER A G R E E M E N T S ik m ..........................................................110
UNIT 16. VOYAGE CHARTER AGREEMENTS.&.*.+.ft..........................................................119
UNIT 17. TIME CHARTER AGREEMENTS...........................................................................130
UNIT 18. CONTRACT BETWEEN SHIPOWNER AND CARGO OWNER..........................142
UNIT 19. BILL OF LADING Part 1........................................................................................... 147
UNIT 20. BILL OF LADING .&?.&+ft........................................................................................... 152
UNIT 21. MARINE INSURANCE.............................................................................................. 159
UNIT 22. MARINE INSURANCE.............................................................................................. 166
UNIT 23. TYPES OF LOSS..........................................................................................................172
UNIT 24. GENERAL AVERAGE AND THE YORK-ANTWERP RULES..............................176
UNIT 25. MARINE CLAIMS. HAGUE-VISBY RULES. HAMBURG RULES......................184
UNIT 26. NOTING PROTEST.....................................................................................................191
APPENDICES................................................................................................................................ 197
 UNIT 1
SALES CONTRACT
Part 1
Negotiating and drafting of contracts

Vocabulary
• Party to a contract -договариваю щ аяся сторона
• To be legally protected - быть юридически защищенным
• To sue (for) - подавать иск
• A suit - иск
• In the interim - в промежуточный период
• To make up (for)- возместить
• Litigation- гражданский судебный процесс, тяжба
• Up fro n t - заранее
• To address - (зд.) заниматься (вопросом, проблемой)
• Ambiguities- неясность, двусмысленность
• То draft the contract- составлять проект контракта
• Background - исходные данные
• A reference - характеристика, рекомендация
• A court docket - досье производства по делу, выписка, копия решения
• A form contract- типовой (стандартный) контракт
• То iron out (details)- сглаживать, устранять(детали)
• То evaluate performance- оценивать выполнение контракта
• An internal monitoring system- внутренняя система наблюдения
• Solvency o f the company - платежеспособность компании
• То result in - привести к ....

Exercise 1. Read the text and answer the questions

1. A contract is only as good as the relationship with the other party in the contract.
Many lawyers see contracts as a legal end-all - if you have it signed and in writing, you are
legally protected. From a business perspective, however, a contract only gives you the right
to sue. Furthermore, even a successful suit may not solve your problems. You may win a
case because your supplier failed to supply you, but how do you stay in business in the
interim? Who makes up for the lost time until you win the judgment? And, perhaps most
importantly, who explains to your customers that the matter is “in litigation”? In short,
relying on written contract alone to get you through a deal is poor legal strategy. Fruitful
negotiations and a good working relationship with the other party or parties will be far more
effective in limiting contract problems, avoiding litigation, and keeping your business
moving forward.

2. The best legal strategy for contracts is to negotiate everything up front. You also
need to have a good understanding o f your business and that o f the other party so that the
contract is appropriately written, addresses the needs o f both parties, and anticipates the
types of problems that can arise o f the nature o f both businesses. The signing of the contract
should be the end o f a great deal o f work, not the beginning o f the relationship. Poor
investigation and negotiation can result in ambiguities, disputes, and, litigation.

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 S te p s to f o llo w in t h e n e g o t ia t io n a n d drafting o f contracts a r e s u m m a r iz e d in t h e
c h e c k lis ts .
1. Preliminary steps - contract homework. Do background checks - check references,
number of complaints at state and private agencies, court dockets.
2. Negotiation. Determine the purpose of the contract. Avoid reliance on form
contracts. Iron out details.
3. Contents of the agreement. Draft the contract. Check authority of negotiating and
signing parties. Keep the contract term short.
4. Evaluating performance (employee monitoring system). Establish an internal
monitoring system. Check performance through employee feedback.

C h e c k l i s t fo r d r a f t in g c o n tr a c ts
IDENTIFY both parties clearly. Make sure the parties have the proper authority to
enter into the transaction (Are copies of board resolutions approving the contract available?)
DEFINE the terms used in die contract.
DESCRIBE any industry customs and terms that apply.
LIST ALL TERMS: price, subject matter, quantity, delivery, payment term.
ANSWER “what i f ’ questions: e.g. What if payment is not made? What if deliveries
are late?
DETERMINE whether the parties can be substituted.

Q u e s t i o n s to a s k w h e n e v a lu a t in g c o n tr a c t p e r f o r m a n c e
1. Are deliveries made on time?
2. Who makes the deliveries? Is it a reputable shipping company?
3. Are the shipments arriving in good condition? What is the damage rate?
4. Are payments made in a timely manner?
5. Are there complaints about the quality of the goods?
6. Are service representatives cooperative?
7. Are they easy to get in touch with?
8. Have replacements been made where requested?
9. Have refunds been made where requested?
10. Are there any communication difficulties between employees of our company and
others?
11. Is the company experiencing difficulty on its other contracts?
12. Are there questions about solvency o f the company?
13. Is there a procedure for correcting defects?

1. Explain i f a contract gives you fu ll legal protection.

2. I f you sue and win the judgement, how do you make up fo r the lost time?
3. What can help you avoid litigation and keep your business moving forward?
4. What is the best legal strategy fo r contracts?
5. What can poor investigation and negotiation result in?

2. Fill in the gaps with the prepositions

1. Relationship_________ the other party_______ the contract
2. How do you stay ________ business?
3. Who makes u p ________ the lost time?
4. Who explains_______ your customers that the matter is______ litigation?

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 5. Relying______ a written contract alone
6. The best legal strategy________ contracts
7. Your business and that_____ the other party
8. The beginning_______ the relationship
9. The signing_______ the contract
10. Can result________ ambiguities

Exercise 3. Multiple matching. Match the extracts from the contract with the headings.
1. Subject of the contract
2. Total value of the contract
3. Payment terms
4. Delivery period
5. Packing and marking
6. Guarantee
7. Force-majeure
8. Arbitration

Exercise 4. Read the passages from the contract Check your translation by finding the
corresponding point in Russian.
Underline the key points in both variants and compare them

1. Продавец гарантирует, что

A. Payment will be effected by 100%
prepaym ent or with part advanced payment or
with net terms.
B. The Seller has to ship the goods in export
packing which is to provide the full preservation
o f the goods from any damage and corrosion
during its transportation as well as loading,
transhipm ent and storage at stocks. The Seller is
responsible for the loss and damage owing to the
improper o r insufficient packing and marking.
C. The Seller guarantees that the delivered goods
conform to the highest level o f technology and
highest standards o f the Seller/M anufacturer’s
country for the period o f the execution o f the
contract.
D. The Seller sells and the Buyer buys
phototechnical m aterials hereinafter called as the
product on CIP Odessa, Ukraine according to
the specifications enclosed to this contract and
being its
integral part.
E. The delivery o f the product is carried out
within 6 weeks. For the delay o f the delivery (the
term is fixed by this A greem ent cl. ), the
поставляемые товары соответствую т
наивысш ему уровню технологий и
стандартов, сущ ествую щ их в стране
продавца/изготовителя в течение срока
действия настоящ его контракта.
2. Цена по настоящ ему контракту вклю чает
стоимость материалов, перевозку,
страхование и упаковку. Общ ая сумм а
контракта составляет 45 ты сяч евро.
3. П оставка товара о сущ ествляется в
течение 6 недель. За несвоеврем енную
поставку товара (срок указан настоящ им
Д оговором п.____ ), Продавец вы плачивает
Покупателю ш траф в разм ере 0,1% от
стоимости недоставленного товара за
каждую неделю просрочки.
4. Все споры и разногласия, которые могут
возникнуть из настоящ его контракта или в
связи с ним, долж ны бы ть разреш ены
друж ественны м путем.
5. О плата м ож ет производиться как путем
100% предоплаты , та к и частичной
предоплаты или на условиях отсрочки

6
Seller will pay a fine to the Buyer o f 0,1 % from
the value o f undelivered product for each week
o f delay. ‘
F. According to this contract the price includes
value o f the m aterials, freight, insurance,
packing. Total value is 45000 (forty five
thousand) euro.
G Neither party shall bear responsibility for the
complete or partial non-perform ance o f the
obligations under the contract, if it results from
such circum stances as flood, fire, earthquake and
other acts o f God as well as w ar etc. In this event
the delivery tim e is extended for the period equal
to that during w hich circum stances will remain
in force.
I. All disputes and differences which may arise
out ofror in connection with the Contract will be
settled on an am icable basis.
платежа
6. Стороны освобождаются от
ответственности за полное или частичное
неисполнение своих обязательств по
контракту, если оно явилось следствием
обстоятельств непреодолимой силы, таких
как стихийные бедствия, военных
действий и других. В этих случаях срок
исполнения обязательств по контракту
отодвигается соразмерно времени действия
этих обстоятельств.
7. Продавец продает, а Покупатель
покупает на условиях CIP Одесса,
Украина, фототехнические материалы , в
дальнейш ем именуемых как товар, в
соответствии со спецификациями к
настоящ ему контракту и являю щ имися его
неотъемлемой частью.
8. Продавец должен отгрузить товар в
экспортной упаковке, которая
обеспечивала бы сохранность груза от
всякого рода повреждений при
транспортировке, погрузке, перевалке и
хранении в закрытом складском
помещении. Продавец обязан возм естить
Покупателю убытки, возникшие
вследствие ненадлежащ ей упаковки, а
такж е неправильной м аркировки

Exercise 5. DISCUSS WITH YOUR PARTNER DIFFERENT CLAUSES WHICH CAN BE

STIPULATED, ADDED OR DELETED FROM THE CONTRACT YOU'VE READ BEFORE.

a) In your opinion, what points should be identified in prelim inary discussion?

b) What term s should be defined in the negotiation?
c) If You are the Seller, w hat term s in this contract don’t satisfy you or your company?
d) W hat ‘if-questions’can you ask?

P art 2

Vocabulary
• Sales contract- договор купли-продажи
• To conclude a contract -заключать договор
• To fluctuate - колебаться
• Binding agreement - юридически обязательный договор
• Non-binding agreement -юридически необязательный договор
• То fulfill liabilities - выполнять обязательства
• Title - право собственности
• Document o f title -товарораспорядительный документ
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 • Breach o f contract - нарушение контракта
• To claim compensation - требовать компенсацию
• An injured party - пострадавшая сторона
• To suffice - удовлетворять, быть достаточным
• Sufficient - достаточный, подходящий
• Enforceable (contract)- имеющий юридическую поддержку

Exercise 1. Read the text and answer the questions

A contract to sell is a contract in which ownership of goods is to transfer in a sale in
the future. A sales c o n t r a c t is a legally binding agreement reached by the seller (vendor)
and the buyer (vendee) - the parties to the contract. A sales contract may be made in any
manner sufficient to show agreement, and the contract suffices if the parties by their actions
recognize the existence of a 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.
The price for the goods may take the form o f money, services, or other goods.
However, when the parties to a sale exchange only goods for goods, without involving
money or services, the sale is known as a B a r t e r . The price for goods is usually fixed in the
contract. However, the parties may indicate that the price is to be set in a certain way at a
later date. This method is usually used in long-term contracts when considerable instability
o f prices is expected. In such a case the buyer is required to pay the price that is reasonable
at the time o f delivery.
Payment occurs when the buyer accepts the agreed price and the seller delivers the
goods.
Receipt o f goods means that the buyer takes physical possession or control of them.
Receipt usually involves actual delivery.
Acceptance of goods means that the buyer has agreed, by words or conduct, that the
goods received are satisfactory. Acceptance is shown when the goods are used, resold, or
otherwise treated as if they were owned by the buyer.
A Merchant is a seller who deals regularly in a particular kind o f goods or otherwise
claims to have special knowledge or skill in a certain type o f sales transaction.
A casual seller is one who sells only occasionally and doesn’t meet the definition of
merchant.
After a sales contract has been concluded the seller and buyer have to fulfill certain
liabilities.

T h e s e l l e r ’s l i a b i l i t i e s a r e :
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.

If one party doesn’t fulfill its liabilities, the contract is broken (this is called the breach
o f contract). It means a breaking of the obligation which a contract imposes, which confers
a right of action of damages on the injured party. If the contract as a whole is broken the
injured party has the right to treat the contract as ended or discharged. In this case the other
party (the injured party) can claim compensation. If a less important term is breached,
damages alone may be claimed.
When a contract has suffered from non-performance, the injured party may have
several courses of action open to him to remedy the breach.
-to refuse further performance of the contract
-to bring an action for damages
-to sue on a pro rata payment
-to sue on specific performance (made to carry out the contract)
-to sue for an injunction.

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

2. Why does an offer expire?
3. What does ‘a firm offer ’mean?
4. Enumerate sellers ’and buyers ’liabilities.
5. What is a Barter?
6. Can the price be non-fixed?
7. What does ‘receipt o f goods’mean?
9. What is the difference between a merchant and a casual seller?
10. What remedy is due to the injured party?

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. Tale 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

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 7. Binding G The amount o f money you have to pay for goods and
services

8. Breach of 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

D i d a b r e a c h o f c o n t r a c t t a k e p la c e ? I f s o , h o w ? I f n o t , w h y n o t ?

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 o f 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.

Exercise 4. Below are the main paragraph titles from a Sale Agreement. Match the
paragraph titles with the details of the contents of 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 o f happenings outside
the control o f 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 of 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

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9. Governing law I. This is required when selling to consumers. To sell a
and jurisdiction consumer without this phrase would be a criminal
offence

lO.Rights o f consum er
J. Tries to exclude and restrict the liability o f the Seller to
personal injury and death. It excludes economic loss
and limits the liability o f the Seller to the price. There
is a risk that these terms would be deemed unfair in a
consumer transaction
(imisrepresentation - преднамеренное искалсение
фактов;
rejection —отказ, отклонение)

1 2 3 4 5 6 7 8 9 10

Exercise 5. Here is a brief summary of 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.

What form does a contract take?

In general, contracts may be either (7)______________________ or written. Certain
types o f contracts, however, in order to be enforceable, must be written and
(8) _________________. These include contracts involving the sale and transfer of
(9) _________________ •
How does a contract end?
In case o f (10)______________________ o f contract, the injured party may go to court
to sue for financial compensation (or (11)________________________ ), or for rescission, for
injunction, or for specific performance if financial compensation would not compensate for
the breach. Specific (12)____________________ o f a contract is the right by one contracting
party to have the other contracting party perform the contract according to the precise
(13)________________ agreed.
(duress - принуждение; rescission - расторжение, прекращение; injunction -
судебный запрет)

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E xercise 6. R ea d the contract and answer th e questions

C O NTRAC T N O 018.006

Blackville 20__, February 24

The company Blake Electronic Corporation, Blackville, USA, represented by Mr. J.P.
Manson, General Manager, hereinafter referred to as the "Seller"
and
the company Jackson Ltd. Marketing, Reno, USA, represented by Mr. L.C. Parker,
Commerce Director, hereinafter referred to as the ’Buyer", have concluded the present
Contract to the effect that:
1. Subject o f Contract
The Seller sells and the Buyer buys the goods indicated in the Specification (Enclosure N1),
which is an integral part o f this Contract. The goods should be delivered in accordance with
Terms o f Delivery.
2. Prices and Total S u m o f Contract
2.1. The prices for the goods are in US dollars as indicated in the Specification amount to
$5,879 for each set.
2.2. The total sum is $129,497 (one hundred twenty nine thousand four hundred ninety
seven).
2.3. The prices as per this Contract have been fixed firmly and are not subject to alteration.

3. Terms o f Delivery
3.1. Delivery o f the goods shall be made CIF San-Francisco, International Airport. The goods
are delivered according to the terms printed in the Specification (see Enclosure N1) but not
later than 20 days from the date signing of the Contract.
3.2. The representatives o f the Buyer make the inspection o f the delivered goods before
accepting them in respect o f quality and quantity.
3.3. Partial deliveries are authorized.

4. Terms o f Paym ent

The Buyer is obliged to make payment in US dollars. 100 per cent value o f Contract is to be
paid in advance to the Seller's Bank in 10 days from the date o f 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 M arking

Each set o f the goods shall be packed and marked according to the Buyer's inquiry. Marking
Information is the following:

12
1. Name of the consignee;
2. Name of the consignor (shipper);
3. Contract N (Code);
4. Air Way Bill N;
5. Gross Weight;
6. Net Weight;
7. Box N.
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 Setter:

Company: Jackson Ltd. Marketing Company: Blake Electronic Corporation
1867, Albert Road, Reno, CA, 31137, USA 2811, Pine Line Blackville, MD, 57348, USA
Phone N: Phone N:
Fax N: FaxN:
Account N: Account N:

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 o f the contract?
4. What is the price for each set o f 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 fr o m Russian 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.

13
 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.
 UNIT 2
COMPLAINTS AND ADJUSTMENTS
Vocabulary
• Execution o f the order - выполнение заказа
• To make a complaint - предъявлять претензию, рекламацию
• To be o f inferior quality - быть некачественным
• To be dam aged - быть поврежденным
• In transit - в пути
• Delay in delivery - задержка поставки
• To be shortshipped - недопоставленный
• To match a sample - соответствовать образцу
• Justified - обоснованный
• Adjustment - урегулирование; поправка; (морское страхование) расчет убытков
по общей аварии
• Reminder - (письмо)-напоминание
• Final deadline - крайний срок
• То reserve the right - оставлять за собой право
• То withdraw from the contract - выйти из договора
• То cancel an order - отменять заказ; аннулировать
• То suffer a loss - понести убытки
• То claim damages - требовать возмещения
• Overdue - просроченный
• Hidden, covert reminder - скрытое, косвенное напоминание
• Deferment - отсрочка
• Debit note - дебетовое авизо
• Credit note - кредитовое авизо
• Undercharged - заниженная цена
• Overcharged - завышенная цена

Exercise L Read the text and answer the questions

If the seller causes a breach o f contract, or if there is something wrong with the
execution o f the order, the buyer can make a complaint. Here are some o f 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 o f compensation.
T h e r e a r e 4 p o s s i b i li t i e s :
1. The seller invites the buyer to R eturn the goods at the seller s expense.

15
 2. The seller Replaces the faulty goods at his own expense.
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 not 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 o f 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 do as the seller if the buyer fails to fulfill his liability o f paying on
time.
Exercise 2. Scan the letter of damage. Answer the questions

F. L yn ch Si Co. L td .
(Head Office). Ncsson House, Newell Street. Birmingham B3 3EL
Telephone No.: 021 236 6571 Fax: 021236 8592 Telex: 341641

Satex S.p.A Your Ref:

Via di Pietra Papa O ur Ref:
00146 Roma
D ate: 15 August 19—
ITALY
Attn. Mr D. Causio

Dear Mr Causio,
Our Order No. 14478
1am writing to you to complain about the shipment of sweaters we
received yesterday against the above order.
The boxes in which the sweaters were packed were damaged, and
looked as if they had been broken open in transit. From your invoice
No. 18871 we estimate that thirty garments have been stolen to the
value of £150.00. And because of the rummaging in the boxes, quite a
few other garments were crushed or stained and cannot b e sold as
new articles in our shops
As the sale was on a c.i f. basis and the forwarding company your
agents, we suggest you contact them with regard to compensation.
You will find a list of the damaged and missing articles attached, and
the consignment will be put to one side until we receive your
instructions
Yours sincerely,

L. Crane
Chief Buyer

16
 1. How had the dam age occurred?
2. W hy can’t the garm ents still be sold?
3. W hat does M r C rane intend to do w ith the damaged consignm ent?
4. W hat is enclosed w ith the letter?
5. W hat does “a c.i.f. basis” m ean?
6. W hich w ords correspond to the following: during transportation; assess; clothes;
make up for the loss?

Exercise 3. Match each item to its definition

1. Adjustment A. H aving an acceptable explanation or reason

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

docum ents, to arrange for shipping space and insurance, etc.

3. Consignment C. The amount o f m oney spent on something

4. Shipment D. The determ ination o f the amount due under a policy o f insurance

5. Forwarding E. A sum o f m oney awarded by a court as compensation for a breach o f

agent contract

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

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

(complaint)

1 2 3 4 5 6 7

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

1. You ordered two chests o f best quality Ceylon tea. However, when it arrives, you
find that the quality is inferior to that o f 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 coats will sell ju st as well.
3. You ordered 442 pairs o f handm ade leather shoes. W hen they arrive, you see that the
stitching on one o f the shoes is broken.
4. You ordered 7 w ashing m achines to be delivered within 14 days. However, 6 weeks
later they still haven’t arrived.

M any letters o f com plaint arise out o f accounting errors, which can be put right by
adjustments. Debit notes a n d credit notes are used for this purpose.
D ebit notes are the second charge for a consignm ent and becom e necessary if a
custom er has been undercharged through a mistake in the calculations on the original
invoice.
C re d it notes are sent because o f accidental overcharges. A credit note may also be
issued when a deposit is being refunded or w hen goods are returned because they w ere not
suitable or had been damaged. Credit notes are often printed in red. The form o f a credit
note is the sam e as that for a debit note, except for the heading.

17
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

SE Y M O R E F U R N IT U R E L td.
Tib Street. Maidenhead, Berks. SL6 5D2 Telephone 0626 26755
Registered No. 18514391 London
VAT No. 231 6188 31

C.R. M endez SA 31 M ay 19—

Avda del Ej6rcito 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 (2) £10.00 each = £60.00

W e 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 o f paying on time, it’s customary to send 3
reminders.

18
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%
годовых)

Attention: Herr Holer

Dear Herr Holer
Your ref: 023/499
Account No.: SO/7895
Balance Due: $ 4, 231.92
Due date: 15 April 2007

1 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 fo r the above sum
to be paid by return. Should you fa il 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
NORTHERN OPTICS LTD

Exercise 7. Here are the extracts from three reminders and a fin a l demand.
Organize the extracts into the correct letters
1. We are concerned that this m atter is still unresolved and w ould be grateful to -receiv e
your cheque in full settlem ent o f the outstanding sum w ithout further delay.
2. We w ould like to rem ind y o u that the sum o f $3500 is still o u tstanding on y o u r
account.
3. Since w e have received no replies to our earlier letters, w e have n o op tio n b u t to
inform y o u that unless w e receive a cheque for the outstanding sum o f $ 3500 w ith in
7 days o f the date o f this letter, w e shall place the m atter in the hands o f o u r solicitor.
4. I w rote to you on 1st July regarding y o u r unpaid account, accounting to $3500.
5. Clearly, this situation cannot be perm itted to continue, and w e m ust urge y o u to th e
im m ediate action to clear th e indebtedness.
6. I f you are satisfied w ith the goods supplied to you, w e w ould ask th at y o u kindly
settle the account as soon as possible.
7. We have n ow rem inded y o u tw ice regarding the outstanding sum o f $3500 on y o u r
account, but to no avail.

R E M IN D E R 1 R E M IN D E R 2 R E M IN D E R 3 FIN A L D E M A N D
_____ 2 _ [ ____ __________ i - i
19
Exercise 8. Translate front Russian into English

П р етен зи и и с ан к ц и и
Контракт определяет права и обязанности сторон, вовлеченных в него.
В случае нарушения контракта пострадавш ая сторона предъявляет иск той
стороне, которая не в состоянии (to fail) выполнить свои обязательства. Чащ е всего
покупатель предъявляет иск продавцу, а предметом иска являются количество и
качество.
П родавец подвергается штрафным санкциям (to be penalized), если он не
доставляет груз к обусловленной дате. Размер ш трафа оговаривается в разделе
«Ш траф ны е санкции» (“Penalty Clause”) или в разделе «Согласованные и заранее
оцененны е убытки» (“Clause o f Agreed and Liquidated D am ages”). Если задерж ка
п ревы ш ает 2 месяца, покупатель может канцелировать весь контракт, но продавец
долж ен компенсировать понесенны е потери.
 UNIT 3
TERMS OF PAYMENT
Vocabulary
• To grant - предоставлять
• To deduct - удерживать
• Bulk discount —оптовая скидка
• Early payment discount - скидка за предоплату
• Cash discount - скидка при оплате наличными
• Cash with order - оплата при заказе
• Reputable company - компания с хорошей репутацией
• Cash on delivery - оплата при поставке, «по факту»
• Carrier - перевозчик
• Payment on invoice - оплата по получении счета
• Right o f disposal - право распоряжения собственностью
• Commercial invoice - торговая счет-фактура
• Consular invoice - консульская счет-фактура
• Customs invoice - таможенная счет-фактура
• Pro-forma invoice - предварительная счет-фактура
• On approval - для ознакомления
• Indispensable - обязательный, непреложный
• Open-account terms - условия открытого счета
• Statement o f account - выписка по счету
• То owe - быть должным
• IOU (I Owe You) - долговая расписка
• То settle - расплачиваться, рассчитываться
• Debt - долг
• То retain - оставлять, сохранять
• То request a quotation - запросить ценовую политику
• By order o f - по поручению
• On behalf o f - от имени

Exercise 1. Read the text and answer the questions

When deciding on the terms o f 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 of 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’.

21
 T h e te r m s o f p a y m e n t d e s c r ib e d h e r e a r e a ll p a r t ic u la r ly s u it a b l e f o r d o m e s t ic
tr a d e .

C W O ( C a s h W ith O r d e r )
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.
C O D (C a s h O n D e liv e r y )
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.

P a y m e n t o n in v o ic e
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. C o m m e r c ia l in v o ic e
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 . P r o - fo r m a in v o ic e
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.

22
 3 . C u s to m s in v o ic e
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. C o n s u la r in v o ic e
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.
P a y m e n t o n s ta t e m e n t
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 fo r 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?
23
 Exercise 2. Remember the following abbreviations and terms connected with
invoicing and accounting. Learn them.
D r . (= D e b it) C r . ( = C r e d it )
a /c (= a c c o u n t) c /f ( = c a r r ie d fo r w a r d )
b /f (= b r o u g h t fo r w a r d ) B a l. ( = B a la n c e )
c .w .o . ( = c a s h w i t h o r d e r ) N /C ( = n o c h a r g e )

Exercise 3. Match the parts of an invoice with their titles

M E T R O P O L IT A N T E N N IS E Q U IP M E N T C O M P A N Y
4019 Beach Boulevard South
Los Angeles, California 90126
Invoice Telephone: 615.890.9000
A Fax: 615.890.9077
e-mail: s

Champion Sport Ltd. 71 Victoria Lane

Date 7th Mav 1999 B
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 £500

Insurance from warehouse to warehouse £90 E

F c.i.f. London Total £14590 G

Marks 16 cardboard cartons - H

and Nos.
10 per carton I

Import Licence No. BRX431999 J

MTE
CS LTD K
LONDON
1-16 per pro
Metropolitan Tennis Equipment

'RoBerto MoraCes

1. Cost o f freight and insurance

2. Date o f issue
3. Shipment terms
4. The export and/or import license numbers
24
 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
a t_________, for a total o f__________ . The cost of freight was__________ and the
insurance from 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? H O M EM AKERS Ltd.
2. What’s the price per item? 54-59 Riverside, CordiHCFl IJW
3. When can the above Re^istorod No. Cl 35162

mentioned abbreviations be
used?
Exercise 5. Scan the letter on
granting open-account facilities.
Answer the questions
Homemakers are prepared to give
credit even though they feel it
may not be in the best interests o f
their customer
1. W hy does M r C liff th in k it
would be be tte r for M r H ughes to
settle invoices w ithin 7 days?
2. W hy d o e sn ’t M r C liff need any
references from M r H ughes?
3. W hen should M r H ughes pay
invoice D M 1113?
4. W hat form o f open accoun t
facilities is M r C liff offering?
Mr R Hughes 24 July 19—
R Hughes & Son Ltd.
21 Mead Road
Swansea
Glamorgan 3ST 1DR
Dear Mr Hughes,
Thank you for your order. No. B1662. which will b e sent to you
tomorrow. I have taken the opportunity to enclose the invoice.
DM 1113, with this letter.
With regard to your request for open account facilities, settlement
against monthly statement. I feel there would be more advantage for
you in claiming the 3% cash discounts offered for payment within seven
days of receipt of invoice. Nevertheless. I am quite prepared to allow
monthly settlements, and there will be no need to supply references as
you are a long-standing customer.
The enclosed invoice will be included in your next statement.
Yours sincerely,
Enc. Invoice DM1113

25
Exercise 7. Scan the request fo r pro-form a invoice and answer the follow ing questions

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

to justify the concession - оправдать уступку; to open the L /C -от кры т ь аккредитив)

10 April 20..

Diamantsagen Wilde GmbH

RitterstraRe 9
22089 Hamburg
GERMANY

Dear M r Wilde

Our Enquiry PL/384 o f 2nd March 20—

Your Offer No. 58391 o f 21st March 2 0 -

We are pleased to inform you that your D X 33 saw-blades wholly conform to our quality
requirements. We should therefore like to place an orderfor 25 units; provided yo u can
see your way clear to granting us a fu rth er rebate o f 5% on your prices as quoted in the
above-mentioned offer. Wefe e l 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 fo r an
import license fro m our local Government authorities and would therefore ask yo u to
send us a pro-forma invoice to include the follow ing details:

-exact description o f the goods

-unit and total price with discounts
-terms o f payments and delivery C IF Calcutta
-packing list

We would be grateful i f you would send the pro-forma invoice by registered mail. A s
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?

26
 Exercise 8. 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 Arthur 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 m/v Marina
tomorrow and are due (прибыть) at your (офисные помещения) at the beginning o f
next week.

Please fin d (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, (подлеж ащ ий^ the usual (скидка за
npedoruiamy)of 3 per cent

We trust that you will receive the goods in perfect condition and remain at your
service fo r further deliveries at any time.
Yours sincerely_____________________________________________________________

Exercise 9. Translate from Russian into English

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.
 UNIT 4
TERMS OF PAYMENT IN FOREIGN TRADE
Part 1

Vocabulary
• Timelag - временной лаг, отставание во времени, запаздывание, период
ожидания
• Collection o f payments - инкассо (получение денег по векселям)
• Cash against documents (CAD) - оплата по получении документов
• Documents against payment - документы после оплаты
• Transport documents - транспортная документация/накладная
• Remitting bank - банк-плателыцик; банк, переводящий денежные средства
• Collecting bank - банк-получатель; банк-инкассатор
• A draft - платежное поручение
• Perishable goods - скоропортящийся груз
• То dispatch - отправлять, отгружать
• То seal the goods - опечатывать товары
• То issue - выдавать
• A bill o f exchange -* банковский вексель
• То draw a bill - выписать вексель
• A drawer - трассант; лицо, подписавшее вексель
• A drawee - трассат; лицо, на которое выставлена тратта
• First/second bill o f exchange - первый/второй экземпляр векселя
• Maturity - дата, срок выплаты
• То accept - акцептировать, принять к оплате
• Acceptance - акцепт; согласие на оплату денежных и товарных документов
• A sight bill - вексель к оплате по предъявлению
• A time bill - вексель со сроком оплаты
• A term bill - вексель с оплатой в течение указанного срока
• A date bill - вексель с указанной датой оплаты
• A clean bill - чистый вексель
• То endorse the bill - индоссировать документ, сделать передаточную надпись
• At a current rate o f exchange -по текущему курсу обмена валюты
• Dishonoured- не оплаченный в установленный срок

Exercise 1. Read the text and answer the questions

When it comes to dealing with money, the banks provide a variety o f 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
2. Collection of payments
3. Observance of buyers’ conditions of purchase

28
 4. Discounting bill o f 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 o f 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, and agents. Payment is made
quarterly by bill o f 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 o f the seller in the seller’s country. It’s necessary for the buyer
or a debtor to send a letter o f 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 of J5,423.00

to the account of Esser & Co., Wirtschaftswerbung GmbH in Witten, Germany in respect o f their
invoice No. 92/4/A USLJ4093.

The account details are asfollows:

Account holder: Esser & Co.
Account No.: 789046001
Branch Code: 45240056

We would be grateful if you would arrange for payment to be effected by SWIFT to ensure that
thefunds arrive by the end o f the month.

Yoursfaithfully
VANTA GE AD VERTISING
Iain Gowe
European Campaigns Manager_______________________________________ _____________________
(in respect o f - касательно; account holder - дерэ/сатель счета; branch code -
банковский код; arrange fo r - принимать меры, обеспечивать; ensure - обеспечивать;

29
SW IF T -банковская компьютерная система для международных банковских
переводов)

T h e B ill o f E x c h a n g e (B /E )
A B /E is an unconditional o rd er from one p erso n to an o th e r to p ay a c e rta in am ount at
a certain tim e. T he m oney can be p aid eith er to th e p erso n w h o g av e th e u n c o n d itio n al order
or to a third party. B /E can be used for eith er d o m estic or fo reig n trad e.
T h e p a r tie s to a B /E a re : a drawer w ho m ak es ou t th e B /E a n d sen d s it to th e drawee
(the person w ho has to pay it). H e m ay sen d 2 copies {the first and second bill o f exchange)
in case one gets lost.
E ach B /E belongs to a certain category, d ep en d in g on th e tim e at w h ic h it matures (has
to b e paid).
1. A sight bill (draft) is paid on p resentation. It includes th e w o rd s “ P a y a t s ig h t ” . The
d raw e e has to pay as soon as th e d raft is p resen ted (as so o n as h e sees it). A B /E which
h a s n ’t b een p a id y et is called a draff, an accepted B /E is called an acceptance.
2. Time bills are payable at a fixed o r determ inable fu tu re tim e. T h e re are 2 types o f
tim e bill:
a) a term bill is payable at a certain n um ber o f days after it is p rese n ted to th e draw ee,
e.g. “Pay at 60 days after sight” .
b) a date bill is payable at a certain num ber o f days a fte r it w a s d raw n, e.g. “pay at
60” .
3. A clean bill is one that is not accom panied by ship p in g d o cu m en ts.
4. A dishonoured bill is one th at is no t paid on th e due date. In th is case the exporter
w ill p ro te st the bill, i.e. he w ill go to a notary, a law yer, w h o w ill tak e legal actions to
rec o v e r the debt.
5. B ills can be negotiable if the d raw er endorses the bill, i.e. th e bill becom es p ayable
to th e p e rso n w ho ow ned it.
A s ig h t d r a f t is paid on presentation. In a documents against payment (D/P)
tra n sa ctio n , the sight draft is p resen ted to th e im porter w ith th e sh ip p in g docum ents, and the
im p o rte r p a y s im m ediately, i.e. ’on p resen tatio n ’ o r ‘at sight’.

D o c u m e n ts a g a in s t p a y m e n t (D /P )
T h e b u y e r needs the tran sp o rt docum ents before h e can tak e p o ssession o f the goods
h e h a s p u rch a se d , but is only given them after paying a sight bill d raw n b y th e seller.

D /P tr a n s a c t io n is e f fe c te d a s fo llo w s :
1. T h e seller sends the goods to th e carrier (ship ow ner, airlin e, etc.)
2. T h e c a rrie r gives the n ecessary transport documents to th e se lle r and transports th e
g o o d s to the b u y e r’s country.
3. T h e seller collects any o ther tra n sp o rt docum ents w h ich m ay b e n ecessary and gives
th em to his b a n k (the remitting bank) to g eth er w ith a sight draft.
4. T h e rem ittin g b a n k sends the tra n sp o rt docum ents and th e d raft to the b u y e r’s b an k
(the collecting bank). T h e b uy er is no tified w hen they arrive.
5. T h e b u y e r pays the sig h t b ill and receives the tran sp o rt d o cu m en ts in return. H e can
th en tak e the tra n sp o rt docum en ts to collect his goods from the c arrier in his country.
6. The collecting bank sends the payment to the remitting bank. The amount is credited to the
seller.

30
 This means that if the buyer d oesn’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 m inim izes 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 . How ever, this risk can be minimized by asking the seller to
arrange exam ination o f 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 o f 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)

31
 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 retumed).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 5. Scan the letter and define the main idea

Panton Manufacturing Ltd .

P a n to n W orks, H ounslow , M iddlesex, T W 6 2 B Q

Tel: 081 353 0125 Registered No. England 266135

Cables: PANMAN
Telex. 21511
Fax: 081353 6783

Mrs B. Haas, 10th April 19—

B. HaasB. V..
Heldringstraat 180-2
Postbus 5411
Amsterdam 1007
NETHERLANDS

Dear Mrs Haas.

BÆ No. 1671
The above bill for £860.00 was returned to vis from our bank this morning
marked 'Refer to Drawer'.
The bill was due on the 5th April and appears to have been dishonoured.
We are prepared to allow you a further three days before presenting it to
the bank again, m which time we hope that the draft will have been met.
If the account is still not settled, w e will have to make a formal protest,
which we hope will not b e necessary.
Yours sincerely,

D. Panton
Managing Director
(Protest a bill - опротестовать вексель)

Exercise 6. Match each item to its definition

1. Commission A The date by which a bill must be paid
2. Drawer B 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

32
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

Exercise 6. Translate front Russian into English

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 $ 5, 000 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
акцептантом (acceptor) надписью на платежном требовании «акцептовано» и его
подписью.
8. Переводной вексель с оплатой по предъявлению 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.
 UNIT 5
TERMS OF PAYMENT IN FOREIGN TRADE
Part 2

Vocabulary
• Documents against acceptance - документы по принятию; передача права
собственности после получения чека к оплате
• Letter o f credit - аккредитив
• Opening/issuing bank - банк-эмитент; банк, оформляющий аккредитив
• Advising bank - банк, производящий выплату по аккредитиву
• Beneficiary - бенефициар, получатель по аккредитиву
• Documentary credit - документарный аккредитив
• То honour the bill o f exchange- оплатить счет в установленный срок; выполнять
обязательства
• То recover the goods - получить свой товар обратно
• Confirming bank - подтверждающий банк
• Cost and charges - стоимость и расходы
• Irrevocable L/C - безотзывный аккредитив

Exercise 1. Read the text and answer the questions

DOCUMENTS AGAINST ACCEPTANCE (D/A)

This term o f payment is very similar to D/P. However, instead o f 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 t r a n s a c t i o n is e f f e c t e d a s f o l l o w s :
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 o f 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 w on’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.

34
 LETTER OF CREDIT (L/C)
A letter o f credit is a more binding method o f payment.
A letter o f credit is a promise made by t h e b u y e r ’s b a n k (the opening or issuing bank)
to send a certain sum o f money to t h e s e l l e r ’s b a n k (the advising bank), to be credited to
the seller, known as his beneficiary, provided he fulfils his part o f the sales contract. It is
also known as a documentary credit.
Documentary credits - letters o f credit accompanied by documents - are widely used
in the import/export trade.
There are two types o f 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.
P a y m e n t b y le t t e r o f c r e d it is e f fe c te d a s fo llo w s :
1. The buyer and the seller agree on all terms and conditions o f the sales contract.
2. The buyer fills out a n a p p l i c a t i o n f o r m to open a letter o f credit at his bank (see
annexl, 2). 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 o f dispatch and any other documents involved (e.g. certificate o f
origin, consular invoice, certificate o f quality); the length o f time the credit will be
available. The availability o f the credit should take into account o f how much time it will
take to prepare and ship the goods.
3. The opening (buyers) 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 o f the total
amount o f 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.

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 fo r the seller?
4. Which o f the various terms ofpaym ent fo r foreign trade is the safest fo r all parties
and why?
5. What information should be included in the application form ?
6. What is the function o f a confirming bank?
 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 letterfrom the importer (the buyer) to his bank. The importer writes
to his bank opening the credit. Quote his requirements

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

The Manager Date: 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. I have enclosed your application form with
all the relevant details completed.
Please inform me when you have made arrangements with your agents in
London.
Yours faithfully,

VA
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).

36
Exercise 4. R ead th e letter an d answer th e fo llo w in g questions

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
Mr G. James
Delta Computers Ltd.
Bradfield Estate Date 5 May 19—
Bradfield Road
Wellingborough
Northamptonshire NN8 4HB
UNITED KINGDOM

Dear Mr James,
Thank you for replying to our enquiry of 19 April and letting us know that
the C2000 computers, Cat. No. D16 are available.
The terms you quoted are quite satisfactory, and you will find our order,
8815, enclosed. We have instructed our bank, New Zealand Bank,
Takapuna Street, Wellington, to open an irrevocable letter of credit for
£22,000 in your favour. This should cover c.i.f. shipment and bank charges,
and the credit is valid until 10 June 19—.
You will receive confirmation from our bank’s agents Eastland Bank Ltd,
401 Aldgate, London EC1, and you may draw on them at 60 days for the
amount of the invoice. When submitting youi draft, would you please
enclose the following documents?
Bill of lading (6 copies)
Invoice c.i.f. Wellington (4 copies)
A.R. Insurance Policy for £24,200
Please fax or telex us as soon as you have arranged shipment.
Yours sincerely,

M. Tanner
N. Z. Business Machines Pty.
Enel: Order 8815

1. W hen does the credit expire?

2. W hat should the beneficiary do to get the money?
3. W hat sort o f shipm ent is it?
4. W hat is the confirm ing bank?

37
Exercise 5. Match each item to its definition
1. Beneficiary A. The date by which a bill must be paid
2. Days of grace B . A credit which cannot be cancelled
3. Honour (to) C. A load o f 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, andfill 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 ]2 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 (7)_________________ our next order, if

these new payment terms are acceptable.

I enclose details of two referees, who (8)_________________ should

you require trade references, and look forward to hearing from you.

Yours sincerely,

David Arnold
Accountant
Encs.

38
Exercise 7. Translate from Russian into English

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 (confïrmed) 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$ 5,000 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.

39
 UNIT 6
CUSTOMS
Part 1

Vocabulary
• Home-produced goods -отечественные товары
• To impose duty -облагать пошлиной
• Excise duty - акцизный сбор
• Legal entities and individuals - юридические и физические лица
• Customs authorities - таможенные власти
• То seal a container - опечатать контейнер
• Intact seal - целая пломба
• Customs duties and taxes - таможенные пошлины и налоги
• Duty rates - таможенные ставки
• Duty-free - беспошлинный
• То declare goods - декларировать товар
• То clear goods through customs - проводить таможенную очистку
• Customs clearance - таможенная очистка
• Dwr/аЫе-облагаемый пошлиной
• Bonded warehouse -бондовый склад, где грузы находятся до уплаты
таможенной пошлины
• In bond - нерастаможенный
• То release the goods- снять арест с товара, «растаможить» товар
• Surtax duty - подоходный налог
• Sales taxes - налог на продажу
• V.A. Т (Value Added Tax) - налог на добавленную стоимость
• Turnover taxes - налог с оборота
• EEC (European Economic Community, the Common Market) - Европейское
экономическое сообщество, Общий рынок
• EFTA (European Free Trade Association) - Европейская ассоциация свободной
торговли

Exercise 1. Read the text and answer the questions

In every country import-export rates are supposed to fulfil 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

40
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.

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 o f delivery). The goods are
then released for further transportation to their destination.
2. In the case o f containerized goods, the container is sealed by the customs authorities
at the place o f 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 of lading, freight document, notice of 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).
The bill o f lading will go with other documents to f o r m a c o m p l e t e s e t o f s h i p p i n g
d o c u m e n t s . The shipping documents will usually comprise the B/L issued by the master or
his agent; the marine insurance policy insuring the goods against loss or damage on the
voyage; the commercial invoice. These are the main documents. Others may include a
certificate of quality/quantity and a certificate of origin.
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.

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.

41
Exercise 2. Insert appropriate prepositions

1. All taxes, customs duties and other charges levied (1)__________ connection
(2)___________ the performance ( 3 ) _________ this Contract (4)_________ Ukraine are
to be paid (5)_______ the Sellers and those levied outside Ukraine are to be paid
(6)________ the Buyers.
2. The simplest form (7)_______ a tariff is one which consists of a single column
levying the same rate (8)_______ duty (9)_______ all imports.
3. (10)_______ addition (11)______ customs duties proper, many countries levy
extra charges (12)______ one kind or another. The most common form is a surtax charged
as a percentage (13)___________ the duty.
4. The internal taxes are (14)________ a different kind. They are collected
(15)______ imports (16)________ many countries. These are usually levied
(17)_______ the same rate as (18)______ similar products (19)________ domestic origin.
Included (2 0 )________ 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 W EIGHT)

C ontract No

(COUNTRY OF ORIGIN)

(CONSIGNOR)

(DESTINATION)

(CONSIGNEE)

FOR OFFICIAL USE ONLY

CUSTOMS TARIFF___________________________________________

DUTY TO PAY____________________________ __________ _________

ADDITIONAL CHARGES__________________ ____________________

REMARKS------------------------------ -------------------------- ----- CUSTOMS OFFICIAL______ ___

------------------------------------------------------___ DATE_____________ _

42
Exercise 3. 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 (1)______________of goods you will come into
contact wit the (2) . All goods must be ("3) and presented
(4)___________ .____•
2. Declaring a (5)_______ involves giving the Customs authorities information about
the commodity, which they need in order to determine the correct (6)___________ for the
commodity. This information which includes weight, quantity, value and etc., forms the
basis for calculating ( 7) ___________________________ .
3. Some goods, for example foodstuffs, clothes or flowers may be subject to (8)_____;
the other types of goods, such as narcotics are not (9)_______ at all. (10)__________ of
these regulations can result in severe (11)__________ .

Exercise 4. Translate from Russian into English

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.
8. Сертификат о происхождении товара подтверждает страну происхождения или
вывоза товара. Он выдается торговой палатой страны происхождения товара и
является необходимым в международной торговле.

43
 UNIT 7
CUSTOMS
Part 2

V o c a b u la r y
• Export duty -экспортная пошлина
• Import duty - ввозная таможенная пошлина
• Protective duty - протекционная пошлина
• Dumping - демпинг, бросовые цены
• Trade agreement - торговое соглашение
• Bilateral agreement - двусторонний договор
• Multilateral agreement - многосторонний договор
• Luxury goods - предметы роскоши
• Preferential duty - преференциальная пошлина
• Specific duty (fixed duty) - фиксированная пошлина
• Compound duty (mixed duty) - смешанная пошлина
• Ad valorem duty - адволорная пошлина
• Freight forwarder - экспедитор
• Consumption - потребление
• To designate - предназначать
• Official customs stamp - печать
• To reclaim customs duty - требовать налоговую пошлину
• To discharge from the responsibility - снимать ответственность
• To absolve o f the guarantee - быть свободным от гарантий
• Fraudulent - фальшивый, мошеннический

E x e r c is e 1. R e a d th e te x t a n d a n s w e r t h e q u e s tio n s

TYPES OF DUTY
E x p o r t D u ty
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.

I m p o r t D u ty
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

business because of cheaper foreign imports. The process of importing cheaper foreign
goods is known as dumping.

2. Preferential duty: Preferential duty is a lower rate of duty imposed on countries with
which there is a trade agreement. Such agreements may be bilateral (between two countries)
or multilateral (three or more countries).Groups of countries which have multilateral trade
agreements include NAFTA (the North American Free Trade Association, made up of

44
Canada, the US and Mexico) and ASEAN( the Association of Southeast Asian 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 o f 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 o f 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 o f 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 o f 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 port of

45
 entiy is shown documentary proof that that the goods have left an EU customs port o f exit.
The documentation that regulates the Community Transit, the “T1 Form” is the official
customs stamp on page 5 o f the document. Its return to the port o f entry discharges the
freight forwarder from the responsibility. If page 5 o f 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 of duty do you think was imposed in each case?
1. An exporter in France sent a consignment o f cheese to an exporter in Sweden.
2. An importer in Japan wanted to buy cheap cameras from Taiwan.
3. A group o f Ukrainian tourists bought quantity o f expensive perfume while on
holiday in France.
4. A Sri Lanka company sent large quantity o f tea to England.

Exercise 3. Scan thefreightforwarder’s requestfor customs clearance and answer

the questions
(shipping order - отгружаемый заказ; haulier - экспедитор грузового
транспорта; documentary collection - торговое инкассо; forwarding arrangement -
фрахтовые мероприятия; forwarder’s receipt - расписка экспедитора; export
notification - экспортное уведомление)___________________________________
EUROFREIGHT LTD
49 Tentertow© Lane
Hitltngdon
Middlesex MU8 8DE
e-mail: ewoireightfeiQI.cQm.tjk
AG/MM
24 March 20..
Glaxo Chemicals Ltd
237 Sutton Common Road
LONDON
SW11 3BY
Dear Sirs

Export Consignment to Budapest. H ungary

We refer to the following shipping order:

Consignee: Budapesti Vegyi Mivek
Budapest XII
Radnoti Miklos Utca 23
1367
Magyarorszag (Hungary)

Consignment: 10,565 kg bitumen (15 drums) (value $13,300)

Order No.: 19t/1.93 (as per your fax of 12 March 200-)

46
Delivery: 3-4 weeks after receipt of L/C
Hauliers: Urigtrocamion, Budapest

Your customer, Budapesti Vegyi Mivek, has requested us to collect the above consignment using
Ungarocamion hauliers and forward it in accordance with his instructions to Hungary.
Please therefore let us have details o f either the L/C or the documentary collection (B/E, Bs/L)
agreed, to enable us to progress forwarding arrangements and issue a forwarder's receipt.
For customs clearance we require:
for Export
E x p o r t n o t i f i c a t i o n o r e x p o r t d e c la r a t io n

for Import into Hungary

C o m m e r c ia l I n v o ic e in t r ip l i c a t e
P a c k in g s p e c i f i c a t i o n in t r ip l i c a t e

Should you require any further details or information please do not hesitate to call us on 0181 580
580 4971 or fax us on 0181 580 4862, or send us an e-mail.

Yours faithfully
EUROFRIGHT LTD
Arnold Graham
Transport Controller

1. W ho is the consignor/shipper?
2. W hat’s the name o f the company which has to receive the goods?
3. W hat’s the place p f destination?
4. W hat documents are required?
5. W hen 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 declaration

1. As the importer or exporter it is your responsibility to fill in a (1)__________ and

present it to (2)_______________for (3)_______________.
2. When you declare goods, you submit the necessary (4)_________________________
to the Customs.
3. The goods will not be (5)_____________until invoice, freight document, licences,
permits and other documents demanded by the Customs and (6)_________________ have
been presented.
4. Before you can sell or make use o f the goods, you need (7)____ 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

47
установлен общий таможенный тариф, обеспечивающий единообразные для всех
членов условия приема товаров из других государств. 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.
8. Представление сертификата о происхождении товара предусмотрено
законодательством страны ввоза или международными договорами для применения к
товарам льготного режима в отношении таможенного обложения, например,
позволяет использовать преференциальный тариф.
 UNIT 8
TRANSPORTATION OF CARGO
Part 1
Vocabulary

• Contract o f carriage - договор перевозки

• Consignment note - грузовая накладная
• A stamp- штемпель
• An accounting machine entry -отм етка кассового аппарата
• A contractual carrier - договорной перевозчик
• A subsequent carrier- последующий перевозчик
• A “substitute carrier "- «заменяющий перевозчик»
• To certify the taking over o f the goods - подтвердить прием груза
• An agreed route - согласованный маршрут
• Prima fa c ie evidence - презумпция доказательства; доказательство, достаточное
при отсутствии опровержения
• То allege - ссылаться, утверждать
• A person entitled - уполномоченное лицо
• То draw up a report - составлять ( отчет), коммерческий акт
• То make the claim - предъявлять иск, претензию
• Extent o f the loss or damage - размер потери или повреждения
• P laintiff - истец
• То furnish p r o o f - представить доказательство
• Proceeding - судебное разбирательство
• То extinguish the right - аннулировать право
• То exercise the right - использовать, осуществлять право
• То bring an action (against)- возбудить дело(против), предъявлять иск

Exercise 1. Read the text and answer the questions

C o n tr a c t o f c a r r ia g e
Under the contract o f carriage, the carrier shall undertake to cany the goods for
reward to the place o f destination and deliver them there to the consignee. It must be
confirmed by a consignment note which accords with a uniform model.
The consignment note is a document prepared by a consignor and countersigned by the
carrier as a proof o f receipt o f consignment for delivery at the destination. It’s used as an
alternative to Bill o f Lading (specially in inland transport), it’s generally neither a contract
of carriage nor a negotiable instrument.The consignment note shall be signed by the
consignor and the carrier. The signature can be replaced by a stamp, an accounting machine
entry or in any other appropriate manner.
“ C a r r i e r ” means the contractual carrier with whom the consignor has concluded the
contract o f carriage pursuant to these Uniform Rules, or a subsequent carrier who is liable
on the basis o f this contract.
“Substitute carrier" means a carrier, who hasn’t concluded the contract o f carriage
with the consignor, but to whom the carrier has entrusted, in whole or in part, the
performance o f the carriage. The carrier must certify the taking over o f the goods on the

49
duplicate o f the consignment note in an appropriate manner and return the duplicate to the
consignor.
The consignment note
shall not have effect as a bill of lading. It must be made out for each consignment,
(see annex 4)
It must contain the following particulars:
a) the place at which and the day on which it’s made out;
b) the name and address of the consignor;
c) the name and address of the carrier who has concluded the contract of carriage;
d) the place and the day of taking over o f the goods;
e) the place o f delivery;
f) the name and address of the consignee;
g) the description of the nature of the goods and the method of packing;
h) the number of packages and the special marks and numbers;
i) a detailed list of the documents which are required by customs or other
administrative authorities and are attached to the consignment note;
j) the costs relating to carriage, e.g. carriage charge, customs duties, etc.

Where applicable the consignment note should also contain the following data:
a) the costs which the consignor undertakes to pay;
b) the agreed transit period;
c) the agreed route;
d) the amount of the cash on delivery charge.
The consignment note shall be prima facie evidence of the conclusion and the
conditions o f the contract of carriage and the taking over of the goods by the carrier.

Liability of the parties under the contract of carriage

in case of loss or damage to the goods
When partial loss or damage is discovered by the carrier or alleged by the person
entitled, the carrier must without delay, and if possible in the presence of the person entitled,
draw up a report stating the condition of the goods, their mass and, as far as possible, the
extent o f the loss or damage, its cause and the time of its occurance, according to the nature
of the loss or damage.
Claims relating to the contract of carriage must be addressed in writing to the carrier
against whom an action may be brought.
To make the claim the consignor must submit the duplicate of the consignment note.
Failing this he must produce an authorization from the consignee or furnish proof that the
consignee has refused to accept the goods.
To make the claim the consignee must produce the consignment note if it has been
handed over to him.
Actions based on the contract of carriage may be brought only against the first
carrier, the last carrier or the carrier having performed the part o f the carriage on which the
event giving rise to the proceedings occurred.
If the plaintiff has a choice between several carriers, his right to choose shall be
extinguished as soon as he brings an action against any of them; this shall also apply if the
plaintiff has a choice between one or more carriers and a substitute carrier.

50
 1. What is the function o f a consignment note?
2. What types o f a carrier are there in the contract o f carriage?
3. What obligatory particulars should be included in a consignment note?
4. What is confirmed by a consignment note?
5. What information should be included in a carrier’s report under the contract o f
carriage?
6. What should be done by the parties o f the contract o f carriage when making a
claim?
7. Who acts as a defendant at the litigation?

P art 2
Vocabulary
• General cargo - генеральный груз
• Bulk cargo - насыпной, навалочный, наливной груз
• Bulky cargo - громоздкий, объемистый груз
• Dry bulk cargo - навалочный ip>s
• Heavy cargo (heavy- lift,extra-weight) -тяжеловесный груз
• Liquid cargo - жидкий груз
• Refrigerated cargo - рефрижераторный груз
• Airway bill - авиагрузовая накладная
• To deteriorate - ухудшать(ся)
• Haulage company - компания наземных перевозок
• Grouped consignment - сборная партия груза
• Groupage B/L - коносамент на сборную партию груза
• Forwarding agent - экспедитор
• Interm ediary- посредник
• Forwarding agent’s Certificate o f Receipt - Акт приемки экспедитором
• Railway company - компания железнодорожных перевозок
• Goods train - товарный поезд
• Passenger train - пассажирский поезд
• Express train - поезд-экспресс
• Rail consignment note - железнодорожная накладная
• International Consignment Note (CMR) - транспортная накладная
• In shifts- (о работе) посменно
• A manifest - декларация груза и пассажиров (самолета или поезда)
• A delivery order- указание о доставке; распоряжение о выдаче товара со склада
или о выдаче части груза по коносаменту
• Trucking Со- компания грузового автотранспорта
• Runway - взлетная полоса

Exercise 1. Read the text and answer the questions

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:
-A ir
- Land, by road or by rail
- Water, which covers both domestic (national) and ocean (international) shipping.
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 When choosing the most suitable form o f transport, the consignor has to consider:
- What kind o f goods are to be sent - perishable goods have to be transported more
quickly than non-perishable goods, for example.
-T h e place o f destination - not all destinations can be reached by all forms of
transport.
- The cost o f each form o f transport, how fast it is and how safe. The consignor may
have to decide whether speed is more important than safety, for example.

Types o f c a r g o
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.
- Bulky cargo - large individual items such as cars which have to be sent unpacked.
- Perishable cargo - goods with short storage period
- D ry 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

A ir tr a n s p o r t
Air transport is chosen when the goods are valuable, fragile, urgently needed. Some
goods deteriorate, e.g. flowers (perishable goods).

AD V AN TA G E S D ISAD VAN TAG ES

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 o f transport; 2. It is not practical for short distances.

It 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
o f an airport.

The transport document necessaiy when goods are dispatched by air is the air w aybill

Airw aybill

The air waybill isn’t a document o f title and can’t be negotiated (see annex 3).
However, the exporter has a right o f disposal to the goods, which means that on presenting
his copy o f 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

52
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.

An Airlines Co may have 3 departments: Import, Export and Operations. Each of the
staff may work in all three departments and in shifts.
As soon as a manifest is made at the airport of departure the Import Department can
make a computer printout o f this document. Using the above it’s known in advance which
shipments will be on board the plane. Then the shipments are divided into 3 categories.
First a delivery order is made for the shipments that have their basic headquarters
airport as their final destination.
The second group is shipments with a destination that the Co doesn’t serve. A transfer
manifest must then be made for the second group.
The third group is made by shipments destined for a city where their airline is
represented. The shipments are prepared for further transportation by road feeder service,
which means shipment by truck. The company usually uses an independent trucking Co to
deliver cargo to and from cities that the Airline Co serves.
When the plane arrives one of the staff goes out on the runway to collect the original
airwaybills and manifests. Back in the office the airwaybills copies are made and sorted out
in three piles mentioned above. The manifest is also transferred to customs via computer so
that they know what is being transported.

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.

ADVANTAGES DISADVANTAGES
1. Virtually all types of cargo can be 1. The railway may be effected by strikes
transported

2. Virtually any distance can be covered 2. There is a relatively high risk of theft
Large quantities can be transported

The transport document needed for railway transport is the rail consignment note.

53
54
 R o a d tr a n sp o r t
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.

ADVANTAGES DISADVANTAGES
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 over
items such as cash reserves can be 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 o f using a grouped consignment service. If a trader only has
a small quantity o f cargo to send, he can collaborate with other sellers with small
consignments all going to the same destination.
The various parts o f consignments are then sent together as one whole consignment,
which reduces the transport costs for everybody involved.
One o f 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).

1. What key points should be taken in consideration to choose the best mode o f
transportation?
2. What types o f cargo do you know?
3. What modes o f transportation are usedfor transporting goods?
4. What documents are used fo r different air/road/railway transportation?
5. What’s the function o f the airwaybill?
6. Who can arrange fo r grouped consignment?
7. What’s the airwaybill made up of?

55
 Exercise 2. Divide the following goods into cargo groups

Exercise 3. Which form orforms of transport would you choose for the following
consignments, and why? What kind of 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 o f tea from Bombay to Boston.
5. A consignment o f diamonds from Cape Town to Cairo.
6. A large consignment of coal from Sheffield to Leeds (both in the north of
England).

56
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 AC A, B. Friens MA

Telephone: 071 638 4129 Reg. No.: London 281395

Telex: 381215 Vat No: 85 1162788
Cable: UNIWAY
Fax: 071 638 5551

Mr N. 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
Ehe.

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?
Exercise 5. Study the request for 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 (1) to vour letter of 10 November, we can
(2) $75.50 for picking up and (3)
your(4) from vour address to the
(5) premises. This includes loading and unloading, plus
(6)

I f you fill out the Despatch Note(7) , and let us know 2 days
before you want the(8) made, our driver will hand you a
(9) when he calls to collect
the(10)
Yours sincerely,

Exercise 6. Translate into English

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.
7. Договор перевозки должен подтверждаться накладной, которая соответствует
принятому образцу.
8. Накладная служит подтверждением фактов заключения и условий договора
перевозки и приема груза перевозчиком.
9. Одним из пунктов накладной является сумма наложного платежа (оплата
наличными), оплачиваемого по доставке.
10. Накладная не должна выполнять функцию коносамента. Она составляется на
каждую отправку.

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 UNIT 9
FREIGHT FORWARDING
SHACKLES OF TRANSPORT LOGISTIC CHAIN
P arti

V o c a b u la r y
• Palletized cargo - паллетизированный груз, уложенный на поддоны
• То be built up on a ULD - закладывать в УЛД, формировать в УЛД
• Unit L oad Device - грузовой модуль, укрупненная грузовая единица
• Expertise - знания, опыт
• Transfer, transhipment - перевалка
• Container freight station - контейнерная товарная станция, склад формирования
(консолидации) контейнеров, расформирования (деконсолидации) контейнеров
• То forw ard - отправлять
• То track and trace cargo - отслеживать груз
• То adhere strictly to documentary credit terms - строго соблюдать условия
документарного аккредитива
• То expedite, to speed up - ускорять
• To procure the service - обеспечить обслуживание
• Ancillary documentation -служебная документация
• LCL(Less than Container Load)- контейнер содержит более одной
коносаментной партии и сформирован грузами нескольких отправителей
• FCL(Full Container Load) -полный контейнерный груз; контейнер содержит
груз одного отправителя
• LCL/LCL (LCL fo r delivery LCL) - контейнер загружается и разгружается
перевозчиком
• LCL/FCL (LCL fo r delivery FCL) - контейнер загружается перевозчиком,
разгружается получателем
• FCL/FCL (FCL fo r delivery FCL; door- to- door) - условие перевозки полностью
груженных контейнеров «от двери до двери», погрузка/выгрузка за счет
грузовладельца
• FCL/LCL (FCL fo r delivery LCL; door -to- pier) - условие перевозки контейнера
с учетом его полного использования одним грузоотправителем и выгрузки
перевозчиком для сдачи грузов различным получателям

Exercise 1. Read the text and answer the questions

An increasing importance is being placed upon the Freight Forwarder, as he takes
over many o f the functions o f the traditional shipowner/carrier yet retains interested in the
cargo.
F r e i g h t F o r w a r d e r is a firm specialising in the export and/or import of goods (by
sea, air, road or rail) on behalf o f merchants (in shipping documents the shipper can be
called so), private individuals. When a shipment is being arranged, the forwarder is the
exporter’s agent. When handling imports the forwarder is the consignee’s agent or’receiver’.
In its contractual relationships with the sea carrier, the forwarder is the shipper, since it’s the
party making the contract o f carriage with the carrier.

59
 The freight forwarder is employed in the liner trades (i.e. container, Ro-Ro and general
cargo). They are not necessary in other trades, w here the shipping procedures are different.
Many o f the larger exporting companies maintain an in-house shipping and
distribution department which negotiates contracts o f affreightment (COA) or carriage of
goods for the company with the shipping line that trades to the area o f the world where the
company’s goods are destined.
Traditionally, the freight forwarder filled the need for expertise, with their
knowledge o f export/import documentation and procedure, plus their wide experience in
dealing with shipping companies with regard to contracts and documents.
T h e fr e ig h t f o r w a r d e r c a n o ff e r s e r v ic e s t h a t c o m e u n d e r 4 d is t in c t h e a d in g s .
1. Purely as a shipper’s agent procuring transport and shipping services on behalf of
the exporter and under his direction;
2. As a forwarder offering a total expertise package to the exporter with regard to
routing and choice o f mode together with ancillary documentation and perhaps packing
service. With regard to transport he remains an agent for the exporter and bills o f lading are
made out in the shipper’s name and to the shipper’s account;
3. As a principal, usually multimodal transport operator, taking responsibility for the
goods irrespective o f who actually carries them. In many cases he may be the actual carrier
for at least part o f the transit. He issues the transport documents, combined bill o f lading;
4. As a specialist provider o f ancillary self-standing services, such as customs
clearance, warehousing, packing and port agency.
As freight forwarder provides for a transport-logistic scheme o f delivery, he’s called
a logistic service provider, or a transport manager.
His function and role can be compared with a travel agent’s job. People that want to
travel can either make all o f the arrangements themselves (book a flight, arrange
accommodation, rent a car, etc.) or contact a travel agency to take advantage o f their
professional expertise to find the lowest rates and travel accommodations.
A freight forwarder usually has a network o f 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.
T h is is a list o f th e m a in ta s k s o f a fr e ig h t fo r w a r d e r :
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 o f modem packing techniques
especially for the transport o f perishable or fragile goods. Efficient packing can reduce cost,
thereby increasing a client’s competitive edge.
3. The forwarder handles customs formalities fo r 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 o f 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 o f his daily
contacts with several o f these carriers, he can expedite deliveiy in case o f emergency.
6. He consolidates different shipments into one, which results in an optimal use o f the
available cargo space and competitive prices.

60
 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.
10. He arranges groupage or consolidation with other shippers’ goods destined for the
same place.
The groupage or consolidation is the grouping in one cargo unit o f the goods o f two
or more shippers, where all shipments are destined for the same place in the import country,
e.g. an inland container depot. A groupage container is known as an L C L c o ntainer (“ less
than container load”). Groupage is cheaper for the shipper, since LCL freight rates are
lower than F C L (“ full container load”) rates. Many freight forwarders and carriers offer
both LCL and FCL services for shippers. Usually groupage o f the cargo is carried out at a
container freight station or inland container depot, by a freight forwarder offering this
service.
BO LERO System
BOLERO stands for “Bill o f Lading Electronic Registry Organisation” and was
commercially launched in 1999. 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. It’s a project
of the EU to study feasibility o f electronic B/L. It’s a closed network and can only be used
by subscribers. 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 o f rules which all users o f the BOLERO System are
required to sign.
The backbone o f the BOLERO System 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 o f goods to be exchanged online.

1. What roles can a freight forwarder play?

2. What are a freight forwarder s relations with a shipper and an exporter?
3. Whatfield s should a freight forwarder be experienced in?
4. What problems does he advise on?
5. What documents does he deal with?
6. Why is the freight consolidated?
7. What is a groupage container?
8. Why is groupage cheaper fo r a shipper?
9. What is the function o f Bolero system?
10. How does it work?

61
Exercise 2. Comment on the follow ing issues

1. Name the factors the freight forwarder is guided with when planning transportation
o f 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 o f his client, who still bears all responsibility during
transportation.
3. The client will investigate transportation possibilities, compare them and find the
ideal combination o f price, travel time and reliability.
4. A freight forwarder has to be aware o f political changes.
5. He has to be informed about government regulations.
6. Riots or strikes going on at an airport are no concern o f the forwarder’s.
7. Carriers contact forwarders for transporting goods from departure point A to
destination point B.

Exercise 4. Match each item to its definition

1. Consignee A. The party who takes delivery o f the goods from the carrier at
destination port. It may be consignee himself or party acting as an
agent
2. An LCL shipment B. A company or a person who contracts with a carrier for the
carriage of goods by sea.
3. Shipper C. It’s the importer, but may employ a freight forwarder to handle
import formalities. If goods are damaged he is the party who
makes a claim
4. An FCL shipment D. A shipment which wouldn’t fill a container and could be
grouped in one cargo unit with other goods for the same place in
the import country
5. Receiver E. A shipment which doesn’t need consolidation (e.g. a container­
load o f Scotch whisky might be loaded into the container or trailer
at shipper’s premises)

1 2 3 4 5 6 7

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Exercise 5. 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 of Origin, Invoice, Commercial Invoice,
Container way bill. Match the definition and the term

DEFINITION NAME OF DOCUMENT

1. List of goods being sent. This repeats some of the
information on a bill o f lading, but is a separate document
2. List of goods or services that states how much must be
paid for them
3. B/L covering more than one means o f transport
4. Document that gives information about goods sent by
container, and states whether the buyer or seller is
responsible for insurance
5. Document that an insurance policy is written
6.Document completed by the exporter that gives
information about a consignment. It is used as delivery
note or receipt.
7. A stamp on commercial invoice, issued by the consulate
in the importing country which gives permission for goods
to be imported
8. A document that shows where goods were made
9. Document that gives information about goods sent by
air, and states whether the buyer or seller is responsible for
insurance
10. Shipping document that gives details of a consignment,
its destination, and the consignee. It entitles the consignee
to collect the goods on arrival
11. A document that will include the name and address of
the seller and buyer, the terms of delivery and payment and
a description of the goods being sold.

Exercise 6. Read the instruction to a forwarding agent andfill 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 (1)__________________ a consignment of 20 C2000 computers and make the
necessary (2)_________________________ for them to be(3)_____________________ to Mr Tanner, NZ
Busness Machines Pty, 100 South Street, Wellington, New Zealand?

Please (4)____________________ all the shipping (5) _____________________ and insurance, and send
us five copies o f the bill o f lading, three copies of the commercial invoice, and the
(6) ________________________ certificate. We will advise our customers o f (7)
______________________ ourselves.

Could you handle this a.s.a.p. ? Your charges may be sent to us in the usual way.

Yours sincerely, Neil Smih______________________________________________ ________________

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Exercise 7. Translate into English
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.

Part 2

• Corrosive - едкий
• H arm ful - вредный
• Poisonous - ядовитый
• Carton - ("большая) картонная коробка
• С а п - бидон
• Drum - вытянутая бочка
• Bale - кипа
• Р ай - ведро
• Barrel- бочка
• То dispense contents - распределить содержимое
• String, cord - веревка, жгут
• Sawdust - опилки
• Wood fibre - древесное волокно
• Refrigerant - охладитель
• То line with - обивать
• Crate —большой деревянный ящик, клеть
• Jar - банка
• Demijohn - большая оплетенная бутыль
• Igloo - авиационный контейнер
• A wide-body freighter - широкофюзеляжный самолет
• Wicker-wpyrbti. для плетения

Exercise 8. Read the text and answer the questions

P a c k in g
Packing refers not only to the materials used to prepare goods for transport, but also to
the operation o f putting goods into CNTRs. The packing must maintain the purity and
freshness o f 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.
T h e b a s ic m a t e r ia ls o f p a c k a g e s to d a y a r e :
paper, cellophane, steel, aluminium, glass, wood, textiles, and plastics.

64
 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; in 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 sending furniture, fruit, etc.
Liquids can be packed in various types o f CNTRs, such as jars, spray cans or
demijohns. The latter holds 10 gallons (1 gallon 4.55 litre (Br.); 3.78 litre (Am.)). 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.

M a r k in g
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 o f destination.
eg . K R X X
D urban Singapore
b) Any official mark registered by authorities
They are special marks demanded by the country of export or import (name of the
country of origin o f the goods, weights and dimensions, etc).
e g. FO R EIG N PRODUCE OF SOUTH AFRICA
Net weight 100 kg. Dimensions
Gross weight 125 kg. lm. x 1.5m. x 2.25 m.
Tare 25 kg.
c) 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 are main principal types o f marking?

65
Exercise 9. Match the following English warnings with their Russian equivalents

1. HANDLE WITH CARE A. ХРАНИТЬ В ПРОХЛАДНОМ МЕСТЕ

2. G L A S S -W IT H CARE B. БЕРЕЧЬ ОТ ВЛАГИ
3. FRAGILE C. ВЕРХНЯЯ ЧАСТЬ
4. USE NO HOOKS В. НЕ СКЛАДЫВАТЬ НА ПАЛУБЕ
5. TO BE KEPT COOL Е. ПОДНИМАТЬ С ЭТОГО КОНЦА
6. THIS SIDE UP Г ОСТОРОЖНО, ХРУПКИЙ ГРУЗ
7. DO N O T STOW ON THE DECK а о сторож но
8. KEEP DRY I. ОСТОРОЖНО, СТЕКЛО
9. LIFT HERE Г НЕ ПОЛЬЗОВАТЬСЯ КРЮ КАМ И
10. INFLAMMABLE К. ДЕРЖАТЬ ВДАЛИ ОТ
НАГРЕВАТЕЛЬНЫХ ПРИБОРОВ
11. STOW AWAY FROM HEAT К ОГНЕОПАСНО

Exercise 10. Choose the cargo to fit the following packing

Drum dry ice

Tube with a vaccine beer
Barrel a dog
Crate oil
Wicker basket marmalade
Jar cotton
Bale furniture

Exercise 11. Find the odd-one-out

1. corrosive, watertight, harmful, poisonous
2. pail, wood, can, carton
3. aluminium, plastics, bag, steel
4. hazard, liquid, solid, gas
5. melt, wrap, tie, tape

Exercise 12. Read the complaint to the carrier. Answer the questions.
Translate into your native language

Dear Sirs

Consignment note 671342158

The above consignment was delivered to our premises, at the above address, on 6
September. It consisted o f eight boxes o f red/white CDs, three o f which were badly
damaged.

We have contacted our suppliers, and they inform us that when the goods were
deposited at your depot they were in perfect condition. Therefore we assume that
damage occurred while the consignment was in your care. The boxes were marked

66
 FRAG ILE a nd K E E P AW A Y F R O M HEAT. However, the nature o f the damage to the
goods (the CDs were scratched, warped, or split) suggests that the consignm ent was
roughly handled a n d left near a heater.
We estimate the loss on invoice value to be US $500.00, and as the goods were sent
‘carrier’s r isk ’ we are claim ing compensation fo r that amount.
You will fin d a copy o f th e consignm ent note and invoice enclosed, and we will hold the
boxes fo r yo u r inspection.

Yours fa ith fu lly

P. Gerard
Senior M anager

1. What did the consignment consist of?

2. What condition were the goods in when delivered to the carrier’s depot?
3. How does M. Gerard think the damage was caused?
4. What compensation is he asking for?
5. Why does M. Gerard feel he has the right to claim compensation?
6. What documents are enclosed and why?

Exercise 13. Complete th e letter enquiring about a forw arding agent’s charges with the
correct prepositions. Translate into yo u r native language

Dear Sir,
You were reco m m en d ed_______ us Stellman Ltd., our associates,_________
whom yo u have operated as forw arding agents.

We are lo o k in g _____________ a reliable agent to handle our deliveries___________

Europe, taking c a re __________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 sen d _______ L ausanne
_______ road. C ould y o u let us have quotation, and i f it is competitive, we can assure
y o u _____________ fu r th e r business________the future.

Yours sincerely___________________________________________________________ __

Exercise 14. Compose the forw arding agent’s reply. P ut the phrases in the correct order;
add paragraphs, capitals a n d punctuation where necessary

Dear Sir,
1. our freig h t c h a rg e s /o f 10 N ovem ber/thank y o u / enquiring about/for yo u r fa x
2. fo r sh ip m en ts/ I enclose/ which includes all transport custom s and
documentation charges/ our ta riff list
3. are highly com petitive/I th in k / that these rates/you will fin d __________

67
 4. that we h a ve/ in handling fra g ile c o n sig n m e n ts/ in addition/'extensive
experience/I can confirm
5. a n d I will be very pleased/any fu r th e r questions/please co n ta ct m e/to h e lp /if you
have
6. to hearing/I look forw ard/from y o u

__________ Yours sincerely__________________________________________________________

E xercise 15. Translate fr o m R ussian into English

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 хищ ения.
4. Н а контейнерной товарной станции грузы консолидируются. Ваш груз будет
сгруппирован экспедитором с другими партиями грузов, следую щих в одном
направлении, и помещен в контейнер. Чтобы снизить транспортные издерж ки и
повысить эффективность перевозки, используются стандартизированные контейнеры.
5. У Вас мелкие партии груза, и Вам важно, чтобы они прибыли к адресату как
можно скорее.
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 опасны х
грузов.
9. Каждая упаковка должна иметь ясную и прочную маркировку, содержащую
имя и полный адрес отправителя и получателя.

68
 UNIT 10
INTERMODAL TRANSPORTATION
P a rti
Vocabulary

• Inland waterways transportation-перевозка на внутренних водных путях

• Inland transportation - внутренние наземные перевозки
• Drayage (haulage)- наземные перевозки
• Line-haul - магистральный
• D ouble-stacking- двухштабельная укладка груза
• A load unit- грузовая единица
• A node- узловой, грузовой пункт
• Propulsion system - система энергетического обеспечения
• Deregulation- прекращение регулирования
• Seamless network- однородная сеть
• То converge- объединяться, сходиться
• То reside in- быть присущим, свойственным
• A swap body- съемный кузов
• Semi-trailer - полуприцеп
• Data handling - обработка данных
• Processing and distribution system- система обработки и распределения
• Electronic D ata Interchange (EDI)- электронный обмен данными
• Unaccompanied delivery - без сопровождения
• A lorry - грузовой автомобиль
• Articulated vehicle - съемный прицеп
• Low-loader wagon - низкорамная платформа
• То соре with - справляться с ...
• То penetrate to interior markets- внедриться на внутренний рынок
• Feeder shipping - фидерное морское судоходство *
• “One-stop-shopping” - технология «одного окна» **

* Фидерные линии - линии, работающие по сборно-распределительному принципу: из крупных

базовых портов грузы развозятся мелкими партиями по близлежащим портам, и наоборот,
осуществляется подвоз грузов к такому порту для накопления и отправки на дальние расстояния.
Контейнеровозы и ролкеры, работающие на этих линиях носят название «фидеров».
** Технология работы «одного окна» - это концентрация спроса в руках транснациональной
корпорации и обеспечение удовлетворения такого спроса также одним предприятием -
производителем услуг, как правило, транснациональной транспортной корпорацией (такую
технологию называют также «аутсорсингом» - autsorsing).

Exercise 1. Read the text and answer the questions

Competition between the modes has tended to produce a transport system that is
segmented and unintegrated. Each mode has sought to exploit its own advantages in terms
of cost, service, reliability and safety.
Since the 1960s major efforts have been made to integrate separate transport systems
through intermodalism, which took place in several stages. This involves the use o f at least
two different modes in a trip f r o m o r i g i n t o d e s t i n a t i o n t h r o u g h a n i n t e r m o d a l t r a n s p o r t

69
chain. Interm odality enhances th e econom ic p erfo rm a n ce o f a transport chain by using
m odes in the m ost productive m anner. Thus, the line-haul econom ies o f rail may be
exploited for long distances, with the efficiencies o f trucks providing flexible local pick up
and delivery. Intermodalism evolved as a natural extension o f containerization and also the
transport operator seeing the need to develop a closer understanding with the cargo interests,
i.e., the m anufacturer or producer on the one side o f the transport chain and the importer or
trader on the other side.
With the deregulation and privatization trends begun in the 1980's, containerization,
which was already well established in the m aritim e sector, could spread inland. The
shipping lines were among the first to exploit the interm odal opportunities that deregulation
permitted. They could offer door-to-door rates to custom ers by integrating rail services and
local truck pick-up and delivery in a seam less network. To achieve this they leased trains,
managed rail terminals, and in some cases purchased trucking firms. In this way they could
serve customers across the country by offering door-to-door service from suppliers located
around the world. The move inland also led to some significant developm ents, m ost notably
the double-stacking o f containers on rail w agons (see the photo below). This produced
important competitive advantages for intermodal rail transport.

'In te rm o d a l tra n s p o rta tio n - the movements o f passengers or freight from one mode
of transport to another, commonly taking place at a terminal specifically designed for such a
purpose.
Thus, transportation systems having several modes can be considered from two
different conceptual perspectives:
In te rm o d a l T ra n s p o rta tio n N etw o rk . A logistically linked system uses two or more
ransport modes with a single rate. M odes are having common h a n d lin g characteristics ,
permitting freight (or people) to be transferred between modes during a movem ent between
in origin and a destination. For freight, it also implies that the cargo does not need to be
landled, ju st the load u n it such as a pa llet or a container.
M u ltim o d al T ra n s p o rta tio n N etw o rk . A set o f transport modes offers connections
between a set o f origins and destinations. Although intermodal transportation is possible, it
70
docs not necessarily occur. A multimodal transport network is thus a potential set of options
available for intermodalism.
The below scheme^ illustrate two alternatives to freight distribution. The first is a
conventional point-to-point m ultim odal netw ork where origins (A, B and C) are
independently linked to destinations (D, E and F). In this ease, two modes (for example
road and rail) are used. The second alternative involves the development of an integrated
intermodal tra n s p o rt netw ork. Traffic converges at two transshipment points, rail
terminals, where loads are consolidated. This can result in higher load factors and/or higher
transport frequency, especially between terminals. Under such circumstances, the efficiency
of such a network mainly resides in the transshipment capabilities o f transport terminals.

Intermodal freight transport involves the transportation o f freight in an intermodal

container or vehicle, using multiple modes o f transportation (rail, ship, and truck), without
any handling o f the freight itself when changing modes. The method reduces cargo
handling, and so improves security, reduces damages and losses, and allows freight to be
transported faster.
A t r a n s p o r t m o d e is a c o m b i n a t i o n o f t h e f o l l o w i n g :
1 ) T r a f f ic i n f r a s t r u c t u r e : traffic routes, networks, nodes (stations, bus terminals,
airport terminals), etc.
2) V e h i c l e s a n d c o n t a i n e r s : trucks, wagons, ships, aircraft and trains
3) A s t a t i o n a r y o r m o b i l e w o r k f o r c e
4) P r o p u l s i o n s y s t e m and power supply
The emergence o f intermodalism has been brought about in part by technology and
requires management units for freight such as containers, swap bodies. pallets or sem i­
trailers.
I he most important feature o f intermodalism is the provision o f a service with one
ticket (for passengers) or one bill o f lading (for freight). This has necessitated a revolution
in organization and information control. At the heart o f modern intermodalism there are
data handling, processing and distribution systems that are essential to ensure the safe,
reliable and cost- effective control of freight and passenger movements being transported by
several modes. Electronic D ata Interchange (EDI) is an evolving technology that is
helping companies and government agencies (customs documentation) cope with an
increasingly complex global transport system.

71
 Large integrated transport carriers provide door-to-door services. The limits of
intermodality are imposed by factors of space, time, form, pattern of the network, and the
type and characteristic of the vehicles and terminals.

In te rm o d a l Vehicles are:

R ail tra n s p o rt
The modem container cars also are specifically built as a small articulated "unit",
most commonly in components of three or five.
2) C o n ta in e r ships
Container ships are used to transport containers by sea. These vessels are custom-built
to hold containers. Some vessels can hold thousands o f containers. Their capacity is often
measured in TEU or FEU.
3 ) T r u c k in g
Trucking is frequently used to connect the "linehaul" sea and railsegments of a global
intermodal freight movement. This specialized trucking that runs between ports, rail
terminals, and inland shipping docks, is often called d r a y a g e , and is typically provided by
drayage companies or by the railroads.
A unique form o f intermodal unit has been developed in the rail industry, particularly
in the US. R o a d r a i l e r is essentially a road trailer that can also roll on rail trucks.
4) B arges
Barges utilise Ro-Ro vessels to transport freight on large inland waterways such as the
Rhine/Danube in Europe and the Mississippi River in the USA. Barge shipping offers a low
cost solution to inland distribution where navigable waterways penetrate to interior
markets. High labor costs and the slowness of loading planes, that require a very rapid
turnaround, made the industry very receptive to the concept o f a l o a d i n g u n i t o f s t a n d a r d
d im e n s io n .
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
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 “owe- stop-shopping”facilities on the other hand.

1. What is the reason fo r using different modes?

2. How did the maritime sector influence the development o f intermodalism?
3. What are the types o f transportation network?
4. What's the difference between transportation networks? Explain using 2 schemes.
5. What are the components o f a transport mode?
6. What are the examples o f different transport modes?
7. What's the main function o f EDI?
8. What are the most popular intermodal vehicles fo r a) sea and inland waterways;
b)Road transportation.
Exercise 2. Com ment on the follo w in g issues
1. Describe the largest ports o f the world (their layout, port facilities, cargo terminals,
types o f cargo which can be handled, etc).
2. Name the advantages o f intermodal and multimodal transportation in modem world
trade.
3. Describe the role and the use o f containers in transport network. Name their types.

Exercise 3. 3.1. R ea d the container company's reply to an enquiry. Answ er the questions.
Translate into yo u r native language

Dear M r Pike

Thank yo u fo r yo u r f a x o f I S Match.
The Europe sails fr o m Tilbury on March 26 and will arrive in H am burg on
March 28, which appears to suit y o u r schedule fo r delivery. Please note, however, that
the vessel closes fo r cargo on 24 March.
You will see fr o m our list o f tariffs that charges are calculated by cubic metre or
cubic kilogram a nd that we offer substantial rebates fo r regular shipments.
The m ost suitable container fo r y o u r consignment would be a half-height
container which is 2 0 yx 8 ' x 4* or, in metres 6.1.x 2.4 x 1.3. This can carry a payload
o f 18,300 kg. I t has a solid removable top, and will protect the m etal against all
elements.
I suggest that, as the consignm ent is to be loaded fro m lorry to ship and then
transferred again, y o u should use our combined transport bill. This would cover the
goods fro m p o in t o f acceptance to point o f delivery. I f yo u would like to go ahead on
this basis, please complete the attached export cargo shipping instructions a nd the
export cargo pa ckin g instructions and return them to us as soon as possible. A lthough
we accept door-to-door responsibility, we would advise yo u to take out an all-risk
insurance policy, and sen d a copy o f this and three copies o f the commercial invoice to
us.
The cargo should be m arked on at least two sides with a shipping m ark which
includes the destination port. This should correspond with the mark on yo u r shipping
documents.

I look fo rw a rd to receiving yo u r 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 o f container does Mr Muner recommend?
5. What sort o f liability will the shipping company accept?
6. Does the exporter need to insure the cargo?

73
Exercise 3.2. Compose an enquiry to the container company using the above mentioned
information.

Exercise 4. Read the text and find the words which have the similar meaning to the
following definitions
- Different from others;
- Crucial;
- To include smth. as a part o f a subject;
- In or under the sea and not fa r from the coast;
- Important;
- To be close to a particular number, amount or time;
- Relating to one or particular country, home;
- Variety o f smth.
- Cargo;
- Protection o f natural things to be destroyed or spoilt;
- To become bigger in amount, number, degree;
- Involving more than one nation, foreign.

P o r t s a n d s e r v ic e s i n t h e U n i t e d K i n g d o m
The ports sector is diverse, embracing a wide range o f activities that are critical to
many parts o f the UK economy. Ports are part o f the vital transport networks, which support
domestic and international trade. They, also embrace fishing, passenger, leisure, car ferry
operations and support for the offshore industry as well as the provision o f coastal defences,
conservation and environmental services. In total, well over 90% o f the U K ’s international
trade by volume (75% by value) moves through them. Freight movements through UK ports
have increased by 33% over the last 20 years and several UK ports rank amongst the top
European ports by freight volume.
The UK ports sector comprises ports, harbours, private terminals, stevedoring
companies and specialist labour supply organisations, in total around 500 companies
employing approximately 25,500 people.
(from “Maritime. Sea vision ”)

Exercise 5. Translate the article fro m Russian into E nglish

И нвести ци онн ы й п лан EC

Европейский союз одобрил инвестиционный план ( стоимостью 50 млрд евро) по
развитию транспорта, энергетики и цифровых сетей в Европе.
Фонд финансирования (Connecting Europe Facility) для модернизации
транспортной инфраструктуры в странах ЕС включает в себя проекты соединения 83
основных портов с автомобильными и железными дорогами. В настоящее время всего
35 портов Европы и 20 крупных аэропортов должным образом соединены с
национальными железными дорогами. Кроме того, узкие места пересечения границ
стали серьезным препятствием для эффективных мультимодальных перевозок.

74
 ЕС и Европейский инвестиционный банк изучают возможность привлечения
средств рынка капитала для финансирования данных проектов.
(from Lloyd’s List)

P art 2

Listening comprehension
Watch the video clip by the International Chamber of Shipping publicizing the shipping
industry.

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

B lood row goods freeze coast million assets marine

Liable fo o d h a lf low fo o t freight cost sale

Exercise 8. Listen to the text again. Complete the gaps in the transcript
The International Shipping Industry carries__________ o f world trade. It is the life
blood o f the global economy. There are aro u n d ______________________ merchant ships
____________ internationally, transporting every kind o f ____________ . Without shipping
intercontinental trade the _________ transport o f ______ materials and the import and
export o f affordable food and manufactured goods would simply not be possible. H alf the
world would _________ and the other half would _________ . Ships are technically
sophisticated high ________ assets that can cost hundreds o f millions o f dollars
______________ . Their safe operation a n d _____________ are crucial to the continual
health o f 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 o f more th a n ________________________ , which represents approximately 5%
of t h e _____________________________ economy. It is the availability, low cost and the
efficiency o f 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 o f over 150 different
nations and m anned 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 o f achieving success in shipping.
Put them in order.
- navigation rules _______
- UN role _______
- enforcement o f IMO conventions ____________
- global framework o f regulations _____ 1_____
- construction standards __________
- crew qualifications ___________

75
Exercise 10. Listen to the second extract o f this part and f ill 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 o f the sea means that ships are exposed to considerable physical
risk, _____________ ______________ o f the shipping industry and its
_______________________ performance are impressive. Serious maritime accidents have
more th a n ______________ in the last ten years. At the same time it’s the amount o f maritime
trade has a lm o s t__________________ . The quantity o f _______ ____________ is now
running at less than 10% o f the level in the early _______ , and carbon dioxide
__________________ from cargo ships are a fraction o f the equivalent figure for aircrafts.

Exercise 11. You are going to hear an extract about the worldfleet.
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 fa ll into a
number o f categories.

Types o f 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%.

3. Transporting crude oil from the Middle East to USA is h alf a cent per gallon.

4. Shipping a can o f beer from Australia to Europe costs about 10 cents.

5. Over three fourths o f world shipping tonnage is associated with energy and metal
industries.___________________________________________

Exercise 12. Listen to the second extract o f this part. Fill in the appropriate prepositions
As w e’ve seen shipping is almost the safest and most environmentally friendly forms
o f commercial transport. It was ______________ the very first industries to adopt the

76
international safety standards, which have been widely implemented________________ the
International Maritime Organisation.
______ recent years the world has seen a major sh ift__________ industrial production
in Asia, this has in turn brought significant improvement______ global standards o f living.
It is only the international shipping industry and the low costs and the efficiency_______
moving g o o d s______ sea that has made this possible. Shipping is indeed the life blood o f
global economy.
 UNIT 11
CLASSIFICATION OF SHIPS.
KINDS OF CARGOES
Vocabulary
• Bulk cargoes - массовые грузы
• Crude oil carrier - судно для перевозки сырой нефти
• Product carrier - судно для перевозки нефтепродуктов
• Gas carrier - судно для перевозки сжиженных газов
• Clean tanker - «светлый» танкер
• Dirty tanker - «темный» танкер
• Petrol - бензин
• Petroleum - нефть
• Nafta - лигроин
• Jet fu e l - топливо для реактивных двигателей
• Gazoil - газолин, дизтопливо
• Fuel oil - мазут флотский
• Low sulfur - мазут сернистый
• LSWR - восковидные осадки
• CBFS - сажевые кормовые прибавки
• MR Product carrier - судно для перевозки нефтепродуктов среднего размера
• LR product carrier - океанское судно для перевозки нефтепродуктов
• LNG (Liquefied Natural Gas) - сжиженный природный газ
• LPG (Liquefied Petroleum Gas) - сжиженный нефтяной газ
• Bauxite - бокситы
• Alumina - глинозем
• Handysize - ходовой размер
• Chilled meat - охлажденное мясо
• Chilled mercandize - замороженные и охлажденные продукты
• Loose cargo - груз россыпью
• Palletized cargo - пакетированный груз, перевозимый на специальных
поддонах
• Pre-sling cargo- груз в стропах
• Multipurpose ship - многоцелевое судно
• Awkward cargo - негабаритный груз
• Heavy cargo - тяжеловесное судно
• Rolling cargo - колесный груз
• Ro-Pax - грузопассажирские суда
• Ferry - паром
• Cargo handling gear - грузовое устройство

Exercise 1. Read the text and answer the questions

Cargoes transported by sea are divided into bulk cargoes and other cargoes. Bulk
cargoes are subdivided into liquid cargoes and d ry ones.

78
 Ships which can y liquid cargoes may be: crude oil carriers, product carriers,
chemical and gas carriers.
C rude oil c a rrie rs are o f the following types:
1. Panam ax (55 - 70,000 D W T) - which dimensions allow to pass through the Panama
Canal;
2. A fram ax (75 - 120, 000 D W T) which had to round Africa from the ports o f the
Persian G ulf before the Suez Canal reconstruction;
3. Suezm ax (120 -200,000 D W T) which dimensions allow them to pass through the
Suez Canal after its reconstruction;
4. VLCC - Very Large Crude Carrier (200 - 320,000 DWT);
5. U L C C - Ultra Large Crude Carrier (320, 000 D W T -m o re ).

Pro d u ct c a rrie rs may be o f various types due to the kinds o f liquids they carry: clean
tankers and dirty tankers. Clean tankers carry petrol, nafta, kerosene, je t fuel, gazoil.
Dirty tankers carry fu e l oil, low sulfur, LSWR and CBFS. In case o f necessity after
thorough cleaning o f 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 o f them are o f 25-40,000
tons. The product carriers for the above consignments are called H andy (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 c a rrie rs are called LNG - Liquefied Natural gas and LPG - Liquefied Petroleum
gas.
D ry b u lk include iron ore, coal, grain, phosphates, timber, bauxite/alumina. They are
transported by bulk carriers. The latter are grouped as follows:

H andy size (10,000 - 34,999 dwt);

Handymax (35,000 - 49,999 dwt);
Panam ax (50,000 - 79,999 dwt);
Capesize (80,000 -1 9 9 ,0 0 0 dwt).

The vessels carrying both liquid cargoes and dry bulk are called com bination
carriers/combi/combiships. They may be ore/oil carrier; ore/bulk/oil - OBO carrier,
product/oil/bulk/ore - carrier - PBO BO ship.
There are other types o f 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 fis h ’, chilled merchandize ships; banana
ships, fruit/vegetable ships.
3. General cargoes include loose cargoes; palletized cargo; pre-sling cargo. These
cargoes are carried by m ultipurpose ships and general cargo vessels.

79
 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.
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. H e a v y li f t s h ip s
2. O B O
3 . C le a n ta n k e r s
4. R o -R o
5. G a s c a r r ie r
6 . D ir t y ta n k e r
7 . F r i g s h ip
8 . B u lk c a r r ie r
A . F u e l o il
B . T r u c k , lo r r ie s
C . A lu m in a / tim b e r
D . O r e /b u lk /o il
E . J e t fu e l, n a f t a
F. C h ille d m e r c h a n d iz e
G LPG
H . D e r e lic t s a n d w r e c k s

Exercise 3. M ake words fro m the jum bled letters and match them with the definitions
below

A B IM R T E _______________________________ _

B D IL Q IU

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

D UPRETOEM L ______________________________________

E EPH A STO SPH ______________________________________

F IB E A X U T ______________________________________

G M IS T H N P E ______________________________________

1. Things for sale, goods

2. A load o f 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 o f various forms of a salt, widely used in industry

Exercise 4. Fill in the gaps with a suitable word

1. The largest type o f 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 _______________ .

80
 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 with _________ —__ ______________ g ear-
7. Automobile carriers can carry._____________ »________________ »__________ .

Exercise 5. Complete the table to summarize the information

Types o f cargo Examples Type o f ship

Liquid bulk
Heavy cargo
Dry bulk
Containerized
Refrigerated
General
Rolling
 UNIT 12
INCOTERMS
Vocabulary
• Place (port) o f destination - порт назначения
• To amend- внести поправку
• To reduce the risk - уменьшить (снизить) риск
• Implementation o f the contract o f sale - выполнение договора купли-продажи
• Transfer o f ownership - переход собственности
• Exemption from liability - исключение из сферы ответственности
• Duties and taxes - пошлины и налоги
• Customs clearance costs - стоимость таможенной очистки
• Dispatch - отправка
• Shipper (consignor) - грузоотправитель
• Carrier - перевозчик, транспортное агентство
• Consignee - грузополучатель
• Consignment - партия товара
• Port o f shipment - порт отгрузки, порт отправления груза
• Freight charges - расходы по фрахту
• Over the ship's rail - через поручни судна
• FCA -франко-перевозчик£М Л-алг^й^к а р ^ н л а
• DAT - поставка на терминале ^
• D D P - поставка с оплатой пошлины solvency н-^споссЬ ко ель
• DAP - поставка в пункте -&0L, Ї М - Ы,1^ Жс Лю^ е о ц а !Л,2 с
• E x W -франко-завод * 4-е e leu ^ -/оЯ &аи,ад4.£- пС$С1ц> о> <? Ci'.'JX\ц.„,<г f.
• FAS - франко вдоль борта судна 4
• FOB - свободно на борт • 4о g а с Iо к и л сми^-£ s о d - - ю 3.саъ и ск и у&иА тс
• CIF- стоимость, страхование, фрахт
• CFR - стоимость и фрахт . IС U"cJLua Хои т ег* и г. р
• C IP- фрахт/перевозка и страхование оплачены до • VAT- value a d d -ІоИНЙЙ
• CPT - фрахт/перевозка оплачены до n .. , Л ,
• Ш , - Є е £ £ 4Vi с и с о М а і и « * load * F c L r ^ u K c o u d a fu « « ЬЫ
Exercise 1. Read the text and answer the questions
Goods are most often carried by sea as a result o f a sales contract (or sale of goods
contract) made between the seller and buyer. The contract o f carriage, which is separate,
M e t t ü t as a result o f this sales contract. There is a number o f persons who are involved
in transportation by sea.
Contracts for the sale o f goods usually include provisions covering 3 im portant
p o in t s :
a) the time or circumstances o f the ^dS ss S i z *o ftitte ^(ownership) o f the
goods from seller to buyer;
b) the time when paym ent becomes due;
c) the time when the risk (o f loss or damage) passes from seller to buyer.
These points are normally addressed in international sale o f goods contracts by
incorporation o f one o f a set o f mutually-agreed standard trade terms nam ed INCOTERMS.
Incoterms are a set o f international rules for the interpretation o f the most commonly

82
used trade terms. There are 11 main terms and several secondary terms. These denote the
points at which shipper, carrier and consignee risk and responsibility start and end.
This set o f international rules was fn^published in 1936 m^W Q JT E R M S
1936’ by the International Chamber o f Commerce. Incoterms are a ^ ^ ^ i eveiyTO years.
They were last amended in 2010 and came into force on the 1st January 2011. Four
incoterms (DDU поставка без оплаты пошлины, DAF поставка до границы, DEQ
поставка с пристани, DES поставка с судна) were substituted by two new terms DAT
(поставка на терминале) and DAP (поставка в пункте) which can be used as
intermodal terms.
Incoterms are r&ffignizfcd globally by cffiicts^and other au t{io n tie|^ ^^u e^jy , parties
to acontract are und ^ f e To f the different trading practices in their respecfi^ ^ o im ^ e s . This
knowledge can lead to misunderstanding and disputes between customer and
supplier. The incorporation o f Incoterms in international sales reduces the risk.
The ^ ^ ^ o fT n c o te r m s is limited to matters, relating to the rights and obligations o f
the parties to the contract o f sale with respect to the delivery o f 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 o f 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 o f 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 o f sale.
From the top (ExW) to the bottom (DDP) in the table, the seller gathers more
responsibility and the pint o f transfer o f property (i.e. the right o f 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. Export
and import customs formalities are buyer’s liability
Seller gives the goods to the carrier (airline, shipping company, freight
forwarder) who is named by the buyer.
The seller will pay all the costs up to this point, including export
FCA Free Carrier
formalities and licenses. From this point the buyer takes the risks for
the goods and transit. Export customs formalities are seller’s liability
while import customs formalities are buyer’s.
Delivery occurs alongside the ship named by the buyer at the named
port o f shipment. Buyer has the expense o f loading. The seller pays
Free costs up to and including delivery alongside the ship, including all
FAS Alongside documentation. The goods and transit risks are the buyer’s when the
Ship goods are delivered within the period stated in the contract of sale.
Export customs formalities are seller’s liability while import customs
formalities are buyer’s.

83
 Delivery takes place when goods are on board the named ship at the
buyer’s named port. Seller pays all costs of loading. The buyer’s risks
Free On
FOB for the goods and transit begin once the goods have been put over-the
Board
ship’rrait. Export customs formalities are seller’s liability while import
customs formalities are buyer’s.
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
to the named port of destination. He provides the buyer with the
Cost and
CFR transport documentation showing freight paid to that point. The goods
Freight
and transit risks become the b u y er’s when the goods have gone over
the ship’s rail at the port of shipment. Export customs formalities are
seller’s liability while import customs formalities are buyer’s.
Cost, Delivery occurs as in CFR and the risks are the same, but the seller
CIF Insurance, pays cargo insurance. Export customs formalities are seller’s liability
Freight while import customs formalities are buyer’s.
Delivery occurs when goods are given to the carrier (if more than one,
the first carrier, or a freight forwarder). The seller pays the costs of
Carriage Paid
CPT delivery to the named place and the b u y er’s risks start from there.
To
Export customs formalities are seller’s liability while import customs
formalities are buyer’s.
Delivery occurs as in CPT with the b u y er’s risks being the same. The
Carriage and
only change is the exporter pays the cost o f cargo insurance. Export
CIP Insurance
customs formalities are seller’s liability while import customs
Paid To
formalities are buyer’s.
Delivery occurs when goods are delivered at the terminal. The buyer
gets the goods at the terminal, cleared for export, but not cleared for
Delivered At import.
DAT
Terminal The seller pays all the costs to this point, but pays for unloading or
import clearing charges. Export customs formalities are seller’s
liability while import customs formalities are buyer’s.
Delivery occurs when goods are delivered at the point (place) named by
the buyer. Buyer gets goods at the named port. He then assumes all
Delivered At
DAP risks, but the seller pays all costs to that point, but not unloading or
Point
import clearance. Export customs formalities are seller’s liability while
import customs formalities are buyer’s.
Buyer gets the goods at the named place in the importing country and
Delivered takes all the risks thereafter. The seller pays all costs to this point
DDP
Duty Paid including duties and taxes. Export and import customs formalities are
seller’s liability

T e r m s in it a lic s a r e fo r m a r it i m e t r a n s p o r t o n ly . T h e o t h e r t e r m s a p p l y to a l l
tr a n sp o rt m od es1

11 INCOTERMS are defined, which can be arranged into 4 groups: E, F, C, D

according to the seller’s basic obligations as follows:
GROUP E - where the goods are to be made available to the buyer at the seller’s
premises; seller’s obligations are limited by passing the goods into the buyer’s possession;
GROUP F - where the seller must deliver the goods to a carrier appointed by the
buyer; seller’s obligations are limited by the dispatch o f the goods;
GROUP C - where the seller must contract for the carriage o f the goods without
bearing the risk of loss or damage to the goods or additional costs following shipment;

84
 G R O U P D - w h e re th e se lle r h as to b e a r all co sts a n d risk s req u ired to b rin g th e g oods
to their d e stination.
IN C O T E R M S can b e fu rth e r g ro u p e d in to 2 b a sic cate g o rie s: term s su itab le fo r u se in
contracts in v o lv in g water transport, a n d term s s u ita b le fo r all transport modes.

FOR SEA TRANSPORT FOR ALL TRANSPORT

GROUP TERM TYPE
ONLY MODES
E Departure term ExW (Ex Works)
Shipment term,
FAS (Free Alongside Ship)
F main carriage FCA (Free Carrier)
FOB (Free on Board)
unpaid
Shipment term, CPT (Carriage Paid to)
C CFR (Cost and Freight) CIP (Carriage and Insurance
main carriage
CIF(Cost, Insurance, Freight)
paid Paid to)
DAT (Delivered at Terminal)
D Delivery term DAP (Delivered at Point)
DDP (Delivered Duty Paid)

1. Why is it so important to use Incoterms?

2. When was the set o f Incoterms first published?
3. What do Incoterms deal with?
4. Who has to recognize Incoterms?
5. What can lack o f knowledge o f the Incoterms lead to?
6. What type o f contracts is usually required to perform an international sale
transaction?
7. What are the principles o f Incoterms classification?
8. What are the new amendments o f 2010?
9. What is the difference between Incoterm groups?

Exercise 2. Fill in the table using the following scheme

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

____ 1rou3p0rt Лшпгажоpaid_____ ^
| I
CFR-------------------------------- *1

85
 In c o te r m s S e l l e r ’s o b l i g a t i o n s B u y e r ’s o b l i g a t i o n s T r a n s fe r o f r is k s '^

CFR

C IF

FAS

FCA

At the warehouse when

Packs, prepares the goods Takes all risks. Pays seller passes the goods
EXW for dispatch from his export and import duties into the possession of the
factory/warehouse and taxes buyer

DAP

DDP

FOB

DAT

CPT

C IP

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

INCOTERMS RUSSIAN EXPLANATION

А. Товар предоставляется в распоряжение покупателя неразгруженным с
1. FCA
прибывшего транспортного средства на терминале.
В. Продавец выполнил поставку, когда товар перешел через поручни судна в
2. DAT названном порту отгрузки. Продавец обязан провести таможенную очистку
товара для экспорта. С этого момента все расходы несет покупатель
С. Продавец выполнил поставку, когда товар размещен вдоль борта судна на
причале или на лихтерах в указанном порту отгрузки. Продавец обязан
3. CIP
провести таможенную очистку товара для экспорта. С этого момента все
расходы несет покупатель
D. Продавец выполнил поставку, когда товар перешел через поручни судна в
названном порту отгрузки. Продавец оплачивает расходы, фрахт,
необходимые для доставки товара в указанный порт назначения. Риски или
4. FAS
повреждения товара и любые дополнительные расходы после отгрузки
товара переходят на покупателя. Продавец обязан приобрести страховку в
пользу покупателя против риска потери и повреждения.
Е. Продавец доставит прошедший таможенную очистку товар указанному
покупателем перевозчику до названного места. Выбор места поставки
5. FOB
влияет на обязательства по погрузке/разгрузке товара. Если поставка в
помещении продавца, то продавец ответственен за отгрузку. _

86
 Р. Продавец доставит товар названному им перевозчику, он обязан оплатить
расходы, связанные с перевозкой товара до названного пункта назначения и
6. CIF обеспечить страхованием от рисков потери и повреждения во время
перевозки в пользу покупателя. Покупатель берет на себя все риски до
доставки._______________________________________

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

eontract' -place *001 deliver pose -dear-

specify ^obtain cariyou t -transferl,

F O B .... N amed p o rt o f shipm ent

The seller is considered to have(l) ___________ his obligations as the
goods(2) r{nodeA for export have been (3) Aol',„rjR*s(______ on board ship in the
named port o f shipment. Risks o f loss or damage to the eoods(4) tn t? tC j?A from
seller to the buyer when the goods have(5) o ________the ship’s rail.
The buyer must (6) ___________ at his own risk and expense import
license or other official authorization,(7) g p ecT ^ __________ where applicable all
customs formalities, pay all duties, taxes and charges. He mush8) at his
expense for the carriage o f the goods. He must (9) n fija S h ________ the name o f the ship,
date or period of delivery, point within die port where the goods should be
(10) c-fe e . pA to the carrier.

Exercise 5. Complete the obligations o f seller and buyer (CIF and FOB) using the
following English equivalents
■atrown^expens^ -proofcqfdeHyery- ‘dutiesiandttaxes^ -providegoods- pay*eost
advise beaprisk-ofloss- £88P&fpre^hipmentexpensesr obtain- offimalfrerttiission
-^etivckzgoods exportilicenee gfognotiee -assisUWith -*poft?ofiloadihg
ap^g& insum nce' -Jn&eeordanG&with

FOB - free on board

Seller’s obligations
\.(обеспечить товар) according to
contract
2. Assist buyer to obtain necessary export
licence
3. (dacma^hb^moeapbi) on board named
vessel at named p o rt« ,
4. (Hecnitt отёетственностъ за риск
потери) or damage until time o f delivery
on ship
5. Pay all costs until delivery on ship
6. (Обобщить) that goods have been
delivered to ship
7. (feetidfaumb) buyer of delivery o f goods
in agreed manner
Buyer’s obligations
1. Pay the price
2. (no^H um i^$ициШ зкое'^с8решение)
and license for export/import
3. Arrange for shipment (за свой счет)
оЛ <?и/й w yehse
4. Take delivery at named port
5. Bear risk o f loss or damage after
delivery at ship side
6. Pay all costs after delivery including
duties and taxes
7. Give seller adequate notice o f ship and
(порту погрузки) р^яА o^f 1о 0 cl ?v\j

87
_____ yLi-'.i---- : - v —----------------------------------- --- ---------- _ -n ,7y ([ 1■
- ____________
| 8. (оплатить расходы) o f packaging, 8. Accept (dokcaameAbcmeo fiocmaem)
i checking and marking
| 9. Assist with obtaining import licenses and 9. Pay all costs relating to import licenses,
! insurance if necessaiy etc.

For example, when goods are sold “FOB Liverpool” the seller bears all costs and risks
until the goods have passed the ship’s rail at the loading port Liverpool. He must obtain a
B/L and other necessary documents and send them to the buyer. The buyer must charter a
ship or reserve the necessary space on a ship and give the seller details of the ship, the
loading berth and loading dates. He bears all costs and risks after the goods pass the ship’s
rail at the loading port Liverpool. He must pay the seller’s expenses for obtaining the
documentation.
T h e m a in b e n e f i t t o t h e b u y e r w h e n h e b u y s o n a F O B b a s is : he can sell the goods
once he has received the documents (which he should soon after loading). The goods may
therefore be sold while on the voyage, which may be essential in the case o f oil, grain and
other bulk commodities traded on international market.

C I F - c o s t, in s u r a n c e , fr e ig h t
Seller’s obligations B uyer’s obligations
1. Provide goods ( в ЪНШвШстШи 1. Pay the price
c) contract
2. Obtain necessary фаЗреишнйе'ка 2. Obtain any import license.
экспорт)
3. Arrange at own expenses for shipment of 3. Take delivery at named port
goods to named port. (застрахобд1пь)оf
goods
4. Deliver goods on board vessel at named 4. Bear the risk o f loss or damage after
port delivery at port o f shipment
5. Bear risk o f loss or damage until delivery 5. Pay all costs after delivery including
on board the vessel (nou& ^tm u налоги)
6. Pay all costs until delivery 6. Give seller adequate notice o f time and
port o f loading
7. Give buyer adequate notice that goods 7. Accept proof o f delivery
have been delivered
8. Pay costs o f packaging, checking and 8. Pay (cmoMto^mb 'раасобЬ^ВЬ^
marking. ( отправки груза)
9. (77aM04t>j) obtaming import licenses and 9. Pay all costs relating to import licenses,
insurance if necessary etc.

For example, when goods are sold “CIF Kobe” the seller must pay the costs of the
goods and the insurance and freight to Kobe. The buyer must pay all costs, including duty,
after delivery on board the ship at Kobe.
T h e m a i n b e n e f i t o f a C I F c o n t r a c t : CIF allows the sale o f goods by the sale of the
documents, and is therefore the preferred trade term where the documentaiy credit system is
used. The banks involved can obtain security for their credit advance by holding the
documents that represent the goods.

88
Exercise 6. Learn different types of FOB and CIF. Translate the definitions from Russian
into English

FOB, stowed free on board andfree 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 ‘Free in stowage and trimming;
ship’s/charterer’s account’ Судно свободно от расходов по погрузке, но укладка и
штивка за счет судовладельца/фрахтователя.

FOB liner terms - FOB линейные условия

Ему соответствует условие ‘Free in liner terms’ Судно fсвободно на линейных
условиях - расходы по оплате погрузочно-разгрузочных работ несет перевозчик, они
компенсируются грузополучателем за счет повышенной фрахтовой ставки.
/
CIF Free Out (FO)
Расходы по выгрузке несет; покупатель, судовладелец освобожден от этих
расходов, поскольку продавец фрахтовал его на условии ‘Free discharge (FD) Условие
FIOS (free in and out and stowage) освобождает судовладельца не только от расходов по
выгрузке,' но также от расходов по погрузке, укладке и штивке.

CIF Liner terms

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

Exercise 6. Which incoterm was used in each case?

1. When we imported T-Shirts from the US, we only had to organize transportation -
the Co in NY did eveiything else. EX \J -
2. We offered our customer in Argentina very favourable ternis of delivery; he only
had to pay duty. QAP/DDP
3. I arranged for the goods to be sent as far as the terminal; after that, it was up to the
importer to do everything else. 0 A T
4. We didn’t have to lift a finger - the exporter did everything. DO P
^ We had to arrange insurance as well as paying to transport the last load of goods we
imported. CjT / c f R
6. I sent the importer the necessary information about the carriage charges he had to
pay, and he organized insurance and transportation himself. C IF
7. I paid for the goods to be transported to the docks at Dover. Afterwards they became
the buyer’s responsibility. PAP
8. I paid all costs involved in getting the goods to Portugal, but left the costs of
unloading to the importer. 0 AP
9. I paid all the costs involved in getting the goods to Brazil, but the buyer took over
the risk from the time the goods were loaded onto the ship in London. C l F

89
 10. I paid for the goods to be transported to Liverpool and loaded onto the ship but
that was all. FOlb
11. I 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. CFR
12. The importer only had to pay for the goods to be transported from Rotterdam to
his warehouse. I paid for everything else. D D P
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 UNIT 13
CH ARTERING (GENERAL)
C ontract between shipowner and charterer

Vocabulary
• Contract for carriage- контракт на перевозку
• Contract for /i/Ve-контракт найма
• Соилесм/1уе-1юслсдователы1ый
• Cargo capacity- грузовместимость
• Subject to agreed restrictions - подлежащий договорным ограничениям
• Manning -укомплектование личным составом
• Repair and maintenance -ремонт и техническое обслуживание
• Store - снабжение, предметы снабжения запас
• Hull and machinery шлмгаисе-страхование корпуса и машинного оборудования
• Cargo-handling expenses-расходы на грузовые операции
• Pilotage - лоцманская проводка
• Towage - буксировка
• Stowing - укладка; размещение груза
• Trimming- дифферентовка; распределение груза в трюме
• Funnel - дымовая труба
• Long-term vehicle lease contract - долгосрочный договор об аренде
транспортного средства
• Expiry o f the charter - истечение срока чартера
• Istallments - оплата в рассрочку
• At the complete disposal - в полном распоряжении
• Capital costs - капитальные затраты; затраты основного капитала
• Insurance premium - страховая премия
• Amalgamation - объединение; слияние
• То demise - сдавать в аренду
• Demise charter-party - договор фрахтования судна без экипажа
• Box form - боксовая форма чартера

Exercise I. Read the text and answer the questions

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:
1. contracts for carriage of specified quantities of cargo in specified vessels between
specified ports (i.e. voyage charters); and
2. contracts for hire of specified vessels, including time charters; bareboat charters
(also known as “demise charters”).

Nature of a voyage charter Qev>Сои

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

91 lA'MCRD^ CHI' ОМ?£rl i(Oh - £jjo&«p-CHM£>crb

hire of a taxi for a single journey, or for a series o f several consecutive journeys in the case
o f a consecutive voyage charter).
The SHIPOWNER basically agrees that he will p r e s e n t t h e n a m e d v e s s e l s for loading
at the agreed place within an agreed period o f tim e and following loading (responsibility for
which will be as agreed between the parties), will carry the cargo to the agreed place, where
he will d e l i v e r t h e c a r g o .
The CHARTERER, who may be the cargo ow ner or may be chartering for the account
o f another party such as the shipper or the receiver, agrees to provide for loading, within the
agreed period o f time, the agreed quality o f the agreed commodity, t o p a y the agreed
amount o f freight, and take delivery o f the cargo at the destination place. In effect the
charterers hire the cargo capacity o f the vessel, and not the entire vessel, and to this extent a
voyage charter agreement can be considered as the maritime equivalent o f a taxi hire
agreement. (Control o f 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 p a y 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. 20 Station Road, Brighton) (e.g. "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 costs, with exception o f loading and discharge
costs where terms are "free in and out" (FIO)
Freight to be paid on completion o f voyage
! Hire charge to be paid on completion of journey
(before delivery o f cargo)
A/PEx'-1! y pti 0
({u c-< ey clia pfc
N a tu r e o f a tim e c h a r te r
A time charter is a contract for the hire o f a named, vessel for a specified period of
time. It may be thought o f as equivalent to the hire o f a chauffeur-driven car (the ship’s crew
being ‘‘the chauffeur”). The charterers agree to hire from the shipow ner a named vessel, of
specified technical characteristics, for an agreed period o f time, for the charterers’s purposes
subject to agreed restrictions.. iV e hire period may be the duration o f one voyage Q'a 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 m achinery 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 o f 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.

92
 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 o f a dry cargo ship. Time charterers are normally allowed to fly their
own house fla g and, at their own expense, paint their own colours on the funnel and/or
sides.

Chauffeur-driven car hire agreement Time charter agreement

A greem ent for hire
O f specified vehicle (e.g. R olls-R oyce Silver
C loud)
For specified purposes (e.g. w edding)
For agreed duration (e.g. 24 hours)
C om m encing at agreed tim e and place
Ending at agreed tim e and place
Vehicle ow ner to pay all running costs (e.g.
m aintenance, M O T tests, road tax, insurance,
chauffeur's w ages)
H irer to pay all jou rn e y costs during hire period
(e.g. fuel, bridge tolls, parking fees)
Hire paym ents to be m ade at specified intervals
in advance (e.g. monthly)
A greem ent for hire
O f specified vessel (e.g. m.v. "Carrym uch")
For specified purposes (e.g. to carry any non-
excluded cargoes)
For agreed duration (e.g. 12 m onths}
Com m encing at agreed tim e and place
Ending at agreed tim e and place
Vessel ow ner to pay all running costs (e.g.
m aintenance, surveys, lubricating oil, crew
w ages)
Charterers to pay all voyage costs during hire
period (e.g. bunker fuel, canal and port dues,
loading and discharge costs)
Hire paym ents to be m ade at specified
intervals in advance (e.g. monthlv)

N a tu re o f a b a reb o a t ch a rter 7
A bareboat charter (sometimes called a charter by demise or demise. chatter) is a
contract for the hire o f a vessel for an agreed period during which the charterers acquire
most of the rights o f the owners. It may be thought o f as the marine equivalent of a long-:
term;ydhicleJeasecontract, li is most usually used on the Barecon 89 charter party form.
It’s used by owners such as b a n k s a n d f i n a n c e h o u s e s who are not prepared to
operate or manage ships themselves.
It’s often fiingedfo a m a n a g e m e n t a g r e e m e n t (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 (he charter period).
Hire payments may include installments^ ‘ o f the purchase price, and transfer of
ownership may follow the fin a f installment.
In essence the vessel owners put the vessel (without any crew) at the complete
disposal o f 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.
“ T h e B a r e c o n A ” form, under which the owners bear responsibility for insurance
premiums, was designed for short-period chartering (e.g. the summer hire o f a passenger
vessel).
“ T h e B a r e c o n B ” form was designed as a long-period financial type o f contract,
mainly for newbuildings although it can be modified for second-hand tonnage. The
charterers are responsible for insurance premiums.
“ B a r e c o n 89” is an amalgamation o f the “Barecon A” and “Barecon B” forms
designed to reflect the growing use o f bareboat charter registration, (see annex 8)

93
 Vehicle lease agreement
Agreement for hire
Of specified vehicle (e.g. Jaguar XJS)
For agreed duration (e.g. 12 months)
Commencing at agreed time and place
Ending at agreed time and place
Vehicle owner to pay capital costs (e.g. to car
maker)
Hirer to pay all other costs during hire period
Hire payments to be made at specified intervals in
advance (e.g. monthly)
B areboat c h a rte r agreem ent
Agreement for hire
O f specified vessel (e.g. m.v. "Carrymuch")
For agreed duration (e.g. 10 years)
Commencing at agreed time and place
Ending at agreed time and place
Vessel owner to pay capital costs (e.g. to
shipbuilder)
Charterers to pay all other costs during hire
period
Hire payments to be made at specified intervals
in advance (e.g. monthly)

T he “ G encon” u n iv ersal established by B IM C O 1994 is used in geographical

directions to transport the cargoes in case there are no requirem ents to conclude specific
charter-parties (see annex 9).
It’s useful to consider certain term inology it contains to clearly understand the
provisions o f the Contract o f Transportation by Sea as w ell as th e above m entioned specific
charter-parties.
PO R T is an area w ithin w hich ships are loaded w ith an d /o r discharged o f cargo and
includes the usual places w here the ships w ait for their turn, no m atter th e distance from the
area.
SAFE P O R T is a port w hich during the relevant perio d o f tim e the ship can reach,
enter, remain at and depart from w ithout being exposed to danger w h ich c an ’t be avoided by
good navigation and seamanship.

P o rts m ay be d efin ed as follows:

L O A D IN G P O R T ]
P O R T O F SH IP M E N T ^ Порт погрузки, порт от правки
P O R T O F D EPA R TU R E J

P O R T O F D ISC H A R G E
j* Порт выгрузки, порт назначения
P O R T O F D ESTIN A TIO N

P O R T O F T R A N S S H IP M E N T 1
Порт перевалки, т ранзит ны й порт
T R A N S IT P O R T J
R E G IS T E R P O R T Порт регист рации

PO R T O F R EFU G E П орт-убеж ище, порт вы нуж денного захода

T hey a re su b d iv id ed in to :

BASE P O R T Базовый порт, обязат ельны й порт захода

O P T IO N A L P O R T Ф акульт ат ивный порт

94
 OUTPORT Порт, в котором грузы доставляются с перевалкой в
базовом порту

AVANPORT, O U T E R P O R T Аванпорт, находящийся на более глубоком месте, чем

основной

IN TER M ED IA TE P O R T Промежуточный порт

FR EE PO R T Свободный порт, порто-франко - порт

беспошлинного ввоза

D EE PW A TER P O R T Глубоководный порт

SH A LL O W P O R T Порт с недостаточными глубинами

U N FR O ZEN PO R T Незамерзающий порт

N O RTH ER N R A N G E PO R T Северо-Атлантический рейндж США (Portland,

Boston, Norfolk)

C O N T IN EN T A L PO R T Континентальный порт (Hamburg, Bremen, Antwerp,

Rotterdam, Le Harve)

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 o f readiness (whether in
berth or not, W IBO N ), whether in free practice or not ( W IFPO N), whether customs cleared
or not (W IC CO N ), 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).
C ertificate o f free p ra tiq u e is a certificate from the port-health-authorities that the
ship is w ithout infectious disease or plague on board and therefore permitted to enter port
and to allow people to board and disembark. One o f 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 o f the ship's arrival, by the port agent,
and communicated to the ship by telecommunication . W hen the vessel arrives, the master
may have to prepare and issue a "Maritime Declaration o f Health".

95
 CERTIFICATE OF "PRATIQUE1
BY CUSTOMS O FFICER

Master's name I hereby certify that I have examined (1).

..JAMES... ARTH U R GREENWOOD
Ship's Name
Port where voyage Master o f a ship called the (2)
commenced ............................................... "FORESTER"...
"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 bv the this 12 th day o f April

Customs authorities, does not 19 73
exempt the ship from any (Signed) A. Williamson
requirement which may be made bv
the Medical Officer of the Health
Authority under the Law in that
Preventive (or other responsible)
Officer of Customs and Excise

The documents to be issued by the vessel when in the port:

1. Statem ents of Facts. SOF (А кт 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 o f calculation o f laytime used (the
"Timesheet") and is a record o f the events that can affect the counting o f laytime. In some
calculation forms, the Statement o f Facts could be part o f the Timesheet, preceding the
columns in which the periods for loading, discharging, shifting, inclement weather, other
excepted periods and tendering o f Notice o f Readiness etc., are noted.
Shipowners and charterers may use their own forms o f SOF and Timesheets. However,
BIMCO publishes standard forms, (see annex 5)
2. Tim e sheet (Таймшит. Документ составляется на основе акта стояночного
времени и используется для суммирования сталийного времени и определения
демереджа или ducna4a).{sQt annex 6)
3. D isbursem ent 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

96
expenses, tug hire, customs fees, stores, bunkers, water, etc., on behalf o f owners. The
agents may charge a certain disbursements’ commission on such advances, e.g., 2 per cent,
(see annex 7)

CONTRACTUAL RELATIO N SH IPS RELATED TO TH E S H IP ’S EM PLO YM EN T

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 deliveiy
of goods
7. The LEGAL CARRIER and each SHIPPER o f 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, EQUPMENT SUPPLIERS,
REPAIRERS, TUGOWNERS, PILOTAGE AUTHORITIES, PORT AUTHORITIES,
STEVEDORING COMPANIES, etc. (contract for services)
10. A SHIPOWNER and each PASSENGER (contract o f 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

97
Exercise 3. M atch words fr o m b o x A with words fr o m b o x B to m a k e b u sin ess term s. Then
use the term s to com plete th e sentences below

A В
Shipping bulk risks waybill
Charter delivery note party
Air all agent note
Forwarding shipping m ark carrier

1. Packing and shipment will be arranged by our__________________ .

2. The freighter N arvik is a ___________________ w ith a cargo capacity o f 6 000 tons.
3. W hen you have confirmed the charter, we will send you t h e ________________ __
for signature.
4. Before signing t h e ____________________ , please check that the consignm ent has
arrived undamaged.
5. The cost o f 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 o f lading.
8-The_____________________________ on the sides o f the crates should correspond
with the one on your shipping documents.

Exercise 4. Read “Gencon ” charter. Fill in the gaps using the corresponding Russian term s
and match them with the given English ones

1 1. Судовой брокер
£ 2. Название судна
3 3. Дедвейт в тоннах
( d 4. Дата канцелинга
0, ) 5. Брокерская комиссия и кому оплачивается
) £ 6. Стоимость погрузки/выгрузки
\ 3 7. Ставка демереджа (погрузка и выгрузка)
) 7 8. Грузоотправитель
2 9. Позиция судна в настоящее время
1£> 10. Сталийное время (за погрузку; для выгрузки; общее сталийное время)
I h C l l . Оплата фрахта (валюта, метод оплаты, бенефициар и банковский счет)
(512. Валовая/чистая грузовместимость
3 13. Ожидаемая готовность в погрузке
\ о I ! 14. Порт/место погрузки/выгрузки
1 X.. 15. Груз (кол-во груза и марджин судовладельцев; если полный груз не согласован,
указать «часть»)
I £ 16. Ставка фрахта (оплата по выгруженному или коносаментному количеству)
О \ 17. Согласованные дополнительные статьи, предусматривающие специальные
условия

98
1. S hip broker 2. Place and date

3. Owners/Place o f business (Cl. 1) 4. Charterers/Place o f business (Cl. 1)

5. Vessel's name (CL 1) 6. GRT/NRT (Cl. 1)

7. Deadweight cargo carrying capacity in 8. Present position (Cl. 1)

tons (Cl. 1)

9. Expected ready to load (Cl. 1) 10. Discharging port or place (Cl. 1)

11. 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) (0 .1 ) method o f 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) (C1.6) 18. Demurrage rate (load. And disch.) (C1.7)

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 o f a
conflict o f conditions, the provisions o f Part I shall prevail over those o f Part 11 to the !
extent o f such conflict. !
Signature (Owners) Signature (Charterers) |
i

99
Fill in the gaps using the corresponding Russian terms and match them with the given
English ones

1. 2.

3. 4.

5. 6.

7. 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)

100
Exercise 5. Translate from English into your native language

There are some conditions that might make a port unsafe within the meaning o f a
charter party. They are: inability o f the ship to reach, stay at or leave a loading berth safely
for some reason, e.g. insufficient depth o f 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.

Exercise 6. Translate from Russian into English

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.

101
 UNIT 14
AGENCY
S u b -c h a r ter s

Vocabulary
• To sub-let - сдать судно в субчартер
• Disponent owner- распорядитель
• Contract o f affreightment (СОА) - фрахтовый контракт
• To the ship's detriment -в ущерб судну
• Ship's husbandry matters - вопросы по ведению хозяйства судна
• General agent - генеральный агент
• Cargo order - грузовой ордер
• Position list- позиционный лист
• Open date - открытая дата
• On subject - предметно
• Rider clause- дополнительные пункты (положения) контракта
• Subject stem - постановка судна под погрузку в порядке очередности
• Fixture - фрахтовая сделка
• Recapitulation (re-cap)-суммирование, окончательный результат
• То remunerate - компенсировать
• Brokerage- комиссионное вознаграждение
• То stipulate - оговаривать
• Deadfreight - мертвый фрахт
• Demurrage- плата за простой судна, демередж
• Hub o f the community - центр сообщества
• The Baltic Exchange - Лондонская фрахтовая биржа (по морским и воздушным
перевозкам)
• То abide( by) - соблюдать
• Coasting broker - каботажный брокер
• Gross receipts - валовый приход
• Range - рендж, зона или отрезок между определенными портами

Exercise L Read the text and answer the questions

It is common for the terms o f 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 o f the original charter. It w ould be
possible, therefore, for a vessel to be:
1. owned by a b an k o r finance house;
2. leased or bareboat chartered to Co A;
3. time - chartered from Co A by Co B;
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 tim e or bareboat
charterer o f a sub-let vessel, who assumes, in relation to the sub-charterer, the
responsibilities o f a real owner.

102
 owned
Bank ----------► Co A ----------► C o B ----------► Co C ----------► Co D
Bareboat- time- voyage- sub­
chartered chartered chartered chartered

Figure 1

Contracts o f affreightm ent (COA)

In m odem 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 o f 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 o f rider clauses added, or on a main COA document supplemented by separate
charter parties relating to each voyage made under the COA.

y Agency
is the legal relationship between an agent, his principal and a third party brought into
contract with the principal through the actions o f the agent. Rights, duties and liabilities
arise as a consequence o f agency.
A person who acts on behalf o f another (called the principal) in such a way as to affect
the other's legal position, often in bringing the principal into a contractual relationship with
a third party. A special agent is appointed for a specific act, e.g., fixing a ship on charter. A
shipm aster is a special agent for certain acts, e.g., signing bills o f lading. A general agent
has the authority to perform all the principal's functions. Some ship's agents describe
themselves as general agents for one or more shipping companies.
Some shipping-related examples o f agency are as follows:
1. W here a shipbroker, acting fo r shipowner, fixes a ship on charter and thus brings
the shipow ner into a contractual relationship with the charterer;
2. W here a p o rt agent, acting fo r a shipowner whose ship is to visit the port, arranges
stevedores and port services for the ship's visit;
3. W here a shipmaster, acting fo r the shipowner, engages a crew member on a crew
agreement;
4. W here a shipmaster, acting f o r the shipow ner a n d all cargo owners, agrees to an
offer o f salvage assistance when the ship and cargo are in peril.
For further information see a standard liner and general agency agreem ent (annex 21).

S h ip 's agent
The c h ie f duty o f a p o rt agent is to look after the needs o f his principal's ship and the
ship's personnel while arriving at, staying in and departing from the port.
The ship's agent should:
-rep resen t his principal (the shipowner or time charterer, as the case may be);

103
 -a ssist the ship, so as to achieve the quickest possible turn-round with the maximum
efficiency, at minimum cost;
-a ssist the master in his dealings with port, state and other officials;
-pro cu re any provisions, stores or other requirements for the master;
-com m unicate messages between owners/time charterers and the master;
- b e reliable and energetic;
-u s e all due care, skill and diligence in the performance o f the agency.
The agent serves his principal, who is generally the party paying his fee, regardless o f
who has nominated the agent. Generally, if the shipowner pays the port agent's fee, he is the
agent's principal, regardless o f w hether a charterer or other party nominated the agent.

Under a voyage charter

Commercially powerful and influential voyage charterers often insist on nominating
port agents, and are entitled to do so if the C/P is suitably claused to that effect.
If agents nominated by voyage charterers appear to act primarily for charterers, to the
ship's detriment, they should be reminded that their prime duty is report to their principal,
i.e. owners.
Where it's the customary practice for the agent (and not the master) to sign bills o f
lading, the agent should be issued by the master with the letter o f authorization to do so.

Under a time charter

Loading and/or discharging costs are usually for time charterers' account, and in this
case it can be expected that port agents will be appointed by time charterers to look after
their commercial interests.
Time charterers' agents automatically become the ship's agents on arrival and have an
agent's usual duty to use all care, skill and diligence in the performance o f the agency. They
may, however, be concerned more with commercial matters such as cargo entry and
clearance, loading and discharging, etc. than with ship's husbandry matters, unless specially
instructed by charterers. In these cases the time charterer is expected to instruct his agent to
act as if the shipowner was the principal.
Where there is a risk o f a time charterer' agent acting to the detriment o f owners'
interests, owners should appoint a protecting agent, supervising agent or husbandry agent
to deal exclusively with ship's affairs.

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:
- O w n ers’ bro k ers, who find and arrange employment for their principals’ ships;
- C h a rte re rs ’ bro k ers (or “chartering brokers”) who find ships to carry out their
principals’ requirements;
- T a n k e r bro k ers, who arrange oil cargo fixtures in the specialist tanker market;
- L in er b ro k ers an d lin er agents who find cargoes for liner owners and operators;
- C oasting bro k ers, who work in the short sea market and often combine the
functions o f ow ners’ and charterers’ brokers;
- Ships’ agents, who are employed by shipowners and charterers to service their
vessels’ needs in ports;

104
 - Sale and p u rc h a se b ro k ers, who buy and sell ships and can, if required, arrange
newbuilding contracts for their principals.
Many shipbrokers are self-em ployed, while others work in large firms active in
several of the above disciplines.

The c h ie f stages in the fix in g process are

1. Circulation by the charterers’ broker o f ''’'cargo orders”, outlining charterers’
forthcoming cargo transportation requirements.
2. Circulation by the ow ners’ broker o f “position lists” or “tonnage lists”, detailing
expected '‘‘open ” dates and positions o f available ships.
3. Study o f m arket reports by brokers.
4. Negotiations on main terms between brokers on behalf o f 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.
5. Negotiations “on subjects”, e.g. “subject ste m ”, ’‘‘s ubject receiver's approval, etc.
where the main terms have been agreed, but final agreement is subject to various secondary
conditions being agreed.
6. "Fixture”, i.e. the full and final agreement, with all “subjects” removed. “Fixture” is
the word that indicates the contract has been made and the negotiations to charter the ship
have been concluded.(see annex 11)
As soon as the negotiations about the chartering o f vessel have resulted in the “fixture”
of a ship, a “fixing letter” may be drawn up containing a summary o f the main terms and
conditions o f the charterparty. This can also be communicated electronically by means o f a
“re-cap” (recapitulation) message, (see annex 12).
A fixing letter or re-cap message is confirmation o f a charter fixture and is usually
accepted by both shipowners and charterers before the signing o f the actual charterparty
document.
Following fixture is a “po st - fixture” or follow -up period during which the broker
may undertake various administrative functions on behalf o f his principal, such as (in some
cases) collection o f 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 % o f the
shipowner's gross receipts from hire, freight, deadfreight and demurrage, payable to each
broker involved.
The professional body for shipbrokers world wide is the London-based Institute o f
Chartered Shipbrokers, whose motto is “O u r W ord, O u r B ond”.
London is the hub o f the international shipbroking community, and many individual
brokers and broking firms are members o f the Baltic Exchange, which is a self-regulated
shipbroking marketplace. The activities o f its members, who are mostly shipowners, cargo
interests and shipbrokers, include the matching o f bulk ships and bulk cargoes, and the sale
and purchase o f ships. Baltic Exchange members undertake to abide by a strict code o f
business practice, enshrined in the famous Baltic motto “Our Word, Our Bond” .
The B altic's membership includes shipbrokers o f all types as well as non - trading
individuals such as maritime lawyers, insurers, financiers, classification societies and
consultants.1

1. W hat’s the main condition o f subletting a vessel?

105
 2. What’s CO A based on?
3. What’s the difference in brokers’responsibilities?
4. What are the brokers’terms ofpaym ent?
5. What is meant by “A gency”?
6. What are the parties in the agency agreement?
7. What is the difference between a special and general agents?
8. What are the charterers' duties under a time charter?
9. What are the functions o f a time charterer's agent?
10. What are the duties o f a voyage charterer's agent?
11. What is the function o f the recapitulation message?
12. What are the main spheres o f interest o f the Baltic Exchange?
12. How can you explain the meaning o f the motto “Our Word, Our B o n d ”?

Exercise 2. M atch terms with their definitions

1. Affreightm ent A. Insurance policy for loss o f 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 o f shipowner
7. Gross charter G Delaying o f a ship and consequent compensation-
payment when loading or discharge-times have been
exceeded

1 2 3 4 5 6 7

Exercise 3.1. Read the enquiry about freig h t rates. Answ er the questions. Translate into
four native language_____________________________________________________________
Dear Sirs

Please quote us yo u r most favourable freig h t rates fo r the transport o f 50 tonnes o f

palletised house bricks, net weight 1 tonne p er unit, fo r shipm ent fr o m Southam pton to
Tunis in the fir st two weeks o f December.
Please quote us assum ing delivery FO B Southam pton stating details o f shipping
commission and any fu rth e r charges.

Yours faithfully______________________________________________________________

4. What is the name o f the consignment?

5. What is the route?
6. What terms is the shipping company interested in?
3.2. Compose the reply to an enquiry which can m eet the consignee’s requirem ents

106
Exercise 4. Read the following examples o f agents’ business correspondence.
Learn the abbreviations.

1. general cargo ship/equipped for carriage o f containers

single decker/gearless
bow like (hold no 2 fully boxed)
hydraulic folding hcovers
built 2007 m alta flag
dwt/draft: 7666 m ts/7250m ts/6.20 m
grt/nrt: 5,287/3,144
loa/beam/dim: 120.80 m /17.60m /8.30 m
cargo capacity: grain:377.054 e ft-10.676 cbm / bale: 377.054cft-10.676
cbm
3 hold/ 3 hatches
holds dimensions:
no 1: 1/29.65 m x b/7.45-15/55 m x h/8 .9 0 m
no 2: 1/27.95 m x b/15.55-15.55 m x h/8.90m
no 3: 1/26.65 m x b/15.55-7.45 m x h/8.90m
hatch dimensions:

Awaiting yours Brgds

2. D ear our partners,

We have 2 shipments with each shipment 10,000mt soya bean. Please pps
your suitable vessels for belw firm cargoes:
1. cargo:soya bean
2. Quantity: 10,000 mt
3. Loadport: lsb Kadela or Mumbai, India
4. Disport: 1 sb Khanh, Vietnam
5: Loading/discharging :CQD at bends
6: Lay can with options below
- first shipment: 25t Sept-S* Oct, 2010
- second shipment: 25th Oct - 5th Nov.2010
7. Freight:owners best invite FIO BSS 1/1
Your soon feedback will be high appreciated
Thanks and best regards

3. VAN W EELDE CHARTERING B.V., ROTTERDAM

FIX: DRYCARGO@VANW EELDE.NL
OPS: OPERATIONS@VANWEELDE.NL
Doc.-No.9578642 24/nov/2011 11:37
pis offer
7500WMTS 5% MOLCHOPT ZINC CONCLS IN BULK
RIZE, TURKEY/ANTWERP
2500WMTS PWWD SSHEX (FRI 5 PM-MON 9AM) /CQD - try terms
DEC 5/15 tbn - to be nominated
3.75% TTL
Chrts agents load: A. Riza Kinay
_____Restrictions at Rize: LOAMax 160m, bm 23m, draft 10m_______________

107
 4. M/V LAKE MAY - OPEN LIYAYNGANG 25/30 SEPT 10
<OWS PREFER V > (VOYAGE)
M/V LAKE MAYA
BLT 96/LLOYDS/LIB FLAG
SINGLE DECK BOX SHAPED
24,518 DWT ON 9,7 M SW
LOA/BM 158.03 M/26M
4 HO/HA - 3 CRANES 25 MT
30.350 CBM GRAIN/30.007 CBM BALE
ABT 13 KNOTS ON ABT 18,5
<WOG>
BRGDS

PWWD - per weather working days

TBN- total both ends
SD - single decker
Н О Н А -h o ld hatch
PANDI - P & I club
DIMS - dimensions
PPT -prompt
TTLDS - total days
CHOPT - charterer's option
PC - part cargo
PPSE - propose
BLT - built
SW - salt water
WOG - without guarantees
SB - safe berth
LOA - length overall
GRT - gross registered tonnage
NRT - net registered tonnage
BM - beam
BSS 1/1- Basis 1 Port to 1 Port

E xercise 6. Translate fro m Russian into English

1. Требования, которые применяются к агентам в линейном и трамповом
судоходстве различны. В линейном судоходстве агент назначается исключительно
судовладельцем, а в трамповом его могут назначать не только судовладельцы, но и
фрахтователи, грузоотправители и грузополучатели. Их подходы к выбору агента не
совпадают.
2. В соответствии с агентским соглашением, агент должен принимать все меры
для быстрейшей обработки судов и своевременного оформления грузовых документов;
нанимать стивидоров, если погрузка является обязанностью судовладельца;
инкассировать (to collect) фрахтовые и другие платежи и переводить их
судовладельцам в короткие сроки; оплачивать дисбурсментские расходы за счет

108
судовладельца; принимать меры по урегулированию претензий в интересах
судовладельца.
3. Существует 2 основных вида финансовых расчетов агента и судовладельца:
инкассация (collection), перевод фрахта судовладельцем агенту; оплата по поручению
судовладельца, от его имени и за его счет дисбурсментских расходов, включая
портовые сборы, оплата услуг судну, грузу, оборудованию и экипажу, за все виды
снабжения и доставки груза.
4. Трамповые перевозки часто выполняются морским перевозчиком на условиях
FIO.B соответствии с этим условием судовладелец полностью освобождается от
расходов по погрузке и выгрузке груза.
5. В линейном судоходстве большинство грузовых операций и хранение грузов на
берегу оплачивается судовладельцем.
6. В линейном судоходстве по схеме «от двери до двери» агент производит
расчеты со всеми операторами наземных видов транспорта, оплачивает аренду,
хранение оборудования в контейнерном депо, ремонт, техническое обслуживание,
страхование.
7. По поручению принципала, от его имени, за его счет и в его пользу агент
заключает коммерческие сделки с третьими лицами. Агентские отношения
характеризуются участием трех сторон, т.е., агента, принципала и третьих лиц.
8. Принципалом для агента является судовладелец/фрахтователь. Список третьих
лиц обширен и разнообразен. Он включает в себя все виды официальных властей,
таких как администрация портов, таможенная и пограничная службы (border service),
санитарные власти (sanitary authorities), консульства, нотариусы и судебные органы.

Exercise 7. Read the Standard Bareboat charter. Answer the following questions (see
annex 8)
1. W hat 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?
7. What details of chartering are mentioned in the document?
8. Is there any brokerage commission?
 UNIT 15
VOYAGE CHARTER AGREEMENTS
P art 1

Vocabulary
• Voyage charter party - рейсовый чартер
• To be seaworthy - обладать хорошими мореходными качествами
• Warranty o f seaworthiness - гарантия мореходности
• To exercise due diligence - проявлять должное прилежание, исполнение
обязанностей
• Want (lack) o f due diligence - отсутствие должного старания, прилежания
• L o a d lin e- грузовая марка
• Peril o f the voyage - опасность морского предприятия
• Cargoworthy - приспособленный для перевозки конкретного груза
• Intaken weight o f cargo - количество груза, взятое на борт
• Outturn weight - вес груза, установленный после его выгрузки с судна
• Lumpsum freight - твердая сумма фрахта, люмсум, аккордный фрахт
• Bill o f lading freight - фрахт по коносаменту
• Advance or pre-paidfreight - аванс фрахта
• Pro-rata freight - фрахт пропорционально пройденному пути, дистанционный
фрахт
• A d valorem freight - фрахт, исчисленный со стоимости груза
• То evaporate - испаряться
• A grab - грейфер, ковш
• Refundable - возмещаемый
• Negotiable B/L - оборотный коносамент
• Over-carrying - завоз груза в другой порт (по недосмотру)
• Short-shipped - недогруженный
• Detention - сверхконтрсталия, простой судна сверх обусловленных дней, за
которые выплачивается демередж
• То waive the right -отказаться от прав

Exercise 1. Read the text. Learn the name o f the clauses and their Russian equivalents.
Answer the questions

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.

110
'~~Name of
M atters covered in clause
clause
'preamble Identity o f 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 o f 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 and
Сталийное 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 owners
Average 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 o f responsibility for consequences of strikes or lock-outs preventing
Забастовки fulfillment of obligations
War Risks Liberty o f owner to cancel charter in event of outbreak o f war; liberty of master to
Военные sail from loading port before completion of loading in event of outbreak of war
риски

Ill
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
Protection of owner against US lawsuits where General Average is to be adjusted
Новая
in accordance with US law
оговорка
Джейсона
Both to Blame
Collision
Clause
Оговорка о Protection of owner against US lawsuits in collision cases
взаимной
ответственно
сти при
столкновении
Law And
Arbitration
Jurisdiction to which any dispute will be referred; place of any arbitration;
Законодатель
appointment of arbitrators
ство и
арбитраж

Warranty of seaworthiness
Unless a contract o f 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 o f 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 o f the vessel in
accordance with the custom o f the trade;
2) Do this before the commencement o f 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);
- the cargo spaces are fit for the reception and carriage o f the cargo and that the cargo
is properly loaded and stowed taking into account the expected perils o f the voyage (the
vessel is <
‘<
‘cargoworthy”);

112
 - 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 o f 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
may be payable in local currency in short-sea trades.
2. must be paid, under common law, and in the
absence of any term to the contrary, on delivery of
the cargo to the consignee or his receiver at the
agreed destination.
3. is normally paid in accordance with the term of a
“Freight Clause” which stipulates the amount of
freight, the time for payment and the method of
payment.
4. is often paid under C/P terms partially in advance,
e.g. on loading, or on the issue of Bs/L.
5. may depend on amount of the intaken weight o f
cargo, or (less commonly) on the outturn weight, the
cargo volume, cargo value.
6. is payable in advance, is collected by the agent at
the loading port before issue of Bs/L marked
“Freight Pre-Paid”.
7. if payable on delivery of the goods, is collected
from the consignee or his receiver by the port agent
on the first presentation o f an original B/L.
1. is not paid unless the entire cargo
reaches the agreed destination,
even if not the carrier's fault, e.g.
if the voyage is abandoned after a
General Average act. (The owners
usually protect themselves by
insuring against possible loss of
freight, so that in case of General
Average the loss of freight
insurers become a party to the
“common maritime adventure”)
2. is not paid where the owners have
breached the contract. When
cargo is delivered damaged,
however, full freight is normally
payable and a separate claim is
presented by the cargo owners for
the damage.
3. is not payable on delivery if the
goods have lost their “specie”, i.e.
changed their physical nature.
 Freight may be o f 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 o f the amount o f cargo carried. The owners
guarantee a specified cargo capacity for charterers’ use
- is useful in “mixed cargo” charters where cargoes are o f 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 o f 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 o f a cargo;
- is the usual type o f freight stipulated in tanker charter parties;
- may be payable in advance or at destination.

3. Advance or prepaidfreight
- is often demanded by carriers o f dry cargo, and is the usual type o f freight in the
liner trades.
- may be the TTL freight or an agreed proposition o f it, payable in advance at the
loading port, the balance being payable on delivery o f 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 o f Lading often require a “freight paid” B/L.

4. Pro-rata freight
- is payable in common law where only part o f the voyage has been completed, e.g.
when the voyage is abandoned following an outbreak o f war or an accident, and the cargo is
discharged at an intermediate port, or if the vessel had to leave port because o f 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 freig h t
- is freight charged at a rate stated as a percentage o f the value o f a shipment, usually
o f high - value goods.
- is one on which the value o f 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 cargos, and owners must usually make other insurance arrangements.

114
 6. B a c k fr e ig h t
- is freight paid by a shipper for the return carriage o f goods not delivered to or not
accepted by their receiver or consignee.
- is norm ally 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. D ea d w eig h t
is not genuine freight, but ow ner's compensation for lost freight, payable by the charterers
on a quantity o f cargo short-shipped, i.e. a quantity which he agreed, but failed to load. For
exam ple, if the C/P agreem ent was that the charterers w ould load 70,000 tonnes o f wheat,
but he loaded only 60,000 tonnes, the shipowner will claim deadfreight on 10,000 tonnes at
the agreed rate o f freight. (Some shipowners place deadfreight claim fo r m s on board, on
w hich the m aster quantifies the amount short-shipped).

The sample o f a deadfreight claim

N am e o f vessel
Port o f_______ *1
D ate__________

DEADFREIGHT CLAIM

Please be advised that according to the terms o f the C/P, the vessel w as fixed for
lo a d in g _____________________M T o f_________________________________________

Vessel tendered on N O R for_____________ MT

A ccording B/L vessel only received____________________ M T
D eadfreight_________________ M T

As per C/P terms, please be advised that undersigned, M aster o f_____________ ,

on b e h alf o f owners and charterers reserve all rights to claim deadfreight for the total o f the
shortloaded quantities.

Yours faithfully,
M aster

Tendered to___________
Received by___________

1. Who is responsible fo r seaworthiness o f a vessel?

2. Explain the difference between “cargow orthy” and “seaw orthy".
3. What are the freig h t terms ofpaym ent?
4. What m easures should be taken while breaking the contract by the owners?
5. What does “Exercise due diligence " mean?
6. What types o f freight do yo u know?
7. What are the distinguished fea tu res offreig h t types?
8. What inform ation should be obligatory included in the deadfreight claim?

115
 Exercise 2. F in d th e n o u n s in th e text to com plete th e fo llo w in g collocations (different
variants are possible). Use them in y o u r own sen ten ces_____________________
VERBS | NOUNS

To equip j A vessel

\
To supply I

To carryout

To damage

To perform

To calculate

To stipulate

To specify

To abandon

To breach

To collect

To remunerate

E xercise 3. Complete th e fr e ig h t offer with the p ro p er prepositions. Translate into your

native language

Dear Sir

j Thank y o u _____ y o u r enquiry regarding the tr a n s p o r t_______ 50 to n n e s ______

i p alletized house bricks. Our offer is as fo llo w s:
M .V MANHATTAN _____ $ 5 0 p er m etric
j to n n e o r 10 cubic metres, a t stea m e r's
o p tio n ,_____ 4 laydays
A s can be s e e n ________the enclosed sailing card, the vessel is currently located in
j M arseille a n d is due ______ dock ______ Southam pton ________ Novem ber 3(fh.
j Loading w ill com mence _________D ecem ber 1st _________ an additional charge
\ ______ $ 2 5 0 _____ every day o f demurrage.

116
 I f you accept this offer please forward us the charter p a r ty _____ 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 of freight (B/L freight (B/L);
Prepaid freight (P/P); Pro- rata freight (P/R); Ad 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 of valid reasons___________________
4. Dry cargo should be loaded under a negotiable bill of 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 o f 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 o f the amount of cargo
Lumpsum charter £ . Insurance against latent deficiencies
General average F. Freight to be paid upon delivery at
destination
7. Negotiable B/L G Indemnity for all parties in case of
deliberate infliction (нанесение) of damage
in order to avoid greater damage

1 2 3 4 5 6 7

Exercise 6. Look at the following extracts from contract clauses. A navigation word has
been underlined. Link the underlined word to its meaning

C ontract clauses M eaning

1. now it is hereby agreed.... A. by means o f or because o f that

2. subject as hereinafter provided B. with this document
3. you will find in the documents C. o f this event
herewith attached
4. the first installment becoming D. later in this document

117
 due one month from the date
hereof
5. as thereby stated E. by means o f this document or declaration *1

1_______ 2_______ 3 4 5

Exercise 7. Translate fr o m Russian into E nglish

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 помещений 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.
 UNIT 16
VOYAGE CHARTER AGREEMENTS
P a rt II

Vocabulary
• Clause Paramount - Оговорка «Парамаунт»
•New Jason Clause - новая оговорка Джейсона
•Lawsuit - судебный процесс
• То exonerate a ship- освободить судно
•Laydays - сталийные дни, установленное чартером количество дней для
грузовых операций или докования судна
• Cancelling date (cancellation) - канцеллинг; расторжение договора ввиду
нарушения своих обязательств одной из сторон, например, опоздание прибытия судна
в порт в установленный чартером срок
•Laytime - сталийное время
• То compel - заставлять
•Despatch days - разница между расчетным количеством дней, отведенных на
выполнение грузовых операций, и фактически затраченными днями (за экономленное
время судовладелец выплачивает фрахтователю обусловленную сумму)
•Despatch (dispatch) - диспач; компенсация фрахтователю за досрочное
завершение грузовых работ
•Reversible - взаимный зачет простоя и диспача по погрузке и выгрузке
• Customary dispatch (CD) - обычное обслуживание согласно обычаям данного
порта
• Customary quick dispatch (CQD) - с обычной скоростью (о норме погрузки и
выгрузки)
•A computation - вычисление
•Demurrage - демередж, сумма, подлежащая выплате судовладельцу для
компенсации убытков, происшедших из-за простоя судна в порту сверх времени,
предусмотренного для выполнения грузовых операций
•Salvage - спасение имущества (груза)
• То procure - добиваться
•Amount due - сумма долга
•Arrived ship - прибывшее судно

P arti

Exercise 1. Read the text and answer the questions

Clause Paramount
A Clause Param ount (sometimes named “G eneral P aram ount Clause”).
The word ‘paramount’ means ‘supreme’ or ‘above all others’. The phrase ‘paramount
clause’ would seem to imply that all clauses in printed contract o f carriage, whether it be
contained in a charterparty or bill o f lading, would be subject to the terms incorporated by
the paramount clause.lt incorporates into the contract for carriage one of the three
international conventions setting out minimum terms and conditions out o f which the carrier

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cannot contract, i.e. the Hague Rules, the H ague-Visby Rules or the Hamburg Rules. For
example, if the clause stated that the carriage o f goods was subject to the Hague-Visby
Rules, these rules would then become part o f the contract o f carriage and would establish
contractual obligations and rights o f the parties. 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.
Without the incorporation o f the Hague Rules, the H ague-V isby Rules or the Hamburg
Rules, the parties to a contract o f carriage are free to allocate the obligations and rights
between themselves.
Most maritime states have incorporated one or other o f the 3 conventions into their
national law. In such cases the relevant rules are usually automatically incoiporated in
contracts for carriage from that country.
An example o f a simple Clause Paramount is: "The Hague Rules as am ended 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 o f US lawsuits.
Under US common law, a shipowner cannot claim General Average contributions from
cargo where there has been faulty navigation or management o f the vessel. The ow ner will
therefore seek to exonerate him self 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 o f 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

L aydays
- refer to a period o f 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 o f 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.

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 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 o f the
vessel's late arrival.
In C/Ps and related documents the lay can will usually be written as “ 1 0 / 2 0 M a y ”
meaning 10 M ay is the first layday while 20 May is the canceling date.

Laytime
- is defined in Voyage Charter Party Laytime Interpretation Rules (1993) as “ the
p eriod agreed between the parties during which the owners will make and keep the vessel
available fo r loading or discharging without paym ent additional to the freig h t”
- is time allowed to the charterers for cargo operations without additional payment
- should in the interest o f the owners, commence as soon as practicable.
- may be separate for load and discharge ports, or reversible (or “all purposes”.)
- may be o f three types with respect to the method o f determining the duration:
•D efinite laytime
• Calculable laytime
•Indefinite laytime
- if d e f i n i t e will be stated in the C/P as a specified period o f time, e .g . “6 (six) d a ys”
or “48 running hours ”.
- If c a l c u l a b l e 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 o f 10,000 tons per day,
the laytime will be 2, 00 days.
- If i n d e f i n i t e the C/P may state that the cargo is to be loaded w ith “customary
despatch” or “customary quick despatch” or “or as fast as the vessel can receive”.

C a n o n ly s t a r t to c o u n t a g a in s t th e c h a r t e r e r s a ft e r t h r e e c o n d it io n s h a v e b e e n
f u lf ille d :
1. The vessel has become an “arrived ship” within the term o f the C/P.
2. The vessel is in all respects ready to load/discharge
3. Notice o f readiness has been served on the charterers or their agent in accordance
with the C/P.1

1. Why's this clause called “param ount”?

2. What are shipowner s liabilities according to US lawsuit?
3. Explain the reason o f Jason clause.
4. W hat’s the difference between laytime, laydays and lay can?
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?

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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

y a v essel

Exercise 2. Define the liabilities of 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 of NOR. Translate into your native language

Notice of 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 of 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 at certain number o f HRS
after Notice o f 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 N O R 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 o f Rotterdam at
2300hrsAugust 28 and is ready in all respects to load a cargo o f 6500 metric tons of ACETON
and 350 metric tons o f METHANOL in accordance with the terms and conditions of the Charter
Party dated 31 July 2005.__________________ ________________________________________

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 Please acknow ledge the above.

Yours Truly,
M aster o f M .T. Corrona

N otice accepted at 1700 hrs on A ugust 29 2005

S ignature________________ (Shippers/R eceivers)

A gent

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 o f legal proceedings, liquidated damages, termed demurrage normally
become payable by the charterers to the owners for each day, or part o f a day, that the ship is
detained beyond the time o f expiry o f laytime.
D e m u r r a g e is defined in the Voyage C/P Laytime Interpretation Rules 1993 as “an
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 charterparties stipulate “ free dispatch”, meaning that the owners will not pay
any dispatch money if time is saved.
T h e d a i l y d is p a t c h r a t e , which is normally quoted in US Dollars, is t r a d i t i o n a l ly
h a l f t h e a g r e e d d e m u r r a g e r a t e , the reasoning being that while early completion o f 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 o f the next due vessel.

R e m e m b e r th e fo llo w in g a b b r e v ia tio n s :
B d i - b o th d a y s in c lu d e d
D 1 /2 D (D H D ) - D e s p a tc h h a lf D e m u r r a g e
L T S - D e s p a tc h - A ll L a y tim e s a v e d
A T S - D e s p a t c h - A l l T im e s a v e d
W T S - D e s p a tc h - A ll w o r k in g tim e s a v e d
F H E X - F r i d a y a n d H o l id a y s e x c l u d e d
F H I N C - F r id a y a n d H o lid a y s in c lu d e d
S H E X - S u n d a y a n d H o l id a y s e x c l u d e d
S H I N C - S u n d a y a n d H o l id a y s i n c l u d e d
1. What does NOR mean?
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 2. What are time requirements fo r 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?

Exercise 2.Look at the follow ing extracts fro m contract clauses. A navigation word has
been underlined. Link the underlined word to its meaning

C ontract clauses M eaning

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 o f the product, and the monthly
payments therefore D. for that item
5. The Initial Fee together with any VAT thereon E. in that matter

1_______ 2 3 4________5

Exercise 3. R ead the enquiry fo r 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,
A usrta lia ,________ St Malo, Brittany, France, to take a consignm ent______ 4,000
(four thousand) tons o f 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 i f you
can get a vessel and let us know the terms.

Yours faithfully,

Shipping Manager

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Exercise 4. Read the shipbroker's reply,

a) Answ er the questions

____ V._______________________________________________
Dear Sirs,
You should have already received our letter (fax) in which we said that we had an
option on a vessel, M S Sheraton, which is docked in Melbourne, Australia at present.
S h e has a cargo capacity o f 7,000 (seven thousand) tons and although she is larger
than yo u wanted, her owners are willing to offer a pa rt charter.
They have quoted $12.30 (twelve dollars, thirty pence) p er ton which is a very
competitive rate considering yo u will be sharing the cost.

Could yo u f a x us y o u r decision a.s.a.p.7

Yours faithfully,

Charter Department

(tonne - метрическая тонна)

1. What does an option on a vessel mean?
2. Where is the MS Sheraton at the moment?
3. Is the ship exactly what charterers wanted?
4. Why is the chartering cost lower for this shipment?
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 o f Readiness
5. Commencement o f Laytime for Loading/Discharging
6. Demurrage
7. Bills o f 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 compare them

1. Судовладельцы имеют залоговое право

A. 10 days altogether on dem urrage shall be на груз в о беспечен и е любых сумм,
allow ed a t....p e r day or pro rata for any part o f a при чи таю щ и хся по дан н ом у чартеру, и
day, payable day by day. расходов, н еобходим ы х для получения этих

125
B. The owners shall have a lien on the cargo for 2. Наличные деньги для обычных
any amount due under this contract and expenses дисбурсментских расходов судна в порту
necessary o f recovering same погрузки в сумме, не 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 проформой, указанной на обороте этого
the expected date o f readiness to load shall be чартера, без ущерба для данного чартера.
given to the Shippers or their Agents who shall Фрахтователи освобождают
be kept informed o f any material alteration o f the судовладельцев от ответственности, если
notice date 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-то причин,
D. The “Hague Rules” contained in the независимо от т ого, являются ли они
International Convention for the Unification of следствием небрежности, за которую или
Certain Rules relating to Bs/L, dated Brussels the за последствия которой перевозчик не
25th August 1924 as enacted in the country of несет ответственности по закону, по
destination shall apply to this contract. When no договору,... груз, грузоотправители,
such enactment is in force in the country o f грузополучатели или грузовладельцы
destination the corresponding legislation o f the должны нести свою долю убытков по
country of shipment shall apply, but if no such общей аварии совместно с перевозчиком в
legislation is in force in either country then the порядке оплаты любых пожертвований,
British Carriage o f Goods by Sea Act 1924 shall убытков или расходов, понесенных в связи
apply. The Owners and Charterers are entitled to с общей аварией и должны оплатить
the benefit o f all privileges, rights and относящееся к грузу вознаграждение и
immunities contained in such enactment as if the специальные расходы по спасению. Если
same were herein specifically set out. 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 судно на демередже в течение 10 дней в
Agents at their risk and expense, the Owners целом по погрузке и выгрузке; демередж
paying for loading and discharging по ставке в день или пропорционально за
часть дня выплачивается день за днем
F. The time shall commence at 1 p.m. if notice 6. Телеграмма об отходе судна и дневной
o f readiness is given before 10 a.m. and at 7 a.m. нотис (календарные дни) с указанием

126
next working day if notice given during office
hours after 10 a.m. Any time lost in waiting for
berth at or off port o f loading and port of
discharge shall count as laytime
G Cash for vessel’s ordinary disbursements at
the port of loading not exceeding l/3rd o f the
freight to be advanced by the Charterers if
demanded by the Owners or Captain, Owners
paying 2 per cent to cover insurance and all other
expenses
I. The Captain shall sign B/L as printed below
without prejudice to this Charter. The Charterers
shall indemnify the Owners if the Owners are
held liable under the B/L in respect o f any claim
for which the Owners are not liable towards the
Charterers under this Charter
J. Should the vessel not be ready to load latest at
12 midnight on the.... Charterers have the option
of canceling this contract. If it appears that the
vessel will be delayed beyond such canceling
date, the Owners may as soon as they are in a
position to state with reasonable certainty the
day within which the vessel will be ready as
above, give notice thereof to the Charterers
asking whether they will exercise their option of
canceling. Such option must be declared within
36 running hours (Sundays and holidays
excepted) after the receipt o f the Owner’s notice.
127
предполагаемой даты готовности судна к
погрузке должны быть даны
грузоотправителям или их агентам,
которых необходимо информировать О
любых существенных отклонениях от даты
нотиса
7. Груз должен быть доставлен к борту
судна и принят от борта судна
фрахтователями или их агентами на их
риск и за их счет. Судовладельцы
оплачивают расходы по погрузке и
выгрузке
8. Сталийное время должно учитываться с
13.00, если нотис о гот овности судна дан
до 10 часов утра, и с 7 часов утра
следующего рабочего дня, если НОГ дан в
течение рабочих часов конторы после 10
часов утра. Время ожидания причала
судном, находящимся в порту или на рейде
порта погрузки или выгрузки, считается
сталийным.
9. При столкновении судна с другим
судном, в результате небрежности,
упущения или небрежности со стороны
капитана, члена экипажа, лоцмана или
служащих судовладельца в судовождении
или в управлении судном, владельцы груза
возмещают судовладельцам все убытки
или освобождают от ответственности
перед другим, не перевозящим груз 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
disaster before or alter the commencement o f a
voyage, resulting from any cause whatsoever,
whether due to negligence or not, for which, or
for the consequences of which, the Carrier is not
responsible, by statute, contract, 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 o f a General Average nature that
may be made 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 belonged to strangers. Such
deposit as the Carrier, or his agents, may deem
sufficient to cover the estimated contribution o f
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
L. 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 o f the
Master, Mariner, Pilot and servants o f the Carrier
in the navigation or in the management of the
vessel, the owners of the cargo carried hereunder
will indemnify the Carrier against any loss or
liability on the other or non-carrying vessel or
her owners in so far as such loss or liability
represents loss of, or damage to, or any claim o f
the owners o f said cargo, paid or payable by the
other or non-carrying 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 o f their claim against the
carrying vessel or the carrier. The foregoing
provisions shall apply where the owners,
operators or those in charge of any vessel or
objects other than, or in addition to, the colliding
vessels or objects are at fault in respect of a
collision or contract
Exercise 7. Complete N O R using th e fo llo w in g E nglish equivalents
P assed by P ort Warden Please be advised
F or a n d on b e h a lf o f Charterers at the anchorage
128
К). Гаагские нрапили, изложенные в
международной коипсицим но унификации
некоторых правил, касающихся
коносамента, принятой в Брюсселе в том
виде, в каком они приняты в стране
назначения груза, применяются к данному
договору. Гели зги правила нс приняты в
стране назначения, применяется
соответствующее законодательство страны
отправления груза, но если подобное
законодательство нс действует ни в одной
из этих стран, то должен применяться
английский Закон о перевозке грузов
морем 1924 года. Судовладельцы и
фрахтователи пользуются всеми
привилегиями, правами и льготами,
предусмотренными таким
законодательством, так же как если бы эти
правила содержались в данном чартере
11. Если судно не буден готово к погрузке к
12.00, фрахтователи имеют право
аннулировать этот чартер. Если окажется,
что судно вследствие задержки не может
прибыть к дате канцелинга, судовладельцы
могут,- как только они будут в состоянии
установить с разумной степенью точности
день, в течение которого судно будет
готово к погрузке в указанном выше
смысле,- дать нотис с указанием этой даты
фрахтователям, с просьбой сообщить,
воспользуются ли они своим правом
аннулирования чартера. Этот опцион
аннулирования чартера должен быть
заявлен фрахтователям в течение 36
текущих часов после получения нотиса
судовладельцев
ready in all respects
estim ated quantity o f cargo
 Port.____________
D a t e _ _ _ 2 0 0 ___
Messrs._____________

To whom it may concern.

(Пожалуйста, примите к сведению) that my vessel “________ ” arrived (рейд ) o f the

port _________ at _____ hours_________200___ and having been passed by the
Canadian (USA) D epartm ent o f Agriculture and by the port o f Warden is now (готово во
всех отношениях) to commence the loading o f her grain cargo in accordance with all
terms, conditions, provisions and exceptions o f the governing Charter party.

(Предполагаемое к погрузке количество гр у за)________ tons.

Passed by Canadian (USA) Dep. O f 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)

Exercise 8. Translate from Russian into English

1. Если судно не будет готово к погрузке к 12.00, фрахтователи имеют право
аннулировать чартер.
2. Дневной нотис с указанием предполагаемой даты готовности судна к погрузке
должен быть выдан грузоотправителям или их агентам.
3. Время ожидания причала судном, находящимся в порту или на рейде порта
погрузки или выгрузки, считается сталийным.
4. Груз должен быть доставлен к борту судна и принят от борта судна
фрахтователями или их агентами на их риск и за их счет.
5. Аннулирование чартера должно быть заявлено фрахтователями в течение 36
текущих часов после получения нотиса судовладельцев.
6. Фрахтователям разрешается держать судно на демередже в течение 10 дней в
целом по погрузке и выгрузке.
7. Капитан подписывает коносамент, представленный в соответствии с
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.

129
 UNIT 17
TIME CHARTER AGREEMENTS
T im e C h a r t e r C la u s e s

Vocabulary
•D isb u r se m e n t- выплата; расходы, издержки
• To reimburse - возмещать; компенсировать
• Cessation o f hire - прекращ ение аренды
•Suspension o f hire - приостановление выплаты арендной платы
•In default o f paym ent - в случае неуплаты аренды
• Umpire's decision - реш ение третейского судьи; арбитра
•S p ee d a nd fu e l consumption - скорость и расход топлива
•F O (fuel oil) - жидкое топливо, мазут
•D O (diesel oil) - дизельное топливо
•Laden - груженый, загруженный (о судне)
•Id le -холостой, работающ ий н а м алых оборотах
• Trade limits -(зд.) перевозки, рейсы; границы использования судна
• Merchandise - товары
•B erth - причал
•Anchorage - якорная стоянка
•A mate 's receipt - штурманская расписка
• ‘D isponent o w n er' - диспонент, фактически распоряж аю щ ийся судном
судовладелец
•F r a u d - обман, мошенничество
•Supercargo - суперкарго (представитель фрахтователя на тайм-чартерном судне
или представитель владельца груза, сопровождающий груз в пути)
• “Off-hire " - вне аренды; обстоятельства, приостанавливающ ие оплату аренды
судна
• Wear and tear- амортизация
•r.o.b. (remaining on board) - остаток груза, не поддающийся откачке зачистными
насосами и остающийся в грузовых танках
•R edelivery - возврат судна из тайм-чартера
•F o u l B/L - коносамент с оговорками
•D ow ntim e - неэксплуатационный период
• То withdraw- отзывать
•Indem nification - возмещение ущерба

Exercise 1. Read the text.Learn the name o f clauses and their Russian equivalents.
Answer the questions

A general purpose dry cargo time charter party will usually incorporate clauses
covering at least the basic provisions tabulated below. The provisions may be covered in
different C/Ps by clauses bearing different names, or by numbered clauses without names.

13 0
 Clause name M atters covered by clause
Preamble Identity o f parties; identity and technical specifications of vessel;
Преамбула present position of vessel
Period/Port of Period o f hire; place and time o f delivery to charterers
Delivery/
Time of Delivery
Trade Legality o f vessel’s employment; legality o f 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 o f redelivery by charterers; provisions where vessel is on
a voyage at agreed redelivery time
Cargo space Agreement that entire carrying capacity o f 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 o f charterers’ orders relating to vessel’s
employment, agency, etc; charterers’ indemnification o f owners against
consequences of owners’ servants signing bills o f lading or other
documents, or complying with charterers’ orders; exclusion o f 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 o f master and engineers to make voyage logs
фрахтователей и available to chartereres and their agents
судовой журнал
Suspension o f Hire Suspension o f hire payment for duration o f any “downtime” o f vessel
Приостановление in specified circumstances; charterers’ responsibility for loss o f 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 o f hire when boiler cleaning time extends beyond specified
time
Responsibility and Conditions under which owners will be responsible for delay in
Exemption delivery, delay during the charter, or loss or damage to cargo; owners’
Ответственность и exclusion o f responsibility in all other circumstances; charterers’
исключения из responsibility for loss or damage to vessel or owners caused by
ответственности improper or negligent loading, bunkering or other acts on their or their
servants’ parts
Advances Charterers’ obligation to advance necessary funds to master for
Авансы ordinary disbursements at any port; deduction of advances from hire

131
 Excluded ports Prohibition on Charterers from ordering vessel to a place where
Исключаемые порты disease is prevalent or which would be beyond the agreed limits of the
Crew Agreement, or to any ice-bound place
Loss o f vessels Cessation o f hire from date o f loss o f 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
Залоговое право bill o f lading freight
Salvage Equal sharing o f salvage money after deduction o f masters’ and crew’s
Вознаграждение за proportions and other expenses
спасание
Sublet Charterers’ option to sublet vessel; original charterers’ responsibility
Сдача судна в суб­ for due performance o f charter
чартер
Prohibition on Charterers from using vessel in war zones or for carriage
o f goods which will expose her to risks o f capture; charterers’
War responsibility to pay any war risks premiums, hire for time lost due to
Военная оговорка warlike operations and increased costs due to war zone operations;
liberty o f vessel to comply with flag State orders during war;
cancellation o f charter by either party; and redelivery o f vessel, if Flag
State becomes involved in war
Cancelling Charterers’option o f canceling charter if vessel is not delivered by
Канцелинг agreed date; charterers’ obligation to declare intention to cancel
Arbitration Reference o f disputes to arbitration in London or other agreed place;
Арбитраж nomination o f arbitrators by parties; umpire’s decision where
arbitrators disagree
General Average Rules under which any General Average is to be setteled; non­
Общая авария contribution o f hire to General Average
Commission Amount o f (brokerage) commission to be paid by owners, and party to
Брокерская комиссия whom payable

The vessel
Time charter parties normally include a statem ent o f general particulars about the
vessel including classification, dimensions, tonnages (GT, NT, D W T), constant weight,
draught, grain /bale cubic capacity o f holds/tanks, speed {laden!in ballast), consum ption of
F O and D O (laden/in ballast/in port w orking/idle), type o f engine, fuel used, call sign, etc.
General arrangement and capacity plans may also be required by the charter.
Speed a nd fu e l consumption are vitally important to the charterer for determining
w hether the vessel is performing the contract efficiently and w hether he is entitled to claim
for any alleged under-performance. (This is a frequent subject o f dispute, since modem
bunker prices fluctuate greatly). The declared constant weight (a fixed tonnage allowed for
water, stores, provisions, spares, etc.) is important to the Charterers in their cargo planning.
At common law, the vessel provided by the owners must be seaw orthy for the
purposes o f the contract at the time o f the contract’s making. Thereafter, the owners usually
agree only to exercise due diligence to make the vessel seaworthy for each voyage during
the charter period.
A time charter party usually contains an undertaking by the owners to maintain the
vessel in good condition throughout the charter period, and the owners may be required to
keep the vessel in the condition she was stated to be in when the contract was made.
 A time C/P usually incorporates a clause defining the ship’s permitted employment or
trade limits. Typically, the charterers may employ the vessel only in lawful trades, carrying
lawful merchandise, using only ‘good and safe ports or berths' and sometimes safe
anchorages 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).(see annex 10)
Liability as carrier
When cargo is shipped, the shipper may be given a m ate’s receipt (or equivalent
document) acknowledgement. The First Mate will make up a receipt wherein all the
particulars and amounts o f the cargoes that were loaded are stated, including any shortages
or damaged cargo items.
When the amount o f cargo received by the vessel does not agree with the amount that
is stated in the Charter Party, we speak o f “ d e a d f r e ig h t ” (which is actually the amount of
cargo missing).
The master will now make u p a “ D e a d f r e i g h t L e t t e r ” in which the shortage is stated.
Now the owners o f the cargo will have the right to claim damages. The Bill of Lading will
then become ‘fo u l
The information in a mate’s receipt forms the basis o f a B/L, which in many non-liner
trades is prepared by the shipper.
________________________________ Mate's receipt_____________________________
SHIPPER:

CONSIGNEE

ADDRESS TO BE NOTIFIED:

VESSEL

PORT OF LOADING

PORT OF DISCHARGE

FREIGHT_______________________________ (PR E P A ID / PAYABLE A T D E ST IN A T IO N )

Number of original B/L

CARGO
MARKS & NUMBERS DESCRIPTIONS OF GOODS & PACKAGES GROSS WEIGHT

SPECIFICATION OF FREIGHT AND CHARGES IN €

TO:

MASTER

133
 The B/L funciious as a receipt, as a document o f title and as evidence o f a contract for
carriage. Although a time charterer is a 'disponent owner \ the contract tor carriage
evidenced by a B/L, if a bill is issued to a shipper, is between the real shipowner and the
shipper. If the ship fails to deliver the goods described in the B/L, the owners (and not the
charterers) will therefore be liable to the owners o f the goods. W hether or not time charter
hire has been paid, the shipowner must deliver the goods to the final holder o f the B/L and
frauds occasionally occur where a time charterer was the original cargo ow ner but sells the
cargo 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 the
holder o f the B/L, but receives nothing for carrying the goods.
If a time-chartered ship issues a B/L using her ow ner's ow n ‘house' B/L form and
without mention o f the fact that the vessel is time-chartered (e.g. in statem ent that all terms
and conditions o f carriage are in the relevant C/P dated ...). the contract o f carriage may be
deemed to be between the shipowner and the shipper.
If the charterers insist on the issue o f their own (charterer's) B/L forms, the contract of
carriage will normally be between the charterers and the shipper: in this case the terms on
the B/L should make the identity o f the carrier clear.
The C/P may provide for a supercargo to be carried in order to protect the charterer's
interests dining the voyage (e.g. with respect to care o f the cargo, discharge, etc.)

A gents
Since time charterers require their cargo operations in each port to be overseen by
reliable port agents, particularly in specialized trades, the charterers w ill 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). If the charterer is prevented from making the full use o f the ship for specific,
agreed reasons - which are completely within the control o f the shipow ner - he would not
be responsible to pay hire for the period during which the ship is not at his full disposition,
i.e. during which there is loss o f time to the charterer. This period is known as “off-hire". If
there is loss o f time for reasons which are not within the ow ner's control (strikes, bad
weather) the ship is not “off-hire” and the hire continues to be payable. The “off-hire
events” are the equipment breaking down, the deficiency o f the crew and others.
An off-hire survey is required to determine the extent o f any damage done during the
period o f hire. The vessel may be redelivered “clean” or “dirty” . In the event o f redelivery
not being in the same good order and condition, the charterers w ould be liable for the cost o f
repairs.
The off-hire survey will normally be carried out by an independent surveyor to
ascertain the extent o f damage done during the charter, bunkers ro.b. (remaining on hoanl).
etc. A Redelivery Certificate should be issued to the Master. It may be agreed that redelivery
will be between certain stated IIRS, 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

134
 notice.
A Time charterer may w ant to delay redelivery when freight rates are high, while the
owners may be content w ith a late redeliveiy when freight rates are low, if the hire
negotiated was better than the equivalent freight rate.

1. What m ain p o in ts m ust be included?

2. What are the conditions o f time-chartering?
3. What are the fu n ctio n s 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 p urpose o f an “off-hire ” survey?
7. What inform ation should be m entioned in M ate s receipt?
8. What does a ’fo u l ” 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 morning _______ which we asked if
you could fin d a sh ip __________ six ________ seven thousand tons which we could charter
_________ six months to take shipments o f grain ______________ Baltimore, North America,
___________ various p orts _____________________ the South American coast.

We will need a ship that is capable____________ making a fast 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(l)______________________________ to your letter (fax) of 10 January 20_______, we are
pleased to inform you that we have (2)___________________________________ a vessel that will
(3)_____________ your requirements.
She is the Manhattan, and is (4)______________________________docked in Boston. She is a
(5)___________ carrier with a (6)_____________________________________ o f seven thousand tons.
She has a(7)__________________________ speed of 24(8) _____________ , so would certainly
be(9) ______________________ jo f ten trips in the period you mentioned.

Please fa x us to(10)________________________ the charter and we will send you the charter
party.
Yours sincerely____________________________

135
 2. Underline the direct answers to the enquiries in the previous letter.
Exercise 4. Read the Time charter. FiU in the gaps in the Time charter using
corresponding Russian terms and match them with the English ones
» 1. Судовой брокер
5 2. Название судна
3. Дедвейт по летнюю грузовую марку, определяемую Торговой палатой
- [А. Дата канцелинга
!) ь 5. Брокерская комиссия и кому оплачивается
[I ! 6. Место или рендж возврата судна
'i It 7. Количество бункера при возврате (указать минимальное и максимальное
количество)
I -'8. Позиция судна в настоящее время
, Vc9. Порт и время сдачи
\ ПО. Постоянный запас бункера
А О 11 • Оплата за аренду (валюта, метод оплаты, банковский счет)
£ 12. Валовая/чистая грузовместимость
$ 13. Мощность главного двигателя
\ 014. Зерновая/киповая вместимость в куб. футах
' -215. Скорость в узлах.. .при потреблении.. .тонн
(416. Период тайм-чартера
Я £>17. Согласованные дополнительные статьи, предусматривающие особые условия,
если согласованы
18. Границы использования судна/ специально оговоренные исключаемые грузы
^ 19. Место арбитража
2 Я 20. Военная оговорка

1. Shipbroker 2. Place and date

3. Owners/Place o f business 4. Charterers/Place o f business (Cl. 1)

5. Vessel’s name 6. GRT/NRT

7. Class 8. Indicated horse power

9. Total tons d.w. (abt.) on Board o f 10. Cubic feet grain/bale capacity
Trade summer freeboard

11. Permanent bunkers (abt.)

12. Speed capability in knots (abt.) on a consum ption in tons (abt.) o f

13. Present position 14. Freight payment (state currency and

method o f payment; also beneficiary and bank
account)________________________

136
rj^pm tôfdeîïvery (CI. 1) 16. Time o f delivery (Cl. 1)

■[^Shippers (state name and address) (C1.6)

fgTBunkers on re-delivery (state min. and max. quantity) (Cl. 5)

19. Cancelling hire (Cl. 6) 20. Hire payment (state currency, method and
place o f payment; and bank account) (Cl. 6)

21. Place or range o f 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 o f arbitration (only to be filled in if
place other that London agreed (Cl. 23)

25. Brokerage commission and to whom 26. Number o f 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 o f a
conflict o f conditions, the provisions o f Part I shall prevail over those o f Part II to the
extent of such conflict.
Signature (Owners) Signature (Charterers)

1. 2.

3. 4.

5. 6.

7. 8.

9. 10.

11.

12.

137
13. 14.

15. 16.

17.

18.

19. 20.

21. 22.

23. 24.

25. 2 6.

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 и сь (С удовладельцы ) П о д п и сь (Ф рахтователи )

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 fo r
all provisions and wages, for
insurance o f the vesselfo r all deck
and stores engine-rooms and
maintain her in a thoroughly
efficient state in hull and machinery
during service
B. Charterers to pay as hire the rate
stated in Box 19 per 30 days, until
her redelivery to her Owners. In
default o f payment Owners to have
the right o f withdrawing the vessel
from the service of the Charterers,
without noting any protest and
interference by any court and
without any prejudice to any
claim....
1. Если судно погибло или пропало без вести, арендная
плата не выплачивается с даты гибели судна. Если дата
гибели не может быть установлена, то арендная плата
выплачивается в половинном размере со дня получения
последнего сообщения о судне до расчетной даты
прибытия в порт назначения.
2. Любой спор по условиям данного чартера подлежит
передаче в арбитраж в Лондоне. Один арбитр
номинируется судовладельцами, другой
фрахтователями. Если эти арбитры не могут прийти к
соглашению, то дело передается на рассмотрение
суперарбитра, который номинируется ими. Решение
арбитров или суперарбитров является окончательным и
обязательным для обеих сторон |

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"CT Should the vessel be lost or
missing, hire to cease from the date
when she was lost. If the date o f
loss can’t be ascertained half hire to
be paid from the date the vessel was
last reported until the calculated
date of arrival at the destination.
D. Should the parties agree to
cancel the Charter, Owners to
indemnify the Brokers against any
loss of commission but in such
case the commission not to exceed
the brokerage on one year’s hire
E. Any dispute arising under the
Charter to be referred to arbitration
in London. One arbitrator to be
nominated by the Owners and the
other by the Charterer, and in case
the Arbitrators shall not agree to the
decision of an Umpire to be
appointed by them, the award o f
Arbitrators or the Umpire to be
final and binding upon both parties
F. Owners to have a lien upon all
cargoes and sub-freights belonging
to the Time-charterers and any B/L
freight for all claims under the
Charter, Charterers to have a lien on
the vessel for all money paid in
advance and not earned
G In the event o f the vessel being
driven into port or to anchorage
through stress o f weather, trading to
shallow harbors or suffering an
accident to her cargo, any detention
of vessel and/or expenses resulting
from the detention to be for
Charterers’ account even if such
detention and/or expenses, or the
cause by reason o f which either is
incurred be due to, or be
contributed to by the negligence o f
Owners’ servants
3.Судовладельцы обязаны предоставить и оплатить все
снаряжение судна, обеспечивать палубное снаряжение и
снаряжение машинного отделения, поддерживать
судно, корпус и машины в полностью пригодном к
эксплуатации состоянии
4. Судовладельцы имеют залоговое право на все грузы,
субфрахт, причитающийся тайм-чартерным
фрахтователям, и на любой коносамент в обеспечение
любых претензий по чартеру. Фрахтователи имеют
залоговое право на судно в обеспечение всех денежных
сумм, выплаченных авансом, но не заработанных судном
5. В случае, если судно вынуждено зайти в порт-
убежище либо стать на якорную стоянку из-за плохой
погоды, либо если грузу судна нанесен ущерб, время
любой задержки судна и/или вызванные такой
задержкой расходы, относятся за счет фрахтователей,
даже если такая задержка и/или расходы, либо причина,
вызвавшая эту задержку или расходы, являются
следствием небрежности со стороны служащих
судовладельцев или связаны с ней
6. Если стороны договариваются об аннулировании
чартера, судовладельцы гарантируют брокерам
возмещение любых убытков от потери комиссии, но в
этом случае размер комиссии не должен превышать
размер брокерской комиссии от суммы арендной платы
за 1 год
7.Фрахтователи выплачивают арендную плату по ставке,
указанной в..., за каждые 30 дней, до момента возврата
судна из тайм-чартера его владельцам. Если аренда не
выплачивается, судовладельцы имеют право изъять
судно из эксплуатации у фрахтователей, не принимать во
внимание протесты, не прибегать к помощи судебных
органов, причем это право осуществляется без ущерба
для претензий в иных отношениях...
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Exercise 6.1. Read the sample o f a deadfreight letter. Fill in the gaps using the following
phrases. Translate into your native language
formal notice completion o f loading acknowledge foul
please be informed to claim inserted has loaded

Dear Sirs,

(1) _________________________ that the vessel under my com m and

(2) ______________ light o f deadweight to the am ount o f 510 m etric tons o f Methanol.
According to the vessel’s ullages taken upon (3)_____________________________ at the
COMCO-Installation at Swansea the cargo totaled 7,990 m etric tons o f M ethanol.
However, you(4)__________________ a quantity o f 8,500 m etric tons in the B ill o f Lading,
which means that there is a difference o f 510 metric tons.
We will therefore sign a (5)_______________ Bill o f Lading.
I herewith submit (6)________________________ , reserving ow ners’ right
(7)_________________ deadfreight as they may consider necessaiy as per covering Charter
Party.
Please (8)_____________________ receipt o f this letter.

Yours faithfully,
S. Brown, M aster o f M.T. Corrona

(Ullage - незаполненная часть объема(цистерны), пустоты)

Exercise 6.2.FUI in a deadfreight claim (page 115)

Exercise 7. Decide if the statements below refer to (a) owner; (b) charterer according to
Time charter

1. Provide and pay for all provisions and wages, for insurance o f 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 sto re s_______________
5. Provide and pay for loading and unloading o f cargoes and cleaning o f cargo
tanks___________
6. Provide and pay for custom duties, permits, import duties, clearance
expenses______________

Exercise 8. Translate from Russian into English

1. По условиям тайм-чартера судовладелец оплачивает все постоянные расходы

(заработная плата и питание экипажа, содержание судна в надлежащ ем техническом
состоянии и т.д.), а фрахтователь - все переменные расходы (стоимость топлива,
портовые сборы и расходы, стоимость погрузки и выгрузки).

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 2. Фрахтователь обязан сдать судно обратно после истечения срока чартера в том
же состоянии, в котором оно было ему передано.
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.
 Unit 18
THE CONTRACT BETWEEN SHIPOWNER AND CARGO
OWNER

Vocabulary
• Common carrier - общественный перевозчик; перевозчик на общих для всех
основаниях
• Private carrier - частный перевозчик; судно, закрепленное на перевозках грузов
частной компании
• Inherent vice - свойственный, присущий (дефект), порог
• Jettison - выбрасывание предметов (грузов) за борт для спасения судна
• Maritime “adventure ” - морское предприятие
• Bailee - депозитарий - лицо, которому переданы товары на ответственное
хранение; хранитель
• Consolidation o f cargo shipments - укрупнение (объединение) мелких партий
грузов.
• То deviate from the contract - отклоняться от контракта
• Without undue delay - без чрезмерной, ненадлежащей задержки

Exercise 1. Read the text and answer the questions

The Carrier
- is a party who agrees to carry, on a business basis goods or persons from one place
to another. M ost shipowners have the legal status o f carrier.
The law recognizes 2 kinds o f carrier: the common carrier and the private carrier.

Common carriers
- advertise themselves as being ready to can y 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 o f 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 o f the common law obligations by stating their special terms o f carriage.
Although the law allows any carrier to do this the U nfair 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 o f his common law obligations
must be clearly stated if they are to protect him in law. (M ost carriers print their terms on
their Bs/L or other contract o f carriage documents).
If a court holds that his contract terms were unreasonable or unfair, a private carrier
may find him self reverting to the position o f a common carrier.
As a private carrier, a carrier becomes a bailee o f the goods carried; as such he is only
liable for damage or the consequences o f delay occurring through his negligence.

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 Most shipowners make them selves private carriers.

Common law obligations o f carriers

All carriers o f goods or passengers by sea (both common and private) are subject to
ihe th re e c o m m o n l a w o b l i g a t i o n s , which arc that:
1. The carrier m ust provide a vessel which is seaworthy for the purpose o f 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 m ust 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 o f carriage on Bs/L

Common law exceptions from liability

Recognising the special nature o f the perils facing a carrier by sea, the English courts
have reduced the strict liability o f a common carrier to t h e f o l l o w i n g s i x c o m m o n l a w
e x c e p tio n s f r o m l i a b i l i t y :
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 o f the goods (but excluding robbers, rioters and pirates);
3. Inherent vice in the goods , i.e. a natural tendency o f a commodity to deteriorate
without human negligence, e.g. fruit and fish deteriorating, liquids fermenting, loss o f
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 o f
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 o f 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 o r 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 w hen the
true cause o f 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 unscaworthy at the start o f 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

143
own vessel, instead buying a volume o f 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 issued 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 o f the carrying ship, the NVOC is a shipper, and will be issued with a B/L
like any ordinaiy 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 o f 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?

Exercise 2. Match terms with their definitions

1. A ct o f God A. Insurance against negligence or latent deficiencies

2. Perils o f the sea B. Types o f cargoes that are transported from a specific
port to prevent smuggling
3. Negligence clause C. The owner o f the vessel can’t be held responsible for
damage sustained to the vessel due to natural disasters
4. Law ful trade D. Deficiencies that can’t be detected w ith 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 th e n ouns in th e right colum n as
objects__________________________________ _____________________________________
VE RB S NOUNS
To deteriorate fruit
goods
damage
statement
ship/ vessel
loss
services
B/L
cargo
liability
contract

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Exercise 4. H ere is a list o f som e o f the m ajor participants in the shipping procedure:
Shipowner, Shipper, Consignee, P ort Authority, Stevedores, Customs House, and
Forwarding Agents. M atch th e definition a n d the term

D E F IN IT IO N N A M E O F PARTIC IPANT
1. Company engaged in loading/discharging
and stowage o f cargo on board ship
2. Company that operates, manages or owns
vessels and undertakes the carriage o f 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 w hom it is consigned
5. A governmental or administrative body
governing the safety and arrangement o f
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. Sca n th e text on the beginning o f shipping procedure. Fill in the gaps using
the follow ing terms. Translate into y o u r native language
(W harfinger - начальник причала; представитель судовладельца на причале)

cargo Port A uthority receipt agents tonnage bills o f lading

shipper schedule voyages draught docks shipm ent wharfinger
shipping note

The shipping procedure starts when cargo liner, operating on (1) _____________
________________ , at her terminal port, and the owners or ( 2 ) _____________ have
estimated the date when she will be ready to start loading for the next voyage.
First, application is made to the (3)___________ _________________ __ for a berth
giving the date she will proceed alongside and later, when it is known, the actual time,
particulars o f draught, information regarding the (4)______________ _ and type o f
(5) ____________ she will work, and the maximum (6)______________ anticipated when
loading has been completed.
At the appointed time, the goods are transported to the
(7) ______________ accompanied by a (8)______________________ ________________
made out in duplicate, which is the wharfinger’s authority to receive the goods and store
them before (9)___________________ This note gives details o f marks, references,

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number and description o f packages, weight, measurement and port o f destination. Along
with this note copies o f the Shipping Order and M ate’s (10)_______________ are completed.
The note is signed by the (11)_________ __________ and returned to the
(12)________________ , or his representative, who then lodges (13)____ _____
_______________ with the shipowner or agent.

Exercise 6. Translate from English into your native language

1. A common c arrier. “Negligence o f the consignor” means negligence of the
shipper or sender o f the goods, e.g. where insufficient or defective packing o f goods inside
containers or cases leads to damage. “Fraud o f the owner or consignor o f 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 c a rrie r usually inserts in his contract all o f the common law exceptions
plus others such as loss, damage or delay resulting from a number o f reasons, barratry
including. Barratry is a wrongful act willfully committed by the master or crew to the
prejudice o f the owner or charterer.
3. A non-vessel-operating c a rrie r (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 o f the
carrying ship (sometimes called the performing carrier). Numerous NVOCs operate in the
liner trades.
 UNIT 19
BILL OF LADING
Parti

Vocabulary
•Negotiable - оборотны й
• Shipping note - ордер на погрузку
• To tally - подсчитывать
• Tallyman - тальман
•In triplicate - в 3 экземплярах
• ‘Apparent g o o d order a n d condition надлежащее по внешнему виду состояние
• Blank bill o f lad in g - незаполненный коносамент
• Endorsement - индоссамент, передаточная надпись на обороте документа
• Contractor - подрядчик
• “A ccom plished” - выполнено
• Void - недействительный
• Delivery order - деливери-ордер, сдаточный ордер
• То tender - предлагать
• Tenor - текст документа; срок действия

Exercise 1. Read the text and answer the questions

A B/L - is a receipt for goods either received (before shipment) or shipped on board.
- is good evidence o f the existence and terms o f a contract between the shipper and
carrier. (A contract o f carriage may exist w ithout issue o f a B/L, however).
- is a document o f title, signifying that the holder has the legal right to possession o f
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 o f title to the goods it describes, (see annex 14-15)
As the bill o f lading passes through the hands o f the banks it represents security for
any money they may have advanced on the goods and can be held by them until the buyer
has satisfied his obligations to the issuing bank.
For a better understanding o f the main functions o f a B/L it is useful to know t h e b a s i c
d o c u m e n ta r y p r o c e d u r e s u s e d in s h ip p in g o p e r a t io n s .

D ry 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 o f goods (as stated by shipper) is presented to
Chief Mate or Master. It contains the name o f the shipper, the name of the ship, the port o f
destination, the description o f the cargo (including size, weight and quantity o f packages)
and other relevant details identifying the shipment. The shipper prepares the shipping note
which is checked and signed when the goods are received for shipment by the freight
forwarder, port authority or shipping agent o f the vessel. The receipted copy is exchanged
for the shipped bill o f lading signed by or on behalf o f the ship after loading has been
completed.
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-

147
taken cargo weight or quantity by some means.
5. C hief mate compares ship’s tally or in-taken cargo tonnages with details oi
shipping note and issues a m ate’s receipt from ship’s triplicate book. W hen a mate's receip
is issued it's prima facie evidence o f receipt o f the goods in the order and condition market
on the mate's receipt. Mate s receipt contains accurate and truthful details o f quantity ant
condition o f goods, i.e. their ‘apparent good order and condition’ w ith references to an;
shortage, damage, etc. One or more copies are given to shipper’s representative; ship retain:
one copy in book. (In practice the port agent may issue m ate’s receipts for the carrier). I
defines the conditions on which the charterer, shipper or his agent are empowered ant
authorised to issue bills o f lading.(see annex 16)
6. Shipper obtains a full set o f blank bills o f lading (e.g. “C ongebill” forms, see anno
14-15) from carrier, prints or types in details o f shipped goods exactly as stated on mate’s
receipt. Set most often comprises 3 originals, but sometimes few er and very occasionall)
more, with several copies (marked “Copy non-negotiable”) for various parties and purposes
(often including one marked “C aptain’s Copy”).
7. Shipper tenders all original bills for signing by or on b ehalf o f the carrier, i.e. b>
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 o f m ate’s receipt, stamps (w rites any required
endorsements,) then signs all original bills in set.
9. Full set o f signed original bills is issued to shipper together with copies as required.
(M ate’s receipt, as issued by ship, may be demanded by carrier before issue o f bills of
lading). M aster retains one copy o f B/L on board as “Captain’s Copy”).
10. Ship sails from loading port.
11. Shipper sends full set o f 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 o f consignee or receiver and become legally delivered.

The above is a simplification o f the procedure in modem shipping operations. The

documentary credit system is often used to facilitate early payment o f the seller by the
buyer, and this complicates the journey o f 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 m ay 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?

148
 7. What is the fu n c tio n o f a n a g e n t in the p ro ced u re?
8. Who issues the d e liv e r y n o te a n d w hy?

Exercise 2. Match the p a rts o f the bill o f lading with the descriptions below
1. The date o f the contract between the exporter and the shipping company
2. The name o f the importer
3. Details o f the goods
4. The name o f a ship
5. Money paid to the shipping company before the journey
6. The place where the goods are unloaded
7. The name o f the shipping company

149
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. S H I P P E R te n d er s B / L __________________

<

2. C H IE F M A T E

3. AGENT/

A U T H O R IT Y

4. C O N S IG N E E

Exercise 4. Scan the text “What is “apparent good 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 Rules (1)_________________ that carriers must at
least state on the bill o f lading the “apparent good order and condition” o f the goods
(2)__________________ if the shipper so demand. This article discusses how members can
balance their duty to customers and their right (3)________________ _ themselves from
cargo claims.
“Apparent good order and condition ” (4)_____________________ 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(5)________________ and in such
condition as (6)__________________ the ordinary incidents o f the voyage. If you receive a

150
consignment which is obviously insufficiently packed, you must not
(7)____________________ 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 (8)___________________________ by reasonable shipping practices and
members should make sure that their standard transport documents contain such clauses.

Exercise 5. Translate from Russian into English

7. Коносамент является одним из основных документов, применяемых при
таможенном оформлении и таможенном контроле товаров, перевозимых морским
транспортом. Он удостоверяет право собственности на отгруженный товар.
8. Содержание коносамента определяет правоотношения между перевозчиком
груза и его получателем. Коносамент выдается перевозчиком отправителю после
приема груза к перевозке, служит доказательством приема груза и удостоверяет факт
заключения договора.
9. Коносамент выполняет 3 основные функции: 1. Является официальной
квитанцией судовладельца (перевозчика), подтверждающей, что товары, которые
находятся в указанном виде, количестве и состоянии, отправлены в указанное место
назначения на конкретном судне; 2. Удостоверяет заключение договора морской
перевозки, который фактически заключается до подписания коносамента, и повторяет
в деталях его содержание. 3. Является товарораспорядительным документом,
позволяющим покупателю распорядиться товарами путем передаточной надписи и
предоставления коносамента.
10. Пока судно в пути, коносамент может переменить нескольких
владельцев. Покупатель судит о товаре по записям, сделанным в коносаменте.
Происходит купля-продажа не собственно гр у за, а грузовых документов.
 UNIT 20
BILL OF LADING
Part II

Vocabulary
• Superim posed - дополнительные
• To indemnify - гарантировать возмещение ущ ерба
• A letter o f Indemnity (or '‘back letter’) - гарантийное письмо
• To be unsound - непрочный, в ненадлежащем состоянии
• A “through ” B/L - сквозной коносамент
•A “receivedfor shipm ent" B/L - коносамент на проверенный, но не погруженный
груз
•A “shipped ” or “on board” B/L - коносамент на груз, принятый на борт судна
•A “straight” B/L - именной коносамент
• An “order” B/L - ордерный коносамент
• A bearer B/L - коносамент на предъявителя
•A “groupage ” B/L - сборный коносамент
•A house B/L - внутренний коносамент
• A derogatory clause - нарушающий (права)
• То make good - компенсировать

Exercise 1. R ea d the text a n d answer th e questions

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 “cla u sed’. This is a B/L which contains clauses, stamped,
written or typed, either in the body o f the document or in the margin, w ith remarks such as
“tom bags”, “rusty drums”, etc. Banks may be reluctant to accept bills o f lading with
clauses because clauses could easily be construed as relieving the carrier o f any liability for
loss, damage or delay o f the goods.
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 Indem nity (or “back letter*). Such document is a written undertaking by
one person to make good the loss another person can suffer as a result o f the act o f the first.
For example, the master o f a vessel may be promised ”a letter o f indemnity” by a shipper
for signing a clean bill o f lading prepared by a shipper when the master is in doubt as to the
condition o f the goods. Another example is where a vessel arrives at the port o f delivery of
the goods but owing to the documentary credit system the bills o f lading have not yet
arrived. The master or agent o f the vessel may be requested to deliver the goods to an
alleged consignee who produces a “letter o f indemnity”, which may or may not be
guaranteed by a bank. The first LOI is fraudulent because it’s a false misrepresentation of a
material fact. The second may also be fraudulent, especially if it is not guaranteed, thus
imposing considerable liability on the carrier. If the LOI is guaranteed by a bank, this means
that the bank can also become liable to indemnify the liability o f the earner. LOI may be

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offered by the Shipper prom ising to indem nify 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 of
Indemnity o f this type in return for clean Bs/L make the master a party to an act of
deception or fraud on banks, consignee / buyer, and insurers, since it is an attempt to obtain
payment for goods know ing them to be unsound. There may be personal criminal liability
for fraud on the part o f th e carrier and the master, and a heavy financial liability on the
shipowner, (see annex 13)

Types o f B/L

B/L forms are produced in many styles by shipping companies, shippers, charterers,
freight forwarders and organizations such as BEMCO. (see annex 14-16)
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. M ost liner shipping companies print their own
long-form bills o f lading w ith 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 m ost m ajor carriers, although the wording may differ.
A “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 of
transport, which is common in many liner services. Nowadays developing intermodalism
can cover the situation where the seller entrusts his goods to one person or company who
undertakes to transport or arrange to transport the goods to the buyer’s destination, bearing
one regime o f liability. 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 fo r shipment” B/L. It’s a bill o f lading issued by the carrier before the
goods have been loaded. It 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 w hile they are in his care.
When the goods are eventually shipped the “received for shipment” 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 on board” Bs/L as being safer than the
“received” version.
A “straight” B/L. It states that the goods are consigned to a specified persoa It can't
be negotiated and it’s marked “Non-negotiable” on its face. Only the consignee stated on the
B/L can take delivery o f the goods.
An “order” B/L. M ost o f the Bs/L used in international trade and shipping are o f this
type. If the B/L shows consignee: “to order”,then the shipper has the power to endorse the
bill of lading and give orders to whom the cargo should be delivered. An endorsement is
simply the signature o f the shipper on the back o f the bill o f lading. An endorsement in

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blank is Ihc signature o f the shipper alone. This means that any person to whom the bill of
lading is intentionally passed can claim to be the proper holder o f the bill o f lading. A
special endorsement is where the shipper wishes to direct the shipowner to deliver to a
particular person. In that case, the shipper puts his signature and the name o f the intended
recipient on the bill o f lading.
This process converts the order B/L into a “bearer B/L”.
A “bearer B /L ”. This document allows the goods to be delivered to the holder of it.
The name o f the consignee may be stated as a “bearer” . It may also be an “O rder B/L”
without stating to whose specific order the bill and delivery o f cargo under it are subject.
For example, a master or agent may issue B/L naming the shipper. The B/L may be an
«Order B/L”, not naming the consignee but leaving the shipper free to endorse the name of
the person to whom the B/L will be transmitted. The shipper may then endorse the bill in
blank, with no identifiable name, and transmit the document to the buyer as consignee.
When the buyer has physical possession o f the bill it will be a “Bearer B /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.
A freight forwarder can act as agent for a group o f exporters o f smaller consignments.
The small shipments are “ L e s s t h a n C o n t a i n e r l o a d ” ( L C L ) . When the freight forwarder
consolidated the consignments, he is called “a groupage contractor” and may issue to each
customer certificate o f receipt that contains the terms o f the contract o f carriage between
him and the customer. Such documents known as a “house B /L ” which is given 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, (see annex 17).

S ig n in g B s/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 m ate's receipt issued; this should be identical to the original m ate'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 m ate'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 m ate'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;
7. The number o f original bills in the set is stated.
E v e r y o r ig in a l in t h e s e t m u s t b e s ig n e d .

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 Ship's agents and Bill o f Lading
Ship's agents should be mindful o f the following points when handling bill o f lading:

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 a “to order” B/L?
3. A re 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 num ber o f packages?
7. Is there a transhipm ent clause or remark?
8. Is there a “notify” address?
9. A re the loading and discharging ports properly named?
10. Do the references to the payment o f the freight agree with the manifest and has
j the freight b een collected or is it still due?___________________________________________
1. W hat does a clean B/L state?
2. W hat does a dirty B/L mean?
3. In w hat case m ay a letter o f Indemnity be offered?
4. W hat does a “com bined” B/L cover?
5. W hat is the difference between “long-form ” an d “short-form ” Bs/L?
6. When is a “through ” B/L issued?
7. For what kinds o f goods is 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. F or w hat purpose is a “container” B/L used?
11. Who issues a “h o u se” B/L?

Exercise 2. What kinds o f B/L are these?

I Consignee Bulk cargo to be sent Case No. 3
P. Brown or order from London to missing
Copenhagen via Hamburg
: 1 2 3

J
j Goods in Liverpool Consignee Goods received in
! awaiting shipment P. Brown apparent good order and
condition
: 4 5 6

) Goods shipped CNTR to be sent from Part - loads shipped by

1 and waiting to depart London to Paris via Dover Newton’s Forwarding
j and Calais Agency
8 9
! 7
!

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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

DEFINITION 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”

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Exercise 4. Fill in the gaps in the complaint about unclean bills of lading using the
following words. Translate into your native language

Tofail damage consignment apparent to be due

should a letter o f indemnity to note insurance certificate
______________ negotiable_________ notation_________ to review_________________________
Dear Sir or Madam,
We have received the B/L and (1)_______________ ___________________ for the
(2) ___________________ o f 50 tons of palletized teak on board m.v. “Colombo”, which
(3)____________ to dock in Liverpool at the end o f this month.

We (4)____________ with dismay, however, that the Bs/L include

the(5)____________________”6 pallets damaged”. As you well know, our company sells timber
“on water” to European importers and unclean B/L is only (6)_________________________ in
exceptional cases. We (7)____________ to understand why you didn 7 provide the shipping
company with a (8)_______________ __________________ as soon as it was
(9) _____________________ that the goods were not in perfect condition.

It only remains to be hoped that the(10)______________________ is to the palates and not to

the timber. (11) _____________________ the consignment prove unsaleable we will
(12)_____________________ all future contracts with your company and seek redress for the loss
of trade._________________________________________________________________________________________________
( to seek redress - требовать удовлетворения)

Exercise 5. Translate from Russian into English

1. Коносаменты ордерные и на предъявителя являются оборотными. Они дают
их держателю возможность распоряжаться товарами, пока они находятся в пути или
заложить коносамент в банк до прибытия товара.
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. В международной практике «чистый» коносамент часто выдается
перевозчиком грузоотправителю в обмен на гарантийное письмо. В международной
практике различаются коносаменты бортовые и на принятый для погрузки груз. Если
товары не перевозятся в контейнерах, коносаменты обычно являются бортовыми.
Когда судовладелец выдает бортовой коносамент, он подтверждает, что груз погружен
на борт судна. Если он выдает коносамент для погрузки на борт судна, он
подтверждает, что товары доставлены под его охрану и подготовлены к отправке в
контейнерах на заводе, на складе экспортера или на контейнерном терминале вне
порта.
4. Сквозные коносаменты используются, если морская перевозка составляет
только часть общей перевозки и товары должны перевозиться разными наземными и
морскими перевозчиками. Сквозной коносамент типичен для современных
контейнерных перевозок, когда товары перевозятся от места погрузки до места
назначения в одних и тех же контейнерах, но различными видами транспорта.
Грузоотправитель заключает договор перевозки только с перевозчиком, который
подписывает сквозной коносамент.

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 5. Н а первой странице коносамента приводятся 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. 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.
 UNIT 21
MARINE INSURANCE
P art I

Vocabulary
• In s u r e d - застрахованный, страхователь
• Insurer (underwriter) - страховщик
• Insurance adjuster - оценщик размера страхового убытка
• Insurance certificate - страховое свидетельство
• Premium - страховая премия; страховой взнос
• H ull an d machinery insurance -страхование корпуса и машинного отделения
• То suffer a loss - понести убытки
• То claim a compensation - требовать возмещения
• То take out insurance - заключить страховку
• Act o f G od - стихийные бедствия, действия непреодолимой силы
• Vermin - вредитель
• Cover - (зд.) покрытие
• Coverage - страхование, страховое покрытие
• Cover(ing) note - ковернота, временное свидетельство о страховании
• Total estim ated call - требование взноса
•A dvance call - предварительный взнос
• Supplem entary call - дополнительный взнос
• Refund - возмещение убытков
• Income - доход
• Outgoing(s) - расходы, издержки
• P & I club - клуб взаимного страхования
• Indem nity - возмещение, гарантия от убытков
• Conveyance - перевозка, доставка, транспортировка

Exercise 1. R e a d th e text a n d answ er th e questions

M a rin e insu ra n ce is the oldest form o f insurance. Back in the M iddle 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 ju st one shipment. So somebody came up
with the idea o f forming a group to spread the risk - and marine insurance was bom . Very

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 The ship and cargo owners (the insured) each pay a percentage o f the value o f their
goods (the prem ium ) into a fund adm inistered by the insurance Co (the insurer). Should one
o f the insured then suffer a loss, he can claim com pensation 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 w hich it is possible to take out insurance include:
1.So-called Acts o f God such as fire, floods, earthquakes, etc;
2. Loss o f the goods through being w ashed overboard:
3. Damage to the goods, e.g. by breaking, bending, etc.;
4. Dam age to the goods by vermin such as rats and mice;
5. Loss o f the ship on which the goods are being transported, e.g. by sinking or
collision w ith another ship:
6. Loss o f the goods through theft or non-delivery:
Standard insurance policies generally do not cover political risks as w ar 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 w ill depend on th e term s o f the sales
contract.
The London marine insurance market is the largest insurance m arket in the w orld
covering marine risks. It comprises:
1. Lloyd’s (the Lloyd market) and
2. Companies represented at the International U nderw riting A ssociation (IUA)
(sometimes referred to as the Companied market).
Lloyd’s is not a company, but a society o f individual and corporate m em bers 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: m a rin e (18%
o f Lloyd’s business in 2001), n o n -m a rin e (59%), av iatio n (7% ) and m o to r (16%).
M embers o f Lloyd’s provide the capital w hich supports the risks underw ritten at Lloyd’s.
They are either w ealth y in d iv id u al m em b ers (called "nam es”), w ho trade w ith unlim ited
liability, or c o rp o ra te m em b ers who trade w ith lim ited or unlim ited liability. In 2001 there
w ere 2,852 individual m embers and 854 corporate members.
P&I clubs (properly called protection and indemnity associations), o f w hich several
are based in the UK, also provide marine insurance. “P ro te c tio n ” in the title originally
referred to shipow ners’ protection from the one fourth o f collision liability that
traditionally, London hull and machinery insurers didn’t cover, w hile “ in d e m n ity ” referred
to the club’s indemnity, or compensation, for liability to cargo under a contract o f carriage.
They are associations o f m ember shipowners and charterers, ow ned and controlled by the
insured shipow ner or chartered members, for the purpose, basically, o f m utual insurance
against third party liabilities which arise in connection w ith the operation o f ships. P& I
clubs include the 13 members o f the International G roup o f P& I Clubs (and their 4 associate
clubs) and a m em ber o f small independent clubs.
W hereas w ith hull and machinery insurance the cost o f the insurance (the prem ium )
is fixed at the start o f the period o f insurance, a P&I Club m em ber w ill not know exactly
how m uch his insurance will cost for at least a year, and perhaps not for 4 or 5 years.
Each P&I Club sets a prem ium rating for an individual ow ner reflecting the risks
against w hich he requires cover, his fleet’s ship types, ages, GRT (G ross Registered
Tonnage), trades, flags, crew nationality exposure to risks and other factors including the
m em ber’s claims record and the likelihood o f large claim s in the com ing year.

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 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 arc 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 arc
made when income (calls+investments) exceeds outgoings (claims+expenses).
P&I Clubs retain correspondents at numerous ports worldwide.
In all cases correspondents:
3. are, for legal reasons, representatives, and not agents o f the club;
4. will attend members’ vessels when so requested by the master or agent to protect a
member’s interest;
5. 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 fo r an individual owner?
9. What calls should be paid by P&I members?

Exercise 2. Match terms with their definitions

1. Insurance adjuster
2. Insurance policy
3. Insurance premium
4. Insurance certificate
5. Document o f title
6. Insurance claim
7. Cover note
A. A demand by an insured party on the insurer
for payment under an 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
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
D. A person employed by an insurance company to
settle claims under policies issued by the company
E. Money paid by the insured to the insurers under
the conditions in an insurance policy
F. A short document issued by an insurance
Company to an insured party, that an insurance
contract covers the insured against certain stated
risks andmentions the essential conditions o f the
policy
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

161
2. Who are the brokers on this certificate?
3. To what destination is the consignm ent covered?
4. What is the total cover for the consignment?
5. W hat should be done in the event o f loss or damage?

162
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 fo r composing a letter. Translate into your native language
(AR (All Risks)

“K ENT, CLARKE g t CO. 1 T D

SO U TH BANK H O U SE -B O R O U G H R O A D -LO N D O N 5 El OAA
T E L E P H O N E:+ 4 4 (0)20 79 28 77 16 •F AC 5 1M IL E :+ 4 4 (0)20 79 28 7111
Email: simpsonj@kencla.com

Facsimile

To W o r l d w i d e I n s u r a n c e L td

Fax 0 2 0 7 2 6 3 6925

From J.D. S im p s o n

D a te 15 M a y 2 0 —

P ages 3

S u b ject D e lt a s h i p m e n t

W e w i l l b e s e n d i n g o n b e h a l f o f o u r c l i e n t s , D e lt a C o m p u t e r s L td, a
c o n s i g n m e n t o f 2 0 c o m p u t e r s t o N .Z . B u s i n e s s M a c h i n e s P ty , W e l l i n g t o n ,
N e w Z e a la n d . T h e c o n s ig n m e n t is t o b e l o a d e d o n t o t h e Northern Cross,
e x - T i l b u r y 18 M a y d u e W e l l i n g t o n 25 J u n e .

D e t a ils o f p a c k in g a n d v a lu e s a r e a tt a c h e d . P le a s e q u o t e AR p o r t- to -p o r t
ra te.

W e w o u l d a p p r e c i a t e a p r o m p t r e p ly .

J. V. SuHfxotv
J.D . S i m p s o n (M r)
S u p e r v is o r

163
 Exercise 6. Read the reply to the letter, quotation fo r marine insurance.
Define the terms o f payment. Translate into your native language

Chairman
WORLDWIDE INSURANCE L td A.L Galvin a c A fis
Worldwide House, Vorley Road, London n 1 9 5H n M anaging Director
P i t Erwin CIS
T elephon e : + 4 4 (0)20 7263 6 216 Directors
:
F a x + 4 4 (0 )20 7263 6925 LSwanne, T it Crowe MC ;
Email: d.adair@worldwide.co.uk H.B.SideyMA j

FAX

To J. Sim pson - Kent, Clarke & Co.

Ref 3982/1S098
Fax 02079287111
Subject D elta sh ip m e n t q u o ta tio n
Pages 2

D ear M r Sim pson

T hank you for your fax of 15 M ay reg ard in g th é above cover.

I notice th e n e t a m o u n t o f th e invoice is £22,000, a n d p a y m e n t is b y le tte r of

credit. I w ould th erefo re su g g est a p o rt-to -p o rt AR v a lu e d policy fo r w h ich
w e can q u o te £4.3 5p%.

We w ill issue a cover n o te as soon as yo u have co m p leted a n d r e tu rn e d th e

a tta c h e d declaration form .

Yours sincerely

V c u m tA c L a h r
D avid A dair
M an ag er
Q uotations D e p a rtm e n t

A d e c l a r a t i o n f o r m g i v e s th e in s u r a n c e c o m p a n y i n f o r m a t io n a b o u t t h e s h ip m e n t s o
t h e y c a n p r e p a r e a n in s u r a n c e c e r t i f ic a t e .

Exercise 7. Fill in the gaps in the letter on taking out insurance cover using the following
English equivalents

To provide to accept a quotation consignment to forward

stipulation cover seaworthy packing on or after

164
 Sovereign Assurance Ltd
London Regional Marine Branch
24 Lime Street
LONDON

Dear Sirs
Thank you for your quotation of 10 April for warehouse to warehouse (страховое
покрытие) for а (партия товара) of 50 bales of raw silk from Liverpool to Marseille to be
shipped (в указанный день или после него) June 1st.

We are pleased (принять Ваше предложение) and would request (отправить) the
necessary documents to usfor the policy to be signed.

We have taken note of your (условие) that (упаковка при доставки морем) is
necessary and will ensure that this is (обеспечивать).

Yoursfaithfully

Exercise 8. Translate into English

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.

165
 UNIT 22
MARINE INSURANCE
P art 2

Vocabulary
• Utmost good fa ith - полное доверие
• Insurance policy - страховой полис
• Insurance interest - страховой интерес
• Subrogation - переход прав страхователя к страховщику
• Hull policy - полис страхования судна
• Cargo policy - полис страхования груза
• Voyage policy - полис страхования на перевозку
• Time policy - полис на срок
• Floating policy - текущий полис
• Mixed policy - смешанный полис
• Trial order - пробный заказ
• Standing order - постоянный заказ
• Open cover policy - генеральный полис
• Underwriter - страховщик (при морском страховании)
• Personal accident insurance- страхование несчастных случаев
• То expire- истекать (о временном периоде)
• Valued policy - таксированный полис

Exercise 1. 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 fa ith (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 fa ith ” 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 over-insuring 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

166
insurer can prove that the ship was not seaworthy, he can lake legal steps against the
shipowner).
Types o f insurance policy
Written evidence o f the insurance contract is provided in the insurance policy. The
Lloyd’s M arine Policy contains an additional statement requiring immediate notice to be
given to the Lloyd's A gent at the port or place where the loss or damage is discovered so
that he can exam ine the goods and issue a survey report. This statement applies to cargo
insurances only.
If insurance is needed at short notice, the insurer can provide the insured with a cover
note to fulfill 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.
A contract to insure the subject-matter “at and from” or from one place to another or others,
e.g. “from Liverpool to H ong Kong” . 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 w ho 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, e.g. a ship insured for 12 months commencing 12 M arch 2012.
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
of 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. As the marine Insurance Act states “a floating policy is a policy
which describes the insurance in general terms and leaves the name o f the ship/ships and
other particulars to be defined by subsequent declaration.” Placing each shipment w ith an
underwriter through a broker is time-consuming and also the costs will be uncertain because
the premium can be different for each consignment. It’s therefore unusual for single
shipments to be separately insured. The floating policy is issued once the underw riter agrees
to cover all shipm ents up to a total value. 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 expire ( it reaches the agreed limit) . When all the value o f a floating policy has
been exhausted it is said to be “run o f f ’ or “fu lly declared’. The floating policy is value
related.
4. Mixed 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 policyholder 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

167
 them to make shipments, and then inform the insurance company after the shipment has
been made. Open cover policy is time related.
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. This policy specifies the agreed value o f the insured
subject-matter, e.g. a policy o f US $1 million on hull and machinery value at US $ 3
million. The agreed value may not be the actual value o f the subject-matter.
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 flo a tin g p olicy an d a m ixed policy?
Give some examples where the insured may prefer to choose one over the others.

Exercise 2. Fill in the chart

D is tin g u is h in g fe a tu r e s
T y p e s o f p o lic y T he cover o f
P e r io d o f c o v e r a g e
p o li c y

H ull policy

Cargo policy

Voyage policy

Time policy

Floating policy

M ixed 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 w hen 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 w hen they
have suffered damage or loss.
7. The jo b o f an average a_______________________ is to examine damage and
estimate compensation.

168
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 tend 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.
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 m onthly or quarterly basis, or p er 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.

Chairman
WORLDWIDE INSURANCE Ltd A.L Galvin аса f is
W orldwide H ouse, Vorley Road* London m 19 $ h d ManagingDirector
PJt.Erwincis
Telephone:+44 (0)20 7263 6216 Directors
Fax:+44 (0)20 7263 6925 L. Swanne, T.R. Crowe mc
Email, d.adair@worldwide.co.uk H.B.SideyMA

Your Ref: 5 /3 /2 0 —
Our Ref: M1-C16893
Date: 7 M arch 20—

Ms Elaine Goodman
Export Department
Glaston Potteries Ltd
Clayfield
Burnley BB10 IRQ

Dear Ms Goodman
In reply to your email of 5 March, I am pleased to say that we can arrange an
AR open cover policy for chinaware shipments to North and South
American eastern seaboard ports.
As you propose to ship regularly, we can offer you a rate of f 4.48p% for a
total cover of £200,000.1enclose a block of declaration forms - you would be
required to submit one for each shipment giving full details.
I look forward to your confirmation that these terms are acceptable.
Yours sincerely

D a m tlA c L u r
David Adair
Manager, Quotations Department

Enc. Declaration forms

169
 1. What company can arrange an all risk open cover policy?
2. W hat terms o f payment were offered by the company?
3. W hat document should be obligatory enclosed? W hat should be included in this
document? *1

Dear Mr Korvin

Policy No. O C 515561

I 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)128246125
Fax: +44 (0)1282 63182
Email: e.goodman@glaston.co.uk

1. W hat 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 front the list below

Premium underwriters broker

Lloyd's perils policy insurer insurance

1. The most famous insurance m arket in the w o rld ,________o f London, has many
aspects. It is a society o f ________ , a corporation, a w orld centre o f marine intelligence, and
a specialist publishing house for m aritim e and legal affairs.
2. In general practice the insured does not deal directly w ith the underw riters, but
negotiates through an insurance_________ .
3. The insured pays a sum o f money to the underw riter know n a s _____________ .
4. M aritim e_________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 w ritten docum ent o f contract w here 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
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 custom ary 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 w reck
removal costs.
 UNIT 23
TYPES OF LOSS
Vocabulary
•A ctual total loss (ATL) - действительная полная гибель; потеря собственности в
случае, когда она полностью разрушена и непригодна для дальнейш его использования
• 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
•P eril insured - страховой риск
•P erils o f the sea - морские риски, опасности
•P erils o f the sea clause - оговорка о морских опасностях
•A n assured - застрахованный, страхователь
• То be deprived o f something - быть лишенным чего-либо
• То exceed the value - превышать стоимость
•Jettison - сбрасывать за борт предметы (с целью восстановления плавучести и
остойчивости)
•Jetsam - предметы, сбрасываемые с аварийного корабля
• То strand - садиться на мель
•Irretrievably - невосполнимо
• То settle a claim - урегулировать спор, рассмотреть иск
•Entrapm ent - захват
• То take over - принимать от другого лица (командование, например)
•Particular average - частная авария
• General average - общая авария
•Proviso - условие, клаузула, оговорка (часть статьи, начинающаяся словом
«provided» - при условии)
• Want o f due diligence - непроявление, отсутствие должного старания
•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).
•Expenditures - затраты, расходы
•Sacrifices - потери, жертвы
• То recover a ship - взыскивать в судебном порядке
• То be borne (to bear) - нести (ответственность)

Exercise 1. Read the text and answer the questions

LOSSES
TOTAL

ATL CTL GA

As far as marine insurance is concerned, insurers distinguish between total loss and
partial loss (a partial loss being known as average).

172
 1. T o ta l lo s s e s m a y b e c a t e g o r iz e d a s:
a) actual total losses (ATL) b) constructive total losses (CTL)
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 “m issing” 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 follow ing 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 sea s” 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 . A p a r tia l lo s s (o r “ a v e r a g e ” ) w ill a lw a y s b e c a t e g o r iz e d a s e ith e r :

- 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 p a r t i c u l a r A v e r a g e i s a n a c c i d e n t a l l o s s w h i c h c o n c e r n s o n ly t h e o w n e r o f t h e
p r o p e r t y d a m a g e d a n d , i f t h e c a u s e o f t h e d a m a g e i s a n i n s u r e d p e r i l , h is u n d e r w r i t e r s .
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

173
for clauses such as the Institute Additional Perils Clauses - -Hulls (APCs), which cover loss
or damage caused by any accident. Instead o f having to demonstrate the operation o f one of
the perils insured against, the assured only has to prove that the loss or dam age 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 m aster or crew to the
prejudice o f the owner or charterer. E.g., willfully running the ship ashore w ith fraudulent
intent; fraudulently selling the ship, her equipment or cargo; sailing in breach o f an
embargo; willfully assisting illegal immigration; smuggling w ithout the ow ner’s consent,
are all acts o f barratry.

P a rtic u la r A verage is a p a rtia l G en eral A verage is a p a rtia l loss

loss
1. due to purely accidental causes,
e.g., stranding, fire, collisions etc.;
2. which is borne by the owners o f 2.
the property damaged, e.g., ship
or cargo, as the case may be.
1. voluntarily and reasonably
incurred in tim e o f peril for the
safety o f the joint adventure;
which is contributed to by the
owners o f all property saved, e.g.,
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 fa irer fo r 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 c a n ’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 “ r e s p o n s i b i l i t y ” 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 re le a se ______________ responsibility
To be responsible__________ smth

To be exempt_____________ responsibility

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 To be responsible_________ smb
The responsibility lie s __________
Exercise 4. Translate from English into your native language. Use the dictionary if
necessary
(Abandonment - абандон (акт отказа судовладельца от груза или своего
застрахованного имущества в пользу страховщика); Notice of abandonment -
извещение об абандоне; to waive the right - отказаться от права)

F r e ig h t W a iv e r
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.
 UNIT 24
GENERAL AVERAGE AND THE YO RK -ANTW ERP
RULES
Vocabulary
• To incur an expenditure - п онести расходы
• To extricate a vessel - вы свободить судно
• C om m on m aritim e adventure - общ ее м орское предприятие
•A b a n d o n m en t - абандон (акт отказа судовладельца от груза и ли своего
застрахованного и м ущ ества в пользу страховщ ика)
•N o tic e o f abandonm ent - извещ ение об абандоне
• То abandon - абандонировать
• Tender - официальное предложение, тендер
•A ssessm en t - оценка
• G eneral average adjustm ent - расчёт убытков по общ ей аварии
• G eneral average contribution - долевой взнос по общ ей аварии
• G eneral average bond - аварийная подписка
• General average guarantee —гарантия по общ ей аварии
• G eneral average deposit - депозит или аварийны й взнос
•L ien - право удержания, залоговое право н а груз, судно
• То exercise a lien on ... —применить залоговое право на ...
•Security - обеспечение, залог
•Average adjuster - диспашер, специалист по оценке убытков по общ ей аварии и
их распределению между участниками морского предприятия
•Average adjustment - диспаш а (см. выш е)
• То be due - подлежащий оплате
•P o rt o f refuge - порт вынужденного захода, порт-убежище
• То retain the ship - сохранить судно
• То fu rn ish particulars - представлять (предъявлять) подробности
• То take over (a ship) - принимать судно
•Proceeds -поступления, доходы
• То dispose o f - избавиться от

Exercise 1. Read the text and answer the questions

Part 1
Principle and object o f general average

The principle o f general average may be said simply: “ T h a t w h ic h has b een

(The
s a c r i f i c e d f o r t h e b e n e f i t o f a l l s h a l l b e m a d e g o o d b y t h e c o n t r i b u t i o n o f a l l ’1.
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 of the York - A ntw erp Rules.

The essential elements of it are as follows:

SACRIFICE or EXPENDITURE
must be
extraordinary
intentionally made or incurred
reasonably made or incurred
fo r
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;

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 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 lire.
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’s 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.

Exercise 3. Translate into English

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 нс 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 в
1877 на конференциях представителей судовладельцев, страховщиков и диспашеров
разных стран для унификации обычаев распределения общей аварии.

Part 2

Exercise 4. Read the text and answer the questions

Nature and application of 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
p a rty’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 of wide variations from one country to another
in the method o f adjustment of 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 for 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 fin a l 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:
1. a general average deposit; r
2. a general average bond (i.e. a signed promise by the receivers to pay their
general average charges when known); (see annex 19)
3. a general average guarantee (a promise from cargo underwriters to pay the
required contribution without collection o f a deposit); (see annex 18)
4. 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 o f the loss or
damage and the rate o f contribution required from each party to the common maritime
adventure (e.g. 10% o f the total arrived value o f their property).
Each owner o f cargo saved by the general average act must then sign a general
average bond; in return for delivery to them or to their order o f the goods noted in the bond,
they agree to pay the proper proportion o f any general average charges which may later be
ascertained to be due from the goods. Receivers agree also to furnish particulars o f the
value o f the goods and make a general average deposit o f 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 o f their
deposits, receivers are issued with a general average deposit receipt; these must never be
issued in duplicate.
Abandonment

An owner o f a damaged and salvaged ship will not usually spend more on repairs
than the value o f 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 o f the assured
in whatever remains o f the insured property, including all proprietary rights in it, e.g.
- the right any freight in the course o f 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 o f 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 fo r a total loss. The
insurer pays the claim and takes over proprietary rights in the vessel if she is eventually
recovered.1

1. When ca \ the York-Antwerp rules be applied?

2. What are the form s 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:
2. One who agrees to compensate another person for loss from an insured peril in
consideration o f payment o f a prem ium :_____________ .
3. Kind o f risk where the property has been completely destroyed, a missing ship for
exam ple:__________ .
4. A contract o f insurance:_____________ .
5. A hazard or risk at s ea :______________ .
6. An accidental loss to the ship or cargo or freight: ______________.
7. A voluntary sacrifice or extraordinary expenses for the common safety o f a
maritime adventure:___________.
8. Report o f the quantity o f cargo discharged from a s h ip :___________ .
9. An intermediary who negotiates insurance contracts with the underwriters on
behalf o f 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 o f 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 dry docking.
- 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 o f 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 o f refuge, the salvage award being set some time later by the Lloyd’s A rbitration
hearing.
- The shipowners paid the costs o f entering the port, discharging and reloading cargo,
the costs o f wages and m aintenance o f the crew, fuel, stores, etc. w hilst m aking for and
staying at the port o f refuge.
(tailshaft - гребной вал, дейдвудньш вал)

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 T he ad justm en t o f gen eral average w as p repared as set ou t below :

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 drydocking 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 ($ 185.000 + $65.000+$ 100.0001 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 pro p ortions (in this
case approx. 8.6% ) o f their respective contributory values. The ship’s p ro p o rtio n is
$3,239,485 while the cargo’s proportion is $890,515.

Exercise 7. Translate into English

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.

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 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.
 UNIT 25
MARINE CLAIMS.
HAGUE-VISBY RULES. HAMBURG RULES
Vocabulary
• Voucher - оправдательный документ
• Endorsement - подтверждение
• Class surveyor - инспектор классификационного общества
•D isbursem ent - расходы судовладельца во время пребывания судна в порту
•A gency fe e - агентское вознаграждение
• Casualty - происшествие
• То lodge a claim - подать иск
• То forego defences - воздерживаться (отказываться) от защиты
• Concurrently - одновременно
• То pursue a claim - предъявлять иск
• То prejudice his right - наносить ущерб
• То disclaim liability - отрицать ответственность
• То uphold (identity) - подтвердить, идентифицировать
• То be in one s custody - быть под контролем, опекой, охраной
• Burden o fp r o o f - бремя (обязанность) доказывания
• То evidence (a contract) - служить доказательством, доказывать

P a rti

Exercise 1. Read the text and answer the questions

Hull claims
Following any case o f hull or machinery damage, e.g. due to collision or grounding,
the shipowner/ manager’s insurance department will normally im m ediately inform , via the
broker, the lead hull and machinery insurer. If abroad, Lloyd’s agent will norm ally be
notified. Underwriters or their agent, e. g. Lloyd’s agent, will instruct a surveyor to ascertain
the nature, cause and extent o f damage. In major casualty cases, the surveyor appointed is
likely to be a Salvage Association surveyor.
In the event o f a claim on a Lloyd’s policy the client m ust contact the broker
concerned to initiate the claims process. The broker will inform the leading underw riter at
Lloyd’s (who originally set the terms and conditions o f the risk) and Lloyd’s Claims Office,
which acts on behalf o f following Lloyd’s underwriters. Once the validity o f the claim has
been checked and payment agreed, Lloyd’s central accounting system w ill ensure that the
claim ’s paid directly to the broker’s account and the accounts o f the underw riting syndicates
are duly debited.
Documents and information required from the ship by the Claims Handler
In addition to copies o f the relevant insurance policies (w hich w ill be supplied by the
owners), the documents and information listed below may be required to accom pany a claim
lodged by owners against underwriters. If an adjustm ent is prepared, the average adjuster
will extract the required information from the docum ents and incorporate it in the

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adjustment, but underwriters are in any case entitled to see the original documents and
vouchers if they wish.
Certain items forwarded will require the endorsement o f the underwriters and
surveyor as being fair and reasonable. The endorsement may be obtained either by the
ow ner’s superintendent at the time o f survey or repair, or later through correspondence
between the average adjuster and the surveyor.

General documents and information required include:

- deck and engine room l o g b o o k s covering the casualty and the repair period;
- m aster’s and/or Chief engineer’s detailed r e p o r t ;
- relevant l e t t e r s o f p r o t e s t ;
- protests and extended protests;
- underwriters’ surveyor’s r e p o r t ;
- class surveyor’s r e p o r t ;
- owners’ superintendent’s r e p o r t ;
- r e c e ip t e d a c c o u n t s for repairs and/or any spare parts supplied by owners, in
connection with repairs, endorsed by underwriter’s surveyor as being fair and reasonable
- a c c o u n t s covering any drydocking and general expenses relating to the repairs,
endorsed as above;
- a c c o u n t s for all incidental disbursements at the port o f repair, e.g. for port charges,
watchmen, communication expenses, agency fees, etc.
- details o f fuel and engine room stores consumed during the repair period (i.e. from
the time o f deviation to the port o f refuge), together with the cost o f replacement;
- a c c o u n t s for owners’ repairs effected concurrently with damage repairs;
- copies o f f a x e s a n d t e le x e s sent and details o f long-distance calls made in
connection with the casualty, together with their costs;
- a n y a c c o u n t s rendered by surveyors, etc., with dates o f payment where made.

Cargo claims
Most cargo claims arise as a result o f alleged breaches by the carrier o f contractual
obligations properly to cany and care for the cargo while in his custody.
These contractual obligations are usually incurred under a contract o f carriage with
the shipper o f the goods, usually a bill o f lading. The B/L is governed by the law o f a
particular country, which will have enacted legislation governing the carriage o f goods by
sea which is then incorporated in the B/L.

W h e r e c a r g o l o s s o r d a m a g e is d i s c o v e r e d ( u s u a l l y b y t h e r e c e i v e r o r c o n s i g n e e a t
th e d is c h a r g e p o r t o f d e s tin a tio n )
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 o f a Lloyd’s
policy. Where the goods were sold “CEF” the relevant Lloyd’s Agent is noted on Certificate
o f 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.

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 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 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 fo r original documents? Who can endorse them?
4. W hat’s L lo y d ’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 of 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 jo b 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 of 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 w hat 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

Exercise 5. Read the text and answer the questions

THE HAGUE-VISBY RULES

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. T h e c a r r ie r is n o t lia b le f o r lo s s or
and supply; d a m a g e 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 o f the goods;
where cargo is intended to be carried fit 2. The c a r r ie r is not lia b le fo r lo s s or
and safe for its carriage and d a m a g e arising from the u n s e a w o r th in e s s
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 shipper seaworthy and
cargo, the number of pieces or packages fit for the carriage of the cargo;
or the quantity or weight, as stated by 3. T h e c a r r ie r is n o t lia b le fo r lo s s or
the shipper, and the leading marks on d a m a g e 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 o f the sea, acts
o f God, war, public enemies, quarantine
B U T 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 o f the goods” the shipowner goods, nor for insufficiency of packing,
will forego any possible defences to a inadequacy of marking and latent defects of
claim brought by a 3rd party. The clausing the goods not discoverable due diligence,
o f the B/L is not a choice but an and finally from any other cause arising
obligation. 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. 1
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 TH E H A M B U R G R U L E S
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.
T h e r e g i m e is v e r y d i f f e r e n t , a s a r e t h e s i t u a t i o n s i n w h i c h t h e R u l e s w i l l a p p l y .
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 of transport, the Rules will generally apply only in so far as the carriage relates to the
sea element. Coastal voyages are excluded.
U n l i k e t h e H a g u e - V i s b y R u l e s , t h e r e f o r e , t h e r e g i m e is n o t l i m i t e d t o c a r r i a g e
u n d e r B s /L o r s im ila r d o c u m e n t s . T h e R u le s a p p ly t o C /P s .
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 of
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. U n d e r t h e H a m b u r g R u l e s , t h e c a r r i e r i s d e f i n e d a s t h e p e r s o n
b y w h o m o r i n w h o s e n a m e t h e c o n t r a c t is c o n c l u d e d . The name and the place of
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.
I n b r o a d te r m s , th e H a m b u r g R u le s r e g im e is m o r e f a v o u r a b le t o c a r g o in t e r e s ts
It should be noted that the time limit for commencing court
th a n th e H a g u e -V is b y r e g im e .
or arbitration proceedings is extended from one or two years, and that this limit applies to
claims both by and against the carrier. 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.

7. What s the subject o f Hague- Visby Rules and Hamburg Rules?

2. What should be issued by a carrier on dem and o f the shipper?
3. What m ust 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. H ow is a carrier defined under Hamburg Rules?
6. Why is Hamburg Rules regime more preferable fo r cargo interests, in your opinion?

E xercise 6. P u t the fo llo w in g 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
(1)__________________ Lloyd’s (2)_____________________ the assured contract his b ro k e r
to (3)___________________ the claims process. Therefore, the shipow ner’s o r m an a g er’s
insurance d e p artm e n t will immediately (4)______________________the com pany’s
broker, who will inform the lead u n d e rw rite r at Lloyd’s.
The lead u n d e rw rite r will (5)_____________________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 b ro k e r then ( 6 ) _______________________ the lead u n d e rw rite r and L loyd’s
Claims Office, which (7)__________________ on behalf o f the other “following”
underwriters.
Once the validity o f the claim has been (8) _________________ and payment
(9)______________, Lloyd’s central accounting system ensures that the claim is
(10)____________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 m oney and answer the questions

Dear Sir,
This is to inform y o u that due to y o u r fa ilu re to provide the cargo o f linseed
expellers fo r my vessel as fa s t as she could receive, as p er C/P dated 03/01/2008,
laytime allowed fo r loading expired at 08.00 hours local tim e March 8,2008. From that
time till completion o f loading, that is, 15.00 hours local time, today, M arch 10, 2008
the vessel was on demurrage o f which yo u had been duly warned in advance by m y
letter o f March 3, 2008. So, the tim e o f the vessel on demurrage is 2 days a n d 6 hours
30 minutes, which at the rate o f 500 US Dollars p er 1 hour o f dem urrage as p e r the
C/P makes the total o f 10,750 US Dollars.

I hold you responsible fo r the above sum a n d kindly ask y o u to p a y it before our
departure.

Yours faithfully,

1. W hat’s the reason for loading 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?

Exercise 8. Translate into yo u r native language

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

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law applies, the Hague-Visby Rules may still apply to the carriage by agreement o f the
contracting parties.

Exercise 9. Translate into English

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.
 UNIT 26
NOTING PROTEST
Vocabulary

• Extended p ro test- дополненный протест

• To note a protest - заявлять протест
• A ffid a v it- письменное показание, подтвержденное присягой или
торжественным заявлением и заверенное нотариусом
• Before breaking bulk - до открытия трюмов, до начала выгрузки
•D e c k log - черновой вахтенный журнал
• Log entries - записи в вахтенном журнале
• То sustain damage - понести ущерб
• То take depositions - удостоверить (засвидетельствовать) показания под
присягой
• Rough seas - по шкале оценки состояния моря и зыби (шкала Бофорта) вы сота
волны - 2.5 - 4 метра
• H eavy swell - по шкале оценки состояния моря и зыби (шкала Бофорта) вы сота
зыби свыше 4 метров
• Pitching - килевая качка
• Rolling - бортовая качка
• То ship water - черпать воду

E xercise 1. R ea d the text and answer the questions

A “ p ro te st”, sometimes called a “sea p ro test”, 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 p ro test (w ithout an extension) is a sim ple statem en t o f fact, w ith o u t a d d e d
details.
A n “ extended p ro test” is a protest to which supplementary information has been
added at a later date. “N oting p ro test” 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 “ n o tary public” o r “ n o ta ry ” 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 this day, the day of , one thousand nine hundred

and ninety-six, before me, James S. Anderson of the City of
Glasgow, Scotland, Notary Public duly admitted and sworn,
personally appeared Angus McMillan, master of the motor
vessel "Kintyre Venture" belonging to the Port of
Campbeltown, official number 300123, of the burthen 593.02
tons gross, or thereabouts, which sailed from Ardrishaig on
or about the 29th day of March 1996 with a cargo of timber
and therewith to Glasgow, and arrived in this Port of
Glasgow on the 30th day of March 1996.
It is declared that this vessel at various times on
passage met very rough seas and heavy swell, pitched and
rolled, shipped spray and water, and encountered heavy
rain.
And fearing that damage and loss may have been sustained by
the said cargo during the said voyage, he thus enters a
note of HIS PROTEST against all losses, damage, etc. to be
extended in due form if necessary, reserving right to
extend the same at a time and place convenient.

Signed before m e ............................................

James S. Anderson, Notary Public

at 11.00 GMT on 1st April 1996
Angus McMillan
Master, m.v. "Kintyre Venture"

(to reserve th e right to extend th e protest at a tim e a n d pla ce convenient - ост авлят ь за
собой право продлить настоящий протест в любое удобное время и в любом удобном
месте)
A L e t t e r o f P r o t e s t 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 20)
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 M aster 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 “ w rong”.

W h e n to n o te p r o te st

N oting 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

192
necessary. The local P&l club representative should he able to advise (he master on the need
for noting protest.
It may be p ru d en t to note protest in (lie following situations:
1. A Her 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 date ;
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. Aftcr 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. I f 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.

P r o c e d u r e fo r n o tin g p r o te s t

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
w eather 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 M aster will normally have to show proof o f his identity to the notary. The notary
will hear the m aster’s declaration and will make a written record in a Register o f Protests.
A t 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.
E x t e n d in g p r o te s t
Since it’s often impossible to ascertain the full extent o f a loss or damage at the time
of 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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 P r o c e d u r e fo r e x te n d in g p r o te st
Extension need not be made in the same place as the original protest was made, but
must be in strict conformity with local law regarding time limits and content.
The extension expands the bare facts o f the original protest, and again, any relevant
documents (e.g.. log books and reports) should be taken to the notary’s office. The extension
is entered, witnessed, signed and sealed in the same manner as the initial protest.

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 o f the vessel called
the............................................ , Official No.....................o f the burthen of...................... tons or
thereabout, then lying in this port of.............................laden with ..................................... 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 s a id ..................... 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 o f 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 of 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 o f 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 o f his mariners, or fault or neglect
in the proper loading, stowage, custody and care o f 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 of this...................................... to serve and avail him, and all others whom it does or may
concern as need and occasion may require.
........................................... o f the United States of America
............................................ Master
........................................... First Officer
........................................... (Position o f crew)
........................................... (Position o f 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 fo r noting protest?
7. What documents should be presented in the notary office? Why?
8. How many copies o f a protest m ust 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. R ead the sea protest about a storm. Answ er the questions 1

S T A T E M E N T O F SE A P R O T E S T
I , _______________________________ , the M aster o f th e m /v “______________ ”
under the fla g o f ___________ , Gross Tonnage 15893, N et Tonnage 8092, registered at
the port o f__________________, International Call Letters UUSW, sailed fr o m the p o rt
o f Mobile, Ala., USA on A u g u st 15, 2006, bound fo r St. Petersburg with 6750 m etric
tons o f general cargo, the vessel being then tight, staunch a n d strong, well m ann d,
victualled and sound, and in all respects f i t fo r the said intended voyage.

A t 18.00 G M T o n __________________ 2006 in position Latitude 45-20 No th a n d

Longitude 015-10 West the ship encountered a heavy storm with stern w ind o f Force 9-
10 fro m W SW and a heavy swell up to 8 metres. A s a result o f this, the vessel su ffered
heavy pitching and rolling up to 28 to either side. A t 20.00 G M T th e vessel h a d to
reduce her speed to 10 knots to reduce the rolling. A t 23.00 G M T due tr sh ifting o f the
cargo o f pipes in Holds 2 and 3 the vessel sustained a perm anent list o f 10 degrees to
starboard and h a d to deviate to the po rt o f refuge Breast. A t 09.00 on A u g u st 26, 2006
the vessel was m oored at Pier 18 in the po rt o f Breast.

Though the crew has taken all precautions to save the vessel and the cargo,
fe a rin g damage to the ship and the cargo fro m the above heavy weather, an d also
losses connected with calling in at the po rt o f refuge and delay o f the vessel, I declare
this Sea protest, reserving the right to extend this protest at a tim e a nd place
convenient.

1. What characteristics o f the vessel should be mentioned in the sea protest?

2. What w eather 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 M aster declare the sea protest?

Exercise 3. Translate into y o u r native language

A shipm aster should note a protest

1) after every case o f G eneral Average;

195
 2) after w in d a n d /o r sea c o n d it io n s have been encountered which may have
d am aged cargo;
3) after w in d a n d /o r s e a c o n d it io n s have been encountered which caused f a i l u r e to
m a k e a c a n c e llin g d a te ;
4) after c a r g o is s h i p p e d in a condition likely to d e t e r i o r a t e d u r i n g t h e f o r t h c o m i n g
voyage (also, Bs/L should be appropriately claused after consultation with shipper and P&I
correspondent);
5) after t h e s h i p h a s b e e n d a m a g e d from any cause;
6) after a serious b r e a c h o f a c h a r t e r p a r t y b y t h e c h a r t e r e r o r h i s a g e n t (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 t h e c o n s i g n e e f a i l s t o d i s c h a r g e or t a k e d e l i v e r y o f t h e c a r g o or f a i l s t o p a y
f r e i g h t , and similar situations.

Exercise 4. Complete the sentences using the fo llo w in g verbs. M in d the gram m ar

Lodge E xten d Relieve E nter Raise Accom pany

1. A sea protest musL___________________ 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 of
the engine-room log.

Exercise 5. Translate into English

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.

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 APPENDICES
1• A pplication form for docum entary credit
2. A pplication form for opening letter o f credit (in R ussian)
3. Specimen of airwaybill
4. Fully filled-in consignm ent note
5. Standard form o f Statem ents o f Facts (SOF)
6. Tim esheet
I . Standard form o f D isbursem ent A ccount
8. Specim en o f B arecon 89
9. G encon charterparty
10. Tim e charter
I I . F ixture note
12. R ecapitulation m essages
13. G uarantee Letter
14-16.B ill o f Lading
17. H ouse B ill o f Lading
18. A verage guarantee
19.. Average bond
20.. Letter o f Protest
21.A bbreviations used in chartering (in alphabetic order)
Please complete all areas in black ink and bloc k capitals

Original mall Instructions Fax codeword

Original fax instructions Date

Customer (Applicant)
Applicant's reference
Contact name
Telephone number
Fax number
Customer Trade ID

Beneficiary's
Telephone number

A m o u n t a n d c u rr e n c y (>nworth andfigurai) Payment terms

Sight
days after (specify)
Up to fo r % of Invoice value (eg. 100%)
About+ (specify)
G oods d e s c rip tio n Shipment terms
M émané Artaih.ytx Ex works FOB/FCA CFR/CPT
maaitl though suchaxvments m y not hr attached) CIF/CIP (specify)
Last shipment date
tier noted)
Documents to be presented within days of
shipment but within the validity of the credit
Expiry date
Transportation
From
To
Partshipment
Allowed
Not allowed
Transhipment (seenoteS)
Allowed
Not allowed

Transport documents iraient bail 1

| Sea ri.l'Stl ur uuwcl r.vr tt.Vsryf: Air itwOvHil!

y Sea<Mr wasm Mtihmoaot Iromeon uwiamnui ( Other (jifrpiv seesijfi |

 Consignee Marked notify
Bland endorsed (B/L only) Applicant
Other
Other Other

Orlglnal/Coples
Original Copy (Slatenumbei oforiginal! andrat ropydocuments) Original Copy
Invoice Packing list
CSP Form A Certificate of Origin
Other (specify) Other (specify)

Insurance Covering
{Seeconditrondf.for shipment termsCIF/OP/Ctrl (orother terms Institute caroo clauses'A*
requiringthtbrnejictarytobempomlbkfo' inturarKtfpieaie . .
indicatecoverreaw/td w* 5
Orlg Copy Strikes, riots and civil commotions
Insurance Policy/Certificate Endorsed Warehouse to warehouse
In blank forthe Invoice value Other (specify)
plus %

Other conditions Settlement [Onreceipt ofdocumentsino'der'nt maturity)

NB Nodocument will bedemandedfoi non-documentary Branch sort code
condition! unlessspecificallyrequested. (See note I.)
Debit our Sterling Account number
Debit our Currency Account number
Utilise Forward Contract number:
Maturing Rate
Forward cover being arranged

Commission and charges y different)

Debit our Sterling Account number
Debit our Currency Account number

V/erequestyou to issueyour IrremeableImport letterof Credit

for our account in accordancewith theaboveinstructionsand
subject to theconditionsprintedoverleaf. (Set note 0
APPENDICE 1

Stomp andngnoturels) on behalf of customer inaccordance

with mondateheldbyBank.

Commissions and charges (Seecondition/)

All our account
•su hmerifiaries accoun
I Fa * codew ord 1
remainder ours
 APPENDICE 2
З А Я В Л Е Н И Е НА О Т К Р Ы Т И Е А К К Р Е Д И Т И В А
(страница 1)

Данный аккредитив подчинен ’Унифицированным Правилам

3 Smllshu str., Riga, LV 1522. Latvia и Обычаям, общим для документарных аккредитивов'
Тел. 7010056, Факс 7010057. e-mail lc@parax.lv (редакция 1993 а., Международная торговая палата,
SWIFT код PARXLV22, телекс 161371 PAREX LV Париж, Франция, публикация ' 500)

Дата: Контактное лицо:

Номер: Тел.:

Настоящим просим вас открыть безотзывный документарный аккредитив на следующих условиях:

□ трансферабельный □ stand-by

{Дата истечения: ________________________________| Место истечения:__________________ __

ПОКУПАТЕЛЬ (наименование & адрес) ПРОДАВЕЦ (наименование & адрес)

счет No.: і

Авизовать аккредитив □ по телексу/SW IFT Ö воздушной почтой

БАНК К О Р Р Е С П О Н Д Е Н Т JАВИЗУЮЩИЙ БАНК 1

SW IFT: SW IFT
телекс: телекс:

О добавить подтверждение банка корреспондента П аоб ав и ть подтверждение авизующего банка

□ на базе 100% денежного покрытия С Ь а базе 100% денежного покрытия

Данны й аккредитив исполняется □ вами О путем платежа

□ авизующим банком □ в течение дней после
Г~! банком корреспондентом □

СУМ М А +/- %

Ваши комиссии за счет: □ нас □ продавца

Комиссии авизующего банка за счет: Г~1 нас П продавца
Комиссии банка корреспондента за счет: П нас □ продавца

Сумму комиссий авторизуем списать с наш его счета No.:

п р о долж ение н а с т р а н и ц е 2

199
Дата:
Номер:

О П И С А Н И Е TÖ BAPÄ

цена:

согласно контракту No.

условия поставки:

Частичные отгрузки - □ разрешены □ запрещены

Перегрузка - □ разрешена □ запрещ ена

Отгрузка / отправка / принятие к перевозке из:

Грузополучатель:

Д ата последней отгрузки: Срок для предоставления документов:

ПЕРЕЧЕНЬ Д О КУМ ЕНТО В •

I I счет-фактура,___ оригинал (а) и ___ копи(я/ии)
О полный набор чистых бортовых коносаментов, выпущенных:
П to order, с бланковым индоссо
I I to order of
помеченные □ freight colled1 □ freight prepaid1
notify:
П авианакладная (оригинал для грузоотправителя) □ FCR
П дубликат ж/д накладной □ автонакпадная (CMR)
помеченный/ая □ freight collect1 □ freight prepaid1
□ упаковочный лист, ___ оригинал(а) и ___ копи(я/ии)
□ сертификат происхождения, ___оригинал(а) и ___ копи(я/ии), выпущенный (кем)

□ страховой полис/сертификат,___ оригинал(а) и ___ копи(я/ии), на 110% от CIF стоимости,

покрывающий все риски
□

Специальны е инструкции:

Мы настоящим авторизуем A /s 'Parekss Banka’ дебетовать наш расчетный счет No.:______________

на сумму аккредитива и кредитовать наш аккредитивный счет покрытия, который является денежны м
обеспечением для любых возможных выплат по данному аккредитиву.

______________________ ГКлюч1:
печать авторизованные подписи |Ключ2:

200
 APPENDICE 3

201
 APPENDICE
Fully fille d -in co n sig n m en t n o te

The Hazardous Waste Regulations 2 0 0 5 :

KnriuMiiuait
}A&ncy
Consignment Note CAKKII.K'S COPY
PART A Notification details

(i«Od*: ‘ B F M4131MN11f°ill 4 Iho>N.1^0.Milts< Miiil.uiu»* oddivv*,!

Ht«IXxptuwiIWt*('wi^mnvl IH
fl* .-rov-t* dxstliLvd I d w K Iw iomo*»<d hofll \iumi Fnxl Stuwd
l>osUi.<d«. tvk'phoiw ► - null. I-K-Jmlci;
S lo k a .N v lie n i
Environment Agency
Uhts 10 S 11, Greyttlats Business Park,
SIPMA
s lh.uvjxK |n«mx m v\mx vit iimvk.'Ki Mom ; i
Stafford, ST17 4QU l‘tn.ki\t|i), iti|v|ViiiiKi, o in.nl l.x ilmt»«
Tet 01785 782500, Fax 01785 782599
as a ;
* Pwntisvvn-'df si'^k.ibkv | a | b [ F I 8 1•* | 3 1

RARTB Daicription ofthawaaU 'riiniinimtio n >hu«t ux xl,Ukl'MiwB

I Tlx- pro«.--:.'. jWk.r llv to tho .v.vjfv .vox leptadng old hgNIng tubes 7 5k loi Ik« pto«*v, «Uni« ilw K>tho w.vwi>; |j / j * t | jt | : t ] | J

1 VcASTt DtTA.IL«. i*lwi* moi« Ihnn ■-«« xwv.u- Up.' is >.4^ Ud .41 <4 tho inkxnulion «ken Ivkxv must ho f x\|ii|i|«iih-| lor «o.'h l\V' l.1i>null -ill

I.Vviiptkf)«'f xvj>« l Kl of .v-isU •; I'.-u.mU. Ih.i (iKim. ;il l.u'l.^k.il. Mmj>»^i.'iit-\ .4 1 I'l V'.kol U<tm Ulf.4<l i.\Ul,4ll«i
ll\fcCt*xl(ni4«lixilVi ll.SJ. | llx .v.idv Mini th*'iu«ii> iinli,iluvv. MU': | «[ON. InpiM, M'liil, t\-|>.. mxiil'i'i
Or^VMioia (VkYiUl, slwht1' .\ml d.U'
WnvMMIOtliM)
T'. \'i my. l.yi \>i mi\«il'
■Tuit)ür.ïidirr
00 0000
fluorescent IgNing tubes 22 mercury 0.1% Mixed MS
llln

□□ □□□L
Tho Infomwt Ion e««n bvloor isto bo «omplotod lot w«hEWt KteiXillod
EACcod« PoîklusîtooptM UN kliiUldralkm Piopm vhlp|'4ii)| iwmot'.t UN «bssu'M SjuM.tl IwikIIIh ï
ntiniMist loiiuliomoiXv
2 0 0 1 2 i NUA hUA N/A N/A N/A

| PART C Carrier’s certificat« PART 0 Consignor's cortlficato

i <Mtliy ilwit Uk Inloimoilv'o in a. 8 oikI v oie'Mifc «an«» l. ihoi ihc .\nii«t

is uniiMoi^l •» <u«mp( and >v.v. of llvi oppnxpil.iU' |MO- julivm.iiv
I idriltr that I cod.tv tt№< M III« rcmsignnwnl and III.« (hi 'Ut.ilK in A.'. IIIOMYOIOY All «I (Ik VraM« N (hdlMyflxl .HWl InliOlhlil VINI«.<llv .iml III-. < UIH'l
AA ondCtoi« c-"-ir;.:lond ih;*« tw»n.KMw<i.>fon,-spciifk lundline Im 1><WII Otl<rirW«l of J№ i^XJvi.xl iMItlllhVf lvt|llll«nu'll(s
roquueniFiiiv.
1 Corner nome: Bob LeCorre L Conilynoi nom«: Trevor tapador
On belwlf fif mon». xMieu. postcode. Mlophono. «-moil. fOismlki: On »»lull cl mom«. ,vltk«v posicode, t«l«ptuvn* « moll. lo. ?.lmll?i:
Carre-Ü-al Ltd. 10 rttff Why, SlaMord. ST16 4RF
Tet 01785 992040, Fax 01785 992041 environment Agency
J Order icjlurjdbii h« .•Vor.on kx e«nip<lon: Unis 10 & 11, Orayfriar a Business Park,
Stafford, ST17 4ÛU
Tel: 01705 782500, Fax: 01785 702599
1 ValiHo loglstiatlon iK). jot minln of tuntpoit, il ix)t uvvjr
CA51 RRE

•a..»..,,.
l H ' l , r F M » M « il H ° M « H

1 Imuived thkMSU Jt the «ddiev. giveniiiAA on: | l 1-11*- 11 11 V R '»|o|oM [ H ^ M o l

i whirl« r ^ motion i»> '•:* iri'.'d« ofli-HKiX/it II rM roodi: Non»-. Frank Jnmoa
CA51 RRE OnUlulMm.iiiitf. jiM v u . (WWihIx Ijkph.xw, «-moil. TuvImiU.
Tha Disposal Place Company Ud
» *I kii« .v,»Uv h ici.-fl.wj f.fc.iw pi >a idi/ d«lilK: East OaUa Stroet
Stoka-on-Trenl
I WTitv tlviinvJ-A* nuruyemenl li<«m« poinii ■.niihiiilwd «jcwiptivn IV ST8 3AA Tel; 01782 993450, Fax. 01702 903457

Si<{!l,llll|Y

202
 APPENDICES
SARDELIS SHIPPING AGENCY
S P D L IA D O U Bystreet Tel: (0030) 26820/22228-27311-27312
481 00 Preveza Greece Fax: (0030) 26820 26552
Tlx: 322246/322177
E-mail: G S A G E N C Y @ O T E N E T .G R

STATEMENT OF FACTS NO. 15/07

M/V: SELEN Flag: MONGOLIA Master: POKALCHUK OLEKSANDR

Arrived from: CARTAGENA-SPAJN Berthed at: PREVEZA-GREECE
B/L Cargo/ Quantities : AS PER B/L No 1 CARGO OF
MONOCALCIUM PHOSPHATE IN 807 BB, MT 966,807/ MONOCALCIUM PHOSPHATE IN 628 PLTS, MT 799, 4
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
Bunkers on arrival:
Log Item 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
Tvg / boat assistance on arrival MON 29.01.07 13:00 T/B “PANAGIA TIN OU”
ifLthed alongside MON 29.01.07 13:00
Free pratique MON 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 Re m ark s

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
31.01.07 0800 1400 2 34 113 0 20
w
W
TTLJDfSCHARGiEDBB/F’LTS 269 295 49 30

TWO PRIVATE M OBILE 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 I
3 PALLETS MCP & 2 PALLETS DCP DISCHARGED BROKEN (BAGS IN LOOSER
MOST OF THEM EMPTY) ,1

\ 0 Yeài r ^
SHIPPERS / RECEIVERS

203
 APPENDICE 6

1 *« ■ *
T W E S H E E T a f V o r -P O N T A D A M A D B M -
O N M Aagancy
t u ic œ v s K
l Fort
KAN H A Ï, P anam a
ILUCHEV8K
• O m C ^ n rtO M i
PWGHAJ SMPPIMQ H C . Ö 3Ä0S/16.18
L le rtv e o n m d i. uadngoenNMa«

1 II
1 ,
IC n » tO M n a n m «
33JI0.OV1t.OO
MNTER FEH) CAftAJAS (SFCJ)

I
98.00.0801:00
ta.cow nucTi».iani 1«. WBrt*« taantowN h«n «f t» port

O iaV I DATED J UNE 23/2008

ia e i c# w »w w *er itO i*a n M 9 « *« a y
44J00A00M T 44482,00 MT

17. V aaM larim d en roado 03.08.0914.00 S lta b c M ta i 0X08.09/14:00

M e B o e fw rfc w w fn rlm m n m W ^ l400 K
B.Rat»«<d«awrsg» b .R a i« « 4 M i

30.08.06104:00 U8O234M0POPR )HO

HNm H im M i O lta a a a o r t« 08.08.09/2240
K U lfi ffc n ito fc rti
7432
OOOOMT83HMC

LAYDUE COMPUTATION
Date ONT TirMworttad LaytimavMd Ondamuraga

From • To «a» houra »ira dayi hou» n*w

i ii

03A4.M MO 24*0*0 10
M J IJ I 24*0*0 t
040405 M 2340 32 40

3000« MO 40

Bwwnlfwm
DAYS
LayflnwNkmad 7/1330
Layomeinad 3,3410
LayOn» oadnpNch , M71^.
D aepatcti$21000 : 2 ■ $11800,00 X 9.071 ■ $68318.80
i

Pta»«Nd* O d e s s a , 0 6 .0 8 .0 5

204
 APPENDICE 7

DISBURSEMENT ACCOUNT No.

Owner/ CharteredOwnciVDisponent 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 Datc/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 / Unmooring 108
6 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
AG EN CY 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:

M ASTER A G EN T
 APPENDICE 8

J 1.Shipbroker THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO) &

STANDART BAREBOAT CHARTER M ESsf
none CODE NAME: ‘ BARECON 89'
PARTI
2 /Place and date
Kiev,Ukraine 26.07.2000
3 Owners/Ptace of business 4. Bareboat charterers ( Charterers ) / Place of business

Sovereign Maritime Inc. Silvercone Holdings Ltd.

80 Broad Street Themis C o u r t 2 , F la t 201-
Monrovia, Liberia 202, P .O .B o x : 40
8100, Paphos, Cyprus
5, Vessel's name, Call Sign and Flag (Cl. 9 (c))

m/v Petr Peryyy, J8QX5, S t. Vinsent and The Grenadines

t/b/r Primexpress
6 Type of Vessel J . GRT/NRT

passenger / ro-ro 12602/4811

When / Where built .?. Total DWT (abL) in metric tons on summer freeboard
1982, Szcecin, Poland 1883

ip. Class (Cl. 9) 4^.. Date of last special survey by the Vessel's classification society
KM (*) J1 2 [1] A2 May 2000
1 ^ Further particulars of Vessel (also indcate minimun nunber of months' validity ol class certificates agreed acc. to 0 . 14)
six month minimum validity of class> c e r t i f i c a t e

13. Port or Place of delivery (Cl. 2) 14. Time for delivery (Cl. 3) 15. Cancelling date (Cl. 4)

31.07.2000 31.07.2000
16. Port or Place of redelivery (Cl. 14)
Jabel Ali, alongside the berth
to be mutually agreed

17. Running days’ notice if other than stated in Cl. 3 18. Frequency of dty-dockmg If other than stated in Cl. 9 ( f)
according to C1.3 according to Cl.9 (f)

19,- Trading Limits (Cl. 5)

according to Cl.5

zQyCharterpenod n21. Charter Hire (Cl. 10)

fifteen years USD 3,000 (three thousand) per day
excluded period of repairs cost of repairs on owner account

22. Rate of Interest payable aoc. to Cl 10 (f) and. it applicable, acc. to PART IV 23. Currency and method of payment (Cl. 10)
none in us dollars by bank Remittance

(continued)

206
 (continued) "BARECON 89” Standart B areboat part і
Charter
24. Place of payment; also state beneficiary and bank account (Cl.10) 25. Bank guarantee/bond (sum and place) (Cl. 22.) (optional) I

to be mutually agreed none

(-■ n f ' '<

•.'.-V ;■ 'r>: ^
26 Mortgage(s), if any, (state whether Cl. 11 (a) or (b) applies; if 11 (b) applies 27. Insurance (marine or war risks) (state value acc. to Cl. 12 (0 or if applicable, acc. to
state date of Deed (s) of Covenant and name of Mortgagee(s)/Place of business) Cl. 13 (k)) (also state if Cl. 13 applies)
(Cl. 11)
C l. 13 not to apply
according to C l . 11 (b)
15.000.000 (fifteen million) US
dollars'

28. Additional insurance cover, if any, for owners' acoomt limited to (cl. 12 (b)) or. if 29. Additional insurance cover, if any, for Charterers' 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. War cancellation (indicate countries agreed) (Cl. 24)
according to Cl.2 according to C l . 24

32. Brokerage commission and to whom payable (Cl. 25)

none

33. Law and arbitration (state 26.1., 26.2,, or 26.3. of Cl. 26 as agreed, also state 34. Nisnber of additional clauses covering special provisions, if agreed
place of arbitration) (Cl. 26)
according to C l . 26.1 none

35. Newbuilding Vessel (indicate with ’yes' or ‘no* whether Part III applies) 36. Name and place of Builders (only to be filled in If Part III applies)
(optional)
part III not apply
no

37. Vessel's Yard Buildng No. (only to be filled in if Part III applies) 38. Date of Builtfng Contract (only to be filled in if Part III applies)
part III not apply part III not apply

39. Hlre/purchase agreement (indicate with "yes' or 'no* whether part iv applies) 40. Bareboat Charter Registry (Indicate with ‘yes* or "no" whether Part V applies)
(optional) (optional)

no yes

41. Flag and Coin try of the Bareboat Charter Registry (only to be filled In if Part V 42, Country of the Underlying Registry (only to be filled in If Part V applies)
applies)
St. Vinsent and The Grenadines
Ukrainian, Ukraine

PREAMBLE. - It Is mutually agreed that th is Contract shall be perform ed subject to. the conditions contained In this C harter which shall
include PART I and PART II. In the ev en t of a conflict of conditions, the provisions of PART I shall prevail over those of PART II to the
extent of such conflict but no further. It is further mutually agreed that PART III and / or PART IV and / or PART V shall only apply and
shall only form part of this C harter If e x p ressly ag reed and sta te d In (he Boxes 35, 30 and 40. If PART III and / or PART IV and / or PART
V apply, it is fu rth er mutually agreed that In the event of a conflict of conditions, the provisions of PART I and PART II shall prevail over
those of PART III and / or PART IV and / or PART V to the extent of such conflict büt no further.

Signature (Charterers)

207
 PART II
“BARECON 89" Standard Bareboat Charter
A complote inventory of tho Vessel's onliio equipment, outfit appliances and
of all consumable stores on board the Vessel shall be made by toe Charterers
ig terms shall have meanings hereby assigned lo in conjunction with tho Owners on delivery and again on redebvery of Ihe
3 Vessel. The Charterers and the Owners, respectively, shall at the bn» of
te pereon or company registered as Owners of the delrvory and redeilvcry tako ovor and pay for all bunkers, lubricating oil, wator
5 and unbroached provisions, paints, oils, topes and other consumable stores in
6 e Bareboat charterers and shall not be the said Vessel at the then current market prices at toe ports of delivery and
y, respectively
7

8 Maintenance and Operation

9 er by the Charterers at the port or (a) The Vessel shall during the Charter period be in the full possession and at
10 toe absolute disposal for all purposes ol the Charterers and under their
11 The Owners shall before and at the tin complete control in every respect. The Charterers shall maintain toe Vessel,
12 make the Vessel seaworthy and in every respect ready in her machinery, boilers, appurtenances and spare parts ii a good state ol
13 equipment for service under this Charter The Vessel shall be properly repair. In efficient operating condition and In accordance with good
K documented at time of delivery. commercial maintenance practice and. except as provided lor in Clause 13 (I),
they shan keep the Vessel with unexplred classification of toe dass indicated
15 The deivery to the Charterers of the Vessel and the taking over of the Vessel in Box 10 and with other required certificates in force at al rimes. The
16 by the Charterers shall constiute a full performance by the Owners of all the Charterers to take immediate steps to have tho necessary repairs done within
17 Chvners' obligations under Clause 2. and thereafter the Charterers shall not a reasonable «me falling which the Owners shall have toe right of withdrawing
18 be entitled to make or assert any claim against 6<c Owners on account of any the Vessel from toe service of the Charterers without noting any protest and
19 conditions, representations or warranties expressed or implied with respect to
20 the Vessel but the Owners shall be responsible for repairs or renewals
without prejudice to any claim toe Owners may otherwise have against toe
Chatterers under the Charter.
21 occasioned by latent defects in the Vessel, her machinery or appurtenances,
22 existing at the time of delivery under the Charter, provided such defects have Unless otherwiso agreed, in the event ol any improvement structural changes
23 manifested themselves within 18 months alter delivery unless otherwise or expensive new equipment becoming necessary for toe continued operation
24 provided in Box 30. of the Vessel by reason of new dass requirements or by compulsory
nore than 5 per cent of the V essel marine insurance
25 Time for Delivery (not applicable (o newbuiUing vessels) ux 27. then the extent if any. to which toe rate <* hire shal
be varied and ratio in which Ihe cost of compliance 6haU be shared between
26 The Vessel to be delivered not before the date indicated in Box 14 unless with toe parties concerned in order to achieve a reasonable distribution thereof as
27 the Charterers' consent Unless otherwise agreed in Bax 17. the Owners to between the Owners and toe Charterers having regard, inter alia, to Ihe length
26 give the Charterers not less than 30 running days' preliminary and not less of toe penod remaining under toe Charter, shall in the absence of agreement
29 than 14 days' definite notice of the date on which the Vessel is expected to be be referred to arbitration according to Clause 26.
30 ready for delivery
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 responsibility in respect ol oil or olher pollution damage as required by any
32 government including Federal, stole or munidpal or otter division or authority
thereof, to enable the Vessel, without penalty or charge, lawfully to enter,
33 Cancelling (net applicable lo newbuHding vessels) remain a t or leave any port place, territorial or contiguous waters of any
34 Should the Vessel not be delivered latest by the cancelling dat or municipality in performance of this Charter wittout any delay.
35 Bex 15. the Chatterers to have the option of canceling this C ------------------ -------- ' i been
36 prejudice to any claim the Charterers may otherwise have oi if. The
37 under the Charter Charterers shall make------------------- -----
36 If it appears that the Vessel will be delayed beyond the cance may be necessary to satisfy such requirements at toe Charterers' soie
39 Owners shall, as soon as they are in a position to state wil expense and the Charterers shell indemnify the Owners against all
40 certainty the day on which the Vessel should be ready, give notice thereof to consequences whatsoever (induding loss of Bme) for any failure or inabiky to
the Charterers asking whether they will exercise their option of cancelling,
42 and the option must then be declared within one hundred and sixty-eight (166)
43 hours of the receipt by the C' .........................
:h notice. If the ......
Charterers do
' not‘
44 then exercise their option ol
45 date stated in the Owners' notice sh
46 for the purpose of this Clause. (b) The Charterers shall at their own expense and by their
man. victual, navigate, operate, supply, fuel and repair toe
47 required during the Chatter period and they shall pay al charges and
46 expenses of every kind and nature whatsoever incidental to their use and
49 operation of toe Vessel under this Charter, including any foreign general
50 municipality and/or state taxes. The Master, officers and crew of the Vessel
51 . h e terms of the in 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 reason appointed by the Owners.
53 ' aining the consent to such employment of the insurers and complying with Charterers shall comply with toe regulations regarding officers and crew in
54 :h requirements as to extra premium or otherwise os the insurers may force in the country of toe Vessefs flag or any otter applicable law.
55 senbe. If required, the Charterers shall keep the Owners and the
56
57 it to employ the Vessel or suffer her toe Charterers shall have to
58 employment in any bade of business which is forbidden by the law of any
59 country to which toe Vessel may sail or is otherwise ilidt or carrying illicit or
60 prohibited goods or in any manner whatsoever which may render her liable to
61 condemnation, destruction, seizure or confiscation.
62 Notwithstanding any other provisions contained in this Charter it is agreed that
63 nuclear fuels or radioactive products or waste are specifically excluded from
64 the cargo permitted to be loaded or carried under this Charter This exclusion s list securing toe Owners' approval thereof. If the Owners so
65 does not apply to radio-isotopes used or intended to be used for any agree, toe Charterers shall, il the Owners so require, restore the Vessel to its
65 former condition before the termination of the Charter.
67 Owners' prier approval has been obtained to loading thereof.
(e) The Charterers shall have toe uso of all outfit, equipment, and appianccs
66 on board toe Vessel at toe bme of delivery, provided the same or their
substantial equivalent shall be returned to the Owners on redelivery in the
69 Swev on Delivery and Redellverv - The Owners and Charterers shall each same good order and condibon as when received, ordinary wear and tear
70 appoint surveyors for the purpose of determining and agreeing in writing the expected. The Charterers shall from bme to lima during toe Charter period
71 condit-cn of toe Vessel at the time of delivery and redelivery hereunder. The replace such items of equipment as shal be so damaged or worn as to be
72 Owners shall bear all expenses of the On-Survey including loss of time, if any, unlit for use. Tho Charterers ere to procure that all repairs to or replacement
73 and the Charterers shall bear all expenses of me Off-Survey including loss of 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 (both as regards workmanship and quality of materials) as not to dlmmsh the
75 the cost of any docking and undocking, if required, in connection herewith value ol Iho Vessel. The Cherteters have Ihe right to fit addtional ec
at their expense and risk but the Charterers st
78 Inspection toe end ol the period if requested by the Owners
Inspection - The Owners shall have too right at any time to Inspect or survey
78 the Vessel or instruct a duly authorised surveyor to can îe Charterers an I the Charterers
79 their behalf to ascertain toe condition of toe Vessel ai
80 that the Vessel is being properly repaired and n contracts bi connection therewith and shall reimburse the Owners for ail
61 survey in dry-dcck .shall be made only when too Vessel shaU be in dry-dock expenses Incurred in connection therewith, also (or any
82 ter the Charterers' purpose However, the Owners shall have toe right lo required in order to comply with radio regulations,
63 require the Vessel to be dry-docked for inspection if the Chatterers are not
64 f) The Charterers shall dry-duck Ihe Vessel and dean
docking her at normal classification intervals. The lees (or such inspection or
65 airvey shall in the even of the Vessel being found lo be in toe condition
88 provided in Clause 9 of this Charter be payable by the Owners and shall be
:e in every calendar months alter delivery unless ot
87 paid by the Charterers only in toe event of the Vessel being found to require
68 repairs or maintenance m order to achieve the condkion so provided All time
69 taken at respect d inspection survey or repairs shall count aa tima on hire
SO and shall form part of the Charter period.
91 The Charterers shall also permit the Owners to inspect toe Vessel's log books
92 whenever requested and shall whenever required by the Owners furnish them Irom toe dste and hour of her delivery to toe Cl
93 with full information regarding any casualties or other incidents oi damage to agreed lump sum for any part ol e month Hire ro ranm™ um u.c. uaie a»u
94 the Vcssol. For toe purpose of this Clause, the Charterers shaH keep tho hour when Ihe Vessel is redeliveied by Ihe Charterers to her Owners.
95 Owners advised of the intended employment of toe Vessel (b) Payment of Hire, except lor the first and the lost month's Hire, of sub-
clause (c) of t t s Clause is applicable, shall bo mado in cash without discount
96 8. Inventories arid Consumable Oil and Stores. every month in advance on the firet day of each month in the currency and in
toe manner indicated to Box 23 at the place mentioned to Box 24
 PART II
“BARECON 89" Standard Bareboat Charter
(c) Payment of Hire tor the Inst and last north s Hre if less than a lull mcnth
shall be calculated propoitionaly accordins to the number of days in the

Ш
particular calendar month and advance payment to be effected accordingly
(d) Should the Vessel be lost or missing. Hire to oease from the date and time
S a a s 2 2 8 2 8 8 3 8 888
(o) Time shall be of the essence in relation to payment of Hire hereunder. In
default of payment beyond a period of seven running days, the Owner shal
have the right to withdraw the Vessel from the service of the Charterers
without noting any pretest and without interference by eny other toimalty
whatsoever, and shall, without prejudice to any other claim the Owners may
otherwise have against the Charterers under the Chatter, be entitled to
damages in respect ol all costs and lasses incurred as a resut of the
Charterers' default and the ensuing withdrawal of the Vessel
(f) Any delay in payment of Hire shall entile the Owners to an interest at the
rate per annum as agreed in Box 22. If Box 22 has not been filled in the
current market rate in the country where the Owners have their Principal
Place of Business shall apply.
11. Mortgage
2 2

(a) Owners warramthattheyhavenot effected any mortgage of the Vessel.

(b) The Vessel chartered under this Charter is financed by a mortgage
28 8 8 8 8 8 Ш 8 8 Ш

according to the Deed(s) ol Covenant annexed to this Charter and as stated

in Box 26 By their counter-signature on the Deed(s) of Covenant the
Charterers undertake to have acquainted themselves with all terns,
conditions and provisions of the said Oeed(s) of Covenant The Charterers
undertake that they will comply wth all such instructions or directions in
regard to the employment, insurance, repairs and maintenance of the Vessel,
etc., as bid down in the Deed(s) of Covenant or as may be directed from
time to time during the currency of the Charter by the Mortgage^) in
conformity with the Dced(s) of Covenant
(c) The Owners warrant that they have not effect any mortgage(s) other than
stated in Bax 26 and that they will not effect any other mortgage(s) without toe
prior consent of the Charterers
Clauses 11(a) anti 11(b) aw alternatives: indbate atternaUve
8888 Й 8 8 Ш 8 8 2 2 Ш Ш 8 Ш 3 8 8

12. Insurance and Repairs

(a) During toe Charter period the Vessel shall be kept insured by the
Charterers at their expense against marine, war and Protection and Indemnity
risks in such form as the Owners shall in writing approve, which approval shall
not be unreasonably withheld. Such marine, wer and P. and I. aisurance shal
be arranged by the Charterers to protect the interests at both the Owners and
the Chatterers and mortgagees (if any), and the Chatterers shal be at liberty
to protect under such Insurance the interests of any managers they may
appoint AHInsurance policies shall be in toe joint names of Owners and the
Charterers as their interests may appear.

the Owners shall notify the Charterers whereupon the Charterers shall rectify
the position within seven nrnning days, falling which Owners shal have the
right to wtodraw the Vessel from the service of toe Charterers without
prejudice to any claim the Owners may otherwise have against the

The Charterers shal. subject to toe approval of the Owners and the
Underwriters, effect all insured repairs and shal undertake settlement of al
costs in connection with such repairs as well as insured charges expenses
end liabilities (reimbursement to be secured by toe Charterers from the
Underwriters) to the extend of coverage under toe insurance herein provided

The Charterers also to remain responsible for and to affect repairs and 359 14. Redellvery
settlement of costs and expenses incurred thereby in respect of all other 360 The Chattels shall at toe expiration of toe Charter period redeliver toe Vessel
repairs net covered by the risurance and/or not exceeding any passible 361 at a sale and ice-lree port or place as indicated in Box 18. The Charterers
franchlse(6) or deductibles provided lor in the Insurance. 362 shall give the Ovmers not less than 30 running days' preliminary and not less
All time used for repairs under toe provisions of sub-clause (a) of this Clause 363 than 14 days' definite notice ot expected date, range of ports ot redelivery or
888 888 8888 23328383 3 8 8 8 Ш Ш

and lor lepairs of latent defects according to Clausa 2 above including any 364 port or place of redelivery. Any changes thereafter in Vessel's position shall
deviation shall count as time on hire and shall form part of the Charter period. 365 ba notified immediately to toe Owners.
(b) Under conditions of the above insurances permit addlional insurance to 366 Should the Vessel be ordered on a voyage by which toe Charter period may
be placed by the parties, such cover shall be limited to the amount for each 367 be exceeded the Charterers to have the use of the Vessel tom enable them
party set out in Box 26 and Box 29. respectively The Owners or the 368 to complete the voyage, provided it could be reasonably calculated that toe
Charterers as the case may be shall immediately furnish the other party with 369 voyage would allow redeliveiy about the time fixed the termination of the
particulars of the additional insurance effected, including copies of any cover 370 Charter.
notes or policies and the written consent of the insurers of any such required 371 The vessel shal be redelivered to the Owners in the same or as good
insurance in any case where toe consent of such insurers is necessary. 372 structure, state, condition and class as that in which she was delivered, (air
(c) Should the Vessel became an actual, constructive, compromised or 373 wear and tear not affecting class expected.
agreed total loss under the insurances required under sub-clause (a) of 374 The Vessel upon redeliveiy shall have her suivey cycles up to date and class
Clause 12. all insurance payments for such loss shall be pad to toe Mortgagee, 375 certificates vald for at least the number ol months agreed m Box 12..
if any. in the manner described in the Deedfs) tit Covenant who she!
distribute the noneys betwreen themselves, the Owners and the Charterers 376 15. Nan-Uen and Indemnity
according to their respective interests. The Charterers undertake to notify the
Owners and the Mortgagee, if any, of any occurrences in consequence tit 377 The Charters will not suffer, nor permit to be continued, any lien or
which toe Vessel is likely to become a Total Loss as defined in this Clause. 376 encumbrance incurred by them or thoir agents which nvght have pnonty over
(d) It toe Vessel becomes an actual, constructive, compromised or agreed 379 the title and interest of the Owners in the Vessel.
total loss under toe insurances arranged by toe Charterers In accordance with 360 The Chaitereis further agree to fasten to the Vessel in a conspicuous place
sub-clause (a) of this Clause, this Charter shall terminate as of toe date of 361 end to keep so fastened during the Charter penod a notice reading as
382 follow»:.
(e) The Owners shall upon the request of too Charterers, promptly execute 363 ' This Vessel b the property of (name ot Owners). It is under charter to (name
such documents as may be required to enable the Charterers to abandon toe 364 of Charteiais) and by the term of the Charter party neither the Chaitereis nor
Vessel to Insurers and daim a constructive total loss 365 the Master have any right power or authonty to create, meur or pemna to be
366 imposed onthe Vessel any lien whatsoever."
(I) For the purpose of insurance coverage against marine end war risks under
the provisions of sub-clause (a) of this Clause, toe value ol toe Vessel Is toe 367 The Chaitereis shall indenvufy and hold the Owners haimiess against any
sum Indicated In Box 27. 368 lion ot whatsoever nature arising upon toe Vessel during the Charter period
3B0 while she is under the control ol toe Chaiteres. and against any ctalns
390 against the Owners arsing out of or in relation to too operation on the Vessel
8 Ш Ш 8 8 8

391 by the Charterers Should the Vessel be arrested by reason of claims or

392 liens arising out of her operation hereunder by the Charterers the Charterers
393 that at their own expense take all reasonable steps to secure that within a
394 reasonable time the Vessel it released and ot toe» own expense put up bail
305 to secure releaseof toe Vessel

366 1*. Lien

397 The Ownere to have a lien upon tall caigoes and eub-freight» belonging to the
ggg Chaiteres end eny Bit of Unding freight for all claims under this Charter, end
300 the Charterers to have a Son on the Vessel tor all moneys paid (i advance

209
 PART II
“BARECON 89” Standard Bareboat Charter
400 and not earned. 460 24. War
481 (a) The Vessel unless the consent of the Owners be firs; obtained not to be
401 IT. Salvage 462 ordered nor continue to any place cr cn any voyage nerr be used on any
402 All salvage and towage performed by the Vessel shall be tor the Charterers 463 service which will bring her within a acne which is dangerous as a result of
benefit and the cost of repainng damage occasioned thereby shall be borne 464 any actual or threatened act of war. war. hostilities, warlike operations, acts of
465 piracy or of hostility or malidous damage against this or any other vessel or its
la
by Ihe Charterers 466 cargo by any person, body or State whatsoever, revolution, evil war. crvl
467 commotion or the operation of international law. nor be exposed in any way to
18. Wreck Removal 466 any risks or penalties whatsoever consequent upon the moostion of
sê la a

In the event of the Vessel becoming a wreck or obstruction to navigation the 469 Sanctions, nor cany any goods that may in any way expose her to any risks of
Charterers shall indemnify the Owners against any sums whatsoever which 470 seizure, capture, penalties or any other interference any kind Wiatsoever by
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.
Vessel becoming a week 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 can. stoppages, destination, delivery or in
19. General Average 474 any other wise whatsoever given by the Government of the nation under
sSSÈ I

General Average, if any, shall be adjusted according to the York-Antwerp 475 whose flag the Vessel sails or any other Government or any person (or body)
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
477 committee or poison having under the terms of the war risks insurance on the
The Chatter Hire not to contribute to General Average. 478 vessel toe nght to give any such orders or directions.
479 (c) In toe event of outbreak of war (whether there be a declaration cf war or
20. Assignment and Sub-Demise 430 net) between ant two or more of toe countries as stated in Box 31. beto the
ss5s»

The Charterers shall not assign this Charter nor sub-demise the Vessel 481 Owners and toe Charterers shall have toe nght to cancel this Charter.
except with the prior consent in wilting of the Owneis which shall not be 482 whereupon the Charterers shall redeliver (he 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
Owners shall approve. 434 at destination, or if debarred under this Clause horn 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 s or в at sea at a near open and sate
21. Bills of Lading 487 port as directed by the Owners In all cases hire shall continue to be paid in
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
goods under this Charter shall contain a Paramount Clause incorporating any 489 Charter shall apply until redelrvery.
legislation relating to carrier's liability tor cargo cempulsonly applicable in the
trade; if no such legslabon exists, the Bills of Landing shall incorporate the 490 as. CotniTrissian
British Carriage of goods by Sea Act The Bills of lading shall also contain the
amended newJason Clause and the Both-to Blame CoDisbn Clause 491 ----- The Owners to pay a eomm ccian al toe tala indicaied at Bax 33 to toe
492 Brakotc narnod n Bex 32 an any hire paid under too Thartnr tort in па п а е
The Charterers agree to ndemnity the Owneis against all consequences or
liaUitics arising from the Master, officers or agents Bills of landing or other
documents. 495
ê

497 ----- Should toe parties agree to cancel toe Chatter, the Owr ets-to indemnify tos
496 В-т^тпг nnn -it twy Ітгтт т* шттпгппг hut in rurh n ~ r “-----------------—1
499 Isenteed-toe brokerage af one year's Hire.
(Optional onlyto apply if Sox 25 (ИМ in) SCO 26. Lawand Arbitration
ê

501 28.1. This Charter shal be governed by English law and any dispute arisr.g
8 8 § s a s ê a as èi$ i£ tîs& Ê iêê§ Ê I a

502 out cf this Charter shal be refferred to arbitration in London, one arbitrator
(a) In toe event of toe Requisition for toe Hite of the Vessel by any being appointed by each party, in accordance with Arbitration Acts 1950 and
governmental or other competent authority (hereinafter referred to as 504 1979 or any statutory modification or re-enactment thereof for the tene beng
'Requisition ter Hire") irrespective of toe dale during the Charter pared whan 505 in force. On toe receipt by one party cf the nemrnaton in writing of the other
'Requisition tor Hire’ may occur and irrespective of he length thereof and party’s arbitrator, that party shal appoint their arbitrator within fourteen days,
whether or not it be for an indefinite or a limited period of time, and 507 failing which toe decision of toe sngle Arbitrator appointed shall apply. II two
Irrespective of whether it may or wil remain in force for toe remainder tor toe 508 Arbitrators property appointed shall rot agree they shall appoint an umpire
Charter period, this Charter shall not be deemed thereby or thereupon to be whose decision shall be final
frustrated or otherwise terminated and toe Charterers shall continue to pay
toe stipulated hire in the manner provided by this Charter until toe time when
the Charter would have termnated pursuant to any of the provisions hereof
compensation received or receivable by the Owners shall be payable to toe
Charterers during trio remainder of the Charter period or the period of the
■RequisJion for Hire" whichever to be shorter
The Hire under this Charter shall be payable to the Owners from the same
time as the requisition Hire is payable to the Charterers
(b) In the event of the Owners being deprived of their ownership in the Vessel
by any Compulsory Acquisition of the Vessel or requisition for titJo by ary
governmental or other oompetent authority (hereinafter referred to as
"Compulsory Acquisition"), then, irrespective of the date during toe Charter
period when "Compulsory Acquisition* may occur, this Charter shall tie
deemed terminated as of the date of such "Compulsory Acquisition*. In such 523
event Chatter Hire to be considered as earned and to be paid up to toe date
and time of such 'Compulsory Acquisition".
 “BARECON 89" Standart Bareboat Charter

PART III
PROVISION TO APPLY FOR NEWBUILDING VESSELS ONLY
(Optional, only h>apply <
1eipressly agreed and slated in Box 35)

PART IV
HIRE/PURCHASE AGREEMENT
(•Optional, only to apply t expressly agreedsnd staled in Box 30)

25
26
27
28
'tde for dotation »I Ilia Vaasol from Bio Ship's Regeloi

32
33
34
35
36
37
38
39
40

42
43

PART V
PROVISION TO APPLY FOR VESSELS REGISTERED IN A BAREBOAT CHARTER REGISTRY
{Optional, only to apply d expresslyagreedand slated In Box 40)
1 Definitions 13
3 hereby assigned lo them:
15
16
17
18
19 rant ol the Voaaal beleg delaled hem the Bareboat Chatter Ro.«*«y-
8 of the Vessel are regtCeied as Owners and to which jurisdiction and control of the 20
21
10 Mortgage 22

12

211
 APPENDICE 9Il
1 Shpbioktv RECOMMENDED
THE BALTICAND INTERNATIONAL MARITIME COUNCIL TSsgS'
UNIFORMGENERAL CHARTER (AS REVISED «22. «70 and 1M4)
(To ba uaad for tradn for which no specially approved form la In fdren)
CODE NAME: -GENCON-
Partl
2 Place anddate

3 Owncrs/PInce o( business (Cl 1) 4 Chanorers/Plaoe of business (Cl. 1)

5 Vossofs numo (Cl 1) 6 GT/NT (Cl. 1)

7 DWT all toldon summer loadlinoin metrictons (nbt.) (Cl 1) 8 Prosont position (Cl 1)

9 Expected readyto load (obi.) (Cl 1)

10 Loadng port or plnco (Cl 1) 11 Discharging port or place (Cl. 1)

12. Cargo (also stato quantity and margin inOwners'option, if agreed if full andcomplete cargo not agreedslate'part cargo') (Cl. 1)

13. Freight rate (alsostole whether freight prepaid or payable ondelivery) (Cl. 4) 14. Freight payment (state cunency and method of payment; alsobeneficiary and
bank account) (Cl. 4)

15. State if vessel's cargo handing gear shall not be used (Cl. 5) 16. Laytime (if separate laytimefor load, and dsch. is agreed; fill ina) andb). If
total laytimefor load, and dsch., fill in c) only) (Cl. 6)

17 Shippers/Plaoe of business (Cl. 6) a) Laytimefor loading

18. Agents (loading) (Cl. 6) b) Laytime for discharging

19 Agents (dscharging) (Cl. 6) c) Total laytime for loadng and discharging

20 Demurrage rate and manner payable (loadng and discharging) (Cl 7) 21 Cancelling date (Cl. 9)

22 General Average to be adjusted at (Cl 12)

23. Freight Tax (stale if for the Owners' aocount) (Cl. 13 (c)) 24. Brokerage commission and towhompayable (Cl. 15)

25. Law and Artxtratai (state 19 (a), 19 (b) or 19 (c) of CL 19 if 19 (c) agreed
also slate Plaoe of Arbitration) (if not filled in 19 (a) shall epply) (Cl. 19)

' (a) State maximumamount for small daims/shortened arbitration (Cl. 19) 26. Addition^ clauses covering special provisions, if agreed

Il is mutually agreed lhal this Contract shall be performed street tolha conditionscontained in Ihis Chaner Party which shall indude Part I as well as Pat II. In theevent
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)

P r in te d b y T h e B IM C O C h a r t e r P a r t y E d it o r

212
 PART II
‘Gencon“ Charter (As Revised 1922,1976 and 1994)

1, 5 b agreed tshreen (he wry morxionod mBax 3 os (he Oners of (ho Vessel 1 aVrays wak under lha siperviaon of thoMaster. 75
named n Box & ofthe GLUT Mealed in Box 6 and canying about Ihe number 2 (c) StevedoreDamage 76
or toxtk tons o( dsadwoghi rapacity at told on summer toeime staled in Box 3 The Charterers shall be responsible tor damage (beyond ordinary wear and 77
? tttnn posten os stated n Box 8 ond expected ready to load under this 4 tear) to any pert of the Vessel caused by Stevedores Such damago shall bo 78
Chaner Party aCctl the dale retested in Box 9, and the party mentioned as the 5 notifed as soon as reasonably possible by ihe Master to the Charterers or thar 79
Charterers r Box 4 that' 6 agents and to their Stevedores, felling wtveh the Charterers shall nor be held 80
1he sad Vessel shal. as soon as her poor commitments have been completed. 7 responsible The Master shall endeavour to obtain the Stevedores' written 81
proceed to the losing pcr;s) or pare(s) stated in Box 10 or so near thereto es 8 acknowledgement of liability 82
she nay safety get and 5e atasys afloat, end there Iced a (Id and conpiete 9 The Charterers are obliged to repair any stevedore damage prior to oomplelion 83
cargo (if shipment of deck cargo agreed some to be et Ihe Charterers' risk and 10 of the voyage, but must repair stevedore damago affecting the Vessefs 84
responstoilty) 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 tekyg sc loaded the Vessel shal proceed to the dscharging port(s) or 12 damage was caused or foutd. All addtional expenses incured shall be rot lha 86
ptece(s) stated r Bax 11 as oxtered on sgnmg № of Ladng. 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 gal and te always atoal. andthere deliver the catgo 14 be paidtoIhe Ownersby the Charterersal Ihe demurrage rate. 88

2. Owners' ReepontlMfty Ctout* 15 6. Laytime 89

Ths Ownare are to be responsible for toss of or damage to the goods or for 16 * (a) Separate laytimefor loadinganddischarging
defy in delivery ol the goods arty in case the loss, damage or delay has been 17
caused by personal wait of due rfigence on the part of the Owners or their 18
Vanags ic make tr» Vessel it at respects seaworthy and to secure that she is 19
property named, equipped and supplied, or by the personal act or deteiit of 20
the Oners or the» Manager. 21
.Arc the Owners are nd responsible for toss, damage or delay arising fromany 22
other cause whatsower, even fromthe neglect or default of Ihe Master or crew 23 * (b) Total laytimeforloadng and discharging
or sore after parson employed by the Owners on board or ashore for whose 24
ads they would, but for thrs Clause, be responsible, or fromunseaworthmess of 25
the Vessel on tedrg or commencement of the voyage or at any time 26
wtesoever. 27
3. Dmtatian Cliusa 28
The Vessel has tfoertyto cal al any pert or ports in any order, for any purpose, 29
to sat wihout pflets, to tow ardor assist Vessels in al situations, and also to 30
dsvace for the puposa of savingifeancta property. 3t
4. Payment of Freight 32
(a) The freight at iie rare sreted in3ax 13 shal be paidIncashcatenated on Ihe 33
n£sn <*Ertiy cfcarga 34
(b) &®S5t If sccordng to Box 13 freight is to be peidonshipmenl.it shal be 35
deemedearnedandnon-returnable. Vessel andbr cargolost or not lost. 38
\’€&wr the Ownere nor their agents shal be required to sigt or endorse bills of 37
tadng showing freight prepaid unless lha freight due to the Owners has 38
actuatybeenpad 39
;c) On datterv. If according lo Bor 13 freight, or pert thereof, is payable at 40
drsW y 1 shal not be deemed earned irtfl the cargo is thus delivered. 41
Nctwihstandng the provisions under (a), if freight or pert thereof is payable at 42
daKery ol he ago the Charterers stei have the option of paying the freight 43
on dakverad weighl/qurtiy provided such option is declared before breaking 44
buk and the weighUqjantiy can be ascertained by otEcial weighing machine. 45 * Indicate alternative (a) or (b) as agreed, in Box 16.
orl dal suvey or taty. 46
Cash for VesseTs ordrary dsbursemens e the pat of loadng to ba advanced 47 7.
by lha Charterers, if required, al highest cuter« rste of exchange, subject lo 48
twoR per oerl tocover inssianeeandother expenses. 49
5. LMdlng/Dlschaging 50
fa) Ctrsfsiffeks 51
The cargo shal be btoçtrt into the hekfe. loaded, stowed andbr trimmed. 52
afied. tashed andbr sacued and taken tom the trxete and dscharged by the 53
Cnsterers. flea of any risk, katxcy end expense wtasce/er lo Ihe Owners. 54
The Charterers shal provide and fey at dunage material as required for the 55
proper stowage and protection of the cargo on board, Ihe Owners aiming the 56
ise of al droage salable on boerd The Charterers shal be responstte for 57 8. Lien Clause
and pey He cost of removing ther damage after dscharge of Ihe cargo under 58
this Charier Partyandtine tocoureinti dunnagehas been removed. 59
ДОCargoHanding Gear 60
Unless de Vessel s geedess or triess i has bean agreed between the parties 61
ths *e Vessers gear shal not be used and stated as such n 6 « 15. the 62
Owners shat throughout the diraccn of tcadng/dschaiging give free usa or 63 9. CaneelOng Clause
the Vassa’s cargo hanhtg gear and of suffiraant motive power k> «perde al 64
such cage handing gear. At such equipment to be in good working order. 65
Urrtess caused by negtgence of the stevedores, line losl by beakdawn of the 66
Vëssefs cargo hanefing gear or macive power - po rata the total lurtber of 67
cranas/Wrtches required ac that time for the loadngfdschargng of cargo 68
irrier ths Charier Party - shal not ta rt as tayame a time on demuiage 69
On reqresl the Owners shal pranda free cf charge aanementemchmen from 70
the crew lo tperae foe Vessefs cargo hanc&ng gear, ufess local regtiarions 71
profit* this, n which toner evert shore fabouers shal be for the account of the 72
Charterers. OanemerVwutrimen shal be infer lha Charterers’ nsk and 73
responsforty and as stevedores to be deemed as thee servants tu shal 74
90
The cago shall be loaded within the nunber of ruining days/houis as 91
indcated in Box 16, weather permitting. Sundays and holidays excepted. 92
unless used, inwhichevent time usedshall count. 93
The cargo shall be dscharged within Ihe nunber of running days/hours as 94
indcated in Box 16, weather permitting, Sundays and holidays excepted. 95
unless used, inw hich even! time (feedshall court. 96
97
The cargo shdl be leaded and discharged within the nunber or total running 98
days/hous as indcaled in Bax 16. weather permitting, Sundays and holidays 99
excepted, unless used, inwhich event line usedshall count. 100
(c) Commencement cf laytime (hating anddscharging) 101
Lsytime for loadng and dschargng shal commence al 13.00 hous. if notice ol 102
readness is given tp to end inducing 1200 hours, and d 06.00 hours next 103
working day if notice given during office hours after 12.00 hcuis. Notice of 104
readness al loadng port lo be given to the Snippers named in Box 17 or if not 105
named, to Ihe Charterers or liter agents named in Box 18. Notice or readness 106
al the discharging port lo be given to the Receivers or, if not knmrn, to the 107
Charterersor their agents namedin Ba 19. 108
If the toadng/dscherging berth is not avaiable on the Vessel's arrival at a off 109
the part of loadngtfscharging. the Vessel shall be emitted to give notice of 110
readness within ordnary office hours on arrival Ihere, whether in free pratique 111
or rud, whether customs cleared or not Laytime or time on demurrage shall 112
then count as if she were in berth and in all respects ready for loadng/ 113
dscharging provided that the Master warrants that she is in ted ready in all 114
respeds. Tine used in moving from the place *of wafting to the loadng/ 115
dschargingberthshal not couit as laytime. 116
ir, after inspection, Ihe Vessel is foutd not to be ready in all respects lo load/ 117
dscharge lime lest after Ihe dscovery thereof until the Vessel is again ready to 118
loadtdschargeshall not court as laytime. 119
Time usedbeforecommencement of laytimashall count. 120
121
Demurrage 122
Demurrage at the loading and dscharging port is payable by Ihe Charterers at 123
the rate sided hr Bar 20 in the mamer stated in Bax 20 per day or pro rate for 124
any part of a day Demuiage shaft tell due day by day and shall be payable 125
tponrecapl of theOwners/ invoice. 126
In the event the demurrage is not paid in accordance with the above, the 127
Owners shal give the Charterer 96 ruining hours written notice to rectify Ihe 128
failure. If the demuiage is not paid al the «pidion of this time limit and if the 129
vessel is in a al Ihe loadng port, the Owners are entitled at any time (0 130
terminate the Charter Party and claim damages for any losses caused thereby. 131
132
The Owners shaft have a lien on the cargo and an ell sub-trergNs payable in 133
respect of Ihe cargo, for freight, daadfreiglit. demurrage, dams for damages 134
and for all other amounts die under ths Charter Party indudng costs ol 135
recoveringsame. 136
137
(a) Shodd the vessel not be ready to load (whether in berth or not) on the 138
cancelling dale indexed in Box 21. Ihe Charterers shaft have the option of 139
cancslng ths Charter Parly 140
(b) Should ihe Owners a/tiqpae lhal, despite the exercise of due dtigence. 141
Ihe Vessel will not be ready lo load by the canceling (tala. they shal notify the 142
Charterers thereof without delay stating Ihe expected dale of the Vassals 143
readness to load and asking whether the Charterers will axercse their option 144
of canning theCharter Party, or agrooto a newcancoErg date. 145
Such option must ba declared by tho Charterers within 48 running hous after 146
Ihe recept ol Ihe Owners' notice. If lha Charterers do not exerase their ephon 147
of canceling, then ths Charter Party shal be deemed to be amended such that 148

213
 P A R T II
"Gencon" Charter (As Revised 1922,1976 and 1994)
Ihe seventh day after the new readness dato started in the Owners' notification 149
to the Charterers shall be the newcancelling date. 150
The provisions of sutxlause (b) of this Clause shall operate only once, and in 151
case of Ihe Vessel's further delay, the Charterers shall have tho option of 152
cancelling the Charter Party as per sit-dause (a) of this Clause 153
10. Bills of Lading 154
Bills of Lading shall be presented and signed by the Master as per the 155
'Congerbill' Bill of Lading form, Edtion 1994, without prejudice to this Charter 156
Party, or by the Owners' agents provided written authority has been given by 157
Owners to the agents, a copy of which is to be furnished to Ihe Charterers. Tho 158
Charterers shall indemnify Ihe Owners against all consequences or liabilities 159
that may arise frem the signing of bills of ladng as presented to Ihe extent that 160
the terms or contents of such bills of lading impose or resdt in the imposition of 161
more onerous liabilities upon the Owners than those assumed by the Owners 162
under this Charter Party. 163
11. Both-to-Blame Collision Clause 164 Owners have given notice lo Ihe Charterers of the strike or lock-out affecting 237
If the Vessel comes into collision with another vessel as a result of the 165
negligence of the other vessel and any act, neglect or default of Ihe Master, 166
Mariner, Pilot or Ihe servants of ihe Owners in the navigation or in Ihe 167
management of the Vessel, Ihe owners of Ihe cargo carried hereunder will 168
indemnify Ihe Owners against all loss or liability to the other or non-carrying 169
vessel or her owners in so far as such loss or liability represents loss of, or 170
damage to. or any claim whatsoever of the owners of said cargo, paid or 171
payable by the other or non-carrying vessel or her owners lo Ihe owners of said 172
cargo and set-off, recorded or recovered by the other or non-carrying vessel 173
or her owners as pan of their claim against Ihe carrying Vessel or the Owners. 174
The foregoing provisions shall also apply where Ihe owners, operators or those 175 17. War Risks ("Voywar 1993')
in charge of any vessel or vessels or objects other than, or in addiion to, the 176
collidingvesselsor objects are at fault in respect of a collision or contact. 177
12 General Average and New Jason Clausa 178
General Average shall be adjusted in London unless otherwise agreed in Box 179
22 accordng to York-Antweip Rules 1994 and any subsequent modfication 180
thereof. Proprietors of cargo to pay the cargo's share in the general expenses 181
even if same have been necessitated through neglect or default of Ihe Owners' 182
servants (see Clause 2). 183
If General Average is to be adjusted in accordance with the law and practice of 184
the United Stales of America, Ihe following Clause shall apply 'In the event of 185
accident, danger, damage or disaster before or after the commencement of the 186
voyage, resulting from any cause whatsoever, whether due to negligence or 187
not, for which, or for Ihe consequence of which, the Owners are not 168
responsible, by statute, contract or otherwise, Ihe cargo shippers, consignees 189
or the owners of the cargo shall contribute with Ihe Owners in General Average 190
to Ihe payment of any sacrifices, losses or expenses of a General Average 191
nature that may be made or incurred and shall pay salvage and special charges 192
incurred in respect of ihe cargo. If a salving vessel is owned or operated by the 193
Owners, salvage shall be paid for as fully as if Ihe saKl salving vessel or vessels 194
belonged to strangers. Such deposit as the Owners, or their agents, may deem 195
sufficient lo cover the estimated contribution of Ihe goods and any salvage and 196
special charges thereon shall, if required, be made by Ihe cargo, shppers, 197
consignees or owners of the goods tothe Owners beforedelivery *. 198
13. Taxes and Dues Clause 199
(a) On Vassal -The Owners shall pay all dues, charges and taxes customarily 200
levied on Ihe Vessel, howsoever the amours thereofmay be assessed 201
(b) On camo -The Charterers shall pay all dues, charges, duties and taxes 202
customanly levied on the cargo, howsoever the amount thereof may be 203
204
(c) On freight -Unless otherwise agreed in Box 23. taxes levied on the freight 205
shall be forthe Charterers’ accourS. 206
14. Agency 207
In every case the Owners shall appoint thar own Agent both at the port of 208
tearing andthe port of dscharge. 209
15. Brokerage 210
A brokerage commission at the rate stated in Box 24 on the freight, dead-freight 211
and demurrage earned is due to the paity mentioned in Box 24. 212
In case of norvaecution 1/3 of Ihe brokerage on Ihe estimated amount of 213
freight to be paid by the party responsble for such non-execution lo Ihe 214
Brokers as indemnity for the tatter's expenses and Work In case of more 215
voyages the amourt of indemnity tobe agreed 216
1«. General Strike Clause 217
(a) It there is a strike or (odc-omaffecting a preventing Ihe actual loadng of the 218
cargo, or any part of it, when the Vessel is ready to proceed from her last port or 219
214
□l any lino during tho voyago to tho poll or portc ol looting or oftix Iror omvol 220
there, tho Mastor or tho Owners may ask tiro Chartorms to docloro, that they 72i
agroo to reckon tho laydays os If Ihoro woio no clrlko or lock-out Unloss tho 222
Charterers havo grvon such doclnrolion in writing (by lotogrnm, if noeoesnry) 223
within 24 hours, Ihe Owners shall have tho option ol cancelling this Charier 224
Party. II part cargo has olrondy boon loadod, tho Owners must proceed with 225
sane, (freight payable on loadod quantity only) having liberty to comptoto with 226
other cargo on the way for their own account. 22/
(b) If there is a strike or lock-out affecting or preventing the actual discharging 228
of tho cargo on or aftor Iho Vossd'c arrival at or off port of dischargo and samo 229
has not baen soltlod within 48 hours, Iho Chnrtorots shall havo Iho option of 230
keeping lira Vessol wailing unlit such striko or lock-out Is ol an ond against 231
paying half demurrage after oxpiratfcm of Iho limo providod lor dscharging 232
unlil Ihe slrike or lock-oul lerminales and thereafter foil demurrage shall bo 233
payable until the completion of dscharging, or of ordering Iho Vossol lo a safo 234
port where she can safety dscharge without risk of being detained by striko or 236
lock-out Such orders lo bo given within 48 hours after Ihe Master or Iho 236
the dscharge. On delivery of Ihe cargo at such port, all conditions of this 238
Charter Party and of Ihe Bill of Ladng shaJI apply and Ihe Vessel shall recelva 239
Ihe same freight as if she had dscharged al lire original port of destination, 240
except that if Ihe distance to Iho substituted port exceeds 100 nautical miles, 241
the freight on the cargo delivered al Ihe substituted port to bo inctoasod In 242
proportion. 243
(c) Excepl for Ihe obligations described above, neilher Iho Charterers nor Iho 244
Owners shall be responsible for Iho consoquonces of any slnkos or lock-oulB 245
preventing or affecting Ihe actual loading or discharging of Iho cargo. 246
247
(1) For Ihe purpose of this Clause, Ihe words: 248
(a) The 'Owners' shall include the shipowners, bareboat charterers, 249
dsponent owners, managers or other operators who are charged with the 250
management of the Vessel, and Ihe Master, and 251
(b) 'War Risks' shall include any war (whether actual or threatened), act of 252
war. civil war, hostilities, revolution, rebellion, civil commotion, warlike 253
operations, Ihe laying of mines (whether actual or roportod), acts of piracy, 254
acts of terrorists, acts of hostility or malicious damage, blockades 255
(whether imposed against all Vessels or imposed selectively against 256
Vessels of certain flags or ownership, or against cortaln cargoes or crews 257
or otherwise howsower). by any person, body, terrorist or political group, 258
or Ihe Government of any state whatsoever, which, in Ihe reasonable 259
judgement of the Master and/or Ihe Owners, may be dangerous or are 260
likely to be or to become dangerous to the Vessel, her cargo, crew or other 261
persons on boardtheVessel. 262
(2) irat ary lime before Ihe Vessel commences bating, il appears that, In Ihe 263
reasonijle judgement of the Master andfor the Owners, performance of 264
the Contract of Carriage, or any part of it, may expose, or is likely lo expose, 265
the Vessel, her cargo, crew or other persons on board Ihe Vessel lo War 266
Risks, the Owners may give notice lo Ihe Charterers cancelling this 267
Contract of Carriage, or may refuse to perform such part of it as may 268
expose, a may be likely to i , Ihe Vessel, her cargo, crew or other 269
persons on board the Vessel to War Risks: provided always that if this 270
Contract of Carriage provides that loading or dscharging is lo take place 271
within a range of ports, and at the port a ports nominated by Ihe Charterers 272
the Vessel, her cargo, crew, or other persons onboard the Vessel may be 273
exposed, or may be likely to be exposed, lo War Risks, the Owners shall 274
first require Ihe Charterers to nominate any other safe port which lies 275
within Ihe range for loadng or discharging, and may only cancel this 276
Contract of Carriage if the Charterers shall not have nominated such safe 277
port or ports within 48 hours of receipt of nolico of such requirement 278
(3) The Owners shall not be required to continue lo load cargo for any voyago. 279
or to sirp Bills of Lading fa any port or place, a to proceed a continue on 280
any voyage, or on any part Ihereof. or lo proceed through any canal a 281
waterway, a to proceed lo a remain at any port a placo whatsoever, 282
where it appears, either alter the loadng of the cargo commences, a at 283
arty stage of the voyage thereafter before the discharge of the cargo is 284
completed, that, in Ihe reasonable judgement of Ihe Mastor andfor the 285
Owrtere, Ihe Vessel, ha cargo (a any part thereof), crew a other persons 286
onboard the Vessel (a any one a more of them) may be, a are likely tobe. 267
exposed to War Risks. If it should so appear, tho Ownas may by notico 286
request Ihe Charterers to nominate a safo port for the dscharge of the 289
cargo a any pan thereof, and if within 48 hours of Ihe receipt of such 290
notice, the Charterers shall not have nominated such a port, the Ownas 291
may dscharge the cargo al any safe port of thar chace (includng the pat 292
of loadng) in canploto fulftimont of tho Contract of Cartage Tho Ownas 293
shall be entitled to reaver from the Charterers the extra «ponses of such 294
dscharge and. if tho dischargo takoc place at any pot atha than tho 295
loading pat, to receive tho Ml freight aa though Ihe cage had boon 296
 PART II
"Gencon" Charter (As Revised 1922. 1976 and 1994)

carried lo the dscharging port and if the extra distance exceeds 100 miles. 297
to addtional freight which shall be the same percentage of the freight 298
oortracted tor as the percentage which the extra distance represents to 299
the distance of the normal and customary route. Ihe Owners having a lien 300
onthe cargo for such expenses and freight 301
(4) If at arty stage ol the voyage after the loading of the cargo commences, it 302
appears that, in the reasonable tudgemenl of the Master andtor the 303
Owners, the Vessel, her cargo, crew or other persons on board Ihe Vessel 304
may be. or are likely to be. exposed to War Risks on any part of the route 305
(including any canal or waterway) which is normally and customarily used 306
in a voyage of the nature contracted for, and there is another longer route 307 19. Law and Arbitration
to the dscharging port, the Owners shall give notice to Ihe Charterers that 308
this route will be taken In this event Ihe Owners shall be entitled, if Ihe total 309
extra distance exceeds 100 miles, lo additional freighl which shall be the 310
same percentage o! the freight contracted for as the percentage which the 311
extra distance represents to the dstance of Ihe normal and customary 312
route 313
(5) The Vessel shall have liberty - 314
(a) to comply with all orders, dreclions, recommendations or advice as to 315
departure, arrival, routes, sailing in convoy, ports of call, stoppages, 316
destinations, discharge of cargo, delivery or in any way whatsoever which 317
are given by the Government of Ihe Nation under whose Hag the Vessel 318
sails, or other Government to whose laws the Owners are subject, or any 319
olher Government which so requires, or arty body or group acting with the 320
power lo compel compliance with their orders or dreclions. 321
(b) to comply with Ihe orders, directions a recommendations of any war 322
risks underwriters who have the authority to give the same under Ihe terms 323
of the war risks msuance, 324
(c) to comply with the terms of any resolution of Ihe Security Council of Ihe 325
United Nations, any directives of the European Ccmmunity. the effective 326
orders of any other Supranational body which has the right to issue and 327
give the same, and with national laws aimed at enforcing Ihe same to which 328
Ihe Owners are subject, and to obey the orders and dreclions of those who 329
are chargedwiththeir enforcement; 330
(d) to dscharge at any other port any cargo or part thereof which may 331
render theVessel liableto confiscation as a contraband carrier; 332
(e) to call at any other port to change the crew or any part thereof or other 333
persons an board the Vessel when there is reason to believe that they may 334
be subject lo internment, imprisonmeri or other sanctions. 335
(f) where cargo has not been loaded or has been discharged by the 336 * (c) Any dspute arising out of this Chaita Party shall be referred to arbitration at 411
Owners under any previsions of this Clause, to load other cargo for the 337
Owners! own benefit and carry il lo any other port or ports whatsoever, 338
whether backwards or towards or in a contrary direction to the ordnary or 339
customary route 340
(6) If in compliance with any of Ihe provisions of sub-clauses (2) to (5) of this 341 '** Where no figure is suppled in Box 25 in Part 1, this provision only shall be void but 416
Clause anything is done or not done, such shall not be deemed to be a 342
deviation, but shall be considered as due fulfilment of the Contract of 343
Carriage. 344
of destination 373
(b) If during discharging the Master for fear of Ihe Vessel being frozen in deems 374
it advisable to leave, he has liberty to do so with what cargo he has on board and 375
lo proceedto the nearest accessible port where she can safely discharge 376
(c) On delivery of the cargo al such port, all condlions of the Bill of Ladng shall 377
apply and Ihe Vessel shall receive Ihe same freight as if she had discharged at 378
the original pat of destination, except that if the distance of the substituted port 379
exceeds 100 nautical miles, the freight on the cargo delivered at the sitetituied 380
port tobe increased inproportion 381
382
* (a) This Charter Party shall be governed by and construed in accordance with 383
English law and any dispute arising out of this Charier Party shall be referred lo 384
arbitration in London in accordance with the Arbitration Acts 1950 and 1979 or 385
any statutory mcdfication or reenactment thereof for the time being in force. 386
Unless the parties agree upon a sole arbitrator, one arbitrator shall be 387
appointed by each party and the arbitrators so appointed shall appoint a third 388
arbitrator, the decision of Ihe three-man tribunal thus constituted or any two of 389
them, shall be final. On the receipt by one party of the nomination in writing or 390
the other parly's arbitrator, that party shall appoint their arbitrator within 391
fourteen days, failing which the decision of Ihe single arbitrator appointed shall 392
be final 393
For dsputes where the total amount clamed by ether party does nd exceed 394
Ihe amount staled in Box 25** Ihe arbitration shall be conducted in accordance 395
with Ihe Small Claims Procedure of the London Maritime Arbitrators 396
Association 397
* (b) Tfts Charier Party shall be governed by and construed in accordance with 398
Title 9 of Ihe United States Code and the Maritime Law of the United Stales and 399
should any dspute arise out of this Charier Party, the matter in dspule shall be 400
referred to three persons at New York, one to be appointed by each of the 401
parties hereto, and the third by the two so chosen; Iheir decision or that of any 402
two of them shall be final, and fa purpose of enforcing any award, this 403
agreement may be made a rule of the Court. The proceedings shall be 404
conducted in accordance with Ihe rules of Ihe Society of Maritime Arbitrators, 405
Inc.. 406
Fa dsputes where the total amount claimed by either party does not exceed 407
the amount stated in Box 25** Ihe arbitration shall be conducted in accordance 408
with Ihe Shortened Arbitration Procedure of Ihe Society of Maritime Arbitrators, 409
Inc. 41C
the place indicated in Box 25. subject to the procedures applicable there The 412
laws of theplace indcaled in Box 25 shall govern this Charter Party __ 413
(d) If Box 25 in Part 1 is not filled in. sub-clause (a) of this Clause shalfapply 414
* (a), (b) and (c) are alternatives. Indicate alternative agreed In Box 25. ; 415
Ihe otherprovisions of this Clause shall have full force and remain in effect. 417

& General Ice Clause 345

Port of loading 346
(a) In the event of Ihe loading 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, Ihe 349
Master for fear of being frozen in is at liberty to leave without cargo, and Ibis 350
Charier Parly shall be null and void. 351
(b) If during loadng the Master, for fear of the Vessel being frozen in, deems it 352
advisable to leave, he has liberty to do so with what cargo he has on board and 353
lo proceed to any other port or ports with option of completing cargo tor Ihe 354
Owners' benefit tor arty port or ports including port of discharge. Any part 355
cargo thus loaded under this Charter Party to be forwarded to destination at the 366
Vessel's expense but againsl payment of freight, provided that no extra 367
expenses be thereby caused to the Charterers, freighl being paid on quantity 358
delivered (in proportion if lumpsum), all olher conditions as per this Charter 359
Parly. 360
(c) In case of more than one loadng port, and if one or more of the ports are 361
closed by ice, the Master or Ihe Owners lo be at liberty either to 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 Charier Party mil and. void unless Ihe Charterers 364
agree to load toil cargo at Ihe open port. 365

Port of dscharge 366

(a) Should ice prevent the Vessel from reaching port of discharge the 367
Charterers shall have Ihe option of keeping Ihe Vessel waiting until Ihe re- 368
opening of navigation and paying demurrage or of ordering the Vessel to a safe 369
and immediately accessible port where she can safely dscharge without risk of 370
delention by ice Such orders lo be given wilhin 48 hours after the Maslcr or the 371
Owners have given notice to Ihe Charterers of the impossibility of reaching port 372

Thiseompulor gonoralad forma pnnlodby tuthonty of BIMCO Any Insertion01deletionlo Itwformmust bo clearlyvisible Inwont ol any modnation oolngmud»to mo prapnnloa tut ol in* document wntft e
nol doatly vtaioio. meongnal BIMCOapprwod document «hall apply. GIMCOassume no raeponsiblity lor any loos or domng«caused os a rosul ol dlsaopanclos botweon ino original OJMCOdocunwni and mis

215
 Time Charter
GOVERNMENT FORM
Approved by fhe New York Produce Exchange
November 6 th, 1913 - Amended October 20th, 1921; August 6 th, 1931; October 3rd, 1946
1 This Charter Party, made and concluded in...... .................................................................. day of ...Sg&atfoBC... 20.ÜI
2 Between AMf...
3 ...Owners of the good .CXPJMSflgg.....................SteamsWp/Motorship "JMxffff.. ................................................ o f ....................................
4 ..... ....... tons gross register, and JUJiSJS............tons net register, having engines of......................................................indicated horse power
5 and with hull, machinery and equipment in a thoroughly efficient state, and classed .JBlWCfyUi.KArititf.........................................................
6 at........................... of about ....... cubic feet meters grain capacity and ..1*47.3*469..........cubic feet meters bale capacity, and about
6 M 3 M ......... m etric..................... ........... tons of -32404bs.
7 deadweight capacity (cargo and bunkers, including fresh water and stores not exceeding .4ARjt№tTKAQI№.... one and one half percent of ship‘s deadweight capacity,
8 allowing a minimum of fifty tone) on a draft of,. J.9i69.Mlt(U№...... feet-...... ;;; inohes on........ Summer freeboard salt water, molusive of-permanent- bunker
9 whteh are o f the capacity o f about............. ............................ ..........................-tons-of fuel, and oapable-of -steaming, felly laden,- under goed weather
10 .-. knots o n of about... s-ef-fe Welsh cool best grade -fuel -oil best -grade Diesel oil, and a
10 fu rth e r described in clause 62 thereof
11
12 ............ and. jau:.............................................................................. Charterers of the City of .M tUM Q M m halUsUm fo.............
13 Wltnessoth. That the said Owners agree to let, and the said Charterers agree to hire the said vessel, from the time of delivery, for
14 about one Time-Charter trip via Safeport(s), Safe berth(s), Safe anchorage(s), always afloat, always within Institute Warranty Limits, fo r duration
NJ 15 about 40/60 days without guarantee, Charterers’ intention B H F (M OPA/O DAP) cargoes, within below
5 15 mentioned trading limits.
16 Charterers to have liberty to sublet the vessel for all or any part of the time covered by this Charter, but Charterers remaining responsible for
17 the fulfillment of this Charter Party.
18 Vessel to be placed at the disposal of the Charterers,* .,p<Kfjng£bm>.any.tim(ljJ((y.Pr.mghhjSMtd№.<Mft.ftQl}(i(US.jw;lufc(ii....
19
20 in - suoh- dock or at suoh wharf or place -(where she may -safely lie,- alwayo afloat, atoll times of tide, except os otherwise-provided in olauscNo.-6 )ras
21 the Charterer!] may direct. If-such dook, wharf or plaoe be- not--available- time to oount as— provided— for- in -elause No. S. Vessel on her delivery to be
22 ready to receive cargo with clean-swept holds and tight, staunch, strong and in every way fitted for the ordinary cargo service, having water
22 ballast, winches and
23 donkey-boiler with sufficient steam power, o r -if not equipped - with- donkey boiler, -then -ether powef-sufficient to run all the winches m one and the same
time (and with full complement of competent and certificated officers, seamen, and engineers and-firemen for a vessel of her tonnage), to be employed, in carrying

APPENDICE 10
24
24 lawful merchandise,
25 including petroleum or its produots, in proper containers, excluding See Clause 37.............................................................................. ............................
26 (vessel -is -not to bo employed- in -the carriage- of - bivo^gjagky- but- Charterers are to have the privilege of shipping a small-number on deck at their-risk,-
l N jT
27 all -necessary fittings and other requirements to be for- account o f -Charterers), ■ in -such - lawful trades, between safe- port -and/or-porfe in British North
28 America, ■andfer-United -States ef - Ameiioa, ond/or— West Indies,— and/or— Central— America,— and/or— Caribbean- Sea, and/or— Gulf—of M exioo, and/or
29 M extoo,-and/or South'America r.............................................. ........... ir..— ........ .......................................f.............. ..........-— and/or Europe
30 and/or ■ Africa, and/or Asia, and/or--Australia, and/or Tasmania, and/or New Zealand, but- exoluding—Magdalena -River, River— Sfc— Lawrence- between
31 October— 3-1"— and May 15* — Hudson—Bay and all unsafe ports;also excluding,— when--out of soason.— White - Sea,— Blaok Sea—aad— *e— Bakk;
32 The vessel shall trade in any part o f the world within Institute Warranties Limits ................................................................................................................................................................
33
34
35 as the Charterers »Mheii-Ageftte shell direct (see Clouse68 ), on the following conditions: .......................................................................................................
36 1. That the Owners shall provide and pay for all provisions, ell garbage removal, wages, also all consular fees necessitated because of the Vessel’s nationality
37 of flog and discharging fees of the Crew; shall pay for the insurance of the Vessel, also for all the cabin, deck, engine-room and other necessary stores, including
38 fresh an d boiler water and maintain her class and keep the Vessel in a thoroughly efficient state in hull, machinery and equipment for and during the service.
39 2. That whilst on hire the Charterers shall provide and pay for all the fuel except as otherwise agreed. Port Charges, Compulsory Pilotages, Agencies,
39 Commissions,
40 Consular Charges (except those pertaining to the Crew), and all other usual expenses except those before stated, but when the Vessel puts into
41 a port for causes for which Vessel is responsible, then all such charges incurred shall be paid by the Owners. Fumigations ordered because of
42 illness of the crew or cargoes carried prior to delivery to be for Owners’ account. Fumigations ordered because of cargoes earned or ports crew visited while Vessel is
43 employed under this Charter to be for Charterers’ account.
44 A ll othar-fumigations to be for Charterers’ -■ aoooimt after vessel has been on- Charter for a continuous period of out months or-more.
45 Charterers are to provide necessary dunnage and shifting boards, also any extra- fittings requisite ■ for n speoial trade- o r unusual cargo, but
46 Owners to allow- them-the--изо of any dunnoge and shifting boards already aboard vessel. Charterers to have the privilege of using shifting-boards
47 fee-dunnage, they making-good-any damage thereto.
48 3. That the Charterers, at- the port of delivery, and the Owners, otthe- port of--re-delivery,- shall- take over and pay -fer-all-fiiel-ramaining on
49 board the veaael at the ourrent prices in tho roapeotive ports, the V essel to be delivered with not loss than ..i.im..i.w;..n.i;mn.t.,iiuiuTu.i.i.u.v»mm. tons and not того than
50 iwtono and-to be re delivered with not к
51 4. That the Charterers shall pay for the use and hire of the said Vessel at the rate ofU&iJJM .(KYm .tf№ M Q flri.№ i.an(l/tH ndtedL.V.,&S..Q lU!x).
52 ................. , United States Currency p e r day/pro rata, including overtime, per ton on V essel's--tetal deadweight-carrying oapaoity, including - bunkers ■ and
53 stores, on ■ i..numunnmmmn.m.mmi n m m iim iu jim r summer freeboard, per Calendar Month; commencing on and from the day of her delivery, as aforesaid, and at
54 and after the same rate for any port of a day month; hire to continue until the hour of the day of her re-delivery, any tim e day or night Sundays a n d holidays
54 included, in like good order and condition, ordinary
55 wear and tear excepted, to the Owners (unless lost) at on dropping last outward Sea Pilot 1 Safe Port in Charterers' option o f India/Japan range p ort in 55
Charterers' option, any time day or night Sundays and Holidays included,
56 .............unless otherwise mutually agreed. GM T to apply both ends. Charterers are to give Owners not loss then..................... days
57 notice of-Vessels expected date of re delivery, and probable port
58 5. Payment of said hire to be made to Owners * bank as p e r Clause 66 in N ew York in cash in United States Currency, every IS days
58 semi monthly in advance, and for the last half month or
59 part of same the approximate amount of hire, and should same not cover the actual time, hire is to be paid for the balance day by day, as it becomes
60 due, if so required by Owners, unless bank guarantee or deposit is made by the Charterers, otherwise foiling the punctual and regular payment of the
61 hire, or bank guarantee, or on any repudiatory breach of this Charter Party subject to Clause 43, the Owners shall be at liberty to withdraw the
61 Vessel from the service of the Char­
62 terers, without prejudice to any claim they (the Owners) may otherwise have on the Charterers. First hire and value o f bunkers on delivery to be
62 pa id within 3 banking days after Vessel's delivery. Time to count from 7 a_m. on the working day
63 following that on-whioh written notice of roodineag - has been given -to—Chorteroro o r -their Agente- before A p.m-., but if required- by Charterers,-they
64 o-heve the privilege-of ид ssel at« joh time used to о a-hire.
65 Cash for vessel's ordinary disbursements at any port may be advanced as required by the Captain, by the Charterers or their Agents, subject
66 to 2 1/2% commission and such advances shall be deducted from the hire. The Charterers, however, shall in no way be responsible for the application
67 of such advances.
68 6 . That the cargo or cargoes be laden and/or discharged in any dock or at any wharf or place that Charterers or their Agents may
69 direct, provided the Vessel can safely lie always afloat at any time of tide, except at such places where it is customary for similar size Vessels to safely
70 lie aground. ,
71 7. That the whole reach of the Vessel's Hold, Decks, and usual places of loading (not more than she can reasonably stow and carry), also
72 accommodations for Supercargo, if carried, shall be at the Charterers' disposal, reserving only proper and sufficient space for Ship's officers, crew,
 73 tackle, apparel, furniture, provisions, stores nnd fuel, no passengers allowed. Charterers have the-privilege of-passengors as-far as aoconwnodations-allow. Charterers
74 paying Owners ....- ;.-...- per dayperpaasonger for Qooemmodatkma Qnd meal* However,- it is-agrood that in cose any fines -or extra expenses are
75 inourred in-the consequence of tire oatringe-efpassengera, Charterers ore to beaf-suoh-risk and expense.
76 8 . That the Captain shall prosecute his voyages with the utmost despatch, and shall render all customary assistance with ship s crew and
77 boats. The Captain (although appointed by the Owners), shall - be under the orders and directions of the Charterers as regards employment and
78 agency, and Charterers are to load, stow, and trim and discharge the cargo at their expense under the supervision and responsibility of the Captain, who is
78 to sign Bills of Lading for
79 cargo as presented, in conformity with Male's or Tally Clerk's receipt* Charterers and/or their A gents are hereby authorized by Owners to sign on M aster’s
beh alf the original Bills o f Lading as presented in accordance with sighed M ate’s receipts without prejudice to the Charter , provided that such authorization
can be specifically assigned by Charterers to their nominated Agent. Charterers, have the option to reissue second fu ll set o f Original Bill(s) o f Lading strictly in
conformity with the fü ll set o f the fir s t Original Bill(s) o f Lading, except name o f Shippers/Constgnees and/or destination, which nuty be changed by
Charterers. U te fir s t set o f Original BlU(s) o f Lading to be destroyed and to be sent to Owners immediately. A ll risks/expenses and consequences arising
therefrom to be f o r Charterers ’ account and responsibility. Discharging port(s) shown on BiU(s) o f Lading do not constitute a declaration o f discharging
port(s) and Charterers to have the right to order the Vessel to any port(s) within terms o f this Charter Party. In this case Charterers to give prior notice thereof
well in advance to Owners. Charterers hereby indemnify Owners against any claim and any additional expenses brought by holder(s) o f Bill(s) o f Lading by
reason o f a change o f destination.
80 9. That if the Charterers shall have reason to be dissatisfied with the conduct of the Captain, Officers, or Engineers, the Owners shall on
81 receiving particulars of the complaint, investigate the same, and, if necessary, make a change in the appointments. But this provision does not affect Charterers’
81 right to advance any claim or require Arbitration under CL 17 on disputes regarding the conduct o f the M aster in prosecution o f the voyage and in
81 carrying out the orders an d directions o f the Charterers.
82 10. That the Charterers shall have permission to appoint a Supercargo, who shall accompany the Vessel and see that voyages are prosecuted
83 with the utmost despatch. He is to be furnished with free accommodation, and same fare as provided for Captain's table. Charterers paying at the
218

84 rate of $,XQ,00 per day. Owners to victual Pilots and Customs Officers, and also, when authorized by Charterers or their Agents, to victual Tally
85 Clerks, Stevedore's Foreman, etc. but max 3 persons daily. Charterers paying ot --the current - rate per meal, for all suoh victualling. Cost for
85 Victualling/Cables/Entertainment to be US$ ..ltXQ.Q.,00per month/pro rata.
86 11. That the Charterers shall furnish the Captain from time to time with all requisite instructions and sailing directions, in writing, and the
87 Captain shall keep a full and correct Log of the voyage or voyages, which are to be patent to the Charterers or their Agents, and furnish the Char-
88 terers, their Agents or Supercargo, when required, with a true copy of daily Logs, showing the course of the Vessel and distance run and the con-
89 sumption of fuel.
90 12. That die Captain shall use diligence in caring for the ventilation of the cargo by natural ventilation, weather permitted.
91 13. That the Charterers shall have the option of continuing thk? Chorter for a further period of ..................................................................

93 on giving '.written notice thereo f to the Owners oHheir Agents .-««»...days previous to the expiration of the first named term, or any declared option.
94 14. That if required by Charterers, time not to commence before .2f£..S&R{emkier....ZQ.Ql................................... and should Vessel
95 not have been delivered given written notioe of readiness on or before.....QX!?..Q.CfühGr../iüQ.l........................... but not later than -4-12 p.m. Charterers or
96 their Agents to have the option of canceling this Charter ot any time not4eter-thnn the day of V essel's readiness.
97 15. That in the event of the loss of time from deficiency Master, Officers or Crew, deficiency ot men ox stores, fire, breakdown or damages to
98 bull, machineryor equipment, grounding, detention by average accidents to ship or cargo, drydocking for the purpose of examination or painting
99 bottom, or by any other cause preventing the full working of the vessel beyond Charterers control, the payment of hire shall cease for the time
100 thereby lost, and if upon the voyage the speed be reduced by defect in or breakdown of any part of her hull, machinery or equipment, the time so
101 lost, and the cost of any extra fuel consumed in consequence thereof, and all direct and consequential extra expenses shall be deducted from the hire.
102 16. That should the Vessel be lost, money paid in advance and not earned (reckoning from the date of loss or being last heard of) shall be
103 returned to the Charterers at once. The act of God, enemies, fire, restraint of Princes, Rulers and People, and all dangers and accidents of the Seas,
104 Rivers, Machinery, Boilers and Steam Navigation, and errors ofNavigation throughout this Charter Party, always mutually excepted.
 105 The Vessel shall hove the liberty to sail with or without pilots, to tow and to be towed, to assist vessels in distress, and to deviate for the
106 purpose of saving life and property.
107 17. That- should any - dispute nriso between Ownorc and the Charterers, the matter in dispute - shall bo referred to ■ three-persene-at New York,
108 one to be--appointed by eaoh--of the parties horoto, and the third by the two- so chocon, their decision or thot of any two of them, sludl-be-final, aHd-for
109 the purpose of onforoing any award, this ageeinent may be mode a rule of the Court Tho Arbitrators chnll be oommeroial men-. See Clause 63
110 18. That the Owners shall have a lien upon all cargoes, and all sub-freight for any amounts due under this Charter, including General Aver­
111 age contributions, and the Charterers to have a lien on the Ship for all monies paid in advance and not earned, and any overpaid hire or excess
112 deposit to be returned at once. Charterers will not suffer, nor permit to be continued, any lien or encumbrance incurred by them or their agents, which
113 might have priority over the title and interest of the Owners of the Vessel.
114 19. That all derelicts and salvage shall be for Owners’ and Charterers’ equal benefit after deducting Owners’ and Charterers’ expenses and
115 Crew’s proportion General Average shall be adjusted, stated and settled according to Ruloa 1 to 15,-if>oluMve, 17 to 22, inclusive, and Rule F of
116 York-An twerp Rules 1974 as amended 1990, in London English Law to apply, at cuoh port- or place in the United States ns may- be selected -by - the
116
117 v York. In suoh adjustment disbursements in—foreign ' oteo -shoH-—be exohanged
118 : the rate prevailing on the datec made - and altowoi for damage to cargo olaimed in foreign ourrenoy-shall-b
119 -■ prevailing on the last day of < the port—or-place of final targe of ouoh oorgo from the shiprAverage agreer
120 bond end ouoh additioi may—be required by—the t furnished before deliver y -of the goods. Sueh^ash deposit a
121 Kwrity for i~ of the geod9 and for any salvage and s il charges i
122 required, be made by the- goods, shippers, . fo of the goods to the - before delivery. -Sueh -i
123 - be- peynblo tho adjuster remitted the deponit shall bo held -in a speeial account at the
124 place - of-a dju; of the adjuster pending oottloment of the- General . if -any, shall be paid in
125
126 of noeident, ■ - of the voyage -resulting
127 for which,-—or--for the consequence of whioh, i
219

128 r jointly - and severally, bate- with- the--earner -hi - general average ■ pnymei of any— sacrifices,
129 expenses of o general - overage : : may be made < incurred, and shall pay salvage- and speoial targes I
130 goods. If a salving - owned or operated by the oarrier, - fuHy -i the same manner as if suoh salving ship or
131 ships belonged to strongera.
132 See also Clause 58. Hire and bunkers not to contribute to General Average.
133 20. Fuel used by the vessel while off hire, also for cooking, condensing water, or for grates and stoves to be agreed to as to quantity; and the
134 cost of replacing same, to be allowed by Owners.
135 21. That- as-■ the vessel may be ■ from time to time employed in tropioal waters during the term of this Charter,-
136 pkioe olenned and painted Charterers and Captain oink necessary;- evety six months, reckoning i
137 ie of last painting! and payment of the hire to be suspended until ehe is again in proper a Ifor the servi08 .
138
139
140 22. Owners shall maintain the gear of the ship as fitted, providing |
141 alings and blocks, If vessel ■ is fitted with dorrioks capable— heavier lifts.—Owners i provide neoessory-gear l et
142 —otherwise equipment and—gear for heavier lifts shall— be -for Charterers’ aoe< Owners also to provide on the vessel lanterns and oil for
143 night work, and vessel to give use of electric light when so fitted, but any additional lights over those on board to be at Charterers' expense. The
144 Charterers to have the use of any gear on board the vessel.
145 23. Vessel to work night and day, if required by Charterers, and all winches to be at Charterers' disposal during loading and discharging;
146 steomer -to —provide one winohmnn -per-- hatch to work winohes day and night, os requirod.—Charterers—agreeing - to pay offioers, engineers, winehmen,
147 deck hands and donkeymen for- overtime work done in aooordance with the
148 port, labor from driving— tVinohmen to be—paid by C harterers. In the event of a disabled winch or winches, or
149 insufficient power to operate winches, Owners to pay for shore engine, or engines, in lieu thereof, if required, and pay any loss of time occasioned.
151 2 4 . .....................................‘ ' -
 152 the Aot o f Congress o f the United Statos approved - on the—13* day o f Fe bruary,—1893 ,- ■and entitled ''An- A ct-
153 aspect o f all cargo shippe d under this charter to from the United States o f—America. It is further subject to th e following clauses, both
154 o f which ore to be inoluded in-all bills oC lading issued hereunder:
155 U. S. A. Clause Paramount
156 -This-bill of lading shall hove effect subjeot to the provisions of the Carriage of Goodo by Sea Act of the United -States, approved April
157 16, 1936, which shall bo deemed to be incorporated hereinrand nothing herein contained shall be deemed a surrender by the carrier of
158 any of its righto o
159 be-repugnant to said Aot to any extent, such-term shall be-vokl to that extent, but no-fortheir
160 Both-t ■Blame Collision Clause
161 If the ship-e s intooollision with a
162 Master, mai »Tr pHot or the servants of the Carrier in the navigation o it o f the si j, the o s of the goods oarried
163 hereunder will indemnity the Carrier against all loss or liability to the o n carrying ship or her < » far a ich loss
164 >r damage to, or ary olaim-whatsa fr-of-the e s o f said goods, paid or payable by-the other or non-
165 y irtg ship or-her o othe-o 5 o f said goodo and set -off, reoouped or recovered by-the other-e t-oortying ship or her
166 s port o f their olaim against the carrying ehtp-e
167 25. The vessel shall not be required to enter any- ice-bound - port, or any port where lights or light-ships have been or are about to be with­
168 draw n by reason o f ice, o r where there is risk that in the ordinary course o f things the vessel will not be able on account o f ice to safely enter the
169 port or to get out after having com pleted loading or discharging. Vessel not to break/force ice norfollow an ice breaker.
170 26. N othing herein stated is to be construed as a demise o f the vessel to the Tim e Charterers. The owners to rem ain responsible for the
171 navigation o f the vessel, acts of pilots and/or tug boats, insurance, crew, and all other matters, same as when trading for their own account.
220

172 27. A commission o f 244 -1 .2 5 per cent is payable by the Vessel and Owners to .URGjShmt.&AxxJPAttKM................................................................................................
173
174 on hire earned and paid under this Charter, and also upon any continuation or extension o f this Charter.
175 28. An address com m ission o f 2 lA per cent payable to .£ /(a r f£ tf /$ ............on the hire earned and paid under this Charter.

Clauses 29 to ,.7.7,.inclusive together with New Both to Blame Collision Clause, Netv Jason Clause, Baltime War Clause as attached hereto, are deemed
to befully incorporated in this charter party.

OW NERS DIAM ANT CO. LTD. FO R AND ON BEHALF OF

INDUSTRIAL C ARRIERS INC.

 APPENDICE 11
C/P DATED:
M/V “ ,

FIXTURE NOTE
m v ..................................

FLG COMMON WEALTH OF DOMINICA BLT 76VGEN CGO/ SID /BOX

DOUBLE SKIN DWT 4650 MT ON 7,13 DRFT
CLASS PRS/AMERICAN CLUB GRAIN/BALE 165,000 CBFT
GRAIN FITTED GRT/NRT:2657/1290 1 HO/HADIMS OF HATCH:45,15X11 M
MACGREGOR ; LOA/B/D82,06/14,30/7,13m - GLESS
ALL ABT

- Owners: "................. " Panama

- Managers: "Golden Management Maritime Corp” - St Vincent
- IMO num ber:..................
- call sig n "....................

OWNERS’ WARRANT THAT DURING THE CURRENCY OF THIS C/P:

- VSL HAS MACGREGOR HATCH COVERS

- ALL CERTIFICATES VALID ON BOARD
- VSL IS P+1 COVERED FOR ALL THE DURATION OF THE VOYAGE
- VSL HAS TWO BEAM IN THE MIDDLE OF HOLD FROM PORTSAID TO STARBOARD
- NO BAGGING/STRAPPING NEEDED AS VSL HAS TO LOAD UPTO FULL AND
COMPLETE CARGO
- VESSEL IS SUITABLE FOR GRAB/PIPE LOAD/DISCHARGE AND FULLY GRAIN FITTED
AND ISM FITTED

FOR:

- A C C T :.................................................

LAST FIVE FIXTURES

MV OLGA - L/D/P NIKOLAEV /IZMIR

2 471.520 MTS W BP-B /LD D 15/11/07
MV EMINE H - L/D/P NIKOLAEV /BANDIRMA
2428.475 MTS WBP - B/L DD 30/11/07
MV HUSEYN JAVID - L/D/P NIKOLAEV /BANDIRMA
2 768.473 MTS WBP - B/L DD 03/02/08
MV PALMALI DISCOVERY- L/D/P NIKOLAEV /EL DEKHEILA, EGYPT
6 643.940 MTS WBP- B/Ls DD 31/03/08, 02/04/08
MV PALMALI VOYAGER - L/D/P KHERSON/N1KOLAEV /EL DEKHEILA
6 569.518 MTS WBP - B/L DD 24/05/08

- CARGO: UPTO FULL AND COMPLETE CARGO BULK WBP, SF ABT 1.65 CBM WOG

221
 VSL HAS ABT 165.000 CBFT GRAIN CAPA ALWAYS ACCORDING TO MASTER
DESCRETION ON PERMISSIBLE DFT
- L/PORT PORT: KHERSON/UKRAINE
- D/PORT: 1 RANGE MED EGYPT IN CHOPT, TBA
- 1/1 SAFE BERTH, IF 2ND BERTH USED SAME TO BE FOR CHARTS ACCOUNT AND
TIME TO COUNT
- L/C : 26 JUNE - 03 JULY 2008
- IF VSL DELAYS CHRTRS TO RESERVE THEIR RIGHT TO CANCEL WITHIN 24 HRS
AFTER HAVING OWNS NOTICE FAILING
- LOAD/DISCH 1000/1000 PWWDS OF 24 CHRS SSHEX EIU
- AT L/PORT TIME FROM 17:00 FRIDAY OR DAY PRECEDING A LEGAL OR LOCAL
HOLIDAY TILL 08:00 HRS MON OR
THE FWD NTC EIU. AT D/PORT TIME FROM THURSDAY 12.00 HRS OR DAY PRIOR
LEGAL OR LOCAL HOLIDAY TILL 08.00 AM ON SATURDAY OR DAY AFTER LEGAL OR
LOCAL HOLIDAY NTC EIU
- LAYTIME NON REVERSIBLE
- FRT RATE: 189 000 LSUM 1:1 BSS
- ANY EXTRA TRIMMING FOR ONR’S TIME AND EXPS
- FRT ALWAYS FIO SPOUT/GRAB/TRIMMED
- FREIGHT PAYABLE IN FULL LESS COMM W/I 3 BDAYS AFTER SIGNING AND
RELEASING 'FREIGHT PAYABLE AS PER C/P' OR ‘FREIGHT PREPAID’ COB BS/L INTO
THE DISPONENT OWNERS NOMINATED BANK IN USD CURR IAC BBB
- IF CHRTRS REQUIRE 'FREIGHT PREPAID' BS/L SAME TO REMAIN AT AGENTS
CUSTODY TILL TILL OWNERS CONFIRMATION THAT FREIGHT HAS BEEN CREDITED
TO THEIR ACCOUNT
- NO "SAID TO WEIGHT" TO BE INSERTED IN B/LS BUT CHARTS GTEE THAT THE VSL/
OWNERS WILL NOT BE RESPONSIBLE OF ANY SHORTAGE AT DISCH PORT
- AT THE TIME OF COMPLETE CARGO LOADING AND SEALING/ISSUING BS/L
FDEDAN VA/OCLONL
-TIME START TO COUNT AFTER VALID NOR TENDERED DURING WORKING DAYS
NORMAL OFFICE HRS
-A T L/PORT MON0800/FRI1700 AT D/PORT SAT0800/THUR1700, 08.00/14.00 RULE TO
APPLY BENDS
- NOR CONSIDERED TO BE VALID IF GIVEN DURING LAYCAN, LOCAL WORKING
DAYS/ OFFICE HOURS, WWWW EVEN BY VHF/RADIO/TLX.
- TIME USED BEFORE COMMENCMENT OF LAYTIME NTC BENDS
- TIME USED FOR PROCEEDING FROM ANCHORAGE/WAITING PLACE TO BERTH NTC
AS LAYTIME BENDS
- TIME FOR DEBALLASTING AND DS NTC AS LTIME BENDS
- TIME TO COUNT AT L/PORT UNTIL CORRECTLY ISSUED CGO DOCS ARE ON BOARD
EXCEPT FIRST 3 FREE RUNNING HRS NTC
- IF THE VSL AFTER BERTHING IS NOT FOUND READY IN ALL RESPECTS INITIAL
N.O.R TO APPLY AND TIME NOT COUNT UNTILL SHE IS READY IN ALL RESPECTS TO
LOAD
- MASTER HAS RIGHT TO REJECT DAMAGE CGO IF CHRTS REQUIRE COB BS/L SUB
FOR MUTUAL AGREEMENT WITH 1ST CLASS SURVEYING COMPANY FOR CHARTS
CHOICE AND ACC
- B/L QTTY TO BE AS PER DRAFT SURVEY (FIRST CLASS CHRTRS SURVEYOR)
-DEMM USD 4000 PDPR FREE DESPATCH BENDS
-DEMM IF ANY, TO BE SETTLED WITHIN 7 BDAYS UPON COMPLETION OF
DISCHARGING AFTER OWNRS PRESENT LAYTIME CALCULATION SUCII AS
(SOF+NOR+TS) DULY SIGNED/STAMPED BY MASTER AND AGENTS
- ONCE ON DEM, ALWAYS ON DEM
- CHAG BENDS
-L/PORT AGENT -
-D/PORT AGENT - TBN
-FUMIGATION, IF ANY, FOR CHARTS ACCNT AND TIME LOST
-TAXES/DUES ON CARGO/FRT TO BE FOR CHRTS ACNT
-TAXES/DUES ON VESSEL/FLAG/CREW/OWNERSHIPTO BE FOR OWRS' ACNT
-THE VSL HOLDS TO BE DUTY CLEAN, SWEPT, DRY AND FREE OF SMELL
- 1 SET OF ORIGINAL BS/L TO BE GIVEN TO VSL'S MASTER FOR DISCHARGING
ALLOWENCE. IF BY ANY REASON CHARTS CAN NOT PUT ON BOARD ONE ORIGINAL
B/L THAN VSL WILL DISCH AGAINST THE PRESENTATION OF ORIGINAL BS/L AT
DISCHPORT. IAC OWNRS/MASTER NEVER TO ALLOW DISCH WITHOUT CHRTS CLEAR
WRITTEN INSTRUCTION AND IN THIS CASE TIME WILL COUNT
-ARB/GA IN LONDON , Y/A 74 AS AMMD 90 , LMAA TERMS , ENGLISH LAW TO APPLY
- O/W AS PER SYNA 2000 C/P WITH LOGICAL ALTRS/DLNS/AMNDMS AMENDED
FROM FIXTURE RECAP AND TERMS OF FIXTURE RECAP PREVAIL ON TERMS OF C/P
WITH BROKERAGE COMISSION 2,5% TO “M SHIPPING LTD” + 1,25% TO “PENCHART
CO SA”, MINUS 1000.00 USD FROM 2,50% OF “M SHIPPING LTD” BROKERAGE
COMMISSION TO OWNERS FAVOUR.

CHARTERERS OWNERS
 APPENDICE 12
RECAPITULATION MESSAGE
GOOD MORNING
BOOKED VESSEL BEFORE BUT SHE DELAYS
THUS, OPEN ONCE AGAIN AS FOLL:
OFFER FIRM :
>
> - ACCT EGROTECH INVESTMENTS LTD., BVI
> - STEM WILL BE LIFTED W/N 6 HRS AFTER FIX MAIN TERMS
> - L/D l.SB AAAA NOVOROSSIYSK SHIP YARD/LA SPECIA
> - OWNERS TO SATISFY THEMSELVES WITH ALL RESTRICTIONS REGARDING
> LOA/BEAM/DRAFT/FLAG WITHOUT ANY RESPONSIBILITY WHATSOWEVER
> FROM THE CHRS BOTH AT LOADING AND DISCHARGE PORTS
> - 3500 MTS 2 PCT MOLCHOPT CGO OF STEEL BLOOMS (UW 8 MTS ,
> DIMS 0,33 m x 0,48 m x 5,6 m MAX 12 M)
> - LAYCAN SPOT/PPT
> - L/D 1200/1500 MTS PWWD OF 24 CONSEC HRS SSHEX UU (FRI 17.00/MON 08.00
> HRS) BENDS
> - DEM USD 2000 PDPR/FD BENDS
> - DEM IF ANY TO BE SETTLED WITHIN 10 DAYS AFTER OWNERS PRESENTATION
> OF SOF/NOR/TS TOGETHER WITH OWNERS' INVOICE AND LAYTIME CALCULATION
> BY FAX
> - FRT IDEA USD 20,00 PMT FIOS LSD BSS 1/1
> - 100 PCT FRT PAYABLE WITHIN 3 BANKING DAYS AFTER S/R CLEAN ON BOARD
BS/L MARKED 'FRT PAYABLE AS PER CP' BUT IN ANY CASE BBB.
> IF TRT PREPAID’ BS/L ARE REQUIRED BY CHRS THEN BS/L SHOULD BE KEPT IN
> OWNERS' AGENT S CUSTODY TILL RECEIPT BY THE OWNERS CHRS SWIFT COPY BY
FAX OR E-MAIL THAT FRT REMITTED TO THE OWNERS BANK ACCT. FRT
DEUSRBSLNRVAOCLONL
> - MASTER/OWNERS ARE NOT TO REJECT CARGO, I.E. ALL CARGO AVAILABLE TO BE
> LOADED
> - NOR TO BE TENDERED WWWW BENDS WITHIN ONLY OFFICE HRS 08.00/17.00
> MON TO FRI BY RADIO/CABLE/VHF/TLX AND LAYTIME AT LOADING AND
DISCHARGE PORTS TO COMMENCE AT 14.00 HRS IF NOR IS GIVEN BEFORE NOON
AND AT 08.00 HRS NEXT WORKING DAY IF NOR IS GIVEN AFTER NOON
> - CHRS AGENTS BENDS :
> - SUB PROFORMA D/A ACC
> - VSSL FREE OF ALL EXTRAINS ALL REQUERED CLASS PANDI CERTIFICATE TO BE
> PROVIDED UPON REQUEST
> - TAXES/DUES ON CARGO/FREIGHT TO BE FOR CHRS' ACCT
> - TAXES/DUES ON VSL/FLAG/CREW TO BE FOR OWNERS' ACCT
> - GA/ARB IF ANY IN LONDON, ENGLISH LAW TO APPLY, Y-A RULES '74 AS AMENDED
> '94, LMAA TERMS TO APPLY
> - OWISE GCN "94 CHRS PROFORMA WITH 3,75 PCT TTLIADCOM
>
> BRGDS

224
 R E C A P IT U L A T IO N M E S SA G E

C R EST O C E A N MARININ CO . L.L.C. (S H A R JA H ) U N IT E D A R A B EM IRA T ES

O C E A N C R E ST IN T E R N A T IO N A L (P A K IS T A N )
TEL: 1971-6-573-6823 / +971-6-5 7 3 -6 8 2 5 / FAX: + 971-6 -5 7 3 -5 9 6 3
E M I o c i ’csl(«)cim.ac / o c rcst@ em iratcs.n ct.ae / charterin g @ o ci.co m .p k (C H T N G )
EME: sn p ($ o ci.co m .p k (S & P ) / tan k cr@ o ci.co m .p k (TA N K ER )
EME: oeintl($(>ci.com .pk (O PS)
M SN: ocresl(</)ho lm a il.com (O N EY FOR M SN CH AT)

TO CHARTERING DESK
PES PPSOE SUITABLE TONNAGE :
CI1TRS : R0K1YAH TRADING INT'L
VESSEL PERFORMANCE: PLS ADV FULL DESCRIPTION OF VESSEL

01. CGO / QTTY :30,000MT OF STEEL PIPE 10% MOLCHOP ( MEAS : L. 15 M x DIAM 0.60
M @ 6,6 TON / PCS )
02. I GSP/BAAAA FUZHOU PORT, CHINA
03. 1GSP/A AAAA SIBOLGA PORT - INDONESIA
04. LAYCAN: 1ST - 5TH OCTOBER 2006
05. LOAD/D1SCH RATE : 7000MT/4.000MT PER DAY SHINC
06. FREIGHT: USD 19 PMT BASIS 1/1 FIOST
07. PAYMENT : 100% FREIGHT LESS COMM 2.50% IS PAYABLE WITHIN 5 BANKING
AFTER COMPLE TION LOADING BY TELEGRAPHIC TRANSFER TO OWS
NOMINATING BANK ACCOUNT AND SIGNING OR RELEASING ORI B(S)/L BUT
ALWAYS BEFORE BREAKING BULK
FULL FREIGHT TO CONSIDERING AS EARNED DISCOUNTLESS NON
RETURNABLE WHETHER VSL AND OR CARGO LOST OR NOT LOSE. OWNERS WILL
GIVE FIRST NOTICE OF ETA LOADPORT WHEN VESSEL SAILING FROM LAST PORT
AND THEREAFTER
EVERY DAY OWNERS WILL KEEP CHARTERERS FULLY INFORMED OF VESSELS
POSITION/ETA AT ALL TIMES.
08 DEM: USD8,500.- PD OR PRI HD.
DETENTION USD 5,000 PDPR IF ANY, AT DISPORT DEMURRAGE & DETENTION TO
BE SETTLED
W/l 15 WORK1NGDAYS AFTER COMPLETION OF DISCHARGE AND SUBMITTING
RELEVANT STATEMENT OF FACTS AND THE SHEETS. IT IS ACCEPTABLE TO
CHARTERERS THAT FINAL DEMURRAGE ACCOUNT CAN BE FORWARDED BY
OWNERS BY FAX
09. DUNNAGE SEPARATION, LASHINQ UNLASHING & SECURING MATERIALS TOBE
ARRANGE AND FULLY FOR CHARTS A/C
10. LAYTIME ‘’NON REVERSIBLE’’LAYTIME FOR LOADING AND DISCHARGING
SHALL COMMENCED AT 1300 HRS
IF NOR TENDERED BFORE NOON AND 00.00HRS NEXT WORKING DAY IF NOR
TENDERED AFTERNOON.
11. OWNER’S GUARANTEE THAT SHIP’S GEAR IN GOOD CONDITION WORKABLE FOR
ARRANGE LOADING/DISCH
WORK AND IF NOT WORKABLE AND SHORE CRANE HIRE AT LOADING PORT AND
DISCH PORT TOBE FOR OWNERS ACCT.
12. LIGHTERAGE / LIGHTENING IF ANY, TOBE FOR CHARTERER ACCOUNT AT BOTH
OF PORTS.
225
 13. HATCH TOBE SWEPT CLEANED AND FREE OF OTHER CARGO AND DUST PRIOR
LOADING
14. AGENT OWNERS BOTH ENDS
15. BILL OF LADINGS: CONGEN B/L TO BE USED, CARGO QTY ON B/L TO BE
DETERMINATED BY SHIPPERS DRAFT SURVEY JOINTLY WITH MASTER AT L/PORT,
OWS ARE NOT RESPONSIBLE FOR OUT TURN CARGO QTY AND QUALITY
16. OVERAGE PREMIUM FOR OWNERS ACCOUNT
17. CHARTERER’S RESPONSIBILITY FOR THE PERFORMANCE OF THIS FIXTURE AND
TO PROVIDE THE FULL QUANTITY OF THE CARGO AS PER FIXTURE NOTE AND IN
THE EVENT THE CARGO SHORT SHIPPED OT NOT LOADED CHTR
TO PAY DEAD FREIGHT FOR TOTAL MINIMUM QUANTITY OF CARGO SHORT
SHIPPED OR FOR CARGO NOT LOADED.
18. OWNERS/MASTER WILL GIVE NOTICE 5/3/2/1 - 6 HOURS BEND.
19. OWNERS TO HOLD SHIPPER/STEVEDORE RESPONSIBLE FOR STEVEDORE
DAMAGE TO SHIP CHARTERERS TO BE
LIABLE ON CLAIMS IF ANY FOR THE STEVEDORE DAMAGES AT BOTH ENDS
20. ANY TAXES AND/OR DUES ON CARGO AND/OR FREIGHT TO BE FOR CHARTERERS
ACCOUNT SAME ON IF ANY
TAXES AND/OR DUES ON VESSEL TO BE FOR OWNERS ACCOUNT”
21. CARGO TO BE DELIVERED TO RECEIVE AGAINST ORIGINAL B/L (S) OR
RECEIVER'S LOI WITH BANK ENDORSEMENT
IN OWNER'S P&I (PROTECTION AND INDEMNITY) WORDING, LOI TO BE SIGNED BY
BOTH CHRTRS AND RECEIVERS
22. OWNERS CONFIRM THAT VESSEL HAS BEEN COVERED UNDER P& I CLUB AND
VALID SHIPPING CERTIFICATES
23. ANY DISPUTES ARISING UNDER THIS C.P. ARE TO BE REFERRED TO ARBITRATION
IN SINGAPORE ACCORDING TO ENGLISH LAW
24. ALL OTHER TERMS AND CONDITIONS AS PER OWNERS EXECUTED C/P OR
GENCON 1994
25. THIS FIXTURE IS SIGNED AND BINDING ON BOTH PARTIES, ANY CANCELLATION
OF SHIPMENT THEREAFTER CHARTERER
IS LIABLE TO PAY DEADFREIGHT TO SHIPOWNER
26. ANY ALTERATION OF THIS FIXTURE NOTE WITHOUT SHIPOWNERS
ENDORSEMENT WILL BE INVALID
27. THIS FIXTURE NOTE COMES INTO EFFECT UPON DULY SIGNED BY THE
APPOINTED REPRESENTATIVE OF BOTH PARTIES,
IT CAN BE ACCEPTABEL BY FAX WITH SIGNATURE AND STAMP.
28. SUB OWS MANAGEMENT APPROVAL OF CHRTRS/SHIPPERS TO BE LIFTED LATEST
24HRS AFTER CHRTRS LIFTING THEIR SUBS
29. TOTAL COMM 2.50%
END

PLS TO HEAR
BEST REGARDS
CREST OCEAN MARINE CO. LLC
AS AGENTS / BROKERS ONLY

226
 APPENDICE 13
^ M ML « si
S h a g a n g S h i p p i n g C o . , Lt d.
6/F, Hecny Tow er, 9 Chatham Road South, Tsim Sha Tsui, Kowloon, Hong Kong
Tel: (852) 2907 7898 Fax: (852) 2866 8077

T o : T h e o w n e r s o f th e M V M IN E R A L N IN G B O D a te : 1 l-A P R I L - 2 0 1 3

B o c i m a r I n t e r n a t i o n a l n .v .
D e G e r la c h e k a a i 2 0
B E 2 0 0 0 A n tw e r p e n

D e a r S ir s

S h ip : M V M IN E R A L N IN G B O
Voyage : F r o m P O R T H E D L A N ,W E S T A U S T R A L I A t o M A I N P O R T S ( S ) , C H I N A
Cargo : S P E C I A L F I N E S 5 0 ,0 0 0 W M T ( S A I D T O W E I G H T )
S P E C I A L F I N E S 4 0 ,O O O W M T (S A ID T O W E I G H T )
S P E C I A L F I N E S 3 0 ,0 0 0 W M T ( S A I D T O W E I G H T )
S P E C I A L F I N E S 2 0 ,0 0 0 W M T ( S A I D T O W E I G H T )
S P E C I A L F I N E S 2 0 ,0 0 0 W M T ( S A I D T O W E I G H T )
S P E C I A L F I N E S 1 4 ,9 5 6 W M T ( S A I D T O W E I G H T )
B il l o f la d in g : B / L N o . l I S S U E D A T S H A N G H A I , C H I N A O N 2 7 M A R C H ,2 0 1 3

B /L N o .2 I S S U E D A T S H A N G H A I , C H I N A O N 2 7 M A R C H ,2 0 1 3

B /L N o .3 I S S U E D A T S H A N G H A I , C H I N A O N 2 7 M A R C H ,2 0 1 3

B / L N o .4 I S S U E D A T S H A N G H A I , C H I N A O N 2 7 M A R C H ,2 0 1 3

B / L N o .5 I S S U E D A T S H A N G H A I , C H I N A O N 2 7 M A R C H ,2 0 1 3

B / L N o .6 I S S U E D A T S H A N G H A I , C H I N A O N 2 7 M A R C H , 2 0 1 3

T he a b o v e cargo w as s h ip p e d o n th e a b o v e v e s s e l b y F O R T E S C U E M ETALS
G R O U P L T D L E V E L 2 , 87 A D E L A ID E T E R R A N C E , E A S T P E R T H , W E S T E R N
A U S T R A L IA a n d c o n s ig n e d to TO ORDER f o r d e liv e r y at th e p ort o f M A I N
P O R T (S ), C H IN A but th e b ill o f la d in g has n o t a r r iv e d and w e, SH A G A NG
S H I P P I N G C O . , L T D . h e r e b y r e q u e s t y o u t o d e liv e r th e s a id c a r g o t o O T I C M E T A L
C O . , L T D . o r t o s u c h p a r ty a s y o u b e l i e v e t o b e o r t o r e p r e s e n t C I T I C M E T A L C O . ,
L T D . o r t o b e a c t in g o n b e h a l f o f C I T I C M E T A L C O . , L T D . a t R I Z J H A O P O R T ,
C H I N A w it h o u t p r o d u c t i o n o f th e o r ig in a l b ill o f la d in g .

In c o n s i d e r a t i o n o f y o u r c o m p l y i n g w i t h o u r a b o v e r e q u e s t , w e h e r e b y a g r e e a s f o l l o w s >

1. T o i n d e m n i f y y o u , y o u r s e r v a n t s a n d a g e n t s a n d t o h o ld a l l o f y o u h a r m l e s s in r e s p e c t
o f a n y l i a b i l i t y , l o s s , d a m a g e o r e x p e n s e o f w h a t s o e v e r n a tu r e w h i c h y o u m a y s u s t a i n
b y r e a s o n o f d e l i v e r i n g t h e c a r g o in a c c o r d a n c e w i t h o u r r e q u e s t .

227
2. In the event o f any proceedings being commenced against you or any o f your servants
or agents in connection with the delivery o f the cargo as aforesaid, to provide you or
them on demand with sufficient funds to defend the same.

3. I f in connection with the delivery o f the cargo as aforesaid, the ship, or any other ship
or property in the same or associated ownership, management or control, should be
arrested or detained or should the arrest or detention thereof be threatened, or should
there be any interference in the use or trading o f the vessel (whether by virtue o f a
caveat being entered on the ship’s registry o r otherwise howsoever), to provide on
demand such bail or other security as may be required to prevent such arrest or
detention or to secure the release o f such ship or property or to remove such
interference and to indemnify you in respect o f any liability, loss, damage or expense
caused by such arrest or detention or threatened arrest o r detention o r such
interference, whether or not such arrest or detention or threatened arrest or detention
or such interference may be justified.

4. I f the place at which we have asked you to make delivery is a bulk liquid or gas
terminal o r facility, or another ship, lighter or barge, then delivery to such terminal,
facility, ship, lighter or barge shall be deemed to be delivery to the party to whom w e
have requested you to make such delivery.

5. As soon as all original bills o f lading for the above cargo shall have come into our
possession, to deliver the same to you, or otherwise to cause all original bills o f lading
to be delivered to you, whereupon our liability hereunder shall cease.

6. The liability o f each and every person under this indemnity shall be joint and several
and shall not be conditional upon your proceeding first against any person, whether or
not such person is party to or liable under this indemnity.

7. This indemnity shall be governed by and construed in accordance w ith English law
and each and every person liable under this indemnity shall at your request submit to
the jurisdiction o f the High Court o f Justice o f England.

Yours faithfully
For and on behalf o f
Shagang Shipping Co., Ltd.
The Requestor

F a r a n d on be)
SHAGANG
* m mm

Signature

228
PPENDICE 14

Shipper
B I L L O F L A D IN G b/ l no .

"Name of die company" x/xxx

TO BE USED WITH CHARTER-PARTIES

Reference No.

Consignee

"Name of the company or bank"

Notify address

"Name of the company or bank"

Name of Vessel Port of loading

MV "XXXXX" M ARIUPOL, UKRAINE
Port of discharge
BARL ITALY________________________________________________ ____
Shipper's description of goods Quantity

PR IM E Q U A L ITY BA SIC P IG IRON - PL1, PL2 M ETRIC TONS

C L EA N ON B O A R D

(of which NONE on deck at Shipper's risk; the Carrier not

being responsible for loss or damage howsoever arising)______________
Freight PAYABLE as per CHARTER-PARTY dated
FREIGHT ADVANCE Received on account of
freight:
Time used for loading................days.............. hours.
SHIPPED at the Port of Loading In apparent good order
and condition on board the Vessel for carriage to the Port of
Discharge or so near thereto as she may safely get the goods
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.
FOR CONDITIONS OF CARRIAGE SEE OVERLEAF

Freight payable at Place and date of Issue

DESTINATION MARIUPOL, 2005/01/12

Number of original Bs/L Signature
313 MASTER MV "XXXXXX"
CAPT.

229
 APPENDICE 15
B IL L O F L A D IN G
TO BE USED WITH CHARTER-PARTIES
CODE NAME: "CONGENBILL*
EDITION 1994
ADOPTED BY
THE BALTIC AND INTERNATIONAL MARITIME COUNCIL (BIMCO)

Conditions of Carriage
(1) All terms and conditions, liberties and exceptions o f the Charter Party, dated as overleaf, including the
Law and Arbitration Clause are herewith: Incorporated.
(2) General Paramaunt Clause.
(a) The Hague Rules contained in the International Convention for the Unification o f certain rules relatin
to Bills of Lading, dated Brussels the 25 o f August 1924 as enacted in the country o f shipment, sha
apply to this Bill of Lading. When no such enactment is in force in the country o f shipment, tl
corresponding legislation o f the country o f destination shall apply, but in respect o f shipments to whic
no such enactments arc compulsorily applicable, the terms o f 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 Hague Visby Rules - apply compulsorily, the provisions o f the
respective legislation shall apply to this Bill o f Lading.

(c) The carrier shall in no case be responsible for loss o f or damage to the cargo, howsoever arising prior
to loading into and after discharge from the Vessel or while the cargo is in the charge o f another
Carrier, nor in respect o f deck cargo or live animals.
(3) General Average.
General Average shall be adjusted, stated and settled according to York-Antwerp 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 o f accident, danger, damage or disaster before or after the com m encem ent o f the voyage,
resulting from any causes whatsoever, whether due to negligence or not. for which, or for the consequence o f
which, the Carrier is not responsible, by statute, contract or otherwise, the cargo, shippers, consignees or the
owners o f the cargo shall contribute with the Carrier in General Average to the paym ent o f any sacrifices,
losses or expenses o f a General Average nature that may be made or incurred and shall a pay salvage and
special charges incurred in respect o f 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 o f the goods and any
salvage and special charges thereon shall, if required, be m ade by the cargo, shippers, consignees or owners
o f the goods to the Carrier before delivery.

5). Both-to-Blame Collision Clause.

I f the Vessel comes into collision with another vessel as a result o f the negligence o f the other vessel and any
act. neglect or default o f the M aster,M ariner. Pilot or the servants o f the Carrier in the navigation or in the
management o f the Vessel, the owners o f the cargo carried hereunder will indemnify the C arrier 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 o f the owners o f said cargo, paid or payable by the other or
non-earring vessel or her owners to the ow nersof said cargo and set-off, recouped or recovered by the other
or non-earning vessel or her owners as part o f their claim against the carrying Vessel or the Carrier.
The foregoing provisions shall also apply where the owners, operators or those in charge o f any vessel or
vessels or objects other than, or in addition to. the colliding vessels or objects arc at fault in respect o f a
collision or contact.
For particulars o f cargo, freight destination, see overleaf

230
 APPENDICE 16

s*'*!’« M ATE’S RECEIPT No. xxx-xxx

“Name of the company”

___________________________________________ Reference No. 1

Consignee
“Name of the company or bank”

Notify address
“Name of the company or bank”

Vessel Port o f loading

“ xm xxxxx ” IL Y IC H E V S K , U K R A IN IA N P O R T

Port of discharge
D A M M A M P O R T , S A U D I A R A B IA

Shipper's description of goods Gross weight

W IR E R O D IN C O IL

N E T W E IG H T : XXXXX.XXX M T
G R O S S W E IG H T : xxxx x .x x x M T
N U M B E R O F P IE C E S : « X X C O IL S

S H IP P IN G M A R K S :

S H IP P E D O N B O A R D F R E IG H T P R E P A ID IL Y I C H E V S K , F E B R U A R Y 1 7 ,2 0 0 5

M A S T E R ’S R E M A R K S :

Freight payable at Place and date o f issue

ODESSA, FEBRUARY 17,2005

Number o f orignal M /k

ONE

Signature
 APPENDICE 17

Intuitive Information System

12041 NW 29th Place Sunrise. Florida 33323
PH: 954 578 0722 FX: 954 578 0922 House Bill of Lading
 APPENDICE 18
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 M e d itfm m ^ a n a n d B ln rlr Sea ports in June/Julv 200S
Casualty : Fire in stow of deck cargo off Damictta on 16a 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 with 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.

B/L Port of Shipment Container No(s). Description of cargo and weight C.I.F. Value
No(s> Destination Marks & No(s)
Folio
No(s)

Important In case of damage to/loss of

cargo submit customary claim Please attach copy
documentation, inc). 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.
Melixa Court, 6th Floor, 229, Arch. Makarios III Ave, P.O. Box 51117,3721 Limassol, Cyprus
Tel No: +357-2558 8988, Fax No: +357-2558 3254 E-Mnil: ndmin@shh com cv
Website: www.shh-adjuslers.com Associated
Offices in London and Hamburg

233
 APPENDICE 19
AVERAGE BOND
To Celine Navigation Company Ltd.. St John's. Antigua
Vessel s l v . "NORASIA TAURUS"
V n y a p e an A date From Far East to Mediterranean and Black Sea porta in June/July 2005
Casualty________ Fire in stow of deck cargo off Danrietta on 16thJuly 2005_______________

Port of shipment

_______ Port of destination________________________________ ___________ _____

Rill n f la d in g o r waybill n n m h e rfg l

Container No(s). Description of Cargo and Weight C3F value (please attach copy
Marks & Nos. of nmiimerc-inl invoice)

In consideration of Ihe delivery 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 of the 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 arc oncarried by another vessel and/ or conveyances the following Nan-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 in the vessel she
shall contribute on the basis of her actual value on the date she completes discharge of her cargo.

We also agree to:

0) 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:.

- fVillwriting Agents -Stichling TTnhn Hilhrir.h

(Average Adjusters) Ltd.
Meliza Court, 6th Floor, 229, Arch. Makarios HI Ave., P.O. Box 54117,3721 Limassol, Cyprus
Tel No: +357-2558 8988, Fax No: +357-2558 3254 E-Mail: admin@shh.com.cy
Website: www.shh-adjusters.com Associated
Offices in London and Hamburg

234
 APPEND1CE 20
TO
THE MASTER OF PREVEZA, 31.01.2007
U N SELEN
AT PREVEZA PORT

LETTER OF PROTEST

RE: U N 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 MasterA/essel/Ship Owners fully responsible for any loss/ damage/
expenses/ delays will occur due to the above mentioned facts.

235
 APPENDICE 21

Standard Liner and General Agency Agreement

K M A iB *
The Federation of National Associations of Ship Brokers and Agents
STANDARD LINER AND GENERAL AGENCY AGREEMENT

Revised and adopted 2001

Approved by BIMCO 2001

It is hereby agreed between:
............................ of..... ......................(hereinafter referred to as the Principal)

............................ of...............................................(hereinafter referred to as the Agent)

on the..................................day of.............................................. 20.................... —
that;
1.00 The Principal hereby appoints the Agent as its Liner Agent for all its owned and/or chartered vessels
including any space or slot charter agreement serving the trade between.......... and ...........
1.01 This Agreement shall conAc into effect on.................and shall continue until..... ................
Thereafter it shall continue until terminated by either party giving to the other notice in writing, in which
event the Agreement shall terminate upon the expiration of a period o f... months from the date upon
which such notice was given.
1.02 The territory in which the Agent shall perform its duties under the Agreement shall be.............
hereinafter referred to as the “Territory”.
1.03 This Agreement covers the activities described in section 3 .........................
1.04 The Agent undertakes not to accept the representation of other shipping companies nor to engage in
NVOCC or such freight forwarding activities in the Territory, which are in direct competition to any of
the Principal’s transportation activities, without prior written consent, which shall not unreasonably be
withheld
1.05 The Principal undertakes not to appoint any other party in the Agent’s Territory for the services defined
in this Agreement
1.06 The established custom of the trade and/or port shall apply and form part of this Agreement
1.07 In countries where the position of the agent is in any way legally protected or regulated, the Agent shall
have the benefit of such protection or regulation.
1.08 All aspects of the Principal *s business are to be treated confidentially and all files and records pertaining
to this business are tbe property of the Principal

2.0 Duties of the Agent

2.01 To represent the Principal in the Territory, using his best endeavours to comply at all times with any
reasonable specific instructions which the Principal may give, including the use of Principal’s documen­
tation, terms and conditions.
2.02 In consultation with the Principal to recommend and/or appoint on the Principal’s behalf and account,
Sub-Agents.
2.03 In consultation with the Principal to recommend and/or to appoint on the Principal’s behalf and account,
Stevedores, Watchmen, Tallymen, Terminal Operators, Hauliers and all kinds of suppliers.
2.04 The Agent will not be responsible for the negligent acts or defaults of the Sub-Agent or Sub-Contrac­
tor unless the Agent fails to exercise due care in the appointment and supervision of such Sub-Agent
or Sub- Contractor, Notwithstanding the foregoing the Agent shall be responsible for the acts of his
subsidiary companies appointed within the context of this Clause.
2.05 The Agent will always strictly observe the shipping laws and regulations of the country and will indem­
nify the Principal for fines, penalties, expenses or restrictions that may arise due to the failure of the
Agent to comply herewith.

236
Activities of Agent (Delete those which do not apply)

3.1 Marketing and Sales

3.11 To provide marketing and sales activities in the Territory, in accordance with general guidelines laid down by the
Principal, to canvass and book cargo, to publicise the services and to maintain contact with Shippers, Consignees,
Forwarding Agents, Port and other Authorities and Trade Organisations.

3.12 To provide statistics and information and to report on cargo bookings and use o f space allotments. To announce sail­
ing and/or arrivals, and to quote freight rates and announce freight tariffs and amendments.

3.13 To arrange for public relations work (including advertising, press releases, sailing schedules and general promotional
material) in accordance with the budget agreed with the Principal and for his account

3.14 To attend to conference, consortia and /or alliance matters on behalf o f the Principal and for the Principal’s account

3.15 To issue on behalf of the Principal B ills o f Landing and Manifests, delivery orders, certificates and such other
documents.

3.2 Port Agency

3.21 To arrange for berthing o f vessels, loading and discharging o f the cargo, in accordance with the local custom and
conditions.

3.22 To arrange and co-ordinate all activities o f the Terminal Operators, Stevedores, Tallymen and all other Contractors, *n
the interest of obtaining the best possible operation and despatch o f the Principal’s vessel.

3.23 To arrange for calling forward, reception and loading o f outward cargo and discharge and release o f inward cargo and
to attend to the transhipment o f through cargo.

3.24 To arrange for bunkering, repairs, husbandry, crew changes, passengers, ship’s stores, spare parts, technical and nauti­
cal assistance and medical assistance.

3.25 To carry out the Principal's requirements concerning claims handling, P & I matters, General Average and/or insur­
ance, and the appointment o f Surveyors.

326 To attend to all necessary documentation and to attend to consular requirements. -

3.27 To arrange for and attend to the clearance of the vessel and to arrange for all other services appertaining to the
vessel’s movements through the port

328 To report to the Principal the vessel’s position and to prepare a statement o f facts o f the call and/or a port log

329 To keep the Principal regularly and timely informed on Port and working conditions likely to affect the despatch o f
the Principal’s vessels.

32 Container and Ro/Ro Traffic

Where “ equipment” is referred to in the following section it shall comprise container, flat racks, trailers or similar
cargo carrying devices, owned, leased or otherwise controlled by the Principal.

331 To arrange for the booking o f equipment on the vessel.

3.32 To arrange for the stuffing and unstuffing o f L C L cargo at the port and to arrange for the provision o f inland L C L
terminals.

323 To provide and administer a proper system, or to comply with the principal’s system for the control and registration
o f equipment To organise equipment stock within the Territory and make provision for storage, positioning and
repositioning of the equipment.

324 To comply with Customs requirements and arrange for equipment interchange documents in respect o f the move­
ments for which the Agent is responsible and to control the supply and use o f locks, seals and labels.

3.35 To make equipment available and to arrange inland haulage.

3.36 To undertake the leasing of equipment into and re-delivery out of the system.

327 To operate an adequate equipment damage control system in compliance with the Principal’s instructions. To arrang<
for equipment repairs and maintenance, when and where necessary and to report on the condition o f equipment unde
the Agent’s control.

237
General Agency

3.41 To supervise, activities and co-ordinate all marketing and sales activities of Port, Inland Agents and/or Sub-
agents in the Territory, in accordance with general guidelines laid down by the Principal and to use every
effort to obtain business from prospective clients and to consolidate the flow o f statistics and information,

3.42 To supervise and co-ordinate all activities o f Port, Inland Agents and/or Sub-agents as set forth in the
agreement, in order to ensure the proper performance of all customary requirements for the best possible
operation o f the Principal's vessel in the G A 's Territory

3.43 In consultation with the Principal to recommend and/or appoint on the Principal’s behalf nnd account Port,
Inland Agents, and/or Sub-Agents if required.

3.44 To provide Port, Inland Agents and/or Sub-agents with space allocations in accordance with the Principal'»
requirements.

3.45 To arrange for an efficient rotation o f vessels within the Territory, in compliance with tlic Principal’s instruc­
tions and to arrange for the most economical despatch in the ports o f its area within the scope o f the sailing
schedule.

3.46 To liaise with Port Agents and/or Sub-agents i f and where required, in the Territory in arranging for such
matters as bunkering, repairs, crew changes, ship's stores, spare parts, technical, nautical, medical assistance
and consular requirements

3.47 To instruct and supervise Port, Inland Agents and/or Sub-Agents regarding the Principals requirements
concerning claims handling. P & I matters and/or insurance, and the appointment o f Surveyors. A ll expenses
involved with claims handling other than routine claims are for Principal’s account

3.5 Accounting and Finance

3.5.1 To provide.for appropriate records o f the Principal’s financial position to he maintained in the Agent’s books,
which shall be available for inspection and to prepare periodic financial statements.

3.52 To check all vouchers received for services rendered and to prepare a proper disbursement account in respect
o f each voyage or accounting period.

3.53 To advise the Principal o f all amendments to port tariffs and other charges as they become known.

3.54 To calculate freight and other charges according to Tariffs supplied by the Principal and exercise every care
and diligence in applying all terms and conditions o f such Tariffs or other freight agreements. I f the Principal
organises or employs an organisation for checking freight calculations and documentation the costs for such
checking to be entirely for the Principal’s account

3.55 To collect freight and related accounts and remit to the Principal all freights and other monies belonging to
the Principal at such periodic intervals as the Principal may require. A ll bank charges to be for the Principal '9
account The Agent shall advise the Principal o f the customary credit terms and arrangements. I f the Agent is
required to grant credit to customers due to commercial reasons, the risk in respect o f outstanding collections
is for the Principal’s account unless the Agent has granted credit without the knowledge and prior consent of
the Principal.

3.56 The Agent shall have authority to retain money from the freight collected to cover all past and current dis­
bursements, subject to providing regular cash position statements to the Principal.

3.57 The Agent in carrying out his duties under this Agreement shall not be responsible to the Principal for loss or
damage caused by any Banker, Broker or other person, instructed by the Agent in good fnith unless the same
happens by or through the w ilful neglect or default o f the Agent. The burden o f proving the w ilfu l neglect o f
the Agent shall be on the Principal.

Principal’s Duties

4.01 To provide all documentation, necessary to fulfil the Agent’s task together with any stationery specifically
required by the Principal.

4.02 To give full and timely information regarding the vessel's schedules, ports o f call and line policy insofar as it
affects the port and sales agency activities.

4.03 To provide the Agents immediately upon request with all necessary funds to cover advance disbursements
unless the Agent shall have sufficient funds from the freights collected.

4.04 The Principal shall at all times indemnify the Agent uguinst all claims, charges, losses, damages and expenses
which the Agent may incur in connection with the fulfilment o f his duties under this Agreement. Such indem­
nity shall extend to all acts, matters and things done, suffered or incurred by the Agent during the duration
o f this Agreement, notwithstanding any termination thereof, provided always, that this indemnity 9hnll not
extend to matters arising by reason o f the w ilful misconduct or negligence o f the Agent.
4.05 Where the Agent provides bonds, guarantees and any other forms of security to Customs or other statutory authorities
then the Principal shall indemnify and reimburse the Agent immediately such claims arc made, provided they do not
arise by reason of the wilful misconduct or the negligence of the Agent.
4.06 If mutually agreed the Principal shall take over the conduct of any dispute which may arise between the Agent and
any third party as a result o f the performance o f the Agent’s duties.
5.0 Remuneration
5.01 The Principal agrees to pay the agent and the Agent accepts, as consideration for the services rendered, the com­
missions and fees set forth on the schedule attached to this Agreement Any fees specified in monetary units in the
attached schedule shall be reviewed every 12 months and if necessary adjusted in accordance with such recognised
cost of living index as is published in the country of the Agent.
5.02 Should the Principal require the Agent to undertake full processing and settlement of claims, then the Agent is entitled
to a separate remuneration as agreed with the Principal and commensurate with the work involved.
5.03 The remuneration specified in the schedule attached is in respect o f the ordinary and anticipated duties of the Agent
within the scope o f this Agreement. Should the Agent be required to perform duties beyond the scope o f this Agree­
ment then the terms on which the Agent may agree to perform such duties will be subject to express agreement
between the parties. Without prejudice to the generality o f the foregoing such duties may include e.g. participating in
conference activities on behalf of the Principal, booking fare-paying passengers, sending out general average notices
and making collections under average bonds insofar as these duties arc not performed by the average adjuster.
5.04 If the Tariff currency varies in value against the local currency by more than 10% after consideration o f any currency
adjustment factor existing in the trade the basis for calculation of remuneration shall be adjusted accordingly.
5.05 Any extra expenses occasioned by specific additional requirements of the Principal in the use of computer equipment
and systems for the performance of the Agent’s duties to the Principal shall be home by the Principal.
5.06 The Principal is responsible for all additional expenses incurred by the Agent in connecting its computers to any
national or local port community system.
6.0 Duration
6.01 This agreement shall remain in force as specified in clause 1.01 of this Agreement Any notice of termination shall be
sent by registered or recorded mail.
6.02 . If the Agreement for any reason other than negligence or wilful misconduct of thé Agent should by cancelled at an
earlier date than on the expiry of the notice given under clause 1.01 hereof the Principal shall compensate the Agent.
The compensation payable by the Principal to the agent shall be determined in accordance with clause 6.04 below.
6.03 If for any reason the Principal withdraws or suspends the service, the Agent may withdraw from this agreement
forthwith, without prejudice to its claim for compensation.
6.04 The basis of compensation shall be the monthly average of the commission and fees earned during the previous 12
months or if less than 12 months have passed then a reasonable estimate of the same, multiplied by the number of
months from the dale of cancellation until the contract would have been terminated in accordance with clause 1.01
above. Furthermore the gross redundancy payments, which the Agent and/or Sub-Agent(s) is compelled to make to
employees made redundant by reason of the withdrawal or suspension of the Principal’s service, or termination o f this
Agreement, shall also be taken into account
6.05 The Agent shall have a general lien on amounts payable to the Principal in respect of any undisputed sums due and
owing to the Agent including but not limited to commissions, disbursements and duties.
7.0 Jurisdiction
7.01 a) This Agreement shall be governed by and construed in accordance with the laws of the country in which the
Agent has its principle place of business and any dispute arising out of or in connection with this Agreement shall be
referred to arbitration in that country subject to the procedures applicable there.
b) This Agreement shall be governed by and construed in accordance with the laws o f...........................................
and any dispute arising out of or in connection with this Agreement shall be referred to arbitration a t......................,
subject to the procedures applicable there.

c) Any dispute arising out of this Agreement shall be referred to arbitration at............................ ...... ...................
subject to the law and procedures applicable there.

(subclauses [ a ] f b j & [c] are options. I f [b] or [c] are not fille d in then (a) shall apply.)

239
APPENDICE 22

АА Always Afloat Всегда на плаву

АВТ About Около, приблизительно
ADV Advise Совет, сообщение
А/Е Accept/Except Принимается кроме
AF Advanced freight Аванс фрахта
A/О 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, BDAYS Banking Days Банковский день
BE, BENDS Both Ends (Loads & Discharge ports) На обоих концах (в порту погруз­
ки 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 O f Business Конец рабочего времени дня
CONS Consumption Расход
CONSG Consignment Предписание, письменное
соглашение
COP Custom O f 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 П ростой судна сверх сталии
DISP Dispatch Премия за досрочную обработку
П ростой судна сверх контр
DET Detention сталии
DETS Details Детали

240
 Диспач - половина демереджа за
Dispatch H alf Demurrage on All Time
DHDATSBE все спасённое время в обоих
Saved Both Ends
портах
DHDWTSBE Dispatch H alf 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 o f Arrival Ожидаемое время прибытия
ETC Estimated Time o f Completion Ожидаемое время окончания
ETD Estimated Time o f Departure Ожидаемое,время отхода
ETR Expected Time o f Readiness Ожидаемое время готовности
ETS Estimated Time o f 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 погрузку, 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
Charters pay for cost o f 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 от
from cost o f loading/discharging cargo, оплаты погрузки, выгрузки,
including stowage and trimming штивки и укладки груза Формула
расчёта фрахта
FIOT Free In/Out and Trimmed. As per FIOS ФИОТ. Перевозчик свободен от
but includes trimming, e.g. leveling o f погрузки, выгрузки, штивки (за­
bulk cargoes. FIOS includes sea полнения пустот, выравнивания)
freights, but excludes loading/ навалочного груза. Формула
discharging and stowage costs расчёта фрахта
FO Fuel Oil Жидкое топливо

FOLL Following Следующее

FRT Freight Rate Ставка фрахта
FYG For Your Guidance Для вашего сведения
FYI For Your Information Для вашей информации
GA General Average Общая авария. Все участники
перевозки участвуют в покрытии
убытков

241
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, IMMLY Immediately Немедленно
L/A Letter o f Authority Доверенность
LASH To hold goods in position by use o f 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 М естное 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 M otor Vessel Моторное судно (теплоход)
NEGOS Negotiations Согласования,
NRT N et Registered Tonnage Нетто Регистровый тоннаж
00 Owners Option Опцион судовладельца
OWS Owners Судовладельцы
PC Period o f Charter Продолжительность чартере
PC, PCGO Part Cargo Груз на не полное судно
PCT Percent Процент
PDPR Per Day Pro Rata В день или пропорционально
части дня
PHPD Per Hatch Per Day На люк в день (сутки)
P/L Package List Упаковочный лист
RCVR Receivers Получатели
REDEL Redeliveiy 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 o f the Packing List using Указание в договоре перевозки об
the largest amount the overall freight оплате за фрахтовую тонну дает
liability is calculated on the total RT право перевозчику выбрать меру
amount, multiplied by the freight rate по каждому грузу, дающую
больший фрахт
SHING Sundays and Holidays Included Воскресенья и праздничные дни
включены
SHEX Sundays/Holidays Excluded Воскресенья и праздничные дни
исключены
SOF Statement O f Facts А кт стояночного времени
SSHEX (or Saturdays, Sundays, Holidays Субботы, воскресенья,
SATSHEX Excluded праздничные дни исключаются
SSHINC (or Saturdays, Sundays, Holidays Included Субботы, воскресен ья,

242
SATSHINC) праздничные дни включаются
Subject To Enough Merchandise В зависимости от достаточного
STEM
(Availability o f Cargo) количества груза
TBA To Be Advised Будет сообщено
TBN To Be Nominated Будет номинировано
TS Time Sheet Тайм шит - лист расчёта
сталийного времени и
WIBON W hether In Berth Or Not У причала или нет
WEFPON W hether 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)
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 Навчальне видання

Відіщева Тетяна Василівна, Монастирська Ольга Ігорівна

А Н Г Л ІЙ С Ь К А М О В А
В М О Р С Ь К О М У Б ІЗ Н Е С І Т А П Р А В І

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