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Week 6: Carriage of Goods by Sea - Coggle Diagram
Week 6: Carriage of Goods by Sea
Terminology
Common Carriage / Liner Shipping
Fixed routes / Fixed Schedules and usually standard rates
Conference line
is an association of sea carriers operating lines together and offer common rates. Discounted rates to exporters who exclusively use their conference line
Independent line
carriers have own schedules and rates. Lower than non - discounted conference rates.
They are usually containerised, Ro-Ro, General cargo ships
Charter / Tramp Vessels
Ships have own rates / operate on deman of charterer
Mainly tanker and Bulk carrier shipping: Australian agriculture and minerals exports
Who is responsible for arranging carriage
C and D terms = Seller
F or EXW terms = Buyer
Typical transportation of goods
Seller
Warehouse / Port depository
Ship
Port of destination
Customs warehouse / bonded warehouse
Buyer
Different Contracts of Carriage
Bill of Lading / Seaway bill contracts of carriage
Most commonly used in international sea carriage. Often specific transport documents are commercial requirements / required for payment arranged by financial institutions. Can serve as security because it represents the best claim to the goods
Bill of lading is a receipt that demonstrated that the goods have been loaded on board. Seaway bill is a receitp that demonstrated that the goods have been received and will be loaded but havent
Voyage charterparty
Entire ship chartered for voyage between two ports
Demise / time charterparty
Use of a ship for predetermined period of time
Demise (bareboat): without use of master / crew. Charterer takes responsibility fot ship and cargo
Time: with the use of the crew. Shipowner retains responsibility for ships operations (not cargo)
Bill of lading
It performs three functions
Evidence of receipt of goods by the carrier
Describes the goods loaded, quantity and condition
Clean BOL states that goods have been received and are in good order. A claused BOL describes some defect in the goods
Evidence of terms of contract of carriage
BOL is best evidence of terms of contract between carrier and shipper. Even when there is a separate contractual document between the shipper and carrier (Pyrene co v Scindia Vavigation company)
BOL also constitutes evidence of terms of carriage between the carrier and consignee
It is typically understood under contract terms that a third party (c) cannot claim damages in a contract between a and b. However bill of ladings are different. (goods act 1958)
Document of title (evidence of right to posses goods)
The BOL developed into a document of title ( a document that represents ownership)
The lawful possesion of the BOL represents the goods themselves
Negotiable BOL
Bearer Bills and To order Bills are negotiable
Straight bills are not negotiable
The transfer of the BOL is therefore very significant as it is interpreted as the transfer of ownership of goods from S to B inless there is other intention (eg. a reservation of title clause included in the contract of sale)
Could add a fourth function: The application of some international carriage rules depend on the use of a BOL
Application of Rules
Multiple international rules and some NS have adopted modified international rules
Australia has adopted the Hague Visby Rules (schedule i) But has also intruduced a "hybrid" system, a modified version of the Hague Visby (Carriage of Goods by Sea Act Schedule IA)
Article 10. Rules only apply to contracts for international carriage by sea under a bill of lading (HVR)
The MHVR refers to "sea carriage document"
Applies to outnound carriage of goods from australia
Applies to inbound carriage unless the Hague, HV or hamburg rules apply
Article 1.Only protect carrier once laded and until unloading (HVR)
The MHVR applyies "port to port" / when in charge of carrier
Article 1. Do not apply to goods "carried on deck"
The MHVR applies to good carried on deck
Article 4. Does not provide clear liability for delay on the carrier
The MHVR applies clearer rules and special compensation