International Shipping English by Chen Yang

International Shipping English

Chen Yang

International Shipping Dept. Shanghai Maritime University

2011/6/19

International Shipping English

Chen Yang International Dept. SMU Ph.DCandidate, Business Administration Dept. FudanUniversity

1. A brief introduction to Incoterm 2010

Incoterm 2010, International Chamber of Commerce (ICC)

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Incoterm 2010

TheIncoterms2010rulestakeaccountofthecontinuedspreadof customs-free zones, the increased use of electronic communications in business transactions, heightened concern about security inthemovementofgoodsandconsolidatesin transportpractices. Incoterms2010updatesandconsolidates the'delivered'rules, reducingthetotalnumberofrulesfrom 13to11,andoffersasimplerandclearerpresentationofall therules. Incoterms2010isalsothefirstversionoftheIncoterms rulestomakeallreferencestobuyersandsellersgender-neutral.

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Main features of the Incoterm®2010 rules

What’s the difference?

FOB (for example)

The seller delivers when the goods pass the ship's Incoterm2000 rail at the named port of shipment Risk passes to buyer, including payment of all Incoterm 2010 transportation and insurance costs, once delivered on board the ship by the seller.

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Main features of the Incoterm®2010 rules

The number of Incoterms rules has been reduced from 13 to 11. This has been achieved by substituting two rules that may be used irrespective of the agreed mode of transport — DAT, Delivered at Terminal, and DAP, Delivered at Place — for the Incoterms 2000 rules DAF,DES,DEQ and DDU.

DAT DAP Delivered at Terminal: Delivered at Place: Seller bears cost, risk and Seller bears cost, risk and responsibility until goods are responsibility for goods until unloaded (delivered) at made available to buyer at named quay, warehouse, yard, Two new named place of destination. or terminal at destination. Incoterms Seller clears goods for export, Demurrage or detention rules not import. DAP replaces DAF, charges may apply to seller. DDU. Seller clears goods for export, not import. DAT replaces DEQ, DES.

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Classification of the 11 Incoterms® 2010 rules

EXW, FCA, CPT, CIP, DAT, DAP and DDP,theseseven Incoterms® 2010 rules that can be used irrespective of the Class One mode of transport selected and irrespective of whether one or more than one mode of transport is employed. FAS, FOB, CFR and CIF belong to this class.the point of delivery and the place to which the goods are carried to the buyer are both ports, hence the label “sea and inland waterway” rules. Under the last three Incoterms rules, all mention of the Class Two ship’s rail as the point of delivery has been omitted in preference for the goods being delivered when they are “on board” the vessel. This more closely reflects modern commercial reality and avoids the rather dated image of the risk swinging to and fro across an imaginary perpendicular line.

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Rules for domestic and international trade

Incotermsruleshavetraditionallybeenusedin internationalsalecontracts wheregoodspass acrossnationalboarders.Invariousareasof theworld,however, tradeblocs,likethe EuropeanUnion,havemadeborderformalities betweendifferentcountrieslesssignificant. Consequently,thesubtitleoftheIncoterms® 2010rules formallyrecognize thattheyare available for application to both internationalanddomesticsalecontracts. Asaresult,theIncoterms® 2010rulesclearly stateinanumberofplacesthattheobligation tocomplywithexport/importformalitiesexists onlywhereapplicable.

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Electronic communication

PreviousversionsofIncotermsruleshavespecifiedthosedocuments thatcouldbereplacedbyEDImessages.ArticlesA1/B1ofthe Incoterms® 2010rules,however,nowgiveelectronicmeansof communicationthesameeffectaspapercommunication,aslongasthe partiessoagreeorwherecustomary.Thisformulationfacilitatesthe evolutionofnewelectronicproceduresthroughoutthelifetimeofthe Incoterms® 2010rules.

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Terminal handling charges

UnderIncotermsrulesCPT,CIP,CFR,CIF,DAT,DAP, andDDP,thesellermustmakearrangementsforthe carriageofthegoodstotheagreeddestination.While thefreightispaidbytheseller,itisactuallypaidforby thebuyerasfreightcostsarenormallyincludedbythe sellerinthetotalsellingprice.Thecarriagecostswill sometimesincludethecostsofhandlingandmoving thegoodswithinportorcontainerterminalfacilitiesand thecarrierorterminaloperatormaywellchargethese coststothebuyerwhoreceivesthegoods.Inthese circumstances,thebuyerwillwanttoavoidpayingfor thesameservicetwice:oncetotheselleraspartofthe totalsellingpriceandonceindependentlytothecarrier ortheterminaloperator.TheIncoterms® 2010rules seektoavoidthishappeningbyclearlyallocatingsuch costsinarticlesA6/B6oftherelevantIncotermsrules.

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String sales

Inthesaleofcommodities,asopposedtothesaleofmanufactured goods,cargoisfrequentlysoldseveraltimesduringtransit “downa string” whenthishappens,asellerinthemiddleofthestringdon’t havetoshipthegoodsbecausethesehavealreadybeenshippedby thefirstsellerinthestring.Thesellerinthemiddleofthestring thereforeperformsitsobligationstowardsitsbuyernotbyshipping thegoods,butby “procuring” goodsthathavebeenshipped.For clarificationpurposes,Incoterms® 2010rulesincludetheobligation to “procuregoodsshipped” asanalternativetotheobligationtoship goodsintherelevantIncotermsrules.

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2. The International Transport System

What is shippers’ demand?

To obtain better and cheaper transport over the whole distance from origin to destination

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The modern transport system

Zone Area Transport Sector Vehicle 1 Inter-regional Deep sea shipping Ship Air freight Plane

2 Short-Sea Coastal seas Ship Ferry

3 Land River & canal Barge Road Lorry Rail Train

1: economic between continent, 20,000 ships bulk & liner 2: deliver to region center, 400/6000, cargo flexibility, cabotage 2011/6/19 International Shipping English 12

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Modes of Transport

Railway transport One Five Air transport

Road transport Two Pipeline transport

Four Water transport

Three Modes of Transport

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Vessels

General Cargo Carrier Dry Bulk Carrier； • Coal carrier； Bulk Grain Carrier；ore Carrier Roll on Roll off ship； Refrigerated Ship； Multi-Purpose Ship Container Ship • Full Container ship；Semi-container Ship Tanker； • VLCC；ULCC Liquefied Gas Carrier： • Liquefied Natural Gas Carrier • Liquefied Petroleum Gas Carrier

20• 11/6/19Chemical Tanker International Shipping English 14

Container Terminal Example of a Container Terminal with an Indirect Transfer System

• Gantry Crane； • Tractor；Trailer；Straddle Carrier； International Shipping English 2011/6• /19 Fork lift Truck；Rubber-tired Transtainer；Front –handling Mobile Crane 15

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Commodities traded by sea

The physical character of each commodity determines the type of ship used, the type of cargo handling gear required, and hence the overall structure of the sea transport system. 1.Liquid bulk cargoes which can be stored in tanks, handled by pumping and transported in tankers; 2.Homogeneous bulk cargoes cover a wide range of commodities which are shipped in large quantities and have a granular or lumpy composition which can be handled with automated equipment such as grabs and conveyers. 3.Unit load cargo consists of items which must be handled separately. 4.Wheeled cargo requires special ships with access ramps and multiple deck structures. 5.Refrigerated cargoes present a special case because of their need for chilling or refrigerated transport. This is achieved by refrigeration of either the ship or the container. 2011/6/19 International Shipping English 16

Elements in the bulk transport system

Source: Martin Stopford, 1997 2011/6/19 International Shipping English 17

A crude oil terminal

Source: UNCTAD(1985) 2011/6/19 International Shipping English 18

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An iron ore export terminal

2011/6/19 Source: UNCTAD(1985) International Shipping English 19

Commodities traded by sea

A. Energy Trades Dominates bulk shipping, accounts for 45% of sea borne trade.

2011/6/19 Major crude oil expanIdnteersrna ationndal Shportsippin g English 20 Source；Clarkson Research Studies

Major coal expanders and ports Source；Clarkson Research Studies 2011/6/19 International Shipping English 21

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Commodities traded by sea

B. Agricultural Trades （cereal, sugar, molasses, fertilizer ）

Major grain expanders and ports 2011/6/19Source；Clarkson Research StudiesInternational Shipping English 22

Commodities traded by sea

C. Metal Industry Trades ( 25%)（nonferrous/ferrous）

Major core expanders and ports Source；Clarkson Research Studies 2011/6/19 International Shipping English 23

Commodities traded by sea

D. Forest Products Trade Influenced by the availability of forestry resources E. Other Industrial Material cement, salt, gypsum, asbestos 9% F. Other Manufactures 3% , 50% textile, vehicle

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Dangerous Cargo v According to IMDG code made by IMO: Class 1. Explosive Class 2. Gases 2.1 flammable gases 2.2 non-flammable gases 2.3 toxic gases Class3. Inflammable liquids Class4. Inflammable solids Class5. Oxidizing substances and organic peroxides Class6. Toxic and infectious substances Class7. Radioactive Substances Class8. Corrosives Class9. Miscellaneous dangerous substances

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3. The Shipping Market

vNewbuilding Market

vFreight Market

vSale & Purchase Market

vDemolition Market The cash flow in the market

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The Freight Market

The original freight market --The Baltic Shipping Exchange, London, 1883 the Baltic v The BalticExchange istheworld'sonlyindependentsourceofmaritimemarket informationforthetradingandsettlementofphysicalandderivativecontracts.Its internationalcommunityofover550membersencompassesthemajorityofworld shippinginterestsandcommitstoacodeofbusinessconductoverseenbytheBaltic. v BalticExchangemembersareresponsibleforalargeproportionofalldrycargoand tankerfixturesaswellasthesaleandpurchaseofmerchantvessels. v Thecompanywasfoundedinthemid-18thcentury.Thefirstuseofthenamewasat the VirginiaandBaltickCoffeeHouse inThreadneedleStreetin1744,andwas registeredasaprivatelimitedcompanywithsharesin1900.Todaythe exchange is ownedbyitsmembercompaniesandisnotpubliclytradedonastockexchange.Itis operatedbyamember-electedBoardofDirectors.Ithas20employeesandislocated at38StMaryAxeincentralLondon. 2011/6/19 International Shipping English 27

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Liner Shipping

v General Cargo Liner Shipping § Can meet the demand for carriage of small batches of goods by sea; § Can meet the demand for carriage of every kind of goods by sea, and assure their quality; v Container Liner Shipping § Boasts advantage in speed and carriage quality, compared with general cargo liner shipping.

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Liner Shipping

General Cargo Liner Container Liner Shipping Shipping 1. Can meet the demand for Boasts advantage in speed and carriage of small batches of goods carriage quality, compared with by sea； general cargo liner shipping. 2. Can meet the demand for carriage of every kind of goods by sea, and assure their quality;

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The ‘cargo liner’ era 1869–1966

Untilthe1960slinercompaniesranfleetsofmulti-deckvesselsknownas cargoliners,versatileshipswiththeirowncargohandlinggear.Shippinghad notsubdividedintothemanyspecialistoperationswehavetodayandtheliner serviceshadtocarryamixtureofmanufactures,semi-manufactures,minor bulksandpassengers. Filling the ship was the main aim and ship designers were preoccupied with buildingflexiblevesselswhichcouldcarryallsortsofcargo—eventhefirst oiltankersbuiltatthistimeweredesignedtocarryageneralcargobackhaul. Themulti-deck ‘cargoliner’,withitscapacitytocarrybothgeneralcargoand bulks,wasthepreferredchoice. Intherapidlygrowingeconomyofthe1950sand1960s,shippersinthese tradesneededfast,reliable,securetransportandtheshortcomingsofcargo linersbecameincreasinglyobvious. Thecost,complexityandpoordelivery performance ofthecargolinersystembecameamajorstumblingblock. 2011/6/19 International Shipping English 30

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The container era 1966–95

Standardizing the cargo unit allowed liner companies to invest in mechanized systems and equipment which would automate the transport process and raise productivity. At sea, container tankers were introduced in the New York to Houston trade in 1956, and in 1958 the California to Hawaii trade had been containerized.

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The consequences of containerization

Containerizationofthelinertradestookabout20years,bywhichtimeallofthemajor linerroutesandmostoftheminoroneshadbeencontainerized. 1.Unitizationwasverysuccessfulinitsmainobjectiveofreducingporttime.The comparisonoftheoperatingperformanceofatraditionalPriamclasscargoliner withtheLiverpoolBaycontainershipillustratesthechange.The22,000dwtcargo linerspent 149 daysayearinport, 40 percentofitstime.The47,000dwt containershipspentonly 64 daysayearinport, 17 percentofitstime； 2.Previouslymostlinercompaniessawtheirresponsibilitiesas beginningand endingattheship’srail， unitizationgavethemtheopportunitytooffershippers a ‘door-to-door’service； 3.Thebusinessconsolidatedintofewercompanies.Hundredsoflinercompanies disappearedandlinershippingbecamethemostconcentratedsectoroftheshipping business. 4.Minorbulkcargoeswhichhadoccupiedthedeep-welltanks,lowercargoholdsand ro-rodecksofcargolinersmovedintospecialistvesselssuchas ‘conbulkers’,parcel 2011/6/19 International Shipping English 32 tankers,vehiclecarriersandmini-bulkers.

Characteristics of Liner Shipping

vThere is no written contract of carriage with details between the carrier and the shipper before the goods are loaded on board; vGeneral Cargo: take delivery alongside the ship; vContainer: Received at the CFS of port of loading by the consolidator / CY; vCosts of loading, discharging, tally and other handling operations are usually at the line’s account vLaytime is not considered as well as demurrage and dispatch money.

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Container Liner Shipping

Container (Box, Van, Cube) v In accordance with the ISO definition, containers are a kind of transport equipment. v In practice, they are deal with as SOC, COC, OWC; v Types of container § DC § RF § OT § Plat form based container § Pen Container § TK § Car Container

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Container Marks v AccordingtoISO790-73,thefollowing mattersshouldbemadeoutonthecertain positionsofacontainer： GroupOne:codeofcontainer,serial numberandcheckdigit GroupTwo:codeofnationality,codeof sizeandtype; GroupThree:Maxgrossandtare

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Stuffing of Containerized Goods

The container should tally with 4 posts, 6 surfaces and 8 the standard of ISO, but in corners of a container should be practice IICL-55 applied instead. in good condition;

Selection and Every jointing part Inside of the containers should be firm Examination of should be clean, dry, no Container odor, and dust

The container should The container should be certified be watertight and light tight;

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Modes of handling & Taking over of Containerized Cargo

v FCL: refers to the cargo, which is loaded, counted and sealed and also the CLP thereof is made by the shipper. § The carriers usually bear responsibility, in accordance with the printed clauses on the surface and the back of B/L and additional clauses on the face of B/L, such as STC, SLAC, and other unknown Clauses. v LCL: refer to the cargo, which is loaded, counted and sealed and also the CLP thereof is made by the CFS of the Carrier.

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Manner of Handling/Taking over of Containerized Cargo

v DOOR v CFS v CY v DOOR-DOOR v …

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Shipping Documents vDocuments in GeneralCargo Liner Service § Documents Applied at port of loading 1. Booking Note, B/N 2. Joint Sheets for shipping (usually constituted by the following sheets, namely, B/N and its counterfoil; Shipping Order, S/O; Mate’s Receipt M/R) 3. Loading List 4. Manifest 5. Stowage Plan 6. List of dangerous Cargo

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vDocument Applied at port of discharge § Boat Note § Over-Landed and Short-Landed Cargo List § Broken & Damaged Cargo List § Delivery Order

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v Documents in Container Liner Service § B/Nof containerized cargo (Dock Receipt joint Sheets) ① 1st sheet: counterfoil of shipper ② 2nd sheet: counterfoil of shipping agent ③ 3rd sheet: Freight Notice (1) ④ 4th sheet: Freight Notice (2) ⑤ 5th sheet : Shipping Order -----(Attached leaf) Application for payment of port due ⑥ 6th (light red) copy of D/R------Chief office Sheet ⑦ 7th (Yellow) original Dock Reciept ⑧ 8th Counterfoil of freight forwarder ⑨ 9th Return Receipt of Slot Allotment (1) ⑩ 10th Return Receipt of Slot Allotment (2)

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vPre-allot list of container vEquipment interchange receipt vContainer loading Plan

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Marine Bills of Lading vType of B/L § Sorted according to whether the cargo aboard or not • On board B/Lor Shipped B/L • Received for shipment B/L § Sorted according to how consignee indicated on the B/L • Straight B/L • Bearer B/L • Order B/L § Sorted according to whether foul remark indicated on the B/L • Clean B/L • Unclean B/L or foul B/L 2011/6/19 International Shipping English 43

Unclean B/L or foul B/L

vApparent good order & condition vUnfavorable remark Ø About the package and marks u Marks mixed (not N/M); u Insufficient, unrecognizable, invisible, various Marks Ø Content u Content Damaged；exposed, lost, broken, leakage, caked ; Ø Broken and damaged cargo ubroken, torn, chafe, patch, refilled, stained , deteriorrtated uCrash, smash, nail-off

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v Sorted according to the transport manner applied § Direct B/L § Transshipment B/L or through B/L § Combined Transport B/L, intermodal transport B/L; multimodal transport B/L; v Sorted according to the Issuer of the B/L § Liner B/L § NVOCC B/L v Sorted according to the date of B/L issued § Advanced B/L § Anti-date B/L § Post-date B/L 2011/6/19 International Shipping English 45

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vOn deck B/L vOmnibus B/L vSeparate B/L vSwitch B/L vMemo B/L vStale B/L

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Tramp Shipping

Voyage Charter Time Charter Bareboat Charter Theshipownerisresponsible The charterer is responsible Øsingle trip charter forprovidingseaworthyship for crewing, provisioning and andtherelatedcharges.The Øreturn trip charter fuelling, maintaining and renterhastherighttodispatch even paying different taxes Øconsecutive voyages the ship, but bear all or duties within a period of expendituresintransit,suchas time, usually a number of charges for fuels, port and years loading&unloading.

The charter or The charter Hire a ship hiring of a vessel of a ship for a without crew and crew for (a) definite and ship’s voyage(s) period of time. master

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Voyage Charter

vA voyage charter provides transport for a specific cargo from A port to B port for a fixed price per ton. vIn a voyage charter, demurrage and despatch normally present problems, especially when there is port congestion.

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Time Charter v Atimechartergivethecharteroperationalcontroloftheships carryinghiscargo,whileleavingownershipandmanagement ofthevesselinthehandsoftheship-owner. v Theship-owner:operatingcost v Thecharterdirectsthecommercial operationsofthevessel andpaysallvoyageexpenses.(bunker,portcharges) v Althoughsimpleinprinciple,inpracticetimechartersare complexandinvolverisksforbothparties. § FortheCharter:theship-ownermuststatethevessel’sspeed, fuelconsumption,andcargocapacity.Thehirewillbeadjustedif theshipsdoesnotperformtothesestandards § FortheShip-owner 2011/6/19 International Shipping English 49

COA (Contract of Affreightment) v The Ship-owner agrees to carry a series of cargo parcels for a fixed price per ton. v Switch cargo between vessels to give the best possible operating pattern v Industrial Shipping

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The Bare Boat Charter vWhat is bare boat charter? The investor, not necessarily a professional ship owner, purchases the vessel and hands it over to the charterer for a specified period usually ten or twenty years. The charterer manages the vessel and pays for all operating cost and voyage costs. v The advantage of the bare boat charter. The investor is often a financial institution, such as a life insurance company, and he may obtain a tax benefit. The shipping company does not tie up its capital.

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The Operation of Tramp Shipping

vCirculation （Open tonnage） PLS PPS SUITABLE BIZ? (TCT/VC/ TC ) MV KANG QIANG -OPEN YOKOHAMAO/A 4/SEP/2006 IAGW/WP MV KANG CHANG (ALL DETAILS ABOUT) OWNERS : EVER VIEW SHIPPING LTD ……

vCargo Offer

vThe Estimation of Freight Rates or Charter Hire at Voyage Charter

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Pay more attention to the follows

vThe ship particular: speed, consumption, length, age, depth, cargo capacity, dimensions, cargo handling gear… vLocation and open date are very important, especially at the spot market

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Here below are the major step of voyage estimation

Step 1 To calculate the timeof the voyage

Step 2 To calculate the consumption of fuel

Step 3 To calculate the quantity of cargo carried and the freight income

Step 4 To estimate the cost of the voyage and the profitability

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v BDI BDI BCI BPI BSI BHSI § Capesize（BCI）本周 2366 3695 2432 1532 835 § PMX（BPI）上周 2495 3994 2304 1628 856 § SuperMax（BSI）涨跌额 -129 -299 128 -96 -21 环比涨 -5.17 -7.49 5.56 -5.90 -2.45 § Handysize（BHSI）跌幅 v BCI：Baltic Capesize Index v BPI：Baltic Panamax Index v BCI & BPIstandard vessel and route ※ Front Haul，Back Haul，Atlantic RV，Pacific RV？

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Daily Report

v Baltic Exchange Daily Fixture/Index List 24/11/2010 v Comment plus Fixture

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Market Report (1) vTanker Market Report Aden to Persian Gulf and Japan – Sponsalis, 55,000t World scale 205, (SSS)

What is “Worldscale”?

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Market Report (2) – Worldscale index

v Total Capacity v 75,000 tonnes v Average Service Speed v 14.5knots v Bunker consumption steaming v 55 tonnes per day v other v 100t per round voyage v in port v 5 tonnes per port v Grade of fuel oil v 380cs v Port time v 4 days for a voyage from one loading port to another discharging port v Fixed hire element v $12,000 per day v Bunker price v US$116.75 per tonnes v Canal Transit time v 30 hours per Suez Transit 2011/6/19 International Shipping English 58

FFA

vFFA-Forward Freight Agreement BasedontheBDI,astatisticalindexcoveringfreightrateson elevendifferenttraderoutes.Grain4,Coal3,ironore,trip charter3;

* Forwardfreightagreement (FFA)isafinancialforwardcontractthatallowsship owners,charterersandspeculatorstohedgeagainstthevolatilityoffreightrates.It givesthecontractownertherighttobuyandsellthepriceoffreightforfuturedates. FFAsarebuiltonanindexcomposedofashippingroutefortankerorabasketof routesfordrybulk,contractsaretraded ‘overthecounter’ onaprincipal-to- principalbasisandcanbeclearedthroughaclearinghouse.

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4. English for Correspondence

The main parts and layout of a business letter

1.Heading (Letterhead); 2.Date; 3.Inside name and Address; 4.Salutation； 5.Subject Line(Caption); 6.Body of Letter; 7.Complimentary Close; 8.Signature

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Specimen Letters

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Applications M.V. “Dong Feng” London 3 September, 2010 Messers. J. Smith Agency London England

Dear Sirs， Re：Bunkering We are pleased to inform you that we would like to replenish bunkers in this port. Please arrange for an oil company to supply our ship with the following fuel oil and lube oil: -200 tons of heavy, viscosity 1500 sec., Redwood No.1; -50 tons of diesel oil; Please can you also send an oil lighter for us ASAP？The empty drums will be return after bunkering and all the expenses incurred will be for the ship owner's account. Your kind cooperation will be highly appreciated.

Yours Faithfully ***** Chief Engineer of M.V. “Dong Feng”

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Letter of Indemnity （Guarantee）

DearSir: InconsiderationofyoursigningacleanBillofLadingfortheundermentionedcargo:2000 tonesofriceinthebagsshippedbyM.V. “KIUKIANG” fromBombaytoAbadaninsuchacondition asnotedontheMate’sReceiptatthetimeofshipmentthatsomebagsofricewereslightlywater- stained,weand/orourprincipalsherebyguaranteetoholdyouperfectlyfreefromanyconsequence thatmayarisefromyouomissionofremarksintheBillofLading.

Yours Faithfully Chen yang

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Telex release (Original B/L surrender) WeherewithsurrenderthefullsetofOB/Lforthiscargowithfirmguaranteethatthe endorsement(s)ontheB/Lisallcontinuouslyvalidandyouarekindlyrequestedtorelease thiscargotoa/mcnee.Allrisks,lossesandliabilitiesinconnectionwiththereleasingor arisingthereafterwillbebornebyus.Anydisputearisingouttomaritimearbitrationin accordancewiththeexistingarbitrationrulesofthecommission.Thearbitrationawardshall befinalandbindingupontheparties.

u ChinaReinsuranceLOGForm(FreeTranslation)

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Counter-Security or Counter-Guarantee

[Insert date] China Reinsurance Company

Dear Sirs,

Re:

We hereby request and authorize you to give, on our account, bail in the wording agreed to the extent of [insert amount of L/G] to avoid the arrest or secure the release of the above named ship.

In consideration of your so doing, we hereby undertake to indemnify you and hold you harmless and free from any loss or damage, direct or indirect, which may result from you having to make a payment under the guarantee issued on our behalf in accordance with either a court order or the terms of the guarantee. We further agree to bear all expenses you may incur incidental to the operation. However, our liability under this letter of undertaking shall not in any circumstances exceed the sum of [insert amount of C/S].

We further confirm that a bail fee representing 1 per cent of the security amount will be paid to China Reinsurance Company, on issuance of the above letter of guarantee.

Yours faithfully

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Counter-Security or Counter-Guarantee

[Insert date] China Reinsurance Company

Dear Sirs,

Re:

We, [insert name of counter guarantor], hereby agree and confirm that we hold you fully indemnified for any liability and sums including interests and other expenses which you may incur by reason of the above Letter of Guarantee having been issued by you on our behalf.

We also confirm that we will reimburse you within xxx days following receipt of a copy of enforceable Judgment or legal document from the court for payment under the above Letter of Guarantee.

We further confirm that a bail fee representing 1 percent of the security amount and your costs and expenses incurred in this case will be paid to China Reinsurance Company, on issuance of the above Letter of Guarantee.

Yours faithfully

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23 International Shipping English：Case Study (One) -----by Chen Yang

Case Study： MV PAGANE LOADING STEEL COILS FM ZHANJIAGANG TO RAVENNA ----by Chen Yang

案情简介：

H.T.

International Shipping English：Case Study (One) -----by Chen Yang

From: Gabriela Hazarossian Sent: Thursday, February 23, 2006 8:33 AM To: ‘[email protected]' Cc: '[email protected]' Subject: M.V. Pagane loading steel coils fm Zhanjiagang to Ravenna importance: high Attn: Mrs. Francesca Giacomelli Attn: HT. Insurance Agency & Consultant Services ltd.

Ref: M.V. Pagane --for Loading 31,000 mts steel hr coils with 17-25 mt uw in cargo holds n 2,4,6 ex Zhanjiagang to Italy / P&I club American club

Dear Sirs, Our company Bulcom ltd. is a manager of M.V. Pagane having American club as her P&I Club. Our vessel is fixed to load abt 31,000 mt steel hr coils with 17-25 mt uw from Zhanjiagang to Italy. In view of vessel's next employment and as per requirement of the club please advise your best rates to carry out following surveys: 1. Pre-loading cargo survey, which to include also survey during loading and tally; 2. Condition of stowage, lashing, securing in ship's holds and assistance to the master to insert proposed remarks into mates receipt and B/L. We shall appreciate your urgent reply if possible today! Best regards.

Gabriela Hazarosian Bulcom ltd.

International Shipping English：Case Study (One) -----by Chen Yang

From: Francesca Giacomelli To: [email protected] Subject: Fw: MV PAGANE LOADING STEEL COILS FM ZHANJIAGANG TO RAVENNA Date: 2006-2-27 16:15:10

I am writing on behalf of Ship-owners Claims Bureau, Inc., the New York based managers of the American Steamship Owners Mutual Protection and Indemnity Association, Inc. which has the entry of "PAGANE" on behalf of her Owners. I am authorized by the Association's managers to investigate potential claims on behalf of the Association and its member. You might have received a copy of the below message from the member and I would be grateful if you could revert to their query as a matter of urgency. Particularly, could let the member have the best quote to carry out a preloading condition survey on a cargo of steel Hot rolled coils to be loaded at Zhanjiagang, China. I look forward to hearing further from you and thank you for the anticipated assistance. Best regards.

Francesca Giacomelli On behalf of Shipowners Claims Bureau, Inc. Managers of the American Steamship Owners Mutual P&I Association

International Shipping English：Case Study (One) -----by Chen Yang

HT 公司的 CD 先生在接到客户的服务要求以后，向 R 公司进行

了装船检验的询价，并得到对方的回复如下：

International Shipping English：Case Study (One) -----by Chen Yang

From: Lacho Vladov To: HT. Shanghai Subject: M.V. Pagane loading steel coils fm Zhanjiagang to Ravenna date: 2006-3-1

To: HT. Insurance Agency & Consultant Service Attn Mr. C.D. Cc: Ms. Francesca Giacomelli Fm: Bulcom ltd.

Ref: M.V. Pagane, loading steel coils from Zhangjiagang Pre-loading cargo survey Further to previous exchange pls note owners confirm the quotation, excluding tally supervision. Pls instruct the surveyor to proceed to carry out pre-loading cargo survey accly. Pls note full style of vsl’s agents at Zhangjiagang: Zhangjiagang Tongsheng international shipping agency co.ltd. Phone : 86 512 5893 0500/01/02/03/05/07 FAX : 86 512 5893 0511 TLX : 05194076367 TSSA G E-MAIL : [email protected] PIC : MR. MU + MR. JAMES (MOBILE : 135 06221176) Pls advise name of attending surveyor so we can inform agents to provide assistance. Thanks + Best Regards.

BULCOM LTD.

………………………………………………………………………………………………………

1. HT 公司的 CD 先生向 R 公司的 Roy Zhan 询问关于检验人员的具

体信息；

2. HT 公司的 CD 先生将得到的询问信息转达给了客户；

3. 检验人员的相关信息：姓名：刘永好；电话：+86 13816125938

International Shipping English：Case Study (One) -----by Chen Yang

From: Lacho Vladov To: HT. Shanghai Subject: M.V. Pagane loading steel coils fm Zhangjiagang to Ravenna Date: 2006-3-8 16:02:09

To: HT. Insurance Agency & Consultant Service Attn Mr. C.D. CC: Ms. Francesca Giacomelli Fm: Bulcom Ltd. Ref: M.V. Pagane, loading steel coils from Zhangjiagang pre-loading cargo survey

Further to previous exchange, pls note master's updated eta information asf:

ETA Zhangjiagang CJK anchorage-08.03.06/2330 lt Vsl will be ready in all respects to load 31000t steel coils in 3 holds

Pls infm all parties concerned. Pls inform the attending surveyor accly. Thanks + Best Regards

Bulcom ltd.

International Shipping English：Case Study (One) -----by Chen Yang

通过联系当地的代理以后 CD 先生得知如下信息：

1. 船舶预计到港时间（长江口锚地）为 2006 年 3 月 8 日 23：30 ；

2. 船舶计划靠泊张家口海力码头一号泊位，预计时间为 2006 年 3 月

9 日 19：00；

……......

由于大雾限制，船期有所延误，目前更新的信息为船舶从锚地驶往泊

位的时间为 2006 年 3 月 13 日 10：00 或 11：00,；另一方面，由于泊

位仍在使用中，船舶的靠泊时间尚不能确定。

……......

附件：装船检验报告

Case Study MV PAGANE LOADING STEEL COILS FM ZHANJIAGANG TO RAVENNA ----by Chen Yang

Subject : MV “PAGANE” – Preloading Survey on HRC in Zhangjiagang No. of pages including this page: Three ( 3 ) If you have not received all the pages, please call us immediately

Further to last fax dated on 15th Mar. 2006, we are pleased to advise the development of our preloading survey onboard as follows:

CARGO CONDITION INSPECTION: Cargo condition survey was carried out continuously since loading was commenced at 1800 on 14th Mar. 2006. Our surveyor did stay onboard round the clock and perform cargo condition survey at shipside and in holds once cargo was lifted inside. Besides some normal defects mentioned in last fax, we also found that several coils each with their surface wet or oil spotted and part of coils each with inner/outer column cover buckled partly; meanwhile, due to steel coils were hoisted with C-hook by shore crane and the C-hook contacted the inner rim without any rim/corner protector, which resulted in part of coils with inner rim buckled/damaged partly/slightly. The defects of cargo had been loaded were summarized as follows:

Defects of cargo noted between 14th & 16th Mar. 2006:

1) Partly rust stained and scratched on the surface 2) Partly rust stained on the surface of strapping bands 3) Part of coils slightly telescoped 4) Several coils each partly wet and oil spotted 5) Part of coils each with inner/outer column cover buckled partly 6) Part of coils each with rim edges buckled/damaged

Page 1 of 3

7) Part of coils each with 1-2 strapping bands broken/missing

For further defects prior to loading, we will report in due time.

LETTER OF PROTEST: As the cargo had defects in various extents, Master of MV “PAGANE” prepared the Letter of Protest in the afternoon of 15th Mar. 2006, which was shown as follows:

Letter of Protest

To: Zhangjiagang Tongsheng Int'l Shipping Agency Co.,Ltd Nepa Shipping Agency (Hongkong) Ltd. Medasia Shipping Shipper Receiver Stevedoring Company To whom It May Concern

Dear sirs: This is to inform you that during the loading of steel coils in hold No.2. 4 & 6 of my vessel for discharging port Ravena. Big quantity of the coils have damages.

In view of the above, i shall input next remarks in Mate Receipts 1. Surface rust on part of steel coils and steel bands 2. Part of coils have torn bands 3. Part of coils loaded with wet spots 4. Part of coils have oil spots on surface 5. Part of coils have deformation on surface plated 6. Part of coils have deformation and torn on edges (rim) 7. Some coils have telescopisity

Please note, we made photo of above damages. Kindly acknowledge receipt of this letter.

Yours Faithfully Master of MV “PAGANE”

LOADING OPERATION: 15th ~ 16th Mar. 2006 According to the pre-stowage plan had been approved by Master, quantity of coils would be loaded in hold No.2 & 4 were 531 & 517 coils respectively, after our careful calculation

Page 2 of 3

together with Master we decided that 7 rows were stowed consists of three tier high while the other row consists of 2 tiers high.

Considering great trim would be created if loading of coils were arranged in hold No.2 & 4 until completion of loading in these 2 holds, we suggested loading sequence of holds should be as follows:

Loading sequence in holds

1st stage Hold No.2 & 4 until half quantity of coils were loaded in each hold 2nd stage Hold No.4 & 6 until full loading in hold No.4 & half loading in hold No.6 3rd stage Hold No.2 & 6 until completion of loading in each hold

Master approved our recommendation and Chief Foreman was informed to follow this loading sequence later. By the time of midnight, gangs shifted and 2 gangs came onboard to resume loading of steel coils, one gang was arranged to resume in hold No.4 while the other one was arranged to commence loading in hold No.6.

During our inspection of lashing and chocking, unsatisfactory dunnage against side hopper was noted, only 3 pcs of wooden planks were placed against the hopper plate, meanwhile they were not placed symmetrically, we immediately pointed out this situation to the stevedore and monitored them to rectify it in order, finally 4 pcs of wooden planks were placed against the side hopper plate symmetrically which was in satisfactory condition.

By the time of 0800 hours on 16th Mar. 2006, cargo had been loaded onboard as follows: Hold No. Description Quantity Package Weight No.2 H.R.C 334 Pkgs 6,936 MT No.4 H.R.C 348 Pkgs 7,432 MT 66 Pkgs 1,355 MT Total 748 Pkgs 15,723 MT

Loading at the berth No.1 of Haili Terminal would be completed at PM of 17th or AM of 18th March 2006, we would report to you the development of the case in due time.

Kind Regards

Liu Yonghao Baltic Exchange Daily Fixture/Index List 24/11/2010

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PERIOD

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'New Horizon' 1992 / -

GRAIN

'TBN' 25000/05 sbm Up River/Algeria end Nov $39.50 fio 8000 sx/4000 fx - Noble

1. Circulation

PLS PPS SUITABLE BIZ? (TCT/VC/ TC )

MV Great Bless - OPEN Cape Passero O/A 17/DEC/2010 IAGW/WP

MV Great Bless (ALL DETAILS/FIGURES ABOUT ) -

OWNERS: SMU

2. Cargo Offer

WE HEREBY OFFER YOU TWO LOTS OF CARGO AS FOLLOWS:

1. CARGO: 60000MT Bauxite IN Bulk 5PCT MOLCO LOADING PORT:1SBP in Turkey DISCHARG PORT:1SBP Xingang China LOADING RATE: 6000 MT PWWD SHEX EIU DISCHARG RATE: 7000 MT PWWD SHEX EIU LAYCAN: 15th -25th Dec 2011 FREIGHT: FIOST BSS1/1. FREIGHT PAYMENT:FULL FREIGHT LESS COMMISION PAY TO OWNERS ACCOUNT WITHIN 5 BANKING DAYS ACOL AND S/R BS/L AND ALWAYS B.B.B DEM/DES MONEY:INVITE BY OWNERS ,DHD WTS DEM/DESPATCH MONEY TO BE SETTLED WITHIN 15 DAYS AFATER COMPLETE OF DISCHARG L/S/D TO BE FOR OWNERS ACCOUNT SUB GENCON C/P 1994. COMMISION:TTL 2.75PCT

2. CARGO: 65000MT Grain IN Bulk 5PCT MOLCO LOADING PORT:1SBP New Orleans DISCHARG PORT:1SBP North Conti main port LOADING RATE: 5000 MT PWWD SHEX EIU DISCHARG RATE: 5000 MT PWWD SHEX EIU LAYCAN: 1ST -10TH Jan 2011 FREIGHT: FIOST BSS1/1. FREIGHT PAYMENT:FULL FREIGHT LESS COMMISION PAY TO OWNERS ACCOUNT WITHIN 5 BANKING DAYS ACOL AND S/R BS/L AND ALWAYS B.B.B DEM/DES MONEY:INVITE BY OWNERS ,DHD WTS DEM/DESPATCH MONEY TO BE SETTLED WITHIN 15 DAYS AFATER COMPLETE OF DISCHARG L/S/D TO BE FOR OWNERS ACCOUNT SUB GENCON C/P 1994. COMMISION:TTL 2.5PCT

Fixture Note **************** Oct 22 , 2010

It is this day mutually agreed between M/S “Coscol（Hk） Investment & Development Co.，Ltd.” as the Owners (Hereinafter refered “The Owners”) and M/S “ Saint Marine Holdings Co.,Ltd” hereinafter referred “The Charterers”) on the following terms and conditions :

MV.RICH OCEAN 7 OR SUB PANAMA FLG;BLT 1995;DWT/GRT/NRT:8977/7673/2693 LOA/BM/DEPTH/DRAFT:114.0/19.6/13.2/7.4M;G/B CAPA:16606/15288CBM; 2H/2H;HATCH SIZE:20.3X12.6M/33.6X12.6M;TD CRANE 30TX2 (TANDEM 60T);DERRICK 25TX1 NK CLASS A.D.A.

-Cargo: 1069mt/1577cbm steel structure 5% molco, Suject final packing list approved by owner -Carrier’s berth in 1 Safe port of Shanghai, China/Carrier’s berth in 1 Safe port of Makarssa，Indonesia -LYCN:1st to 7th /Nov ,2010 -Freight rate: US$ 34 per RT on filo bss1/1 -Freight prepaid.Full freight (free of banking charge) to be paid to owner’s nominated bank account within 3 banking days after completion of loading; full freight deemed earned discountless and non-returnable on cargo shipped on board whether ship and/or cargo lost or not lost. -L/D rate:CQD/CQD. -Detention charges at the rate of US$7500- PDPR for all time lost at both ends. -Detention charges incurred at port of loading if any, to be settled together with freight payment and which incurred at port of discharge to be settled before cargo delivery. -Shoreside / shipside tally charge to be for Charterer's / Owner's account at both ends. -Any Taxes / Wharfage / Dues on cargo / vessel to be for Charterer's / Owner's account. -Shore crane if any to be charterer’s account and arrangement at loading port. -Lighterage and Lightering if any, to be for Charterer’s account. -Lashing/Dunnage/Seperation if any, to be for Charterer’s account. -Cgo on/under deck loading at Owner's option but always at Charter's risk and responsibility whatsoever and/or howsoever caused. -Cargo fully stackable and over-stowed -Cgo q’ty loaded on board to be determined by cargo measurement survey -Owners agent at both ends. -Combine cargo acceptable. -Arbitration in Hongkong and English Law to be applied. -Commssion:Nil -Others as per GENCON 1994. End

As Charterers : As Owners :

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