Selected Issues on Charterparties and Bills of Lading
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Frequently Overlooked Risk Management Issues in Contracts of Affreightment and Sale Contracts
Frequently overlooked risk management issues in contracts of affreightment and sale contracts 2021 AMPLA Queensland Conference Chris Keane MinterEllison 18 June 2021 The focus of today’s presentation - risk associated with two contracts used to facilitate the export of Australian commodities: . the sale contract / offtake agreement / supply agreement (sale contract) . the contract of affreightment / voyage charterparty / bill of lading (sea carriage contract) Specific focus is on risk and risk mitigation options that are frequently overlooked (both at the time of contract formation and also when disputes arise) 2 Risk arising out of seemingly straightforward issues . Duration of the sale contract - overarching issue that impacts on many other considerations; legal and commercial considerations will overlap . Port(s) of loading and port(s) of discharge - relevant considerations include: access to certain berths; special arrangements regarding loading and unloading; port congestion and other factors likely to cause delay; and the desirability of not requiring a CIF buyer to nominate a specific port of unloading (e.g. “one safe port and one safe berth at any main port(s) in China…”) . Selection of vessel - risk will depend on which party to the sale contract is responsible for arranging the vessel; CIF sellers need to guard against the risk of selecting an unsuitable vessel; FOB sellers need to ensure they have a right to reject an unsuitable vessel nominated by the buyer 3 Risk arising out of seemingly straightforward issues . Selection of contractual carrier - needs to be considered as an issue separate from the selection of the vessel; what do you know (and not know) about the carrier?; note the difficulties the contractual carrier caused for both the seller and buyer in relation to the ‘Maryam’ at Port Kembla earlier this year; proper due diligence is critical; consider (among other things) compliance with anti-slavery, anti-bribery and sanctions laws and issues concerning care of seafarers, safety and environment . -
Module Cuzl331 Commercial Law 1: Agency and Sales
MODULE CUZL331 COMMERCIAL LAW 1: AGENCY AND SALES Maureen Banda-Mwanza LLB (UNZA), ACIArb ACKNOWLEDGEMENTS In the formulation of this module, tailored for the exclusive use of Cavendish University, the Author referred to various renown Commercial law books, quotations of which shall be minimized as much as is practicable. The good authors of the renowned works aforementioned are fully acknowledged for the relevance of their various pieces of work in the study of Commercial Law. CONTENTS PAGE TOPIC 1 TOPIC 1 AGENCY AT the end of this unit, students should be able to understand: 1. The requirements in forming an agency contract, formalities and capacity, 2. Authority of an agent 3. The duties of an agent 4. The Agent’s right against the Principal 5. The Principal’s relation with third parties 6. Various types of agency 7. How to terminate an Agency agreement Introduction Agency is one of the essential features of Commercial law. Commercial law is the law governing business contracts, bankruptcy, patents, trade-marks, designs, companies, partnership, export and import of merchandise, affreightment, insurance, banking, mercantile agency and usages. Agency can therefore be defined in the relationship which arises when one person (an agent) acts on behalf of another person (the principal) in a manner that the agent has power to affect the principal’s legal position with regard to a third-party. Common law explains the basic rule of an agency relationship in the Latin maxim “Qui facit per alium, facit per se” the literal English translation of which is he who acts by another acts by himself. -
Volume Contracts of Affreightment – Some Features and Principles
Volume Contracts of Affreightment – Some Features and Principles Lars Gorton 1 Introduction ………………………………………………………………….…. 62 1.1 General Background ……………………………………………………… 62 1.2 Some Contractual Points …………..……………………………………... 62 1.3 Frame Agreements ………………………………………………………... 64 1.4 Some General Points Related to Distributorship Agreements and Volume Contracts ………………………………………. 66 1.5 Some Further Overriding Points ……………………………………….…. 67 2 Contract Forms ………………………………………………………………… 68 3 Law, Contract and Terminology ……………………………………………… 69 4 The SMC Rules on Volume Contracts ……………………………………..…. 70 5 Characteristics of COA’s ……………………………………………………… 71 6 The Generic Nature of the COA ………………………………………………. 72 7 Some of the Parameters of the COA ………………………...……………….. 76 7.1 The Ships Involved Under the Volume Contract ………………………… 76 7.2 Time Elements in Connection with COA’s ………………………………. 76 7.3 Cargo and Cargo Quantity and Planning of Voyages ………………….… 77 8 Breach and Consequences of Breach …………………………………………. 78 8.1 Generally, Best Efforts and Cooperation …………………………………. 78 8.2 Consequences of the Owners’s Breach …………………………………... 78 8.3 Consequences of the Charterer’s Breach …………………………………. 78 9 Some Comparisons with Distributorship Agreements in English Law ….…. 78 10 Some COA Cases Involving “Evenly spread” ……………………………….. 82 10.1 “Evenly spread” …………………………………………………………... 82 10.2 Mitigation of Damages …………………………………………………… 85 11 Freight, Demurrage and Similar ……………………………………………… 88 11.1 General Points ………..…………………………………………………... 88 11.2 Freight Level …………………………………………………………….. -
Table of Clauses
Table of Clauses Preamble VESSEL Clause 1. Vessel LAYDAYS DATE / CANCELLING DATE, etc. Clause 2. Laydays Date etc. Clause 3. Cancelling Date LOADING Clause 4. Advance Notices Clause 5. Notice of Readiness to Load and Counting of Laytime Clause 6. Cleanliness of Vessel Clause 7. Utilization of Holds and Hatches Clause 8. Loading Methods and Costs Clause 9. Rate of Loading Clause 10. Risk, Liability and Expense of Loading and Trimming DISCHARGING Clause 11. Advance Notices Clause 12. Notice of Readiness to Discharge and Counting of Laytime Clause 13. Rate of Discharging Clause 14. Discharging Methods and Costs Clause 15. Cleaning after Discharging LOADING and DISCHARGING Clause 16. Demurrage and Despatch Money Clause 17. Warping Clause 18. Vacating Berth Clause 19. Draft Survey Clause 20. Opening and Closing of Hatches Clause 21. Ballasting, etc. Clause 22. Handling of Equipment on Board Clause 23. Stevedore Damage Clause 24. Owners’ Liability for Damage GENERAL Clause 25. Freight Payment Clause 26. Dues, Taxes and Charges Clause 27. Bill of Lading Clause 28. Lien Clause 29. Liberty Clause 30. Oil Pollution Charter Party Clause (Non Tankers) Clause 31. BIMCO AMS Clause for Voyage Charter Parties Clause 32. Protective Clauses (a) BIMCO General Clause Paramount (b) Both-to-Blame Collision Clause (c) General Average and New Jason Clause (d) War Risks (VOYWAR 2004) Clause 33. Force Majeure Clause 34. BIMCO Strike Clause Clause 35. BIMCO General Ice Clause for Voyage Charter Parties Clause 36. Agency Clause 37. BIMCO ISPS/MTSA Clause for Voyage Charter Parties 2005 Clause 38. Brokerage Clause 39. BIMCO Dispute Resolution Clause Clause 40. -
Download the Shipping Network June 2014
Legal Eagles Do you have a burning legal question for the HFW Shipping Legal Network team? Email [email protected] for them to answer your question in the next issue of the Shipping Network . Questions should be of a general nature and not specific to a Eagles... particular live issue. Holman Fenwick Willan’s crack team of specialist shipping lawyers answer your legal questions Under a combined transport bill of lading, “Freight: shall be the freight and all charges, costs, duties where the shipping line is responsible for and expenses whatsoever, payable to the carrier, or incurred by Q delivery to the named destination, should the carrier in carriage of the goods in accordance with the the shipper or any party named as consignee applicable tariff and this bill of lading, including storage, per diem or notify party be responsible for any charges and demurrage.” Guy Main if the container is delivered within the A freight definition of this type arguably includes any charges demurrage-free period shown in the bill of incurred by the carrier as a result of the contract of carriage. There lading, but where the UK port of discharge only allows the may be an argument that ‘expected’ charges are not included shipping line a shorter period free for quay rent? as they should have been provided for in the original quotation, but charges that arise out of a delay to the carriage or otherwise Ascertaining the rights of various parties arise from an event outside of the normal carriage of goods will under a bill of lading is a question of almost certainly be included. -
PERFORMANCE and CANCELLATION of CHARTERPARTIES SUSPENSION / WITHDRAWAL / TERMINATION Notices, Damages and Potential Pitfalls
PERFORMANCE AND CANCELLATION OF CHARTERPARTIES SUSPENSION / WITHDRAWAL / TERMINATION Notices, damages and potential pitfalls A. INTRODUCTION The minds of owners and charterers alike are presently focused (as they should) on the Covid19 outbreak and how they can either utilise existing clauses or put together new clauses dealing with Covid19 in an attempt to refuse to perform or get out of a charter or prevent their contractual counterparty from doing so. Penningtons Manches Cooper has already issued a number of articles and circulars (as well as a contractual tool kit) in respect of the effect of Covid19, the business interruption aspects of it as well as the way forward. But what happens in circumstances where an existing contract is no longer desirable (or indeed financially viable) and one of the contractual counterparties wishes to no longer be bound it, either because of, for example, the state of the market or because the other party are not performing their end of the deal, whether as a result of Covid19 or otherwise? A number of other considerations will of course be relevant (amongst others, the parties’ commercial relationships, the state of the market, the ability to enforce against the non-performing party) but the purpose of this article is to act as a reminder of the various options available to an owner and charterer in the context of refusing to perform or getting out of a charterparty. The above will be considered against a background of seeking to resolve disputes before they even arise, with a view to limiting (to the extent feasible) the costs and delays incurred where the parties engage in arbitration/ litigation proceedings. -
Memorandum for Claimant
THE NINETEENTH ANNUAL INTERNATIONAL MARITIME LAW ARBITRATION MOOT UNIVERSITAS PADJADJARAN TEAM 23 MEMORANDUM FOR CLAIMANT ON BEHALF OF AGAINST CERULEAN BEANS AND DYNAMIC SHIPPING LLC AROMAS LTD AND THE SHIP ‘MADAM DRAGONFLY’ CLAIMANT RESPONDENT COUNSEL M IRFAN DIMASYQI YOGI BRATAJAYA PUTRI PARIMARMA ANANTA TAQWA ESTHER CHRISTIE E M TEAM 23 MEMORANDUM FOR CLAIMANT TABLE OF CONTENTS LIST OF ABBREVIATIONS .................................................................................................................... iii LIST OF AUTHORITIES ......................................................................................................................... iv STATEMENT OF FACTS .......................................................................................................................... 1 I. THE TRIBUNAL HAS JURISDICTION TO HEAR THE DISPUTE ............................................ 2 A. Clause 27(d) is not applicable ............................................................................................................. 3 B. Alternatively, clause 27(d) shall be set aside ...................................................................................... 4 i. Master Mariner lacks experience in settling the disputed technical matters ..................................... 5 ii. Clause 27 lacks procedural rules for expert determination ............................................................... 5 iii. Resolution of dispute before an expert is a duplication of effort ..................................................... -
Marine Charter Default Insurance
Marine Practice CHARTER DEFAULT INSURANCE In response to shipowners’ increasing concerns about charterers’ solvency, Marsh has developed an industry-first product that protects owners from damaging financial losses. Backed by both insurers and a leading financial institution, Marsh’s Charter Default product provides a mix of fixed recovery guarantee and credit insurance, tailored to the shipowner’s particular requirements. Covering both outstanding debt at the time of an insolvency and the loss of future revenue for a set period, the product de-risks important revenue streams, thereby assisting owners to attract better terms fr om lenders by reducing counterparty credit risk. i • Charter Default Insurance PRODUCT OVERVIEW PROTECTING REVENUE AGAINST THE RISK OF FINANCIAL DEFAULT f Financial default is a recurring problem. Recent high profile cases of shipping companies filing for bankruptcy have again highlighted counterparty risk in the shipping sector f Companies with ships on charter are exposed to loss of revenue if their charterer folds or, at best, to enforced renegotiation of charter hire terms f The risk of default increases at times of global financial uncertainty f Fixed Recovery Guarantees and Credit Insurance protect against the risk of charterer default f For a listed company, de-risking the revenue stream can improve stock prospects f De-risking the revenue stream can also attract better terms from lenders Marsh • 1 CREDIT INSURANCE FIXED RECOVERY GUARANTEE Key FeaTuRes • an insurance policy designed to compensate an owner -
Case 1:06-Cv-03346-JFM Document 222 Filed 11/30/09 Page 1 of 22
Case 1:06-cv-03346-JFM Document 222 Filed 11/30/09 Page 1 of 22 IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND TRITON MARINE FUELS, LTD. * * v. * Case No.: JFM-06-CV-3346 * M/V PACIFIC CHUKOTKA * * **** OPINION Triton Marine Fuels Ltd., S.A. (―Triton‖) has moved—in response to Triton Marine Fuels Ltd. v. M/V Pacific Chukotka, 575 F.3d 409 (4th Cir. 2009) (―Triton II‖)—for summary judgment and monetary judgment pursuant to Federal Rules of Civil Procedure 54 and 58. This motion is granted in part and denied in part. Triton is awarded a monetary judgment of $260,400, plus pre-judgment interest at a rate of 2.34 percent. Triton‘s request for attorneys‘ fees is denied. FACTS AND PROCEDURAL HISTORY In late 2006, Triton, a Panamanian corporation, brought an in rem action against the M/V Pacific Chukotka (―the Vessel‖), a vessel registered in Malta and owned by Green Pacific A/S (―Green Pacific‖). Triton Marine Fuels Ltd. v. M/V Pacific Chukotka, 504 F. Supp. 2d 68, 69 (D. Md. 2007) (―Triton I‖), overruled by Triton II, 575 F.3d. Triton alleged it possessed a maritime lien over the Vessel after it supplied the Vessel with fuel and was never paid. Id. The material facts of this case are not in dispute. Triton II, 575 F.3d at 411. Emerald Reefer Lines, Ltd. (―ERL‖) sub-chartered the Vessel from Intertransport Company LLC (―Intertransport‖), a Russian company which had chartered the Vessel from Green Pacific. Triton I, 504 F. -
Documents of the Shipping Transport: Historical Origins, Legal Validity & Commercial Practice
Journal of Shipping and Ocean Engineering 10 (2020) 47-56 Doi: 10.17265/2159-5879/2020.02.005 D DAVID PUBLISHING Documents of the Shipping Transport: Historical Origins, Legal Validity & Commercial Practice Ioannis Voudouris, and Evi Plomaritou Frederick University, Cyprus Abstract: The bill of lading and charterparty are vital for international trade and transport. To signify their enduring importance, this paper firstly seeks to illuminate the earliest historical evidence relating to the bill of lading and charterparty, and secondly, discuss their current legal and commercial nature and functions as well as their relationship with other transport documents such as the booking note, cargo manifest, mate’s receipt, and delivery order. In this context, the paper examines the lifecycle of transport as regards the documents used in the bulk and liner markets. Key words: Bill of lading, charterparty, sea waybill, booking note, delivery order, Mate’s receipt, Cargo manifest. 1. Introduction upon their shipment on board the ship (shipped bill of lading). The most important documents governing the commercial and legal relationships between the parties 2. Historical Origins of the Bill of Lading, in international sea transport are the bill of lading and Charterparty, Sea Waybill and Other the charterparty. Among other things, these Transport Documents documents define the obligations as well as the The (non-negotiable) sea waybill and the respective costs and earnings of the contracting parties, (negotiable) bill of lading are nowadays the primarily the shipowner or carrier and the charterer or best-known ocean transport documents that are still in shipper. In addition, other documents, such as booking use. -
Preliminary Study on Cloud Bill of Lading Issue
World Maritime University The Maritime Commons: Digital Repository of the World Maritime University World Maritime University Dissertations Dissertations 8-22-2020 Preliminary study on cloud bill of lading issue Yanchi Chen Follow this and additional works at: https://commons.wmu.se/all_dissertations Part of the International Trade Law Commons, Technology and Innovation Commons, and the Transportation Commons Recommended Citation Chen, Yanchi, "Preliminary study on cloud bill of lading issue" (2020). World Maritime University Dissertations. 1459. https://commons.wmu.se/all_dissertations/1459 This Dissertation is brought to you courtesy of Maritime Commons. Open Access items may be downloaded for non-commercial, fair use academic purposes. No items may be hosted on another server or web site without express written permission from the World Maritime University. For more information, please contact [email protected]. SHANGHAI MARITIME UNIVERSITY WORLD MARITIME UNIVERSITY Shanghai, China PRELIMINARY STUDY ON CLOUD BILL OF LADING ISSUE By Chen Yanchi China A research paper submitted to the World Maritime University in partial Fulfillment of the requirements for the award of the degree of MASTER OF SCIENCE INTERNATIONAL TRANSPORT AND LOGISTICS 2020 Copyright Chen Yanchi, 2020 WORLD MARITIME UNIVERSITY RESEARCH PAPER FOR INTERNATIOANL TRANSPORT AND LOGISTICS DECLARATION I certify that all the material in this research paper that is not my own work has been identified and that no material is included for which a degree has previously been conferred on me. The contents of this research paper reflect my own personal views and are not necessarily endorsed by the University. (Signature):…Chen Yanchi… (Date): …2020.6.28…… Supervised by Professor Wang Xuefeng Shanghai Maritime University ii WORLD MARITIME UNIVERSITY RESEARCH PAPER FOR INTERNATIOANL TRANSPORT AND LOGISTICS ACKNOWLEDGEMENT I would like to express my gratitude to all those who helped me during the writing of this thesis. -
Sea Venture • Issue 25 Features
Sea Venture Issue 25 In this issue 06 OW Bunkers – A Global Perspective 17 Tianjin – Shipping Issues 49 Iran Sanctions: Is the End in Sight? 53 SK Shipping Naming Ceremony 54 War Risk and K&R Cover Introduction 04 Contents Rock and a Hard Place Features 04 Rock and a Hard Place 06 OW Bunkers – A Global Perspective Malcolm Shelmerdine 08 Voyage Charters – Damages for Delay and Director Positional Loss [email protected] 10 RMS “Titanic” Rest in Peace or Wrest a Piece Welcome to the 25th issue of Sea Venture. 13 Liability for Freight and Demurrage under a Bill of Lading This is the time of year that the P&I industry attracts most publicity and 15 Financial Consequences of Failure to Collect Cargo attention as preparations for 20 February renewal gather pace. The Club experienced a remarkably good period in the last financial year when 17 Tianjin – Shipping Issues Editorial Team underwriting and financial results exceeded expectations. Furthermore, 08 19 Change in California Shipping Lanes to reduce the Board recently agreed that no general increase in premiums for either Whale Strikes Piers Barclay, Paul Brewer, P&I or FD&D is required for 2016/17. This is the second year in succession Voyage Charters 21 Tanker Troubles in Nigeria Patrick Britton, Heloise Clifford, that a general increase has not been sought, good news for the Members - Damages for Beth Larkman, Sarah Nowak, and a reflection of the support the Club seeks to provide. However, market 23 The Sea Miror – Risk, Responsibility, and Stevedore Carole O’Brien, Malcolm conditions and the risk of an increased incidence of claims – both in terms Delay and Cargo Damage Shelmerdine, Danielle Southey.