Documents and Correspondence in mercantile business

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- Parties concerned with transportation
- Conferences (Hamburg / Hague-Visbee Rules)
- The Charter Party
- The Mate’s Receipt
- The Bill of Lading (B/L or Blading)
- Average and indemnification
- The Sea Protest and Statement of Facts
- Letter of Protest
- Notice of Readiness (NOR)
- Cargo manifest
- Captain’s Declaration

3. PARTIES CONCERNED

the shipper (or consignor)
person or company who supplies or owns the cargo that will be transported
the carrier
the shipowner, usually referred to as “the Owners”
the consignee (“recipient”)
the person or company to whom the cargo will be delivered
the charterer
the person or company who wishes to charter (hire) the vessel
the shipbroker (or agent)
the intermediary between shipper and carrier
Marine Insurance Companies and P&I* Clubs (underwriters) will insure
all parties against losses due to perils and risks (*Protection & Indemnity).

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Conference Rules
Conference Rules have been made up to determine the carrier’s liabilities
during the transportation of cargo, and to protect him against unjust claims.
HAMBURG RULES
“The carrier is liable for cargo damage unless he has taken all reasonable
measures to avoid losses”.
HAGUE / VISBEE RULES
“The carrier will be protected against claims when specific defences have
been applied; in exchange the carrier must exercise due diligence and
shall properly load, handle, carry, keep, care for and discharge the cargo”.
ROTTERDAM RULES (Sept, 2009)
Amended existing rules with emphasis on door-to-door transportation;
enhancement of protection of interests of cargo-owner.

5. THE CHARTER PARTY

A Charter Party is a contract between a shipowner and a charterer who
wishes to charter (“hire”) a vessel or part of a vessel for the carriage of
cargo.
Demise - or bareboat Charter:
charterer charters the vessel without its crew.
Non-demise Charter:
shipowner provides both the vessel and her crew.
Time Charter:
the vessel is chartered for an agreed period of time.
Voyage Charter:
the vessel is chartered for (a) particular voyage(s).

6. MATE’S RECEIPT

Cargo-receipt with all the particulars and amounts of the cargoes that
have been loaded on board the vessel.
“Deadfreight”:
when the amount of cargo received by the vessel does not agree with the
amount stated in the Charter Party.
The master will now make up a “Deadfreight Letter” that will indemnify
the shipowner against claims from the owner of the cargo.
The Bill of Lading will now be claused as “foul”.
A “clean“ Blading: no cargo is damaged or missing.

7. BILL OF LADING (B/L)

A B/L states the full particulars of the cargo that has been delivered to
and received by the vessel.
Contract of transportation between carrier and the party that holds
the B/L.
“Document of Title”:
he who owns the B/L is the owner of the goods it describes.
A B/L is a negotiable document,
which means that it can be sold.

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A Bill of Lading states:
- names of the shipper, consignee, carrying vessel and notifying address
- cargo shipping marks, package numbers, contents, cubic measurement,
gross weight, etc.
- port of loading and port of discharge
- freight, terms of carriage and payment
- number of Bills of Lading
- master’s signature (or his agent’s) and the date.

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Foul (or Claused) Bill of Lading
When there is a “discrepancy” (a difference) between ship and shore figures
(according to the tally notes),
or when cargo has been damaged by the pre-carrier or shoregang,
the Master of the vessel will clause the Bill of Lading as “FOUL”.
LIABILITY
The question is:
“who is to blame (who is liable) for the missing or damaged cargo”.
This can either be the charterer or the shipper, not the shipowner.

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Average
(damage to ship and/or cargo)
Particular Average
Damage or particular loss through accidental cause.
General Average
Deliberately inflicted damage to prevent more damage or loss
(e.g.: - jettison of cargo
- damage by water after extinguishing a fire
- damage after refloating effort
- cost for overdue arrival in discharge port due to “Act of God”
(i.e. natural disaster).

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Indemnification
- tally cargo that is brought on board - if tally notes have different figures:
count again!
- perform a pre-shipment inspection of cargo:
if cargo is not in apparent good order you must clause the Blading
(“FOUL”)
- always convene pre-arrival meetings
- only sign documents when you are authorized;
or better: sign for receipt only - contact the office.
- never sign a Letter of Indemnity (“Back Letter”)
(which is not a legal tool and is regarded as a “conspiracy” between shipper and carrier to
defraud the consignee).
Indemnify yourself from any liability by applying
GOOD SEAMANSHIP!
P&I Video
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12. SEA PROTEST

Legal document, declaring that due to circumstances beyond control the
vessel has suffered losses of cargo or damage to ship and/or cargo.
(It is made up by a Notary Public or the Consul of the country of registration).
Protest must be made up in the event of the following:
- general average (deliberately inflicted damage to prevent more damage)
- wind and / or sea conditions that have caused damage or delay
(“Act of God ”)
- breach of contract by the Charterer, the Consignee or their agents.
A Sea Protest is often preceded by a written Statement of Facts, made up by
the Master, to specify the circumstances that have caused the damage or loss.

13. LETTER OF PROTEST

A Letter of Protest is a written declaration to record complaints concerning
any operational matter performed by a recipient or other party that will
protect the Master from any blame.
It is not a legal document.
A letter of Protest is written in case of:
mishandling of cargo, delivery of wrong fuel,
violation of regulations, berths unclear,
equipment that has become inoperative,
misconduct or negligence by shore gang,
discrepancy between ship and shore figures,
etc.
P&I Video
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- Notice of Readiness (NOR)
- Cargo manifest
- Captain’s Declaration

15. NOTICE OF READINESS - NOR

NOTICE OF READINESS NOR
The master informs the shipper, the consignee and the authorities that the
vessel is ready to load or discharge.
A NOR must contain:
- ports of loading / discharging,
- time of commencement of loading / discharging,
- type of cargo and tonnage.
Some important expressions:
“reporting day”: the day that the NOR must be handed over to
according to the Charter Party.
“detention”: delay in the loading or discharging of the cargo.
“demurrage”: compensation of damages due to detention

16. CARGO MANIFEST

Ship’s document containing all the particulars concerning the cargo
for each separate destination.

17. CAPTAIN’S DECLARATION

Declaration to authorities with the vessel’s particulars during the past voyage.
A Captain’s declaration must contain:
- vessel’s name, call sign and flag
- owner and charterer
- tonnages, dimensions
- times of arrival, embarkation of pilot
- number of tugs used
- draft on arrival
- cargo to be loaded and/or discharged
- number of holds, hatches, decks, derricks, winches
- type of engine and propeller
- service speed
- bunker
- ports of call and destination
- other requested data.

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The
International Maritime Language Programme – IMLP
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The IMLP is an IMO-standard.
P.C. van Kluijven