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    UNIT 1

    SHIP DOCUMENTS

    Introduction

    The transportation of cargo by sea is a complicated matter.

    Interests of all parties concerned must be matched and considered carefully.

    These interests are best looked after by a proper administration that comprises the use of

    many different documents. Explanations, descriptions and examples of the most important

    documents are given bellow.

    It is but a small part of the total bulk of documents one may come across in the mercantile

    trade.

    The filling out of all these documents may well be considered one of the most important tasks

    on board vessels, because a careful management of both ship- and cargo-handling will always

     be of great benefit for all parties concerned.

    These parties are:

    the shipper (or consignor) the 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 –  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;

    the insurer  –  the insurance company that will insure all parties from losses due to perils and

    risks.

    1.1 

    Charter Party

    1.1.1 Introduction

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    A Charter Party is a contract between a shipowner and a person or company who wished to

    charter (“hire”) a vessel or part of a vessel for the carriage of cargo from one port to another. 

    1.1.2 Chartering a ship –  definitions

     AShipperisanindividualorcompanywithcargototransport.Achartereristheindividualorcompanywhohiresaship.Acharter-partyisthecontractsettingoutthetermsunderwhichtheshippercontractsforthetransportationofhiscargoorthecharterercontractsforthehireofaship.Onavoyagecharter,ashipearnsfreightpertonofcargotransportedontermssetoutinthecharter-partywhichspecifiestheprecisenatureandvolumeofthecargo,thepart(s)ofloadinganddischargeandthelaytimeanddemurrage.Allcostsarepaidbytheshipowner. AconsecutivevoyagecharteriswherethevesselishiredtoperformaseriesofconsecutivevoyagesbetweenAandB.AcontractofAffreightment(COA)issignedwhenashipownerundertakestocarryquantitiesofaspecificcargoonaparticularrouteorroutesoveragivenperiodoftimeusingshipsofhischoicewithspecificrestrictions.Theterm‘Periodcharter’isusedwhenthevesselishiredforaspecifiedperiodoftimeforpaymentofadaily,monthlyorannualfee.Therearethreetypesofperiodcharter,timecharter,tripcharterandconsecutive

    voyage charter.A time charter iswherea ship earns hiremonthly or semi-monthly. Theshipownerretainspossessionandmansandoperatestheshipunderinstructionsfromthechartererwhopaysthevoyagecosts.Atripcharterisfixedonatimecharterbasisfortheperiodofaspecificvoyageandforthecarriageofaspecificcargo.Theshipownerearns'hire'perdayfortheperioddeterminedbythevoyage.Withabareboatchartertheowneroftheshipcontracts(forafee,usuallylong-term)toanotherpartyforitsoperation.Theshipisthenoperatedbythesecondpartyasifheownedit.

     

    1.1.3 Types of CP

    These are basically two types of Charter Parties: demise and non-demise.

    We speak of a demise- or bareboat Charter Party when the charterer charters the vessel

    without its crew. The shipowner will provide the vessel –  the charterer will provide the crew.

    Consequently, the charterer will take full responsibility for the operation of the vessel and

    will pay all expenses incurred.

    A non-demise Charter is used when the shipowner provides both the vessel and its crew.

    A time Charter is used when the vessel is chartered for an agreed period of time, which may

    extend from a few weeks to several years. A demise Charter Party is always a time Charter.

    A voyage charter is a contract in which it is agreed that the vessel will be chartered for a particular voyage. The majority of tramp cargo — shipments are made on a voyage-charter

     basis.

    The most common terms that appear in Charter Parties are:

    “Bareboat Charter”, “Berth Charter”, “Clean Charter”, “Demise Charter”, “Gross Charter”,

    “Lump sum Charter”, “Open Charter”, “Time Charter”, “Voyage Charter”, all  the terms

     beginning with “Free ..……….. ” or “Freight……. ”, and many more. 

    All these terms are explained in the Glossary below.

    1.1.4 Chartering a ship - A telephone conversation

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    BJ:AntwerpiaShipping.BertJanssensspeaking.JM:Goodafternoon.Yourreceptionisttoldmethatyouwerethebestpersontotalkto.I’mcallingfromAustralia.MynameisJackMcCarthyofQueenslandMaritimeServices.Yourcompanywasrecommendedtomebyabusinessassociate.BJ:Well,let’shopewecanliveuptotherecommendation,MrMcCarthy.WhatcanIdoforyou?JM:I’mlookingforavesseltotransportcargo.BJ:You’vecometotherightplace.Wecanarrangefortheshipmentofbulk,liner,reeferorprojectcargo,younameit.Whattypeofcargodidyouhaveinmind?JM:Grain.50,000tonnestobeprecise.BJ:Thatwon’tbeaproblem,butI’llneedtotakemoredetailsfromyouofcourse.Canyouletmehavethepresentlocationofthegrain,andtheportofdestination?JM:Well,I’mlookingtoshipthegrainfromthePortofGladstonetoTallininEstonia.BJ:OK,Gladstone – that’sinQueensland,isn’tit?Yes,I’mfamiliarwithGladstone,althoughwenormallyshipcoalfromthatregion.JM:Thatwouldberight.Gladstone’sthefourthlargestcoalexportportintheworld.Thistimeit’sgrainthough,andmytiming’sprettytight.IhaveacontracttogetthegraintoTallinwithinthemonth.BJ:OK,I’mjusthavingalookatmyscreenhere.Yes,Ithoughtso.WehaveaPanamaxdrybulkcarrierpresentlysailingfromtheGulftodelivergraininJapan.It’sduetoarriveinJapaninthreedaystime.Thatmeansthatitwillbe‘open’infourdaystimeandthenduetoreturnto Antwerp.ItwillbelookingforacargosuchasyourstorepositionintotheNorthAtlanticarea;I’lljusthavetocheckifittiesinwithourservicefromAntwerptoHelsinkiandontoTallin.Itshoulddothough.Thatwouldsuityourrequirements,wouldn’tit?JM: Yes, indeed. Sounds just like what we need. Can you just run over the ship’scharacteristicstocheckthatitfulfilsourrequirements?I’mthinkingaboutitsspeed,cargocapacity,dimensions,handlinggearandsoon.BJ:Certainly.AsIsaid,it’saPanamaxbulkcarrier,69,100dwt.,builtinJapanin1994.I’msureyou’refamiliarwiththevesseltype,butbasicallyithasaframeworkforthecarriageofdrysolidsinbulkwithoutpackaging.Grain,forexample.Ithasacapacityof70,000metrictonnesandsailsatanaveragespeedof14knots;that’saneconomicalspeedI’mtalkingabout.Youcanvisitourwebsiteforfurtherinformationabouttheship’scharacteristics.JM:OK,butcanIjustrunoveracoupleofpointswithyou?I’msureIdon’thavetotellyouthatgrainisafreerunningcargo.It’spronetoshiftinheavyweatherandiftheship’snotuptoitthiscouldthreatenthesafetyoftheshipherself.Heavycargoeslikethesehavetobeloadedanddischarged inacertainsequence,otherwisewe’re talkingabout seriousstress to thestructureoftheship.Whenloadinggrain,carehastobetakenwiththesequenceoffillingthehatchesandthecargodistribution,sothatnounduestressisputonthevesselwhileloadingorlaterwhenmovinginaseaway.Largewavescanbeadeadlyhazard,youknow.BJ:Don’tworryMrMcCarthy.Our charteringstaff isexperienced inmany typesofcargovessels.We’reinthebusinessofprovidingqualityservicetoourcustomers.Youcanbesure

    that our contractual arrangements willmeet your needs.What typeof contractwereyouconsidering,bytheway?I’massumingitwon’tbeabareboatcharter,willit?Avoyagecharterwouldbestsuityourneeds,Ithink. Andifthingsgowell,andyou’reinthebusinessofshippinggrainonaregularbasis,wecouldalwaysmoveontoatimecharterinthefuture,perhaps.JM:Well,indeed,thatmightbesomethingforthefuture,butit’savoyagecharterI’minterestedinatthemoment.BJ:OK,wecanputthattogetherforyou.Whydon’tIworkonsomedetailsforyounow,andsendyouaproposal.I’llincludevoyageestimationsandcalculationsforyou.Withthevoyagecharterwe’llbelookingatpricepertonhere– itwas50,000tonnesofgrain,wasn’tit?JM:That’scorrect.BJ:AndtheshiphastoarriveinTallininMay,doesn’tit?

    JM:Yes.Thegrainhastobethereby28th

    Mayatthelatest.Thatshouldbepossiblewiththe

    Panamaxthough,shouldn’tit?

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    BJ:Absolutely.I’llgetthisproposalofftoyouassoonaspossible,MrMcCarthy,anddon’tworry –  all the contractdetails can benegotiated to ensure that the vessel iscapable ofhandlingthecargoinadamage-freemanner.CanIjusttakeyoure-maildetails?JM:Certainly.It’s [email protected]:McCarthy – that’stwo‘c’s,isn’tit?JM:That’sright.Capital‘m’,small‘c’,capital‘c’.ThanksforyourhelpMrJanssens.Ilookforwardtohearingfromyou.BJ:You’rewelcome.Ifthere’sanythingelseyouneed,justcallme.Goodbyenow.JM: Thanks and goodbye. 

    1.1.5 Example of CP form

    EXAMPLE: how to fill in a VOYAGE CHARTER PARTY

    PART A 

    1.  Preamble:It is hereby agreed between the Owners and the Charterers that the Vessel  –  being in every

    respect fit for the carriage of the cargo –  shall proceed to the loading port indicated below orso near thereunto as she may safely get and lie always afloat, and there load the cargo,

    which the Charterers bind themselves to supply, and carry it with all the possible dispatch to

    the port of discharge indicated below or so near thereunto as she may safely get and lie

    always afloat, and there deliver the cargo. The carriage under this Charter shall be

     performed against payment of freight and in accordance with the terms contained in Parts A

    and B this Charter Party, of which the typewritten provisions of Part A shall prevail over

    those contained in Part B to the extent of any conflict between them.

    2. 

    Ownersrepresented by

    (agent)_________________________________________________________

    3.  Charterersrepresented by (agent)-

     _________________________________________________________

    4. 

    Vessel:a –  name -

     ___________________________________________________________________

     b –  GRT _______ NRT _________DWT (All Told on Summer

    loadline)_______________

    c –  present position:

     __________________________________________________________

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    d –  (class, cubic capacity, equipment etc.)

     _______________________________________

     _________________________________________________________________________ 

     _________________________________________________________________________ 

     _________________________________________________________________________ 

     ______

     _________________________________________________________________________ 

     __

    5.  Cargo: (quantity, packing, special features etc.)A ………………….. (full and complete / part) cargo of

     _____________________________

    of which …………………….. may be carried on deck.

    ……..% more or less at …………………..…… (Owners / Charterers) option to be

    declared

    when/on ……………………………...……. (actual commencement of chartering of

    vessel)

    6. 

    Laydays (number of days allowed for loading) not to commence before 8 a.m. on…………… 

    Cancelling date and time: (when the vessel must be ready for loading) 

    ……………………. 

    7.  Advance Notice of Readiness to load to be sent to (Shipper and Charterer)

     ___________________________________________________________________ 

     __

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    EXAMPLE: how to fill in a VOYAGE CHARTER PARTY (continued)

    PART A

    8.  Loading:a –  port(s): 

     _________________________________________________________________

     b –  time: (quantity per weather working day, total time for loading)

     ________________

    c –  cost: (fixed price / free in stowed / f.a.s.)

     ____________________________________

    d –  dunnage paid by (Owners or Charterers)

     _____________________________________

    e –  stevedores paid by (Owners or Charterers)

     ___________________________________

    f –  vessel’s agent appointed by (Owners or Charterers) ____________________________

    g –  max. loaded draft in …………… (salt / fresh) water not to exceed:

     _________________

    h –  shippers:

     ________________________________________________________________

    9.  Discharging:

    a –  port(s):

     _________________________________________________________________

     b –  time: (quantity per weather working day, total time for discharging)

     _____________

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    c –  cost: (fixed price / free out)

     ________________________________________________

    d –  stevedores paid by (Owners, Charterers or Consignee)

     _________________________

    e –  vessel’s agent appointed by (Owners or Charterers)

     ____________________________

    f –  max. loaded draft in ………………. (salt / fresh) water not to exceed:

     _______________

    g –  Consignee(s):

     ____________________________________________________________

    10. Freight-rate (the costs of transportation of the cargo by the vessel):  ………………… per 40 ft. Container on quantity ………………..… (delivered/taken

    in).

    11. Demurrage (compensation-payment when loading- or discharging time has

    been exceeded): 

    a –  in loading payable by ………………………………….…………. (Charterer /

    Shipper)

     b –  in discharging payable by …………………………………….  (Consignee /

    Charterers)

    Brokerage: …………… % on freight and deadfreight is due to (agent)………………….... 

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

    …. 

    For the owners: For the Charterers:

    ………………………………….. .…………………………….

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    1.2 Bill of Lading (B/L)

    A Bill of Lading is a receipt for cargo brought on board a vessel.

    It states the condition and terms in which the cargo was delivered to and received by the

    vessel.

    It forms the evidence that the carrier (shipowner) has received the goods and has promised to

    transport the cargo to its destination.

    A Bill of Lading (B/L) is a so-called “Document of Title”. 

    This means that 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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    BillofLadingdefinitionsInordertounderstandaBillofLading,itisimportanttobefamiliarwithcertaindefinitions.'Carrier'MeansthepartynamedintheSignatureBoxonthefaceofthisdocument.'Merchant'IncludesanyPersonwhoatanytimehasbeenorbecomestheShipper,Holder,Consignee,

    ReceiveroftheGoods,anyPersonwhoownsorisentitledtothepossessionoftheGoodsorofthisBillofLadingandanyPersonactingonbehalfofanysuchPerson.'Holder'MeansanyPersonforthetimebeinginpossessionof(orentitledtothepossessionof)thisBillofLading.'Person'Includesanindividual,group,companyorotherentity.'Sub-Contractor'Includes(butisnotlimitedto)ownersandoperatorsofanyvessels(otherthantheCarrier),stevedores,terminalandgroupageoperators,road,railandairtransportoperators andanyindependentcontractor employed by theCarrier inperformanceof theCarriageandanysub-sub-contractorsthereof.'Indemnify' Includesdefend, indemnify andholdharmlesswhetherornot theobligation toindemnify arises out of negligent or non-negligent acts or omissions of the Carrier, hisservants,agentsorSub-Contractors.

    'Goods'MeansthewholeoranypartofthecargoreceivedfromtheShipperandincludesthepackingandanyequipmentorContainernotsuppliedbyoronbehalfoftheCarrier.'Container'Includesanycontainer,trailer,transportabletank,flatorpallet,oranysimilararticleusedtoconsolidategoodsandanyancillaryequipment.'Carriage'Meansthewholeoranypartof theoperationsandservicesundertakenbytheCarrierinrespectoftheGoodscoveredbythisBillofLading.'PortofLoading'MeansanyportatwhichtheGoodsareloadedonboardanyVessel(whichmaynotnecessarilybetheVesselnamedelsewhereinthisdocument)forCarriageunderthisBillofLading'PortofDischarge'MeansanyportatwhichtheGoodsaredischargedfromanyVessel(whichmaynotnecessarilybetheVesselnamedelsewhereinthisdocument)afterCarriageunderthisBillofLading.

    'Vessel'MeansanywaterbornecraftusedintheCarriageunderthisBillofLadingwhichmaybeafeedervesseloranoceanvessel.'CombinedTransport'ArisesifthePlaceofReceiptand/orthePlaceofDeliveryareindicatedonthefaceofthisdocumentintherelevantspaces.'PorttoPort'ArisesiftheCarriageisnotCombinedTransport.'ShippedonBoard'RelatesonlytotheContainerintowhichtheGoodsaremanifested.'Freight'IncludesallchargespayabletotheCarrierinaccordancewiththeapplicableTariffandthisBillofLading.'Hague Rules' Means the provisions of the International Convention for the Unification of Certain

    Rules relating to Bills of Lading signed at Brussels on 25th August, 1924 and includes theamendments by the Protocol signed at Brussels on 23rd February, 1968, but only if such amendmentsare compulsorily applicable to this Bill of Lading. (It is expressly provided that nothing in this Bill of

    Lading shall be construed as contractually applying said Rules as amended by said Protocol). 

    A Bill of Lading states:

    - the name of the shipper, consignee and carrying vessel, and the name and address of the

     person to be notified upon arrival of the shipment;

    - description of the cargo (provided that it is not bulk cargo), including any shipping

    marks, package numbers in the consignment, contents, cubic measurement, gross weight

    etc.)

    -port of loading and port of discharge;

    - full details of freight, terms of the contract of carriage and terms of payment

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    (“Freight Prepaid” or “Freight Payable at Destination”, sometimes referred to as

    “Freight Collect”);

    - the date that the cargo was received for shipment and loaded on board the vessel;

    - number of Bills of Lading signed on behalf of the master or his agent;

    - master’s signature (or his agent’s) and the date. 

    There are many types of Bills of Lading. The most common are:

    “Alongside B/L”, “B/L to bearer”, “B/L to order”, “Claused B/L”, “Clean B/L”, “Foul B/L”,

    “Stale B/L”, “Combicon B/L”, “Direct B/L”, “Groupage B/L”, “Straight B/L”, “Received for

    Shipment B/L”, “Shipped B/L”, Through B/L”, “Ocean B/L”, “Inland Waterway (or River -)

    B/L”, and more. 

    All these Bills of Lading are described in the Glossary bellow.

    EXAMPLE: how to fill in a BILL OF LADING to be used with Charter Parties.

    B/L No. 1 of 3 (2 and 3 non-negotiable)

    The cargo described below has been shipped at the Port of

    Loading………………………….. 

    in apparent good order and condition by (Shipper)

    …………………………………………... 

    on board the vessel ………………………………………………… for carriage to the Port

    of

    Discharge ………………..or so near thereto as she may safely get the goods specified

     below.

    Consignee:

    …………………………………………………………………………………….. 

     Notify address:

    ………………………………………………………………………………… 

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    Place of delivery by precarrier:

    ………………………………………………………………... 

    Place of delivery by oncarrier:

    ………………………………………………………………… 

    Forwarding agent:

    ……………………………………………………………………………... 

    EXAMPLE: how to fill in a BILL OF LADING (Continued)

    Terms:

    This Bill of Lading has been issued subject to terms, conditions, benefits and exceptions as

    set out in the Charter Party dated …………………………. Governing this voyage, except

    in

    so far as may be indicated on the reverse of this Bill of Lading.

    SHIPPER’S DESCRIPTION OF CARGO (CARRIER NOT RESPONSIBLE) 

    Marks / number Description of goods, package and particulars

    …………………

    ………………………………………………………………. 

    …………………

    ………………………………………………………………. 

    …………………

    ………………………………………………………………. 

    …………………

    ………………………………………………………………. 

    …………………………………………………………………………………. 

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    …………………

    ………………………………………………………………. 

    GROSS WEIGHT: ……………………………. 

    Freight: …………………………………. (Prepaid / Collect)

    Time used for loading: …………………. days ……………………. hours. 

    In Witness whereof the Master or Agent of the said vessel has signed the number of Bills

    of Lading indicated below.

    Place and date: ……………………………. Signature:

    ……………………………. 

     Number of original Bs/L: ……………………………………… 

    1.3 Captain’s Declaration 

    Upon arrival in a port the captain must present a declaration to the authorities, in which all

    the vessel’s particulars during the past voyage are stated. 

    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 and winches, type of engine and

     propeller, service speed, bunkers on board, last port of call, next port of call or destination,

    and other requested data.

    1.4 Cargo Manifest

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    The Cargo Manifest is a document that contains all the important information concerning the

    cargo that the vessel is carrying to the destination(s).

    As a rule the Manifest is made up by the agent. It contains the name of the vessel, port of

    loading, port of destination, B/L-number, shipper, consignee and cargo-particulars.

    EXAMPLE: THE CARGO MANIFEST

    MV …………………………………………………………. 

    MASTER ……………………………………………………… 

    MANIFEST OF CARGO FROM ………………………… TO ………………………….. 

    B/L No. Shippers Consignee

    and party

    to be

    notified

    Marks &

    numbers

    Description

    of goods

    Weight Remarks

    1.5 Notice of Readiness

    In the “Notice of readiness” (NOR) the master informs the shipper, the consignee (receiver)

    and the authorities that the vessel is ready to load or discharge the cargo.

    It states the ports of loading / discharging, the time of commencement the loading /

    discharging, the type of cargo and its metric tonnage.

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    The “reporting day” is the day that the NOR must be handed over to the charterer accor ding

    to the Charter Party. If the readiness of the vessel is delayed by whatever reason, laydays will

     be counted from the beginning of the next day after the reporting day, unless the Charter

     party states otherwise.

    By “detention” is understood any delay in the loading or discharging of the cargo.

    Compensation of damages that occur due to detention is called “demurrage”. 

    EXAMPLE” how to write a NOTICE OF READINESS 

    Messrs. Shippers, Receivers and Port Authorities.

    M.T. Corrona

    Voy. No. O1390 / N-leg.

    Port: Rotterdam-Waalhaven.

    Date: 29 –  08 –  2002.

    Dear Sirs,

    This is to notify you that the above vessel under my command arrived at the Port of

    Rotterdam at 2300 hrs August 28 and is ready in all respects to load a cargo of 6500 metric

    tons of ACETON and 350 metric tons of METHANOL in accordance with the terms and

    conditions of the Charter Party dated 31 July 2002.

    Please acknowledge the above.

    Yours Truly,

    P.C. Siebers, Master of M.T. Corrona.

     Notice accepted at 1700 hrs on August 29 2002

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    Signature ……………………….. (Shippers / Receivers) Agent…………………………. 

    1.6 Mate’s Receipt 

    After the cargo has been received by the vessel, the first mate will make up a receipt wherein

    all the particulars and amounts of the cargoes that were loaded are stated, including any

    shortages or damaged cargo items. This “Mate’s Receipt” is then transferred to the shipper. 

    When the amount of cargo received by the vessel does not agree with the amount that is

    stated in the Charter Party, we speak of “deadfreight” (which is actually the amount of cargomissing).

    The master will now make up a “Deadfreight Letter” in which the shortage is stated. 

     Now the owners of the cargo will have the right to claim damages.

    The Bill of Lading will then become “foul”, a term that indicates that cargo or part of it is

    damaged or missing. A “clean” Bill of Lading is when no cargo is damaged or missing. 

    EXAMPLE: THE MATE’S RECEIPT 

    SHIPPER:

     _________________________________________________________________

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    CONSIGNEE

     ______________________________________________________________

    ADDRESS TO BE NOTIFIED

     _________________________________________________

    VESSEL

     ___________________________________________________________________

    PORT OF LOADING

     ________________________________________________________

    PORT OF DISCHARGE

     ______________________________________________________

    FREIGHT _________________________  (PREPAID / PAYABLE AT

    DESTINATION)

     Number of original B/L

     _______________________________________________________

    CARGO

    MARKS & NUMBERS DESCRIPTIONS OF GOODS & PACKAGES GROSS

    WEIGHT

     ___________________ ______________________________________

     ______________

     ___________________ ______________________________________

     ______________

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     ___________________ ______________________________________

     ______________

     ___________________ ______________________________________

     ______________

     ___________________ ______________________________________

     ______________

     ___________________ ______________________________________

     ______________

    SPECIFICATION OF FREIGHT AND CHARGES IN € 

    TO:

     _________________________________________________________________________ 

     _____

    MASTER ………………………………………….. 

    EXAMPLE: how to write a DEADFREIGHT LETTER

    From M.T. Corrona.

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    To Molina Shipping.

    Date 19 –  07 –  2002.

    Dear Sirs,

    Please be informed that the vessel under my command has loaded light of deadweight to

    the amount of 510 metric tons of Methanol.

    According to the vessel’s ullages taken upon completion of loading at the COMCO-

    Installation at Swansea the cargo totaled 7,990 metric tons of Methanol.

    However, you inserted a quantity of 8,500 metric tons in the Bill of Lading, which meansthat there is a difference of 510 metric tons.

    We will therefore sign a foul Bill of Lading.

    I herewith submit formal notice, reserving owners’ right to claim deadfreight as they may

    consider necessary as per covering Charter Party.

    Please acknowledge receipt of this letter.

    Yours faithfully,

    H. Wentink, Master of M.T. Corrona.

    1.7 Sea Protest and Letter of Protest

    A Sea Protest, or Note of Protest, is a legal document declaring that due to circumstances

     beyond control the vessel has suffered losses of cargo or damage to ship and/or cargo, or that

    the Master has had to take actions that may render his owners liable to legal procedures by

    other parties. This declaration is presented to all the parties concerned in the event of a claim

    in order to avoid liability for losses of cargo or damage to the ship.

    Protest must be made up in the event of the following:

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    - general average (i.e. indemnity for all parties because deliberate infliction of damage has

    avoided greater damage);

    - wind and/or sea conditions that have caused damage or such a delay that the vessel has not

     been able to make its cancelling date;

    - a breach of contract by the Charterer, the Consignee or their agents (e.g. undue delay,

    failures with loading or discharging, refusal to pay freight or demurrage etc.)

    The protest itself is a more or less standardized form that is made up before a Notary Public

    or the Consul of the country in which the vessel is registered, in witness of the Master and

    crewmembers who have knowledge of the facts. All the relevant information, such as log

    entries and descriptions of circumstances, must be attached to the Protest.

    Therefore a Protest is often preceded by a written Statement of Facts, made up by the

    Master, to specify the circumstances that caused the damage or loss.

    EXAMPLE: how to write a STATEMENT OF FACTS

    I, Peter Christian Siebers, Master of The Good Ship Ocean Empress, call sign PKNN, GT

    8448 tons, properly stowed, manned and equipped, of Dutch Registration, owned by

    Reefer-Liners / Rotterdam –  Netherlands, hereby declare that my vessel, underway from

    Recife to Rotterdam on July 9th, 2003, with a cargo of 2,084 containers, met with adverse

    weather on the said date that caused extreme rolling and pitching of my vessel.

    To protect vessel and cargo from any losses or damage I ordered to reduce speed to “half

    ahead”. Therefore our ETA-Rotterdam was retarded, which has resulted in a delay of 18

    hours.

    I hereby deny all responsibilities for any damage caused by the bad weather situation.

    Signed: P.C. Siebers, Master.

    In the Extending Protest the Master has the right to add more details and information to the

    original Protest at a later stage when more relevant facts have come to light.

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    EXAMPLE: THE SEA PROTEST

    Note of Protest

    On this day, the …… of………... in the year of the Lord two thousand and ……… before

    me, Peter S. van den Berg, Notary Public at the city of Rotterdam –  Netherlands, duly

    admitted and sworn in, personally appeared ……………., Master of MV …………………, 

    GT …………… or thereabouts, registered at ………………….., and belonging to the port

    of

    ………………………………., sailing from …………………… to

    …………………………. 

    on the ………………. day of ………………… in the year two thousand and ...………..

    with

    a cargo of …………………………. and arrived in the Port of

    ………………………………. 

    on the …………. day of ……………. in the year two thousand and

    ………………………… 

    WHO NOTED AND ENTERED into my Register his Protest, to be extended if necessary,

    against rough seas, wind and heavy rain, particularly against damage and loss to the said

    cargo during the sea voyage.

    Signed before me ……………………………………… - P.S. van den Berg

     Notary Public at …………………. hrs on date ……………………………. 

    Master: ………………………………….. (MV

    ……………………………………………...) 

    Agents: Messrs

    ………………………………………………………………………………… 

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    A Letter of Protest is a written declaration that is intended to record complaints concerning

    any operational matter that is performed by a recipient or other party.

    It is not a legal document, but simply a report of operations, contractual agreements etc. that

    have gone wrong. A Letter of Protest will protect the Master from any blame 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 etc., but also

    when there is a discrepancy between ship and shore figures or when passing barges cause

    ranging or wash-damage while the vessel is being loaded and discharged.

    Copies of the Letter of Protest should be sent to other parties concerned and should always

    end in a formal manner.

    Like so:

    “The undersigned hereby declares that the Bill of Lading was signed under protest for reasons

    stated above and holds you and / or Charterers responsible for any delays and consequences”,

    or: “Please consider the above as letter of protest in due and legal form”.  

    EXAMPLE: how to write a LETTER OF PROTEST

    MV Lisa. Voy.: Recife –  Rotterdam

    Lying at: Rotterdam-Botlek. Bert/Terminal: Merwedehaven –  6 A

    Cargo: 8,500 tons refrigerated cargo.

    Date: 15 October –  2002.

    To: Greenwood Services.

    Dear Sir,

    Please be advised that there is a discrepancy between ship- and shore figures covering

    8,500 tons refrigerated cargo.

    During discharging at your terminal this 15 October 2002 of the above mentioned cargo

    our first mate observed the following fact that was detrimental to the quantity / quality of

    the cargo: inadequate stowing and transportation of 300 tons of frozen fish, resulting insevere deterioration of quality due to thawing. In order to protect the interests of our

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     principals, Messr. Pronk-Seafood Rotterdam, we regret having to advise you on their

    request and on their behalf, that they hold you responsible for all costs, expenses and/or

    detrimental consequences which might result from the above.

    For receipt, Greenwood services

    Master: J. Griffioen Services

    Signature: + stamp

    ……………………………. ………………………………………….. 

    Self-assessment Test

    Suply the missing word(s)

    The “reporting day” is the day that the ….. must be handed ….. to thecharterer according to the Charter Party. If the readiness of the vessel is

    delayed by ….. reason, ….. will be counted from the beginning of the next

    day after the reporting day, ….. the Charter party states otherwise.  

    By “detention” is understood any ….. in the loading or discharging of the

    cargo. Compensation of damages that occur due to detention is called

    “demurrage”. 

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    Progress test

    Study the following NOR and draw up a similar one by using the following

    new data: Constanta Port, 9, 000 tons timber, Oct. 1, 2014

    Messrs. Shippers, Receivers and Port Authorities.

    M.T. Corrona

    Voy. No. O1390 / N-leg.

    Port: Rotterdam-Waalhaven.

    Date: 29 –  08 –  2002.

    Dear Sirs,

    This is to notify you that the above vessel under my command arrived at the

    Port of Rotterdam at 2300 hrs August 28 and is ready in all respects to load a

    cargo of 6500 metric tons of ACETON and 350 metric tons of METHANOL

    in accordance with the terms and conditions of the Charter Party dated 31

    July 2002.

    Please acknowledge the above.

    Yours Truly,

    P.C. Siebers, Master of M.T. Corrona.

     Notice accepted at 1700 hrs on August 29 2002

    Signature ……………………….. (Shippers / Receivers)

    Agent…………………………. 

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    References

    1. Van Kluijven, P.C. –  The International Maritime Language Programme, Alk &

    Heijnen Publishers, Alkmaar, 2005.

    2. Logie, Vivers, Nisbet Marlins Study Pack 2 (book and two audio cassettes).

    Edinburgh, Marlins, 1998 (ISBN 09531748 1 6)