Tomislav Skračić, MA

Undergraduate English Course for

MARITIME MANAGERS6th Semester

Essential reading: T. Skračić, Waypoint – English Textbook for

Maritime Students, Pomorski fakultet, Split 2010, Units 29-33

T. Trappe & G. Tullis, Intelligent Business, Longman 2005

SHIPPING PROCEDURE SHIPPING PROCEDURE AND DOCUMENTATION -AND DOCUMENTATION -part 2part 2

UNIT 31

Shipping note, dock receipt and Shipping note, dock receipt and mate’s receiptmate’s receipt

The goods are transported to the docks accompanied by a shipping note. The note is handed to the superintendent of the docks, advising him that the goods are to be shipped. This note gives details of marks, references, number and description of packages, weight, and port of destination. Each package making up a shipping consignment must be distinguished by the so-called leading mark which is necessary for identification of the goods. All relevant documents must also bear this mark.

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The shipping note is signed by the wharfinger and returned to the shipper (consignor), confirming that the goods are stored and awaiting shipment. This is a dock receipt or a wharfinger's receipt. The shipper then lodges bills of lading with the shipowner or agent. Cargo is loaded aboard ship under the supervision of the chief officer or cargo officer. Once the goods are on board the ship, a mate's receipt may be sent, acknowledging that the goods have been loaded. The mate's receipt serves as a document of title until the bill of lading is ready.

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Bill of ladingBill of lading The bill of lading (B/L) is the most important

document in shipping as it is a document of title, i.e. gives ownership of the goods to the person named on it. A shipped bill of lading means that the goods have been loaded on to the ship. In c.i.f. and c. & f. transactions the words 'freight prepaid' are used to signify that the costs of shipment have been paid. If the cargo is in good condition and everything is in order, no endorsement will be made on the document, and it can be termed a clean bill of lading.

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On the contrary, if the goods are damaged or a portion of the consignment is missing, the document will be suitably endorsed by the master or his agent, and the B/L will be considered "claused" or "unclean". This statement protects the shipping company from claims that they were responsible for the damage or bad condition of the consignment.

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A bill of lading names the port of acceptance and port of delivery. In this case the shipping company only accepts responsibility for the goods while on board ship. But if a combined transport B/L is used, the place of acceptance and place of delivery may be covered, which means the company accepts door-to-door responsibility, which offers more extensive cover than the bill of lading.

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Ship’s manifest and customs Ship’s manifest and customs clearanceclearance Cargo has to be stowed according to the cargo

plan, with due regard to the sequence of discharge in order to avoid demurrage and additional labour costs. This might happen if the goods intended for one port were overstowed by those for the next port of call. Further, cargo should be distributed throughout the ship to facilitate speed of discharge. The quantity and type of cargo in different holds are also considered. When the ship has completed loading, specification of all cargo on board is prepared, and this is known as the ship's manifest.

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When loading operations are completed the agent, or master of the vessel, applies for a clearance of the ship at the local customs house. This clearance is given provided that evidence has been produced to testify that the cargo is in order, necessary permits have been procured, harbour dues have been paid, and emigration and port health regulations have been carried out.

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Chartering shipsChartering ships A vessel can be hired through a shipbroker who will find

a ship owner who is prepared to hire his vessel on either a "voyage charter", or "time charter" basis.

Voyage charter charges, i.e. taking freight from port A to B, are calculated on the tonnage value of the cargo. For example, if an exporter ships 500 tons of coal at £1.20 per ton, he will pay £600.00 for the charter.

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Chartering shipsChartering ships Time charter charges are calculated on the tonnage of

the ship (i.e. the weight of the ship) plus running costs of the vessel, excluding wages. So the larger the ship, the more the charterer pays, regardless of whether s/he ships 500 tons or 5,000 tons. There are also mixed charters combining both time and voyage charters.

The contract signed by both parties is known as a charter party.

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Exercises Exercises ● Use the following words to complete the text:

basis, charterer, crewing, duplicate, employment, instrument, master, owner, sub-type.

CHARTER-PARTY In Latin language, charta partita is a legal paper or ____________ which is divided, i.e. written in ____________ so that each party retains half. In shipping business, a charter party is a written, or partly written and partly printed, contract between the ____________ of a vessel and the charterer for the use of a vessel. There are two main types of charter, a voyage charter and a time charter. There is a ____________ of time charter called the demise or bareboat charter. In a voyage charter, the ____________ hires the vessel for a single voyage, while the vessel's owner (or disponent owner) provides the ____________, crew, bunkers and supplies.

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Exercises Exercises ● Use the following words to complete the text:

basis, charterer, crewing, duplicate, employment, instrument, master, owner, sub-type.

In a time charter, the vessel is hired for a specific amount of time. The owner still manages the vessel but the charterer gives orders for the _____________ of the vessel, and may sub-charter the vessel on a time charter or voyage charter ____________ . The demise or bareboat charter is a time charter in which the charterer takes responsibility for the ____________ and maintenance of the ship during the time of the charter, assuming the legal responsibilities of the owner.

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● Answer the following questions:

a) What does the shipping note include?

b) Who signs the shipping note and what does s/he confirm by signing it?

c) What is the signed shipping note called?

d) Who supervises the loading of the cargo?

e) What kind of document does this officer issue when the cargo is loaded?

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● Answer the following questions:

f) What is a bill of lading?

g) Explain the difference between a clean and unclean bill of lading.

h) Why is the cargo plan important?

i) What is the ship's manifest and when is it prepared?

j) What conditions must be fulfilled before the customs clearance is issued to the ship?

k) Explain the difference between the voyage charter and time charter.

l) What is the leading mark?

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Match the major participants in the Match the major participants in the shipping procedure with the shipping procedure with the definitionsdefinitions

a) Port authority

b) Stevedores

c) Consignee

d) Shipbroker

e) Customs house

f) Clearing/Forwarding agents

g) Shipper

1. A company engaged in loading/discharge and stowage of

cargo on board ship.

2. A company that operates, manages or owns vessels and

undertakes the carriage of goods by sea.

3. A shipping agent or merchant that provides the goods and

books shipping space with the owner.

4. A firm or persons authorised to receive the cargo and to

whom it is consigned.

5. A governmental or administrative body governing the

safety and arrangement of port operations.

6. The place where imports are entered and clearance

papers are obtained.

7. Persons or company taking care of cargo from one place

to another by sea, land or air; also deal with customs

formalities on behalf of the ship.Unit 31

Choose some of the following Choose some of the following structures and make sentence of your structures and make sentence of your ownown

o be handed too under the supervision ofo be in ordero accept / take responsibility foro harbour dueso with due regard too apply foro provided thato regardless of

Unit 31

Translate into Croatian:Translate into Croatian:a) Free Alongside Ship (FAS) means that the seller pays for

transportation of the goods to the port of shipment. The buyer pays loading costs, freight, insurance, unloading costs and transportation from the port of destination to his factory.

b) The master or agent applied for a clearance after the loading operations had been completed.

c) FOB is an abbreviation for Free On Board. This term is commonly used when shipping goods, to indicate who pays loading and transportation costs, and/or the point at which the responsibility of the goods transfers from shipper to buyer.

d) When a price is quoted CIF (Cost, Insurance and Freight) it means that the selling price includes the cost of the goods, the freight or transport costs and also the cost of marine insurance.

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Translate into EnglishTranslate into English

1. F.O.B. znači (implies) da je dužnost prodavača (seller) proizvesti robu, dovesti je do luke i pobrinuti se (see to it that) da je ona ukrcana na brod kojeg osigurava (provide) kupac.

2. Stoga prodavač snosi sve pristojbe (bears all charges) koje prethode ukrcavanju robe, poput vozarine (cartage), osiguranja, rukovanja, prijevoza teglenicom (lighterage) i sl.

3. Nakon što je predana originalna kopija teretnice, sve ostale kopije teretnice gube svoju vrijednost (lose value).

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Translate into EnglishTranslate into English

4. Kupac će biti odgovoran za pristojbe vezane uz otpremanje robe do svog skladišta, uključujući prijevoz teglenicom, pristojbe za vez (dock dues) i carinske pristojbe.

5. Naručitelj (charterer) će snositi (bear) sve troškove prekovremenog rada u vezi s dopremom (tendering) i preuzimanjem robe.

6. Teret treba biti raspoređen (distributed) po brodu tako da omogući brzi iskrcaj (discharge).

7. Špediteri često djeluju u ime (on behalf of) izvoznika.

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