Transcript Shipping procedure & documentation

Tomislav Skračić, MA
Undergraduate English
Course for
MARITIME MANAGERS
6th 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
UNIT 31
SHIPPING PROCEDURE
AND DOCUMENTATION part 2
Shipping note, dock receipt and mate’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.
Unit 31
 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.
Unit 31
Bill 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.
Unit 31
 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.
Unit 31
 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.
Unit 31
Ship’s manifest and customs clearance
 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.
Unit 31
 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.
Unit 31
Chartering 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.
Unit 31
Chartering 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.
Unit 31
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.
Unit 31
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.
Unit 31
● 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?
Unit 31
●
Answer the following questions:
f)
g)
What is a bill of lading?
Explain the difference between a clean and unclean
bill of lading.
Why is the cargo plan important?
What is the ship's manifest and when is it prepared?
What conditions must be fulfilled before the customs
clearance is issued to the ship?
Explain the difference between the voyage charter
and time charter.
What is the leading mark?
h)
i)
j)
k)
l)
Unit 31
Match the major participants in the shipping
procedure with the definitions
1. A company engaged in loading/discharge and stowage of
cargo on board ship.
a) Port authority
b) Stevedores
c) Consignee
d) Shipbroker
e) Customs
house
f) Clearing/Forw
arding agents
g) Shipper
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 structures and
make sentence of your own
o
o
o
o
o
o
o
o
o
be handed to
under the supervision of
be in order
accept / take responsibility for
harbour dues
with due regard to
apply for
provided that
regardless of
Unit 31
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.
Unit 31
Translate 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).
Unit 31
Translate into English
4.
5.
6.
7.
Kupac će biti odgovoran za pristojbe vezane uz
otpremanje robe do svog skladišta, uključujući prijevoz
teglenicom, pristojbe za vez (dock dues) i carinske
pristojbe.
Naručitelj (charterer) će snositi (bear) sve troškove
prekovremenog rada u vezi s dopremom (tendering) i
preuzimanjem robe.
Teret treba biti raspoređen (distributed) po brodu tako da
omogući brzi iskrcaj (discharge).
Špediteri često djeluju u ime (on behalf of) izvoznika.
Unit 31
Unit 31