Lecture 7 - Documentation

MARITIME
DOCUMENTATIONS
Documentation
requirements depends on
country & merchandise.
Use freight forwarders or
forwarding agents. Benefit:

Ensure documentation
requirement accurately
completed
Specialized in handling
documentation.
Faster & easier, Door-to-door.
Document involved:
involved
1.
2.
3.
4.
5.
6.
7.
8.
Bill of Lading
Charter Parties
Export/Import Licenses
Invoice
Certificate of origin
Inspection Certification
Insurance Certificate
Packaging Lists
Defined as a receipt for goods carried on board a

ship, signed by the person (or agent) who
contracts to carry them, stating the terms on
which goods were delivered to and received by
the ship.
ship
Central document for facilitating international

trade and transportation.
A document which evidences a contract of
carriage by sea. Sometimes called as Sea Waybill.

Waybill
Issued by:
by a shipping company, master of vessel
or agents on behalf of a shipping line to the
shipper.
1. BOL as a contract between carrier & shipper

Justify terms of agreement between carrier &
shipper.
* Shippers - retailers and manufacturers of
goods that require shipping
* Carriers (also called private carriers) are
companies with goods to be shipped that own or
manage their own vehicle fleets. What goods,
designated ports, designated ships, sailing date
& financial considerations.
Contract effectives when signed by the master &
accepted by shipper.
2. BOL as a receipt:
receipt
BOL completed by shipper details the
cargo, shipment (package, boxes etc.),

and weight of goods.
Shipper is obligated by law to provide
accurate information.
Carriers reserve the rights to open the
cargo for verification.

In case of non-delivery @ damage, BOL
becomes proof of quantity & condition.
3. BOL as evidence of ownership

A copy of BOL will be sent to consignee,
so consignee will be awaiting the arrival

of ships.
To protect against theft, agent at the port
will require consignee to produce copy of

BOL.
Anyway, possessor of BOL could pass the
authority to third party (with enclosed

written statement).
Name of shipper
Name of carrying vessel
Full description of cargo
Marks & numbers identifying the goods
Port of shipment
Port of discharge
Details on freight charge payment
term.
Terms of contract of carriage
Date goods received & loaded on
vessel
Name & address of the notified party
Signature
Straight BOL
BOL states that the goods are
deliverable solely to a named

consignee.
Cannot appoint third party.
Also called Consignment BOL
Open BOL
BOL states that goods are deliverable
to bearer.
Cargo can be claimed by persons who
presents the original @ copy of BOL.
Shipped BOL
BOL issued by ship owner to shipper, proving
that the goods have been actually shipped.

Most BOL already printed with wording
Shipped in apparent good order & condition.
Also called Onboard BOL.
Stale BOL
BOL presented to consignee or their banks
after goods arrived & due at port.

Therefore, it is not acceptable as a valid
document.
Cargo cannot be cleared, increase cost.
Through BOL
Need to employ 2 or more carriers, to
reach destinations. (Similar or different

transport)e.g. use train and vessel
Shipping companies issue BOL which
cover the whole transit. Through rate
will be quoted.
Shipper deals only with the first
carriers.
Also called Multimodal BOL.
Groupage BOL
BOL issued by a carrier to a forwarding agent
which covers consignments from various
shippers for the same destination which have
been consolidated into one consignment by the
forwarding agent.
Mostly in containerized market as cargo destine to
same destination are console into FCL.
*FCL means the load reaches its allowable maximum (or

full) weight or measurement. Shipping line issues
Groupage BOL to freight forwarders.
Transhipment BOL
Issued when there is no direct service between 2
ports.
Ship owner tranship the cargo at intermediate port
at their expenses.
Clean BOL : issued by a carrier declaring that
the goods have been received in an

appropriate condition, without the presence of
defects. The product carrier will issue a clean
bill after thoroughly inspecting the packages
for any damage, missing quantities or
deviations in quality.
Claused BOL : that shows a shortfall or
damage in the delivered goods. Typically, if

the shipped products deviate from the delivery
specifications or expected quality, the receiver
may declare a claused bill of lading. Converse
to clean BOL.
Long form BOL

Optional discharge BOL
Origin BOL
Port to port BOL
Order BOL
Ocean BOL
Domestic BOL
Memo BOL
Uniform BOL . and so forth and so on.
In addition to liner service, a large number of
world trade is also carried by tramp service.

Here, they used a document which is known as
charter party.
party
Charter Party (C.P) is a contract in which the
ship owner agrees to place his vessel or a part

of it at the disposal of a third party (charterer),
for carriage of goods for which he receives a
freight per ton cargo, or to let his vessel for a
definite period or trip for which a hire is paid.
Charterer:
Charterer the legal person who has signed a
charter party with the owner of a vessel and

thus hires or leases a vessel or a part of the
capacity thereof.
Demise Charter Party

Arises when charterer is responsible for
providing the cargo & crew.

crew
Ship owner provides the vessels.

Consequences charterer take full
responsibility for the operation of the

vessel, & pay all expenses incurred.
For a period of time may vary from
few weeks to several years.
Non-Demise Charter Party

Arises when ship owner provides
the vessel & crew,

crew charterer merely
supplies the cargo.
Different payment term for
loading, discharging & port

expenses.
Gross terms form of charter
Commonly used. Shipowner pays all

expenses (loading, discharging, port
charges) incurred.
FIO (Free in & out) charter Charterer
pays loading & discharging cost.

Shipowner pay port charges.
Lump sum charter Charterer pays
lump sum of money for the use of space

available in a ship.
C
/
N
O
N
-D
EM
IS
E
D
EM
IS
E
Liner charter Shipowner

charged a freight rate (which
usually charged by liner services).
Covers also cost of loading,
stowing & discharging cargo.
Anyway, there are numerous
variations in charter party,
depends on negotiation.
Terms & conditions in CP represent the

need of both parties.
These are certain essential clause
necessary:
1. The preamble : Contracting parties,
Vessel name.
2. Description of cargo : Quantity
(minimum and maximum).
3. Loading date : Laytime (days to
weeks).
4. Loading/Discharging port or place :
either single port, or one of range of

picked port.
5. Payment of freight : Terms, currency
of payment, consideration on
exchange rate.
6. Lay time, Demurrage

7. Penalty for non-performance
Lay Time/ Lay Days

Number of days allowed in a charter party
for the loading and discharging of cargo.

May be indicated in different ways:
Consecutive days:
days Next calendar days. Once
started, lay times count includes Sunday &

holidays.
Working days:
days Do not perform work on Sunday &
holidays.
Weather working days:

days Lay time do not count
when bad weather condition prevent operation.
When laytime starts?

Two (2) criteria must be fulfilled:
Vessel must be an arrived ship
at loading port.
Vessel must be physically ready
to load.
Demurrage
Compensation paid to shipowner in
respect of a breach of charterers

obligation to load and/or discharge the
vessel within laytime stipulated in
charter party.
Additional charge imposed for
exceeding the agreed time, which is

included in the rate for the use of berth
& certain equipment at the terminal.
I have a ship. So, I
am a ship owner. I
got a lot of money
from the charterer
who charter my ship.
Remember our
agreed lay-time,
dont forget it.
HAVE A NICE
VOYAGE!
THE END!!!

Lecture 7 - Documentation

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MARITIME

forwarding agents. Benefit:

Defined as a receipt for goods carried on board a

Central document for facilitating international

A document which evidences a contract of

carriage by sea. Sometimes called as Sea Waybill.

1. BOL as a contract between carrier & shipper

cargo, shipment (package, boxes etc.),

cargo for verification.

becomes proof of quantity & condition.

3. BOL as evidence of ownership

so consignee will be awaiting the arrival

will require consignee to produce copy of

authority to third party (with enclosed

deliverable solely to a named

that the goods have been actually shipped.

after goods arrived & due at port.

reach destinations. (Similar or different

same destination are console into FCL.

*FCL means the load reaches its allowable maximum (or

Groupage BOL to freight forwarders.

Clean BOL : issued by a carrier declaring that

the goods have been received in an

Claused BOL : that shows a shortfall or

damage in the delivered goods. Typically, if

Long form BOL

In addition to liner service, a large number of

world trade is also carried by tramp service.

Charter Party (C.P) is a contract in which the

ship owner agrees to place his vessel or a part

charter party with the owner of a vessel and

Demise Charter Party

providing the cargo & crew.

Ship owner provides the vessels.

responsibility for the operation of the

few weeks to several years.

Non-Demise Charter Party

the vessel & crew,

Different payment term for

loading, discharging & port

Gross terms form of charter

Commonly used. Shipowner pays all

pays loading & discharging cost.

lump sum of money for the use of space

Liner charter Shipowner

Terms & conditions in CP represent the

4. Loading/Discharging port or place :

either single port, or one of range of

5. Payment of freight : Terms, currency

6. Lay time, Demurrage

Lay Time/ Lay Days

for the loading and discharging of cargo.

started, lay times count includes Sunday &

Weather working days:

when bad weather condition prevent operation.

When laytime starts?

respect of a breach of charterers

exceeding the agreed time, which is

I have a ship. So, I