MARENG 3
UNIT 1
Below you will find a list of the vocabulary that has to be researched for the test of Unit 1,followed by additional research material that should be used, all in preparation for your test of Unit 1.
VOCABULARY
Address commission
Bare boat charterer
Carrier
Charter party
Charterer
consignor
Delivery certificate
Delivery of the vessel
Demise charter
Demurrage
Due diligence
Gross hire/Gross lease
Hire
Ice clause
INCOTERMS
Latent defect
Laydays
Negligence clause
Oil consumption - Bunker clause
Owner
Seaworthy
Shipbroking
The Hamburg Rules
The Rotterdam
Rules
Time charter
Voyage chartererRESEARCH MATERIAL
Charter
Party
(Lat. charta partita, a legal paper or instrument, divided, i.e.
written in duplicate so that each party retains half), a written, or partly
written and partly printed, contract between a shipowner and a merchant, by which a ship is let or
hired for the conveyance of goods on a specified voyage, or for a defined
period. A vessel might also be chartered to carry passengers on a journey.
Also, a written contract between shipowner and charterer whereby a ship is hired; all terms,
conditions and exceptions are stated in the contract or incorporated by
reference.
A charter party is the
contract between the owner of a vessel and the charterer for the use of a
vessel. The charterer takes over the vessel for either a certain amount of time
(a time charter) or for a certain point-to-point voyage (a voyage charter),
giving rise to these two main types of charter agreement. There is a subtype of
time charter called the demise or bareboat charter.
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 employment of the vessel, and may
sub-charter the vessel on a time charter or voyage charter basis.
The demise or bareboat charter
is a subtype of time charter in which the charter takes responsibility for the
crewing and maintenance of the ship during the time of the charter, assuming
the legal responsibilities of the owner and is known as a disponent owner.
In a voyage charter, the
charterer hires the vessel for a single voyage, and the vessel's owner (or
disponent owner) provides the master, crew, bunkers and supplies.
US Law
(Note the US
COGSA, the Carriage of Goods by Sea Act, does not apply of its own
force to charter parties, but does apply to bills of lading issued to a shipper
by the charterer (in the US
What has been said above
mostly applies to commercial operations and voyages. In pleasure boating, the
most frequent charter arrangement is the bareboat charter. The voyage or time
charter is only used for larger yachts and is more the exception than the rule.
Charter fleets are mostly made up of boats belonging to individuals or
companies who only use their boats on a part time basis or as an investment. a
recent arrangement in recreational boating is the time-share chartering in
which several charterers are assigned a certain number of days per month or
season in a manner which resembles time-share for residential resorts.
Typical clauses
A charter-party may contain
these clauses.
Bunker clause
A bunker clause stipulates
that owners shall accept and pay for all
fuel oil in the vessel's bunkers at port of delivery and conversely, charterer
shall pay for all fuel oil in the vessel's bunkers at port of re-delivery at
current price at the respective ports. It is customary to agree upon a certain
minimum and maximum quantity in bunkers on re-delivery of the vessel.
Ship clause
under this clause, the owner
of the ship writes clearly that the ship w
Ice clause
An ice clause is inserted in a
bill of lading or a charter-party when a vessel is bound for a port or ports which may be
closed to shipping by ice when the vessel arrives or after the vessel's
arrival.
Lighterage clause
A lighterage clause is
inserted into charter-parties which show as port of discharge any safe port in
a certain range, e.g. Havre/Hamburg range.
Negligence clause
A negligence clause tends to
exclude shipowner's or carrier's liability for loss or damage resulting from an
act, default or neglect of the master, mariner, pilot or the servants of the
carrier in the navigation of manoeuvring of a ship, not resulting, however,
from want of due diligence by the owners of the ship or any of them or by the
ship's husband or manager.
Ready berth clause
A ready berth clause is
inserted in a charter-party, i.e. a stipulation to the effect that laydays will begin to count as soon
as the vessel has arrived at the port of loading or discharge "whether in
berth or not". It protects shipowner's interests against delays which
arise from ships having to wait for a berth.
Chartering is an activity within the shipping industry. In some cases a charterer
may own cargo and employ a shipbroker to find a ship to deliver the cargo for a certain price, called freight rate. Freight rates may be on a per-ton
basis over a certain route (e.g. for iron ore between Brazil and China) or
alternatively may be expressed in terms of a total sum - normally in U.S.
dollars - per day for the agreed duration of the charter.A charterer may also be a party without a cargo who takes a vessel on charter for a specified period from the owner and then trades the ship to carry cargoes at a profit above the hire rate, or even makes a profit in a rising market by re-letting the ship out to other charterers.
Depending on the type of ship and the type of charter, normally a standard contract form called a charter party is used to record the exact rate, duration and terms agreed between the shipowner and the charterer.
Time Charter Equivalent is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance despite changes in the mix of charter types.
Charter types
- A voyage charter is the
hiring of a vessel and crew for a voyage between a load port and a
discharge port. The charterer pays the vessel owner on a per-ton or lump-sum basis. The owner pays the port
costs (excluding stevedoring), fuel costs and crew costs.
- A time charter is the
hiring of a vessel for a specific period of time; the owner still manages
the vessel but the charterer selects the ports and directs the vessel
where to go. The charterer pays for all fuel the vessel consumes, port
charges, and a daily 'hire' to the owner of the vessel.
- A bareboat charter is an arrangement for the
hiring of a vessel whereby no administration or technical maintenance is
included as part of the agreement. The charterer pays for all operating
expenses, including fuel, crew, port expenses and hull insurance. Usually, the charter period (normally
years) ends with the charterer obtaining title (ownership) in the hull. Effectively, the owners finance the purchase of the vessel.
- A demise charter shifts
the control and possession of the vessel; the charterer takes full control
of the vessel along with the legal and financial responsibility for it.
Common
carrier
A common carrier in common-law countries (corresponding to a public
carrier in civil-law systems,[1] usually called simply a carrier)
is a person or company that transports goods or people for any person or
company and that is responsible for any possible loss of the goods during
transport.[2] A common carrier offers its
services to the general public under license or authority provided by a regulatory
body. The regulatory body has usually been granted “ministerial authority” by
the legislation which created it. The regulatory body may create, interpret,
and enforce its regulations upon the common carrier (subject to judicial
review) with independence and finality, as long as it acts within the bounds of
the enabling legislation.A common carrier is distinguished from a contract carrier (also called a public carrier in UK English),[2] which is a carrier that transports goods for only a certain number of clients and that can refuse to transport goods for anyone else, and from a private carrier. A common carrier holds itself out to provide service to the general public without discrimination (to meet the needs of the regulator's quasi judicial role of impartiality toward the public's interest) for the "public convenience and necessity". A common carrier must further demonstrate to the regulator that it is "fit, willing, and able" to provide those services for which it is granted authority. Common carriers typically transport persons or goods according to defined and published routes, time schedules, and rate tables upon the approval of regulators. Public airlines, railroads, bus lines, cruise ships, motor carriers (i.e., trucking companies), and other freight companies generally operate as common carriers. Under
The term common carrier is a common law term, which is seldom used in continental
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General
Although common carriers
generally transport people[3] or goods, in the United States the term may
also refer to telecommunications providers and public utilities[citation needed]. In certain U.S. states, amusement parks that operate roller coasters and comparable rides have been
found to be common carriers; a famous example is Disneyland.[4]Regulatory bodies may also grant carriers the authority to operate under contract with their customers instead of under common carrier authority, rates, schedules and rules. These regulated carriers, known as contract carriers, must demonstrate that they are "fit, willing and able" to provide service, according to standards enforced by the regulator. However, contract carriers are specifically not required to demonstrate that they will operate for the "public convenience and necessity." A contract carrier may be authorized to provide service over either fixed routes and schedules, i.e., as regular route carrier or on an ad hoc basis as an irregular route carrier.
It should be mentioned that the carrier refers only to the person (legal or physical) that enters into a contract of carriage with the shipper. The carrier does not necessarily have to own or even be in the possession of a means of transport. Unless otherwise agreed upon in the contract, the carrier may use whatever means of transport approved in its operating authority, as long as it is the most favourable from the cargo interests’ point of view. The carriers' duty is to get the goods to the agreed destination within the agreed time or within reasonable time.
The person that is physically transporting the goods on a means of transport is referred to as the "actual carrier". When a carrier subcontracts with another provider, such as an independent contractor or a third-party carrier, the common carrier is said to be providing "substituted service". The same person may hold both common carrier and contract carrier authority. In the case of a rail line in the U.S., the owner of the property is said to retain a "residual common carrier obligation", unless otherwise transferred (such as in the case of a commuter rail system, where the authority operating passenger trains may acquire the property but not this obligation from the former owner), and must operate the line if service is terminated.
In contrast, private carriers are not licensed to offer a service to the public. Private carriers generally provide transport on an irregular or ad hoc basis for their owners.
Carriers were very common in rural areas prior to motorised transport. Regular services by horse drawn vehicles would ply to local towns, taking goods to market or bringing back purchases for the village. If space permitted, passengers could also travel.
R Matthews & Son of Brailes, Warwickshire provided a service to the local towns of Banbury,
Telecommunications
In the telecommunications regulation context in the United States, telecommunications carriers are
regulated by the Federal Communications Commission under title II of the Communications Act of 1934.Computer networks (for example, the Internet) that are built on top of telecommunications networks are Information Services or Enhanced Services,[citation needed] and are generally regulated under title I of the Communications Act (other networks, such as cable video networks or wireless taxi dispatch networks, are neither telecommunications carrier networks nor information services).
Internet Service Providers have argued against being classified as a "common carrier" and, so far, have managed to do so. The argument of ISPs against common carrier classification has largely conflated "telecommunications carriers" with "common carriers," assuming that if they were labeled as "common carriers," they would be regulated under Title II of the Communications Act by the FCC. This is incorrect; as noted above, a firm can be a common carrier without being a telecommunications carrier. The FCC proceeding that established that Internet networks are not telecommunications carriers is the Computer Inquiries. A later FCC report, IN RE FEDERAL-STATE JOINT BOARD ON UNIVERSAL SERVICE, Report to Congress, 13 FCC Rcd. 11501 (1998), reviewed this policy (this report was not an order and did not have the effect of regulatory law - it is however, an excellent capture of FCC policy at that time).
The policy of the FCC has evolved. Traditionally, an Internet network information service would acquire its telecommunications needs from a telecommunications carrier. It was an Internet network layered on top of a telecommunications network. Pursuant to recent FCC decisions, Internet DSL and Internet Cable services are now considered combined as one "information service." There is no telecommunications carrier service underneath for other ISPs to use. This has resulted in a transformation of the ISP market. Previously, thousands of ISPs had access to the telephone network. Now, with no broadband telecommunications carrier service available, there are generally only two Internet broadband providers in a residential market: the cable Internet provider and the DSL Internet provider. Cable ISPs and the DSL ISPs have market power and have both the incentive and opportunity to discriminate with regard to content and applications used over their networks. The AT&T CEO has declared that Google should no longer get a free ride, and should pay AT&T in order to be delivered to AT&T's customers. This is a dramatic departure from 100 years of telecommunications carrier history.[neutrality is disputed] This has led to the argument in favor of network neutrality and a return to the common carrier principles that networks should neither discriminate due to content nor be liable for content.
Internet networks are in many respects already treated like common carriers. ISPs are largely immune from liability for third party content. The Good Samaritan provision of the Communications Decency Act established immunity from liability for third party content on grounds of libel or slander. The DMCA established that ISPs which comply with DMCA would not be liable for the copyright violations of third parties on their network.
Legal
implications
Common carriers are subject
to special laws and regulations which differ depending on the means of
transport used, e.g. sea carriers are often governed by quite different rules
than road carriers or railway carriers. In common law jurisdictions as well as under
international law, a common carrier is absolutely liable[5] for goods carried by it, with four
exceptions:[6]- An act of nature
- An act of the public enemies
- Fault or fraud by the shipper
- An inherent defect in the goods
Carriers typically incorporate further exceptions into a contract of carriage, often specifically claiming not to be a common carrier.
An important legal requirement for common carrier as public provider is that it cannot discriminate, that is refuse the service unless there is some compelling reason (e.g. post doesn't allow to send cash[citation needed]). As of 2007, the status of Internet Service providers as common carriers and their rights and responsibilities is widely debated (network neutrality).
It is also important to remember that the term common carrier does not exist in continental Europe but is distinctive to common law systems, particularly law systems in the
Consignee
In a contract of carriage, the consignee is the person
to whom the shipment is to be delivered whether by land,
sea or air.
A
brief statement of law
This is a difficult area of
law in that it regulates the mass transportation industry which cannot always
guarantee arrival on time or that goods will not be damaged in the course
of transit. A further two problems are that unpaid consignors or freight carriers may wish to hold goods
until payment is made, and fraudulent individuals may seek to take
delivery in place of the legitimate consignees. The key to resolving such
disputes lies in the documentation. The standard form of contract is a
bill of lading which, in international shipping law, is simply a contract for the
carriage of goods entered into between the shipper and the carrier that is not
a charter party. It is always a term of that contract that the carrier must
deliver the goods to a specific receiver.
Documentation
and legal requirements for delivery
A straight bill of lading by land or sea, or air waybill are not documents of title to the
goods they represent. They do no more than require delivery of the goods to the
named consignee and (subject to the shipper's ability to redirect the goods) to
no other. This differs from an "order" or "bearer" bill of
lading which are possessory title documents and negotiable, i.e. they can be
endorsed and so transfer the right to take delivery to the last endorsee. This
aspect of shipping law is regulated by the Hague Rules, and the laws of individual
countries, e.g. the
Consignee
rights
The rights of the consignee
under an air waybill are regulated by the Warsaw Convention for the Unification of Certain
Rules for International Carriage by Air, 1929 and the Montreal Convention for the Unification of Certain Rules for
International Carriage by Air 1999 and the relevant state laws (which may be
one law chosen as the proper law by the parties, or any combination of laws
representing the seller, buyer, consignor, and carrier.If Sender sends a widget to Receiver via a delivery service, Sender is the consignor and Receiver is the consignee.
Consignor
The consignor, in a contract of carriage, is the person sending a shipment
to be delivered whether by land, sea or air. Some carriers, such as national
postal entities, use the term "sender" or "shipper" but in
the event of a legal dispute the proper and technical term "consignor"
will generally be used.If Sender sends a widget to Receiver via a delivery service, Sender is the consignor and Receiver is the consignee.
Shipbroking
Shipbroking is an activity which forms part of
the international shipping industry. Shipbrokers are specialist
intermediaries between shipowners and the charterers who use ships to transport cargo, or between buyers and sellers of
ships.Larger broking firms have separate departments specialising in Dry Cargo Chartering, Tanker Chartering, Containers, Sale & Purchase and sometimes also Demolition sales and Research. Major shipbroking centres include Geneva, London, Oslo, Piraeus, Genova, New York, Houston, Hamburg, Copenhagen, Singapore, Tokyo, Hong Kong and Shanghai. Although some brokers cover more than one discipline, most shipbroking activity can be divided as follows:
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Sale and purchase
S&P brokers handle the
buying and selling of existing or new ships (called newbuildings in industry parlance). S&P
brokers discuss opportunities and market trends with shipowners, report on
sales, value vessels, calculate freight earnings, advise on finance and try to
find ships for specific employment opportunities. When a ship is sold, brokers
usually negotiate on behalf of the buyer and seller on price and terms and also
provide a route to resolving any disputes which might arise. Some S&P
brokers specialise in the sale of ships for scrapping, which requires a different set of
skills.
Dry
cargo broking
Dry cargo brokers are
typically specialists in the chartering of bulk carriers, and are appointed to act either
for a ship owner looking for employment for a ship, or a charterer with a cargo
to be shipped. Dry brokers typically maintain large databases of vessel positions, cargoes and
rates and pay close attention to the direction of the markets so that they can
advise their clients accurately on how to maximise profits or minimise
expenses. This area of business is often sub-divided into size classes of
bulkers - capesize, panamax and handysize are the main sectors. Each sector
involves different cargoes, trade routes, owners and charterers and dry brokers
tend to specialise in one of these sectors.
Tanker
broking
Tanker brokers specialise
in the chartering of tankers, which requires an entirely different
set of skills and knowledge to dry cargo broking. Tanker brokers may specialise
in crude oil, gas, oil products or chemical tankers.Tanker brokers negotiate maritime contracts which are known as Charter Parties. The main terms of negotiation are freight/hire and demurrage.
Freight or Hire rate (when a time charter) for crude oil tankers is based on universal calculations assessed once a year know as worldscale. For specialist ships, such as LNG tankers, where the charter market is smaller, prices are agreed at a fixed rate between the parties.
Container
broking
Container brokers
specialise in the chartering of container ships and provide container ship owners
and charterers with market-related information.
Technical
management
Technical management involves the duties a shipping company must perform for the technical operation of a vessel. This involves management related to crew management with related tasks, logistics related to operations as well as operations, service and maintenance.
Often technical management is performed by the ship owning company, but not always. Technical management is sometimes performed by separate companies than the commercial management, that involves chartering of the vessels and the financial aspects that is performed by the owner company.
Technical manager also involves managing all areas of technical support. Below you can find major duties of a technical management company.
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Planned Maintenance System
This is a preventing
maintenance program for the vessels machinery equipment. After certain number
of running hours or a fixed time period of each machinery equipment vessels
crew has to perform maintenance. The technical management company has to follow
up the procedure and make sure that everything is performed according with the
instructions of equipment's manufacturer.
Spare
Parts
The technical management
company, collects all vessels spare parts requisitions and arrange supply to a
convenient port. The logistics part of this process is also part of the
technical management company's obligations.
Day
to Day Monitoring
The technical managers
receive noon reports in regular intervals with vital informations regarding the
operation of machinery equipment. The office staff supervise the operation of
the machinery to ensure everything is running according with guidelines. This
works complementary to vessels technical staff.
Troubleshooting
In case of a technical
problem the managers provide assistance and all necessary resources to the
vessels crew to resolve the problem.
Dry
Docking Supervision
The technical management
company organize and supervise the regular dry docking required by the
international regulations and classification rules.
Ship-owner
From Wikipedia, the free
encyclopedia
A shipowner is the
owner of a merchant vessel (commercial ship). In the commercial sense of the
term, a shipowner is someone who equips and exploits a ship, usually for
delivering cargo at a certain freight rate, either as a per freight rate
(given price for the transport of a certain cargo between two given ports) or
based on hire (a rate per day). Shipowners typically hire a licensed crew and captain
rather than take charge of the vessel in person. Usually the shipowner is
organized through a company, but also people and investment funds can be ship owners. If owned by a ship company, the shipowner usually performs technical management of the vessel through the company,
though this can also be outsourced or relayed onto the shipper through
bareboat charter.
Shipping
The Panama Canal. A cargo ship transiting the Gatún
locks northbound is guided carefully between lock chambers by "mules"
on the lock walls to either side.
Shipping has multiple meanings. It can be a
physical process of transporting goods
and cargo, by land, air, and sea. It also can
describe the movement of objects by ship.Land or "ground" shipping can be by train or by truck. In air and sea shipments, ground transportation is often still required to take the product from its origin to the airport or seaport and then to its destination. Ground transportation is typically more affordable than air shipments, but more expensive than shipping by sea.[citation needed]
Shipment of freight by trucks, directly from the shipper to the destination, is known as a door to door shipment. Vans and trucks make deliveries to sea ports and air ports where freight is moved in bulk.
Much shipping is done aboard actual ships. An individual nation's fleet and the people that crew it are referred to its merchant navy or merchant marine. Merchant shipping is essential to the world economy, carrying 90% of international trade with 50,000 merchant ships worldwide.[1] The term shipping in this context originated from the shipping trade of wind power ships, and has come to refer to the delivery of cargo and parcels of any size above the common mail of letters and postcards.
Terms
of shipment
Common trading terms used
in shipping goods internationally include:- Freight on board, or free on board (FOB) - the exporter delivers the goods at the
specified location (and on board the vessel). Costs paid by the exporter
include load and lash, including securing cargo not to move in the ships
hold, protecting the cargo from contact with the double bottom to prevent
slipping, and protection against damage from condensation. For example,
"
- Cost and freight (C&F, CFR,
CNF): Insurance is payable by the importer, and the exporter pays the
ocean shipping/air freight costs to the specified location. For example,
C&F Los Angeles (the exporter pays the ocean shipping/air freight
costs to Los Angeles). Many of the shipping carriers (such as UPS, DHL, FedEx) offer guarantees on their
delivery times. These are known as GSR guarantees or "guaranteed
service refunds"; if the parcels are not delivered on time, the
customer is entitled to a refund. [2]
- Cost, insurance, and freight
(CIF): Insurance and freight are all paid by the exporter to the specified
location. For example, at CIF Los Angeles, the exporter pays the ocean
shipping/air freight costs to Los Angeles including the insurance).[citation
needed]
- The term "best way"
generally implies that the shipper will choose the carrier who offers the
lowest rate (to the shipper) for the shipment.[3] In some cases, however, other
factors, such as better insurance or faster transit time will cause the
shipper to choose an option other than the lowest bidder.
Stevedore
Stevedores
on a New York dock loading barrels of corn
syrup onto a barge on the Hudson River. Photograph by Lewis Hine, c.1912
Stevedore, dockworker, docker, dock
labourer and longshoreman can have various waterfront-related meanings concerning loading
and unloading ships, according to place and country.The word stevedore originated in Spain or Portugal, and entered the English language through its use by sailors. It started as a phonetic spelling of Spanish estibador or Portuguese estivador, meaning a man who stuffs, here in the sense of a man who loads ships, which was the original meaning of stevedore; compare Latin stīpāre meaning to stuff, as in to fill with stuffing.[1] In the United Kingdom, men who load and unload ships are usually called dockers, while in the United States and Canada the term longshoreman, derived from man-along-the-shore, is used.[2] (Before extensive use of container ships and shore-based handling machinery in the U.S., longshoremen referred exclusively to the dockworkers, while stevedores, in a separate trade union, worked on the ships, operating ship's cranes and moving cargo.) In Canada, the term stevedore has also been used, for example, in the name of the Western Stevedoring Company, Ltd., based in Vancouver, B.C. in the 1950s
INTERNATIONAL
CONVENTIONS Carriage of Goods by Sea Act
The Carriage of Goods by
Sea Act ("COGSA")[1] is a United States statute governing the rights and
responsibilities between shippers of cargo and ship-owners regarding ocean shipments to and
from the United States. It is the The United States Congress, concerned that the Hague Rules did not offer shippers enough protection against damage to cargo by shipowners, amended the Hague Rules in a number of minor, but important, ways. It increased the amount that shipowners would have to pay cargo owners for damage in transit from GBP100 per package to US$500 per package or, for goods not shipped in packages, per customary freight unit. This "package limitation" has become one of the most contentious and litigious areas in the field of cargo damage, particularly as it relates to the transportation of goods by ocean shipping containers.
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History
of Limitation of Liability for Cargo Damage
At the time of the passage
of COGSA most cargo was shipped in boxes, crates, and bags. Shortly after its
passage, cargo owners determined that cargo could be handled more efficiently
if placed on pallets, a process that results in numerous
boxes or bags of cargo being consolidated on a single pallet. Shipowners,
seeing an opportunity to reduce their liability for cargo damage, argued to the
courts that the pallets were now "packages" and that they were
entitled to limit their liability to $500 per pallet. Some
courts agreed.Shipowners, again seeing an opportunity to limit their liability, began arguing that the containers were "packages" and that they could limit their liability to $500 per container, even though the contents of a container may be valued at over $500,000. Again, some courts agreed.
It is this imbalance, both in the relative bargaining power of cargo owners, and the superior bargaining power of shipowners, and the imbalance between $500 per container and the true value of a shipment which has led to countless lawsuits and judicial opinions over the "package limitation" problem.
The rest of world, seeing this as an attempt by shipowners to free themselves from responsibility for protecting cargo, amended
Limitation
of Liability for Cargo not shipped in Packages
Many types of cargo are not
shipped in packages such as automobiles, yachts, cranes, and heavy construction
equipment. For those cargoes, Congress had intended the limitation on liability
for shipowners to be $500 per 100 cubic feet (3.7 m3).At the time of the passage of COGSA the customary freight unit for most cargo was the "revenue ton" - the number of long tons (2240 lb, 1017 kg) or measurement tons (100 cubic feet) that would produce the most revenue for the shipowner. For example, a cargo of aluminium ingots, which were not packaged for shipment, would be heavy and dense, so the customary freight unit for aluminum ingots would be the long ton, a measurement of weight. By comparison, a shipment of canoes, which were not packaged for shipment, would be light but would take up a large volume, ensuring the customary freight unit would be the measurement ton of 100 cubic feet (2.8 m3). If a canoe were 2 feet (0.61 m) wide by 2 feet (0.61 m) high by 10 feet (3.0 m) long (0.6 m x 0.6 m x 3 m), its measurement would be 40 cubic feet (2 x 2 x 10) which would be one measurement ton (anything less than 100 would be 1 by default) and hence the limitation would be $500 per canoe.
The courts, possibly believing that Congress' approach was too cumbersome, jettisoned the word "customary" from the phrase "customary freight unit" and decided that whatever freight unit the shipowner applied would be the freight unit for determining the limitation on liability. Again, seeing an opportunity to limit their liability for cargo damage, shipowners began freighting all cargo by unit, rather than by units of weight or measurement. Consequently an automobile which might have a volume of 400 cubic feet (15 m3), or 4 measurement tons, which would previously entitle the carrier to a limitation of $2000, was now freighted as "one automobile" thereby reducing the shiponwer's liability from $2000 per automobile to $500.
Hague-Visby
Rules
The Hague-Visby Rules are a set of international rules
for the carriage of goods
by sea. The
official title is "International Convention for the Unification of Certain
Rules of Law relating to Bills of Lading" and was drafted in Brussels in
1924. After being amended by the Visby Amendments (officially the
"Protocol to Amend the International Convention for the Unification of
Certain Rules of Law Relating to Bills of Lading") in 1968, the Rules
became known as the Hague-Visby Rules. A final amendment was made in the SDR
Protocol in 1979.The premise of the Hague-Visby Rules (and of the earlier English Common Law) is that a carrier has far greater bargaining power than the shipper; and that to protect the interests of the shipper/cargo-owner, the law should impose minimum obligations upon the carrier.
The Hague-Visby Rules were incorporated into English law by the Carriage of Goods by Sea Act 1971; and English lawyers should note the provisions of the statute as well as the text of the rules. For instance, although Article I(c) of the Rules exempts live animals and deck cargo, section 1(7) restores those items into the category of "goods". Also, although Article III(4) declares a bill of lading to be a mere "prima facie evidence of the receipt by the carrier of the goods", the Carriage of Goods by Sea Act 1992 section 4 upgrades a bill of lading to be "conclusive evidence of receipt".
Under Article X, the Rules apply if ("a) the bill of lading is issued in a contracting State, or (b) the carriage is from a port in a contracting State, or (c) the contract (of carriage) provides that(the) Rules ... are to govern the contract". If the Rules apply, the entire text of Rules is incorporated into the contract of carriage, and any attempt to exclude the Rules is void under Article III (8).
The
Carrier's Duties
Under the Rules, the
carrier's main duties are to "properly and carefully load, handle, stow,
carry, keep, care for, and discharge the goods carried" and to
"exercise due diligence to ... make the ship seaworthy" and to
"... properly man, equip and supply the ship". It is implicit (from
the common law) that the carrier must not deviate from the agreed route nor from
the usual route; but the Article IV(4) provides that "any deviation in
saving or attempting to save life or property at sea or any reasonable
deviation shall not be deemed to be an infringement or breach of these
Rules".The carrier's duties are not "strict", but require only a reasonable standard of professionalism and care; and Article IV allows the carrier a wide range of situations exemption them from liability on a cargo claim. These exemptions include destruction or damage to the cargo caused by: fire, perils of the sea, Act of God, & Act of war. A controversial provision exempts the carrier from liability for "neglect or default of the master ... in the navigation or in the management of the ship". This provision is considered unfair to the shipper; and both the later Hamburg Rules and Rotterdam Rules refuse exemption for negligent navigation and management.
The
Shipper's Duties
By contrast, the shipper
has fewer obligations (mostly implicit), namely: (i) to pay freight; (ii) to
pack the goods sufficiently for the journey; (iiii) to describe the goods
honestly and accurately; (iv) not to ship dangerous cargoes (unless agreed by
both parties); and (v) to have the goods ready for shipment as agreed;
(q.v."notice of readiness to load").
Hamburg
Rules
The Hamburg Rules
are a set of rules governing the international shipment of goods, resulting from the United Nations International Convention on the Carriage of Goods by Sea adopted in Hamburg on 31 March 1978.[1] The Convention was an attempt to
form a uniform legal base for the transportation of goods on oceangoing ships. A driving force behind the
convention was the attempt of developing countries' to level the playing field.
It came into force on 1 November 1992
Rotterdam
Rules
The "Rotterdam
Rules", formally the United Nations Convention on Contracts for the
International Carriage of Goods Wholly or Partly by Sea is a set of
international rules that revises the legal and political framework for maritime carriage of goods. The convention establishes a more
modern, uniform legal regime governing the rights and obligations of shippers, carriers and consignees under a contract for door-to-door shipments that involve
international sea transport.[1] The aim of the convention is to
extend and modernize international rules already in existence and achieve
uniformity of admiralty law in the field of maritime carriage,
updating and/or replacing many provisions in the Hague Rules, Hague-Visby Rules and Hamburg Rules.[2][1]The final draft of the Rotterdam Rules, which was assembled by the United Nations Commission on International Trade Law, was adopted by the United Nations on December 11, 2008 and a signing ceremony commenced in Rotterdam, The Netherlands (the convention's informal namesake) on September 23, 2009.[3][2] Signers included United States, France, Greece, Denmark, Switzerland and the Netherlands; in all, signatures were obtained from countries which are said to make up 25 percent of world trade by volume[4]. Signatures were allowed after the ceremony at the UN Headquarters in New York City, New York, United States[3]. There, the twentieth signature was secured on October 23, 2009 satisfying the document's final ratification requirement.[5] As of November 16, 2009, the convention awaits confirmation by the United States Senate before it can come into force as law in the United States.
The World Shipping Council is a prominent supporter of the Rotterdam Rules.[5]
Notable
provisions
The following are notable
provisions and law changes found in the Rotterdam Rules.- It extends the period of time
that carriers are responsible for goods to cover the time between the
point where the goods are received to the point where the goods are
delivered.[4] Note. Only if there is a sea
leg involved in the transport. Thus the Rotterdam Rules are not completely
multimodal since all multimodal carriage excluding a sea leg is outside of
the scope of application.
- It allows for more e-commerce and approves more forms of electronic documentation.[4]
- It obligates carriers to have
ships that are seaworthy and properly crewed throughout the voyage.[4] The level of care is set to
due diligence, which is the same as in the Hague Rules.
- It increases the limit
liability of carriers to 875 units of account per shipping unit or three
units of account per kilogram of gross weight.[4]
- It eliminates the
"nautical fault defence" which had prevented carriers and
crewmen from being held liable for negligent ship management and
navigation.[4]
- It extends the time that legal
claims can be filed to two years following the day the goods were
delivered or should have been delivered.[4]
- It allows parties to
"volume" certain contracts to opt-out of some liability rules set in
the convention.[4]
United
Nations Convention on the Law of the Sea
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United
Nations Convention on the Law of the Sea
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 |
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Signed
Location |
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Effective
Condition |
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Parties
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160[2]
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While the Secretary General of the United Nations receives instruments of ratification and accession and the UN provides support for meetings of states party to the Convention, the UN has no direct operational role in the implementation of the Convention. There is, however, a role played by organizations such as the International Maritime Organization, the International Whaling Commission, and the International Seabed Authority (the latter being established by the UN Convention).
Contents
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Historical background
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International Ownership Treaties
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Law of the Sea
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In the early 20th century, some nations expressed their desire to extend national claims: to include mineral resources, to protect fish stocks, and to provide the means to enforce pollution controls. (The League of Nations called a 1930 conference at The Hague, but no agreements resulted.) Using the customary international law principle of a nation's right to protect its natural resources, President Truman in 1945 extended United States control to all the natural resources of its continental shelf. Other nations were quick to follow suit. Between 1946 and 1950, Argentina, Chile, Peru, and Ecuador extended their rights to a distance of 200 nautical miles to cover their Humboldt Current fishing grounds. Other nations extended their territorial seas to 12 nautical miles.
By 1967, only 25 nations still used the old three-mile limit, while 66 nations had set a 12-mile territorial limit and eight had set a 200-mile limit. As of May 28, 2008, only two countries still use the three-mile limit: Jordan and Palau.[3] That limit is also used in certain Australian islands, an area of Belize, some Japanese straits, certain areas of Papua New Guinea, and a few British Overseas Territories, such as Anguilla.
UNCLOS
I
In 1956, the United Nations
held its first Conference on the Law of the Sea (UNCLOS I) at Geneva, Switzerland. UNCLOS I
resulted in four treaties concluded in 1958:- Convention on
the Territorial Sea and Contiguous Zone, entry into force: 10 September 1964
- Convention on the
Continental Shelf, entry into force: 10 June 1964
- Convention on the High Seas, entry into force: 30
September 1962
- Convention on
Fishing and Conservation of Living Resources of the High Seas, entry into force: 20 March
1966
UNCLOS
II
In 1960, the United Nations
held the second Conference on the Law of the Sea (“UNCLOS II”); however, the
six-week Geneva conference did not result in any new agreements. Generally
speaking, developing nations and third world countries participated only as
clients, allies, or dependents of United States or the Soviet Union, with no
significant voice of their own.
UNCLOS III
Sea areas
in international rights
The issue of varying claims
of territorial waters was raised in the UN in 1967 by Arvid Pardo, of Malta, and in 1973 the Third United
Nations Conference on the Law of the Sea was convened in New York. In an attempt to reduce the
possibility of groups of nation-states dominating the negotiations, the
conference used a consensus process rather than majority vote. With more than
160 nations participating, the conference lasted until 1982. The resulting
convention came into force on November 16, 1994, one year after the sixtieth state,
Guyana, ratified the treaty.The convention introduced a number of provisions. The most significant issues covered were setting limits, navigation, archipelagic status and transit regimes, exclusive economic zones (EEZs), continental shelf jurisdiction, deep seabed mining, the exploitation regime, protection of the marine environment, scientific research, and settlement of disputes.
The convention set the limit of various areas, measured from a carefully defined baseline. (Normally, a sea baseline follows the low-water line, but when the coastline is deeply indented, has fringing islands or is highly unstable, straight baselines may be used.) The areas are as follows:
Covers all water and waterways on the landward
side of the baseline. The coastal state is free to set laws, regulate use, and
use any resource. Foreign vessels have no right of passage within internal
waters.
Out to 12 nautical miles from the baseline, the
coastal state is free to set laws, regulate use, and use any resource. Vessels
were given the right of innocent passage through any territorial waters,
with strategic straits allowing the passage of military craft as transit passage, in that naval vessels are allowed to maintain postures that would be
illegal in territorial waters. "Innocent passage" is defined by the
convention as passing through waters in an expeditious and continuous manner,
which is not “prejudicial to the peace, good order or the security” of the
coastal state. Fishing, polluting, weapons practice, and spying are not
“innocent", and submarines and other underwater vehicles are required to
navigate on the surface and to show their flag. Nations can also temporarily suspend
innocent passage in specific areas of their territorial seas, if doing so is
essential for the protection of its security.
Archipelagic
waters
The convention set the definition of
Archipelagic States in Part IV, which also defines how the state can draw its
territorial borders. A baseline is drawn between the outermost points of the
outermost islands, subject to these points being sufficiently close to one
another. All waters inside this baseline are designated Archipelagic Waters.
The state has full sovereignty over these waters (like internal waters), but
foreign vessels have right of innocent passage through archipelagic waters
(like territorial waters).
Beyond the 12 nautical mile limit there was a
further 12 nautical miles or 24 nautical miles from the territorial sea baselines limit, the contiguous zone, in
which a state could continue to enforce laws in four specific areas: pollution, taxation, customs, and immigration.
Exclusive economic zones (EEZs)
Extends from the edge of the territorial sea
out to 200 nautical miles from the baseline. Within this area, the coastal
nation has sole exploitation rights over all natural resources. In casual use,
the term may include the territorial sea and even the continental shelf. The
EEZs were introduced to halt the increasingly heated clashes over fishing rights, although oil was also becoming important. The
success of an offshore oil platform in the Gulf of Mexico in 1947 was soon repeated elsewhere
in the world, and by 1970 it was technically feasible to operate in waters 4000
metres deep. Foreign nations have the freedom of navigation and overflight,
subject to the regulation of the coastal states. Foreign states may also lay
submarine pipes and cables.
The continental shelf is defined as the natural
prolongation of the land territory to the continental margin’s outer edge, or 200 nautical miles from the coastal state’s baseline,
whichever is greater. State’s continental shelf may exceed 200 nautical miles
until the natural prolongation ends. However, it may never exceed 350 nautical
miles from the baseline; or it may never exceed 100 nautical miles beyond the
2,500 meter isobath (the line connecting the depth of 2,500 meters). Coastal
states have the right to harvest mineral and non-living material in the subsoil
of its continental shelf, to the exclusion of others. Coastal states also have
exclusive control over living resources "attached" to the continental
shelf, but not to creatures living in the water column beyond the exclusive
economic zone.
Aside from its provisions
defining ocean boundaries, the convention establishes general obligations for
safeguarding the marine environment and protecting freedom of scientific
research on the high seas, and also creates an innovative legal regime for
controlling mineral resource exploitation in deep seabed areas beyond national
jurisdiction, through an International Seabed Authority and the Common heritage of mankind principle.[4]Landlocked states are given a right of access to and from the sea, without taxation of traffic through transit states.
Part
XI and the 1994 Agreement
Part XI of the Convention
provides for a regime relating to minerals on the seabed outside any state's
territorial waters or EEZ (Exclusive Economic Zones). It establishes an International Seabed Authority (ISA) to authorize seabed
exploration and mining and collect and distribute the seabed mining royalty.The United States objected to the provisions of Part XI of the Convention on several grounds, arguing that the treaty was unfavorable to American economic and security interests. Due to Part XI, the United States refused to ratify the UNCLOS, although it expressed agreement with the remaining provisions of the Convention.
From 1983 to 1990, the United States accepted all but Part XI as customary international law, while attempting to establish an alternative regime for exploitation of the minerals of the deep seabed. An agreement was made with other seabed mining nations and licenses were granted to four international consortia. Concurrently, the Preparatory Commission was established to prepare for the eventual coming into force of the Convention-recognized claims by applicants, sponsored by signatories of the Convention. Overlaps between the two groups were resolved, but a decline in the demand for minerals from the seabed made the seabed regime significantly less relevant. In addition, the decline of Socialism and the fall of Communism in the late 1980s had removed much of the support for some of the more contentious Part XI provisions.
In 1990, consultations were begun between signatories and non-signatories (including the United States) over the possibility of modifying the Convention to allow the industrialized countries to join the Convention. The resulting 1994 Agreement on Implementation was adopted as a binding international Convention. It mandated that key articles, including those on limitation of seabed production and mandatory technology transfer, would not be applied, that the United States, if it became a member, would be guaranteed a seat on the Council of the International Seabed Authority, and finally, that voting would be done in groups, with each group able to block decisions on substantive matters. The 1994 Agreement also established a Finance Committee that would originate the financial decisions of the Authority, to which the largest donors would automatically be members and in which decisions would be made by consensus.
Signature and ratification
ratified signed, but
not yet ratified did not
sign
Opened for signature — December 10, 1982.Entered into force — November 16, 1994.[1]
The convention is ratified by 160 countries, Niue, Cook Islands and the European Union.
Countries that have signed, but not yet ratified — (19) Afghanistan, Bhutan, Burundi, Cambodia, Central African Republic, Colombia, El Salvador, Ethiopia, Iran, Democratic People's Republic of Korea, Libya, Liechtenstein, Malawi, Niger, Rwanda, Swaziland, Thailand, United Arab Emirates, United States.
Countries that have not signed — (20) Andorra, Azerbaijan, Ecuador, Eritrea, Israel, Kazakhstan, Kyrgyzstan, Peru, San Marino, Syria, Tajikistan, Timor-Leste, Turkey, Turkmenistan, Uzbekistan, Vatican City, Venezuela, Palestine, Taiwan, Sahrawi Republic.
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