TRAINING SERIES ACE GLOBAL LINES DWC LLC. * Powered By Excellence * Prepared By : Lawrence Fernandes

Transcription

1 TRAINING SERIES ACE GLOBAL LINES DWC LLC * Powered By Excellence * Prepared By : Lawrence Fernandes

2 SHIPPING DOCUMENTATION Prepared By : Lawrence Fernandes

3 DOCUMENTS IN SHIPPING v Booking Note : A contract between carrier & shipper prior issue of the bill of lading. v Shipping Note : Issued by the shipper with the shipment details. v Mate s Receipt : Initial receipt for the cargo received in the carrier s custody. v Bills of Lading : Document that covers carriage of goods by sea. v Manifest : Summary of cargoes the ship is carrying. v Delivery Order : Instruction to release cargo on receipt of successfully accomplished bill of lading. v Letter of Indemnity ( endorsed by a 1 st class bank)

4 IMPORTANT FUNCTIONS OF A B/L v Receipt for Shipment: Its prima facie evidence of the receipt of cargoes for shipment in apparent good order and condition. v Document of Title : The holder of the B/L has the right to the possession of the cargo. 1) Negotiable Document: It can be used for commercial purposes. 2) Security for Payment: It is used as a security for the documentary letter of credit. v Evidence of Contract : The B/L is an evidence of the contract between the carrier & the shipper for carriage of goods by sea.

5 Important B/L Clauses / Terms Used v Shipped on Board: Cargoes have physically been loaded on board the designated vessel on that particular date. v Clean Bill of Lading: This is a b/l which bears no clause or notation which expressly declares a defective condition of the goods and/or the packaging (UCP-500). (Letter of Indemnity implication) v Received for Shipment Bill of Lading: This is a b/l which covers cargoes handed into the custody of the carrier, but not physically loaded on board the vessel. v Accomplished Bill of Lading: A b/l that has been duly endorsed by the shipper, consignee & bank (if involved). One b/l being accomplished, the others to be void.

6 v Shipper s Load, Stow, Count & Sealed: The shipper is responsible for the above functions. v Said to Contain (STC): The cargo details on the b/l are declared by the shipper and the carrier is not responsible for the same. v Freight Prepaid/Collect: This provides the details of collection of freight. A contract of carriage is invalid in the event the freight remains unpaid. The carrier has lien on the cargo for unpaid freight. v Standard Trading Conditions OR Conditions of Carriage: The conditions of carriage of cargo by the carrier, as printed on the reverse of the bill of lading. v Other Clauses: Perishable, Reefer, Imco, Damages, Dest. Charges.

7 STRUCTURE / FORMAT OF A B/L ( front ) v Name of Carrier v Bill of Lading Number v Shipper v Consignee v Notify Party v Pre-Carriage v Place of Receipt v Vessel / Voy v Port of Loading / Port of Discharge v Place of Delivery (Final Destination) v Freight Location v Number of Originals v Container / Seal Number v Description of Goods v Weight & Measurement v Freight Details v Place & date of Issue v Signed on Behalf of Master / Carrier.

8 STRUCTURE / FORMAT OF A B/L ( reverse ) STANDARD TRADING CONDITIONS v Clause Paramount: Provides the applicable Law v Lien Clause: Right of the carrier to hold/confiscate cargo towards unpaid freight. v Freight Clause: Conditions pertaining to the freight v General Average Clause: The conditions if a general average situation arises. v Salvage Clause: What happens in the event the ship/cargo has to be salvaged. v Deck Cargo / Livestock: Conditions pertaining to carriage of perishable / other deck / Livestock cargoes. v Transhipment Clause: The carrier reserves the right to tranship cargoes. v Himalaya Clause: A suit cannot be made against the servants of the carrier. v Both to Blame Collision Clause: What happens in the event of a collision. v War Risk Clause.

9 TYPES OF BILLS OF LADING v Through Transport B/L: This b/l is issued where there are more than one carriage legs eg. Pre-carriage / post-carriage. The responsibility of the carrier covers all the legs of the voyage (Eg. The Feeder s through b/l ) v Combined Transport Bill of Lading This b/l is issued where the shipment is covered from door-to-door or by more than one mode of transport eg. Road, Rail etc. ( Eg. Balaji b/l) v SeaWay Bill, Service B/L, Memo B/L: This b/l is not a document of title. The b/l is not negotiable and presentation of 3 OBL s is not mandatory for delivery of cargo to the consignee. v Forwarder s B/L (House B/L): This b/l is as per the format of the International Freight Forwarders Association (FIATA). The forwarder issues this b/l to his shippers. The Carriers b/l in this case becomes a Service B/l.

10 BILLS OF LADING FRAUD / PROBLEMS v Cargo Related: Goods are of inferior quality, wrong description or which do not exist at all ( Protection: STC, SLSC) v Forged b/l. (Protection: Copy of b/l issued is relayed to the POD for cross-checking prior release of D.O.) v Wrongful Delivery of Cargo. (Protection: Due Deligence, Insurance) v Inspection prior taking of D.O. (Protection: Do not allow) v Lost Bills of lading (Protection: Police complaint, Bank Guarantee). v Shipped on Board: If cargo is not actually shipped, the carrier has 100 % liability. (Protection: Do not issue unless actually shipped) v Back-dated B/L: Fraud in case a bank has been cheated. Possibility of Claims (Protection: Do not issue ) v Damaged Goods / Clean on Board: Fraud by the shipper. The carrier is responsible (Protection: If goods are damaged, get the goods replaced, or clause the b/l) v Freight prepaid / Collect: Loss to the carrier (Protection: Document correctly) v Personal Guarantee/LOI: Not acceptable by law ( Protection: Insist on OBLS, Get Bank Guarantee)

11 DELIVERY ORDER ( D.O.) A Delivery Order is an instruction from the carrier to the Port, authorising the release of cargo to the rightful consignee on surrender (to the carrier) of a Duly Accomplished Bill of lading. The following elements are checked prior release of D.O.. v Accomplished B/L: If the OBLS were surrendered at the Load Port, cnee s request letter. If not 1) Whether the Shipper has stamped and signed on the reverse of the OBL 2) If the consignee is To Order or a Bank, whether the Bank has endorsed the reverse of the OBL. 3) Whether the Consignee has stamped and signed on the reverse of the OBL. 4) Whether all three OBLS are surrendered.

12 v v v v Clauses: Check the clauses and see if the same are in order eg. FCL/ FCL, FCL/LCL,LCL/FCL & LCL/LCL. Weight & Measures: Especially for LCL shipments its very important to check that the correct weight / measures are reflected in the D.O. Body of B/l: All details in the body of the b/l to be checked for discrepancy with the manifests eg. Contr no, seals, marks, description. D.O. to contain correct details. Freight & Other Collections: All clauses pertaining to Money have to be checked. Wherever applicable charges on freight, local handlings, surcharges, imco, demurrages, IPT etc should be collected prior issue of D.O. Note: The Notify Party has no legal rights to the cargo.

13 DELIVERY ORDER SEQUENCE Load Port Sends Manifest Arrival Notice is sent to the Consignee Files edited as per DPA reqmt Consignee surrenders OBLS DELIVERY ORDER IS RELEASED Cnee takes DO and docs to the Customs, Pays the Customs Duty Cnee takes Docs to the DPA counter and pays DPA charges. DPA gives clearance CONSIGNEE GOES TO CY OR CFS & GETS DELIVERY OF CARGO/CONTAINER Manifests are sent to DPA Manifest Number is received from DPA & DPC Manifest / BL details are checked by the DO counter

14 SHIPPING DOCUMENTATION ACE GLOBAL LINES DWC LLC * Powered By Excellence * Thank You!