BS (MARITIME & BUSINESS MANAGEMENT)[2]-2 (A) Morning/[2]-3 (A) Morning

Assignment: 2 marks

Upload your answers to LMS/E.mail on time.

1. Why bill of lading is important?

Answer:
The Bill of Lading is the contract of carriage, in other words it embodies the agreement
between the carrier and the shipper on movement and delivery of goods.

It is used as a receipt signed by the carrier confirming that the goods match the
description listed and have been received by the carrier in good order.

It can indicate the terms of sale by listing the Incoterms:

 For instance, if the shipping agreement between the consignor and consignee is
door to door delivery (Door Move of DDP may be listed).
 Or if the goods have only been contracted to the carrier to deliver to the port (CIF
may be listed).
 Also, in being a title of goods it represents ownership of the goods.
 A shipper can hold on to the original Bill of Lading as collateral to ensure the
goods are paid for in full and the terms of sale have been met.
 In these cases, the original Bill of Lading is often required in order for the carrier
or forwarder to issue a freight release allowing the consignee to physically take
possession.
 When completed in full, the Bill of Lading aids the customs broker in matching up
the commercial clearance documents in order to ensure they are able to make an
accurate declaration for all goods to Customs on the importer's behalf.

2. Make a table: Differences between Time Charterparty and Voyage Charterparty.

Answer:

Time Charter Party Voyage Charter Party

1 ship remains in the possession of the owner, the
ship is delivered to the time charterer and
redelivered by it at the end of the charter period
2 A time charterparty will typically provide that the
charterer must pay the hire “in cash” by the due
date
Under a voyage charterparty the owner pays for the
maintenance of the ship, insurance, crew wages and the
bunkers. The charterer pays freight to have its goods
carried from the loadport to the discharge port.
The freight due under a voyage charterparty usually
covers the preliminary voyage to the loadport.
The charterparty will provide what the freight is: it may
be a lump sum; or in a tanker charter ascertained by
reference to Worldscale; or be calculated by reference to

Dr. Yasmeen Zamir Maritime Sciences

 BS (MARITIME & BUSINESS MANAGEMENT)[2]-2 (A) Morning/[2]-3 (A) Morning

the amount of cargo

3 Standard forms of time charter provide that hire
will cease to be payable on the occurrence of
certain events which prevent the full working of the
ship either for the time lost to the charterer as a
result of such event or during the period that the
event continues
4 Events specified in the off hire clause may include
breakdown of the ship’s engines, the ship running
aground, “detention by average accidents to ship or
cargo” (an accident which causes damage), “default
and/or deficiency of men” or capture and seizure or
“any other cause”
5 Tailor-made off hire clauses may be included in the
charterparty.
6 The ship must actually be ready when the notice of
7
A distinction must be drawn between the date on which
the freight becomes due and that on which it becomes
payable. Once the freight is due the owner will not lose
its right to be paid the freight even if the ship is
subsequently lost with all her cargo on board.
Unlike the time charterer who can make deductions
from hire by way of equitable set off, there is no such
right of deduction from freight.
Terms of the charterparty laytime (is the amount of time
allowed in a voyage charter for the loading and
unloading of cargo) will begin to run when three
requirements have been satisfied:
first the ship is an “arrived ship” at the load port;
second notice of readiness has been given in accordance
with the charterparty terms;
third the ship is in fact ready.
readiness is given.

3. What is the difference between cargo claims and passenger claims. In points or table.
Answer:

Cargo Claim:
 Cargo claims are brought by cargo interests against carriers when the cargo in which
they have an interest is not delivered, is delivered short or is delivered damaged.
 The carriers sued may be shipowners or charterers.
 The terms on which the cargo interest will claim against the carrier may also vary: in
some circumstances, the claim will be brought on the terms of a bill of lading (a
document issued by a carrier to acknowledge receipt of cargo for shipment)
 The objectives of the parties to the claim, however, are simple: the cargo claimant has
suffered a loss which it seeks to recover through an award of damages against the
carrier
 The claimant may have more than one route through which to claim against the carrier
 Where the claimant in a cargo claim is a charterer, then its carrier is the party from
whom it chartered the ship.
 Where the claimant is not a charterer, then the identity of its carrier will depend on the
logo or banner heading of the bill of lading

Dr. Yasmeen Zamir Maritime Sciences

BS (MARITIME & BUSINESS MANAGEMENT)[2]-2 (A) Morning/[2]-3 (A) Morning

Passenger Claim:
 EU passenger regulations: This Regulation is intended to strengthen passengers’ rights
as well as rights of disabled passengers to compensation from the carrier
 Passengers whose journey is delayed by more than 90 minutes are entitled to
refreshments, re- routing or reimbursement, and if necessary to accommodation for a
maximum of three nights up to a cost of EUR 80 per night.
 Compensation for delayed arrival of up to a half of the ticket price may be payable in the
event of delayed arrival at destination, but the right to accommodation does not apply if
the delay or cancellation is caused by bad weather.
 Likewise no compensation for late arrival is due if weather conditions or extraordinary
circumstances hindered the performance of the service
 Special provisions require facilities and assistance to be provided to passengers with
disabilities

Dr. Yasmeen Zamir Maritime Sciences