MARITIME TRANSPORT

I. Characteristics of Maritime Transport

1. Advantages ☺
• Low infrastructure
• Large capacity Trade volume (big ships)
(=3000 lần air) (sức chở: đo bằng TEU - Twenty Equivalent Unit = 1 20ft
• Distance container = 30 tons)
• Low unit transportation cost (air x3)
• Good adaptability to cargoes of different sizes,
weight, shape…
I. Characteristics of Maritime Transport
2. Disadvantages ☹
• Low speed
• Vulnerable to bad weather
• Less punctional compared with road or air
transport The Suez Canal (193.30 km) is an artificial sea-level waterway
in Egypt, connecting the Mediterranean Sea to the Red Sea
through the Isthmus of Suez and dividing Africa and Asia. The
long canal is a popular trade route between Europe and Asia.

The Panama Canal is an artificial waterway (82 km) in Panama

that connects the Atlantic Ocean with the Pacific Ocean and
divides North and South America.

- Reduction of travel distances between regions of the world

- Reduce cost considerably
- Less time => more effective => more trips per year
II. Infrastructure of Maritime Transport
1. Seaports
 II. Infrastructure of Maritime Transport
1. Sea Ports
1.1. Definition not have to be sea water, where land & fresh water joins

“an area where land and water joins, that have the
facilities and tools to accommodate the loading,
discharging and storing of cargo intended for
sea-goind vessels, as well as the receiving and
dispatching of this cargo to and via means of
transport on land, and where other sea related
activities will take place”.
“Ports are the mouths though which continents
speak to others”
Port of Rotterdam

6
Module 2 – Maritime Transport
© Copyright 2009-2014 Vector
FIATA Diploma in International Freight
Aviation Co., Ltd
Management
II. Infrastructure of Maritime Transport
1. Seaports
1.2 Functions of seaports
• To ensure safety for seagoing vessels entering,
operating in and leaving the seaports pilot service - dịch vụ hoa tiêu
• To provide facilities and equipment necessary for
seagoing vessels to anchor, load and unload cargoes,
embark and disembark passengers.
• To provide cargo transportation, loading and
unloading, warehousing and preservation services in
the seaports.
• To provide shelter, repair, maintenance or necessary
services to seagoing vessels and other crafts in
emergency cases.
• To provide other services for seagoing vessels, people
and cargoes.
II. Infrastructure of Maritime Transport
1. Seaports
1.3. Classification of seaports
a) On using purpose: types of goods handled
• Commercial ports
• Military ports
• Fishing ports
b) On serving limitation
• Inland port: domestics routes
• International port: international routes
Question: Classification of seaport according to
Vietnam Maritime Code 2005?

Answer: Vietnam Maritime Code 2005

 II. Infrastructure of Maritime Transport
1. Seaports search for images at home

1.4. Facilities of Seaports

Group 1: Facilities serving seagoing vessel’s maneuvers and anchorage
at ports
Wharf ; Pilot station; IT …
Group 2: Cargo handling equipments
Group 3: Facilities and equipment for storaging and warehousing:
warehouses, storage yards, workshops, ffice buildings, service
facilities
Group 4: Transportation network within seaports: roads, sub-channel,
parking area
Group 5: Administration facilities: information and communication,
electricity and water systems
II. Infrastructure of Maritime Transport
1. Seaports
1.5. Port Performance Indicators
• average number of calls and the
• average flow–volume or weight–of goods over
a standard period of time;
• number of calls per berth and per year
• volume or weight of cargo handled per hour,
per call or per day, per gang or per crane
• ……
II. Infrastructure of Maritime Transport
1. Seaports
1.5. Port Performance Indicators – Financial
berth: cầu cảng -> tàu muốn xếp hoặc dỡ hàng thì phải đến cầu cảng
Indicators => phục vụ các loại cần cẩu, xếp hoặc dỡ hàng ra => tàu phải trả hiền
cho cảng
Indicators Unit
Tonnage worked how many tons of cargo Tons
Berth occupancy revenuedoanh thu từ việc
cho thuê berth Monetary unit/ton
Cargo handling revenue Monetary unit/ton
Labour expenditure Monetary unit/ton
Capital equipment expenditure Monetary unit/ton
II. Infrastructure of Maritime Transport
1. Seaports
1.5. Port Performance Indicators – Operational
Indicators
Indicators Unit
Arrival rate Ships/day
Waiting time time between arrival and berthing Hours/ship
Turn-round timetime between arrival & departure (how long
the port serves the vessel)
Hours/ship
Tonnage per ship số lượng cần cẩu có thể làm việc cho 1 Tons/ship
con tàu trong 1 ca làm việc
Number of gangs employed per ship per shift Gangs
Service time time between berthing & departure Hours/ship
II. Infrastructure of Maritime Transport
1. Seaports
1.6. Seaport network in Vietnam
Homework: search for seaport network in Vienam: North, Central & South of Vietnam

Presentation 1
Singapore: service-based economy, no manufacturing

II. Infrastructure of Maritime Transport

2. Ship/vessel
Definition of ship: A vessel of considerable size for
deep-water navigation

Vietnam Maritime Code/ Article 11: Seagoing

vessels are vessels or other moving floating
structures exclusively used for navigation on the
sea.
tàu buôn

Definition of merchant ship: a ship operating with

commercial purpose
Why tàu ko chở thẳng hàng từ SGN tới ROT: Hub - Spoke system
- Big ships are slow - take time
- Tàu lớn đi nhanh hơn
- Ko economical khi tàu lớn cứ phải đi lấy hàng lặt vặt ở nhiều
cảng nhỏ
II. Infrastructure of Maritime Transport
2. Ship/vessel
2.1 Characterstics of Merchant ships
a. Name of ship: made by ship-owner and is
approved in writing by authorized Shipping
Registry office.
🡪Vietnam National Register of Ships
Example: Titanic, Hoa sen, Cần Giờ, SG1029
- VNRS will check có tàu bị trùng tên khi đăng ký ko -> nếu có thì bị neglected
- Phải in tên lên tàu, kèm theo tên cảng đăng ký

Question: How to change the name of a ship?

II. Infrastructure of Maritime Transport
2. Ship/vessel
2.1 Characterstics of Merchant ships
b. Port of registry
Place where a ship is registered with the
authorities, thereby establishing its nationality.

Show the nationality of a vessel

Carry country of nationality’s flag.
II. Infrastructure of Maritime Transport
2.Ship/vessel
2.1 Characterstics of Merchant ships
c) Flag
There are 2 different types of flags:
do IMO (Int Marine Org) quy định
- International Marine Signals Flags 🡪to
communicate massages Nautical Flags and
their meanings chạy
cờ tín hiệu hàng hải: tàu chở hàng nguy hiểm thì treo cờ gì,
với tốc độ siêu nhanh thì treo cờ gì,...

- National Flags: show nationality of a vessel

Đăng ký ở cảng của nước nào thì có nationality của nước đó
 2.1 Characterstics of Merchant ships
c) Flag
The country in which a ship is registered is called
its flag state
Responsibility of flag state:
cờ hiệu
• gives the ship the right to fly its civil ensign
• exercises regulatory control over the vessel
• is required to inspect the ship regularly, certify
the ship's equipment and crew
• issue safety and pollution prevention
documents.
🡪A ship operates under the laws of its flag state
 2.1 Characterstics of Merchant ships
c) Flag
2 methods to fly a flag:
- Conventional Flag: country of beneficial
ownership = nationality of the ship 🡪normal
cờ phương tiện

- Flag of convenience: country of beneficial

ownership ≠ country of the flag the vessel is
flying 🡪abnormal
 2.1 Characterstics of Merchant ships
c) Flag – Open registry
Ship-owner Country with open registry
• tax avoidance developing < developed• Money!!!
most important things (US: 40% >< Panama: 20%)
• the ability to avoid national
labor and environmental
regulations the US
• the ability to hire crews
from lower-wage countries
• lowers registration and
maintenance costs
• political reasons (Russia, North Korea)

Homework: Why can't Vietnam welcome so many vessels depsite low tax? -> Tàu Vietnam
trong black/gray list, tàu Vietnam dễ bị suspected
2.1 Characterstics of Merchant ships
d) Dimension of Vessel
• Length (m, ft) (1foot = 0,3048m)
+ Length over all (LOA): The overall length of the
ship, in feet, is measured from the foremost
part of the stem to the aftermost part of the
stern, including any fixed projections can't be changed
extending beyond the stem and stern.
+ Length Between Perpendiculars: The length of
a vessel along the waterline from the forward
surface of the stem to the after surface of the
sternpost =>
depends on the number of cargo that the vessel carries - tỉ lệ thuận
còn yếu tố nào nữa ko
Length of vessel
2.1 Characterstics of Merchant ships
d) Dimension of Vessel
• Beam/Width (meters)
Breadth Extreme (BE): It is the greatest distance
between the two sides of the ship at the
greatest width.
2.1 Characterstics of Merchant ships
e) Draught/Draft
The vertical distance between the waterline
and the bottom of the hull (keel),
 2.1 Characterstics of Merchant ships
e) Draught/Draft mớn nước, changeable dimension

• Determines the minimum depth of water a ship or boat

can safely navigate trong ngày hàng hải ko nói là ship arrives at the port =>
• Variations of draft: vessel calls the port
+ Weight of cargo
+ Seasons winter: tàu nổi hơn, summer: tàu chìm hơn
+ Navigation area fresh water: tàu chìm hơn, sea water: tàu nổi hơn
• 2mớntypes
nước tối thiểu
no cargo
+ Light draft: the draft of a vessel at its light displacement
+ Loaded draft: fully loaded in summer but always afloat
mớn nước tối đa: khi tàu chở đầy hàng vào mùa hè
 Plimsoll line
in các vạch này lên tàu

TF

F
T

TF – tropical fresh vùng biển nhiệt đới nước ngọt S

F – fresh
T – tropical W
S – summer
W – winter WNA
WNA – winter North Atlantic
Tại sao phải in vạch này lên khi đã có những phương pháp cân hiện đại? => Because the draft
depends on many things, ko thể chỉ dựa vào lượng cân được
2.1 Characterstics of Merchant ships
f) Displacement Tonnage
Lượng giãn nước: là trọng lượng của nước bị tàu chiếm chỗ

Displacement Tonnage = the weight amount of the

mass of water which is displaced by the vessel's
hull while floating
the actual weight of a vessel.
Generally expressed Long Ton (= 2.240 Lbs = 1.016
kg) khi thuê tàu không cần biết weight của vessel => cần biết
capacity, nhưng trước mắt thì cần biết displacement tonnage
Formula:
M: volume of water (C.ft)
D: Displacement
M (C.ft)
D = ------------
35
2.1 Characterstics of Merchant ships
f) Displacement Tonnage
• Light Displacement: weight of the vessel together with
the weight of a normal crew and adequate supplies.
thân xác con tàu
+ hull, machinery khoang cố định nước để vận hành nồi hơi
+ weight of permanent ballast and water used to operate
steam machinery những cái tối thiểu để tàu hoạt động được
+ crews and their luggage
• Heavy/Loaded displacement =
+ LD Light Displacement
+ passengers, fuel, water, stores, dunnage
+ Cargo
🡪 Bring the ship to the loaded draft
2.1 Characterstics of Merchant ships
g) Vessel capacity (long ton)
tải trọng của tàu
+ Deadweight Capacity – DWC: A vessel's lifting
capacity, or the number of tons that a vessel will lift
(Dead Weight Tonnage DWT)
DWC = HD – LD
tàu chở được bao nhiêu hàng
+ Deadweight Cargo Capacity – DWCC: (net
deadweight tonnage of a vessel) only expresses how
much pure cargo can be loaded, without provisions,
lubricant and fuels for the vessel.
DWCC = DWC - passengers, fuel, water, stores, dunnage
2.1 Characterstics of Merchant ships
h) Register Tonnage tuy là tonnage nhưng mà nói về thể tích

• Unit: m3, C.ft, RT (1 RT = 100 C.ft = 2,83 m3)

• Gross Register Tonnage – GRT: represents the
total internal volume of a vessel
• Net Register Tonnage – NRT: represents the
volume of the ship available for transporting
cargo
NRT = GRT - the volume of spaces that will not
hold cargo (e.g., engine compartment, helm
station, crew spaces)
2.1 Characterstics of Merchant ships
i) Cargo Space- CS
+ Measurement of vessel
dung tích chứa hàng bao kiện, không thể lấp đầy hình dáng của hầm hàng
+ Bale Space, Bale Capacity – BS: a measurement of
capacity for cargo in bales, on pallets, etc., where
the cargo does not conform to the shape of the
ship.
BS = L x W x H (hatch)
dung tích chứa hàng rời
+ Grain Space, Grain Capacity = 105-110% BS
measurement of capacity for cargo like grain,
where the cargo flows to conform to the shape of
the ship
2.1 Characterstics of Merchant ships
i) Coefficient of Loading - CL
• Measurement of vessel

• Coefficient of Loading - CL:

CS (m3/Cf)
CL = -------------------------
DWCC (long ton)
+ Bale Coefficient of Loading
+ Grain Coefficient of Loading
2.1 Characterstics of Merchant ships
i) Stowage Factor of Cargo
• is the ratio of weight to stowage space required under
normal conditions.
• It indicates how many cubic meters/cubic feet one metric
ton of a particular type of cargo occupies in a hold, taking
account of unavoidable stowage losses in the means of
transport
• Unit: (m3/t) or Cu ft/t
+ SF < 40 C.ft 🡪Deadweight Cargo
+ SF> 40 C.ft 🡪Measurement Cargo
+ SF < CL ?
+ SF>CL ?
 2.1 Characterstics of Merchant ships
j) Class of ship cấp hạng của tàu

• A ship class is a group of ships of a similar design.

• Issued by Register Shipping Organizations
+ Lloyd’s Register of Shipping, London - Anh;
+ American Bureau of Shipping, New York - Mỹ;
+ Bureau Viritas, Paris - Pháp;
+ Norske Veritas, Oslo - Nauy;
+ Germanischer Lloyd, Berlin - Đức;
+ Korean Register of Shipping...
- M/V PACIFIC: Motor Vessel PACIFIC - tàu tên PACIFIC
- Hoàn thành đóng tàu năm 1989 - tàu 2 hầm đa dụng (tween: tàu có 2 hầm hàng, 1 cái luôn dưới mực
nước biển, cái còn lại thì chưa biết), DWT (Deadweight Tonnage - tải trọng),
SSW (summer salt water) - mớn nước là 9.07 ft
- LOA (Length Over All), BM (Beam), MTR (metres), CCS (China Classification Society)
- GT (Gross Tonnage), NT (Net Tonnage), HO (hold), HA (hatch) - HO & HA là hầm và nắp hầm,
Derrick (cần cẩu) -> 4 cần cẩu 15 tấn
- CBM (cubic metre), TW (Tween water), LW (Lower water)
- ADA WOG: All details about without guarantee
II. Infrastructure of Maritime Transport
2.Ship/vessel
2.2 Classification of Merchant Ships
• Uses
• Size
• Trading route
• Trading service
 The main cargo-carrying ship types currently in use
in the world merchant fleet
Cargo ships
Marine service vessel

liners Bulk carriers tankers specialized

Panamax vessel is the largest size of the vessel that can transit the Panama Canal

- Container - capesize -Ore carrier

ship -Panamax - VLCC -Vehicle carrier
- RO –ROroll-on/roll-off -Handy -Suezmax -Cement carrier
-Multipurpose -Minibulker -Panamax -LPG carrier
-Barge carrier -Open bulker -Product tanker -Refrigerated
vessel -Combined -Parcel tanker carrier
- Tweedecker carrier -Heavy lift
2.Ship/vessel
2.2 Classification of Merchant Ships
a) Basing on uses
• Dry cargo ships
– General cargo ship - Container ship $$
- Bulk carrier $$ - Lighter Aboard ship$$
- Combined ship - Reefer $$
• Tankers $$
- Oil tanker
- Liquefied Natural Gas Carrier-LNG$$
- Liquefied Petroleum Gas Carrier – LPG)
- Other liquid cargo: wine, chemicals…
2.Ship/vessel
2.2 Classification of Merchant Ships
b) Basing on Size
• Tankers
+ Ultra Large Crude Carrier – ULCC: >300.000 DWT
+ Very Large Crude Carrier – VLCC: 150.000-299.999 DWT.
+ Suezmax: 100.000 – 149.999 DWT.
+ Aframax: 50.000 – 99.999 DWT
• Dry Cargo Ship
+ Cape-size: >80.000 DWT
+ Panamax: 50.000 – 79.999 DWT
+ Handymax: 35.000 – 49.999 DWT
+ Hand-size: 20.000 – 34.999 DWT
2.Ship/vessel
2.2 Classification of Merchant Ships
c) Trading route
• Domestic
• International
d) Trading services
• Liner
• Tramp
2.Ship/vessel
2.3 World fleet

Presentation 2
 III. Modes of Ship Employment - Liner: giống xe bus

1. Liner shipping services - Tramping: có nhiều hàng và muốn hire a whole

vessel -> dùng tramping

- Ship owner (người mua và sở hữu tàu) -> Bareboat charterer (thuê lại, vd: thuê 10 năm, thuê về đi đặt tên lại cũng
được), hợp đồng gọi là Bareboat Charter Party contract -> Time Charterer (thuê lại, vd: thuê lại cỡ 6 tháng), hợp

1.1. Definition đồng Time C/P contract -> Voyage Charterer (thuê để chuyển hàng, hợp đồng Voyage C/P contract) => mấy cái này
thuộc phạm vi của Tramping, có thể skip, ship owner cho voyage thuê vẫn dc, gọi là Voyage C/P contract, thường
voyage chở aw materials, very often in bulk such as iron ore, grain, coal, and oil, chở những giàn khoan, những món
hàng không thể tháo rời

A liner service is a fleet of ships which provide a

fixed service, at regular interval between named
ports with published dates of calls at the
- Ship owner, bareboat & time charterer có thể operate theo kiểu liner được
advertised ports..
- Example : The UK/NWC continent service of MSC
which has a fixed weekly schedule: South African
ports of Durban🡪Cape Town 🡪Port Elizabeth
🡪Felixstowe🡪Antwerp🡪 Hamburg🡪Le Havre
🡪Rotterdam..
- Liner thường hay chở hàng bách hóa (general cargo), processed goods (giày dép, bàn ghế,...) vì lượng hàng ko quá lớn để thuê nguyên con tàu
III. Modes of Ship Employment
1. Liner shipping services
1.1. Definition (cont)
- A fixed itinerary kế hoạch hành trình
- regular service
- the obligation to accept cargo from all conners
and to sail, whether filled or not, on the date
fixed by a published schedule
1. Liner shipping services
1.2 Feartures
- General cargo ship, container ships… with high
speed (20-24 knot) high speed compared to tramping
- Special design to carry wide range of goods in
variety of holds, chở
deep tanks, cold rooms…
nhiều loại hàng khác nhau nên phải có special designs để đáp ứng
- Relationship between shipper and carrier is
governed by Bill of Lading (carrier)B/L ko phải contract, chỉ có chữ ký của 1 party

- Shipping terms and conditions is non-negotiable

and printed on B/L shipper cannot negotiate but have to follow all T&C printed on B/L
- Loading and unloading charges included in freight
 1. Liner shipping services
1.2 Characteristics
• When vessels are operated under liner terms the
applicable freight rates are normally those that
are negotiated and decided by the Liner
Conferences.
• The conferences publish the schedule of freight
rates and conditions for carriage. These freight
rates remain in force for long periods and have
provisions of adjustments e.g. surcharge for fuel
prices, undue delays in some ports etc.
• Tariff: = F + I + O + S (T)
In Out S: Stowage (normally applied for bale cargo), chi phí xếp hàng
T: Trimming (normally applied for grain cargo), chi phí san, cào hàng
Với liner ko thể đòi bỏ phí I, O, S (T) ra được vì ko được tự làm mấy cái đó on board the vessel
=> Shipper: why can't shippers be allowed to load/unload cargo?
 Questions
1. Pros and cons of liner shipping service?

2. When should shipper use liner service?

 1. Liner shipping services
1.3 Booking procedures

6
Shipper Ship owner
5
1 3 Homework: search for
booking confirmation, read

4 2 and understand

Broker
Vì ko có contract nên B/L rất quan trọng
maybe the forwarder
1. Shipper asks brokers
2. Brokers send out ship booking
3. Ship owners send back booking confirmation
4. Brokers forward booking confirmation => shipper
5. Shipper put goods into containers => deliver cargo to the ship owners
6. After the goods đã tới nơi, shipper will receive a receipt -> B/L
1. Liner shipping services
1.4.Bill of Lading
1.4.1. Definition
A document signed by a carrier (a transporter of
goods) or the carrier's representative and
issued to a consignor (the shipper of goods)
that evidences the receipt of goods for
shipment to a specified designation and
person.
 Parties

(1)Goods
Carrier Shipper
(2) B/L
(5)
(6)G

B/L

L
B/
ood

Consignee

(3)
s

- Khi nhận dc hàng, carrier gửi a set of B/Ls (3 originals +

(4) B/L 3 copies) cho shipper, sau đó shipper sẽ gửi at least 1 B/L
cho consignee, nhưng thường consignee sẽ đòi cả 3 bản
để đề phòng shipper do nothing wrong to cargo
ownership
- Consignee sẽ trình B/L cho carrier để nhận hàng, tuy
Endorsee nhiên 1 khi đã submit B/L để nhận hàng 1 lần thì các B/L
khác sẽ vô hiệu trong việc nhận hàng (vẫn có thể dùng
người khác nhận hàng chứ ko phải consignee cho các mục đích khác: custom,...
(reseliing to another party), thì endorse cho endorsee, - Carrier giữ tờ B/L dc nhận như minh chứng họ đã hoàn
endorsee cầm B/L tới nhận hàng thành nhiệm vụ
 B/L APM-SAIGON SHIPPING COMPANY:
- Who issued the B/L? -> Agent(s) for the carrier - MAERSK

1.4.Bill of Lading - B/L cần có gì? - Thông tin Shipper, Consignee, Cargo, nếu tình trạng cargo lúc
nhận để giao tốt thì im lặng ko nói gì, nếu ko tốt thì note vào
- Evidence of the contract of carriage: before B/L => must be an agreement
(booking confirmation) between about transporting

1.4.2. Functions
Three functions
A bill of lading is:

•a receipt for goods shipped (or received)

•evidence of the contract of carriage
•a document of title cóai làquyền
người nắm giữ vận đơn hợp pháp (lawful holder of B/L) đều
sở hữu hàng hóa. Shipper là lawful holder of B/L,
nhưng sau khi chuyển B/L cho consignee thì consignee mới là
chủ sở hữu của hàng hóa
Receipt
Information
A bill of lading must –on the shipper’s demand
–show:
•leading marks
•the number of packages or quantity or weight
•the condition of the goods
TheHague/Visby Rules ArticleIII, rule3
Receipt
Strength of Evidence

Information in a bill of lading is

•prima facie evidence in the hands of the
shipper
•conclusive evidence in the hands of a third
party acting in good faith
 Bills of Lading

Bills of lading conclusive when negotiated

(transferred)TheHague/Visby Rules ArticleIII, rule4

Conclusi
Carrier ve
evidence
Prima
facie
evidenc B/L B/L
e

Shipper B/L consignee

transfer
55
Receipt
LeadingMarks
Leading marks must only be included in the bill
of lading
•if necessary for identification of the goods; and
•if stamped or otherwise shown clearly on the
goods and ordinarily will remain legible until
the end of the voyage
Receipt
Quantity
The carrier is entitled to decide how to describe
the quantity of the goods, ie
•number of packages or pieces; or
•quantity; or
•weight
Receipt
Condition
Condition must only be included in the bill of
lading to the extent
•it is apparent
•from a reasonable outward inspection
Receipt
Relief Clauses

Relief clauses are clauses destroying or lessening

the evidentiary effect of representations, eg
•”shipper’s load and count”
•“said to contain”
•“weight unknown”
Receipt
Relief Clauses

The carrier is entitled to qualify statements or to

leave out information in the bill of lading if
•the shipper has not made a demand; or
•the carrier has included the information he is
obliged to include eg ”500 cases said to weigh
5,000 kgs”; or
•the carrier has reasonable grounds to be suspicious
of information received or has no reasonable
means of checking it, eg in case of a sealed
container
Receipt
OtherInformation
• Inclusion of other information than requriedby
HVR
• An indemnity from the shipper in return for
inclusion of false information in the bill of
lading is unenforceableif the purpose is to
defraud the consignee or an indorsee
Evidence of the Contract
Definition
The bill of lading is not the contract of carriage
itself –it is only evidence of it
• Contract between Seller and Buyer = Sales
Contract
• Contract between Shipper/Consignee and
carrier = contract of carriage
🡪Carrier is not a party of sales contract
Document of Title
Definition
• A bill of lading is a negotiable document of
title, ie it represents the goods and possession
of it, is treated as equivalent to possession of
the goods covered by it
Document of Title
Purposes
Three purposes as a document of title:
•The holder can transfer ownership of the goods
by indorsing the bill of lading
•The bill of lading can be used as security for a
debt
•The holder is entitled to take delivery of the
goods
 Document of Title
Transfer of Ownership
Indorsement and delivery of the bill of lading transfers
ownership in the goods if
•the bill is transferable on its face
•the goods are in transit at the time of indorsement
•the bill was initiated by a person with good title
•the indorsementis accompanied by an intention to
transfer the ownership
Document of Title
Financing
(2) Request to open credit
Buyer/consignee Buyer’s bank
(7) B/L

(6) Payment
(9) Goods
(8) B/L

(1)

(5) B/L
Sal
es
Con
tra
ct
(3) Goods
Carrier Seller/shipper
(4) B/L
Document of Title
Financing
Before making any advances the bank will check eg
•the description of the goods in the bill of lading
matches information in the contract of sale
•it is a clean bill of lading
•the date of shipment is within a certain period
•it is a shipped or received for shipment bill of
lading
•there are one or more bills of lading in a set
Document of Title
Title to Sue the Carrier
A lawful holder of the bill of lading has title to
sue the carrier
A lawful holder is a person in goodfaith who is
•identified in the bill as the consignee; or
•an indorsee of the bill
 Review questions
What are the using purpose of a BL?
• From shipper’s side
• From carrier’s side
• From consignee’s side
 Shipper’s side
Using a BL for:
• Evidence of finishing the delivery of cargo to
consignee via carrier
• Showing apparent condition of goods
• Forming a set of payment document to
present to the bank
 Consignee’s side
• Presentation of BL for cargo withdrawal
• Checking quantity of cargo delivered
• Mortgaging, transferring ownership
• Claiming document
• Finishing the import-export procedures
Why happened if consignee's in urgent need of cash? -> có thể đem B/L ra ngân hàng cầm cố để vay
tiền, tùy vào giá trị cargo mà NH cho mượn tiền
 Carrier’s side
• Issue to shipper
• Delivery goods to consignee against
presentation of B/L
 1.4.Bill of Lading
1.4.3. Classification of BL
a) Cargo receipt
• Shipped B/L: A bill of lading which records
receipt of the goods by the carrier at the time
they are loaded onto the carrying vessel.
Eg: shipped, shipped on board,…with date.
• Received for shipment B/L: A bill of lading which
records receipt of the goods by the carrier at a
time prior to that at which they are loaded onto
the carrying vessel.
🡪how to change to “shipped B/L” bring to office and ask for stamp "on board"
Consignee prefers shipped B/L => be sure when goods shipped on board
1.4.Bill of Lading
1.4.3. Classification of BL
b) Negotiability look at the consignee box để check là loại nào

• Straight BL
• Order BL
• Bearer BL
 Straight B/L
• This type of bill states that the goods are
consigned to a specified person and it is
non-negotiable B/L
• A bill of lading providing for the delivery of the
goods to a named person
• Consignee: MACHINO IMPORT HANOI
No8 TRANG THI ST, HANOI
- Only the consignee has the right to receive cargo at the destination
- Cannot transfer the ownership of cargo by transferring B/L
 Order bill of lading
A bill of lading which names a consignee “To the
Order of”
dùng cái này khi nghi ngờ về khả năng thanh toán của người
• To order of shipper mua, nếu người mua ko thanh toán được thì có thể bán lại cho
người khác và chuyển nhượng ngay chính trên bộ vận đơn này
• To order of consignee very popular in practice
• To order of a bank vừa có quyển sở hữu vừa có quyền chuyển
nhượng cho người khác bằng cách "
indorsing", có thể ký hậu để chuyển nhượng
• To order owner of the cargo)
= to order of the shipper (original
cho người khác đi lấy hàng

This bill of lading must be indorsed by the

consignee, by signing the reverse of the bill, when
it transfers the document to a third party.
To order of a bank - the story behind: Maybe the buyer wants to borrow money from the bank, so the bank keeps
the B/L to own the cargo -> nếu buyer ko trả được tiền, bank có thể indorse cái B/L cho người khác để lấy tiền
Order bill of lading
Endorsement
The title to the goods is transferable to another
party by endorsement, usually on the reverse
(back) of the bill of lading (B/L) by the title holder
of the B/L. endorsement is always on the back side of B/L
• Straight endorsement ký hậu đích danh
Eg: delivery to Company A quyền company A sẽ có quyền sở hữu cargo nhưng ko có
transfer B/L

• To Order endorsement keep silent, only sign and stamp

Eg: delivery to the order of Company B can receive cargo and can also
endorse B/L => nếu chuyển cho cty
khác thì lại tiếp tục chuỗi như vậy ->

• Blank endorsement / Bearer endorsement Như v thì how many times can we
make this endorsement? - Bao nhiêu
lần cũng được, hết giấy thì lấy thêm

• To the order of A without recover C Company

Turn B/L into bearer B/L, which belongs to the holder of it
1. Khi nào dùng straight B/L?
- Nhận biết: name in consignee's box/straight endorsement on the back side of a to order B/L
- Phát hành khi nào? -> Khi shipper vẫn còn giữ straight B/L thì shipper vẫn còn quyền

2. Khi nào dùng to order B/L?

- Nhận biết: consignee box - to order.../to order endorsement on the back side\
- Dùng khi

3. Khi nào dùng to bearer B/L?

- Nhận biết: consignee box - to bearer/keep silent, only sign and stamp on the back side
 To Bearer Bill of Lading
A bill of lading, which does not identify a
consignee . When a bearer bill is transferred to
a third party, constructive possession canbe
transferred without the need for indorsement
of the bill.
• Consignee: To Bearer
• Consignee: To order of A, and A has endorsed
B/L with blank.
1.4.Bill of Lading
1.4.3. Classification of BL
c) Remarks on B/L
B/L sạch/hoàn hảo
• Clean B/L:tìnhAtrạng
billbên
ofngoài
lading that notes the loading
của hàng hóa, ko dc mở container
of
goods in apparent good order and condition.
B/L có phê chú say nothing -> normal conditions
• Claused bill of lading - A bill of lading that contains
adverse remarks as to the apparent order and
condition of the goods to which it refers, or a bill
of lading which contains qualifications as to the
weight or quantity of the goods loaded
never pay for claused B/L -> VD: 10000 bao gạo, 1 bao bị ướt -> có trả tiền cho 9999 bao
bình thường còn lại ko? -> Ko, carrier chỉ check apparent condition chứ ko có dc mở bao
gạo ra, ai biết dc mấy bao còn lại có bị gì hay ko
 Dấu hiệu nhận biết loại B/L:
- Ai là người phát hành HBL sẽ trở thành shipper trên MBL

1.4.Bill of Lading - Số kiện hàng trên HBL ít hơn MBL

- Có chữ waybill: thể hiện mqh giữa fwd & agent fwd -> do
not need an original B/L (chức năng qtrong nhất của B/L là
doc of title -> carrier ko có quyển sở hữu hàng hóa ->

1.4.3. Classification of BL dùng waybill thay vì B/L)

Bữa sau lên điền lại sơ đồ, điền tên các bên tham
d) Other types of B/L gia và giải thích: PACTRA và STX cái nào là house
nào là master

• Master B/L B/L used by the actual carrier to the forwarder/consolidater

• HouseB/L : freight forwarder’s bill of lading - A
bill of lading whereby the contractual carrier
will be a freight forwarder, notwithstanding
that this party will play no physical role inthe
B/L issued by forwarder to the actual
actual carriage of the goods. shipper
• Seaway Bill - Consignor ko cần chuyển bản gốc cho consignee, chỉ
cần có copy là dc (gửi bản digital qua mạng,...)
- Ko có to order seaway bill, vì to order thường dùng với
mục đích chuyển nhượng quyền sở hữu

• Surrender Bill - Lợi ích so với B/L:

+ B/L mất thì ko lấy dc hàng & nhiều hậu quả khác
+ B/L có khả năng bị làm giả (cho nên chữ trong B/L mới
nhỏ)
+ B/L mất thời gian gửi và tốn tiền để phát hành hơn, thủ
tục tại destination phức tạp hơn
- Bất lợi: Phát hành seaway bill là đã mất hàng rồi, consignee có thể không cần thanh toán đã có thể đi lấy
hàng rồi, B/L bản gốc muốn có thì rất có thể đã trả tiền rồi -> dùng khi 2 cty có close relationship (công ty mẹ
con, shipment as a gift, sample, master B/L (fwd & agent fwd - no contract & payment) => những mqh k có tiền
tệ
What is the difference between House Bill of Lading, Master Bill of Lading..
House Bill of Lading (HBL) is issued by the NVOCC/Freight Forwarder to the actual customer
Master Bill of Lading (MBL) is issued by the Shipping Line (Carrier) to the NVOCC/Freight Forwarder
– also known as Ocean Bill of Lading
House Bill of Lading will be an EXACT replica of the Master Bill of Lading issued by the
actual Shipping line in respect of cargo details.. The only difference will be that
the shipper, consignee and notify party details will be different in the HBL and MBL..
In the HBL
the Shipper will usually be the actual shipper/exporter of the cargo (or as dictated by the L/C)
the Consignee will usually be the actual receiver/importer of the cargo (or as dictated by the L/C)
the Notify could be the same as Consignee or any other party as dictated by the L/C)
In the MBL
the Shipper will usually be the NVOCC operator or their agent or the Freight Forwarder..
the Consignee will usually be the destination agent or counterpart or office of the NVOCC operator
or the Freight Forwarder
the Notify could be the same as Consignee or any other party..
The rest of the details like vessel/voyage information, cargo description, number of containers, seal
numbers, weight, measurements etc etc will all remain the same..
Unless required otherwise by the L/C, the HBL can also be used as a negotiable document and can
be considered the title of goods and receipt of cargo same as an MBL.. In the interest of the
NVOCC operator and their insurance coverage/exposure, it is recommended that all the details
except the shipper, consignee and notify details on the HBL remain the same on the MBL
Surrender B/L (dùng trong trường hợp sợ thời gian gửi doc sẽ lâu hơn thời gian gửi hàng):
- Shipper sẽ submit cả 3 bản B/L ngay tại origin office của carrier (cảng đi), carrier sẽ có telex release đến
destination office, báo đây là surrender bill và cứ release cargo đi, ko cần trình B/L
- Vì sao phải submit cả 3 bản -> đề phòng shipper gửi thêm B/L cho consignee, consignee đến đòi hàng nhiều hơn
1 lần
 1.4.Bill of Lading
1.4.4. Contents of B/L
Bill of lading - box layout
BL and WB - terms
Mất B/L gốc thì làm sao? -> Phát hành 2 B/L trên 1 đơn hàng là sai, vi phạm B/L gốc, ko làm cái này khi chỉ có
lời hứa của 2 bên
Yêu cầu sự đảm bảo của ngân hàng:
- Ngân hàng yêu cầu có thể giao hàng mà ko cần B/L hoặc yêu cầu cứ phát hành B/L mới đi => có chuyện gì
(consignee cũ tới đòi hàng) thì ngân hàng sẽ thanh toán
- Shipper đưa tiền cho ngân hàng để được đảm bảo (NH lấy 120%) và phong tỏa tài khoản đó => sẽ trả lại số
tiền gốc (100%) khi hết hiệu lực của B/L

=> Cũng tùy, các hãng tàu khó tính sẽ yêu cầu đảm bảo của các NH first class
1. Liner shipping services
1.5. Carrier’s responsibilities according to
international conventions on carriage of
goods by sea
International conventions on carriage of goods by sea
• Hague 1924 Khi đề cập đến carrier's responsibilities sẽ có 3 ý:
- Period of responsibility
• Hague – Visby 1968 - Basis of liability (all cases of risk happening to the cargo
that the carrier would be responsible for)
- Limitation of liability (maximum amount of money that
• Hamburg 1978 carrier has to compensate to the cargo owner in case of lost
and damages

• Rotterdam 2009
 có thể gọi là Brussels 1924

Hague – Visby Rules

• The international convention for the
Unification of Certain Rules of Law Relating to
Bills of Lading, signed in Brussels on 25 Aug
1924 and its additional Protocols of 23
February 1968 and 21 December 1979
• The Convention is reffered to as the “Hague
Rules” and the Protocols as the “Visby Rules”
 Hamburg and Rotterdam Rules
• The United Nations Convention on the
Carriage of Goods by Sea ("Hamburg Rules"),
signed in Hamburg, 31 March 1978.
• The United Nations Convention on Contracts
for the international carriage of Goods wholly
or party by Sea, adopted by the General
Assembly on 11 December 2008 and signed in
Rotterdam on 23 September 2009.
• Rotterdam Convention is not yet in force.
Choice of the relevant conventions
• The three sets of rules, Hague Visby, Hamburg
and Rotterdam, are in principle mutually
exclusive
• The States must choose which one to apply
• The State may file reservations with respect to
the Hague Convention and maintain a
somehow hybrid system
• No reservations are possible in the Hamburg
and Rotterdam Conventions
 Main features of Hague -Visby
• Scope
• General obligations of the carriers
• Reduced liability of the carriers
• General obligations of shippers
• Bill of Lading and burden of proof
• Delivey
• Dispute Resolution
 Hague-Visby Rules: Scope
• Apply to contracts entailing the issuance of a
bill of lading
• They provide for a very soft system of liability
in favour of the carriers. In 1924, international
maritime transportation was always very
hazardous and it was there fore, not fair to
give all responsibility for such transportation
to the carriers.
 Hague-Visby Rules: Scope II
• Apply to bills of lading which are issued in any
of the Contracting States
• Also appy when the carriage is from a port in
Contracting State or when the carriage
contract provide for their applicability of a law
which has integrated them
• Specify in details the general obligations of the
carriers
 Hague-Visby Rules: Scope III
HVR do not apply to carriage of
• live animals
• Cargo carried on deck and stated in the bill of
lading as being carried on deck
Hague-Visby Rules: General obligations
of the carriers

• Period of Liability
• Basis of Liability
• Limit of Liability
Hague-Visby Rules: General obligations
of the carriers
Period of Liability:
From the time when the goods are loaded on to
the time they are discharged from the ship
🡪from tackle to tackle (từ cẩu đến cẩu)
• HVR do not apply to periods of time when the
cargo is carried by land or air under a through
bill of lading or combined transport document
Hague-Visby Rules: General obligations
of the carriers
Basis of Liability
• Carrier are responsible for the loss or damage
of the goods
No responsibility for delay in delivery
• 3 obligations for carriers
+ (1) Make the ship seaworthy làm cho tàu có khả năng di biển
+(2) Care of cargo
+ (3)Issue B/L upon shipper’s request
 (1) Make the ship seaworthy
Seaworthiness
• Definition: A seaworthy ship is a ship
sóng gió thông thường của biển
fit to
meet and undergo the perils of the sea and
other incidental risks to which a ship is
necessarily exposed in the course of a journey
• The ship need not be perfect and fit to
withstand all conceivable hazards–it need only
be reasonable fit for the intended purpose
(1) Seaworthiness
Definition cần mẫn ở mức
hợp lý
The carrier has an obligation to exercise due
diligence to provide a seaworthy ship
Seaworthiness comprises:
• Physical condition of the ship
• Competence of the crew and adequacy of
equipment and supplies
• Cargoworthiness: fitness to receive the
specified cargo chở,
(not all kinds of cargo - tàu phù hợp để chở mặt hàng cụ thể mà nó định
ko cần phù hợp để chở tất cả các loại hàng)
(1) Seaworthiness: Hague-Visby Art III,
rule 1.
Article III
Responsibilities and Liabilities because these conditions cannot be changed
during the voyage
1. The carrier shall be bound, before and at the beginning
of the voyage, to exercise due diligence to
(a) make the ship seaworthy;
(b) properly man, equip and supply the ship;
(c) make the holds, refrigerating and cool chambers, and
all other parts of the ship in which goods are carried,
fit and safe for their reception, carriage and
preservation.
 (2) Care of Cargo: Hague-Visby Art III,
rule 2
Article III
Responsibilities and Liabilities
2. Subject to the provisions of Article IV, the
carrier shall properly and carefully load,
handle, stow, carry, keep, care for and
discharge the goods carried.
 (3) B/L issuance
TheHague/Visby Rules ArticleIII, rule3
 Hague – Visby Rules: Reduced liability
of the carriers
HVR contain a catalogue of 17 exceptions
(a) Nautical fault : act, neglect, or default of the master, mariner,
pilot or the servants of the carrier in the navigation or in the
management of the ship;..\..\..\LTN\Law\Maritime Law -
2006.ZIP unreasonable,
bảo vệ mình
nhưng mà vẫn dc dùng phổ biến nhất thế giới => phải mua insurance để tự

(b) fire, unless caused by the actual fault or privity of the carrier;
(c) perils, dangers and accidents of the sea or other navigable
waters; đá ngầm, băng trôi, địa hình lòng biển
(d) act of God; bão
(e) act of war;
(f) act of public enemies;
(g) arrest or restraint of princes, rulers or people, or seizure
bị bắt theo quy định của pháp luật, vd tàu đang đi thì bị cảng bắt do có
under legal process; lệnh bắt (có thể chưa trả tiền nhiên liệu =)) )
 Nautical Fault
Error in navigation covers negligence in choosing
the route of the ship, resulting in eg
• striking a reef
• Running aground
• a collision with another ship
Error in management of the ship covers
negligence in taking reasonable care of the
ship or some parts of it
 Exceptions (cont)
(h) quarantine restrictions;
(i) act or omission of the shipper or owner of the goods,
his agent or representative; ko lỗi lầm của shipper, ko chỉ dẫn đầy đủ cho carrier (vd
nói cần để nơi thoáng mát, khô ráo)

(j) strikes or lock-outs or stoppage or restraint of labour

from whatever cause, whether partial or general;
(k) riots and civil commotions;
phải đi cứu tàu khác
(l) saving or attempting to save life or property at sea;
nội tì
(m) Inherent Vice: wastage in bulk or weight or any other
loss or damage arising from inherent defect, quality or
vice of the goods; hàng
hao hụt về thể tích, trọng lượng bắt nguồn từ bản chất tự nhiên của
hóa, có dung sai về giới hạn cho phép
 Inherent Vice

This exception covers natural qualities or

defects of the cargo, eg
• Deterioration of perishable goods such as fruit
or fish; and
• Inevitable wastage of bulk cargoes such as oil
or grain
 Exemptions (cont)
(n) insufficiency of packing;
(o) insufficiency or inadequacy of marks;
ẩn tì, cố gắng hợp lý r nhưng ko nhìn ra (khác inherent vice)
(p) latent defects not discoverable by due diligence;
(q) any other cause arising without the actual fault and
privity of the carrier, or without the fault or neglect of
the agents or servants of the carrier, but the burden of
proof shall be on the person claiming the benefit of
this exception to show that neither the actual fault or
privity of the carrier nor the fault or neglect of the
agents or servants of the carrier contributed to the
loss or damage.
có tận 17 exceptions nhưng vài cái vô lý => shipper nên mua insurance để bảo vệ mình
Hague-Visby Rules: General obligations
of the carriers
Limitation of liability
The carrier is entitled to limit his liability to the
highest of the following amounts:
Hague 1924: 100GBP/package or unit
Hague Visby 1968:
với điều kiện là giá trị hàng ko dc ghi trên B/L, nếu được ghi thì phải đền bù theo giá trị được kê khai
B/L ko ghi giá tiền:
- Đã mua bảo hiểm rồi
- Giá trị hàng hóa thấp hơn giá trị phải chịu trách nhiệm - khỏi ghi chi cho mệt =))
 Hague-Visby Rules: Limitation of
Liability
Hague-Visby 1979
• 666.67 SDR per package or unit
• 2 SDR per kilogram weight
The monetary unit referred to in the preceding
sentence corresponds to 65.5 milligrammes of
gold of millesimal fineness 900
If a container is used, the limits are calculated by
reference to the number of packages or units
stated in the bill of lading as packed in the
container
SDR (special drawing right): quyền rút vốn đặc biệt, not a kind of money in practice
State 2 đơn vị (SDR per package/unit) -> can choose between 2
Carrier ko dc mở container nếu ko nói rõ lượng package trong mỗi container => assume there's only 1 => have
to declare
 Hague – Visby Rules: Limitation of
Liability

The carrier is not entitled to limit his liability if

• The nature and value of the cargo has been
declared by the shipper before shipment and
inserted in the bill of lading
Hague – Visby Rules : Burden of Proof
• Burden of proof is on the person claiming the
loss or damage 🡪cargo owner
• Shipper must demonstrate that goods are not
in conformity with the bill of lading
• What carriers should do?

Sắp 100 tuổi rồi nhưng sao vẫn ko thay đổi những điều luật vô lí? -> Công ước sẽ ko có hiệu lực nếu ko có
đủ các nước ký (các nước ký Hamburg rules ko phải chủ tàu)

VN chưa tham gia bất kỳ công ước nào => Về tra luật hàng hải VN 2015 xem thử giống cái nào
 Hague – Visby Rules : Delivery
Notice of Loss or Damage
• Before or upon discharge for apparent
loss/damage
• 3 days maximum if loss or damage is not
apparent
 Hague – Visby Rules : Dispute
Resolution
Time limit for suit:
• One year from the date of delivery or the date at
which the delivery should have taken
• Possible arbitration
• If arbitration cannot be organized within 6 months
from the date of the request for the arbitration,
the jurisdiction of the International Court of
Justice if provided, unless the parties make a
reservation in this regard
 Hamburg Rules: Main Features
• Scope
• General obligations of the carriers
• Reduced liability of the carriers
• General obligations of shippers
• Bill of Lading and burden of proof
• Delivey
• Dispute Resolution
 Hamburg Rules: Scope
• Apply for contract for the carriage of goods by sea
even when no bill of lading is issued
• Also include live animals
• Hamburg rules provide for a somehow stricter
system of liability of the carriers, as compared to
the Hague-Visby rules, including a liability for
delay delivery
• They were requested by developing countries and
they are generally considered to be more
favourable to the customers of the transport
service
Hamburg Rules: General obligations of
the carrier
tuy nhiên ko nhiều B/L dùng Hamburg rules
Period of Responsibility
Article 4. Period of responsibility
1. The responsibility of the carrier for the goods
under this Convention covers the period
during which the carrier is in charge of the
goods at the port of loading, during the
carriage and at the port of discharge.
longer than Hague
Hamburg Rules: General obligations of
the carrier
more cases than Hague

Basis of liability
- Loss
- Damage
- Delay in delivery: Delay in delivery occurs when
the goods have not been delivered at the port of
discharge within the time expressly agreed upon
or, in the absence of such agreement, within the
time which it would be reasonable to require of a
diligent carrier, having regard to the circumstances
of the case.
Hamburg Rules: General obligations of
the carrier
Hamburg rules protect the cargo owner while Hague protect cargo owner

Exemptions:
• No list of exemptions, however, :
• Saving or attempting to save life or property at
sea
• Live animals transport
• Fire due to objective reasons
 Hamburg Rules: General obligations of
the carrier
Limit of Liability
• Loss or damage:
+ 835 SDR/ package or other shipping unit, or
+ 2.5 SDR/ kilogram of gross weight whichever is the higher.
If a container is used, the limits are calculated by reference to
the number of packages or units stated in the bill of lading
as packed in the container
Carrier’s Owned Container: not count
Shipper’s Owned Container: count as one separate shipping
unit vỏ container của shipper mà bị damage thì coi cái đó như 1 kiện hàng và phải đền bù
• Delay:
+ limited to an amount equivalent to 2.5 times the freight
payable for the goods delayed, but not exceeding the total
freight payable
 Hamburg Rules: Burden of Proof
khác với Hague (burden of proof rests on shipper)
có loss/damage - lỗi của carrier
• “Presumed Fault or Neglect” Principle: Burden
of proof rests on carrier (phải chứng minh mình ko có lỗi)
• Loss, damage or delay in delivery happen 🡪
carrier’s fault
• Carriers must demonstrate that:
+ he, his servants or agents took all measures
that could reasonably be required to avoid
the occurrence
+ an exemption cause applies
 Hamburg Rules: Delivery
Notice of Loss or Damage:
+ Apparent loss or damage: 01 working days
+ Not apparent: 15 consecutive days
Notice of Delay: 60 consecutive days after the
day of delivery to the consignee
Hamburg Rules: Dispute Resolution
Time Limit for Suit: 02 years from delivery date or the
date that delivery should have taken place
• Arbitration or Court is upon agreement
• Arbitration or judicial proceedings can take place at:
+ the principal place of business of the defendant or the
habitual residence of the defendant; or
+ the place where the contract was made
+ the port of loading or the port of discharge; or
+ any place designated for that purpose in the arbitration
clause or agreement.
III. Modes of Ship Employment
2. Charter Party
A contract concerning use of a vessel
• Freedom of contract (unlike bills of lading,
which are governed by international
conventions)

• Standard forms
 2. Charter Parties
2.1. Introduction to Charter parties
2.2. Voyage Charter parties
2.3 Time Charter parties
2.1. Introduction to Charter parties
Charter party Types
– Classical types
+ Demise/bareboat charterparties
+ Time charterparties
+ Voyage charterparties
– Hybrid forms
+ Trip charterparties
+ Consecutive voyage charterparties
+ Slot charterparties
 Parties
Shipowner
Bareboat C/P
Bareboat charterer
Time C/P
Time charterer
Voyage C/P
Voyage charterer
Type of Charter parties
2.2. VOYAGE CHARTERPARTIES
2.2. Voyage Charter Party
2.2.1. Definition
• Voyage charter is an engagement of a vessel
for a single voyage between declared ports to
transport full shipload of cargo or a certain
quantity of cargo.
• The ship owner provides for all the ship’s
costs with its crew, expenses for fuel, water,
canal dues, port dues, loading and discharging
expenses etc. in return the charterer pays him
the hire charges for carrying the cargo as per
described or utilised cargo capacity of the
ship.
2.2. Voyage Charter Party
2.2.2. Characteristics
hàng hóa đồng nhất
• Homogeneous bulk cargoes cover a wide range of
commodities (major bulks and minor bulks: grain,
iron ore, coal, bauxite and phosphate; lumber,
paper, steel, bagged fertilizers
• Freedom of contract 2chartererparties are free to agree on any clauses, thay vì liner thì
phải follow carrier

• The freight is paid on per tonne of cargo (DWT)

bases or on lump sum basis.
• Rate can include l, O, S, T or not included khác liner thì loading/unloading đã dc
in the freight
khác với liner: governed by B/L
• Relationship between charterer and shipowner is
governed by C/P
2.2. Voyage Charter Party
2.2.3 Procedures
The shipowner: a Panamax bulk carrier currently on
the voyage from the US Gulf to deliver grain to
Japan, so it will be “open” (available for hire) in
Japan from the anticipated date at which the coal
has been dicharged, say 12 May.
The shipper: A grain trader have 250,000 tons of
grain to transport from Yokohama, Japan to
Tilbury in the UK.
The question is how does the shipper contact the
shipowner?
 2.2. Voyage Charter Party
2.2.3 Procedures
Shipowners have vessels for hire, charterers have cargo to
transport, and the brokers put the deal together.

issue B/L
B/L (7)
5 meet ship owner to finalize contract
Charterer 6 SHIP OWNER
deliver cargo to ship owner
connect
1 2
contact

4 3
BROKER

- Broker in liner: forwarder - in voyage: broker có nhiều thông tin về các vessels đang available
- Main difference with liner: có hợp đồng => lúc này có 2 doc: contract & B/L
- Contract là lời hứa, B/L là thể hiện thực tế việc thực hiện lời hứa (contract có thể state là giao 10kg, nhưng
thực tế giao 9kg thì phạt sau)
- Broker trong liner kiếm lời bằng cách mua rẻ bán đắt, broker trong voyage như môi giới, lấy phí môi 129 giới
 Question!

What are pros and cons of voyage chartering?

2.2. Voyage Charter Party
2.2.4 Standard Forms
• The Standard Forms are recommended without any
obligation of the members. The printed text may be
altered or deleted.
• Standard Form of Charter Party are available for
different purposes:
– General purpose because CP is a very complicated contract
– Fertilizers
– Coal
– Ore
– Wood
– Crude oil & products
– Gas
– Chemicals
2.2. Voyage Charter Party
2.2.4 Standard Forms
• General purposes: GENCON drafted by BIMCO
(The Baltic International Maritime Council)
Uniform General Charter (As revised
1922,1976 and 1994), Code Name “GENCON”
- Specific purposes: NORGRAIN 89
SOVCOAL, POLCOAL, CEMENCO, CUBASUGAR,
EXONVOY, MOBILVOY, SHELLVOY, RUSSWOOD
cái 2 bên đã thỏa thuận với nhau mà ghi lại thui chứ chưa ghi vào hợp đồng, sau này có hợp đồng thì ghi là
mọi điều đã ghi trong fixture note

Fixture Note
• On successful conclusion of negotiations
resulting in fixing of the tonnage, main
features/important conditions of the charter
party are drawn up and incorporated in the
form of a NOTE called Fixture Note .
• Usually it is the Charterer's agents/brokers
who prepare and issue the Fixture and this
confirmation is acceptable to both
ship-charterers and ship-owners pending
formal signing of the charter party agreement.
2.2. Voyage Charter Party
2.2.5. Contents
Voyage charterparties usually contain clauses
about:
• the ship, especially cargo capacity
• the voyage
• the cargo(es)
• freight
• laytime, demurrage and dispatch money
• the effect of ice, war and strikes
 2.2. Voyage Charter Party
2.2.5. Contents
(1) Contracting Parties Clause
- Shipowner/Carrier
- Charterer: Exporter or importer
🡪name, address, tel, fax…
 (2) Vessel Clauses

• Name and descriptions: name, flag, port of

registry, built year, DWT, GT, carrying capacity,
speed…
• Vessel current position:
• Condition of vessel: It is usual for a shipowner
to confirm that a vessel is in a suitable
condition safely and properly to undertake the
contractual voyage.
 Vessel
• M/V PACIFIC
• BUILT 1989, MULTI-PURPOSE TWEEN, DWT:16,579T ON 9.07
SSW,
LOA/BM:144.7/22.3MTR, PANAMA FLAG, CCS CLASS,
GT/NT: 10,451/5,740TON, 4HO/4HA, DERRICK 4X15T,
HATCH SIZE: HO 1. 12X10M, HO 2/3/4. 17.6X12.5M
GRAIN/BALE CAPACITY
HO 1. TW1259/1233CBM LW1757/1843CBM
HO 2. TW2130/2109CBM LW3702/3912CBM
HO 3. TW2142/2121CBM LW3125/3180CBM
HO 4. TW2197/2173CBM LW3788/4130CBM
GRAIN:20,793 CBM BALE:19,906 CBM

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• Rich Queen II
• 105,572 DWT, Tanker, Built 2007
• Owners/Managers are Marubeni Corp., Built at Sumitomo
H.I., Double Hull, Panama Flagged, LR Classed, Length Overall
of 239.00 m., Length Between Perpendiculars of 229.00 m.,
Draught of 14.87 m., Beam of 42.03 m., 89.24 Tonnes per
Centimetre Immersion, Gross Tonnage of 56,172, Sulzer
Engine, Speed of 14.90 kts, Heavy Fuel Oil, Horsepower of
16,315B at ...
• Cargo Capacity of 115,572 cu.m., Segregated Ballast Tanks, 12
Tanks, 3 Pumps with a total Capacity of 7,500 cu.m
• IDENTIFICATION: Aframax Tanker, Call Sign 3EMT, IMO Number
9337418

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 (3) Commodity Clause
• Charterers have to specify in the Charter Party
– The name of the commodity
– The nature of the commodity
– Whether in bulk or bags
– The quantity of cargo including tolerance
limit (+/-) over the stipulated figure. If it is a
fixed quantity then the practice is to state
the quantity 'minimum'/ 'maximum‘.
 (3) Commodity Clause
• The type of cargo may be specified as eg:
✔ a specific type: rice
✔ a specific type with a right to substitute it for
another: rice and/or wheat
✔ a number of alternatives: rice and/or wheat
and/or ABC…
✔ any lawful type
VD FOB, buyer là charterer mua rice của seller, tuy nhiên giữa chừng hợp đồng bị hủy, ko mua gạo nữa, thì nếu
k có hàng hóa backup thì phải hủy hợp đồng, nhưng nếu muốn chuyển từ mua gạo sang mua cái khác thì có
thể ghi là +/- any lawful goods để linh hoạt, nhưng như v thì sẽ phiền cho chủ tàu -> trong fixture note thường
nói là trc x ngày báo cho chủ tàu là tàu chở cái gì
 (3) Commodity Clause
The amount of cargo (quantity) may be specified as:
• a specific amount
• ”about” x units
• x units ”5% more or less”: 12,000 tonnes ±5%
• min x units / max y units
• a ”full and complete cargo”
• a ”full and complete cargo” min x units / max y
units
 CARGO
• CARGO: 15,000 MT +/- 05 PCT MOLOO
PRILLED UREA IN BULK (SF: ABT 52)
• CARGO: 90,000 tonnes +/- 05 PCT MOLOO
CRUDE OIL

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 (4) Laydays/Laycan Clause
• The spread of dates which a vessel is to present
herself at the first (or sole) loading port .
• This spread should be entered in a contract as well
as conditions under which the contract can be
cancelled in the event that the vessel is unable to
meet those dates.
• 2 types:
+specific date: 26TH APRIL 2011
+ a period (promt, promtisimo, spot promt)
LAYCAN 26TH APRIL -06 MAY 2008
• Cancelling date is the last date of the above period
 Questions?
• If vessel comes earlier than required
• If vessel comes on time but cargo is not
available
 (5) Laytime Clause
• Definition: Laytime is the agreed period of time
allowed for loading and discharging the cargo
• The charterer has an obligation to load and
discharge the cargo within the specified Laytime
• Commencement of Laytime
The ship must have become an arrived ship
The ship must in fact be ready to load
A notice of readiness must have been tendered
The Arrived Ship
Berth/Dock/Wharf Charterparties vs
Port Charterparties
• Under a berth/dock/wharf charterparty the
ship has arrived when it has entered the
berth/dock/wharf
• Under a port charterparty the ship has arrived
when it has entered the port’s geographical
and legal area; and is at the charterer’s
immediate and effective disposal
Actual Readiness
Actual readiness to load or discharge:
• physical capability to receive the cargo
• physical fitness to receive the cargo
(cargoworthiness)
• compliance with port health and documentary
requirements
+ Vessel should have been entered through the
Customs.
+ Vessel should be in Free Pratique
Notice of Readiness
Definition: “Notice to the charterer, shipper,
receiver or other person as required by the
charter that the ship has arrived at the port or
berth as the case may be and is ready to load /
discharge”.
A notice of readiness is only valid if tendered
when:
• the ship is an arrived ship; and
• the ship is in fact ready to load
 Notice of Readiness (NOR)
• NOR must be tendered to the proper person
according to the CP
• The master's "Notice of Readiness", for a vessel with
dry bulk cargo, usually states:
"I, . . . . . . . . the Master of the m.v. `. . . . . . .', arrived
at the port of . . . on . . . at ... hours GMT local time,
hereby declare that the above vessel under my
command is ready in all respects to load/discharge a
complete cargo of about . . . metric tons . . . in bulk, in
accordance with all the terms, conditions and
exceptions to the Charterparty entered into on . . . at .
. .“
Gencon 1994 Clause 6(c) Commencement of LAYTIME
Laytime for loading and discharging shall commence at 13.00 hours, if notice of
rea- diness is given up to and including 12.00 hours, and at 06.00 hours next
working day if notice given during office hours after 12.00 hours. Notice of
readiness at loa- ding port to be given to the Shippers named in Box 17 or if not
named, to the Char- terers or their agent named in Box 18. Notice of readiness
at the discharging port to be given to the Receivers or, if not known, to the
Charterers or their agents named in Box 19.
If the loading/discharging berth is not available on the Vessel’s arrival at or off the
port of loading/discharging, the Vessel shall be entitled to give notice of
readiness within ordinary office hours on arrival there, whether in free pratique
or not, whether customs cleared or not. Laytime or time on demurrage shall
then count as if she were in berth and in all respects ready for
loading/discharging provided that the Master warrants that she is in fact ready
in all respects. Time used in moving from the place of waiting to the loading
/discharging berth shall not count as lay- time.
If, after inspection, the Vessel is found not to be ready in all respects to load/dis-
charge time lost after the discovery thereof until the Vessel is again ready to
load/ discharge shall not count as laytime.
Time used before commencement of laytime shall count.
 Laytime
• Laytime may be specified as eg: an obligation to load
”as fast as the ship can receive”
• an obligation to load with ”customary dispatch”
• x days / x ”running” days
• x days ”shex” / x days ”sshex” / x days ”shinc”
• x ”working” days
• x ”weather working” days
• x units per ”weather working” day
• x units per ”hatch” per ”weather working” day
• x units per ”workable hatch” per ”weather working”
day
 Notes
• Definition of day
• Most widely used: WWD
✔ WWDSH Inc. (Sunday, Holiday included)
✔ WWDSHEX (Sunday, Holiday Excepted)
✔ WWDSHEXUU (S, H Excepted Unless Used)
✔ WWDSHEXEU (S,H Excepted Even if Used)
"EXCEPTED" -specified days do not count as laytime
even if loading or discharging is done on them
 • LOADING RATE : 5,000 MT PER WEATHER WORKING DAY
OF 24 CONSECUTIVE HOURS. TIME FROM 1200 HRS ON
FRIDAY TILL 0700 HRS ON SUNDAY NOT TO COUNT AS
LAYTIME EVEN IF USED. IF A LOCAL OR A LEGAL HOLIDAY
PRECEDES WEEK-END, TIME FROM 5.00 P.M. ON THE
PREVIOUS WORKING DAY UNTIL 8.A.M. ON NEXT
WORKING DAY TO BE EXCLUDED AND NO TIME TO COUNT
EVEN IF USED.SUNDAY IS BEING COUNTED AS NORMAL
WORKING DAY.
• DISCHARGE RATE: 2,000 MT PER WWD SATPMSHEX EIU
BASIS OWNERS GUARANTEE VSL GEARS MIN 4 X 15MT TS
CAPACITY

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(6) Demurrage and Dispatch Clause
• If loading or discharging is not completed within the
time specified, the shipowner will be entitled to the
payment of liquidated damage (demurrage) and the
amount per day is specified in the CP
• Demurrage periods are not suspended by obstructions
covered by laytime exceptions (”once on demurrage,
always on demurrage”)
• Dispatch Money: The parties may agree that the
charterer is entitled to dispatch money if he completes
loading or discharging before laytime expires
 How does the carrier calculate the
demurrage, laytime, dispatch in a CP?
• Laytime is 5 WWDSHEEU. The loading time is based on
GENCON model, derrmurage is calculated at $3000/day,
proportion of the day. In statements of facts, there are
informations as below:
• Arrival ship at 9h, Monday 23.11.1998, NOR is tendered at
9h30 day after
• Ship on berth at 9h, Wenesday 25.11.1998
• Start loading at 15h, 25.11.1998
• Finish loading at 9h30, 3.12.1998
• There some hours where the ship can not load:
• 27.11. 1998, rainning 2h
• Calculate the dumurrage or dispatch!
 Time sheet in loading

Statements Allowed ttimes Demurrage

Day, date, hour, minute events D H M D H M

Monday, 23/11/98, 9h Ship arrived - - -

Tuesday, 24/11, 9h30 NOR tendness - 11 -

Wenesday, 25/11: 9h On berth 1 - -
15h Start loading

Thursday, 26/11/98 loading 1 - -

Friday , 27/11, raining2h Loading - 22 -
Saturday, 28/11/98 Loading - 13
Sunday, 29/11/98 loading - -
Monday, 30/11/98 loading - 17

Tusday, 1/12/98 loading - 9 - - 15

Wenesday , 2/12/98 Loading 1 - -
Thursday , 3/12/98, 9h30 finished - 9 30
Total 5 - - 2 - 30
 • Demurrage
• Demurrage at the loading and discharging port is
payable by the Charterers at the rate USD1,500 per day
or pro rata for any part of a day. Demurrage shall fall due
day by day and shall be payable upon receipt of the
Owners' invoice.
• In the event the demurrage is not paid in accordance
with the above, the Owners shall give the Charterers 96
running hours written notice to rectify the failure. If the
demurrage is not paid at the expiration of this time limit
and if the vessel is in or at the loading port, the Owners
are entitled at any time to terminate the Charter Party
and claim damages for any losses caused thereby.

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 (7) Loading/ Discharging Port Clause
• The shipowner has an absolute obligation to
go to the port specified in the charterparty or
nominated by the charterer (strict liability
irrespective of fault)
• The charterer has an obligation to nominate a
safe port
+ a specified port
+ A port from a geographical area
 (7) Loading/ Discharging Port Clause
A safe port/berth
+ Technical: always afloat / safely aground
+ Political:
 (7) Loading and Unloading Expenses
The charterer has an obligation to bring the cargo alongside
the ship within reach of the ship’s tackle and the
shipowner has an obligation to load the cargo (the
”alongside rule”)
These could be considered as extensions of the incoterms
– FIOS: free in out and stowed – free to the ship, with
charterer organizing and paying for stevedoring
– FIOST: free in out stowed and trimmed
– FILO: free in liner out, freight for which shipper pays
loading costs and carrier pays discharge costs
 PUMPING IN AND OUT
The cargo will be pumped into the vessel at the
expense, risk and peril of the Charter, and shall
be pumped out of the vessel, but at the risk and
peril oft he Vessel so far as the Vessel’s
permanent hose connections, where dilvery of
the cargo shall be taken by the Charterer or its
consignee.

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 (8) Freight clause
• Freight rate
• Unit: MT, cubic feet, container
• The quantity on which freight is payable
- On taken quantity (B/L quantity)
- Delivery quantity (ROROC quantity)
• The currency of payment, the time and place of
payment and particulars of the freight beneficiary
are also spelt out
- Prepaid
- To collect
 Dead Freight
Dead freight is the amount of freight lost, and
therefore recoverable by the shipowner from
the charterer as damages if a full and
complete cargo is not loaded in accordance
with the terms of the charter-party.
 (9) Exception Clause
Exception- The rights of contracting parties to
cancel the charter parties in case of events
making its performance virtually impossible
–eg Force Majeure or Acts of God.
 (10) Others
• “Both to blame collision clause”
• General Average
 Both to blame collision clause

1/3 2000 USD 2/3

Ship A Ship B

2000 USD
6000 USD

Cargo A
Damage 6000 USD
2.3 Time charter party
2.4 Bareboat/demise charterparty
 Vietnam Maritime Code 2005
Article 60.- Classification of seaports
Seaports are classified into the following classes:
1. Seaports of class I are extremely important, big
seaports in service of national or inter-regional
socio-economic development;
2. Seaports of class II are important, medium
seaports in service of regional or local
socio-economic development;
3. Seaports of class III are small seaports in service
of enterprises’ operation.
không rõ ràng, như thế nào là important, như thế nào là big
Wharf
 Bulk carrier
Bulk carriers are ships especially designed to
carry loose goods in bulk.
The cargo transported in bulk commonly
includes wood, coal, ore, grain, coke,
fertilizers, cement, light materials, sugar and
sand
Bulkers usually have one deck, with engine room
in the stern and a deckhouse above it
Bulk carrier
MV Rhine Forest –LASH- in the Port of
Rotterdam
LASH system refers to
the practice of loading
barges (lighters)
aboard a larger vessel
for transport
Reefer
 Tankers
Tankers are vessels designed for carrying liquid
cargo such as petroleum and products derived
from it, liquefied gases, chemicals, wine,water
Liquefied Natural Gas Carrier: NorthWest Sanderling
Official No: 853416
Built: 1989.
Length: 272m,
Breath: 47.2m,
Draft: 10.95m,
LNG Capacity : 125,000 cubic metres
 TheHague/Visby Rules
ArticleIII, rule3
After receiving the goods into his charge, the carrier, or the master or agent of the carrier,
shall, on demand of the shipper, issue to the shipper a bill of lading showing among other
things
(a) the leading marks necessary for identification of the goods as the same are furnished in
writing by the shipper before the loading of such goods starts, provided such marks are
stamped or otherwise shown clearly upon the goods if uncovered, or on the cases or
coverings in which such goods are contained, in such a manner as should ordinarily remain
legible until the end of the voyage;
(b) either the number of packages or pieces, or the quantity, or weight, as the case may be,
as furnished in writing by the shipper;
(c) the apparent order and condition of the goods:
Provided that no carrier, master or agent of the carrier shall be bound to state or show in the
bill of lading any marks, number, quantity, or weight which he has reasonable ground for
suspecting not accurately to represent the goods actually received or which he has had no
reasonable means of checking.
TheHague/Visby Rules
ArticleIII, rule4
Such a bill of lading shall be prima facie evidence
of the receipt by the carrier of the goods as
therein described in accordance with
paragraphs 3(a), (b) and (c).
However, proof to the contrary shall not be
admissible when the bill of lading has been
transferred to a third party acting in good
faith.
 Free Pratique
• Official permission from the port health
authorities that the ship is without infectious
disease or plague and the crew is allowed to
make physical contact with shore; otherwise
the ship may be required to wait at quarantine
anchorage for clearance