Chap 1: INTRODUCTION TO INTERNATIONAL BUSINESS AND INTERNATIONAL

TRANSPORT
1. Relation between intl business and intl transportation:
- Change goods and market structures: more access to more diversified products.
- Influence on foreign exchange payment
- Enhance national position in integration process
- Increase the trade between countries
2. Pillars of globalization:
- Specialization
- Trade liberalization
- International transportation
- Technological advances
3. Intl transport system:
- Consist of: road, railways, inland waterways, maritime transport, air.
- Modes of transport: air, rail, ocean, road, container, intl multimodal transport, inland
waterway.
4. Dividing transport responsibilities in intl sales contract:
- Importer vs exporter: depends on Incoterms/ delivery clauses.
- Role of intl transportation:
+ Helps to develop international trade
+ Helps to change types of goods in trading, and market place
+ Helps to balance of payment of a country
- Why fighting for transport responsibility:
+ Gain initiatives in shipping arrangements
+ Make use of domestics carriers to save foreign currency
+ Cases dont want transport responsibility: lack of expertise, war-ridden
locations (riskier), in urgent need of certain types of goods (eg: anti-covid19
vaccines), national laws which dictates that certain goods have to be
transported by their own fleet.
- Right of transport
- Be proactive in organizing transportation:
+ Select suitable mode and mean of transportation
+ Transportation route
+ Transporter
- Be proactive in delivery
- Increase the ability to use domestic flexibility
- Increase foreign exchange earnings, improve trade balance
⇒ in summary: buyer/seller wants to have the right of transportation because:
- They want the control of the goods
- They want to make more profits so they want to have the right to control the risk
- Active in choosing the time to make the delivery
- Transferring the foreign currency into your country
 - Pipeline
+ is the long-distance transportation of a liquid or gas through a
system of pipes - a pipeline - typically to a market area for
consumption
+ Goods: crude and refined petroleum, fuels (oil, natural gas,
biofuels), other fluids for short distances (sewage, slurry, water,
beer, hot water, steam)
+ US has 65%, Russia has 8%, Canada has 3% ⇒ 3 countries
constitutes 75% of all pipelines
*Notes:
●
Incoterms 2020:
○ Terms that seller has to charter the means of transport:
C and D-group
○ Terms that buyer has to charter the means of transport:
E and F-group
○ Terms suitable for sea transport: FAS, FOB, CFR, CIF
○ Terms suitable for multi-modal transport: the remainings
Chap 2: MARITIME TRANSPORT

I. Characteristics of maritime transport:

1. Advantages:
• Low infrastructure
• Large capacity Trade volume (big ships)
• Distance
• Low unit transportation cost
• Good adaptability to cargoes of different sizes, weight, shape…

2. Disadvantages:
• Low speed
• Vulnerable to bad weather
• Less punctional compared with road or air transport
II. Infrastructure:

1. Sea ports:
1.1. Definition:
A land facility designated for reception of personnel or material moved by sea, and
that serves as an authorized port of entrance into or departure from the country in
which located
“Ports are the mouths though which continents speak to others”
1.2. Functions: for vsls and for serving cargoes
• To ensure safety for seagoing vessels entering, operating in and leaving the
seaports
• 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.
1.3. Classifications:
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
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
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
+ Financial indicators:
+ Operational indicators:
→https://unctad.org/system/files/official-document/tdbc4d131sup1rev1_en.pdf
 1.6. Seaport network in Vietnam
> the biggest container port in the world: Port of Shanghai, Rottedam, Singapore,...
(top 10 biggest ports). 6 seaports belong to China.

2. Ship/vessel
2.1. Definition:
Definition of ship: A vessel of considerable size for deep-water navigation
Vietnam Maritime Code/ Article 11: Seagoing vsl are vsls or other moving floating
structures exclusively used for navigation on the sea.
 Definition of merchant ship: a ship operating with commercial purpose
- Characteristics of merchant ships:
a. Name of ship: made by shipowner and is approved in writing by authorized
shipping registry office.
→Vietnam National Register of Ships.
*Note:
Have to choose the Port to register the name (ex: cát Lái Port - Cat Lai register office
→ they check whether other ships have the same name at the Cát Lái port) →
Refuse if this name already has. (vấn đề: port khác không có tên hoa sen nhưng port
này có thì vẫn không được chấp nhận)

b. Port of registry: Place where a ship is registered with the authorities, thereby
establishing its nationality ⇒ show the nationality of a vsl ⇒ carry country of
nationality’s flag.
⇒port of registry decides nationality and the flag.
c. Flag:
-There are 2 different types of flags:
- International Marine Signals Flags to communicate massages
Nautical Flags and their meanings
- National Flags: show nationality of a vessel
-The country in which a ship is registered is called its flag state.
-Responsibility of a flag state:
+ 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.
-Notes: Flag of ship - 2 methods to fly a flag
+ Conventional flag: country of beneficial ownership = nationality of the
ship → normal
+ Flag of convenience: country of beneficial ownership >< country of the
flag the vessel is flying → abnormal.
● Avoiding strict regulations that may exist in a shipowner’s home country
● Getting around strict safety standards that are required by a shipowner’s home
country
● Reducing operating costs
● Avoiding high tax rates - tax avoidance CIT
● Bypassing laws that protect ship workers’ wages and working conditions
- Flag - open registry:
+ Ship-owner: tax avoidance, the ability to avoid national labour and
environmental regulations, the ability to hire crews from lower-wage
countries, lowers registration and maintenance costs, political
reasons.
+ Country with open registry: making profits/ money.
d. Dimension of vessel:
 -
- Length between perpendiculars: change depending on the number of cargo
- Beam/ width (chiều rộng con tàu): Breadth Extreme (BE): It is the greatest
distance between the two sides of the ship at the greatest width.

-
⇒ Length overall is unchangeable >< LPP (Length per perdicular) is changeable due
to water line: tiếp giáp thân tàu với mực nước biển (up to sea level - rise/ go dow)
(LPP sẽ dài hơn trong khu vực nước ngọt hay nước mặn sẽ dài hơn? → nước ngọt
thì tàu sẽ chìm sâu hơn, nước mặn sẽ đưa tàu nổi hơn)

e. Draught/ Draft: vertical distance btw the waterline and the bottom of the hull
(keel)
- Determines the minimum depth of water a ship/ boat can safely navigate.
- Variations of draft:
+ Weight of cargo
+ Seasons
+ Navigation area
 - 2 types:
+ Light draft: the draft of a vsl at its light displacement →The draft
(depth) of a ship when it is not carrying cargo, only its basic equipment
and crew. This represents the minimum water depth required for the
ship to float.
+ Loaded draft: fully loaded in summer but always afloat → The draft of
the ship when it is fully loaded with cargo. This is the maximum depth
the ship sinks into the water when carrying its full load.

-
⇒the bigger the vsl, the bigger the draft.
Draft = 9m ⇒ water line should be more than 9 in order not to be grounded.
Draft depends on seasons (summer: same amount of cargo, draft is higher
than in winter), the number of cargo

-
⇒Plimsoll line, a reference mark located on a ship’s hull that indicates the maximum
safe loading level under various water conditions. ⇒A marking on the hull of a ship that
indicates the maximum safe draft to which a ship can be loaded. It varies depending on the
type of water (e.g., fresh or saltwater) and seasonal conditions (e.g., summer, winter). The
Plimsoll mark helps ensure the ship is not overloaded, maintaining stability and safety at
sea.
*Notes:
TF – Tropical Fresh: Maximum safe load line in fresh water in tropical regions, where the
water density is lower due to higher temperatures.
F – Fresh: Maximum load line for fresh water in general.
T – Tropical: Maximum load line for salt water in tropical regions.
S – Summer: Maximum load line for salt water in summer.
W – Winter: Maximum load line for salt water in winter, as colder temperatures increase
water density.
WNA – Winter North Atlantic: Maximum load line for the Winter North Atlantic, accounting for
rough sea conditions in this area, where ships face greater risks.
⇒different navigation areas: some areas are saltier (river vs sea water). Atlantic Sea
is more salty than any other areas ⇒ draft is lower (phần chìm ít hơn)
- Maximum line that we can load “Loaded draft”. ⇒ “load line” printed on the
vsl.

-
f. Displacement tonnage (tất cả vấn đề liên quan đến trọng lượng)

•Light Displacement: weight of the vessel together with the weight of a normal crew
and adequate supplies.
+ Hull, machinery
+ Weight of permanent ballast and water used to operate steam machinery
+ Crews and their luggage.
•Heavy/Loaded displacement = light displacement + pasengers/ fuel/ water/
dunnage (vật liệu chèn lót cho đỡ va chạm)… + cargo ⇒ bring the ship to the loaded
draft.
 g. Vessel capacity (long ton)
1060 kg
+ Deadweight capacity (a vsl’s lifting capacity, or the number of tons that a vsl
will lift) - DWC = HD - LD
+ Deadweight cargo capacity (net deadweight tonnage of a vsl: only expresses
how much pure cargo can be loaded without provisions, lubricant and fuels
for the vsl) - DWCC: how much pure cargo can be loaded, w/o provisions,
lubricant,..
⇒ tonnes is classified into deadweight and lightweight.
h. Register tonnage (dung tích đăng kí)
● Unit: m3, C.ft, RT (1 RT = 100 C.ft= 2,83 m3)
● Gross Register Tonnage –GRT: total internal volume of a vsl ⇒ “”a measure of a
ship’s overall internal enclosed volume/ space from keel to funnel including cargo
space.”
● Net Register Tonnage –NRT: volume of the ship available for transporting cargo.
⇒ “the total volume of the ship’s cargo spaces”.
NRT = GRT -the volume of spaces that will not hold cargo (e.g., engine compartment,
helm station, crew spaces)
⇒tonnage is classified into: gross tonnage and net tonnage.

i. Cargo space - CS:

- Bale space/ capacity: hàng bao kiện → 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)
- Grain space/ capacity: hàng rời →=105-110%BS measurement of capacity for cargo
like grain, where the cargo flows to conform to the shape of the ship.
- Usable Volume: Bale space is generally smaller than grain space because it
accounts for obstructions, while grain space includes the entire volume regardless of
obstructions.
- Measurement of vsl
j. Coefficient of loading - CL:
 k. Stowage factor of cargo:
- The ratio of weight to stowage space required under normal conditions.
- 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

-
l. Class of ship:
- A ship class is a group of ships of a similar design.
- Issued by Register Shipping Organizations
● Lloyd’s register of shipping - London
● American Bereau of shipping - New York
● Bereau Viritas - Paris
● Norske Veritas - Oslo
● Germanischer Lloyd - Berlin
● Korean register of shipping

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…

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
c) Trading route
•Domestic
•International
d) Trading services
•Liner
•Tramp

2.3.World fleet
III. Modes of ship employment:

1. Liner shipping services:

1.1. Definition:
- 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 advertised ports.
- Eg: The UK/NWC continent service of MSC which has a fixed weekly schedule:
South African ports of Durban → Cape Town → Port Elizabeth…
- The obligation to accept cargo from all connersand to sail, whether filled or not, on
the date fixed by a published schedule
*Notes:
- A shipowner can directly sign a contract with a voyage charterer. In a voyage charter
agreement, the shipowner (or the operator of the vessel) agrees to transport cargo
for the charterer over a specified route and for a defined period
- Same with time charterer between shipowner.
- Can bareboat charterer sign contract with voyage charterer ⇒ YES.
⇒If there’s a request for one voyage only → voyage charter
Bareboat → long time period.
Time charterer → short time.
Carrier → shipowner, bareboat charter,...
- Liner: u have 1 vsl, and operate it REGULARLY. “Just like a bus”
- Voyage: like a “taxi”, just for 1 voyage only.
- When to choose either of them: depends! If limited amount of cargo ⇒ liner. Huge
⇒ charter.
- In VN, we usually need a whole vessel to transport voluminous cargo → charter.
- We focus on voyage chartering and liner!

*Note:
 1.2. Features:
- General cargo ship, container ships… with high speed (20-24 knot)
- Special design to carry wide range of goods in variety of holds, deep tanks,
cold rooms…
- Relationship btw shipper and carrier is governed by B/L.
- Shipping terms and conditions are non-negotiale and printed on B/L.
- Loading and unloading charges included in freights.
- When vsls are operated under liner terms the applicable freight rates are
normally those that are negotiated and decided by 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 eg: surcharge for fuel prices, undue delays in some
ports.
- Tariff= F + I + O +S (T)
- The carrier has the risk
- The shipper pays the freight, insurance for cargoes (if yes)
- Loading/Discharging: inclusive
- The tariff is noticed yearly
- B/L is important
*Note:

FACTORS CHARACTERISTICS

The schedule fixed/regular/on time

Fixed time, fixed POL _ POD: port of loading/discharge

Route fixed/specific/ non-negotiable → cargo follows ship

Number of shippers Many (over than 1000)

Quantity per shipper Small amount

Freight Higher than tramp trade (voyage charter)

Include: loading and unloading, stowage/ trimming
In liner: the carrier in the shipping line always load and unload cargo → freight
already includes transportation cost, loading/ unloading fee and THC (terminal
handling charge)
→ vì nhiều shippers quá nên thằng nào cx load/unload thì loạn port ⇒ rule in
container: FILO
 Wait for cargo No, but there is cut-off time
⇒ cut-off time/closing time: giờ cắt máng của tàu (vd: ETD là 9h sáng nhưng
cut-off time là 17h hôm nay)→ nếu hàng k kịp đến vào giờ này thì hàng của bạn
bị rớt, nghĩa là k được lên tàu

Transport documents B/L (represents for contract)

→ mọi thứ khá là fixed và được publish online ⇒ nên no need for charter party
(since primary reason của contract là để negotiation, mà ở đây thì không
negotiate được gì lắm)
→ với lại BL chỉ 1 trang thôi, còn charter party tầm 40 trang, mà 1 lần đi là cả
ngàn shippers thì kí chừng đó contract là unrealistic
1.3. Booking procedures:
(1)sending a request to book
(2) broker asks shipowner
(3) shipowner sends a booking confirmation to log company.
(4) broker forwards booking confirmation to shipper.
(5) on the date of delivery, shipper delivers goods to shipowner.
(6) shipowner receives the goods, then issues a B/L as an evidence of receipt of
cargo.

-
● Shipper tìm forwarder cho hàng của mình
● Broker tìm được carrier phù hợp thì thỏa thuận đàm phán các kiểu
● Đàm phán xong thì Carrier gửi cho broker Liner booking note
● Broker gửi booking note cho shippier.
● Có booking confirmation rồi thì Shipper nhận thông tin và đi nhận container rỗng về
kho của mình để lấp hàng vào (nếu bạn có đầy hàng, còn bạn không đầy hàng thì
broker là người nhận công rỗng về để lấp hàng từ nhiều shipper) ⇒ đóng, seal ⇒
Đem container ra cảng (khai báo hải quan, inspection các thứ) để xếp nó lên tàu
● ⇒ xếp xong thì nhận BL từ carrier

1.4. Bill of lading:

 - 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.
- Can be carrier or master (captain - thuyền trưởng)
- Def: A document issued by a carrier, or its agent, to the shipper as a contract of
carriage of goods. It is also a receipt for cargo accepted for transportation, and must
be presented for taking delivery at the destination
Notice: kí là “as carrier” or “as Master” or “As agent (only)”
- Functions of B/L - (RED):
+ Receipt for the goods shipped: carrier has received the cargo.

Shipper (from) - consignee (to)

+ Evidence of the contract of carriage: because there’s only signature of carrier
→ cannot constitute a contract! Just evidence of the terms of the contract of
carriage/affreightment but not the actual contract
+ Document of title to the goods ⇒ ownership (means that who is the lawful
holder of B/L = owner of the cargo) có B/L thì được nhận ownership of the
goods - use delivery order DO to receive the goods at the port, ngoài ra thì có
thể resell or transfer the goods, mortgage (cầm cố hàng bằng cách cầm cố
cái B/L)
*Notes:
(1)Hague-Visby rules “receipt - information”

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
(2)The bill of lading is not the contract of carriage itself –it is only evidence of it
(3) 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

- Procedures:
⇒shipper delivers the goods to the carrier → the carrier issues BLs (a set of 3 originals, 3
copies) ⇒shipper will send an original to the consignor (directly or middleman) but in the
end, consignee needs to receive BL (min: 1 original BL, might require all). At destination
port, consignee will bring that to the carrier, who will check whether it is the real BL. If yes,
the carrier will give the cargo to the consignee.
- Consignor needs BL to receive the cargo.
- When consignee presents BL, all the other remaining BL will be invalid. (JUST
release one every time)
- The shipper will not send the BL if he doesnt get the payment. They will not send
directly the BL but it requires the middleman - which is the bank! The bank keeps the
docs + money, check if they meet the requirements or not.

- Role of B/L:
● The B/L is the legal basis governing the relationship between the consignor, the
consignee and the carrier
● B/L is the basis for customs declaration and procedures for import and export of
goods
● The B/L is the basis for receiving the goods and determining the quantity of goods
the seller sends to the buyer and based on that to record books, statistics and track
the seller has or failed to fulfill the obligations as specified in the contract
● The B/L and other documents of the goods constitute the documents used in the
payment of goods
● A B/L is an important document to appeal the insurer or other related person

- Things to look for in B/L

● Who signs on whom’s behalf?
● Owner’s or CHR’s name or logo on front of B/L?
 ● Identity of Carrier/Demise clause on the back of the B/L?
● Is the Owner/Master obliged to sign “clean B/L” as presented?
Shipper: evidence đã giao hàng cho carrier, has fulfilled his responsibility of delivering the
cargo in a normal/ certain condition (if there’s no remarks)
Carrier:
> đã nhận hàng gì của shipper: số lượng bao nhiêu, loại hàng nào, status, condition sao.
>sau khi tới destination: giao hàng nhận lại B/L - evidence để prove đã fulfill responsibility –>
chứng minh được đã giao hàng đến destination cho consignee
Consignee: để present cho carrier => nhận hàng. If there is accident to the cargo, skip to ở
dưới nha.

- Type of B/L
+ Cargo receipt:
● Shipped B/L: A B/L which records receipt of goods by the carrier at the time they are
loaded onto the carrying vsl. →confirms the goods are actually on board the vessel.
Eg: shipped, shipped on board… with date.
● Facilitating earliest financial settlement of the export sale
● Cái ngày ‘date shipped on board” mới quan trọng!!: nên để nhận biết được thì
phải có shipped on board + date

● Received for shipment B/L: a B/L which records receipt of the goods by the carrier at
the time prior to that at which they are loaded onto the carrying vsl.
Eg: Lades on board vsl.
Date of issue: date when BL is printed out → not really care abt this.
+ The word “shipped” does not appear on the B/L. It merely confirms that the
goods have been handed over to the shipowner and are in his custody
+ The buyer under a CIF or CFR contract need not accept such a bill for
ultimate financial settlement through the bank unless provision has been
made in the contract
+ Forwarding agents will invariably avoid handling “received bills” for their
clients unless special circumstances require

⇒how to change to “shipped B/L”: For received for shipment BL, have to wait until loaded on
vsl and then asks for shipped. ⇒bring back to carrier’s office and ask for stamp for shipped
on board with date of loading. →from received to shipped BL.
+ Negotiability - Based on the transfer title of property in the B/L:
● Straight B/L
Straight BL: states that the goods are consigned to a specified person and it is
nonnegotiable B/L.
⇒specify name and address of a company. Only this person can receive cargo at the port +
being the owner of the cargo. Consignee cannot transfer ownership of cargo on BL to
another party by transferring BL.

→Def: is a B/L where the consignee is clearly nominated by name without any qualification
(“to the order of..”, or similar)
The straight B/L is non-negotiable and cannot be issued to transfer title by endorsement
● To order B/L:
 Order BL: which names a consignee “To the Order of”
• To order of shipper: when shipper is not confident about the buyer
• To order of consignee: when the consignee (the buyer or recipient) is trusted, and
the goods are delivered directly to them without conditions. ⇒the one who has his
name as consignee can receive goods, also transfer ownership of cargo.
→”NEGOTIABLE B/L”: transferable to another.
• To order of a bank
• To order ⇒ meaning “to order of shipper” ⇒ shipper chỉ định ai thì là ng đó.
*Notes: →This bill of lading must be endorsed by the consignee, by signing the reverse of
the bill, when it transfers the document to a third party.
⇒To order B/L: ô consignee có tên của bank →When we use L/C: the bank needs submitted
document ⇒ LC is the promise of the bank.

- The title to goods is transferable to another party by endorsement, usually on

the reverse of B/L by the title holder of B/L.
● Straight BL: delivery to company A.
● To order endorsement: delivery to the order of company B
● Blank endorsement: The B/L is signed by the consignor or consignee without
specifying a new consignee. This makes the B/L bearer negotiable, allowing whoever
holds the document to claim the cargo.
● To the order of A without recover C company: A - Thabico, C - Sacombank ⇒ any
issues arising, cannot blame the endorsee but claim damages from original shipper.
*Question: Khi claim damages, cannot claim from the bank but just from the shipper only.
Also, unlimited times of claims - dont know what’s really inside the cargo so it’s not the
bank’s responsibility.

● To bearer B/L
○ Bearer B/L states that delivery will be made to whoever holds the bill
○ Consignee: To Bearer
○ Consignee: To order of A, and A has endorsed B/L with blank.
→risky, not popular at all, used a long time ago when there was not many means of
communication.

+ Based on the notes of the carriers

● Clean (unclaused) B/L
States: “in apparent good order and condition” →has no means or right to open the inside,
just outward appearance.
If this statement is not modified by the shipowner, the bill of lading is regarded as ‘clean’ or
‘unclaused”.
This type is much favored by banks for financial settlement purposes
● Unclean B/L: contains adverse remarks as to the apparent order and condition of
goods to which it refers, or a BL which contains qualification as to the weight or
quantity of goods loaded.
○ Secondhand case
○ Regained case
○ Case weak
○ Repaired case
○ Old case
 ○ Weight unknown
○ Weight not checked
○ Bag torn
○ Case leaking
○ Case wet
○ Case marked by sea water
○ Bags stained

+ B/L in association with a charter party:

○ With the development of combined transport operations, an increasing
volume of both liner cargo trade and bulk cargo shipments will be carried
involving the bill of lading being issued in association with a selected charter
party
○ “Bill of lading to be used with Charter Party"

+ Other types of BL:

Shipper 1,2, ..n ⇒ Forwarder ⇒ Carrier
Shippers consolidated at forwarder, and then to the carrier (issuing BL in return for cargo
from forwarder)
*Master B/L and house B/L (container B/L):
+ BL btw forwarder and carrier = master BL, issued by actual carriers.
+ BL btw shipper and forwarder = house BL, issued by forwarder. ⇒issued following
master BL.
*Notes: forwarder is called contractual/ nominal carrier ⇒ they dont carry goods.
- Master and house BL: House BL is a freight forwarder’s BL - a BL whereby the
contractual carrier will be a freight forwarder, notwithstanding that this party will play
no physical role in actual carriage of goods.
- owner of house BL = shipper of Master BL
*Notes:
- To the shipper, the most useful type of bill of lading is the clean, negotiable ‘through
bill’, as it enables the goods to be forwarded to the point of destination under one
document,
- A House Bill of Lading (HBL) is issued by an NVOCC operator, or a Freight
Forwarder to their customers.
- A Master Bill of Lading (MBL) is issued by the Shipping Line (carrier) to the NVOCC
operator, or freight forwarder
- Trên Master Bill, người gửi hàng là Công ty giao nhận vận tải ở nước xuất khẩu
(không phải là công ty xuất khẩu), còn người nhận hàng là Công ty giao nhận vận tải
ở nước nhập khẩu. Thường 2 công ty giao nhận ở 2 nước có mối quan hệ đại lý,
hoặc công ty mẹ con.
- Trên HB/L, người gửi hàng thường là người xuất khẩu, và người nhận hàng thường
là người nhập khẩu. Trong trường hợp cần thiết, thì có thể thay bằng người được ủy
quyền của những bên đó. Theo đó, lô hàng sẽ giao như sau:
- Nhà xuất khẩu => Công ty giao nhận => Nhà nhập khẩu
https://www.container-transportation.com/phan-biet-house-bill-va-master-bill.html#google_vi
gnette
*Seaway Bill
không dùng cho transaction (k thể transfer title of goods nên k dùng nữa) → chỉ dùng cho
short distance hoặc khi mother company to cty con thôi
⇒no function of document of title. It’s always STRAIGHT sea waybill (cannot be transferred)
⇒risks of traditional BL: cannot retrieve in case of loss.
⇒dont need the original one to take delivery. Hence, no need to print out, or send it to
service company by express. Consignee only needs to present himself and necessary docs
to prove he is the legitimate one.
⇒would be used only in limited cases:
+ Close relationship, company within a corporation with each other, shipment as a gift.
+ Shipper- consignee has an agent relationship. Otherwise, BL will be used in case of
no relationship btw buyer and seller.
*Notes:
- Key Features:
● Non-Negotiable: Ownership of the goods cannot be transferred through the
document.
● Direct Release: The consignee can receive the goods without presenting an original
document.
● Simplifies Process: Ideal for shipments between trusted parties or when speed is
critical.
- Use Cases:
● Shipments within a company or between known business partners.
● Short-distance shipments or low-risk transactions.
● When no financial instrument (e.g., a letter of credit) requires a negotiable B/L.

*Surrender Bill
*Notes:
A Surrender Bill of Lading is a negotiable Bill of Lading that has been surrendered by the
shipper to the carrier, allowing the consignee to receive goods without presenting the original
document.
- Key Features:
● Negotiable to Non-Negotiable: A traditional negotiable B/L is converted into a
non-negotiable document when surrendered.
● Cargo Release Without Original: The carrier issues a “telex release” or confirmation
to allow the consignee to claim goods.
● Proof of Ownership: The surrender confirms that the shipper relinquishes ownership
rights to the goods.
- Use Cases:
● Situations where the original B/L cannot reach the consignee in time.
● Shipments requiring flexibility while maintaining some control over cargo release.
● Used in letter of credit transactions after payment confirmation.

1.5. Carrier’s responsibilities according to intl conventions on carriage of goods by

sea:
International conventions on carriage of goods by sea
• Hague 1924
• Hague – Visby 1968
 • Hamburg 1978
• Rotterdam 2009
a. 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 refered to as the “Hague Rules” and the Protocols as the “Visby Rules”
- Main features:
• Scope
• General obligations of the carriers → main content of all intl convention on sales of
goods
• Reduced liability of the carriers
• General obligations of shippers
• Bill of Lading and burden of proof
• Delivey
• Dispute Resolution
- Obligations of carriers → In any convention, we always talk about three types:
period, basis, limit of liability.
+ Period: state the time period that the carrier is responsible for cargo. Eg: from
the time loaded till the time unloaded.
+ Basis: clarify cases of damages/ risks to the cargo that the carrier will be
responsible for. Eg: carrier responsible in case of: loss/ delay,...
+ Limitation of liability: maximum amount of money that carrier will have to pay
to cargo owner in case of loss/ damages.

b. 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.
- Not in force because not enough countries have signed.
*Comparison based on: carrier’s liability, exception, limitation of liability

Hague (1924) Hague Visby (1968) Hamburg (1978)

Carrier’s →Period: Tackle-to-tackle: Cẩu tới cẩu (kể từ khi cẩu móc vào hàng và gỡ -Port-to-port ⇒ Trong phạm
liability ra khỏi hàng) vi của cảng là phải chịu
→ delay: not stipulated (k có quy định, báo với khách hàng là được) trách nhiệm rồi
→ Notice of change: → delay: phải chịu trách
● Nếu phát hiện lỗi rõ rệt thì CO phải claim ngay lập tức, before or nhiệm 25 x freight
during quá trình xếp dỡ (load/discharge) -Presumed fault: suy đoán
● Nễu lỗi k rõ rệt thì chỉ trong 3 ngày làm việc thì phải claim ngay, hết lỗi
3 ngày thì hết được kiện -Nếu tổn thất rõ rệt thì +1
⇒ TRÁCH NHIỆM BAO GỒM 3 CÁI SAU: ngày
- Due diligence: (mẫn cáng hợp lí) -Nếu tổn thất k rõ rệt thì cho
+ Make the ship seaworthy: tàu đủ khả năng đi biển phép 15 ngày
+ Properly crew
+ Cargo holds are ready : hầm hàng sạch sẽ
 - Commercial: loading/unloading: đảm bảo đk an toàn trong công tác xếp
dỡ
- Issuing B/L: phải xuất B/L

Exception 17 loại exceptions: (đọc website của cô đi huhu) No lists of exception: the
Rơi vào trong những cái này thì carrier được miễn trách carriers have to prove they
(1)Thất trách của thuyền trưởng và thuyền viên ⇒ vì lỗi này thuộc về had taken all measures to
cá nhân thuyền trưởng thuyền viên, còn shipping line thì k cần chịu avoid the damage and
trách nhiệm consequences
(2)Cháy, trừ khi lỗi đó thuộc về carrier (personal fault and privity). Còn ⇒ cộng thêm Fire là ngoại
nếu là do tự nhiên hàng hóa bốc cháy, hay đổ lỗi cho thuyền trưởng lệ
thuyền viên đã k due diligence
(3)Perils of the sea: hiểm họa của biển: đá ngầm, núi lửa, băng trôi,...
(4)Act of God: thế cái này khác với (3) ở chỗ: thiên tai: bão, giông, sét
(đánh làm hàng bị móp méo hoặc bị cháy),...
(5)Act of war: chiến tranh
(6)Act of public enemies: hành động thù địch
(7)Arrest or restraint of princes, rulers or people, or seizure under legal
process
(8)Quarantine restrictions
(9)Act or omission of the shipper or owner of the goods, his agent or
representative
(10) Strikes or lock-outs or stoppage or restraint of labor from
whatever cause, whether partial or general
(11) Riots and civil commotions: bạo động, bạo loạn dân sự (hồi xưa
thôi)
(12) Saving or attempting to save life or property at sea (deviation: đi
chệch đường để cứu hàng cứu tàu, hoặc thả bớt hàng)
(13) damage/wastage arising from inherent defect/vice/quality:
khuyết tật nội tỳ (do bản thân hàng hóa) (but only if the defect is
generally unknown in the industry)
(14) Insufficiency of packaging
(15) Insuffiency of marks?
(16) Latent defects not discoverable by due diligence: ẩn tỳ (khác nội
tỳ: k phải bản chất tự nhiên mà cx k thấy được bẳng mắt thường)
(17) Any other cause …. (dài quá…)

Limitation £100/package cho tất cả *IMF: → 835 SDR/package or

of - 666.67 SDR/package → 2.5 SDR/kg
liabilities **container: not stipulated - 2 SDR/kg
Tính hết (tại chưa có container) *Not IMF: *Container: tính cái vỏ là 1
ra rồi - 10,000 Fr gold/package kiện
chọn cái - 30 Fr gold/kg COC: cont của hãng tàu: vd:
cao hơn 40 cont only
**container: SOC: cont của Ship owners:
- Nếu có list bao nhiêu kiện hàng trong 1 41 cont/cont tại tính luôn
cont thì ngta sẽ đền bù chừng đó kiện cái vỏ nữa là 1 kiện
- Nếu k khai báo gì cả thì ngta sẽ coi như 1
cont = 1 kiện và đền đúng 1 kiện là 666.67
SDR
 1. Hague-Visby (revision of Hague 1924):
- Period of liability
From the time when the goods are loaded on the vsl to the time they are discharged from the
ship
→from tackle to tackle.
HVR do not apply to periods of time when the cargo is carried by land or air under a through
B/L or combined transport documents.
Vd: dung ca air+ ship nhung chi issue 1 document thi HVR hong apply!
- Basis of lia:
+ Carrier are responsible for loss/ damage of the goods
→no responsibility for delay in delivery
+ 3 obligations: make ship seaworthy, care of cargo, issuance of B/L.
a. Seaworthiness:
(1) Make the ship seaworthy
Seaworthiness
• Definition: A seaworthy ship is a ship 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: Hague-Visby Art III, rule 1.

Article III
Responsibilities and Liabilities
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.

Definition
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

b. Cargo-worthiness: fit enough to receive cargo. Eg: dried fish but the vsl also
carries rice → smell is the problem, the solution is to clean.
Article III
Responsibilities and Liabilities
2. Subject to the provisions of Artide I, the carrier shall properly and carefully
load, handle, stow, carry, keep, care for and discharge the goods carried.

→for a certain types of cargoes only, not for all.

Why not during the voyage: no need to provide evidence of seaworthiness during, just
before and at the beginning. Because those elements (like crew members) can change
DURING the voyage!

c. Appoint the request of cargo → B/L issuance: The HVR artIII, rule3
No need to issue B/L UPON the request of the cargo owner.

+ 17 exceptions: carriers wouldnt take responsibility.

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
→ unreasonable, because 100 years ago, the communication btw vsl and shipowner was
much limited, shipowner couldnt control at all →hence the existence.
Those countries of shipowners sign this rule so they dont want to change.
(b) fire, unless caused by the actual fault or privity of the carrier;
(c) perils, dangers and accidents of the sea (eg: icebergs) or other navigable waters;
(d) act of God;
(e) act of war;
(f) act of public enemies;
(g) arrest or restraint of princes, rulers or people, or seizure under legal process;
(h) quarantine restrictions: hạn chế về kiểm dịch, tàu chở đồ sống qua nơi có dịch bệnh thì
con tàu đó đc miễn trách.
(i) act or omission of the shipper or owner of the goods, his agent or representative; →fault
of cargo owner not the carrier.
(j) strikes or lock-outs or stoppage or restraint of labour from whatever cause, whether partial
or general;
(k) riots and civil commotions;
(l) saving or attempting to save life or property at sea;
(m) Inherent Vice (nội tì): wastage in bulk or weight or any other loss or damage arising
from inherent defect, quality or vice of the goods;
(n) insufficiency of packing;
(o) insufficiency or inadequacy of marks;
(p) latent defects (ẩn tì) 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.
- Limitation of lia:
The carrier is entitled to limit to highest of following amounts:
Hague 24: 1000 GBP/ package or unit
HV ‘79:
+ 666.67 SDR per package or unit
+ 2 SDR per kilogram weight (GROSS 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 B/L as packed in the container
*Note: Special Drawing Rights, có nghĩa là Quyền rút vốn đặc biệt.

- 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 B/L.

- ⇒ not free of charge though. Air: take

percentage of declaration as a fee.
- Burden of proof:
+ On the person claiming loss/ damage → cargo owner
+ Shipper must demonstrate goods are not in conformity with B/L.
+ What carriers should do:
• Carriers must demonstrate that:
+ he, his servants or agents took all measures that could reasonably be
required to avoid the occurrence “exercise due diligence”
+ an exemption cause applies

- Notice of Loss or Delay

• Before or upon discharge for apparent loss/damage
• 3 days maximum if loss or damage is not apparent
- Time limit for suit:
• One year from the date of delivery or the date at which the delivery should have
taken ⇒validity period.
• 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

2. Hamburg Rules
• Scope
• General obligations of the carriers
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.
⇒larger period than HVR.
→u deliver the cargo at the port → then belongs to carrier’s responsibility.
Basis of lia:
+ Loss
+ Damage
+ Delay in delivery: occurs when the goods have not been delivered at port of
discharge within the time expressly agreed upon or, in the absence of such
agreement, within the time it would be reasonable to require of a diligent
carrier, having regard to the circumstances of the case.
 →protect cargo owner (not carrier like HVR)
- Exemptions: not many exceptions
• No list of exemptions, however, :
• Saving or attempting to save life or property at sea
• Live animals transport
• Fire due to objective reasons
- Limit of liability: increase more than HVR.
• 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: one container count as one separate shipping unit
• Delay:
+ limited to an amount equivalent to 2.5 times the freight payable for the goods
delayed, but not exceeding the total freight payable
*Notes:
*Container: tính cái vỏ là 1 kiện
- COC: cont của hãng tàu: vd: 40 cont only
- SOC: cont của Ship owners: 41 cont/cont tại tính luôn cái vỏ nữa là 1 kiện

Burden of proof: rest on carriers (not cargo owner in HVR) ⇒ once there’s loss/ damage,
we can understand that it’s carrier’s fault!
• “Presumed Fault or Neglect” Principle: Burden of proof rests on carrier
• 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

• Reduced liability of the carriers

• General obligations of shippers
• Bill of Lading and burden of proof
• 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 ⇒vs 3 days
in HVR - much longer.

• Dispute Resolution: longer

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.

2. Charter Party:
A contract concerning use of a vsl:
+ freedom of contract (unlike B/L, which are governed by intl conventions)
+ standard forms: common and then revise (if needed) to fit our purposes → the procedures
to charter a vsl is complicated, thus we need a model as a guideline ⇒ charter party is the
traditional form to charter a vsl, use it as a reference and avoid any risks.
2.1. Introduction to charter parties:
a. Charter party Types
– Classical types
+ Demise/bareboat charterparties
+ Time charterparties
+ Voyage charterparties
– Hybrid forms
+ Trip charterparties: only 1 voyage (from VN to Singapore weekly/ monthly)
+ Consecutive voyage charterparties
+ Slot charterparties: 2 carriers (APL) offers service from CatLai to Sing but has no vsl
⇒rebook on the vsl of APL

b. Cost allocation
 + Capital: investment cost
+ Operating: manning (crew), insurance (for the vessel - usually last for 1 year and
requires renew), repairs & maintenance, stores & spares and supplies, administration
+ Voyage: fuel, port disbursements, canal & seaway transit costs
⇒Bareboat: owner pays for capital, charterer pays for remaining because they hire for a long
time (~5 years).
Time: charterer only pays for voyage costs, vsl owners pay for capital & operating costs ⇒
because we hire the vsl for a few months, thus they cant hire new crew or the vsl itself.
Voyage: owner has to pay all the costs. But charterer pays the freight.

2.2. Voyage charter party:

2.2.1. Definition:
- Def: 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.
- 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.

2.2.2 Characteristics:
● Homogenous bulk cargoes cover a wide range of commodities (major bulks and
minor bulks: grain,..)
● Freedom of contract
● The freight is paid on per tonne of cargo (DWT) bases or on lump sum basis (thuê
bao)
● Rate can include I, O, S, T or not,
● Relationship btw charter and shipowner is governed by C/P.
*Notes:

Factors Characteristics

The Flexible, depends on cargo owner requirements (port of loading/discharge)

schedule

Route Flexible (cargo owner has the right to request or negotiate the route for the voyage)
 Number of Limited / small/ A few (sometimes only 1 or more at times)
shippers ⇒ they don’t need to have the same port of discharge, they only need to be on the same
route

Quantity per Large (usually: thousands metric tons of cargo)

shippers

Freight Relatively lower than liner service

(trong cước thằng này thì có lúc hoặc có khi không bao gồm phí xếp dỡ, nên có khi nó rẻ
hơn liner service, nhưng nếu không trả luôn thì cargo owner phải tự làm xếp dỡ)
→ Có khi trả cước theo đơn vị tấn $5/MT, or khối $5/CBM (cubic meter meter)
→ nếu bạn đi 1 mình thì bạn trả cho hết cái cước full as if khi tàu được full dung tích
⇒ cước đó gọi là lumpsum freight
Vd: tàu 10k MT, hàng bạn 8k MT, thì phần trả cho 10k MT là lumpsum, cước cho 8k MT
gọi là “Actual freight”, phần trả cho 2k MT là dead freight (cước khống)

Wait for Yes, nhưng chờ nhiu ngày thì tùy vào charter party và ask some organizations to know
cargo how long u should wait

Transport C/P, B/L: we need both of these because:

documents - C/P: in voyage chartering, we don’t have public information like liner → we need to
negotiate: u sign with each other 1-2 month before
- B/L: 3 functions → receipt, evidence of contract, document of title ⇒ different timeline
and functions make B/L crucial

2.2.3. Procedures

⇒need a broker, working for organization + has more information.

→Using a shipbroker streamlines the process, ensuring that both parties are matched
efficiently and that contract terms are optimal and industry-compliant. Direct contact may
also be feasible, but the complexity of the shipping market makes brokerage a common
choice.
BL in charter party will not be as detailed → BL not incorporated terms and conditions ⇒BL
incorporated to charter party.
Who can receive cargo at destination?
Charter contacts broker →2. Broker contacts shipowner → informs result → broker informs
charter → (5***) 2 parties sign the contract → 6 deliver cargo to shipowner → shipowner
issues BL to charter
→2 documents!
*Note:
*In liner service: freight = “tariff”
In chartering: freight = “freight”
*in time charter party + bare boat: freight = “hire”
2.2.4. Standard forms
The standard forms are recommended wo obligation of the members. The printed text may
be altered or deleted.
• Standard Form of Charter Party are available for different purposes:
– General purpose
– Fertilizers
– Coal
– Ore
– Wood
– Crude oil & products
– Gas
– Chemicals
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
(1)Contracting Parties Clause
- Shipowner/Carrier
- Charterer: Exporter or importer name, address, tel, fax…
(2)Vessel clauses: name and descriptions, vsl current position, condition of vsl.
- Fixture note: 2 parties agree before the finalization of contracts → when sign the
contract: “as per the fixture note…” →fixture note is more detailed.
- Type of cargo, list out important things agreed on in the fixture note

(3) Commodity clause: specify in charter party:

+ Name of commodity: not necessarily the same as in sales contract
+ Nature of commodity
+ Whether in bulk or bags
+ Quantity of cargo including tolerance limit (dont indicate at whose option as in
the sales contract but at charterer/ shipper option) over the stipulated figure. If
it is a fixed quantity then the practice is to state the quantity “min”/ “max”
- Charter party: “± X% MOLOO” (More or Less at Owner’s Option), indicating that the
shipowner can load or discharge a bit more or less than the specified amount, usually
within a tolerance range of ±5-10%.
- Sales contract: “± X% MOLCHOP” (More or Less at Charterer’s/Buyer’s Option),
meaning the buyer or seller has discretion within the specified tolerance.
- FOB:
+ Sales contract (buyer- seller): 10k MT +- 5% (at seller’s option)
+ Charter party (charterer - carrier/ shipowner): 10kMT +- 5% (at
charterer’s option)
- Eg: FOB term → buyer charters ⇒ tolerance at charterer’s option
- The type of cargo may be specified as eg:
+ A specific type: rice, rice and/or wheat, any lawful type… ⇒more flexibility as
charter contract is independent from sales so any unforeseen events happen,
thus safer, buyer in danger of breaching.
• CARGO: 15,000 MT +/- 05 PCT MOLOO PRILLED UREA IN BULK (SF: ABT 52)
• CARGO: 90,000 tonnes +/- 05 PCT MOLOO CRUDE OIL
*Notes:
» Description of cargo (dangerous?)
Estimated intake based on draft or cubic capacity
- Dead Weight Cargo Capacity
- Stowage Factor – Vessels Cubic Capacity
- Restrictions in
• load port
• discharge port
 • channels/approaches
• load line zones
• war zones

(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 vsl 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.
Substitution: sister ship
→the period of time vsl has to present.

(5) Laytime clause:

- Def: 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: [3 conditions]
+ The ship must have become an arrived ship: “ship must arrive first”
+ The ship must in fact be ready to load
+ A notice of readiness must have been tendered: send notice to charterer
⇒if charterer delays loading then the loading vsl has to wait.
*(1)The arrived ship: Berth (cầu cảng)/ Dock/ Wharf charterparties vs port charterparties
• Under a berth/dock/wharf charterparty the ship has arrived when it has entered the
berth/dock/wharf → specific case: berth no.1 of CL port.
• 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. Eg: CL port →
⇒2 loại: specify cầu cảng hoặc chung chung.
*(2) actual readiness to load or discharge: “ready-to-load cargo”
+ Physical capability to receive cargo: whether the vsl can operate normally
+ Physical fitness to receive cargo (cargo-worthiness): need to be equipped for frozen
food
+ Compliance with port health and documentary requirements: vsl arrive → customs
clearance, health certificate, documents checked → need to pass all of this check!
⇒vsl should have been entered through the customs
⇒vsl should be in Free Pratique.
(3) Actual 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 in in fact ready to load
- Normally, laytime starts some hours after notice of readiness has been tendered.
→Laytime would start to be counted:
+ Before 12. → 13
+ After 12 → 6 am next day

→If the Notice of Readiness (NOR) is given up to and including 12:00, laytime will
commence at 13:00 on the same day.
*Notes:

- Specification of laytime:

• Definition of day:
⇒- ’DAY’ shall mean a period of twenty-four consecutive hours running from 0000 to 2400
hours. Any part of a day shall be counted pro rate.
 - Running days or consecutive days shall mean days which follow one immediately
after the other.
- “Working days” shall mean days not expressly excluded from laytime.
- “Weather working day” shall mean a working day of 24 consecutive hours except
for any time when weather prevents the loading or discharging of the vessel or would
have prevented it, had work been in progress.

• Most widely used: WWD (weather working day)

- WWDSH Inc. (Sunday, Holiday included): need to unload both days too.
- WWDSHEX (Sunday, Holiday Excepted): if there is Sunday/ Monday, no need.
- WWDSHEXUU (S, H Excepted Unless Used): some charterers may want to unload:
however, if u do unload, still counted in laytime.
- WWDSHEXEU (S,H Excepted Even if Used): i give u 5 days, no need to do it on
Sunday + holiday → even if we do unload, then it will be not be counted in laytime.
- "EXCEPTED" -specified days do not count as laytime even if loading or discharging
is done on them
Eg: 5WWDSHEXEU →loading time: Wed ⇒ continue and skip Sunday and last day is
Monday.
~UU → loading time: Wed ⇒ Sunday is last day to load it ⇒if I decide to load on SUN, then
cant do it on Mon.
⇒EU is more beneficial for charterer.
- Charter party - freedom of contract: free to sign anything, agree on any clauses
- Spend more days than agreed → have to pay demurrage.
*Notes:

*Note: Tendering notice of readiness

The master must advise charterers in writing as soon as his vessel is ready to load or to
discharge.
As ship is ready to load or to discharge as soon as the following conditiond have complied
with:
1. The ship must have arrived at the place of loading or discharging as laid down in the
charter party or as soon as near thereto as she can safely get.
2. The ship must be actually ready to load or to discharge in every respect.

(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
→ “bonus money”
*Notes:
- 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

(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: CL port, Hai Phong port.
+ A port from a geographical area: “any safe port in HCMC”
- A “safe” port/berth:
+ Technical: always afloat/ safely aground “vsl can get grounded sometime in
the day, when the tides come up, vsl can go”
+ Political: no strikes…
⇒the charterer has to nominate/ specify in the contract.
- 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 ~ same as FI
*Note: In liner trade: freight = F + I + O + S/T
But in chartering: we have to decide and negotiate all those expenses.
C/P = F___ (ask the carrier NOT to do sth)
Eg: Freight rate: $1000/MT, FI: not include loading fee.
+ F- free: charterer/ carrier dont need to do anything → FI - not load, FIO - not load +
unload, FIOS - NOT trim/ stow too.
+ Miễn chi phí dỡ hàng (Free out = FO): Khi sử dụng điều kiện bán hàng là nhóm F
(FAS, FOB), người thuê tàu chọn cách này. Khi đó, người mua là người thuê tàu chở
hàng đi và trả phí dỡ hàng. Còn người bán trả phí bốc hàng. → FI: ask carrier
(nominated by buyer) not to load the cargo. (loading is the responsibility of
seller) ⇒hence, decrease the freight.
→There’s a link btw the sales contract and charter party.

(8) Freight clause

• Freight rate
• Unit: MT, cubic feet, container
• The quantity on which freight is payable → how much to pay, depends on “what quantity”
- On taken quantity (B/L quantity) → kieu can find taken quantity on B/L. (“being
loaded on vessel”)
- Delivery quantity (ROROC quantity) (“delivered at destination”)
→different due to the nature of cargo (with moisture or not) which can affect the quantity
• The currency of payment, the time and place of payment and particulars of the freight
beneficiary are also spelt out
- Prepaid: paid at loading port
- Collect: at destination port.
Eg: Freight rate: USD 50 per metric ton including Vietnamese freight tax and VAT and
payable without deduction
- Freight payable to............................
- The freight shall be calculated on the intaken quantity of cargo.
- Prepaid. Freight is to be paid on shipment, it shall be deemed earned and
non-returnable, Vessel and/or cargo lost or not lost. Neither the Owners nor their
agents shall be required to sign or endorse bills of lading showing freight prepaid
unless the freight due to the Owners has actually been paid.
- On delivery.
 (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

*Note: B/L in association with a charter party

- With the development of combined transport operations, an increasing volume of
both liner cargo trade and bulk cargo shipments will be carried involving the B/L
being issued in association with a selected charter party
- “B/L to be used with charter party”