8/27/2022

Trường Đại học Tôn Đức Thắng

Khoa: Quản Trị Kinh Doanh
Bộ Môn: QTKD QT

Môn: International Cargo Transportation and Insurance

Mã môn học: 706022
Giảng viên: Hà Ngọc Minh

706022-Chapter 1-Carriage of Goods by Sea

CHAPTER 1
INTRODUCTION TO SHIPPING

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CONTENTS

LO1: Overview
LO2: Technical basis for maritime transport
LO3: Common transport documents
LO4: Law application for bill of lading

706022-Chapter 1-Carriage of Goods by Sea

LO 1

Transportation

• Change of location  adds to the value of the goods

transported
• Entailed by the process of commodity circulation 
produces a useful effect
transportation as a service may be consumed
directly
 transportation as a branch of industrial capital

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Main Freight Modal Options

Air Truck Rail Maritime Inland / Coastal Pipeline

Package Package Unit Train Break-bulk River/Sea Pipeline

Freighter Oil
Less than truckload (LTL) Carload Liquid bulk Tow
Bellyhold Gas
Boxcar Tank barge
Truckload (TL) RoRo
Water

Heavy Tank car Deck barge

Dry van Dry bulk
Flat car Hopper barge

Tank
Reefer Container
Flatbet Container
Hopper
Curtainside
Gondola
Reefer ISO Container

Hopper Intermodal Reefer

Open top
TOFC Flatrack

Chassis Tank
Domestic
706022-Chapter 1-Carriage of Goods by Sea

Comparing modes of transport

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Maritime transport and international

trade
Maritime transport  the core of international trade
in merchandises Around 80 % of volume of goods
exchanged in the world are transported via sea
(UNCTAD, 2008)
 Contribute to the division of international labor and
fragmentation in international production processes
Engine of growth that creates wider economic
benefits (maritime business and clusters)
Impact on the balance of payments

706022-Chapter 1-Carriage of Goods by Sea

Trade, GDP and Maritime Trade

(Index 1990 = 100)

Source: UNCTAD, 2017 706022-Chapter 1-Carriage of Goods by Sea 4

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706022-Chapter 1-Carriage of Goods by Sea

Advantages

• Lower cost  1/5-1/6 airfreight, ½-1/3 railway

• Carry all kinds of rather heavy goods the large-scale
shipment and large-sized cargo;
• Container shipping is the world's most carbon-efficient
form of transporting goods – far more so than road or
air transport

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Types of Maritime Cargo

706022-Chapter 1-Carriage of Goods by Sea

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Disadvantages

• SLOWNESS  speeds at sea averaging 15 knots for

bulk ships (26 km/hr), although container: at speeds
above 20 knots (37 km/hr)
• NUMBER OF MOVES  Cargo must be
transshipped many times  delay
• LACK OF FLEXIBILITY
• RISKS OF ACCIDENTS

706022-Chapter 1-Carriage of Goods by Sea

LO 2

Technical basis for maritime transport

 Route
 Sea port and terminal
 Vessel/ship

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Waterway

Geographically, maritime activities can be divided

into two major categories:
 Interior (Fluvial) Waterways
 Maritime route

706022-Chapter 1-Carriage of Goods by Sea

Maritime route

 Corridors of a few kilometers in width are trying

to avoid the discontinuities of land transport by
linking ports, the main elements of the maritime /
land interface  part of a continuum
 A function of obligatory points of passage, which
are strategic places, of physical constraints
(coasts, winds, marine currents, depth, reefs, ice),
and political borders.
maritime routes draw arcs on the earth’s water
surface as intercontinental maritime transportation
tries to follow the great circle distance.
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Types of Maritime Routes

706022-Chapter 1-Carriage of Goods by Sea

End to end service: Feeder

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Three Major Inter-Range Routes Serviced by

Maersk

706022-Chapter 1-Carriage of Goods by Sea

706022-Chapter 1-Carriage of Goods by Sea

AMAX Round-the-World Route, 2005-2007

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706022-Chapter 1-Carriage of Goods by Sea

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Chokepoints

• Primary chokepoints. The most important since

they offer limited cost-effective maritime shipping
alternatives, which would seriously impair global
trade  the Panama Canal, the Suez Canal, the
Strait of Hormuz, and the Strait of Malacca
• Secondary chokepoints. Support maritime routes
that have alternatives but would still involve a
notable detour the Magellan Passage, the Dover
Strait, the Sunda Strait, and the Taiwan Strait.

706022-Chapter 1-Carriage of Goods by Sea

Main Maritime Shipping Routes and

Chokepoints

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The World’s Major Maritime Bottlenecks

706022-Chapter 1-Carriage of Goods by Sea

Artificial waterway: 2 main

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Blockage of the Suez Canal: the risks

• A traffic jam on both entries of the Canal  time

cost
• Trade and supply chain disruptions
• Loss of revenue  GA contribution
• Diversion of dozens of ships

706022-Chapter 1-Carriage of Goods by Sea

Main Routing Alternatives

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Main Routing Alternatives

706022-Chapter 1-Carriage of Goods by Sea

Shipping schedule
(Schedule is subject to change without prior notice)
ETD ETA ETD ETA ETA ETA ETA
CONNECTING
FEEDER VOY OKLAHOM
HCM HKG VESSEL HKG LOS ANGELES TUCSON DALLAS
A

XIN CHANG SHU

ANTIGONI 818/N 22/01 24/01 26/01 09/02 14/02 15/02 17/02
V.78E

AUSTRALIA
824/N 29/01 31/01 CSCL KOBE V.115E 02/02 19/02 24/02 25/02 27/02
STAR

XIN QIN HUANG

MAREN S 11/N 04/02 07/02 09/02 24/02 01/03 02/03 04/03
DAO V.100E

ASIA STAR 24/N 12/02 14/02 XIN PU DONG V.92E 16/02 02/03 07/03 08/03 10/03

AUSTRALIA
825/N 19/02 21/02 XIN NING BO V.144E 23/02 09/03 14/03 15/03 17/03
STAR

XIN CHANG SHU

MAREN S 12/N 26/02 28/02 02/03 16/03 21/03 22/03 24/03
V.80E

ASIA STAR 25/N 05/03 07/03 CSCL KOBE V.117E 09/03 23/03 28/03 29/03 31/03

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What is a Seaport?
Seaport refers to an area enclosing port land and water areas of
which infrastructure facilities are constructed and equipment
necessary for incoming and outgoing ships is installed in order to
load or unload goods, embark or disembark passengers as well as
to render other services. A seaport may include one or two port
terminals. A port terminal includes one or a lot of wharves.
(VN Maritime Code 2015)
Conventionally, a port is defined as a transit area, a gateway
through which goods and people move from and to the sea. It is
a place of contact between the land and maritime space, a node
where ocean and inland transport systems interact, and a place
of convergence for different transportation modes
706022-Chapter 1-Carriage of Goods by Sea

What is a Seaport- Logistics perspective?

A seaport is a logistic and industrial node in global
supply chains with a strong maritime character and a
functional and spatial clustering of activities directly or
indirectly linked to transportation, transformation, and
information processes within global supply chains.

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What is a Seaport?
• The two traditional functions:

706022-Chapter 1-Carriage of Goods by Sea

What is a Seaport?

• The two traditional components:

Services to ships include those performed at the sea
or waterways side (dredging, pilotage,
mooring/unmooring) and the ship/shore interface
(berthing, repair and maintenance, supply, and
bunkering).
Services to cargo can be divided into those
performed at the ship/shore interface (stowing,
loading, discharging) and those entirely performed in
land-side areas such as consolidation, storage, and
distribution.
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Criteria for determination of a seaport?

[Link] a water area thoroughly connecting to a sea.

[Link] natural geographical conditions to meet
requirements relating to construction of a wharf, port
terminal, anchorage area, transhipment area and
navigational channel for the ship to enter, leave and
operate in a safe manner.
[Link] advantages in marine transportation.
[Link] as the center of the traffic network to facilitate
inland freight transport, carriage and transhipment of
exporting and importing goods by sea.
706022-Chapter 1-Carriage of Goods by Sea

Typologies of Seaports

• Geographical attributes  Refers to the main

characteristics of the port site and situation
Seaports
Mainland Ports
• Specialization  Refers to the cargo handled, such
as containers, conventional general cargo, liquid
bulk, dry bulk, or roll-on-roll-off cargo

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Port sites

706022-Chapter 1-Carriage of Goods by Sea

Typologies of Seaports

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Container port

706022-Chapter 1-Carriage of Goods by Sea

Stages in Port Development

Stage 1 Stage 2 Stage 3 Stage 4

Period Up to the mid 19th Mid 19th century to Late 20th century Late 20th century,
century mid 20th century early 21st century
Development Rise in trade Industrialization Globalization Logistics
rationale
Main port function Cargo handling Cargo handling Cargo handling Cargo handling
Storage Storage Storage Storage
Trade Trade Trade Trade
Industrial Industrial Industrial
manufacturing manufacturing manufacturing
Container distribution Container distribution
Logistics control
Dominant cargo General cargo Bulk cargo Containers Containers and
information flows
(supply chain)
Spatial scale Port city Port area Port region Port network

Role of port Nautical services Nautical services Nautical services Nautical services
authority Land and infrastructure Land and Land and
infrastructure infrastructure
Port marketing Port marketing
706022-Chapter 1-Carriage of Goods by Sea Network 20
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706022-Chapter 1-Carriage of Goods by Sea

CẢNG SG KV 1
• Cảng Cát Lái, cảng mở Cát Lái.
• Cảng Cát Lái mở rộng (cảng Tân Cảng - Phú Hữu).
• Cảng Container quốc tế SP-ITC.
• Cầu cảng trang trí Nhà máy sửa chữa và đóng tàu Sài Gòn của Công ty
trách nhiệm hữu hạn Nhà máy sửa chữa và đóng tàu Sài Gòn.
• Địa điểm kiểm tra tại Công ty trách nhiệm hữu hạn Nhà máy sửa chữa và
đóng tàu Sài Gòn (Saigonshipyard).
• Giám sát hàng hóa giao thẳng ngoài các bến phao Bp5, Bp6, Bp7 thuộc
Cảng Cát Lái.
• Địa điểm kiểm tra hàng hóa tập trung Tân Cảng - Hiệp Lực.
• Địa điểm kiểm tra hàng hóa xuất khẩu, nhập khẩu tại nơi sản xuất của Công
ty cổ phần Xi măng Hà Tiên 1.
• Địa điểm tập kết, kiểm tra, giám sát hàng hóa xuất khẩu, nhập khẩu tập
trung tại khu vực cảng Cát Lái của Công ty cổ phần Giang Nam Logistics.
• Các Kho ngoại quan, Kho CFS trong phạm vi cửa khẩu và ngoài cửa khẩu
do Lãnh đạo Cục Hải quan thành phố Hồ Chí Minh giao (có Quyết định
riêng). 21
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CẢNG SGKV 2

• Cảng Khánh Hội, cảng Nhà Rồng.

• Các Kho ngoại quan, Kho CFS trong phạm
vi cửa khẩu và ngoài cửa khẩu do Lãnh đạo
Cục Hải quan TP. Hồ Chí Minh giao (có
Quyết định riêng).

706022-Chapter 1-Carriage of Goods by Sea

CẢNG SGKV 3

• Cảng Tân Thuận, VICT, …

• Các Kho ngoại quan, Kho CFS trong phạm
vi cửa khẩu và ngoài cửa khẩu do Lãnh đạo
Cục Hải quan TP. Hồ Chí Minh giao

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ports (above 10,000 teUs per annum)

Six port Groups and main container

706022-Chapter 1-Carriage of Goods by Sea

Greater HCMC main container terminals

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CẢNG SGKV 4

• ICD Phước Long 1, ICD Phước Long3, ICD Phúc

Long, ICD Transimex, ICD Sotrans, ICD
Tanamexco, cảng thủy nội địa Long Bình.
• Các Kho ngoại quan, Kho CFS, ... trong phạm vi cửa
khẩu và ngoài cửa khẩu do Lãnh đạo Cục Hải quan
TP. Hồ Chí Minh giao.

706022-Chapter 1-Carriage of Goods by Sea

Inland Ports / Dry Ports

Dry port refers to a component of traffic infrastructure

system which plays its role as a center of transportation
activities associated with operations of seaports,
airports and inland ports, rail terminals, land border
gates, and concurrently functions as the port of
departure or arrival of goods transported by sea.

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Characteristics

• An intermodal terminal, either rail or barge, that has

been built or expanded.
• A connection with a port terminal through rail, barge,
or truck services, often through a high capacity
corridor.
• An array of logistical activities supporting and
organizing the freight transited, often co-located with
the intermodal terminal.
706022-Chapter 1-Carriage of Goods by Sea

Inland Ports / Dry Ports-Functions

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Port Terminals

Port terminal refers to an area which is composed of an

area of land and an area of water in a seaport and is used
for constructing wharves, warehouses, storage yards,
facilities, work offices, service establishments, traffic,
communications, electricity and water supply systems,
and an area of water facing against wharves, navigational
channels and other auxiliary facilities. A port terminal
includes one or a lot of wharves.
Container terminal: CY / CFS

706022-Chapter 1-Carriage of Goods by Sea

Container freight station

Located within a container port terminal, adjacent or

in proximity.
Specializied towards outbound or inbound cargo for
consolidation or deconsolidation of containerized
loads

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Types of Port Terminals- 3 main

706022-Chapter 1-Carriage of Goods by Sea

Characteristics of Conventional Break-bulk

Terminals versus Container Terminals
Conventional Container

Small terminal surface Large terminal surface

Direct transshipment possible Indirect transshipment

Limited mechanization and Advanced mechanization and

automation automation

Improvisation in terminal Organization and planning

operations
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Technical Changes in Container Port

Terminals
Standard Container Port Emerging Paradigm

Stacking density 1,000 to 1,200 TEUs per 2,000 to 4,000 TEUs per hectare
hectare
Ship-to-shore gantry About 20-30 movements per About 40-50 movements per hour
crane productivity hour
Daily throughput per 3,000 to 4,000 TEUs 5,000 to 6,000 TEUs
ship
Dwell time at container About 6 days About 3 days
yard

Truck turnaround time About 60 minutes About 30 minutes

Rail access In port area / Near dock On dock

Berthing depth 12 to 15 meters (40 to 50 feet) More than 15 meters (50 feet)
706022-Chapter 1-Carriage of Goods by Sea

Typical Container Terminal

Configurations
Capacity (in Quay Length Number of Yard Area RTGs
TEUs) (meters) Cranes (hectares)
500,000 400 3 8 10
750,000 500 4 10 13
1,000,000 625 5 13 17
1,500,000 875 8 20 25
2,000,000 1,125 10 26 33
3,000,000 1,325 15 40 50
4,000,000 2,125 20 53 67
4,500,000 2,375 22 60 75
5,000,000 2,625 25 66 84
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The Configuration of Container Yards

706022-Chapter 1-Carriage of Goods by Sea

Port Terminal Equipment

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Sea going ship

Ship refers to floating movable means specially

designed for operations at sea merchant ship
Ship referred to in this course shall not include
military ships, official duty ships, fishing ships,
inland watercraft, submarines, submersibles,
hydroplanes, floating warehouses, movable
platforms and floating docks

706022-Chapter 1-Carriage of Goods by Sea

Merchant ship

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Bulk carrier

Tween deck Single deck

706022-Chapter 1-Carriage of Goods by Sea

Bulk carrier

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Bulk carrier

Or bulkers, are ships designed primarily for the

transportation of solid bulk cargoes. Such cargoes are
generally uniform in composition, and are loaded directly
into the cargo space without any intermediate form of
containment
Leading bulk cargoes: iron ore, coal, grain,
bauxite/alumina and phosphate rock, along with
substantial quantities of concentrates, petroleum coke,
steel, ores, cement, sugar, quartz, salt, fertilizers, sulphur,
scrap, aggregates and forest products.

706022-Chapter 1-Carriage of Goods by Sea

Bulk Ship Classes

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Waterways

Malaccamax. Largest vessel that can pass through the Straits of

Malacca (20m draft and 300,000 DWT).
Suezmax. Largest vessel that can pass through the Suez Canal
(24m and 240,000 DWT).
Seawaymax. Largest vessel that can pass through the canal locks
of the St Lawrence Seaway (max LOA: 226m, max draft: 7.92m,
28,500 DWT). This allows for access to the Great Lakes system
deep inside North America.
Dunkirkmax. Largest vessel that can enter the eastern harbor
lock in the port of Dunkirk, France (max LOA: 289m, max beam:
45m, 175,000 DWT). Dunkirk is a major bulk port, particularly for
petroleum products.
Newcastlemax. Largest vessel that can enter the port of
Newcastle in Australia (max beam: 47m, 185,000 DWT). The port
is among the world’s largest exporter of coal.
706022-Chapter 1-Carriage of Goods by Sea

Bulk carriers

Valemax ships. Very large ore carriers (VLOC) with a unit capacity of
380,000 to 400,000 DWT and about 360 meters in length overall (LOA).
The ships are owned or chartered by the mining company Vale (Brazil)
and deployed on the iron ore trade route between Brazil and Europe, and
Asia. In recent years, Chinese shipping companies also started to order
Valemax-type vessels. In 2020, there were already 68 Valemax ships on
the market.
Capesize. Vessels have a capacity of between 90,000 and 200,000 DWT.
A common Capesize vessel size is between 130,000 and 170,000 DWT.
Panamax. A class of bulk carriers having a capacity of 65,000 to 89,999
DWT and meeting the maximum ship dimensions to pass through the old
Panama Canal locks.
Supramax or handymax. Bulk carriers of 40,000 to 64,999 DWT.
Handysize. Smaller bulk carriers of 15,000 to 39,999 DWT.
Mini Bulk Carrier. Ships of 3,000 to 14,999 DWT employed in coastal
trade and to reach ports having a lower draft.
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Oil tanker

Very large and ultra-large crude carriers

(VLCC/ULCC) of more than 200,000 dwt used on
some main trade lanes between the Persian Gulf and
Europe, North America and Asia, and between
Africa and China.
Suezmax vessels with a capacity of between
100,000 and 160,000 dwt typically found on routes
to and from West Africa and in the Mediterranean.
Aframax vessels of 70,000 to 100,000 dwt.
Panamax vessels of 40,000 to 70,000 dwt.

706022-Chapter 1-Carriage of Goods by Sea

LNG carrier

Small carriers of between 25,000 to 50,000 m3 are used for

short-range trades, especially in the Mediterranean.
Vessels between 120,000 to 165,000 m3. It was not until
2006 when a 150,000 m3 vessel
entered the market. In 2008, vessels of up to 165,000 m3
were delivered for the first time.
Large ‘Q-Flex’ (210,000 to 217,000 m3) and ‘Q-Max’
(260,000 to 270,000 m3) vessels initially designed to service
LNG projects in Qatar (owned by Qatar Gas). In 2010, the
first vessels in the 170,000 to 180,000 m3 range were
delivered, narrowing the gap between the more traditional
vessels and the Qatari designs.

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Vessel Size Groups (in dead weight

tons)
Handy

Handymax

Panamax

Capesize

VLOC

ULOC

Aframax

Suezmax

VLCC

ULCC

0 100,000 200,000 300,000 400,000 500,000

Crude Oil Tankers
706022-Chapter DryofBulk
1-Carriage Carriers
Goods by Sea

Ultra Large Ore Carrier, the Berge Stahl

365,000 deadweight tons, a length of 343 meters, a beam of 65 meters

and a draught of 25 meters
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Container ship

706022-Chapter 1-Carriage of Goods by Sea

Evolution of Containerships

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Evolution of Containerships

706022-Chapter 1-Carriage of Goods by Sea

The Top 10 Largest Container Ships

YEAR OF SHIP MAXIMUM COUNTRY SHIP BEAM OVERALL GROSS
LAUNCH NAME TEUS FLAG OPERATOR WIDTH LENGTH TONNAGE
399.9
61.5
Evergreen meters
1 2021 Ever Ace 23,992 Panama meters 235,579
(Taiwan) (1,312
(202 feet)
feet)
61.0 399.9
HMM
HMM meters meters
2 2020 23,964 Panama (South 228,283
Algeciras (200.1 (1,312
Korea)
feet) feet)
399.9
HMM 61.5
meters
3 2020 HMM Oslo 23,820 Panama (South meters 232,311
(1,312
Korea) (202 feet)
feet)
399.9
MSC 61.5
MSC meters
4 2019 23,756 Panama (Switzerlan meters 232,618
Gülsün (1,312
d) (202 feet)
feet)
61.0 399.8
MSC
meters meters
5 2019 MSC Mina 23,656 Panama (Switzerlan 228,741
(200.1 (1,312
d)
feet) feet)

As of June 2021
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The Top 10 Largest Container Ships

YEAR OF SHIP MAXIMUM COUNTRY SHIP BEAM OVERALL GROSS
LAUNCH NAME TEUS FLAG OPERATOR WIDTH LENGTH TONNAGE

399.9
CMA CGM 61.3
CMA CGM meters
6 2020 Jacques 23,112 France meters 236,583
(France) (1,312
Saadé (201 feet)
feet)
399.9
OOCL 58.8
OOCL meters
7 2017 21,413 Hong Kong (Hong meters 210,890
Hong Kong (1,312
Kong) (193 feet)
feet)
400
COSCO 58.6
COSCO meters
8 2018 Shipping 21,237 Hong Kong meters 215,553
(China) (1,312.3
Universe (192 feet)
feet)
CMA CGM 59.0 400
Antoine CMA CGM meters meters
9 2018 20,954 France 219,277
de Saint (France) (193.6 (1,312.3
Exupéry feet) feet)
399
58.6
Madrid Maersk meters
10 2017 20,568 Denmark meters 214,286
Maersk (Denmark) (1,309.1
(192 feet)
feet)

706022-Chapter 1-Carriage of Goods by Sea

Future Prospects- Containerzation

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Future Prospects- Largest available

706022-Chapter 1-Carriage of Goods by Sea

Future Prospects- Slow steaming

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The Disadvantages of Scale in Maritime Shipping

Maritime / Port Operations Yard Operations Gate / Hinterland Operations

• Less ports able to • Surges in yard haulage. • Surges in gate access.
accommodate larger ships. • Surges in yard storage. • Increased local congestion.
• Reduction in ship call • Surges in reefer slots • Supply chain adjustments
frequency. usage. (more lead time and
• Longer intra-port • Security and customs inventory).
navigation. inspection issues. • Cargo risks (insurance).
• Longer berth space and
berth time.
• Reduction in crane
productivity.
706022-Chapter 1-Carriage of Goods by Sea

Ro-Ro

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LO-LO

706022-Chapter 1-Carriage of Goods by Sea

Flags of convenience

46% of the ships and about 62% of the global tonnage

Regulation:
Under maritime law, the owner is bound to the rules and
regulations of the country of registration.
Registry costs:
 Registry costs are on average between 30 to 50% lower
than those of North America and Western Europe.
Operating costs:
From 12 to 27% lower than traditional registry fleets.
Savings are coming from lower manning expenses.
Lower standards in terms of salary and benefits.
706022-Chapter 1-Carriage of Goods by Sea 41
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MV. Ever Given

706022-Chapter 1-Carriage of Goods by Sea

Tonnage by Country of Registry, 2013

706022-Chapter 1-Carriage of Goods by Sea 42

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Two major types of services

SALES AGREEMENT

Seller Goods Buyer

Bulk cargoes General Cargoes

Containers

Charter/ Tramp Liner

MARINE TRANSPORTATION
706022-Chapter 1-Carriage of Goods by Sea

Maritime Shipping Characteristics

Tramping / Charter Liner Shipping
Transportation Demand
Number of shippers Few Many
Quantity carried Large Small
Freight density High (weight) Low (volume)
Unit value Low High
Regularity of demand Low High
Transportation Supply
Contract Vessel Freight (bill of lading)
Main vessel types Liquid and bulk General cargo (mostly containerized)
Frequency of services Low High
Implications
Minor bulk and general cargo
Freight type Liquid and main bulk commodities
(containerized)
Services Supply / demand regulation Prior to demand
Freight elasticity Low Low
Main markets Developing / developed countries Developed / developed countries

Share in Maritime Transport (2000)

Tons 70% 30%
Value 20% 706022-Chapter 1-Carriage of Goods by Sea 80% 43
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Sea transport and Incoterms

2 GROUPS: MARITIME AND ALL MODES

INCOTERMS® 2020 RULES AND THE
CARRIER:
• Delivery A2/B2
• Contract A4/B4
• Document A6/B6
• Loading/ Unloading A9/B9
 RIGHT to make a contract of carriage

706022-Chapter 1-Carriage of Goods by Sea

Benefits

• Right to choose the carrier  promote the national

fleet, help to balance of payment
• Getting more competitive freight rate  enhance
shipment
• Right to choose the quantity tolerance

706022-Chapter 1-Carriage of Goods by Sea 44

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Don’t

• Rates fluctuate frequently (difference between FOB

price and CFR price (also FCA/CPT) is too high)
• Hardly to charter
• Lack of int’l transport/law knowledge

706022-Chapter 1-Carriage of Goods by Sea

Sea transport and Incoterms

C terms  carriage by the usual route in a vessel of

the type normally used for the transport of the type
of goods sold
FCA term  the buyer must instruct the carrier to
issue “on board” notation if required

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LO3
Transport documents- commonly used

• Bill of lading
• Sea Waybill
• Manifest
• Delivery order
• Mate’s receipt

706022-Chapter 1-Carriage of Goods by Sea

Bill of Lading- B/L

Bill of lading refers to a transport document used as evidence that

the carrier has received goods of which quantity, nature and
condition are consistent with those specified in that bill of lading
for the purpose of carrying such goods to the place of discharge;
evidence of ownership of the goods which is considered as a
manner of disposing of, receiving the goods, and as evidence for a
contract for carriage of goods by sea. (VN Maritime Code 2015)
“Bill of lading” means a document which evidences a contract of
carriage by sea and the taking over or loading of the goods by the
carrier, and by which the carrier undertakes to deliver the goods
against surrender of the document. A provision in the document
that the goods are to be delivered to the order of a named person,
or to order, or to bearer, constitutes such an undertaking.
46
(Hamburg Rule 1978) 706022-Chapter 1-Carriage of Goods by Sea
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Bill of Lading- B/L

Functions of B/L:
As receipt for goods shipped
Receipt as to quantity
Receipt as to condition
Receipt as to leading marks
As evidence of the contract of carriage
As a document of title

706022-Chapter 1-Carriage of Goods by Sea

Bill of Lading- B/L

Issue of B/L:
Full set of original b/l : 3 original/ 3 copy  same
tenor and date  one original B/L has been surrendered
all other B/L shall be void.
Bill of lading may be signed by
The Master
The carrier/NVOCC
As agent for the carrier/ the Master

706022-Chapter 1-Carriage of Goods by Sea 47

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Bill of Lading- B/L

Contents of B/L  front side

Part 1: Information relating to the parties
Part 2: Information relating to the voyage
Part 3: Information relating to the goods

706022-Chapter 1-Carriage of Goods by Sea

Bill of Lading- B/L

Contents of B/L  front side

Part 1: Information relating to the parties
Part 2: Information relating to the voyage
Part 3: Information relating to the goods

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Contents- Hamburg Rule

(a) the general nature of the goods, the leading marks necessary for identification of the goods, an
express statement, if applicable, as to the dangerous character of the goods, the number of packages or
pieces, and the weight of the goods or their quantity otherwise expressed, all such particulars as
furnished by the shipper;
(b) the apparent condition of the goods;
(c) the name and principal place of business of the carrier;
(d) the name of the shipper;
(e) the consignee if named by the shipper;
(f) the port of loading under the contract of carriage by sea and the date on which the goods were taken
over by the carrier at the port of loading;
(g) the port of discharge under the contract of carriage by sea;
(h) the number of originals of the bill of lading, if more than one;
(i) the place of issuance of the bill of lading;
(j) the signature of the carrier or a person acting on his behalf;
(k) the freight to the extent payable by the consignee or other indication that freight is payable by him;
(l) the statement referred to in paragraph 3 of article 23;
(m) the statement, if applicable, that the goods shall or may be carried on deck;
(n) the date or the period of delivery of the goods at the port of discharge if expressly agreed upon
between the parties; and
706022-Chapter 1-Carriage of Goods by Sea
(o) any increased limit or limits of liability

Contents – VN Maritime Code

a) The name and principal place of business of the carrier;
b) The name of the shipper;
c) The name of the consignee, or statement that the bill of lading is issued in the form of an
order or anonymous bill of lading;
d) The name of the ship;
dd) The name of the goods, description of nature, size, volume, number of pieces, weight or
value of the goods whenever necessary;
e) Description of external or packaging conditions;
g) Mark or sign for identification of the goods of which a written notification is issued by
the shipper prior to loading of the goods on board, and which are mounted on each piece or
package of piece of goods;
h) Freight and other fees payable to the carrier; payment method;
i) Place of receipt and port of loading;
k) Port of discharge or indication of the time when and place where the port of discharge is
designated;
l) The number of originals of the bill of lading issued to the shipper;
m) The time and place of issue of the bill of lading;
n) The signature of the carrier or master or a person
706022-Chapter actingofon
1-Carriage the by
Goods carrier’s
Sea behalf. 49
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Part 1

Part 2

Part 3

706022-Chapter 1-Carriage of Goods by Sea

Terms and
conditions
on the back
of the B/L

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Kinds of B/L

Two main kinds of B/L:

Shipped on board B/L
Received for shipment B/L

706022-Chapter 1-Carriage of Goods by Sea

Shipped on board B/L

The cargo is on board of the vessel  confirm to the

buyer that the goods have actually been shipped
L/C  usually against “ shipped on board” B/L

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Received (for shipment) B/L

The shipping company confirms having received the

goods for shipment by the vessel mentioned in the B/L
After loaded on the vessel  be inserted “shipped on
board on date…” in the B/L

706022-Chapter 1-Carriage of Goods by Sea

Others classification

According to beneficiary:
B/L to a named person (Straight B/L)
B/L to order
B/L to bearer

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Straight B/L
The goods can be delivered only to the named person  non-
negotiable not commonly used in commercial deals
Used for:
Dispatching goods from one person to another
From HQ to branch
Under agent relationship
Not involved in payment…

706022-Chapter 1-Carriage of Goods by Sea

To order B/L
To order
Of the shipper
Of the cnee
Of the bank
Endorsement  in favor of the final receiver/ intermediate
beneficiary  used in commercial deals

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To bearer B/L
Cnee box:
To bearer or to Holder
To order w/o any mention of a cnee or beneficiary
To order B/l but blank endorsement
Not commonly used in business transactions

706022-Chapter 1-Carriage of Goods by Sea

Others classification

According to voyage/ mode of transport:

Direct B/L
Through B/L
Combined Transport B/L/ Multimodal transport B/L

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Direct B/L

Direct call from port to port

On the same vessel from POL to POD

706022-Chapter 1-Carriage of Goods by Sea

Through B/L (TB/L)

Trans-shipment at a particular port

Same mode of waterway transport, difference carriers
Freight charges from POL to POD under one contract
of carriage

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Combined Transport B/L

Trans-shipment at a particular port/place

Difference mode of transport, difference carriers
Freight charges from place of receipt to place of
destination under one contract of carriage

HARI BHUM V.001S CATLAI PORT

SINGAPORT PORT HAMBURG PORT

706022-Chapter 1-Carriage of Goods by Sea

Others classification

According to receipt as to condition:

Clean B/L
in apparent good order and condition  outward inspection
Not adverse comments
Unclean B/L / Claused B/L
Packaging
Discrepancy in marks
Dented drums
Cases stained with wet
Bags torn
Cartons holed, etc…
706022-Chapter 1-Carriage of Goods by Sea 56
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Others classification
• Others- Misc. Master Bill of lading
House Bill of lading

Charter Party Bill of lading

Surrendered Bill of Lading
Express B/L
Switch Bill of Lading

Seawaybill
706022-Chapter 1-Carriage of Goods by Sea

Charter party B/L

A transport document used in shipments made under

charter party.
Congenbill  widely used in int’l transportation.
Others specific charter party bills of lading issued by
BIMCO:
 AUSTWHEAT BILL
 BIMCHEMVOYBILL 2008
 CEMENTVOYBILL 2006
 INTANKBILL 78
 GRAINCONBILL

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Surrendered B/L / Express B/L

Surrendered B/L
The full set of Original B/L has been surrendered at POL
POD: Telex release + identity of consignee
Express B/L
B/L should state - “ZERO (0) – NO ORIGINALS
REQUIRED FOR RELEASE”.
POD: Telex release + identity of consignee

706022-Chapter 1-Carriage of Goods by Sea

Switch B/L
A switch B/L refers to a second set of B/L issued by
the carrier (or its agent) to substitute the original B/L
issued at the time of shipment.
In most case  edit the shipper information
Procedure:
only the party holding the full set of documents can request
approved by the carrier
ensures that there is only one set of documents in force

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Sea waybill

A Sea Waybill is a transport contract  the same as a

B/L
Non-negotiable  made out to a named cnee  as a
cargo receipt only  POD: production of proper
identification w/o presenting the waybill.
Advantages:
To claim the goods w/o presenting the original B/L. waybill
In-house documentation  no financial risk involved
Complete confidence between the business parties

706022-Chapter 1-Carriage of Goods by Sea

Cargo Manifest

A manifest as a paper document is a cover page with

information on the means of transport and aggregated
data on the goods transported, followed by the
individual B/L of the consignments.
Prepared by the carrier’s agent  dealing with the
customs and port authorities.

706022-Chapter 1-Carriage of Goods by Sea 59

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Delivery Order (D/O)

A D/O is issued by the carrier/ agent to enable the cnee

to take delivery of the cargo from the vessel/port/WH

Mate’s Receipt

A receipt issued by the carrier in the acknowledgement

of the goods received on board which is subsequently
exchanged for the B/L
706022-Chapter 1-Carriage of Goods by Sea

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LO4
Application of the conventions/rules

• The Hague Rules: The International Convention For

The Unification Of Certain Rules Of Law Relating To
Bill Of Lading  adopted 1924
• The Hague-Visby Rules: The Protocol To Amend The
Brussels International Convention For The Unification
Of Certain Rules Of Law Relating To Bill Of Lading +
The protocol (SDR) to the Hague Visby Rules 1979
• The Hamburg Rules: The United Nations Convention
On The Carriage Of Goods By Sea, 1978  entered into
force on 1 November 1992

706022-Chapter 1-Carriage of Goods by Sea

LO4
Application of the conventions/rules

• The Carriage of Goods by Sea Act ("COGSA"):

United States statute governing the rights and
responsibilities between shippers of cargo and ship-
owners regarding ocean shipments to and from the
United States
• The Rotterdam Rules: Convention of Contracts for
the International Carrying of Goods Wholly or
Partly by Sea  not yet in force
• VN Maritime Code 2015

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The Hague Rules

• The 1st Int’l convention on the carriage of goods by

sea
• Purpose:
the unification of the existing legislation of several
countries
The protection to the value of the goods interests by
prohibiting clauses which exempted the carrier from
liability for faults in the care and custody of cargo

706022-Chapter 1-Carriage of Goods by Sea

The Hague-Visby Rules

• Aset of international rules for the international

carriage of goods by sea
• Purpose:
To amend the Hague Rules to a limited extend to meet
criticisms  increase the amount of limitation
To adequate new technological development (use of
pallets, containerization, etc…)  each pkg in the
carrier’s cont. is treated as 1 unit for limitation purpose
B/L: “one container said to contain 15 cases” ?
B/L: “one container said to contain general merchandise” ?

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The Hamburg Rules

• A set of rules governing the international shipment

of goods, resulting from the United Nations
International Convention on the Carriage of Goods
by Sea
• Purpose:
an attempt to form a uniform legal base for the
transportation of goods on oceangoing ships
Abolished the old concepts:
Only to exercise due diligence to make the vessel seaworthy
A list of exemptions incl. error in navigation or management

706022-Chapter 1-Carriage of Goods by Sea

Rules Comparison

 Which Voyages are Covered:

Hague Rules Hague- Visby Rules Hamburg Rules

Rules are silent B/L issued in a contracting B/L issued in a contracting

state state
Carriage from contracting Carriage from contracting
state. state
Contract of carriage expressly Carriage to contracting state
applies rules B/L provides Rules to apply.

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Rules Comparison

 Which Contracts Covered

Hague Rules Hague- Visby Rules Hamburg Rules

Bill of lading or “other Same as the Hague Contract of carriage by sea.

similar document of Rules Need not be a B/L or
title”. document of title.
Not charterparties. Not charterparties
‘Straight’ bills of lading
will be considered as
“documents of title” for
the purposes of the Rules

706022-Chapter 1-Carriage of Goods by Sea

Rules Comparison

Geographical application – period of responsibility

Hague Rules Hague- Visby Rules Hamburg Rules

Covers the period from Same as the Hague Carrier is responsible while
the time when the goods Rules in “charge” of the goods at
are loaded on to the time the port of loading, during the
when they are discharged carriage, and at the port of
from the ship. discharge i.e. normally from
Tackle to tackle time taken over from shipper
to time delivered to
consignee. Subject to local
port regulations
706022-Chapter 1-Carriage of Goods by Sea 64
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Rules Comparison

Who is the carrier?

Hague Rules Hague- Visby Rules Hamburg Rules

Owner or charterer Same as the Hague “any person by whom or in

“who enters into contract Rules whose name a contract of
of carriage with a carriage has been concluded
shipper”. with a shipper”. Covers
“actual” and “contractual”
carrier.

706022-Chapter 1-Carriage of Goods by Sea

Rules Comparison

Contract and tort claims

Hague Rules Hague- Visby Rules Hamburg Rules

Rules are silent. May Apply to contract and Apply to contract and tort
apply to just contract tort claims claims
claims.

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Rules Comparison
Carrier’s general duty of care
Hague Rules Hague- Visby Hamburg Rules
Rules
Carrier must exercise due Same as the Hague Carrier, his servants and
diligence before and at beginning agents must take all
of voyage to: measures that could
(a) make ship seaworthy; reasonably be required to
(b) properly man, equip and avoid the event causing
supply the ship; loss and its consequences
(c) make holds etc. fit and safe
for reception carriage and
preservation of cargo.
Carrier must properly and
carefully load, handle, stow,
carry, keep, care for and
706022-Chapter 1-Carriage of Goods by Sea
discharge goods

Rules Comparison

Carrier’s defences

Hague Rules Hague- Visby Rules Hamburg Rules

Unseaworthiness – only Same as the Hague Carrier must prove he, his
defence is for carrier to servants or agents, took all
show he exercised “due measures that could
diligence” to ensure reasonably be required to
vessel seaworthy before avoid the occurrence and its
and at beginning of consequences
voyage.
Properly and carefully
load, etc. The following
defences apply: 706022-Chapter 1-Carriage of Goods by Sea 66
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The following defences apply (17)

• Act, neglect or default of the master,
mariner,pilot or the servants of the carrier in the • Saving or attempting to save life or
navigation or in the management of the ship. property at sea.
• Fire, unless caused by the actual fault or privity • Wastage in bulk or weight or any other
of the carrier. loss or damage arising from inherent
• Perils, dangers and accidents of the sea or other defect, quality or vice of the goods.
navigable waters. • Insufficiency of packing.
• Act of God. • Insufficiency or inadequacy of marks.
• Act of war. • Latent defects not discoverable by due
• Act of public enemies. diligence.
• Arrest or restraint of princes, rulers or people,or • Any other cause arising without the actual
seizure under legal process. fault or privity of the carrier, or without
• Quarantine restrictions. the fault or neglect of the agents or
• Act or omission of the shipper or owner of the servants of the carrier, but the burden of
goods, his agent or representative. proof shall be on the person claiming the
• Strikes or lock-outs, or stoppage or restraint
benefit of this exception to show that
oflabour from whatever cause, whether partial neither the actual fault or privity of the
or general. carrier, nor the fault or neglect of the
agents or servants of the carrier
• Riots and civil commotions. 706022-Chapter 1-Carriage of Goods by Sea
contributed to the loss or damage.

Rules Comparison

Burden of proof

Hague Rules Hague- Visby Rules Hamburg Rules

cargo owner must Same as the Hague Carrier must prove that
establish inference of reasonable steps to avoid loss
unseaworthiness or were taken unless damage is
failure to properly and caused by fire
carefully carry the goods,
and the carrier must
prove relevant defence

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Rules Comparison

Fire

Hague Rules Hague- Visby Hamburg Rules

Rules
If due to e.g. poor Same as the Hague Carrier liable if claimant
stowage, carrier only liable proves fire arose from fault or
if caused by his actual fault neglect on the part of the
or privity. If caused by carrier, his servants or agents
unseaworthiness, carrier
liable unless he exercised
due diligence to ensure
vessel seaworthy before
and at beginning of
voyage. 706022-Chapter 1-Carriage of Goods by Sea

Rules Comparison

Live Animals

Hague Rules Hague- Visby Hamburg Rules

Rules
Excluded from Rules Same as the Hague Rules apply but carrier not
liable for inherent “special
risks”. If carrier complies
with shipper’s instructions he
will be presumed not to be
liable

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Rules Comparison

Deck Cargo
Hague Rules Hague- Visby Hamburg Rules
Rules
Excluded from Rules if Same as the Hague Rules do not exclude deck cargo.
Carrier can undertake deck carriage if
stated to be carried on deck
agreed with shipper or accords with
on face of B/L. Undeclared the “usage of a particular trade or is
deck carriage may affect required by statutory rules or
carrier’s ability to rely on regulations”. Must be statement in
the B/L that goods carried on deck.
defences, although the
Failure to agree deck carriage makes
carrier may still rely on carrier liable for damage, loss or
package limitation under delay resulting solely from carriage
on deck. Carrier cannot limit liability
when deck carriage is in breach of
express agreement to carry below
706022-Chapter 1-Carriage of Goods by Sea
deck.

Rules Comparison
Dangerous cargo
Hague Rules Hague- Visby Hamburg Rules
Rules
Inflammable, explosive or Same as the Hague Similar provisions apply and
dangerous goods if loaded the shipper is obliged to mark
without knowledge of the and label dangerous goods in a
master (or carrier’s agent) may
suitable manner.
be discharged, rendered
harmless or destroyed at
shipper’s expense.
If carrier knows of their
nature but they prove
dangerous they may still be
discharged, rendered harmless
or destroyed without liability
on the part of the carrier, save 706022-Chapter 1-Carriage of Goods by Sea 69
in general average.
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Rules Comparison
Limits of liability (a) Goods lost or damaged
Hague Rules Hague- Visby Hamburg Rules
Rules
…….per package or unit ……. Poincare Francs …. SDR per kg or …..SDR
unless value declared and per package or unit or per package or shipping unit
inserted in the B/L 30 Poincare Francs per
kilo of gross weight of
damaged or lost goods
whichever is higher.
SDR Protocol 1979:
……SDRs per kg or
…… SDRs per
package

706022-Chapter 1-Carriage of Goods by Sea

Rules Comparison
Limits of liability (b) Goods delayed
Hague Rules Hague- Visby Hamburg Rules
Rules
No special provisions Same as the Hague Limited to an amount
equivalent …………….. the
freight payable for the goods
delayed, but not
exceeding the total freight
payable under the contract of
carriage of goods by sea

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Rules Comparison
Lower limits by agreement
Hague Rules Hague- Visby Hamburg Rules
Rules
Only permitted where not Same as the Hague No specific right to agree
an ordinary shipment, and lower limits.
reasonable in special
circumstances

Higher limits by agreement

Hague Rules Hague- Visby Hamburg Rules
Rules
Permitted if recorded in the Same as the Hague  Permitted if agreed.
B/L.  Should be recorded in the
B/L..
706022-Chapter 1-Carriage of Goods by Sea

Rules Comparison
Deviation
Hague Rules Hague- Visby Hamburg Rules
Rules
Deviating carrier might lose Same as the Hague No special provisions.
right to rely on defences in Deviation if it causes loss is
Rules and lose right to limit subject to general test of
liability. Art IV Rule 4 carrier’s liability . Art 5.6
provides “any deviation in exempts a carrier from liability
saving or attempting to save where he attempts to save life
life or property at sea, or or “reasonable measures” are
any reasonable deviation taken to save property. This
shall not be deemed to be would apply to deviation as
an infringement or breach much as any other cause of
of the Rules or contract of loss.
carriage”. 706022-Chapter 1-Carriage of Goods by Sea 71
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Rules Comparison
Notification of damage
Hague Rules Hague- Visby Hamburg Rules
Rules
Notice of loss or damage Same as the Hague  Notice of loss or damage to
must be given in writing to be given in writing to carrier:
the carrier or his agent:  by the working day following
 …… day of delivery; or delivery to consignee; or
 within …….days where  within …… days of delivery
damage is latent. where damage is latent.
 Notice of delay must be given
within …… days of delivery.
 Carrier must give notice of
complaint to shipper within
90 days of delivery
706022-Chapter 1-Carriage of Goods by Sea

Rules Comparison
Limitation of action.
Hague Rules Hague- Visby Rules Hamburg Rules

“Suit” must be brought  Same as Hague  Litigation or arbitration to be

within 1 year of Rules. commenced within 2 years
delivery or date  Indemnity actions from date of delivery of
delivery should have may be brought after goods or the last day upon
taken place 1 year; the period for which the goods should have
commencing suit to been delivered.
be determined by  Indemnity proceedings may
local law but not to be commenced after this
be less than 3 months period (at least 90 days from
after claim settled or date of commencement of
suit served action against carrier must be
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 8/27/2022

Further reading-Chapter 1

1. John F Wilson, Carriage of goods by sea, 6th edition, Pearson

2. Hague Rules
3. Hamburg Rules

706022-Chapter 1-Carriage of Goods by Sea

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