Total Measurement = 3cbm
M > W, so M is used as calculation basis.
Total freight = Basic Freight Rate x Total Quantity = 45.00 x 6.5 = USD292.50 Answer: The total freight would be USD292.50.
4. Company B is to export their goods by three 1 x 20' FCL Containers from Guangzhou, China to Felixstow, UK. The quotation for FCL ocean freight rate is as follows : O/F ( Ocean freight) rate: USD750.00/20'; BAF: USD500.00/20' ;
CAF: 12% on the basis freight
ISPS (International ship and port facility security) USD10.00/20' How much is the total freight?
Total freight = [O/F x (1 +CAF) +BAF+ISPS] x Quantity = [750x (1 +12%) +500+10]x3= 1350 x 3 = USD4 050.00
Answer: The total freight would be USD4 050.00.
5. Company C is to deliver by air 10 sets of Hi-fi Equipments to Paris, France. The total weight is 550kg and the measurement is 2.5cbm. The Air freight quoted by a logistics company is as follows: A/F (Airfreight) rate: CNY10.00/kg FSC ( Fuel surcharge) : CNY11.00/kg SCC ( Security surcharge) : CNY1.20/kg How much is the total air freight? Total Weight = 550kg
Total Measurement: 2.5m3 / 6 000cm3= 2.5 x 1 000 000cm3 / 6 000cm3=2.5 x 167≈417kg W > M, so W is used as the calculation basis.
Total air freight = ( A/F + FSC + SCC) x Quantity= (10.00 + 11.00 +1.20)x550= CNY12 210.00 Answer: The total air freight would be CNY12 210.00. IV. Explain the following terms 1. liner service
Liner service provides regular sailings and arrivals and sails on a fixed (regular) sailing route and calls at fixed (regular) base ports with a comparatively fixed timetable and charges at comparatively fixed freight rates. Normally, the freight of finer service is made up of two parts. One is the basic freight; the other is the surcharges and additionals. 2. F. I. O.
F. I. O. is the initial or abbreviations for \In and Out\\In and Out\is one of the four methods usually used to divide the expenses of loading and unloading between the ship owner and the charterer in a charter party. Under F. I. O. , the ship-owner does not bear any loading and unloading cost. 3. demurrage
Demurrage is the amount of money paid as a penalty at an agreed rate by the charterer to compensate the ship-owner for his losses in case the charterer fails to have loading and unloading completed within the lay time. In a sales contract, demurrage is paid to the charterer (buyer or seller) by the other party (seller or buyer) in case the loading or unloading completes beyond the stipulated lay time. 4. dispatch money
Dispatch is the amount of money paid as a bonus by the ship-owner to the charterer if they get loading and unloading done ahead of schedule. Normally dispatch money is half the demurrage as the benefit from the expedite loading or unloading is supposed to be shared by both the ship-owner and the charterer. In the case of a sales contract, dispatch is paid by the charterer (buyer or seller) to the other party (seller or buyer) in case the loading or unloading completes ahead of the stipulated lay time. 5. containerization
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Containerization is a method of distributing merchandise in a unitized form adopting an inter-modal system which provides a possible combination of sea, road and other modes of transportation, For the sake of containerization, containers, as a very special form of transportation, are widely used in different modes of transportation. 6. FCL
FCL, a short for Full Container Load, is one type of the two container transportation services. If the goods are of a container load, FCL service shall be adopted. Under FCL service, the freight is calculated based on container capacity and the origin and destination of the goods, not on the quantity of the goods involved as in the case of LCL, the other type of the container transportation services. 7. time of delivery
Time of delivery refers to the time limit during which the seller shall deriver the goods to the buyer at the agreed place. For all shipment contracts, time of shipment is time of delivery and they can be used interchangeably in the contract. For all arrival contracts, time of shipment and time of delivery the two completely different concepts and time of delivery should be stipulated in the contract. 8. optional ports
Optional ports refer to two or more ports of destination rather than a definite. They are specified in the contract. The seller may accept two or more optional ports to meet the buyer's special requirements, when a buyer cannot, at the time of contracting, make the decision as to which market should the goods be delivered to. V. Short questions
1. Under what circumstances does time of shipment equal to the time of delivery?
Time of shipment refers to the time limit for loading the goods on board the vessel at the port of shipment while time of delivery refers to the time limit during which the seller shall deliver the goods to the buyer at the agreed place.
For all shipment contracts, time of shipment equals to time of delivery and they can be used interchangeably in the contract. According to Incoterms 2010, contracts concluded on the basis of terms like FOB, CFR, CIF, FCA, CPT, CIP are shipment contracts. Under the shipment contract, the seller fulfills his obligation of delivery when the goods are shipped on board the vessel or delivered to the carder and the seller only bears all risks prior to shipment.
2. What are the functions of a bill of lading?
A bill of lading has three major functions : First, it is a cargo receipt. Second, it is evidence of a contract of carriage. Finally, it is a document of title to the goods. 3. What are the main types of bills of lading?
Bills of lading can be classified into various forms according to different standards.
~ According to whether the goods have been loaded on board the carrying vessel, bills of lading can be classified into shipped ( or on board) B/L and received for shipment ( or received) B/L.
~ According to the apparent condition of the received cargo, bills of lading can be classified into clean B/L and unclean B/L.
~ According to the address of the consignee, bills of lading can be divided into straight B/L, order B/L and open B/L.
~ According to whether transshipment is involved in transit, bills of lading can be classified into direct B/L and transshipment B/L.
~ According to the perplexity or simplicity of the bill content, bills of lading can be classified into long form B/L and short form B/L.
~ According to the payment condition of freight, bills of lading can be classified into freight prepaid B/L and freight to be collected B/L.
~ According to the validity, bills of lading are classified into original B/L and copy B/L.
~ Other forms of bill of lading also exist according to different circumstances. They are stale B/L, ante-dated
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B/L, advance B/L and on-deck B/L.
4. What are the ways of dividing charges of loading and unloading in a charter party?
Four methods are usually used to divide the expenses of loading and unloading between the ship-owner and the charterer:
~ Liner Terms/Gross Terms or In and Out ( I. & O. ) : The ship-owner bears loading and unloading cost. ~ Free In (F. I. ) : The ship-owner is only responsible for unloading cost. ~ Free Out (F. O. ) : The ship-owner is only responsible for loading cost.
~ Free In and Out (F. I. O. ) : The ship-owner does not bear loading and unloading cost. Or F. I. O. S. T. ( free in and out, stowed and trimmed) : The ship-owner does not bear loading and unloading cost, not even bear the expenses of stowing and trimming.
5. What factors are to be concerned in stipulating clause of delivery in a contract?
The shipment clause in a sales contract usually includes stipulations concerning time of delivery ( time of shipment), port (place) of shipment and port (place) of destination, partial shipments, transshipment, or lay days, demurrage and dispatch money. VI. Case studies
1. ABC co. signed a contract to export 200 M/T of beans. The letter of credit stipulated, \allowed\the same voyage at the port of Shanghai and the port of Dalian. The shipment document was clearly marked with the ports of shipment and the dates of shipment. Did the exporter violate the terms of the L/C?
析：本题的解题要点：ucP600第三十一条：b．表明使用同一运输工具并经由同次航程运输的数套运输单据在同一次提交时，只要显示相同目的地，将不视为部分发运，即使运输单据上表明的发运日期不同或装货港、接管地或发运地点不同。案例虽然没有说明货物是否在同一目的港卸货，但如果没有强调说明，一般认为是同一个目的地。
答案：No。卖方没有违反信用证“不允许分批装船”的规定。 答题切入点：对转船的定义和相关规定的理解。
2. Dee co. signed a large export contract stipulating, \the problems with the vessel, the shipment was not made until September 13. Upon Dee's request, the carrier ante-dated the B/L to August 31.
(1) What could be the consequence of ante-dating?
(2) What would be the fight thing to do in case of a possible shipment delay?
析：本题的解题要点：对于倒签提单，各国法律和海运行规都是不允许的。倒签提单是指承运人在货物装船完毕，签发提单时，应托运人的请求将提单签发日期提前到信用证规定的日期。倒签提单是一种非常严重的行为，托运人的目的都是为了使提单签发日期符合信用证的规定，顺利结汇，但对收货人来说则构成合谋欺诈，可能使收货人蒙受重大损失。
1)答案：倒签提单是一种严重的合谋欺诈行为，托运人和承运都有可能被追究法律责任。如使收货人蒙受重大损失，还会被追讨经济方面的赔偿。
答题切入点：对倒签提单及其相关规定的理解。
2)答案：与买方磋商，寻求买卖双方都能接受的解决办法；如1)延期信用证的有效期和船期；2)买方同意向银行(开证行)和卖方开出保函，保证接受签发日期迟于信用证规定日期的提单。
答题切入点：与买方磋商解决。
3. Company E in the mainland of China reached an FOB contract with Company F in China's Hong Kong, exporting Steel Sheets. To resell the goods, Company F signed another CFR contract with Company G in South Korea. Later, Company E received from company F the relevant L/C for the transaction. The price showed in the L/C was FOB as contracted. The L/C also stipulated that Busan (in South Korea) should be the port of destination. What's more, the L/C stipulated that the B/L should be marked with \(1) Why did Company F have such requests? (2) Should Company E accept these L/C clauses?
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析：本题的关键是1)理解中国香港公司作为中间商是要把从E公司购买的钢板转卖给韩国的G公司。为免周折，中间商往往会安排货物直接从出口装运港运往韩国G公司所指定的目的港(地)。2)FOB合同下，买方虽然既无义务租船订舱，也无须承担出货物自出口装运港之后的一切运输费，但通常会接受买家的委托安排货物运往买家指定的目的港(地)，只是“运费到付”，即由承运人向目的港(地)的收货人收取。
(1)答案：因为港商为了简化向韩商的交货手续，或者是企图将运费转嫁给出口商。
答题的切入点：FOB和CFR术语下出口货物运输义务以及主运费的买方和卖方之间划分。
(2)答案：可以，只要运至釜山的运费由中国香港公司承担。具体做法可由FOB合同下的卖方E公司和买家G公司磋商决定，如可采取a．中国香港公司先将运费汇交E公司；或者b．由中国香港公司先将运费交付船公司，经从船公司得到确认后E公司可照办；或者C．要求修改信用证，加入允许收益人超支运费条款。
答题的切入点：在FOB合同下，货物自在出口装运港之后的运费由买方承担。
Chapter 6 Transport Insurance I. Multiple choices II. True or false statements 1 D F 2 B F 3 C T 4 D F 5 C T 6 C F 7 B T 8 A T 9 B F 10 C F
III. Explain the following terms 1. insurable interest
Insurable interest is the interest in insurance subject matter (cargo or property accepted for insurance) held by the insurant and recognized by laws, indicating that the insurant will suffer some financial losses if any maritime risks materialize. 2. utmost good faith principle
The utmost good faith principle or bona fide principle means that both parties shall be honest and faithful when entering into the insurance contract, that is, the insurant shall expose to the insurer all the important facts that will influence the judgment and evaluation by the insurer to the perils. 3. indemnity principle
The indemnity principle means that in the event of loss of or damage to the subject matter resulting from an insured peril, the insurer shall compensate the claimant exactly what the latter has lost in the occurrence of the peril. In practice, this is almost always compensated by paying an amount of money equal to the value of the goods lost or damaged. 4. proximate cause principle
The proximate cause refers to the major and/or effective reason that has caused the accident and the proximate cause principle is employed in the judgment of causation between accidents and losses. 5. cargo transportation insurance
Cargo transportation insurance means that the insurant, referred to as either the exporter or importer, enters with an insurance company and/or an underwriter into a contract of insurance in which the insurant undertakes the payment of an insurance premium and the insurance company will, according to the terms indicated in the insurance contract, indemnify the insurant of any loss that occurs within the scope of coverage. 6. marine cargo insurance contract
Marine cargo insurance contract refers to a contract whereby the insurer undertakes to indemnify the assured in a manner and to the extent thereby agreed, against marine losses, that is to say, the losses incidental to marine adventure.
7. general average contribution
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Where there is a general average loss, the party on whom it falls is entitled, subject to the conditions imposed by maritime law, to a ratable contribution from the other parties interested, and such contribution is called a general average contribution. 8. inherent vice
Inherent vice refers to the inherent tendency of the cargo to deteriorate due to the essential instability of the components not resulted from external cause. 9. warehouse to warehouse clause
Warehouse to warehouse clause refers to the duration of insurance throughout which the insurance company undertakes an insurance liability. According to it, the insurance company undertakes an insurance liability over the insured cargo from the warehouse or place of storage of the shipper named in the policy until the cargo has arrived at the warehouse or place of storage of the receiver named in the policy, limited to sixty (60) days after completion of discharge of the insured goods from the seagoing vessel at the final port of discharge before they reach the above mentioned warehouse or place of storage. 10. franchise
Franchise in insurance refers to the practice that the loss or damage below a certain specified percentage value is non-recoverable. Franchise can be classified into two categories: deductible franchise and non-deductible franchise. Under a deductible franchise, where the loss or damage exceeds the percentage allowed, the insurance company needs merely indemnify the exceeding part to the insured whereas under a non-deductible franchise, as long as the loss or damage exceeds the franchise percentage, the insurance company shall indemnify full amount to the insured. IV. Short questions
1. What are the four insurance principles guiding insurance practice in China?
The four principles guiding insurance practice in China are the Insurable Interest Principle, the Utmost Good Faith Principle, the Indemnity Principle and the Proximate Cause Principle. 2. What are the differences between general average and particular average?
Although both general average and particular average belong to the category of partial loss, there is still some differences between them:
~ Causes: Particular average is a kind of cargo loss usually caused directly by sea perils, while general average is caused by intentional measures taken to save the common interest.
~ Indemnification: Particular average is often borne by the party whose cargo is damaged, while general average should be proportionally contributed among all parties benefited from the intentional measures. 3. What are the conditions for general average?
A partial loss can be treated as general average if it is formed upon the following conditions:
~ The danger that threats the common safety of cargo and/or vessel shall be materially existent and is not foreseen.
~ The measures taken by the master shall be aimed to remove the common danger of both vessel and cargo and shall be undertaken deliberately and reasonably for common safety.
~ The sacrifice shall be specialized and not caused by perils directly and the expense incurred shall be additional expense which is not within the operation budget.
~ The actions of the ship's master shall be successful in saving the voyage. 4. What are the differences between the scope of I. C.C. (B) and I. C.C. (C) ?
The scope of I. C.C. (C) covers loss of or damage to the cargo attributable to fire or explosion; vessel of craft being stranded, grounded, sunk or capsized; overturning or derailment of land conveyance; collision or contact of vessel, craft or conveyance with any external object other than water; or discharge of cargo at a port of distress; general average sacrifice; or jettison.
Apart from those covered under I. C.C. ( C), the scope of I. C.C. ( B ) also covers loss of or damage to the subject matter insured attributable to earthquake, volcanic eruption or lightning; washing overboard; entry of
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