SHIPPING
DOCUMENTS
There is a large number of shipping documents in use between the
parties and in relation to different authorities. The most important
documents are charter-parties (C/P) and bills of lading (B/L)
but booking notes, delivery orders, mate's recepts (M/R), cargo
manifests, invoices, etc. also play an important role. All these
papers have functions which differ but are coordinated and are
generally issued with a large number of copies as well as originals.
1.The Charter-Party (C/P). It is an agreement for the affreightment
of a ship for carriage of cargo by sea or for hiring her within
a period of time. Its purpose is to standardise a number of clauses
for different trades and to make clear certain essential provisions
important for both parties.Types of C/Ps:
a) Voyage C/P;
b) Time C/P;
c) Bareboat C/P;
d) Demise C/P.
These differ in the form of agreement required by the parties.
Thus in a voyage C/P a vessel is employed for a single voyage
or several consecutive voyages and is typical within tramp traffic.
Under a time C/P the ship is employed by the Charterer for a period
of time, who is also responsible for the trade operation and management
of the vessel. The Owner in this case is in charge of the crew
and ship's navigation and maintenance. A bareboat C/P means the
vessel and her ordinary equipment are at the disposal of the Charterer
for a period of time with no crew and he takes over the entire
responsibility for the operation of the ship. With a demise C/P
the vessel is hired by the Charterer with all ordinary equipment
and crew employed by the Owner. He is also responsible for the
ship's operation and crew's wages.
2.The Bill of Lading (B/L). This is a document issued by the Carrier
for the Shipper stating that:
- he has received in good order and condition (or the reverse)
certain specified goods consigned to him for carriage or on-board
the ship;
- he is obliged to deliver them in similar condition to the Consignees
at the point of destination on their paying him the stipulated
freight unless the perils of the sea prevent him.
The following three functions of the B/L should be noted:
a) a receipt for the goods specified therein;
b) evidence of a contract of affreightment;
c) a document of title to the goods specified therein.
Bs/L are always drawn up in sets, i.e. originals and not negotiable
copies depending on the number of parties interested.
Other forms of agreement for carriage of cargo are:
3.The Booking Note - notifying the Carrier that a ship's cargo
space has been booked which when accepted becomes a contract concerning
the carriage of cargo consignments under liner terms.
4.The Berth(ing) Note - used for carriage of part cargo under
both liner and tramp terms when a vessel is in port and is able
to receive certain additional goods ready for shipment.
5.The Fixture Note - a firm arrangement for a ship to be ready
to load cargo on a fixed date and at a port convenient to the
Charterers.
The cargo is then taken on board in accordance with
6.The Cargo Plan which is made by the cargo officer (i.e. the
Chief Mate) or the agent, and should always be approved by the
Master prior to loading. When planning the stowage of goods in
the ship's cargo spaces, the vessel's stability and seaworthiness
should be taken into consideration, irrespective of any state
of sea and weather she may encounter. Stowage on board is usually
in the reverse order to that in which the goods are to be taken
out.
7.The Mate's Receipt (M/R) is drawn up for goods actually shipped
on board given and signed by the Chief Mate to show the state
of the cargo, identification marks and numbers from tally books.
Where justified, the mate should add appropriate qualifying remarks
on the order and condition of the cargo that will be used to clause
the B/L accordingly. The person in possession of the M/R is entitled
to the Bs/L and gives it in exchange for them.
The procedure of cargo delivery is governed by a number of cargo
documents. In compliance with the C/P the ship master is duly
to advise the agent in the port of discharge of his vessel's ETA,
kind of cargo on board and stowage plans as well.
This process requires the following documents to be tendered:
8.The Cargo Manifest describing the ship's cargo in terms of packing,
weights or quantities, Shipper's name, Consignee's name, etc.
9.The Notice of Readiness (NOR) informing the Charterer, Shipper,
Receiver or other person as required by the Charterer that the
ship has arrived at the port/berth and is ready to discharge/load.
10.The Outturn Report is issued after the final check of discharged
cargo at the port of destination in terms of marks and numbers,
quantity, description and remarks on order and condition.
Other documents may be completed whether loading or discharging
cargo:
11.The Cargo/Damage Report is a protocol drawn up after after
loading/discharging a vessel with remarks for all overlanded,
short-landed, short-shipped or damaged cargo.
12.The Disbursement Account(D/A) including payments made by the
master or by the ship's Agents on behalf of the Owners. They consist
of port dues, customs fees, bunkers, stores and other expenses
during a vessel's stay in port.
13.The Statement of Facts records daily all particulars relating
to loading/discharging cargo. It indicates the duration of and
reason for any interruption of work and is used as a basis for
the calculation of demurrage.
14.The Time Sheet describes the time used in loading/discharging
and also accounts for laytime, demurrage, despatch, etc.
Other papers employed by the Carrier and the Shipper in their
dealings with each other as well as the documents in the relations
with government authorities, Underwriters and Consignees include
insurance policy, delivery or receipt orders and permits, invoices,
etc.
