Carriers of by sea
The contract of affreightment:
The contract of carry goods by sea is called The contract of affreightment/ ‡bŠen‡bi yPw³. The consignor and the ship-owner, are the two parties to the contract. The consideration paid for the carriage is called Freight.
The contract of affreightment may be incorporated in a formal document containing the terms of the
agreement between the parties.
Two documents are required for the completion of The Contract of Affreightment:
1.(1) Charter Party and
2.(2) Bill of Lading.
(1) Charter Party:
A Charter Party may be defined as an agreement in writing for the purpose of hiring as entire ship or a part thereof for the purpose of carriage of goods.
The person hiring the ship or a part of it, is called the charterer.
Classification:
The following types of charter party are found:
•(a) A charter party for a particular period of time is called a Time Charter.
•(b) A charter party for a particular voyage is called a Voyage Charter.
Terms of the charter party:
•Name of the parties and the ship.
•Nationality of the ship.
•The class of the charter party.
•A statement on the location of the ship and the place of loading.
•The ship owner’s guarantee of fitness.
•The carrying capacity of the ship.
•The terms regarding loading, unloading, lay days and demurrage, etc.
(2) The Bill of Lading:
Definition:
A Bill of Lading is a receipt for goods by the ship-owner delivered to a ship for carriage. A bill of lading is used when the goods shipped from only a part of the cargo of the ship.
Characteristics of the Bill of Lading:
•(i) Signature: It is signed by the ship owner or his agent. Usually the captain of the ship , as a ship
owner’s agent sings the bill of lading.
•(ii) Evidence: The bill of lading is evidence of the contract for the carriage of goods.
•(iii) Acknowledgement: The bill of lading is the prima facie evidence of the receipt of the goods by the
carrier.
•(iv) Documents of the title: The bill of lading is a document of title to the goods covered by the bill.
Certain Terms:
1.(1) Mate’s Receipt:
When goods are delivered to a ship for carriage, a receipt for it is sometimes given by the mate, who is an officer of the ship under the captain. The mate’s receipt can be subsequently exchanged for a regular bill of lading.
2.(2) Deviation:
Deviation means departure from the usual and customary route agreed upon in a charter party. Deviation. is permitted to avid the perils of the sea
(3) Barratry:
Barratry means willful act of damages done by the crew in course of a mutiny or fight with the captain and the ship owner or among themselves.
(4) Jettison:
To jettison means to throw out. Good may be jettisoned during a voyage in order to avoid the danger of the ship sinking or heeling during storms. Goods may be also be jettisoned if they are dangerous.
(5) Salvage:
When some persons save a ship or any of its of appliances or cargo from shipwreck, capture by enemies or pirates or loss from any other cause, they become entitled to a reward. The reward is called a salvage. Who save the properties is called Salvors.
(6) Primage:
The charterer usually gives some extra remuneration to the captain of the ship, calculated at a fixed percentage of the regular freight. The extra remuneration is a reward to the captain fo the ship for his care and diligence. It is called Primage
(7) Freight:
Freight means the consideration paid to the carrier, by the shipper for the carriage of goods. Freight is payable only if goods are delivered in accordance with the terms of the contract.
(8) Dunnage:
Dunnage is any light materials wedged between the cargo to keep it from rolling when stored. Grass is a king of Dunnage. -Union of India v. Ratilal Jaddavji, 1971.
(9) Lay Days:
The term “Lay Days” means the days allowed for loading or unloading a ship.
The number of days to be allowed as lay days is fixed by the agreement and usually mentioned in the charter party where there is one.
(10) Demurrage:
If the loading and unloading is not completed within the lay days agreed upon, the carrier is entitled to damages. Such damages are called demurrage.
Demurrage is usually calculated upon the numbers of days the ship is detained beyond the agreed laydays.
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