Showing posts from February, 2014

Partial Shipments and Drawings

-----   Partial drawings and/o shipments are allowed , unless the credit stipulated otherwise .

-----  Shipments by sea , or by more then one mode of transport but including carriage by sea , made on the same vessel and for the same voyage , will not be regarded as partial shipments , even if the transport documents indicating loading on board bear different dates of issuance and/or  indicate different ports of loading on board .

-----   Shipment made by post will not be regarded as partial shipment if the post receipts or certificates of posting appear to have been stamped or otherwise authenticated in the place from which the credit stipulates the goods are to be dispatched , and on the same date .

-----   Shipments made by modes of transport other than those referred to in the above paragraph of this article will not be regarded as partial shipments , provided the transport documents are issued by one and the same carrier or his agent and indicate the same date of issuance , the s…

Contractual Stipulation

-----  Any stipulation in a contract of carriage by sea , in a bill or lading , or in any other document evidencing the contract of carriage by sea is null and void to the extent that it derogates , directly or indirectly , from the provisions of this convention . The nullity of such a stipulation does not affect the  validity of other provisions of the contract of document of which it forms a part . A clause assigning benefit of insurance of goods in favor of the carrier , or any similar clause , is null and void .

-----  Notwithstanding the provisions of  this , a carrier may increase his responsibilities and obligations under this Law .

-----  Where a bill of lading or any other documents evidencing the contract of carriage by sea is issued , it must contain a statement that the carriage is subject to the provisions of this .which nullify any stipulation derogating therefrom the detriment of the shipper of the consignee .

-----  Where the claimant in respect of the goods has inc…

Document of Title

Multimodal Transport Document to be regarded as Document of Title 

1)  ---  Every consignee named in negotiable or non negotiable multimodal transport document and every endorsee of such document , as the case may be to whom the property in the goods mentioned therein shall pass up or by reason of such consignment or endorsement , shall have all the rights and liabilities of the consignor .

2)  ---  Nothing contained in (1) shall prejudice or affect the right of the multimodal transport operator to claim freight from the consignor or enforce any liability of the consignee or endorsee by reason of his being such consignee or endorsee .

But before to understand this we have to know clearly ;

Issue of Multimodal Transport Document 

-----   Where the consignor and multimodal transport operator have entered into a contract of the multimodal transportation and the multimoddal transport operator has taken charge of goods , he/she shall at the option of the consignor issue a negotiable or non-…

Applicability of the Rules to action in tort

The MTO would also need to be protected from claims when they relate to the performance of the contract but nevertheless the claimant seeks to avoid Rules by founding his claim in tort . The rule will not work when there is no contractual relationship between the MTO and the claimant . However , it contains an important protection of the MTO against a possible circumvention of the Rules by the person who has agreed to bound by the Rules .

These Rules apply to all claims against the MTO relating to the performance of the Multimodal Transport Contract , whether the claim be founded in contract or in tort .

There is also a Rule purports to protect the servants and agents and other person employed by the MTO , and thereby indirectly the MTO himself , by stipulating that the same protection which applies to the MTO would also apply to the benefits of any servant , agent or other person whose services the Multomodal Transport Operator has used in the order to perform the MT contract . 


Berth Occupancy

Berth Occupancy is an important factor which requires a detail study . Specialized berths can achieve handling rates 5 to 10 times more then conventional berths . container ships are much expensive then general Cargo Vessel . So the number of berths should be chosen so that the waiting time is kept to a minimum. Also, the forecasting of number of calls in a stipulated time period is important before finalizing the no. of berths .This should be calculated on the basis of average productivity of the terminal . In the planning procedure which will discuss below , the basic economic effect of waiting time will be main factor  in the investment decision , but there will in addition be the need of consider other criteria .

The following criteria gives the guidelines to the planning of container berths .

a)  ---  Whether the resulting berth occupancy will give a balance between the vessel waiting for berths and berths waiting for vessel .

b)  ---  Whether the average ship  turn-around time wil…

Reservation having a bearing on MT

Followings are Reservation having a bearing on MT :- 

a)   -----  Imports not to be discriminated on the basis of the origin .

b)   -----  Unloading of goods at a place other then the one approved .

c)   -----  Allowing of outright exportation from the premises of commercial undertakings .

d)   -----  Single goods deceleration to cover exports over a period of time .

e)   -----  Evidence of country of origin to be required only in case of fraud  - Declaration instead of certificate .

f)   -----  Transhipment not to be refused on the basis of origin .

g)   -----  Any person having the right to dispose of the goods to be permitted to declare for transhipment (as against carriers at present) .

h)   -----  Transhipment to be allowed on the basis of  commercial/transport document (now : Bill of Transhipment) .

ICC and Documentary Credits

-----   The International Chamber of Commerce (ICC) is the World Business Organization  of non - governmental nature . It was established in the year 1919 and has its international secretariat in Paris .

-----   ICC acts to promote the greater freedom of  of world trade , to harmonize and facilitate business and trade practices and to represent the business community at international level . The ICC works towards trade liberalism bases on free and fair competition and to promote the ideals of a free enterprise . It believes in self regulation by business .

-----   The ICC being a non - governmental and independent world organization , enjoys a status of first category consultant with UN organization including its specialized agencies . In order to maintain close liaison with UN activities that directly concerns business and to ensure receipt of consideration of business view point   in UN policy formulation , ICC maintain liaison with officers in New York and Geneva also .

-----   IC…

FEDAI Rules and U. N. Convention

Limitation of Action:- 

Under the CTD rules of India , the CTO shall be discharged of all liabilities unless claim is lodged within nine months after ;

1)  -----  The delivery of Goods .

2)  -----  The date when the goods should have been delivered  .

3)  -----  The date when in accordance with conditions of contract failure or deliver the goods would in the absence of evidence to the contrary give the party entitled to receive delivery , the right to treat the goods as lost .

As against these provisions Article 25 of the U.N. Convention lays down the time limit of two years of institute the judicial or arbitral proceedings   against the MTO with a provision that a notice of claim is to be lodged in writing within six months of delivery of goods or stipulated period of such delivery .

The limitation period commences on the date of delivery of goods or the expiry of the last day on which the goods should have been delivered . Thus in cases of delay as well as loss or damage the provisions …

Classification of Logistics Applications

While examining and evaluating alternatives in Logistics Management , classifying the application on various dimensions would help clarity the issue and focus attention . As indicated earlier , logistics application can be classified in terms of issues and actors . Other imported classifications based on various dimensions are :- 

a)  ---  Inbound Logistics and Outbound Logistics :  Most organization have to manage their outbound logistics  (i.e. physical distribution of their products to the customers from the factory) where as inbound logistics concerns itself with the purchasing function . The logistics of purchased product is generally managed by suppliers .  An obvious advantage of managing both inbound and outbound logistics is the possible cost saving when the two movements are coordinated  .

b)  ---  Private vs Public Sector :  The nature of ownership of the organization influences the objectives of organization and hence management of logistics . The choice of modes , transport…

Effect of Issuance of Multimodal Transport Document

The Issuance of  the Multimodal Transport Document confers and imposes on all parties having or acquiring hereafter an interest in the right/obligations and defences set out in the conditions mentioned in the document .

By the issuance of the Multimodal Transport Document the Multimodal Transport Operator ;

a)   -----Undertakes to perform and/or his own name to procure performance of the Multimodal Transport including all services which are necessary to such transport from the time of taking goods in charge to the time of delivery .

b)   -----Accept responsibility for the act of omission of his agents or servants , when such agents or servants are acting within their scope of their employment , as if such act and omission were own .

c)   -----Accept responsibility for the act and omission of any other person whose service he uses for the performance of contract evidenced by the Multimodal Transport Document .

d)   -----Undertakes to perform or to procure performance of all act necessary t…

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