VESSEL / CARGO DOCUMENTS

NOTE OF PROTEST(sea protest)

A NOTE OF PROTEST IS A SOLEMN DECLARATION MADE ON OATH BY A SHIPMASTER THAT CIRCUMSTANCES BEYOND HIS CONTROL HAVE, OR MAY HAVE GIVEN RISE TO LOSS AND OR DAMAGE TO HIS SHIP OR ITS CARGO, OR HAVE CAUSED HIM TO TAKE ACTION SUCH AS LEAVING AN UNSAFE PORT WHICH MAY RENDER HIS OWNERS LIABLE TO LEGAL ACTIONS BY ANOTHER PARTY.

WHEN TO MAKE NOTE OF PROTEST

1.      AFTER EVERY CASE OF GENERAL AVERAGE,

2.      AFTER WIND / SEA CONDITIONS HAVE BEEN ENCOUNTERED WHICH MAY HAVE DAMAGED CARGO,

3.      AFTER WIND / SEA CONDITIONS HAVE BEEN ENCOUNTERED WHICH MAY HAVE CAUSED FAILURE TO MAKE A CANCELLATION DATE,

4.      AFTER SHIP HAS BEEN DAMAGED FROM ANY CAUSE,

5.      AFTER A SERIOUS BREACH OF C/P BY THE CHARTERERS OR HIS AGENTS,

6.      AFTER A CONSIGNEE FAILS TO DISCHARGE OR TAKE DELIVERY OF THE CARGO OR FAILS TO PAY FREIGHT,

7.      IN CASES OF ACT OF PIRACY,

8.      WHERE CARGO CANNOT BE VENTILATED DUE TO ADVERSE WEATHER CONDITIONS LEADING TO DAMAGE TO CARGO,

9.      IF IN ORDER TO AVOID COLLISION AT ANCHOR, THE VESSEL SLIPS ANCHORS.

PROCEDURE FOR MAKING A PROTEST

1.      IT IS MADE BEFORE A NOTARY PUBLIC / MAGISTRATE / AUTHORISED LAWYER BY THE ADMINISTRATION.

2.      SHOULD BE MADE AS SOON AS POSSIBLE AFTER ARRIVING AND WITHIN 24 HOURS OF ARRIVAL,

3.      IF IT IS CARGO RELATED SHOULD BE MADE BEFORE BREAKING BULK,

DOCUMENTS TO BE ATTACHED:

1.      MASTER’S REPORT,

2.      REPORTS OF ANY OTHER OFFICERS ETC WHO ARE WITNESSES,

3.      CERTIFIED LOGBOOK ENTRIES,

4.      WEATHER REPORTS,

5.      PHOTOGRAPHIC EVIDENCE.

RESERVING RIGHT TO EXTEND PROTEST

SOMETIMES IT IS NOT POSSIBLE TO ASCERTAIN THE FULL EXTENT OF DAMAGE AT THE PLACE WHERE FIRST NOTE OF PROTEST IS LODGED, AN EXTENDED PROTEST MUST BE PLACED WHEN THE RELEVANT FACTS HAVE COME TO LIGHT, BASICALLY THE SURVEYOR’S REPORT. IN SUCH A CASE IT IS NECESSARY TO RESERVE THE RIGHT TO EXTEND THE PROTEST AT A TIME AND PLACE CONVENIENT WHILE LODGING THE ORIGINAL PROTEST. THE EXTENSION IS A CONTINUATION OF THE ORIGINAL PROTEST, IT CONTAINS THE BARE FACTS OF THE ORIGINAL PROTEST, AND AGAIN ANY RELEVANT DOCUMENTS SHOULD BE TAKEN TO NOTARY PUBLIC OFFICE. THE EXTENSION IS ENTERED, SIGNED, WITNESSED AND SEALED IN THE SAME MANNER AS THE INITIAL PROTEST.

LETTER OF PROTEST

1.      IT IS A WRITTEN COMMUNICATION INTENDED TO RECORD DISSATISFACTION ON THE PART OF ONE PARTY CONCERNING ANY OPERATIONAL MATTERS OVER WHICH THE RECIPENT OR OTHER PARTY HAS A CONTROL, AND HOLDING THE OTHER PARTY RESPONSIBLE FOR THE CONSEQUENCES OF THE MATTER BEING COMPLAINED OF.

2.      MAINLY USED IN CONNECTION WITH CARGO RELATED MATTERS, MOST COMPANIES HAVE THERE LETTER OF PROTEST IN THE OWN FORMAT.

3.      A LOP SHOULD BE TYPED OR HAND WRITTEN, SIGNED BY THE MASTER, WITH COPIES TO SHIP’S RECORDS, AGENTS AND THE OWNER.

WHEN TO MAKE LETTER OF PROTEST

1.      WHEN THERE IS DISCREPENCY BETWEEN SHIP’S FIGURES AND SHORE FIGURES,

2.      WHEN THE RATE OF LOADING IS TOO FAST OR TOO SLOW,

3.      WHEN BERTH OR FENDERING ARRANGEMENTS ARE INADEQUATE,

4.      WHEN SHOREMEN / DOCKMEN ARE MISUSING THE SHIP’S EQUIPMENT AND IGNORING DUTY OFFICER’S ADVICE,

5.      WHEN PASSING VESSEL CAUSES SURGING, WASH DAMAGE ETC WHILE LOADING AND DISCHARGING,

6.      IN ANY OTHER SITUATION IN WHICH THE MASTERS WISHES TO FORMAL RECORD HIS DISSATISFACTION WITH THE ARRANGEMENTS OVER WHICH THE OTHER PARTY HAS SOME CONTROL.

BILL OF LADING

FUNCTIONS OF B/L

1.      RECEIPT OF GOODS SHIPPED: THE PRIME FUNCTION OF THE B/L IS THE RECEIPT OF GOODS RECEIVED FOR SHIPMENT. IT STATES THE QUANTITY AND THE CONDITION OF CARGO ONBOARD. ANY REMARKS ABOU T THE CONDITION OF THE CARGO / CLAUSES ETC ARE FIRST ENTERED IN THE MATE’S RECEIPT AND THEN PRINTED IN THE B/L. IF IT CONTAINS REMARKS IT IS KNOWN AS A FOUL OR DIRTY OR CLAUSED B/L OTHERWISE IT IS KNOWN AS A CLEAN B/L.

2.      PRIME FACIE EVIDENCE OF CONTRACT: IF THE B/L IS MARKED “FREIGHT PAID” OR “FREIGHT PREPAID” THEN ONCE IT IS SIGNED IT BECOMES “PRIME FACIE” EVIDENCE OF CONTRACT OR A CONCLUSIVE EVIDENCE THAT THE FREIGHT HAS BEEN PAID. B/L IS NOT A CONTRACT, THE ACTUAL CONTRACT IS MADE BEFORE THE B/L, IT ONLY PROVIDES THAT AN EVIDENCE THAT A CONTRACT EXISTS. CONSIGNEE IS ENTITLED TO ASSUME THAT B/L CONTAINS ALL PARTICULARS OF CONTRACT AND A B/L SHOULD MAKE CLEAR THAT TERMS AND CONDITIONS OF CHARTER PARTY APPLY.

3.      DOCUMENT OF TITLE: POSSESSION OF ORIGINAL B/L IS EQUIVALENT TO POSSESSION OF GOODS DESCRIBED IN THE B/L. B/L IS A GOOD EVIDENCE THAT ITS HOLDER IS THE OWNER OF THE GOODS.

4.      QUASI-NEGOTIABLE DOCUMENT: AFTER SHIPMENT THE OWNERSHIP OF THE CARGO CAN BE SOLD OR ASSIGNED TO A THIRD PARTY BY NEGOTIATION OF A B/L. THIS IS DONE BY ENDORSEMENT ON THE BACK OF THE B/L WITH THE BUYERS NAME, WHICH IS KNOWN AS ENDORSES. ONLY NEGOTIABLE B/Ls ARE DOCUMENTS OF TITLE. B/L IS NOT A NEGOTIABLE DOCUMENT BECAUSE IT REPRESENTS GOODS AND NOT MONEY, BUT THE CONTRACT IT CONTAINS IS TRANSFERRED.

THE B/L CONTAINS DETAILS SUCH AS, NAMES AND ADDRESSES OF SHIPPER AND CONSIGNEE, PORTS OF LOADING AND DISCHARGING, MARKS, DESCRIPTION, WEIGHT AND VOLUME OF THE CARGO, NUMBER OF ORIGINALS AND COPIES, DATE OF LOADING AND NAME OF SHIP AND THE TERMS AND CONDITIONS OF CARRIAGE.

IT IS IMPORTANT THAT THE B/L MUST CONTAIN AS ACCURATE DESCRIPTION OF THE CONDITION OF CARGO, IT’S WEIGHT, QUANTITY AND QUALITY. IN CASE THE EXACT WEIGHT CANNOT BE DETERMINED IT SHOULD CONTAIN REMARKS SUCH AS “SAID TO WEIGH”, “SAID TO CONTAIN” etc. IF THE CONTENTS OF THE BOXES ARE UNKNOWN IT SHOULD STATE “CONTENTS OF THE PACKAGE UNKNOWN”. THE SHIPPER GENERALLY PREFERS A CLEAN B/LIN ORDER TO AVOID BANK DELAYS, THEY EVEN OFFER TO GIVE A LETTER OF INDEMNITY FOR THE CONDITION OF THE CARGO. THIS SHOULD BE AVOIDED AS A LETTER OF INDEMNITY HAS GOT NO LEGAL VALUE

TYPES OF B/L:

1.      CLEAN B/L: A B/L IS SAID TO BE A CLEAN B/L WHEN IT DOES NOT EXPRESSIVELY MENTION ANY DEFECTIVE CONDITION OF THE CARGO OR ITS PACKING.

2.      UNCLEAN / FOUL / DIRTY / CLAUSED B/L: A B/L WHICH IS NOT A CLEAN B/L.

3.      THROUGH B/L: SUCH B/Ls ARE COMMON WHEN THE CARGO IS CARRIED TO ITS COMMON DESTINATION PARTLY BY SEA AND PARTLY BY LAND OR BY TWO OR MORE VESSELS. THEY EVIDENCE A SINGLE CONTRACT BETWEEN THE SHIPPER AND THE PARTY ISSUING IT.

4.      STRAIGHT B/L: THIS TYPE OF B/L IS NON-NEGOTIABLE AND NOT TRANSFERABLE BY ENDORSEMENT. SUCH B/Ls ARE SOMETIMES ISSUED FOR HIGH VALUE GOODS WHICH HAVE TO BE DELIVERED TO A NAMED CONSIGNEE ONLY. UNDER THIS B/L THE CARRIER IS BOUND TO DELIVER GOODS TO THE ORIGINALLY NAMED CONSIGNEE WITHOUT PRODUCTION OF B/L.

DIFFERENCE BETWEEN THROUGH B/L AND COMBINED TRANSPORT B/L

	THROUGH B/L	COMBINED TRANSPORT B/L
1	MORE THAN ONE CARRIER INVOLVED	ONLY ONE CARRIER INVOLVED.
2	ONE TYPE OF CARRIAGE IS USED (SEA)	MORE THAN ONE TYPE OF CARRIAGE IS USED
3	THE ISSUER ACCEPTS RESPONSIBILITY ONLY FOR HIS LEG.	THE ISSUER ACCEPTS RESPONSIBILITY FOR THE FULL VOYAGE.
4	THE ISSUER ACTS AS A PRINCIPAL FOR HIS LEG OF VOYAGE AND AS AGENT BETWEEN THE SHIPPER AND OTHER CARRIERS FOR THE OTHER LEGS OF THE VOYAGE.	THE ISSUER ACTS AS A PRINCIPAL WITH RESPECT TO THE SHIPPER AND OTHER CARRIERS FOR THE ENTIRE VOYAGE.
5	THE ISSUER IS RESPONSIBLE ONLY FOR THE LOSS OR DAMAGE CAUSED DURING THE TIME THEY ARE IN HIS POSSESION.	THE ISSUER IS RESPONSIBLE FOR ANY LOSS OR DAMAGE CAUSED TO THE CARGO DURING THE ENTIRE VOYAGE.

MATE’S RECEIPT

THIS IS A RECEIPT SIGNED BY THE MATE OF A SHIP FOR CARGO THAT IS LOADED ONBOARD. IT CONTAINS DETAILS OF CARGO TO BE SHIPPED AND MUST BE MADE AVAILABLE TO THE MATE BEFORE THE CARGO IS LOADED. THE MATE CAN THEN USE IT AS:

1.      A PRE-ADVICE OF WHAT IS EXPECTED TO BE RECEIVED,

2.      TO PLAN A STOWAGE OF THE CARGO.

3.      TO NOTE ON THEM REMARKS REGARDING THE CONDITION OF THE CARGO, SHORTAGES, MARKS, DESCRIPTION ETC.

IT IS NECESSARY TO PUT REMARKS REGARDING THE CONDIITON OF THE CARGO SO AS TO AVOID UNNECCESSARY CLAIMS ON THE SHIP-OWNER AT THE DISCHARGE PORT. THE REMARKS ON THE MATE’S RECEIPT ARE TRANSFERRED ONTO THE BILLS OF LADING. IT IS GIVEN TO THE SHIPPER AS A RECEIPT WHO THEN TENDERS THEM TO THE AGENT OR SHIP-OWNER IN EXCHANGE FOR BILL OF LADING.

AGENT TO SIGN B/L

WHEN A MASTER SIGNS A B/L, HE IS DOING SO ON BEHALF OF THE SHIP OWNER. THE AGENT CAN SIGN THE B/L ON BEHALF OF THE MASTER IN A SITUATION WHEN THE VESSEL HAS ADOPTED EARLY DEPARTURE PROCEDURES AND SAILED OUT WITHOUT SIGNING THE B/L. IN SUCH A CASE THE MASTER MUST ISSUE A LETTER OF AUTHORISATION TO THE OWNER’S AGENT TO SIGN THE B/L ON BEHALF OF THE MASTER. BEFORE THE AGENT SIGNS THE B/L, THE MASTER SHOULD BE ADVISED OF THE CONTENTS OF THE B/L BY E-MAIL. A CLAUSE IN THE CHARTER PARTY EXPRESSLY AUTHORISES THE MASTER TO AUTHORISE THE AGENT TO SIGN THE B/L ON HIS BEHALF. SUCH A CLAUSE MIGHT READ “THE MASTER, CHARTERERS AND/OR THEIR AGENTS ARE HEREBY AUTHORISED BY THE OWNER TO SIGN ON MASTER’S AND/OR OWNER’S BEHALF BILLS OF LADING AS PRESENTED IN ACCORDANCE WITH MATE’S RECEIPTS WITHOUT PREJUDICE TO THIS CHARTER-PARTY”.

FOULED B/L AND LOI

THE BANK GENERALLY DEMANDS A FULL SET OF CLEAN B/L AS A CONDITION OF BANK’S LETTER OF CREDIT AND IF THE BANK GETS A FOULED B/L, THE EARLY PAYMENT BY THE BANK IS PREVENTED RESULTING IN DELAYS. THEREFORE MOST SHIPPERS OFFER A LETTER OF INDEMNITY TO THE MASTER TO SIGN CLEAN B/L. SUCH LOIs EVEN INDEMNIFY THE MASTER OR CARRIER OF ANY LOSS OR LIABILITY AS A CONSEQUENCE OF SIGNING A CLEAN B/L. SUCH A LETTER HAS GOT NO LEGAL VALUE AND ACCEPTANCE OF SUCH LETTER CAN MAKE THE MASTER A PARTY TO AN ACT OF FRAUS ON BANK, CONSIGNEE/BUYER AND INSURERS. THIS MAY RESULT IN PERSONAL CRIMINAL LIABILITY AND HEAVY FINANCIAL LIABILITY ON THE SHIPOWNER. SO IN CASE SUCH A LETTER IS PRESENTED TO THE MASTER, THE MASTER SHOULD CONSULT HIS OWNERS AND SEEK THERE HELP. HE SHOULD ALSO ASK FOR THE ATTENDANCE OF A P & I CLUB SURVEYOR BUT SHOULD NEVER ACCEPT SUCH A LETTER WITHOUT THE WRITTEN ORDERS FROM THE OWNERS.

SAME IS THE CASE WHEN THE CONSIGNEE REQUESTS THE VESSEL TO DISCHARGE CARGO WITHOUT AN ORIGINAL B/L GIVING THE VESSEL A LOI. THE MASTER SHOULD SEEK ADVICE FROM THE OWNERS AND IF REQUIRED THE P & I CLUB ALSO BUT SHOULD NEVER ACCEPT SUCH A LETTER OF INDEMNITY WITHOUT WRITTEN ORDERS FROM THE OWNERS.

P & I CLUBS (PROTECTION AND INDEMNITY CLUBS)

1.      THESE CLUBS ARE ASSOCIATIONS OF SHIP OWNERS TO PROVIDE COVER FOR ITEMS OF LIABILITY, WHICH CANNOT BE PROVIDED UNDER NORMAL H & M INSURANCE.

2.      A GROUP OF SHIPOWNERS WILL FORM A CLUB AND THIS CLUB IS GOVERNED BY PROFESSIONAL MANAGERS AND LAWYERS, UNDERWRITERS ETC.

3.      THESE CLUBS OPERATE ON A “NO PROFIT, NO LOSS BASIS”.

4.      EACH SHIPOWNER HAS TO MAKE A CONTRIBUTION ON THE BASIS OF TONNAGE, TYPES OF SHIPS AND PREVIOUS HISTORY OF THE SHIP OWNERS CLAIMS.

RISKS COVERED AND EXPENSES REIMBURSED BY P & I CLUB

1.      CREW INJURY / ILNESS / DEATH – HOSPITAL, SALARY, EXPENSES FOR REPATRIATION OF THE CREW MEMBER,

2.       INJURIES TO PASSENGERS / STEVEDORS,

3.      EXPENSES IN RESPECT OF STOWAWAYS,

4.      DEVIATION OF VESSEL TO LAND A SICK PERSON,

5.      DAMAGE TO CARGO DUE TO SHIP-OWNER’S FAULT,

6.      POLLUTION DAMAGE, CLAIMS, COMPENSATION,

7.      REMOVAL OF WRECK,

8.      EXPENSES FOR PERSONS SAVED AT SEA,

9.      FINES FOR CUSTOMS & IMMIGRATION VIOLATION,

10.  COLLISION LIABILITY TO OTHER VESSEL (1/4^TH),

11.  LIABILITY FOR DAMAGE BY CONTACT TO STATIONARY OBJECTS.

OTHER FUNCTIONS OF P & I CLUB

1.      IN CASE OF A DETENTION OF A VESSEL BY THE PORT AUTHORITY FOR THE FULL SETTLEMENT OF A CASE, A P& I CLUB GENERALLY GIVES A GUARANTEE THAT THE CLAIMS WILL BE PAID AT A LATER STAGE BUT PRESENTLY THE VESSEL MUST BE RELEASED SO THAT SHE CAN CONTINUE HER VOYAGE,

2.      THE P & I CLUB GIVES A CERTIFICATE OF GUARANTEE IN CASE OF ANY LIABILITIES DUE TO POLLUTION,

3.      PROVIDING WRECK REMOVAL CERTIFICATE,

4.      ADVICE TO SHIP OWNERS FOR MINIMISING THE CLAIMS IN CASE OF A LIABILITY ARISING OUT OF POLLUTION, AND OTHER INCIDENTS.