(1165,1,'2015-11-28 04:09:33','2015-11-28 04:09:33','<p class=\"p1\"><span class=\"s1\">Battery Systems on board ships have become an instrumental component in cost efficiency, complying with environmental regulations, and optimizing energy efficiency. All electric and hybrid ships with energy storage in large Li-ion batteries can provide significant reductions in fuel cost, maintenance and emissions as well as improved responsiveness, regularity and safety.</span></p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/11/HMS-Protector.jpg\"><img class=\"aligncenter size-full wp-image-1160\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/11/HMS-Protector.jpg\" alt=\"DNVGL\" width=\"800\" height=\"535\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">The importance of cleaner energy in shipping makes the use of batteries increasingly vital. In the future, most ships will probably be hybrid or plug-in hybrid. </span>DNV GL and ZEM have now joined forces to deliver a training course that introduces maritime battery systems and gives an overview of possibilities and challenges for hybrid and all electric propulsion in maritime power plants. Participants will be familiarised with different aspects of implementing battery systems onboard ships in a safe, economical and effective way.</p>\r\n<p class=\"p1\"><span class=\"s1\">The course covers the following points:</span></p>\r\n<p class=\"p1\">Why battery systems in the maritime sector?</p>\r\n<p class=\"p1\">Battery basics with focus on Li-ion technology</p>\r\n<p class=\"p1\">Main factors for a safe and cost effective battery system</p>\r\n<p class=\"p1\">Class requirements for battery systems</p>\r\n<p class=\"p1\">Risk analyses</p>\r\n<p class=\"p1\">Technical, economic and environmental related analyses</p>\r\n<p class=\"p1\"><span class=\"s1\">This 1-day <span style=\"color: #333333;\"><a style=\"color: #333333;\" href=\"https://www.dnvgl.com/training/maritime-battery-systems-introduction-course-44980\"><span class=\"s2\">“<span style=\"color: #3366ff;\">Maritime Battery Systems Introduction Course</span>”</span></a></span> will benefit technical staff, management, yards, suppliers, ship designers, consultants and anyone who has interest in the electrification and hybridization of the marine industry.</span></p>\r\n<p class=\"p1\">Photo credit: <span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https://www.flickr.com/photos/defenceimages/6147136519/\">Defence Images</a> / <a style=\"color: #3366ff;\" href=\"http://foter.com/\">Foter.com</a> / <a style=\"color: #3366ff;\" href=\"http://creativecommons.org/licenses/by-nc/2.0/\">CC BY-NC</a></span></p>','Maritime Battery Systems – get a first introduction to this new field','','inherit','open','open','','1159-revision-v1','','','2015-11-28 04:09:33','2015-11-28 04:09:33','',1159,'http://myseatime.com/blogadm/1159-revision-v1/',0,'revision','',0,0),(1166,1,'2015-11-28 04:48:37','2015-11-28 04:48:37','<p class=\"p1\"><span class=\"s1\"><b>Tokyo</b> – ClassNK  has released draft amendments to its rules and guidance for container carriers. The amendments were approved by the ClassNK Technical Committee in Tokyo on 19 November. </span>The ClassNK Technical Committee is made up of representatives from the shipping and shipbuilding industries as well as scholars and experts to discuss matters relating to the establishment and revision of technical rules and guidance.</p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/11/Container-Ship.jpg\"><img class=\"aligncenter size-full wp-image-1167\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/11/Container-Ship.jpg\" alt=\"Container Ship\" width=\"640\" height=\"428\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">In response to a large container ship casualty in June 2013, ClassNK established The Investigative Panel on Large Container Ship Safety, which comprised of shipbuilders, shipping companies, and people with relevant knowledge and experience, to investigate the possibility of casualty occurrence and the structural safety of large container carriers. The results from the investigation and ClassNK’s action plan were released in the Investigation Report on Structural Safety of Large Container Ships in September 2014.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">On the other hand, Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) Committee on Large Container Ship Safety released recommendations of requirements for large container ships in its Final Report in March 2015. </span>Furthermore, the International Association of Classification Societies (IACS) adopted the new Longitudinal Strength Standard for Container Ships (Unified Requirement S11A) and Functional Requirements on Load Cases for Strength Assessment of Container Ships by Finite Element Analysis (Unified Requirement S34).</p>\r\n<p class=\"p1\"><span class=\"s1\">Based on the IACS UR S11A and S34, and the reports released by ClassNK and Japan’s MLIT, ClassNK drafted amendments to its relevant rules and guidance. These amendments were then submitted to and approved by the ClassNK Technical Committee. </span>The development and implementation of more comprehensive rules demonstrates ClassNK’s commitment to building even safer ships. The amendments will come into effect after receiving approval from ClassNK’s Board of Directors. The rules are scheduled to apply to container ships contracted for construction on or after 1 April 2016, three months before the application of the IACS UR S11A and S34.</p>','ClassNK releases draft amendments to container ship rules','','publish','open','open','','classnk-releases-draft-amendments-to-container-ship-rules','','','2015-11-28 08:56:31','2015-11-28 08:56:31','',0,'http://myseatime.com/blogadm/?p=1166',0,'post','',0,72),(1167,1,'2015-11-28 04:48:17','2015-11-28 04:48:17','','Container Ship','','inherit','open','open','','container-ship','','','2015-11-28 04:48:17','2015-11-28 04:48:17','',1166,'http://myseatime.com/blogadm/wp-content/uploads/2015/11/Container-Ship.jpg',0,'attachment','image/jpeg',0,0),(1168,1,'2015-11-28 04:48:37','2015-11-28 04:48:37','<p class=\"p1\"><span class=\"s1\"><b>Tokyo</b> – ClassNK  has released draft amendments to its rules and guidance for container carriers. The amendments were approved by the ClassNK Technical Committee in Tokyo on 19 November.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The ClassNK Technical Committee is made up of representatives from the shipping and shipbuilding industries as well as scholars and experts to discuss matters relating to the establishment and revision of technical rules and guidance.</span></p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/11/Container-Ship.jpg\"><img class=\"aligncenter size-full wp-image-1167\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/11/Container-Ship.jpg\" alt=\"Container Ship\" width=\"640\" height=\"428\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">In response to a large container ship casualty in June 2013, ClassNK established The Investigative Panel on Large Container Ship Safety, which comprised of shipbuilders, shipping companies, and people with relevant knowledge and experience, to investigate the possibility of casualty occurrence and the structural safety of large container carriers. The results from the investigation and ClassNK’s action plan were released in the Investigation Report on Structural Safety of Large Container Ships in September 2014.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">On the other hand, Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) Committee on Large Container Ship Safety released recommendations of requirements for large container ships in its Final Report in March 2015.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">Furthermore, the International Association of Classification Societies (IACS) adopted the new Longitudinal Strength Standard for Container Ships (Unified Requirement S11A) and Functional Requirements on Load Cases for Strength Assessment of Container Ships by Finite Element Analysis (Unified Requirement S34).</span></p>\r\n<p class=\"p1\"><span class=\"s1\">Based on the IACS UR S11A and S34, and the reports released by ClassNK and Japan’s MLIT, ClassNK drafted amendments to its relevant rules and guidance. These amendments were then submitted to and approved by the ClassNK Technical Committee.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The development and implementation of more comprehensive rules demonstrates ClassNK’s commitment to building even safer ships. The amendments will come into effect after receiving approval from ClassNK’s Board of Directors. The rules are scheduled to apply to container ships contracted for construction on or after 1 April 2016, three months before the application of the IACS UR S11A and S34.</span></p>','ClassNK releases draft amendments to container ship rules','','inherit','open','open','','1166-revision-v1','','','2015-11-28 04:48:37','2015-11-28 04:48:37','',1166,'http://myseatime.com/blogadm/1166-revision-v1/',0,'revision','',0,0),(1169,1,'2015-11-28 08:55:51','2015-11-28 08:55:51','<p class=\"p1\"><span class=\"s1\"><b>Tokyo</b> – ClassNK  has released draft amendments to its rules and guidance for container carriers. The amendments were approved by the ClassNK Technical Committee in Tokyo on 19 November. </span>The ClassNK Technical Committee is made up of representatives from the shipping and shipbuilding industries as well as scholars and experts to discuss matters relating to the establishment and revision of technical rules and guidance.</p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/11/Container-Ship.jpg\"><img class=\"aligncenter size-full wp-image-1167\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/11/Container-Ship.jpg\" alt=\"Container Ship\" width=\"640\" height=\"428\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">In response to a large container ship casualty in June 2013, ClassNK established The Investigative Panel on Large Container Ship Safety, which comprised of shipbuilders, shipping companies, and people with relevant knowledge and experience, to investigate the possibility of casualty occurrence and the structural safety of large container carriers. The results from the investigation and ClassNK’s action plan were released in the Investigation Report on Structural Safety of Large Container Ships in September 2014.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">On the other hand, Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) Committee on Large Container Ship Safety released recommendations of requirements for large container ships in its Final Report in March 2015.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">Furthermore, the International Association of Classification Societies (IACS) adopted the new Longitudinal Strength Standard for Container Ships (Unified Requirement S11A) and Functional Requirements on Load Cases for Strength Assessment of Container Ships by Finite Element Analysis (Unified Requirement S34).</span></p>\r\n<p class=\"p1\"><span class=\"s1\">Based on the IACS UR S11A and S34, and the reports released by ClassNK and Japan’s MLIT, ClassNK drafted amendments to its relevant rules and guidance. These amendments were then submitted to and approved by the ClassNK Technical Committee.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The development and implementation of more comprehensive rules demonstrates ClassNK’s commitment to building even safer ships. The amendments will come into effect after receiving approval from ClassNK’s Board of Directors. The rules are scheduled to apply to container ships contracted for construction on or after 1 April 2016, three months before the application of the IACS UR S11A and S34.</span></p>','ClassNK releases draft amendments to container ship rules','','inherit','open','open','','1166-revision-v1','','','2015-11-28 08:55:51','2015-11-28 08:55:51','',1166,'http://myseatime.com/blogadm/1166-revision-v1/',0,'revision','',0,0),(1170,1,'2015-11-28 08:56:31','2015-11-28 08:56:31','<p class=\"p1\"><span class=\"s1\"><b>Tokyo</b> – ClassNK  has released draft amendments to its rules and guidance for container carriers. The amendments were approved by the ClassNK Technical Committee in Tokyo on 19 November. </span>The ClassNK Technical Committee is made up of representatives from the shipping and shipbuilding industries as well as scholars and experts to discuss matters relating to the establishment and revision of technical rules and guidance.</p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/11/Container-Ship.jpg\"><img class=\"aligncenter size-full wp-image-1167\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/11/Container-Ship.jpg\" alt=\"Container Ship\" width=\"640\" height=\"428\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">In response to a large container ship casualty in June 2013, ClassNK established The Investigative Panel on Large Container Ship Safety, which comprised of shipbuilders, shipping companies, and people with relevant knowledge and experience, to investigate the possibility of casualty occurrence and the structural safety of large container carriers. The results from the investigation and ClassNK’s action plan were released in the Investigation Report on Structural Safety of Large Container Ships in September 2014.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">On the other hand, Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) Committee on Large Container Ship Safety released recommendations of requirements for large container ships in its Final Report in March 2015. </span>Furthermore, the International Association of Classification Societies (IACS) adopted the new Longitudinal Strength Standard for Container Ships (Unified Requirement S11A) and Functional Requirements on Load Cases for Strength Assessment of Container Ships by Finite Element Analysis (Unified Requirement S34).</p>\r\n<p class=\"p1\"><span class=\"s1\">Based on the IACS UR S11A and S34, and the reports released by ClassNK and Japan’s MLIT, ClassNK drafted amendments to its relevant rules and guidance. These amendments were then submitted to and approved by the ClassNK Technical Committee. </span>The development and implementation of more comprehensive rules demonstrates ClassNK’s commitment to building even safer ships. The amendments will come into effect after receiving approval from ClassNK’s Board of Directors. The rules are scheduled to apply to container ships contracted for construction on or after 1 April 2016, three months before the application of the IACS UR S11A and S34.</p>','ClassNK releases draft amendments to container ship rules','','inherit','open','open','','1166-revision-v1','','','2015-11-28 08:56:31','2015-11-28 08:56:31','',1166,'http://myseatime.com/blogadm/1166-revision-v1/',0,'revision','',0,0),(1171,1,'2015-11-28 09:41:55','2015-11-28 09:41:55','Emergency batteries as well as GMDSS batteries onboard serve a very Important function. During a black out, emergency generator need some power source to start automatically and emergency batteries feed this required power to the emergency generator. If the emergency batteries are week, your emergency generator may not start automatically and you would then need to start the emergency generator manually from emergency generator room. In figuring out why emergency generator did not start and then starting the emergency generator locally can take away vital time which may result in disastrous situations.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/04/off-grid-battery-rolls-for-cabo-san-lucas_opt.jpg\"><img class=\"aligncenter size-full wp-image-1001\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/04/off-grid-battery-rolls-for-cabo-san-lucas_opt.jpg\" alt=\"emergency batteries\" width=\"750\" height=\"499\" /></a>\r\n\r\nNow monthly testing of emergency generators does not guarantee that emergency batteries are good as in this case, batteries are on continuous charging state and thus can provide the required power source to the emergency generator. So how do we know if our emergency batteries are good and will start the emergency generator when required ? Apart from checking the health of the batteries, load test of the emergency generator does exactly that. Usually this load test is required to be done quarterly and it is very important that this load test is done religiously. The rationale behind the load test should be to take away the main power source from the emergency generator and then blacking out to see if the emergency generator starts automatically.\r\n\r\nComing to GMDSS batteries now. As per SOLAS GMDSS batteries are required to provide power to operate GMDSS for\r\n\r\n- 1 hour in case GMDSS has the power from emergency generators\r\n- 6 hours in case GMDSS does not have the power from emergency generators.\r\n\r\nNow how do we test the GMDSS batteries to be sure that these won’t die down before the required time. Some of us confuse this test with the On load/Off load daily test of the batteries. They argue that we need to switch off the AC power to GMDSS and operate the GMDSS for 1 hour (or 6 hours) to see if it can operate for around that time. But this is not correct.\r\n\r\nIdeally, the specifications of the required batteries is given during the yard delivery of the vessel and so far we have renewed the batteries with same specifications, we can be sure that the batteries would last for the required period except if the capacity of the batteries has reduced during the life of the batteries. To be sure that the capacity of the GMDSS batteries is OK, a capacity test is required to be done annually. This is very important test which ensures that in emergency &amp; when required your GMDSS batteries would last upto the required time.\r\n\r\nWishing you all fair winds following seas.','Are your emergency & GMDSS batteries in good shape ?','','inherit','open','open','','1000-revision-v1','','','2015-11-28 09:41:55','2015-11-28 09:41:55','',1000,'http://myseatime.com/blogadm/1000-revision-v1/',0,'revision','',0,0),(1172,1,'2015-11-28 09:44:05','2015-11-28 09:44:05','Pilot embarkation &amp; disembarkation is very routine but risky operation. Unfortunately even though many Pilot ladders incidents are easy to avoid, these keeps showing up on vessels. The principle requirement for the pilot ladders is governed by chapter V of the SOLAS. Most if not all must have seen the IMPA poster for the “boarding arrangements for the pilots onboard”. This can be downloaded from <a href=\"http://www.impahq.com\">www.impahq.com</a> and is also available in the bridge procedure guide.\r\n<p style=\"text-align: left;\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/04/pilot.jpg\"><img class=\"aligncenter size-full wp-image-929\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/04/pilot.jpg\" alt=\"pilot\" width=\"1024\" height=\"683\" /></a></p>\r\n<p style=\"text-align: left;\"><span style=\"color: #000000;\"><b>Why these accidents ?</b></span></p>\r\nThere are number of reason for these accidents &amp; I wish to sum these up as following\r\n\r\n- Parting of the pilot ladder rope.\r\n- Incorrect rigging of the pilot ladder\r\n- Pilot ladder made of Incorrect specifications or use of damaged pilot ladders\r\n<p style=\"text-align: left;\"><span style=\"color: #000000;\"><b>Parting of the pilot ladder rope</b></span></p>\r\nNow most of the pilot ladder incident that occur are usually parting of either the ladder rope or the side ropes. Why do these rope part and what can be done to avoid this ?\r\n\r\nUse of Manila rope is one of the requirement for pilot ladders. Manila rope has absorbing quality, that make it the first choice for stage rigging and thus pilot ladders. But this quality is also a concern when it comes to absorbing sea water and sunlight which may harden it or rot it over longer period of exposure. Now this can sometime trick a seaman. A manila rope which might look in excellent condition but which has been exposed to sunlight, sea water or even chemicals might have lost its internal strength. Apart from the negligence of the seafarers to inspect and discard an obvious damaged rope and pilot ladder, a bad rope with excellent visual condition can also be the cause of pilot ladder ropes giving way.\r\n\r\nThe best way to avoid degrading of the pilot ladder rope is to minimise its exposure to seawater, sunlight and chemicals by securing it nicely when not required. In the new rules and SOLAS amendments, it is now required\r\n\r\n- to have inspection records  for the pilot ladders.\r\n- Pilot ladders must be certified by the manufacturer to be complying with International standards. (Ship staff should make sure they have ladder tag as well as pilot ladder certificate onboard).\r\n\r\nHowever considering visual inspection of manila ropes used in pilot ladder can sometimes give false indication of its condition &amp; strength, the author is of the opinion that pilot ladder should be changed with new one after a fixed interval of time, irrespective of its condition.\r\n<p style=\"text-align: left;\"><span style=\"color: #000000;\"><b>Incorrect rigging of the pilot ladder</b></span></p>\r\nAnother cause of these accidents is incorrect rigging of the pilot ladders and there are couple of mistakes that ship staff can make. First is using ropes instead of shackles to secure the ladder on the ship’s deck. Second is pilot ladder step resting on the fish plate which can snap down once someone puts his weight on the pilot ladder and third is inappropriately securing the ends of pilot ladder on ship’s deck (like resting the pilot ladder step on some of the ship’s structure. Pilot would be lucky if he gets warning for inappropriate securing of pilot ladder after climbing for few steps but there have been incidents where pilot did fall from considerable height.\r\n<p style=\"text-align: left;\"><span style=\"color: #000000;\"><b>Use of damaged  or inappropriate pilot ladder</b></span></p>\r\nThe photos says it all and we all know that these are not what ship staff have to offer to pilots for boarding, but pilots do come across these situations sometimes. See for example the photo where a kind of ladder was permanently made in the ship side for person transfer.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/04/pilot1.jpg\"><img class=\"aligncenter size-full wp-image-931\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/04/pilot1.jpg\" alt=\"pilot1\" width=\"700\" height=\"600\" /></a>\r\n\r\nThese may not be very common but one can come across these specially on coastal ships plying in fixed ports. Irrespective of the trade &amp; size of the ships these kind of arrangement are risky and should strictly be avoided.\r\n<p style=\"text-align: left;\"><strong>Best Practices</strong></p>\r\nAll these incidents can be avoided by having a set of best practices related to use of pilot ladders.\r\n\r\n- Pilot ladders onboard should be of correct specification and ship staff should have certificates for the pilot ladders onboard.\r\n- Pilot ladders should be secured when not in use.\r\n- Exposure to sunlight and seawater should be minimised as far as possible. On longer voyages, the pilot ladder should be kept under shelter such as in deck store.\r\n- The condition of ladder ropes, steps as well as other fittings should be checked at least monthly and before use.\r\n- Before arrival to a port, the ladders on both sides should be cleared off ready for deployment, if when pilot requests ladder on one side. This would avoid mistakes if crew has to place pilot ladder on the other side on last minute request from pilot.\r\n\r\nAny other point that I missed to address regarding pilot ladders ?\r\n\r\nWishing you all fair winds &amp; following seas.','Pilot Ladders: First sign of vessel’s safety standards ?','','inherit','open','open','','926-revision-v1','','','2015-11-28 09:44:05','2015-11-28 09:44:05','',926,'http://myseatime.com/blogadm/926-revision-v1/',0,'revision','',0,0),(1173,1,'2015-11-28 09:48:16','2015-11-28 09:48:16','Pilot embarkation &amp; disembarkation is very routine but risky operation. Unfortunately even though many Pilot ladders incidents are easy to avoid, these keeps showing up on vessels. The principle requirement for the pilot ladders is governed by chapter V of the SOLAS. Most if not all must have seen the IMPA poster for the “boarding arrangements for the pilots onboard”. This can be downloaded from <a href=\"http://www.impahq.com\">www.impahq.com</a> and is also available in the bridge procedure guide.\r\n<p style=\"text-align: left;\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/04/pilot-e1448704008710.jpg\"><img class=\"aligncenter size-full wp-image-929\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/04/pilot-e1448704008710.jpg\" alt=\"pilot\" width=\"800\" height=\"534\" /></a></p>\r\n<p style=\"text-align: left;\"><span style=\"color: #000000;\"><b>Why these accidents ?</b></span></p>\r\nThere are number of reason for these accidents &amp; I wish to sum these up as following\r\n\r\n- Parting of the pilot ladder rope.\r\n- Incorrect rigging of the pilot ladder\r\n- Pilot ladder made of Incorrect specifications or use of damaged pilot ladders\r\n<p style=\"text-align: left;\"><span style=\"color: #000000;\"><b>Parting of the pilot ladder rope</b></span></p>\r\nNow most of the pilot ladder incident that occur are usually parting of either the ladder rope or the side ropes. Why do these rope part and what can be done to avoid this ?\r\n\r\nUse of Manila rope is one of the requirement for pilot ladders. Manila rope has absorbing quality, that make it the first choice for stage rigging and thus pilot ladders. But this quality is also a concern when it comes to absorbing sea water and sunlight which may harden it or rot it over longer period of exposure. Now this can sometime trick a seaman. A manila rope which might look in excellent condition but which has been exposed to sunlight, sea water or even chemicals might have lost its internal strength. Apart from the negligence of the seafarers to inspect and discard an obvious damaged rope and pilot ladder, a bad rope with excellent visual condition can also be the cause of pilot ladder ropes giving way.\r\n\r\nThe best way to avoid degrading of the pilot ladder rope is to minimise its exposure to seawater, sunlight and chemicals by securing it nicely when not required. In the new rules and SOLAS amendments, it is now required\r\n\r\n- to have inspection records  for the pilot ladders.\r\n- Pilot ladders must be certified by the manufacturer to be complying with International standards. (Ship staff should make sure they have ladder tag as well as pilot ladder certificate onboard).\r\n\r\nHowever considering visual inspection of manila ropes used in pilot ladder can sometimes give false indication of its condition &amp; strength, the author is of the opinion that pilot ladder should be changed with new one after a fixed interval of time, irrespective of its condition.\r\n<p style=\"text-align: left;\"><span style=\"color: #000000;\"><b>Incorrect rigging of the pilot ladder</b></span></p>\r\nAnother cause of these accidents is incorrect rigging of the pilot ladders and there are couple of mistakes that ship staff can make. First is using ropes instead of shackles to secure the ladder on the ship’s deck. Second is pilot ladder step resting on the fish plate which can snap down once someone puts his weight on the pilot ladder and third is inappropriately securing the ends of pilot ladder on ship’s deck (like resting the pilot ladder step on some of the ship’s structure. Pilot would be lucky if he gets warning for inappropriate securing of pilot ladder after climbing for few steps but there have been incidents where pilot did fall from considerable height.\r\n<p style=\"text-align: left;\"><span style=\"color: #000000;\"><b>Use of damaged  or inappropriate pilot ladder</b></span></p>\r\nThe photos says it all and we all know that these are not what ship staff have to offer to pilots for boarding, but pilots do come across these situations sometimes. See for example the photo where a kind of ladder was permanently made in the ship side for person transfer.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/04/pilot1.jpg\"><img class=\"aligncenter size-full wp-image-931\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/04/pilot1.jpg\" alt=\"pilot1\" width=\"700\" height=\"600\" /></a>\r\n\r\nThese may not be very common but one can come across these specially on coastal ships plying in fixed ports. Irrespective of the trade &amp; size of the ships these kind of arrangement are risky and should strictly be avoided.\r\n<p style=\"text-align: left;\"><strong>Best Practices</strong></p>\r\nAll these incidents can be avoided by having a set of best practices related to use of pilot ladders.\r\n\r\n- Pilot ladders onboard should be of correct specification and ship staff should have certificates for the pilot ladders onboard.\r\n- Pilot ladders should be secured when not in use.\r\n- Exposure to sunlight and seawater should be minimised as far as possible. On longer voyages, the pilot ladder should be kept under shelter such as in deck store.\r\n- The condition of ladder ropes, steps as well as other fittings should be checked at least monthly and before use.\r\n- Before arrival to a port, the ladders on both sides should be cleared off ready for deployment, if when pilot requests ladder on one side. This would avoid mistakes if crew has to place pilot ladder on the other side on last minute request from pilot.\r\n\r\nAny other point that I missed to address regarding pilot ladders ?\r\n\r\nWishing you all fair winds &amp; following seas.','Pilot Ladders: First sign of vessel’s safety standards ?','','inherit','open','open','','926-revision-v1','','','2015-11-28 09:48:16','2015-11-28 09:48:16','',926,'http://myseatime.com/blogadm/926-revision-v1/',0,'revision','',0,0),(1174,3,'2015-11-30 06:09:48','2015-11-30 06:09:48','<p class=\"p1\"><span class=\"s1\">The Assembly of the International Maritime Organization has elected the following States to be Members of its Council for the 2016-2017 biennium:\r\nCategory (a) 10 States with the largest interest in providing international shipping services:  </span>China, Greece, Italy, Japan, Norway, Panama, Republic of Korea, Russian Federation, United Kingdom, United States.</span></p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/11/IMO-Assembly-2015.jpg\"><img class=\"aligncenter size-full wp-image-1175\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/11/IMO-Assembly-2015.jpg\" alt=\"IMO Assembly 2015\" width=\"800\" height=\"534\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">Category (b) 10 States with the largest interest in international seaborne trade:  </span>Argentina, Bangladesh, Brazil, Canada, France, Germany, India, Netherlands, Spain, Sweden.</p>\r\n<p class=\"p1\"><span class=\"s1\">Category (c) 20 States not elected under (a) or (b) above, which have special interests in maritime transport or navigation and whose election to the Council will ensure the representation of all major geographic areas of the world:  </span>Australia, Bahamas, Belgium, Chile, Cyprus, Denmark, Egypt, Indonesia, Kenya, Liberia, Malaysia, Malta, Mexico, Morocco, Peru, Philippines, Singapore, South Africa, Thailand, Turkey.</p>\r\n<p class=\"p1\"><span class=\"s1\"> </span><b>Council</b></p>\r\n<p class=\"p1\"><span class=\"s1\">The Council is the executive organ of IMO and is responsible, under the Assembly, for supervising the work of the Organization.  Between sessions of the Assembly, the Council performs all the functions of the Assembly, except that of making recommendations to Governments on maritime safety and pollution prevention.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The newly elected Council will meet, following the conclusion of the 29th Assembly, for its 115th session (on 3 December) and will elect its Chairman and Vice-Chairman for the next biennium.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"><b>IMO Assembly </b></span></p>\r\n<p class=\"p1\"><span class=\"s1\">The 29th Assembly of IMO is meeting in London at IMO Headquarters from 23 November to 2 December 2015. All 171 Member States and three Associate Members are entitled to attend the Assembly, which is IMO’s highest governing body. The intergovernmental organizations with which agreements of co-operation have been concluded and international non-governmental organizations in consultative status with IMO are also invited to attend.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The Assembly normally meets once every two years in regular session. It is responsible for approving the work programme, voting the budget and determining the financial arrangements of the Organization. It also elects the Organization’s 40-Member Council.</span></p>','IMO Assembly elects new 40-Member Council','','publish','open','open','','imo-assembly-elects-new-40-member-council','','','2015-12-01 08:20:06','2015-12-01 08:20:06','',0,'http://myseatime.com/blogadm/?p=1174',0,'post','',0,62),(1175,1,'2015-11-30 06:08:57','2015-11-30 06:08:57','','IMO Assembly 2015','','inherit','open','open','','imo-assembly-2015','','','2015-11-30 06:09:12','2015-11-30 06:09:12','',1174,'http://myseatime.com/blogadm/wp-content/uploads/2015/11/IMO-Assembly-2015.jpg',0,'attachment','image/jpeg',0,0),(1176,1,'2015-11-30 06:09:48','2015-11-30 06:09:48','<p class=\"p1\"><span class=\"s1\">The Assembly of the International Maritime Organization has elected the following States to be Members of its Council for the 2016-2017 biennium:</span></p>\r\n<p class=\"p1\"><span class=\"s1\">Category (a) 10 States with the largest interest in providing international shipping services:  </span>China, Greece, Italy, Japan, Norway, Panama, Republic of Korea, Russian Federation, United Kingdom, United States.</p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/11/IMO-Assembly-2015.jpg\"><img class=\"aligncenter size-full wp-image-1175\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/11/IMO-Assembly-2015.jpg\" alt=\"IMO Assembly 2015\" width=\"800\" height=\"534\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">Category (b) 10 States with the largest interest in international seaborne trade:  </span>Argentina, Bangladesh, Brazil, Canada, France, Germany, India, Netherlands, Spain, Sweden.</p>\r\n<p class=\"p1\"><span class=\"s1\">Category (c) 20 States not elected under (a) or (b) above, which have special interests in maritime transport or navigation and whose election to the Council will ensure the representation of all major geographic areas of the world:  </span>Australia, Bahamas, Belgium, Chile, Cyprus, Denmark, Egypt, Indonesia, Kenya, Liberia, Malaysia, Malta, Mexico, Morocco, Peru, Philippines, Singapore, South Africa, Thailand, Turkey.</p>\r\n<p class=\"p1\"><span class=\"s1\"> </span><b>Council</b></p>\r\n<p class=\"p1\"><span class=\"s1\">The Council is the executive organ of IMO and is responsible, under the Assembly, for supervising the work of the Organization.  Between sessions of the Assembly, the Council performs all the functions of the Assembly, except that of making recommendations to Governments on maritime safety and pollution prevention.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The newly elected Council will meet, following the conclusion of the 29th Assembly, for its 115th session (on 3 December) and will elect its Chairman and Vice-Chairman for the next biennium.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"><b>IMO Assembly </b></span></p>\r\n<p class=\"p1\"><span class=\"s1\">The 29th Assembly of IMO is meeting in London at IMO Headquarters from 23 November to 2 December 2015. All 171 Member States and three Associate Members are entitled to attend the Assembly, which is IMO’s highest governing body. The intergovernmental organizations with which agreements of co-operation have been concluded and international non-governmental organizations in consultative status with IMO are also invited to attend.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The Assembly normally meets once every two years in regular session. It is responsible for approving the work programme, voting the budget and determining the financial arrangements of the Organization. It also elects the Organization’s 40-Member Council.</span></p>','IMO Assembly elects new 40-Member Council','','inherit','open','open','','1174-revision-v1','','','2015-11-30 06:09:48','2015-11-30 06:09:48','',1174,'http://myseatime.com/blogadm/1174-revision-v1/',0,'revision','',0,0),(1177,1,'2015-12-01 08:18:49','2015-12-01 08:18:49','<p class=\"p1\"><span class=\"s1\">The Assembly of the International Maritime Organization has elected the following States to be Members of its Council for the 2016-2017 biennium:</span></p>\n<span class=\"s1\">Category (a) 10 States with the largest interest in providing international shipping services:  </span>China, Greece, Italy, Japan, Norway, Panama, Republic of Korea, Russian Federation, United Kingdom, United States.</p>\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/11/IMO-Assembly-2015.jpg\"><img class=\"aligncenter size-full wp-image-1175\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/11/IMO-Assembly-2015.jpg\" alt=\"IMO Assembly 2015\" width=\"800\" height=\"534\" /></a></p>\n<p class=\"p1\"><span class=\"s1\">Category (b) 10 States with the largest interest in international seaborne trade:  </span>Argentina, Bangladesh, Brazil, Canada, France, Germany, India, Netherlands, Spain, Sweden.</p>\n<p class=\"p1\"><span class=\"s1\">Category (c) 20 States not elected under (a) or (b) above, which have special interests in maritime transport or navigation and whose election to the Council will ensure the representation of all major geographic areas of the world:  </span>Australia, Bahamas, Belgium, Chile, Cyprus, Denmark, Egypt, Indonesia, Kenya, Liberia, Malaysia, Malta, Mexico, Morocco, Peru, Philippines, Singapore, South Africa, Thailand, Turkey.</p>\n<p class=\"p1\"><span class=\"s1\"> </span><b>Council</b></p>\n<p class=\"p1\"><span class=\"s1\">The Council is the executive organ of IMO and is responsible, under the Assembly, for supervising the work of the Organization.  Between sessions of the Assembly, the Council performs all the functions of the Assembly, except that of making recommendations to Governments on maritime safety and pollution prevention.</span></p>\n<p class=\"p1\"><span class=\"s1\">The newly elected Council will meet, following the conclusion of the 29th Assembly, for its 115th session (on 3 December) and will elect its Chairman and Vice-Chairman for the next biennium.</span></p>\n<p class=\"p1\"><span class=\"s1\"><b>IMO Assembly </b></span></p>\n<p class=\"p1\"><span class=\"s1\">The 29th Assembly of IMO is meeting in London at IMO Headquarters from 23 November to 2 December 2015. All 171 Member States and three Associate Members are entitled to attend the Assembly, which is IMO’s highest governing body. The intergovernmental organizations with which agreements of co-operation have been concluded and international non-governmental organizations in consultative status with IMO are also invited to attend.</span></p>\n<p class=\"p1\"><span class=\"s1\">The Assembly normally meets once every two years in regular session. It is responsible for approving the work programme, voting the budget and determining the financial arrangements of the Organization. It also elects the Organization’s 40-Member Council.</span></p>','IMO Assembly elects new 40-Member Council','','inherit','open','open','','1174-autosave-v1','','','2015-12-01 08:18:49','2015-12-01 08:18:49','',1174,'http://myseatime.com/blogadm/1174-autosave-v1/',0,'revision','',0,0),(1178,1,'2015-12-01 08:19:10','2015-12-01 08:19:10','<p class=\"p1\"><span class=\"s1\">The Assembly of the International Maritime Organization has elected the following States to be Members of its Council for the 2016-2017 biennium:</span></p>\r\n<span class=\"s1\">Category (a) 10 States with the largest interest in providing international shipping services:  </span>China, Greece, Italy, Japan, Norway, Panama, Republic of Korea, Russian Federation, United Kingdom, United States.\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/11/IMO-Assembly-2015.jpg\"><img class=\"aligncenter size-full wp-image-1175\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/11/IMO-Assembly-2015.jpg\" alt=\"IMO Assembly 2015\" width=\"800\" height=\"534\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">Category (b) 10 States with the largest interest in international seaborne trade:  </span>Argentina, Bangladesh, Brazil, Canada, France, Germany, India, Netherlands, Spain, Sweden.</p>\r\n<p class=\"p1\"><span class=\"s1\">Category (c) 20 States not elected under (a) or (b) above, which have special interests in maritime transport or navigation and whose election to the Council will ensure the representation of all major geographic areas of the world:  </span>Australia, Bahamas, Belgium, Chile, Cyprus, Denmark, Egypt, Indonesia, Kenya, Liberia, Malaysia, Malta, Mexico, Morocco, Peru, Philippines, Singapore, South Africa, Thailand, Turkey.</p>\r\n<p class=\"p1\"><span class=\"s1\"> </span><b>Council</b></p>\r\n<p class=\"p1\"><span class=\"s1\">The Council is the executive organ of IMO and is responsible, under the Assembly, for supervising the work of the Organization.  Between sessions of the Assembly, the Council performs all the functions of the Assembly, except that of making recommendations to Governments on maritime safety and pollution prevention.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The newly elected Council will meet, following the conclusion of the 29th Assembly, for its 115th session (on 3 December) and will elect its Chairman and Vice-Chairman for the next biennium.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"><b>IMO Assembly </b></span></p>\r\n<p class=\"p1\"><span class=\"s1\">The 29th Assembly of IMO is meeting in London at IMO Headquarters from 23 November to 2 December 2015. All 171 Member States and three Associate Members are entitled to attend the Assembly, which is IMO’s highest governing body. The intergovernmental organizations with which agreements of co-operation have been concluded and international non-governmental organizations in consultative status with IMO are also invited to attend.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The Assembly normally meets once every two years in regular session. It is responsible for approving the work programme, voting the budget and determining the financial arrangements of the Organization. It also elects the Organization’s 40-Member Council.</span></p>','IMO Assembly elects new 40-Member Council','','inherit','open','open','','1174-revision-v1','','','2015-12-01 08:19:10','2015-12-01 08:19:10','',1174,'http://myseatime.com/blogadm/1174-revision-v1/',0,'revision','',0,0),(1179,1,'2015-12-01 08:20:06','2015-12-01 08:20:06','<p class=\"p1\"><span class=\"s1\">The Assembly of the International Maritime Organization has elected the following States to be Members of its Council for the 2016-2017 biennium:\r\nCategory (a) 10 States with the largest interest in providing international shipping services:  </span>China, Greece, Italy, Japan, Norway, Panama, Republic of Korea, Russian Federation, United Kingdom, United States.</span></p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/11/IMO-Assembly-2015.jpg\"><img class=\"aligncenter size-full wp-image-1175\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/11/IMO-Assembly-2015.jpg\" alt=\"IMO Assembly 2015\" width=\"800\" height=\"534\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">Category (b) 10 States with the largest interest in international seaborne trade:  </span>Argentina, Bangladesh, Brazil, Canada, France, Germany, India, Netherlands, Spain, Sweden.</p>\r\n<p class=\"p1\"><span class=\"s1\">Category (c) 20 States not elected under (a) or (b) above, which have special interests in maritime transport or navigation and whose election to the Council will ensure the representation of all major geographic areas of the world:  </span>Australia, Bahamas, Belgium, Chile, Cyprus, Denmark, Egypt, Indonesia, Kenya, Liberia, Malaysia, Malta, Mexico, Morocco, Peru, Philippines, Singapore, South Africa, Thailand, Turkey.</p>\r\n<p class=\"p1\"><span class=\"s1\"> </span><b>Council</b></p>\r\n<p class=\"p1\"><span class=\"s1\">The Council is the executive organ of IMO and is responsible, under the Assembly, for supervising the work of the Organization.  Between sessions of the Assembly, the Council performs all the functions of the Assembly, except that of making recommendations to Governments on maritime safety and pollution prevention.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The newly elected Council will meet, following the conclusion of the 29th Assembly, for its 115th session (on 3 December) and will elect its Chairman and Vice-Chairman for the next biennium.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"><b>IMO Assembly </b></span></p>\r\n<p class=\"p1\"><span class=\"s1\">The 29th Assembly of IMO is meeting in London at IMO Headquarters from 23 November to 2 December 2015. All 171 Member States and three Associate Members are entitled to attend the Assembly, which is IMO’s highest governing body. The intergovernmental organizations with which agreements of co-operation have been concluded and international non-governmental organizations in consultative status with IMO are also invited to attend.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The Assembly normally meets once every two years in regular session. It is responsible for approving the work programme, voting the budget and determining the financial arrangements of the Organization. It also elects the Organization’s 40-Member Council.</span></p>','IMO Assembly elects new 40-Member Council','','inherit','open','open','','1174-revision-v1','','','2015-12-01 08:20:06','2015-12-01 08:20:06','',1174,'http://myseatime.com/blogadm/1174-revision-v1/',0,'revision','',0,0),(1180,1,'2015-12-01 08:38:06','2015-12-01 08:38:06','<strong>What is Hedging:</strong>  As per the business directory, Hedging is a risk management strategy used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or securities. In effect, hedging is a transfer of risk without buying insurance policies. Hedging is done by the various risk derivatives. To understand this, it is important to first understand the basics of risk derivatives.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2014/11/Offshore_platforms.jpg\"><img class=\"aligncenter size-full wp-image-238\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2014/11/Offshore_platforms.jpg\" alt=\"Offshore_platforms\" width=\"676\" height=\"369\" /></a>\r\n\r\nBroadly speaking there are two types of risk derivatives. Exchange traded and over the counter derivatives.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/risk-derivatives.png\"><img class=\"aligncenter wp-image-724\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/risk-derivatives.png\" alt=\"risk derivatives\" width=\"600\" height=\"321\" /></a>\r\n\r\nAs the name suggests, exchange traded derivatives are traded in the international exchanges (for example New York Mercantile exchange, NYMEX), where standard contracts, terms of which have been defined by the exchange are traded.\r\nOver the counter (OTC) derivatives are traded through dealers and the contracts are tailor made. OTC derivatives come with the risk of other party not fulfilling his obligations.\r\n\r\nIn the trade exchange, future contracts and Options contract derivative are normally traded and Oil/gas companies choose these two hedging contracts.\r\n\r\nTo understand these hedging techniques, assume that I am oil/gas Production Company and I am producing 100000 barrels in a month. Today’s  crude oil price is $80/barrel. I am afraid that by next month , when I will have inventory of around 100000 barrels, the crude oil price may fall to below $75/Barrel, and I might make a loss of $500000 compared with today’s crude oil price.  Lets see how I can use hedging to reduce this loss.\r\n\r\n<b>1. Future and Forward contracts:</b>\r\n<i>(The fundamental difference between future and forward contracts is that one is traded in exchanges while other is traded OTC, here I will discuss Future contracts)</i>.\r\n\r\n<span style=\"text-decoration: underline;\">“Future contracts between two parties A &amp; B is a contract where party B has the obligation to deliver a commodity on agreed date and party A has the obligation to pay on same date the price, which is agreed today”.</span>\r\n\r\nSo in my case I am party B and in a future contract with A today, I agree to deliver 100000 barrels of crude oil on 11th Dec 2014 and party A agrees to pay the listed price for Dec 2014 in the trade exchange (say NYMEX). Let us assume the listed price for Dec 2014 is $81/Barrel. It is important to note that I do not have to actually (physically) deliver the crude oil to party A.\r\nNow in Dec 2014 when I have produced 100000 barrels of crude oil. Lets consider two scenarios\r\n\r\n<b>Scenario 1: Crude price drops to $75/barrels as expected by me.</b>\r\n\r\n<b><span style=\"text-decoration: underline;\">In the Physical market</span></b>\r\n<b></b>\r\nI sell 100000 barrels of crude oil @ $75/barrel to get $7500000 where as I had expected $8000000 so I incur loss of $500000 in the physical market.\r\n\r\n<b><span style=\"text-decoration: underline;\">In the Future contract</span></b>\r\n\r\nMy obligation is to deliver 100000 barrels of crude oil which in dec 2014 will cost me $7500000 @ $75/barrel. But party A has the obligation to pay me @$81/barrel so total of $8100000. This way in the future contract I make profit of $600000.\r\nNet profit I make is $600000 (Future contract) - $500000 (Physical market) = $100000\r\n\r\nSo I have hedged the crude oil price with future contract.\r\n\r\n<b>Scenario 2: Crude price increase to $82/barrels.</b>\r\n\r\n<b><span style=\"text-decoration: underline;\">In the Physical market</span></b>\r\n\r\nI sell 100000 barrels of crude oil @ $82/barrel to get $8200000 where as I had expected $8000000 so I have profit of $200000 in the physical market.\r\n\r\n<b><span style=\"text-decoration: underline;\">In the Future contract</span></b>\r\n\r\nMy obligation is to deliver 100000 barrels of crude oil which in Dec 2014 will cost me $8200000 @ $82/barrel. But party A has the obligation to pay me @$81/barrel so total of $8100000. This way in the future contract I make loss of $100000.\r\nNet profit I make is $200000 (Physical market) - $100000 (Future contract) = $100000\r\n\r\nSo in both case of crude oil price reducing or increasing, I have made more money than I had expected in Nov 2014. With different number, it might also show some loss, even with future contract but the loss will be much lesser than what would have been incurred without hedging.\r\n\r\n<b>2. Hedging by OPTIONS Contract</b>\r\n\r\nThere are two types of options contracts. Call &amp; Put.\r\n\r\nThe relevant contract for me as Oil/gas production company will be PUT options.\r\n\r\n\"<span style=\"text-decoration: underline;\">When I buy PUT options contract from another party (say party A), I have the option to sell my commodity (crude oil in this case) to party A at a particular price but I am not obliged to do so. It is upto me, if I want to exercise my option to sell my commodity to party A. My this right has an expiry date and I can use my option on any date before the expiry</span>\".\r\n\r\nOff course I will only exercise my option if the price of the crude oil has decreased and not if the price of crude oil has increased. However to buy this right (option contract) I have to pay a premium to party A.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/risk.png\"><img class=\"aligncenter wp-image-725\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/risk.png\" alt=\"risk\" width=\"700\" height=\"218\" /></a>\r\n\r\nLet us assume that I buy \"Put option contract\" from party A at lock in price of $80/Barrel for crude oil. Table above shows, how after using “Hedging by Options contract”, I do not incur any loss even when the price of crude oil has fallen from $80 to $70.','How does hedging in Crude Oil by an Oil and Gas Company take place ?','','inherit','open','open','','723-revision-v1','','','2015-12-01 08:38:06','2015-12-01 08:38:06','',723,'http://myseatime.com/blogadm/723-revision-v1/',0,'revision','',0,0),(1181,1,'2015-12-01 08:40:38','2015-12-01 08:40:38','<strong>What is Hedging:</strong>  As per the business directory, Hedging is a risk management strategy used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or securities. In effect, hedging is a transfer of risk without buying insurance policies. Hedging is done by the various risk derivatives. To understand this, it is important to first understand the basics of risk derivatives.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/Tanker_offshore_terminal.jpg\"><img class=\"aligncenter size-full wp-image-822\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/Tanker_offshore_terminal.jpg\" alt=\"Tanker_offshore_terminal\" width=\"800\" height=\"521\" /></a>\r\n\r\nBroadly speaking there are two types of risk derivatives. Exchange traded and over the counter derivatives.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/risk-derivatives.png\"><img class=\"aligncenter wp-image-724\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/risk-derivatives.png\" alt=\"risk derivatives\" width=\"600\" height=\"321\" /></a>\r\n\r\nAs the name suggests, exchange traded derivatives are traded in the international exchanges (for example New York Mercantile exchange, NYMEX), where standard contracts, terms of which have been defined by the exchange are traded.\r\nOver the counter (OTC) derivatives are traded through dealers and the contracts are tailor made. OTC derivatives come with the risk of other party not fulfilling his obligations.\r\n\r\nIn the trade exchange, future contracts and Options contract derivative are normally traded and Oil/gas companies choose these two hedging contracts.\r\n\r\nTo understand these hedging techniques, assume that I am oil/gas Production Company and I am producing 100000 barrels in a month. Today’s  crude oil price is $80/barrel. I am afraid that by next month , when I will have inventory of around 100000 barrels, the crude oil price may fall to below $75/Barrel, and I might make a loss of $500000 compared with today’s crude oil price.  Lets see how I can use hedging to reduce this loss.\r\n\r\n<b>1. Future and Forward contracts:</b>\r\n<i>(The fundamental difference between future and forward contracts is that one is traded in exchanges while other is traded OTC, here I will discuss Future contracts)</i>.\r\n\r\n<span style=\"text-decoration: underline;\">“Future contracts between two parties A &amp; B is a contract where party B has the obligation to deliver a commodity on agreed date and party A has the obligation to pay on same date the price, which is agreed today”.</span>\r\n\r\nSo in my case I am party B and in a future contract with A today, I agree to deliver 100000 barrels of crude oil on 11th Dec 2014 and party A agrees to pay the listed price for Dec 2014 in the trade exchange (say NYMEX). Let us assume the listed price for Dec 2014 is $81/Barrel. It is important to note that I do not have to actually (physically) deliver the crude oil to party A.\r\nNow in Dec 2014 when I have produced 100000 barrels of crude oil. Lets consider two scenarios\r\n\r\n<b>Scenario 1: Crude price drops to $75/barrels as expected by me.</b>\r\n\r\n<b><span style=\"text-decoration: underline;\">In the Physical market</span></b>\r\n<b></b>\r\nI sell 100000 barrels of crude oil @ $75/barrel to get $7500000 where as I had expected $8000000 so I incur loss of $500000 in the physical market.\r\n\r\n<b><span style=\"text-decoration: underline;\">In the Future contract</span></b>\r\n\r\nMy obligation is to deliver 100000 barrels of crude oil which in dec 2014 will cost me $7500000 @ $75/barrel. But party A has the obligation to pay me @$81/barrel so total of $8100000. This way in the future contract I make profit of $600000.\r\nNet profit I make is $600000 (Future contract) - $500000 (Physical market) = $100000\r\n\r\nSo I have hedged the crude oil price with future contract.\r\n\r\n<b>Scenario 2: Crude price increase to $82/barrels.</b>\r\n\r\n<b><span style=\"text-decoration: underline;\">In the Physical market</span></b>\r\n\r\nI sell 100000 barrels of crude oil @ $82/barrel to get $8200000 where as I had expected $8000000 so I have profit of $200000 in the physical market.\r\n\r\n<b><span style=\"text-decoration: underline;\">In the Future contract</span></b>\r\n\r\nMy obligation is to deliver 100000 barrels of crude oil which in Dec 2014 will cost me $8200000 @ $82/barrel. But party A has the obligation to pay me @$81/barrel so total of $8100000. This way in the future contract I make loss of $100000.\r\nNet profit I make is $200000 (Physical market) - $100000 (Future contract) = $100000\r\n\r\nSo in both case of crude oil price reducing or increasing, I have made more money than I had expected in Nov 2014. With different number, it might also show some loss, even with future contract but the loss will be much lesser than what would have been incurred without hedging.\r\n\r\n<b>2. Hedging by OPTIONS Contract</b>\r\n\r\nThere are two types of options contracts. Call &amp; Put.\r\n\r\nThe relevant contract for me as Oil/gas production company will be PUT options.\r\n\r\n\"<span style=\"text-decoration: underline;\">When I buy PUT options contract from another party (say party A), I have the option to sell my commodity (crude oil in this case) to party A at a particular price but I am not obliged to do so. It is upto me, if I want to exercise my option to sell my commodity to party A. My this right has an expiry date and I can use my option on any date before the expiry</span>\".\r\n\r\nOff course I will only exercise my option if the price of the crude oil has decreased and not if the price of crude oil has increased. However to buy this right (option contract) I have to pay a premium to party A.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/risk.png\"><img class=\"aligncenter wp-image-725\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/risk.png\" alt=\"risk\" width=\"700\" height=\"218\" /></a>\r\n\r\nLet us assume that I buy \"Put option contract\" from party A at lock in price of $80/Barrel for crude oil. Table above shows, how after using “Hedging by Options contract”, I do not incur any loss even when the price of crude oil has fallen from $80 to $70.','How does hedging in Crude Oil by an Oil and Gas Company take place ?','','inherit','open','open','','723-revision-v1','','','2015-12-01 08:40:38','2015-12-01 08:40:38','',723,'http://myseatime.com/blogadm/723-revision-v1/',0,'revision','',0,0),(1182,1,'2015-12-01 08:42:45','2015-12-01 08:42:45','<strong>What is Hedging:</strong>  As per the business directory, Hedging is a risk management strategy used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or securities. In effect, hedging is a transfer of risk without buying insurance policies. Hedging is done by the various risk derivatives. To understand this, it is important to first understand the basics of risk derivatives.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/Tanker_offshore_terminal.jpg\"><img class=\"aligncenter size-full wp-image-822\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/Tanker_offshore_terminal.jpg\" alt=\"Tanker_offshore_terminal\" width=\"800\" height=\"521\" /></a>\r\n\r\nBroadly speaking there are two types of risk derivatives. Exchange traded and over the counter derivatives. As the name suggests, exchange traded derivatives are traded in the international exchanges (for example New York Mercantile exchange, NYMEX), where standard contracts, terms of which have been defined by the exchange are traded.\r\n\r\nOver the counter (OTC) derivatives are traded through dealers and the contracts are tailor made. OTC derivatives come with the risk of other party not fulfilling his obligations.\r\n\r\nIn the trade exchange, future contracts and Options contract derivative are normally traded and Oil/gas companies choose these two hedging contracts.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/risk-derivatives.png\"><img class=\"aligncenter size-full wp-image-724\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/risk-derivatives.png\" alt=\"risk derivatives\" width=\"865\" height=\"458\" /></a>\r\n\r\nTo understand these hedging techniques, assume that I am oil/gas Production Company and I am producing 100000 barrels in a month. Today’s  crude oil price is $80/barrel. I am afraid that by next month , when I will have inventory of around 100000 barrels, the crude oil price may fall to below $75/Barrel, and I might make a loss of $500000 compared with today’s crude oil price.  Lets see how I can use hedging to reduce this loss.\r\n\r\n<b>1. Future and Forward contracts:</b>\r\n<i>(The fundamental difference between future and forward contracts is that one is traded in exchanges while other is traded OTC, here I will discuss Future contracts)</i>.\r\n\r\n<span style=\"text-decoration: underline;\">“Future contracts between two parties A &amp; B is a contract where party B has the obligation to deliver a commodity on agreed date and party A has the obligation to pay on same date the price, which is agreed today”.</span>\r\n\r\nSo in my case I am party B and in a future contract with A today, I agree to deliver 100000 barrels of crude oil on 11th Dec 2014 and party A agrees to pay the listed price for Dec 2014 in the trade exchange (say NYMEX). Let us assume the listed price for Dec 2014 is $81/Barrel. It is important to note that I do not have to actually (physically) deliver the crude oil to party A.\r\nNow in Dec 2014 when I have produced 100000 barrels of crude oil. Lets consider two scenarios\r\n\r\n<b>Scenario 1: Crude price drops to $75/barrels as expected by me.</b>\r\n\r\n<b><span style=\"text-decoration: underline;\">In the Physical market</span></b>\r\n<b></b>\r\nI sell 100000 barrels of crude oil @ $75/barrel to get $7500000 where as I had expected $8000000 so I incur loss of $500000 in the physical market.\r\n\r\n<b><span style=\"text-decoration: underline;\">In the Future contract</span></b>\r\n\r\nMy obligation is to deliver 100000 barrels of crude oil which in dec 2014 will cost me $7500000 @ $75/barrel. But party A has the obligation to pay me @$81/barrel so total of $8100000. This way in the future contract I make profit of $600000.\r\nNet profit I make is $600000 (Future contract) - $500000 (Physical market) = $100000\r\n\r\nSo I have hedged the crude oil price with future contract.\r\n\r\n<b>Scenario 2: Crude price increase to $82/barrels.</b>\r\n\r\n<b><span style=\"text-decoration: underline;\">In the Physical market</span></b>\r\n\r\nI sell 100000 barrels of crude oil @ $82/barrel to get $8200000 where as I had expected $8000000 so I have profit of $200000 in the physical market.\r\n\r\n<b><span style=\"text-decoration: underline;\">In the Future contract</span></b>\r\n\r\nMy obligation is to deliver 100000 barrels of crude oil which in Dec 2014 will cost me $8200000 @ $82/barrel. But party A has the obligation to pay me @$81/barrel so total of $8100000. This way in the future contract I make loss of $100000.\r\nNet profit I make is $200000 (Physical market) - $100000 (Future contract) = $100000\r\n\r\nSo in both case of crude oil price reducing or increasing, I have made more money than I had expected in Nov 2014. With different number, it might also show some loss, even with future contract but the loss will be much lesser than what would have been incurred without hedging.\r\n\r\n<b>2. Hedging by OPTIONS Contract</b>\r\n\r\nThere are two types of options contracts. Call &amp; Put.\r\n\r\nThe relevant contract for me as Oil/gas production company will be PUT options.\r\n\r\n\"<span style=\"text-decoration: underline;\">When I buy PUT options contract from another party (say party A), I have the option to sell my commodity (crude oil in this case) to party A at a particular price but I am not obliged to do so. It is upto me, if I want to exercise my option to sell my commodity to party A. My this right has an expiry date and I can use my option on any date before the expiry</span>\".\r\n\r\nOff course I will only exercise my option if the price of the crude oil has decreased and not if the price of crude oil has increased. However to buy this right (option contract) I have to pay a premium to party A.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/risk.png\"><img class=\"aligncenter wp-image-725\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/risk.png\" alt=\"risk\" width=\"700\" height=\"218\" /></a>\r\n\r\nLet us assume that I buy \"Put option contract\" from party A at lock in price of $80/Barrel for crude oil. Table above shows, how after using “Hedging by Options contract”, I do not incur any loss even when the price of crude oil has fallen from $80 to $70.','How does hedging in Crude Oil by an Oil and Gas Company take place ?','','inherit','open','open','','723-revision-v1','','','2015-12-01 08:42:45','2015-12-01 08:42:45','',723,'http://myseatime.com/blogadm/723-revision-v1/',0,'revision','',0,0),(1183,1,'2015-12-01 09:03:38','2015-12-01 09:03:38','<strong>What is Hedging:</strong>  As per the business directory, Hedging is a risk management strategy used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or securities. In effect, hedging is a transfer of risk without buying insurance policies. Hedging is done by the various risk derivatives. To understand this, it is important to first understand the basics of risk derivatives.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/Tanker_offshore_terminal.jpg\"><img class=\"aligncenter size-full wp-image-822\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/Tanker_offshore_terminal.jpg\" alt=\"Tanker_offshore_terminal\" width=\"800\" height=\"521\" /></a>\r\n\r\nBroadly speaking there are two types of risk derivatives. Exchange traded and over the counter derivatives. As the name suggests, exchange traded derivatives are traded in the international exchanges (for example New York Mercantile exchange, NYMEX), where standard contracts, terms of which have been defined by the exchange are traded.\r\n\r\nOver the counter (OTC) derivatives are traded through dealers and the contracts are tailor made. OTC derivatives come with the risk of other party not fulfilling his obligations.\r\n\r\nIn the trade exchange, future contracts and Options contract derivative are normally traded and Oil/gas companies choose these two hedging contracts.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/risk-derivatives.png\"><img class=\"aligncenter size-full wp-image-724\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/risk-derivatives.png\" alt=\"risk derivatives\" width=\"865\" height=\"458\" /></a>\r\n\r\nTo understand these hedging techniques, assume that I am oil/gas Production Company and I am producing 100000 barrels in a month. Today’s  crude oil price is $80/barrel. I am afraid that by next month , when I will have inventory of around 100000 barrels, the crude oil price may fall to below $75/Barrel, and I might make a loss of $500000 compared with today’s crude oil price.  Lets see how I can use hedging to reduce this loss.\r\n\r\n<b>1. Future and Forward contracts:</b>\r\n<i>(The fundamental difference between future and forward contracts is that one is traded in exchanges while other is traded OTC, here I will discuss Future contracts)</i>.\r\n\r\n“Future contracts between two parties A &amp; B is a contract where party B has the obligation to deliver a commodity on agreed date and party A has the obligation to pay on same date the price, which is agreed today”.\r\n\r\nSo in my case I am party B and in a future contract with A today, I agree to deliver 100000 barrels of crude oil on 11th Dec 2014 and party A agrees to pay the listed price for Dec 2014 in the trade exchange (say NYMEX). Let us assume the listed price for Dec 2014 is $81/Barrel. It is important to note that I do not have to actually (physically) deliver the crude oil to party A.\r\nNow in Dec 2014 when I have produced 100000 barrels of crude oil. Lets consider two scenarios\r\n\r\n<b>Scenario 1: Crude price drops to $75/barrels as expected by me.</b>\r\n\r\n<b>In the Physical market</b>\r\n<b></b>\r\nI sell 100000 barrels of crude oil @ $75/barrel to get $7500000 where as I had expected $8000000 so I incur loss of $500000 in the physical market.\r\n\r\n<b>In the Future contract</b>\r\n\r\nMy obligation is to deliver 100000 barrels of crude oil which in dec 2014 will cost me $7500000 @ $75/barrel. But party A has the obligation to pay me @$81/barrel so total of $8100000. This way in the future contract I make profit of $600000.\r\nNet profit I make is $600000 (Future contract) - $500000 (Physical market) = $100000\r\n\r\nSo I have hedged the crude oil price with future contract.\r\n\r\n<b>Scenario 2: Crude price increase to $82/barrels.</b>\r\n\r\n<b>In the Physical market</b>\r\n\r\nI sell 100000 barrels of crude oil @ $82/barrel to get $8200000 where as I had expected $8000000 so I have profit of $200000 in the physical market.\r\n\r\n<b>In the Future contract</b>\r\n\r\nMy obligation is to deliver 100000 barrels of crude oil which in Dec 2014 will cost me $8200000 @ $82/barrel. But party A has the obligation to pay me @$81/barrel so total of $8100000. This way in the future contract I make loss of $100000.\r\nNet profit I make is $200000 (Physical market) - $100000 (Future contract) = $100000\r\n\r\nSo in both case of crude oil price reducing or increasing, I have made more money than I had expected in Nov 2014. With different number, it might also show some loss, even with future contract but the loss will be much lesser than what would have been incurred without hedging.\r\n\r\n<b>2. Hedging by OPTIONS Contract</b>\r\n\r\nThere are two types of options contracts. Call &amp; Put.\r\n\r\nThe relevant contract for me as Oil/gas production company will be PUT options.\r\n\r\n\"When I buy PUT options contract from another party (say party A), I have the option to sell my commodity (crude oil in this case) to party A at a particular price but I am not obliged to do so. It is upto me, if I want to exercise my option to sell my commodity to party A. My this right has an expiry date and I can use my option on any date before the expiry\".\r\n\r\nOff course I will only exercise my option if the price of the crude oil has decreased and not if the price of crude oil has increased. However to buy this right (option contract) I have to pay a premium to party A.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/risk.png\"><img class=\"aligncenter wp-image-725\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/risk.png\" alt=\"risk\" width=\"700\" height=\"218\" /></a>\r\n\r\nLet us assume that I buy \"Put option contract\" from party A at lock in price of $80/Barrel for crude oil. Table above shows, how after using “Hedging by Options contract”, I do not incur any loss even when the price of crude oil has fallen from $80 to $70.','How does hedging in Crude Oil by an Oil and Gas Company take place ?','','inherit','open','open','','723-revision-v1','','','2015-12-01 09:03:38','2015-12-01 09:03:38','',723,'http://myseatime.com/blogadm/723-revision-v1/',0,'revision','',0,0),(1184,1,'2015-12-01 09:21:53','2015-12-01 09:21:53','The requirement of loading instrument for bulk carriers is governed by SOLAS chapter XII, regulation 11. Even though there is no statutory requirement for loading computer onboard other ships, classification societies require all tankers of more than 100 meters to have type approved loading instrument. even otherwise so, Loadicator has rather been a necessity onboard ships. And once we have something onboard, it is duty of ship staff to ensure that it complies with its testing and record keeping procedures.\r\n\r\nThere are two parts of the question. First relates to the documents and certificates a ship is required to have onboard with respect to loadicators and second the testing requirement of the loadicator.\r\n<p style=\"text-align: left;\"><span style=\"color: #005384;\"><strong>Documents required for Loadicator</strong></span></p>\r\nThere are three main documents ship should have for it to be actually complying with Loadicator requirements. These are\r\n\r\n<strong>Class certificate for loadicator: </strong>This certificate is issued by the class and gives the details of the loadicator software as well as the hardware on which it is installed, including the details of the Make, model and serial number of the computer. Master and chief officer must ensure that the approved loading computer’s details matches with the details in this certificate. The certificate may even sometimes have the printer’s detail that is connected with the approved loadicator.\r\n\r\nIf you do not find this certificate onboard, you should check in the class survey status report if the loading computer is included in the list. If yes, the certificate can be asked from the class through your office. If No, then shipping office need to consult ship’s classification society for approval of loading computer.\r\n\r\n<strong>Class approved Loadicator Manual: </strong>This is the user manual of the loadicator which is from the maker of the loadicator software. A class approved copy of the user manual should be onboard. If there was ever a class change associated with the ship, it is important to ensure that approval stamp of the current classification society is endorsed on the manual.\r\n\r\n<strong>Class approved loadicator test conditions: </strong>To be very clear, these are not the conditions in the stability booklet of the ship. The stability conditions in the stability booklet are made by the yard and these are not the print outs from the loadicator software. These are also not the test conditions stamped by the class during annual class surveys. These are usually in the form of a booklet specifically titled “ test conditions for loadicator” with class stamp. These are usually provided during yard delivery of the vessel or after the loadicator is installed for the first time and approved by the class.\r\n\r\nOnce you have these three documents / certificates, you are OK with the certification part.\r\n<p style=\"text-align: left;\"><span style=\"color: #005384;\"><strong>Testing requirements for the Loadicator</strong></span></p>\r\n<strong>Testing by ship staff: </strong>The Loadicator is required to be tested periodically ( interval to be as per SMS of the vessel) by ship staff for its accuracy. The test procedure includes choosing a text condition from the approved test conditions, entering the exact same data in the loadicator and comparing the results with the approved test conditions. The important point to note is that the data need to be manually entered and not opened from a pre-saved file as it is not acceptable to classification society as well as OCIMF to simply retrieve a stored test condition and comparing it with approved test condition.\r\n\r\n<strong>Annual testing of Loadicator in presence of Class :</strong> During annual class surveys, loadicator need to be tested for its accuracy in presence of a class surveyor. The procedure of testing is same as the quarterly testing but in here the class surveyor would ask for the print out of the test condition and he would stamp it and give it to the ship for ship’s records.','Compliance with Loadicator Testing and its records','','inherit','open','open','','797-revision-v1','','','2015-12-01 09:21:53','2015-12-01 09:21:53','',797,'http://myseatime.com/blogadm/797-revision-v1/',0,'revision','',0,0),(1185,1,'2015-12-02 09:56:39','2015-12-02 09:56:39','Salvage mean “rescue a wrecked or disabled ship or its cargo from loss at sea”. The party rescuing is called “Salvor” and the wrecked or disabled ship is called “Property being salvaged”.\r\n\r\nSimply put, as per salvage convention Salvor does a work to salvage the property and he gets a reward / Compensation for his efforts to save the property.\r\n\r\nThe introduction and historical developments in salvage convention apart from listing the duties of various parties, has been based upon the question of when and how much monetary benefits the salvor should get for his efforts.\r\n\r\nHistory has seen three major developments in the salvage law\r\n<ol>\r\n	<li><strong>Brussel Convention</strong></li>\r\n	<li><strong>Salvage convention in 1989 and</strong></li>\r\n	<li><strong>SCOPIC Clause in the LOF.</strong></li>\r\n</ol>\r\nThe Brussels convention was the first official convention to talk about salvage at sea and was based upon the “NO CURE, NO PAY” principle. The major problem with the Brussels convention was that salvors would not touch a high risk property as because of being high risk, their chances of getting monetary benefits as well as to recover their expenses were minimal.\r\n\r\nIn the late 80s, with few of the infamous oil pollution incidents, it became a necessity to encourage salvor to take up the high risk salvage contract where potential oil pollution and marine environment was involved and for this reason a special compensation under article 14 was introduced in salvage convention which was also the main distinguishing thing from Brussel’s convention.\r\n<blockquote><em>As per Article 14 “if the salvor by his salvage operations has prevented or minimised damage to the environment, salvor is entitled for a special compensation equivalent to his expenses which can be increased up to 30%  to 100% of the expenses under certain circumstances. These expenses were to be born by ship owners and this was the first time when P&amp;I clubs were also involved in salvage operation as they had to pay these expenses on owners behalf.\"</em></blockquote>\r\nBoth Salvor and the ship owners had few concerns with Article 14. Shipowners and P&amp;I clubs were concerned that Salvor could unnecessarily prolong the salvage operation to claim more expenses under special compensation. Also the the Hull underwriters might delay the decision to declare the vessel as “Total Constructive loss” as they would have nothing to loose by delaying their decision.\r\n\r\nSalvor’s concerns mainly were to the applicability of article 14 as this was only applicable in coastal and inland waters and it only applied if there was a threat to the environment which they had to prove.\r\n\r\nThat is when SCOPIC clause came into play.\r\n\r\nThere were number of discussions to solve the limitations of article 14 and various solutions were discussed including a revision of existing salvage convention but it was finally decided to incorporate SCOPIC clause in the Lloyds open form (LOF) with no changes in the salvage convention. LOF is the contract form between the salvor and owner of the ship.\r\n\r\nSCOPIC clause once invoked substitutes article 14. SCOPIC clause solved two concerns for salvors. One, SCOPIC once invoked was applicable in all geographical locations and was not limited to coastal and inland sea. Also SCOPIC was applicable even if there was no threat to the environment and second, SCOPIC clause required security of USD 2 millions which made the salvor sure of the payments.\r\n\r\nThe developments in salvage conventions has been to encourage Salvors to perform even the high risk salvage operation and at same time to ensure that Salvors do not take advantage of their rights as per Salvage conventions and introducing SCOPIC clause in LOF was one such step.\r\n<blockquote><em>As per para 2 of SCOPIC clause “The Contractor shall have the option to invoke by written notice to the owners of the vessel the SCOPIC clause set out hereafter at any time of his choosing regardless of the circumstances and, in particular, regardless of whether or not there is a “threat of damage to the environment”.</em></blockquote>\r\nSo It is upto Salvor if he wants to invoke SCOPIC or not and he can invoke it at any time. The question is what will make Salvor decide if he should invoke SCOPIC or not ?\r\n\r\nWith SCOPIC clause the Salvor is absolutely certain of at least recovering his expenses. If at any time the salvor feels that he might not be able to save the property, he would want to invoke SCOPIC clause as if he doesn’t , he will not get any compensation on the principal of “NO CURE NO PAY”. He would get to recover his expenses under article 14 only if there is threat to environment, which again he has to prove. But then the question is what is stopping him to invoke SCOPIC at the start of the contract ? and the answer lies in the para 7 of the SCOPIC clause which states\r\n<blockquote><i>“If the SCOPIC clause is invoked under sub-clause 2 hereof and the Article 13 Award or settlement under the Main Agreement is greater than the assessed SCOPIC remuneration then, notwithstanding the actual date on which the SCOPIC remuneration provisions were invoked, the said Article 13 Award or settlement shall be discounted by 25% of the difference between the said Article 13 Award or settlement and the amount of SCOPIC remuneration that would have been assessed had the SCOPIC remuneration provisions been invoked on the first day of the services”.</i></blockquote>\r\nWhich mean that if SCOPIC clause is invoked and the salvor was able to save property and hence was eligible for award as per article 13, his reward would be reduced by 25%. So if the salvor is very much certain for success of salvage, he would not invoke SCOPIC clause.\r\n\r\nI would come back with a blog on what Masters and ship staff are supposed to know and do in salvage operations.\r\n\r\nWishing you all fair winds and following seas...','Simplifying SCOPIC clause and salvage convention','','inherit','open','open','','474-revision-v1','','','2015-12-02 09:56:39','2015-12-02 09:56:39','',474,'http://myseatime.com/blogadm/474-revision-v1/',0,'revision','',0,0),(1186,1,'2015-12-02 09:59:26','2015-12-02 09:59:26','Salvage mean “rescue a wrecked or disabled ship or its cargo from loss at sea”. The party rescuing is called “Salvor” and the wrecked or disabled ship is called “Property being salvaged”.\r\n\r\nSimply put, as per salvage convention Salvor does a work to salvage the property and he gets a reward / Compensation for his efforts to save the property.\r\n\r\nThe introduction and historical developments in salvage convention apart from listing the duties of various parties, has been based upon the question of when and how much monetary benefits the salvor should get for his efforts.\r\n\r\nHistory has seen three major developments in the salvage law\r\n<ol>\r\n	<li>Brussel Convention</li>\r\n	<li>Salvage convention in 1989 and</li>\r\n	<li>SCOPIC Clause in the LOF.</li>\r\n</ol>\r\nThe Brussels convention was the first official convention to talk about salvage at sea and was based upon the “NO CURE, NO PAY” principle. The major problem with the Brussels convention was that salvors would not touch a high risk property as because of being high risk, their chances of getting monetary benefits as well as to recover their expenses were minimal.\r\n\r\nIn the late 80s, with few of the infamous oil pollution incidents, it became a necessity to encourage salvor to take up the high risk salvage contract where potential oil pollution and marine environment was involved and for this reason a special compensation under article 14 was introduced in salvage convention which was also the main distinguishing thing from Brussel’s convention.\r\n<blockquote>As per Article 14 “if the salvor by his salvage operations has prevented or minimised damage to the environment, salvor is entitled for a special compensation equivalent to his expenses which can be increased up to 30%  to 100% of the expenses under certain circumstances. These expenses were to be born by ship owners and this was the first time when P&amp;I clubs were also involved in salvage operation as they had to pay these expenses on owners behalf.\"</blockquote>\r\nBoth Salvor and the ship owners had few concerns with Article 14. Shipowners and P&amp;I clubs were concerned that Salvor could unnecessarily prolong the salvage operation to claim more expenses under special compensation. Also the the Hull underwriters might delay the decision to declare the vessel as “Total Constructive loss” as they would have nothing to loose by delaying their decision.\r\n\r\nSalvor’s concerns mainly were to the applicability of article 14 as this was only applicable in coastal and inland waters and it only applied if there was a threat to the environment which they had to prove.\r\n\r\nThat is when SCOPIC clause came into play.\r\n\r\nThere were number of discussions to solve the limitations of article 14 and various solutions were discussed including a revision of existing salvage convention but it was finally decided to incorporate SCOPIC clause in the Lloyds open form (LOF) with no changes in the salvage convention. LOF is the contract form between the salvor and owner of the ship.\r\n\r\nSCOPIC clause once invoked substitutes article 14. SCOPIC clause solved two concerns for salvors. One, SCOPIC once invoked was applicable in all geographical locations and was not limited to coastal and inland sea. Also SCOPIC was applicable even if there was no threat to the environment and second, SCOPIC clause required security of USD 2 millions which made the salvor sure of the payments.\r\n\r\nThe developments in salvage conventions has been to encourage Salvors to perform even the high risk salvage operation and at same time to ensure that Salvors do not take advantage of their rights as per Salvage conventions and introducing SCOPIC clause in LOF was one such step.\r\n<blockquote><em>As per para 2 of SCOPIC clause “The Contractor shall have the option to invoke by written notice to the owners of the vessel the SCOPIC clause set out hereafter at any time of his choosing regardless of the circumstances and, in particular, regardless of whether or not there is a “threat of damage to the environment”.</em></blockquote>\r\nSo It is upto Salvor if he wants to invoke SCOPIC or not and he can invoke it at any time. The question is what will make Salvor decide if he should invoke SCOPIC or not ?\r\n\r\nWith SCOPIC clause the Salvor is absolutely certain of at least recovering his expenses. If at any time the salvor feels that he might not be able to save the property, he would want to invoke SCOPIC clause as if he doesn’t , he will not get any compensation on the principal of “NO CURE NO PAY”. He would get to recover his expenses under article 14 only if there is threat to environment, which again he has to prove. But then the question is what is stopping him to invoke SCOPIC at the start of the contract ? and the answer lies in the para 7 of the SCOPIC clause which states\r\n<blockquote><i>“If the SCOPIC clause is invoked under sub-clause 2 hereof and the Article 13 Award or settlement under the Main Agreement is greater than the assessed SCOPIC remuneration then, notwithstanding the actual date on which the SCOPIC remuneration provisions were invoked, the said Article 13 Award or settlement shall be discounted by 25% of the difference between the said Article 13 Award or settlement and the amount of SCOPIC remuneration that would have been assessed had the SCOPIC remuneration provisions been invoked on the first day of the services”.</i></blockquote>\r\nWhich mean that if SCOPIC clause is invoked and the salvor was able to save property and hence was eligible for award as per article 13, his reward would be reduced by 25%. So if the salvor is very much certain for success of salvage, he would not invoke SCOPIC clause.\r\n\r\nI would come back with a blog on what Masters and ship staff are supposed to know and do in salvage operations.\r\n\r\nWishing you all fair winds and following seas...','Simplifying SCOPIC clause and salvage convention','','inherit','open','open','','474-revision-v1','','','2015-12-02 09:59:26','2015-12-02 09:59:26','',474,'http://myseatime.com/blogadm/474-revision-v1/',0,'revision','',0,0),(1187,117,'2015-12-03 05:46:00','0000-00-00 00:00:00','www.illuminz.com ','myseatime_565fd71817f0b','','publish','open','open','','','','','0000-00-00 00:00:00','0000-00-00 00:00:00','',0,'',0,'myseatime_post','',0,0),(1188,1,'2015-12-04 18:30:20','2015-12-04 18:30:20','Before we come to ODMCS tests, it is better to first do a recap on the requirements of ODMCS.\n\nODMCS (Oil discharge monitoring control system), sometimes also called ODME (Oil discharge monitoring equipment) is an equipment required under Marpol Annex 1 and is required to monitor discharge of oily mixture from cargo tanks of oil tankers.\n\n&nbsp;\n\nThe Marpol requires following for discharging oily Mixture\n<ol>\n	<li>The tanker should not be in special area</li>\n	<li>The tanker should be Enroute</li>\n	<li>The tanker must be more than 50 Nautical miles from the nearest land</li>\n	<li>The instantaneous rate of discharge should not exceed 30 litres per Nautical mile</li>\n	<li>The total quantity of oil discharged should not exceed 1/30000 of the total quantity of cargo of which the residues formed a part.</li>\n	<li>The tanker must have an approved ODMCS and it should be operational</li>\n</ol>\nODMCS is installed to ensure compliance with the requirements no 4 and 5 and so the testing of ODMCS should be based upon to find if\n<ol>\n	<li>The ODMCS would actually stop if “instantaneous rate of discharge” exceeds 30 litres per nautical mile.</li>\n	<li>The ODMCS should stop when total oil discharged has reached the allowed limits as per point 5 above.</li>\n</ol>\nIt is general practice among many seafarers to test the ODMCS for only IRD, but as I have pointed out, the regulation require the ODMCS to stop when total oil discharged limit exceeds and thus this is an equally important test too.\n\n<b>Test for Instantaneous rate of Discharge</b>\n\nThe formula for IRD is\n<blockquote>IRD (in litres/Nautical mile)=  Oil content(ppm) x Flow rate (m3/hr) / Speed (Knots) x 1000</blockquote>\nFor ODMCS discharge valve to open, the IRD should be less than 30 L/NM and we just play with oil content, flow rate and speed (enter these values manually) to get the IRD to say 29.8 L/NM and discharge valve should open. We then increase the oil content a bit to make the IRD 30.1 L/NM to see if the discharge valve closes. Pretty simple. However this is just the simulation test which just tells us that the computing unit of ODMCS is working alright.\n\nIt does not tell us if in actual operation the oil content meter and flow meter will give correct reading of oil content and sample flow respectively. For this reason, the oil majors require the annual calibration of oil content meter and flow meter by an external competent company. Master and ship staff should ensure that such annual test has been carried out and certificate is available onboard.\n\nIt is also important in actual operation of ODMCS that sample is drawn from the discharge line and fed to oil content meter so that it can measure the oil content in the oily water. This sample is drawn and circulated through oil content meter by Sample pump. This makes the sample pump extremely important for the functioning of ODMCS and hence sample pump should be checked monthly for its free movement by rotating with hand\n\n<b>Test for Total quantity Discharged </b>\n\nFirst of all let us understand the rationale behind this requirement. The first requirement was that while the ship is moving, you can discharge 30 litres of oil contained in the oily water provided this 30 litre is spread over one nautical mile. If the second requirement is not there, one could keep on diluting the oily mixture to make sure IRD is always less than 30 L/NM and pump out entire tank content. This requirement limits the total oil that a ship can discharge irrespective of complying with the first requirement.\n\nSo if the vessel was carrying 45000 m3 of oil cargo and oily mixture are formed from washing or ballasting these tanks, the total oil that can be discharge through ODMCS is 45000/30000 which is 1.5 m3 or 1500 Ltrs. This figure need to be entered in the ODMCS  before actual run of ODMCS.\n\nNow how to test if after achieving this limit the ODMCS will shut the discharge valve and open re-circulation valve. Test is again pretty simple, set a lower value and run the ODMCS in simulation mode with IRD say around 29 L/NM. You would see the Total oil discharged reading go up. When you reach the set value of total oil discharged, the ODMCS should shut the discharge valve.\n\nEven though there may be some other small tests like power failure test etc. Checking and testing the ODMCS and associated components as mentioned above would most likely ensure that your ODMCS would be ready when you require it.','Does your ODMCS tests really confirm it to be in perfect shape and would it work when required ?','','inherit','open','open','','413-autosave-v1','','','2015-12-04 18:30:20','2015-12-04 18:30:20','',413,'http://myseatime.com/blogadm/413-autosave-v1/',0,'revision','',0,0),(1189,1,'2015-12-04 18:29:56','2015-12-04 18:29:56','','ODME oil discharge monitoring','','inherit','open','open','','odme-oil-discharge-monitoring','','','2015-12-04 18:30:29','2015-12-04 18:30:29','',413,'http://myseatime.com/blogadm/wp-content/uploads/2015/01/ODME-oil-discharge-monitoring.jpg',0,'attachment','image/jpeg',0,0),(1190,1,'2015-12-04 18:31:15','2015-12-04 18:31:15','Before we come to ODMCS tests, it is better to first do a recap on the requirements of ODMCS.\r\n\r\nODMCS (Oil discharge monitoring control system), sometimes also called ODME (Oil discharge monitoring equipment) is an equipment required under Marpol Annex 1 and is required to monitor discharge of oily mixture from cargo tanks of oil tankers.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/01/ODME-oil-discharge-monitoring.jpg\"><img class=\"aligncenter size-full wp-image-1189\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/01/ODME-oil-discharge-monitoring.jpg\" alt=\"ODME oil discharge \" width=\"800\" height=\"509\" /></a>\r\n\r\nThe Marpol requires following for discharging oily Mixture\r\n<ol>\r\n	<li>The tanker should not be in special area</li>\r\n	<li>The tanker should be Enroute</li>\r\n	<li>The tanker must be more than 50 Nautical miles from the nearest land</li>\r\n	<li>The instantaneous rate of discharge should not exceed 30 litres per Nautical mile</li>\r\n	<li>The total quantity of oil discharged should not exceed 1/30000 of the total quantity of cargo of which the residues formed a part.</li>\r\n	<li>The tanker must have an approved ODMCS and it should be operational</li>\r\n</ol>\r\nODMCS is installed to ensure compliance with the requirements no 4 and 5 and so the testing of ODMCS should be based upon to find if\r\n<ol>\r\n	<li>The ODMCS would actually stop if “instantaneous rate of discharge” exceeds 30 litres per nautical mile.</li>\r\n	<li>The ODMCS should stop when total oil discharged has reached the allowed limits as per point 5 above.</li>\r\n</ol>\r\nIt is general practice among many seafarers to test the ODMCS for only IRD, but as I have pointed out, the regulation require the ODMCS to stop when total oil discharged limit exceeds and thus this is an equally important test too.\r\n\r\n<b>Test for Instantaneous rate of Discharge</b>\r\n\r\nThe formula for IRD is\r\n<blockquote>IRD (in litres/Nautical mile)=  Oil content(ppm) x Flow rate (m3/hr) / Speed (Knots) x 1000</blockquote>\r\nFor ODMCS discharge valve to open, the IRD should be less than 30 L/NM and we just play with oil content, flow rate and speed (enter these values manually) to get the IRD to say 29.8 L/NM and discharge valve should open. We then increase the oil content a bit to make the IRD 30.1 L/NM to see if the discharge valve closes. Pretty simple. However this is just the simulation test which just tells us that the computing unit of ODMCS is working alright.\r\n\r\nIt does not tell us if in actual operation the oil content meter and flow meter will give correct reading of oil content and sample flow respectively. For this reason, the oil majors require the annual calibration of oil content meter and flow meter by an external competent company. Master and ship staff should ensure that such annual test has been carried out and certificate is available onboard.\r\n\r\nIt is also important in actual operation of ODMCS that sample is drawn from the discharge line and fed to oil content meter so that it can measure the oil content in the oily water. This sample is drawn and circulated through oil content meter by Sample pump. This makes the sample pump extremely important for the functioning of ODMCS and hence sample pump should be checked monthly for its free movement by rotating with hand\r\n\r\n<b>Test for Total quantity Discharged </b>\r\n\r\nFirst of all let us understand the rationale behind this requirement. The first requirement was that while the ship is moving, you can discharge 30 litres of oil contained in the oily water provided this 30 litre is spread over one nautical mile. If the second requirement is not there, one could keep on diluting the oily mixture to make sure IRD is always less than 30 L/NM and pump out entire tank content. This requirement limits the total oil that a ship can discharge irrespective of complying with the first requirement.\r\n\r\nSo if the vessel was carrying 45000 m3 of oil cargo and oily mixture are formed from washing or ballasting these tanks, the total oil that can be discharge through ODMCS is 45000/30000 which is 1.5 m3 or 1500 Ltrs. This figure need to be entered in the ODMCS  before actual run of ODMCS.\r\n\r\nNow how to test if after achieving this limit the ODMCS will shut the discharge valve and open re-circulation valve. Test is again pretty simple, set a lower value and run the ODMCS in simulation mode with IRD say around 29 L/NM. You would see the Total oil discharged reading go up. When you reach the set value of total oil discharged, the ODMCS should shut the discharge valve.\r\n\r\nEven though there may be some other small tests like power failure test etc. Checking and testing the ODMCS and associated components as mentioned above would most likely ensure that your ODMCS would be ready when you require it.','Does your ODMCS tests really confirm it to be in perfect shape and would it work when required ?','','inherit','open','open','','413-revision-v1','','','2015-12-04 18:31:15','2015-12-04 18:31:15','',413,'http://myseatime.com/blogadm/413-revision-v1/',0,'revision','',0,0),(1191,1,'2015-12-04 18:33:41','2015-12-04 18:33:41','Before we come to ODMCS tests, it is better to first do a recap on the requirements of ODMCS. ODMCS (Oil discharge monitoring control system), sometimes also called ODME (Oil discharge monitoring equipment) is an equipment required under Marpol Annex 1 and is required to monitor discharge of oily mixture from cargo tanks of oil tankers.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/01/ODME-oil-discharge-monitoring.jpg\"><img class=\"aligncenter size-full wp-image-1189\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/01/ODME-oil-discharge-monitoring.jpg\" alt=\"ODME oil discharge \" width=\"800\" height=\"509\" /></a>\r\n\r\nThe Marpol requires following for discharging oily Mixture\r\n<ol>\r\n	<li>The tanker should not be in special area</li>\r\n	<li>The tanker should be Enroute</li>\r\n	<li>The tanker must be more than 50 Nautical miles from the nearest land</li>\r\n	<li>The instantaneous rate of discharge should not exceed 30 litres per Nautical mile</li>\r\n	<li>The total quantity of oil discharged should not exceed 1/30000 of the total quantity of cargo of which the residues formed a part.</li>\r\n	<li>The tanker must have an approved ODMCS and it should be operational</li>\r\n</ol>\r\nODMCS is installed to ensure compliance with the requirements no 4 and 5 and so the testing of ODMCS should be based upon to find if\r\n<ol>\r\n	<li>The ODMCS would actually stop if “instantaneous rate of discharge” exceeds 30 litres per nautical mile.</li>\r\n	<li>The ODMCS should stop when total oil discharged has reached the allowed limits as per point 5 above.</li>\r\n</ol>\r\nIt is general practice among many seafarers to test the ODMCS for only IRD, but as I have pointed out, the regulation require the ODMCS to stop when total oil discharged limit exceeds and thus this is an equally important test too.\r\n\r\n<b>Test for Instantaneous rate of Discharge</b>\r\n\r\nThe formula for IRD is\r\n<blockquote>IRD (in litres/Nautical mile)=  Oil content(ppm) x Flow rate (m3/hr) / Speed (Knots) x 1000</blockquote>\r\nFor ODMCS discharge valve to open, the IRD should be less than 30 L/NM and we just play with oil content, flow rate and speed (enter these values manually) to get the IRD to say 29.8 L/NM and discharge valve should open. We then increase the oil content a bit to make the IRD 30.1 L/NM to see if the discharge valve closes. Pretty simple. However this is just the simulation test which just tells us that the computing unit of ODMCS is working alright.\r\n\r\nIt does not tell us if in actual operation the oil content meter and flow meter will give correct reading of oil content and sample flow respectively. For this reason, the oil majors require the annual calibration of oil content meter and flow meter by an external competent company. Master and ship staff should ensure that such annual test has been carried out and certificate is available onboard.\r\n\r\nIt is also important in actual operation of ODMCS that sample is drawn from the discharge line and fed to oil content meter so that it can measure the oil content in the oily water. This sample is drawn and circulated through oil content meter by Sample pump. This makes the sample pump extremely important for the functioning of ODMCS and hence sample pump should be checked monthly for its free movement by rotating with hand\r\n\r\n<b>Test for Total quantity Discharged </b>\r\n\r\nFirst of all let us understand the rationale behind this requirement. The first requirement was that while the ship is moving, you can discharge 30 litres of oil contained in the oily water provided this 30 litre is spread over one nautical mile. If the second requirement is not there, one could keep on diluting the oily mixture to make sure IRD is always less than 30 L/NM and pump out entire tank content. This requirement limits the total oil that a ship can discharge irrespective of complying with the first requirement.\r\n\r\nSo if the vessel was carrying 45000 m3 of oil cargo and oily mixture are formed from washing or ballasting these tanks, the total oil that can be discharge through ODMCS is 45000/30000 which is 1.5 m3 or 1500 Ltrs. This figure need to be entered in the ODMCS  before actual run of ODMCS.\r\n\r\nNow how to test if after achieving this limit the ODMCS will shut the discharge valve and open re-circulation valve. Test is again pretty simple, set a lower value and run the ODMCS in simulation mode with IRD say around 29 L/NM. You would see the Total oil discharged reading go up. When you reach the set value of total oil discharged, the ODMCS should shut the discharge valve.\r\n\r\nEven though there may be some other small tests like power failure test etc. Checking and testing the ODMCS and associated components as mentioned above would most likely ensure that your ODMCS would be ready when you require it.','Does your ODMCS tests really confirm it to be in perfect shape and would it work when required ?','','inherit','open','open','','413-revision-v1','','','2015-12-04 18:33:41','2015-12-04 18:33:41','',413,'http://myseatime.com/blogadm/413-revision-v1/',0,'revision','',0,0),(1192,1,'2015-12-04 18:40:47','2015-12-04 18:40:47','Cargo shortage disputes especially of agriculture products are frequent at discharge Ports. We come across with these cases very often especially when vessel has loaded cargo at load port by shore scale and cargo is discharged at multiple discharge Ports by draft surveys. Ship staff often unaware of discharge conditions at Indian Ports falls prey and this results in cargo shortage claims against vessel/owners.\r\nWe shall be able to avoid cargo disputes by following measures:\r\n\r\n<strong>LOAD PORT</strong>\r\n\r\n<strong>Accurate calculation of constant</strong> : First step on arrival load port has to be accurate calculation of vessel’s constant. For this accurate draft survey to be carried out.\r\nVessel must not go by previous constants records. We come across many cases where bunkers have been wrongly declared . Vessel declares constant from its previous record and which finally result in cargo disputes at discharge port.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/02/Black_Sea_Port_Constanta_opt.jpg\"><img class=\"aligncenter size-full wp-image-570\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/02/Black_Sea_Port_Constanta_opt.jpg\" alt=\"Black_Sea_Port_Constanta_opt\" width=\"770\" height=\"451\" /></a>\r\n\r\n<strong>Density of DW/Hydrometer: </strong> Vessel must use accurate &amp; certified hydrometers and carry out exact draft survey calculations to determine cargo quantity loaded.\r\n\r\n<strong>Shore Scale Loading : </strong>Agriculture products are usually loaded at ports like Australia, Canada, Argentina, Brazil by shore scale. Though in Australian ports the shore scales are very accurate but even then shore scale must be compared by vessel’s draft survey.\r\nIn case of shortage of cargo from shore scale, draft survey quantity to be mentioned on mates receipt.\r\n\r\nIn case Clean MR/Bill of lading is to be issued , owners must ask charterers to provide LOI for difference in shore scale and draft survey quantity.\r\n\r\n<strong>P&amp;I : </strong>P&amp;I attendance must be arranged at load port to ascertain cargo quantity and hatch sealing. There opinion must be taken in case of ship/shore discrepancy of cargo.For example West of England P&amp;I club shall allows for a cargo discrepancy of 0.3% .Different clubs have different regulations in this matter.\r\n\r\n<strong>Remarks in cargo documents: </strong>To safeguard owner\'s interests.SOF /MR/BL to be properly remarked at port of loading .LOP to be issued for fumigation.\r\n\r\n<strong>Multi port discharge: </strong> In case of multiple port discharge vessels must issue a protest letter for multiple port discharge stating that vessel shall be responsible for total discharged quantity only. Vessel shall not be responsible for individual port quantities/any overlanding/short landing at any of disport.\r\n\r\nCharterers must be asked to issue LOI to owners in this matter.\r\n\r\n<strong>U tubes : </strong>U tubes must be used  especially at load ports to check accurate drafts.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/02/U-Tube.jpg\"><img class=\"aligncenter size-full wp-image-582\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/02/U-Tube.jpg\" alt=\"U-Tube\" width=\"450\" height=\"600\" /></a>\r\n\r\n<strong>DURING SAILING:</strong>\r\n\r\nRecord of cargo parameters to be carried out. Fumigation precautions to be taken. Ventilation to be carried out based on parameters to avoid cargo damage.\r\n\r\n<strong>DISCHARGE PORTS</strong>\r\n\r\n<strong>Port Captain Attendance: </strong> EDIN Maritime start attending vessels at first discharge port itself till her final discharge port and guide ship staff with our expertise and experience of Indian Ports. We continuously monitor her discharge operations at all discharge ports to ensure that she discharges her nominated quantity at every disport.\r\n\r\n<strong>Anchorage discharge</strong> : Swell conditions- Vessels must fabricate and use wave dampers on board especially at anchorage port in-order to avoid errors in draft survey.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/02/Wave-damper.jpg\"><img class=\"aligncenter size-full wp-image-581\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/02/Wave-damper.jpg\" alt=\"Wave damper\" width=\"600\" height=\"400\" /></a>\r\n\r\nThis will assist minimise errors in draft reading. Also vessel should put remarks regarding swell height in draft survey report.\r\n\r\n<strong>P&amp;I attendance: </strong>This to be arranged for draft survey/hatch unsealing.\r\n\r\nFrequent draft surveys must be carried out while discharging &amp; care need to be taken to avoid any over-discharging.\r\n\r\n<strong>Ballast: </strong>Ballast must be properly handled at load/discharge ports. A discrepancy in ballast calculation result in cargo discrepancy.\r\n\r\n<strong>Theft of cargo: </strong>Theft of cargo is common in many ports. Ship staff must be vigilant.\r\n\r\nPhotographic evidence of any cargo spillage must be taken and LOP issued stating that vessel shall not be responsible for any cargo short landing.\r\n\r\n<strong>Remarks in cargo documents: </strong>To safeguard owner\'s interests.SOF /MR/BL to be properly remarked at port of loading .\r\n\r\nWith the above stated precautions, we shall be able to avoid cargo disputes.\r\n\r\nEDIN Maritime are experts in taking care of interests of concerned parties .','Prevention of disputes on dry bulk Cargo quantities  at Discharge Ports','','inherit','open','open','','567-revision-v1','','','2015-12-04 18:40:47','2015-12-04 18:40:47','',567,'http://myseatime.com/blogadm/567-revision-v1/',0,'revision','',0,0),(1193,1,'2015-12-04 18:43:37','2015-12-04 18:43:37','There are many questions in shipping industry which seem to be mysteries  of the ancient shipping times with as many theories floating. And one of these question is \"Why Captain\'s cabin is always on Starboard side ?\"\r\n\r\nHere is what I have gathered during my sea career.\r\n\r\nCaptain\'s cabin on the starboard side is a tradition that has been since many years but there has been some exceptions to it where captain\'s cabin is on port side. Leaving aside the exceptions, in old days, the starboard side was considered superior to port side in every sense, be it flag etiquettes or two watch system in old days where more experienced staff used to keep watch on starboard side, the starboard side was considered superior to port side. Captain being overall incharge of the ship was considered superior to all the crew onboard and was given superior side of the ship.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/02/porthole_opt.jpg\"><img class=\"aligncenter size-full wp-image-556\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/02/porthole_opt.jpg\" alt=\"porthole_opt\" width=\"765\" height=\"422\" /></a>\r\n\r\nIn modern days however it is not superiority that is considered for captain cabin to starboard side. Starboard side is give way side in ROR (Rule of the road) and captain is expected to see the traffic on starboard side of his ship just to be aware of the traffic situation where it is his ship\'s duty to take action. He can then also monitor if the officer on watch has taken the required action to avoid close quarter situation.\r\n\r\nDo you have any other theory  or do you agree with this explanation ?  Do you have any other such question ? Leave a comment.\r\n\r\nMeanwhile wishing you all fair winds and following seas.','Why Captain\'s cabin is always on starboard side ?','','inherit','open','open','','554-revision-v1','','','2015-12-04 18:43:37','2015-12-04 18:43:37','',554,'http://myseatime.com/blogadm/554-revision-v1/',0,'revision','',0,0),(1194,1,'2015-12-04 18:44:04','2015-12-04 18:44:04','There are many questions in shipping industry which seem to be mysteries  of the ancient shipping times with as many theories floating. And one of these question is \"Why Captain\'s cabin is always on Starboard side?\" Here is what I have gathered during my sea career.\r\n\r\nCaptain\'s cabin on the starboard side is a tradition that has been since many years but there has been some exceptions to it where captain\'s cabin is on port side. Leaving aside the exceptions, in old days, the starboard side was considered superior to port side in every sense, be it flag etiquettes or two watch system in old days where more experienced staff used to keep watch on starboard side, the starboard side was considered superior to port side. Captain being overall incharge of the ship was considered superior to all the crew onboard and was given superior side of the ship.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/02/porthole_opt.jpg\"><img class=\"aligncenter size-full wp-image-556\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/02/porthole_opt.jpg\" alt=\"porthole_opt\" width=\"765\" height=\"422\" /></a>\r\n\r\nIn modern days however it is not superiority that is considered for captain cabin to starboard side. Starboard side is give way side in ROR (Rule of the road) and captain is expected to see the traffic on starboard side of his ship just to be aware of the traffic situation where it is his ship\'s duty to take action. He can then also monitor if the officer on watch has taken the required action to avoid close quarter situation.\r\n\r\nDo you have any other theory  or do you agree with this explanation ?  Do you have any other such question ? Leave a comment.\r\n\r\nMeanwhile wishing you all fair winds and following seas.','Why Captain\'s cabin is always on starboard side ?','','inherit','open','open','','554-revision-v1','','','2015-12-04 18:44:04','2015-12-04 18:44:04','',554,'http://myseatime.com/blogadm/554-revision-v1/',0,'revision','',0,0),(1195,1,'2015-12-04 18:50:05','2015-12-04 18:50:05','Salvage mean “rescue a wrecked or disabled ship or its cargo from loss at sea”. The party rescuing is called “Salvor” and the wrecked or disabled ship is called “Property being salvaged”. Simply put, as per salvage convention Salvor does a work to salvage the property and he gets a reward / Compensation for his efforts to save the property.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/10/costa-concordia.jpg\"><img class=\"aligncenter size-full wp-image-1136\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/10/costa-concordia.jpg\" alt=\"costa-concordia\" width=\"985\" height=\"349\" /></a>\r\n\r\nThe introduction and historical developments in salvage convention apart from listing the duties of various parties, has been based upon the question of when and how much monetary benefits the salvor should get for his efforts.\r\n\r\nHistory has seen three major developments in the salvage law\r\n<ol>\r\n	<li>Brussel Convention</li>\r\n	<li>Salvage convention in 1989 and</li>\r\n	<li>SCOPIC Clause in the LOF.</li>\r\n</ol>\r\nThe Brussels convention was the first official convention to talk about salvage at sea and was based upon the “NO CURE, NO PAY” principle. The major problem with the Brussels convention was that salvors would not touch a high risk property as because of being high risk, their chances of getting monetary benefits as well as to recover their expenses were minimal.\r\n\r\nIn the late 80s, with few of the infamous oil pollution incidents, it became a necessity to encourage salvor to take up the high risk salvage contract where potential oil pollution and marine environment was involved and for this reason a special compensation under article 14 was introduced in salvage convention which was also the main distinguishing thing from Brussel’s convention.\r\n<blockquote>As per Article 14 “if the salvor by his salvage operations has prevented or minimised damage to the environment, salvor is entitled for a special compensation equivalent to his expenses which can be increased up to 30%  to 100% of the expenses under certain circumstances. These expenses were to be born by ship owners and this was the first time when P&amp;I clubs were also involved in salvage operation as they had to pay these expenses on owners behalf.\"</blockquote>\r\nBoth Salvor and the ship owners had few concerns with Article 14. Shipowners and P&amp;I clubs were concerned that Salvor could unnecessarily prolong the salvage operation to claim more expenses under special compensation. Also the the Hull underwriters might delay the decision to declare the vessel as “Total Constructive loss” as they would have nothing to loose by delaying their decision.\r\n\r\nSalvor’s concerns mainly were to the applicability of article 14 as this was only applicable in coastal and inland waters and it only applied if there was a threat to the environment which they had to prove.\r\n\r\nThat is when SCOPIC clause came into play.\r\n\r\nThere were number of discussions to solve the limitations of article 14 and various solutions were discussed including a revision of existing salvage convention but it was finally decided to incorporate SCOPIC clause in the Lloyds open form (LOF) with no changes in the salvage convention. LOF is the contract form between the salvor and owner of the ship.\r\n\r\nSCOPIC clause once invoked substitutes article 14. SCOPIC clause solved two concerns for salvors. One, SCOPIC once invoked was applicable in all geographical locations and was not limited to coastal and inland sea. Also SCOPIC was applicable even if there was no threat to the environment and second, SCOPIC clause required security of USD 2 millions which made the salvor sure of the payments.\r\n\r\nThe developments in salvage conventions has been to encourage Salvors to perform even the high risk salvage operation and at same time to ensure that Salvors do not take advantage of their rights as per Salvage conventions and introducing SCOPIC clause in LOF was one such step.\r\n<blockquote><em>As per para 2 of SCOPIC clause “The Contractor shall have the option to invoke by written notice to the owners of the vessel the SCOPIC clause set out hereafter at any time of his choosing regardless of the circumstances and, in particular, regardless of whether or not there is a “threat of damage to the environment”.</em></blockquote>\r\nSo It is upto Salvor if he wants to invoke SCOPIC or not and he can invoke it at any time. The question is what will make Salvor decide if he should invoke SCOPIC or not ?\r\n\r\nWith SCOPIC clause the Salvor is absolutely certain of at least recovering his expenses. If at any time the salvor feels that he might not be able to save the property, he would want to invoke SCOPIC clause as if he doesn’t , he will not get any compensation on the principal of “NO CURE NO PAY”. He would get to recover his expenses under article 14 only if there is threat to environment, which again he has to prove. But then the question is what is stopping him to invoke SCOPIC at the start of the contract ? and the answer lies in the para 7 of the SCOPIC clause which states\r\n<blockquote><i>“If the SCOPIC clause is invoked under sub-clause 2 hereof and the Article 13 Award or settlement under the Main Agreement is greater than the assessed SCOPIC remuneration then, notwithstanding the actual date on which the SCOPIC remuneration provisions were invoked, the said Article 13 Award or settlement shall be discounted by 25% of the difference between the said Article 13 Award or settlement and the amount of SCOPIC remuneration that would have been assessed had the SCOPIC remuneration provisions been invoked on the first day of the services”.</i></blockquote>\r\nWhich mean that if SCOPIC clause is invoked and the salvor was able to save property and hence was eligible for award as per article 13, his reward would be reduced by 25%. So if the salvor is very much certain for success of salvage, he would not invoke SCOPIC clause.\r\n\r\nI would come back with a blog on what Masters and ship staff are supposed to know and do in salvage operations.\r\n\r\nWishing you all fair winds and following seas...','Simplifying SCOPIC clause and salvage convention','','inherit','open','open','','474-revision-v1','','','2015-12-04 18:50:05','2015-12-04 18:50:05','',474,'http://myseatime.com/blogadm/474-revision-v1/',0,'revision','',0,0),(1197,1,'2015-12-05 04:52:22','2015-12-05 04:52:22','There are different criteria on which bill of ladings can be defined and differentiated. Few of these criteria being the “place from where carriers takes the responsibility of the cargo” (Port to port, Multimodal and through bill of ladings) or if the owner of the cargo can sell the cargo before it reaches by transferring the title of the bill of lading (Negotiable and non-negotiable bill of lading)\n\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/01/Bill-of-lading.jpg\"><img class=\"aligncenter size-full wp-image-1198\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/01/Bill-of-lading.jpg\" alt=\"bill of lading\" width=\"800\" height=\"520\" /></a>\n\n<b>Different types of bill of ladings based upon Negotiable and non Negotiable documents</b>\n\nThe main difference between the two types is title (ownership) of the one can be transferred to another party while the other is consigned to a named party and hence he/she has to be the final recipient of the cargo as the title of this type of bill of ladings cannot be transferred.\n\nReaders should not confuse the negotiable and non-negotiable types of bill of ladings with the “negotiable” and “non-negotiable” copies of signed bill of ladings.\n\n<b>1. Straight bill of lading:  </b>The straight bill of lading is specified to the particular party and the specified party cannot re-assign it to anyone else. The party only has to take the delivery of the cargo and the cargo cannot be sold by transferring the bill of lading to another party’s name.\n\nQ: Can you think of an example when straight bill of lading can be and will be used?\n\n<b>2. Order bill of lading</b>\n\nThis is the bill of lading that one would mostly come across onboard. The bill of lading is to the consignee or to his order. That is the named consignee will be the owner of the cargo or he can order the shipment to be delivered to another party by endorsing the bill of lading to that party.\n\nAs the title (ownership) of the bill of lading can be transferred, Order bill of lading is negotiable document.\n\n<b>3. Bearer bill of lading</b>\n\nThe bearer bill of lading is the one in which the bearer of the bill of lading is the owner of the cargo and their is no consignee named in the bill of lading. This kind of bill of lading is very seldom found as there are huge risks involved in the misuse of this kind of bill of ladings.\n\nAgain as the title (ownership) of the bill of lading can be transferred, Order bill of lading is negotiable document.\n\n<b>4. Switch bill of lading</b>\n\nThis can said to be the duplicate bill of lading for a cargo of which the bill of lading was already issued. Switch bill of lading is generally requested by the consignee from the owner of the vessel when the consignee do not wish to reveal to the new buyer the identity of the shipper of the cargo.\n\n<strong>Types of Bill of ladings based upon carriers responsibility</strong>\n\n<strong>1.</strong> <b>Port to port bill of lading (also called Ocean bill of lading)</b>\n\nIn this kind of bill of ladings, Carriers responsibility starts at port of loading and ends at port of discharge\n\n<b>2. Multimodal or Combined bill of lading</b>\n\nThis kind of bill of lading cover more than one mode of transfers (for example, Ocean and rail or Ocean and road) and covers all the mode of transfers. Carrier has the responsibility from place of receipt to place of delivery of the cargo. Carrier can hire/sub contract to carry the cargo in one or more mode of transfers.\n\n<b>3. Through bill of ladings</b>\n\nThe main difference between multimodal and through bill of lading is that in through bill of lading there is only one mode of of cargo movement but has different legs, like sea and inland waterways. Whereas in multimodal bill of lading there has to be at least two modes of cargo movement (like sea and land).\n\nWith respect to carrier’s responsibility, In through bill of lading, carrier is responsible only for their leg of sea transport.\n\nMany believe there is no difference between the Multimodal and through bill of ladings which is not correct.\n\n* If you think there is another important bill of lading that has been missed out here, please share in comment section and I would be happy to include that in this blog.','Different types of bill of ladings','','inherit','open','open','','429-autosave-v1','','','2015-12-05 04:52:22','2015-12-05 04:52:22','',429,'http://myseatime.com/blogadm/429-autosave-v1/',0,'revision','',0,0),(1198,1,'2015-12-05 04:52:06','2015-12-05 04:52:06','','Bill of lading','','inherit','open','open','','bill-of-lading-2','','','2015-12-05 04:52:21','2015-12-05 04:52:21','',429,'http://myseatime.com/blogadm/wp-content/uploads/2015/01/Bill-of-lading.jpg',0,'attachment','image/jpeg',0,0),(1199,1,'2015-12-05 04:52:25','2015-12-05 04:52:25','There are different criteria on which bill of ladings can be defined and differentiated. Few of these criteria being the “place from where carriers takes the responsibility of the cargo” (Port to port, Multimodal and through bill of ladings) or if the owner of the cargo can sell the cargo before it reaches by transferring the title of the bill of lading (Negotiable and non-negotiable bill of lading)\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/01/Bill-of-lading.jpg\"><img class=\"aligncenter size-full wp-image-1198\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/01/Bill-of-lading.jpg\" alt=\"bill of lading\" width=\"800\" height=\"520\" /></a>\r\n\r\n<b>Different types of bill of ladings based upon Negotiable and non Negotiable documents</b>\r\n\r\nThe main difference between the two types is title (ownership) of the one can be transferred to another party while the other is consigned to a named party and hence he/she has to be the final recipient of the cargo as the title of this type of bill of ladings cannot be transferred.\r\n\r\nReaders should not confuse the negotiable and non-negotiable types of bill of ladings with the “negotiable” and “non-negotiable” copies of signed bill of ladings.\r\n\r\n<b>1. Straight bill of lading:  </b>The straight bill of lading is specified to the particular party and the specified party cannot re-assign it to anyone else. The party only has to take the delivery of the cargo and the cargo cannot be sold by transferring the bill of lading to another party’s name.\r\n\r\nQ: Can you think of an example when straight bill of lading can be and will be used?\r\n\r\n<b>2. Order bill of lading</b>\r\n\r\nThis is the bill of lading that one would mostly come across onboard. The bill of lading is to the consignee or to his order. That is the named consignee will be the owner of the cargo or he can order the shipment to be delivered to another party by endorsing the bill of lading to that party.\r\n\r\nAs the title (ownership) of the bill of lading can be transferred, Order bill of lading is negotiable document.\r\n\r\n<b>3. Bearer bill of lading</b>\r\n\r\nThe bearer bill of lading is the one in which the bearer of the bill of lading is the owner of the cargo and their is no consignee named in the bill of lading. This kind of bill of lading is very seldom found as there are huge risks involved in the misuse of this kind of bill of ladings.\r\n\r\nAgain as the title (ownership) of the bill of lading can be transferred, Order bill of lading is negotiable document.\r\n\r\n<b>4. Switch bill of lading</b>\r\n\r\nThis can said to be the duplicate bill of lading for a cargo of which the bill of lading was already issued. Switch bill of lading is generally requested by the consignee from the owner of the vessel when the consignee do not wish to reveal to the new buyer the identity of the shipper of the cargo.\r\n\r\n<strong>Types of Bill of ladings based upon carriers responsibility</strong>\r\n\r\n<strong>1.</strong> <b>Port to port bill of lading (also called Ocean bill of lading)</b>\r\n\r\nIn this kind of bill of ladings, Carriers responsibility starts at port of loading and ends at port of discharge\r\n\r\n<b>2. Multimodal or Combined bill of lading</b>\r\n\r\nThis kind of bill of lading cover more than one mode of transfers (for example, Ocean and rail or Ocean and road) and covers all the mode of transfers. Carrier has the responsibility from place of receipt to place of delivery of the cargo. Carrier can hire/sub contract to carry the cargo in one or more mode of transfers.\r\n\r\n<b>3. Through bill of ladings</b>\r\n\r\nThe main difference between multimodal and through bill of lading is that in through bill of lading there is only one mode of of cargo movement but has different legs, like sea and inland waterways. Whereas in multimodal bill of lading there has to be at least two modes of cargo movement (like sea and land).\r\n\r\nWith respect to carrier’s responsibility, In through bill of lading, carrier is responsible only for their leg of sea transport.\r\n\r\nMany believe there is no difference between the Multimodal and through bill of ladings which is not correct.\r\n\r\n* If you think there is another important bill of lading that has been missed out here, please share in comment section and I would be happy to include that in this blog.','Different types of bill of ladings','','inherit','open','open','','429-revision-v1','','','2015-12-05 04:52:25','2015-12-05 04:52:25','',429,'http://myseatime.com/blogadm/429-revision-v1/',0,'revision','',0,0),(1200,1,'2015-12-06 12:23:55','2015-12-06 12:23:55','Emergency batteries as well as GMDSS batteries onboard serve an important function. During a black out, emergency generator need some power source to start in auto. Emergency batteries feed this required power to the emergency generator. If the emergency batteries are week, your emergency generator may not start in auto mode. You would then need to start the emergency generator manually from emergency generator room. This can take away vital time which may result in disastrous situations.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/04/off-grid-battery-rolls-for-cabo-san-lucas_opt.jpg\"><img class=\"aligncenter size-full wp-image-1001\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/04/off-grid-battery-rolls-for-cabo-san-lucas_opt.jpg\" alt=\"emergency batteries\" width=\"750\" height=\"499\" /></a>\r\n\r\nMonthly testing of emergency generators tests just the components of emergency generator. It does not test other components like emergency batteries. So how do we know if our emergency batteries are good and can start the emergency generator? Apart from checking the health of the batteries, load test of the emergency generator does that. Usually this load test is performed quarterly. One of the rationale behind the load test should be to take away the main power source from the emergency generator and then blacking out to see if the emergency generator starts.\r\n\r\nComing to GMDSS batteries now. As per SOLAS GMDSS batteries should provide power to operate GMDSS for\r\n<ol>\r\n	<li>1 hour in case GMDSS has the power from emergency generators</li>\r\n	<li>6 hours in case GMDSS does not have the power from emergency generators.</li>\r\n</ol>\r\nNow how do we test the GMDSS batteries to be sure that these won’t die down before the required time. Some of us confuse this test with the On load/Off load daily test of the batteries. They argue that we need to switch off the AC power to GMDSS and operate the GMDSS for 1 hour (or 6 hours) . But this is not correct.\r\n\r\nYard provides the specifications of the required batteries during  delivery of the vessel. If we have renewed the batteries with same specifications, we can be sure that the batteries would last for the required period. Of course this would not be the case if the capacity of the batteries has reduced during the life of the batteries. To be sure that the capacity of the GMDSS batteries is OK, a capacity test is performed every year. This is important test which ensures that in emergency your GMDSS batteries would last up to the required time.\r\n\r\nWishing you all fair winds following seas.','Are your emergency & GMDSS batteries in good shape ?','','inherit','open','open','','1000-revision-v1','','','2015-12-06 12:23:55','2015-12-06 12:23:55','',1000,'http://myseatime.com/blogadm/1000-revision-v1/',0,'revision','',0,0),(1201,1,'2015-12-06 15:16:53','2015-12-06 15:16:53','','Anchor ship','','inherit','open','open','','anchor-ship','','','2015-12-06 15:16:53','2015-12-06 15:16:53','',760,'http://myseatime.com/blogadm/wp-content/uploads/2015/03/Anchor-ship.jpg',0,'attachment','image/jpeg',0,0),(1202,1,'2015-12-06 15:17:27','2015-12-06 15:17:27','Ever wondered why do we sometimes have both the anchors of different lengths. It is not very uncommon to notice 10 shackles on one anchor while 11 shackles on other one. All the requirements concerning anchor onboard are formulated in the guidelines issued by International association of international classification (IACS). These requirements include requirements for anchor weight, diameter and steel grade for the stud link of the chain cable and the length of the anchor chain etc.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/Anchor-ship.jpg\"><img class=\"aligncenter size-full wp-image-1201\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/Anchor-ship.jpg\" alt=\"Anchor ship\" width=\"800\" height=\"520\" /></a>\r\n\r\nAll these requirements are governed by something called “Equipment number”. If you would have seen the anchor certificate generally issued during yard delivery of the vessel, you would find the equipment number on that certificate.\r\n\r\nEquipment number is calculated by formula\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/equipment-number.jpg\"><img class=\"aligncenter size-full wp-image-761\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/equipment-number.jpg\" alt=\"equipment number\" width=\"650\" height=\"520\" /></a>\r\n\r\nAs per the equipment number, the total length of the anchor chain is given. So if say, for a particular equipment number, the minimum length of the cable required is 21 shackles, one side of the anchor is given 10 shackles and the other one 11 shackles. Below is the table that shows how equipment number corresponds to the particulars of the anchors onboard.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/EN.jpg\"><img class=\"aligncenter size-full wp-image-764\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/EN.jpg\" alt=\"EN\" width=\"500\" height=\"600\" /></a>\r\n\r\nDid you find this information useful ? Let your views flow in the comments below. Meanwhile wishing you all fair winds and following seas.','Why do we sometimes have two anchors of different cable lengths onboard ships ?','','inherit','open','open','','760-revision-v1','','','2015-12-06 15:17:27','2015-12-06 15:17:27','',760,'http://myseatime.com/blogadm/760-revision-v1/',0,'revision','',0,0),(1203,1,'2015-12-06 16:02:34','2015-12-06 16:02:34','ENOA/D stands for “electronic Notice of arrival and Departure”. Both US coast guard (USCG) and “Custom &amp; boarder protection (CBP)” require the vessels to notify them of their arrivals and departure from the US ports. ENOA/D fulfils the Arrival and departure requirements of both USCG as well as CBP.\n\n<a title=\"By U.S. Coast Guard photo by Public Affairs Specialist 3rd Class Kelly Newlin [Public domain], via Wikimedia Commons\" href=\"https://commons.wikimedia.org/wiki/File%3AUSCG_defender_class_NY_harbor.jpg\"><img src=\"https://upload.wikimedia.org/wikipedia/commons/thumb/4/42/USCG_defender_class_NY_harbor.jpg/1024px-USCG_defender_class_NY_harbor.jpg\" alt=\"USCG defender class NY harbor\" width=\"1\" /></a>\n\n<b>Who is required to submit eNOAD</b>\n\nAs per 33 CFR 160.212(3)\n<blockquote><em>Except as set out in paragraph (a)(2) of section 160.212 of 33 CFR, all vessels scheduled to arrive at any U.S. port or any port in a U.S. territory, must submit electronic Notification of Arrival/Departure (e-NOA/Ds)</em></blockquote>\n<b>What all reports are to be sent</b>\n\nFirst Arrival notice is to sent before entry into the first US port of the voyage. Subsequently Arrival notice is to be sent before each arrival to the US port. The Departure report is to be sent for last port in US. So if vessel is arriving from a foreign port to US, arrival notice is to be sent every time for each US port but the departure report is to be sent only for the last US port before finally leaving US port for a port outside US.\n\n<b>How these reports are to be sent</b>\n\nThere are three ways of submitting these reports\n<ol>\n	<li>Through the internet, if you have internet onboard. This can be submitted by visiting <a href=\"https://enoad.nvmc.uscg.gov\">https://enoad.nvmc.uscg.gov</a>.</li>\n	<li>Through the Microsoft infopath which is usually integrated by your onboard email provider such as amosconnect.</li>\n	<li>Through an agent.</li>\n</ol>\nIn case you are sending it by second option, you must ensure that you have latest version of  eNOAD infopath by enquiring from IT department of your company.\n\n<b>Arrival Notice</b>\n\nArrival notice is to be sent for each US port. Below table gives when arrival notice is required to be sent. It is always wise to send the notices well in time to allow time for last minute hiccups.\n\n<b>Departure Notice</b>\n\nDeparture notice is to be sent minimum 60 minutes before departing last US port but it is always wise to send the Departure notice after berthing at last US port. If there is a crew change on the last US port , People sometimes wait for sending the departure notice until the sign on crew boards the vessel. This may not be a wise thing to do as crew might board just few minutes before the departure and then the vessel may not comply with the departure notice requirement.\n\nThere can be number of ways to handle this situation but I preferred sending the departure notice with present crew onboard and then sending the update to the departure notice, once the sign on crew boards the vessel.\n\nAnother point here is that 60 minutes time is taken from the time pilot boards your vessel and this time is communicated by the pilot and not the vessel. Pilots in USA usually arrive few minutes to few hours before their expected time, so it is very important to send the departure notice well in advance.\n\n<b>Update to the Arrival or Departure Notice</b>\n\nUpdate to the notice is to sent if there is any change in data sent in the initial arrival or departure notice including if the ETA (in case of arrival notice) changes to more than 6 hours.  As discussed before, for Departure notice, update may need to be sent if there was a crew change after the initial Departure Notice is sent.\n\nHowever if your port of arrival has changed, updating the eNOA with new port of Arrival will NOT work. Each arrival and Departure notice is for that particular port only. If the arrival port is changed, a New eNOA with updated arrival port need to be sent and previous notice need to be cancelled by calling agent or NVMC phone number.\n\nThere are Few common mistakes which ship staff could make when sending eNOA.\n\n<b>Errors in crew manifest in eNOAD</b>: The important thing here is that crew names has to be as per their US Visa and not as per their passport. Other common typo errors include that in Passport numbers and date of birth. CBP can issue penalties of USD 5000 in case any such errors are spotted in the eNOAD from the vessel. Crew details should be checked multiple times before submitting the eNOA.\n\n<b>Confusion for Port of Arrival: </b>Different USCG COTP interpret the “Port of Arrival” differently. Some consider it to be the designated anchorage of the port and other consider it to be the particular berth that vessel is arriving. The vessels ETA can vary drastically for both interpretation of port of arrival. Master or person responsible for sending eNOAD must clarify same in advance with the agent of the port.\n\n<b>Filling some information thinking you know this: </b>\n\n<b></b>While filling up eNOA, it is always advisable to confirm Arrival port information (like City, state, Arrival port, Arrival place, Anchorage &amp; receiving facility) and 24 Hour point of contact information from your agent, even if you think you know this.\n\n<b>Important point of contacts regarding eNOA</b>\n\nemail for sending eNOAD through infopath:  <a href=\"mailto:enoad@nvmc.uscg.gov\">enoad@nvmc.uscg.gov</a>\n\nWebsite for online submission of eNOAD: <a href=\"http://www.nvmc.uscg.gov\">http://www.nvmc.uscg.gov</a>\n\nGeneral questions regarding eNOAD :\n\nemail:  <a href=\"mailto:sans@nvmc.uscg.gov\">sans@nvmc.uscg.gov</a> Phone: (800)-708-9823 or (304)-264-2502   Fax: (800)-547-8724 or (304)-264-2684','Ensuring compliance with ENOA/D for vessel trading in US waters','','inherit','open','open','','411-autosave-v1','','','2015-12-06 16:02:34','2015-12-06 16:02:34','',411,'http://myseatime.com/blogadm/411-autosave-v1/',0,'revision','',0,0),(1204,1,'2015-12-06 15:56:22','2015-12-06 15:56:22','','uscg','','inherit','open','open','','uscg','','','2015-12-06 15:56:22','2015-12-06 15:56:22','',411,'http://myseatime.com/blogadm/wp-content/uploads/2015/01/uscg.jpg',0,'attachment','image/jpeg',0,0),(1205,1,'2015-12-06 15:57:30','2015-12-06 15:57:30','ENOA/D stands for “electronic Notice of arrival and Departure”. Both US coast guard (USCG) and “Custom &amp; boarder protection (CBP)” require the vessels to notify them of their arrivals and departure from the US ports. ENOA/D fulfils the Arrival and departure requirements of both USCG as well as CBP.\r\n\r\n<a title=\"By U.S. Coast Guard photo by Public Affairs Specialist 3rd Class Kelly Newlin [Public domain], via Wikimedia Commons\" href=\"https://commons.wikimedia.org/wiki/File%3AUSCG_defender_class_NY_harbor.jpg\"><img src=\"https://upload.wikimedia.org/wikipedia/commons/thumb/4/42/USCG_defender_class_NY_harbor.jpg/512px-USCG_defender_class_NY_harbor.jpg\" alt=\"USCG defender class NY harbor\" width=\"512\" /></a>\r\n\r\n<b>Who is required to submit eNOAD</b>\r\n\r\nAs per 33 CFR 160.212(3)\r\n<blockquote><em>Except as set out in paragraph (a)(2) of section 160.212 of 33 CFR, all vessels scheduled to arrive at any U.S. port or any port in a U.S. territory, must submit electronic Notification of Arrival/Departure (e-NOA/Ds)</em></blockquote>\r\n<b>What all reports are to be sent</b>\r\n\r\nFirst Arrival notice is to sent before entry into the first US port of the voyage. Subsequently Arrival notice is to be sent before each arrival to the US port. The Departure report is to be sent for last port in US. So if vessel is arriving from a foreign port to US, arrival notice is to be sent every time for each US port but the departure report is to be sent only for the last US port before finally leaving US port for a port outside US.\r\n\r\n<b>How these reports are to be sent</b>\r\n\r\nThere are three ways of submitting these reports\r\n<ol>\r\n	<li>Through the internet, if you have internet onboard. This can be submitted by visiting <a href=\"https://enoad.nvmc.uscg.gov\">https://enoad.nvmc.uscg.gov</a>.</li>\r\n	<li>Through the Microsoft infopath which is usually integrated by your onboard email provider such as amosconnect.</li>\r\n	<li>Through an agent.</li>\r\n</ol>\r\nIn case you are sending it by second option, you must ensure that you have latest version of  eNOAD infopath by enquiring from IT department of your company.\r\n\r\n<b>Arrival Notice</b>\r\n\r\nArrival notice is to be sent for each US port. Below table gives when arrival notice is required to be sent. It is always wise to send the notices well in time to allow time for last minute hiccups.\r\n\r\n<b>Departure Notice</b>\r\n\r\nDeparture notice is to be sent minimum 60 minutes before departing last US port but it is always wise to send the Departure notice after berthing at last US port. If there is a crew change on the last US port , People sometimes wait for sending the departure notice until the sign on crew boards the vessel. This may not be a wise thing to do as crew might board just few minutes before the departure and then the vessel may not comply with the departure notice requirement.\r\n\r\nThere can be number of ways to handle this situation but I preferred sending the departure notice with present crew onboard and then sending the update to the departure notice, once the sign on crew boards the vessel.\r\n\r\nAnother point here is that 60 minutes time is taken from the time pilot boards your vessel and this time is communicated by the pilot and not the vessel. Pilots in USA usually arrive few minutes to few hours before their expected time, so it is very important to send the departure notice well in advance.\r\n\r\n<b>Update to the Arrival or Departure Notice</b>\r\n\r\nUpdate to the notice is to sent if there is any change in data sent in the initial arrival or departure notice including if the ETA (in case of arrival notice) changes to more than 6 hours.  As discussed before, for Departure notice, update may need to be sent if there was a crew change after the initial Departure Notice is sent.\r\n\r\nHowever if your port of arrival has changed, updating the eNOA with new port of Arrival will NOT work. Each arrival and Departure notice is for that particular port only. If the arrival port is changed, a New eNOA with updated arrival port need to be sent and previous notice need to be cancelled by calling agent or NVMC phone number.\r\n\r\nThere are Few common mistakes which ship staff could make when sending eNOA.\r\n\r\n<b>Errors in crew manifest in eNOAD</b>: The important thing here is that crew names has to be as per their US Visa and not as per their passport. Other common typo errors include that in Passport numbers and date of birth. CBP can issue penalties of USD 5000 in case any such errors are spotted in the eNOAD from the vessel. Crew details should be checked multiple times before submitting the eNOA.\r\n\r\n<b>Confusion for Port of Arrival: </b>Different USCG COTP interpret the “Port of Arrival” differently. Some consider it to be the designated anchorage of the port and other consider it to be the particular berth that vessel is arriving. The vessels ETA can vary drastically for both interpretation of port of arrival. Master or person responsible for sending eNOAD must clarify same in advance with the agent of the port.\r\n\r\n<b>Filling some information thinking you know this: </b>\r\n\r\n<b></b>While filling up eNOA, it is always advisable to confirm Arrival port information (like City, state, Arrival port, Arrival place, Anchorage &amp; receiving facility) and 24 Hour point of contact information from your agent, even if you think you know this.\r\n\r\n<b>Important point of contacts regarding eNOA</b>\r\n\r\nemail for sending eNOAD through infopath:  <a href=\"mailto:enoad@nvmc.uscg.gov\">enoad@nvmc.uscg.gov</a>\r\n\r\nWebsite for online submission of eNOAD: <a href=\"http://www.nvmc.uscg.gov\">http://www.nvmc.uscg.gov</a>\r\n\r\nGeneral questions regarding eNOAD :\r\n\r\nemail:  <a href=\"mailto:sans@nvmc.uscg.gov\">sans@nvmc.uscg.gov</a>                                                                                                                  Phone: (800)-708-9823 or (304)-264-2502                                                                                                  Fax: (800)-547-8724 or (304)-264-2684\r\n\r\n<strong>Image Credit:</strong> Wikimedia','Ensuring compliance with ENOA/D for vessel trading in US waters','','inherit','open','open','','411-revision-v1','','','2015-12-06 15:57:30','2015-12-06 15:57:30','',411,'http://myseatime.com/blogadm/411-revision-v1/',0,'revision','',0,0),(1206,1,'2015-12-06 15:58:36','2015-12-06 15:58:36','ENOA/D stands for “electronic Notice of arrival and Departure”. Both US coast guard (USCG) and “Custom &amp; boarder protection (CBP)” require the vessels to notify them of their arrivals and departure from the US ports. ENOA/D fulfils the Arrival and departure requirements of both USCG as well as CBP.\r\n\r\n<a title=\"By U.S. Coast Guard photo by Public Affairs Specialist 3rd Class Kelly Newlin [Public domain], via Wikimedia Commons\" href=\"https://commons.wikimedia.org/wiki/File%3AUSCG_defender_class_NY_harbor.jpg\"><img width=\"1024\" alt=\"USCG defender class NY harbor\" src=\"https://upload.wikimedia.org/wikipedia/commons/thumb/4/42/USCG_defender_class_NY_harbor.jpg/1024px-USCG_defender_class_NY_harbor.jpg\"/></a>\r\n\r\n<b>Who is required to submit eNOAD</b>\r\n\r\nAs per 33 CFR 160.212(3)\r\n<blockquote><em>Except as set out in paragraph (a)(2) of section 160.212 of 33 CFR, all vessels scheduled to arrive at any U.S. port or any port in a U.S. territory, must submit electronic Notification of Arrival/Departure (e-NOA/Ds)</em></blockquote>\r\n<b>What all reports are to be sent</b>\r\n\r\nFirst Arrival notice is to sent before entry into the first US port of the voyage. Subsequently Arrival notice is to be sent before each arrival to the US port. The Departure report is to be sent for last port in US. So if vessel is arriving from a foreign port to US, arrival notice is to be sent every time for each US port but the departure report is to be sent only for the last US port before finally leaving US port for a port outside US.\r\n\r\n<b>How these reports are to be sent</b>\r\n\r\nThere are three ways of submitting these reports\r\n<ol>\r\n	<li>Through the internet, if you have internet onboard. This can be submitted by visiting <a href=\"https://enoad.nvmc.uscg.gov\">https://enoad.nvmc.uscg.gov</a>.</li>\r\n	<li>Through the Microsoft infopath which is usually integrated by your onboard email provider such as amosconnect.</li>\r\n	<li>Through an agent.</li>\r\n</ol>\r\nIn case you are sending it by second option, you must ensure that you have latest version of  eNOAD infopath by enquiring from IT department of your company.\r\n\r\n<b>Arrival Notice</b>\r\n\r\nArrival notice is to be sent for each US port. Below table gives when arrival notice is required to be sent. It is always wise to send the notices well in time to allow time for last minute hiccups.\r\n\r\n<b>Departure Notice</b>\r\n\r\nDeparture notice is to be sent minimum 60 minutes before departing last US port but it is always wise to send the Departure notice after berthing at last US port. If there is a crew change on the last US port , People sometimes wait for sending the departure notice until the sign on crew boards the vessel. This may not be a wise thing to do as crew might board just few minutes before the departure and then the vessel may not comply with the departure notice requirement.\r\n\r\nThere can be number of ways to handle this situation but I preferred sending the departure notice with present crew onboard and then sending the update to the departure notice, once the sign on crew boards the vessel.\r\n\r\nAnother point here is that 60 minutes time is taken from the time pilot boards your vessel and this time is communicated by the pilot and not the vessel. Pilots in USA usually arrive few minutes to few hours before their expected time, so it is very important to send the departure notice well in advance.\r\n\r\n<b>Update to the Arrival or Departure Notice</b>\r\n\r\nUpdate to the notice is to sent if there is any change in data sent in the initial arrival or departure notice including if the ETA (in case of arrival notice) changes to more than 6 hours.  As discussed before, for Departure notice, update may need to be sent if there was a crew change after the initial Departure Notice is sent.\r\n\r\nHowever if your port of arrival has changed, updating the eNOA with new port of Arrival will NOT work. Each arrival and Departure notice is for that particular port only. If the arrival port is changed, a New eNOA with updated arrival port need to be sent and previous notice need to be cancelled by calling agent or NVMC phone number.\r\n\r\nThere are Few common mistakes which ship staff could make when sending eNOA.\r\n\r\n<b>Errors in crew manifest in eNOAD</b>: The important thing here is that crew names has to be as per their US Visa and not as per their passport. Other common typo errors include that in Passport numbers and date of birth. CBP can issue penalties of USD 5000 in case any such errors are spotted in the eNOAD from the vessel. Crew details should be checked multiple times before submitting the eNOA.\r\n\r\n<b>Confusion for Port of Arrival: </b>Different USCG COTP interpret the “Port of Arrival” differently. Some consider it to be the designated anchorage of the port and other consider it to be the particular berth that vessel is arriving. The vessels ETA can vary drastically for both interpretation of port of arrival. Master or person responsible for sending eNOAD must clarify same in advance with the agent of the port.\r\n\r\n<b>Filling some information thinking you know this: </b>\r\n\r\n<b></b>While filling up eNOA, it is always advisable to confirm Arrival port information (like City, state, Arrival port, Arrival place, Anchorage &amp; receiving facility) and 24 Hour point of contact information from your agent, even if you think you know this.\r\n\r\n<b>Important point of contacts regarding eNOA</b>\r\n\r\nemail for sending eNOAD through infopath:  <a href=\"mailto:enoad@nvmc.uscg.gov\">enoad@nvmc.uscg.gov</a>\r\n\r\nWebsite for online submission of eNOAD: <a href=\"http://www.nvmc.uscg.gov\">http://www.nvmc.uscg.gov</a>\r\n\r\nGeneral questions regarding eNOAD :\r\n\r\nemail:  <a href=\"mailto:sans@nvmc.uscg.gov\">sans@nvmc.uscg.gov</a>                                                                                                                  Phone: (800)-708-9823 or (304)-264-2502                                                                                                  Fax: (800)-547-8724 or (304)-264-2684\r\n\r\n<strong>Image Credit:</strong> Wikimedia','Ensuring compliance with ENOA/D for vessel trading in US waters','','inherit','open','open','','411-revision-v1','','','2015-12-06 15:58:36','2015-12-06 15:58:36','',411,'http://myseatime.com/blogadm/411-revision-v1/',0,'revision','',0,0),(1207,1,'2015-12-06 16:01:20','2015-12-06 16:01:20','ENOA/D stands for “electronic Notice of arrival and Departure”. Both US coast guard (USCG) and “Custom &amp; boarder protection (CBP)” require the vessels to notify them of their arrivals and departure from the US ports. ENOA/D fulfils the Arrival and departure requirements of both USCG as well as CBP.\r\n\r\n<a title=\"By U.S. Coast Guard photo by Public Affairs Specialist 3rd Class Kelly Newlin [Public domain], via Wikimedia Commons\" href=\"https://commons.wikimedia.org/wiki/File%3AUSCG_defender_class_NY_harbor.jpg\"><img src=\"https://upload.wikimedia.org/wikipedia/commons/thumb/4/42/USCG_defender_class_NY_harbor.jpg/1024px-USCG_defender_class_NY_harbor.jpg\" alt=\"USCG defender class NY harbor\" width=\"1024\" /></a>\r\n\r\n<b>Who is required to submit eNOAD</b>\r\n\r\nAs per 33 CFR 160.212(3)\r\n<blockquote><em>Except as set out in paragraph (a)(2) of section 160.212 of 33 CFR, all vessels scheduled to arrive at any U.S. port or any port in a U.S. territory, must submit electronic Notification of Arrival/Departure (e-NOA/Ds)</em></blockquote>\r\n<b>What all reports are to be sent</b>\r\n\r\nFirst Arrival notice is to sent before entry into the first US port of the voyage. Subsequently Arrival notice is to be sent before each arrival to the US port. The Departure report is to be sent for last port in US. So if vessel is arriving from a foreign port to US, arrival notice is to be sent every time for each US port but the departure report is to be sent only for the last US port before finally leaving US port for a port outside US.\r\n\r\n<b>How these reports are to be sent</b>\r\n\r\nThere are three ways of submitting these reports\r\n<ol>\r\n	<li>Through the internet, if you have internet onboard. This can be submitted by visiting <a href=\"https://enoad.nvmc.uscg.gov\">https://enoad.nvmc.uscg.gov</a>.</li>\r\n	<li>Through the Microsoft infopath which is usually integrated by your onboard email provider such as amosconnect.</li>\r\n	<li>Through an agent.</li>\r\n</ol>\r\nIn case you are sending it by second option, you must ensure that you have latest version of  eNOAD infopath by enquiring from IT department of your company.\r\n\r\n<b>Arrival Notice</b>\r\n\r\nArrival notice is to be sent for each US port. Below table gives when arrival notice is required to be sent. It is always wise to send the notices well in time to allow time for last minute hiccups.\r\n\r\n<b>Departure Notice</b>\r\n\r\nDeparture notice is to be sent minimum 60 minutes before departing last US port but it is always wise to send the Departure notice after berthing at last US port. If there is a crew change on the last US port , People sometimes wait for sending the departure notice until the sign on crew boards the vessel. This may not be a wise thing to do as crew might board just few minutes before the departure and then the vessel may not comply with the departure notice requirement.\r\n\r\nThere can be number of ways to handle this situation but I preferred sending the departure notice with present crew onboard and then sending the update to the departure notice, once the sign on crew boards the vessel.\r\n\r\nAnother point here is that 60 minutes time is taken from the time pilot boards your vessel and this time is communicated by the pilot and not the vessel. Pilots in USA usually arrive few minutes to few hours before their expected time, so it is very important to send the departure notice well in advance.\r\n\r\n<b>Update to the Arrival or Departure Notice</b>\r\n\r\nUpdate to the notice is to sent if there is any change in data sent in the initial arrival or departure notice including if the ETA (in case of arrival notice) changes to more than 6 hours.  As discussed before, for Departure notice, update may need to be sent if there was a crew change after the initial Departure Notice is sent.\r\n\r\nHowever if your port of arrival has changed, updating the eNOA with new port of Arrival will NOT work. Each arrival and Departure notice is for that particular port only. If the arrival port is changed, a New eNOA with updated arrival port need to be sent and previous notice need to be cancelled by calling agent or NVMC phone number.\r\n\r\nThere are Few common mistakes which ship staff could make when sending eNOA.\r\n\r\n<b>Errors in crew manifest in eNOAD</b>: The important thing here is that crew names has to be as per their US Visa and not as per their passport. Other common typo errors include that in Passport numbers and date of birth. CBP can issue penalties of USD 5000 in case any such errors are spotted in the eNOAD from the vessel. Crew details should be checked multiple times before submitting the eNOA.\r\n\r\n<b>Confusion for Port of Arrival: </b>Different USCG COTP interpret the “Port of Arrival” differently. Some consider it to be the designated anchorage of the port and other consider it to be the particular berth that vessel is arriving. The vessels ETA can vary drastically for both interpretation of port of arrival. Master or person responsible for sending eNOAD must clarify same in advance with the agent of the port.\r\n\r\n<b>Filling some information thinking you know this: </b>\r\n\r\n<b></b>While filling up eNOA, it is always advisable to confirm Arrival port information (like City, state, Arrival port, Arrival place, Anchorage &amp; receiving facility) and 24 Hour point of contact information from your agent, even if you think you know this.\r\n\r\n<b>Important point of contacts regarding eNOA</b>\r\n\r\nemail for sending eNOAD through infopath:  <a href=\"mailto:enoad@nvmc.uscg.gov\">enoad@nvmc.uscg.gov</a>\r\n\r\nWebsite for online submission of eNOAD: <a href=\"http://www.nvmc.uscg.gov\">http://www.nvmc.uscg.gov</a>\r\n\r\nGeneral questions regarding eNOAD :\r\n\r\nemail:  <a href=\"mailto:sans@nvmc.uscg.gov\">sans@nvmc.uscg.gov</a> Phone: (800)-708-9823 or (304)-264-2502   Fax: (800)-547-8724 or (304)-264-2684','Ensuring compliance with ENOA/D for vessel trading in US waters','','inherit','open','open','','411-revision-v1','','','2015-12-06 16:01:20','2015-12-06 16:01:20','',411,'http://myseatime.com/blogadm/411-revision-v1/',0,'revision','',0,0),(1208,1,'2015-12-06 16:02:37','2015-12-06 16:02:37','ENOA/D stands for “electronic Notice of arrival and Departure”. Both US coast guard (USCG) and “Custom &amp; boarder protection (CBP)” require the vessels to notify them of their arrivals and departure from the US ports. ENOA/D fulfils the Arrival and departure requirements of both USCG as well as CBP.\r\n\r\n<a title=\"By U.S. Coast Guard photo by Public Affairs Specialist 3rd Class Kelly Newlin [Public domain], via Wikimedia Commons\" href=\"https://commons.wikimedia.org/wiki/File%3AUSCG_defender_class_NY_harbor.jpg\"><img src=\"https://upload.wikimedia.org/wikipedia/commons/thumb/4/42/USCG_defender_class_NY_harbor.jpg/1024px-USCG_defender_class_NY_harbor.jpg\" alt=\"USCG defender class NY harbor\" width=\"800\" /></a>\r\n\r\n<b>Who is required to submit eNOAD</b>\r\n\r\nAs per 33 CFR 160.212(3)\r\n<blockquote><em>Except as set out in paragraph (a)(2) of section 160.212 of 33 CFR, all vessels scheduled to arrive at any U.S. port or any port in a U.S. territory, must submit electronic Notification of Arrival/Departure (e-NOA/Ds)</em></blockquote>\r\n<b>What all reports are to be sent</b>\r\n\r\nFirst Arrival notice is to sent before entry into the first US port of the voyage. Subsequently Arrival notice is to be sent before each arrival to the US port. The Departure report is to be sent for last port in US. So if vessel is arriving from a foreign port to US, arrival notice is to be sent every time for each US port but the departure report is to be sent only for the last US port before finally leaving US port for a port outside US.\r\n\r\n<b>How these reports are to be sent</b>\r\n\r\nThere are three ways of submitting these reports\r\n<ol>\r\n	<li>Through the internet, if you have internet onboard. This can be submitted by visiting <a href=\"https://enoad.nvmc.uscg.gov\">https://enoad.nvmc.uscg.gov</a>.</li>\r\n	<li>Through the Microsoft infopath which is usually integrated by your onboard email provider such as amosconnect.</li>\r\n	<li>Through an agent.</li>\r\n</ol>\r\nIn case you are sending it by second option, you must ensure that you have latest version of  eNOAD infopath by enquiring from IT department of your company.\r\n\r\n<b>Arrival Notice</b>\r\n\r\nArrival notice is to be sent for each US port. Below table gives when arrival notice is required to be sent. It is always wise to send the notices well in time to allow time for last minute hiccups.\r\n\r\n<b>Departure Notice</b>\r\n\r\nDeparture notice is to be sent minimum 60 minutes before departing last US port but it is always wise to send the Departure notice after berthing at last US port. If there is a crew change on the last US port , People sometimes wait for sending the departure notice until the sign on crew boards the vessel. This may not be a wise thing to do as crew might board just few minutes before the departure and then the vessel may not comply with the departure notice requirement.\r\n\r\nThere can be number of ways to handle this situation but I preferred sending the departure notice with present crew onboard and then sending the update to the departure notice, once the sign on crew boards the vessel.\r\n\r\nAnother point here is that 60 minutes time is taken from the time pilot boards your vessel and this time is communicated by the pilot and not the vessel. Pilots in USA usually arrive few minutes to few hours before their expected time, so it is very important to send the departure notice well in advance.\r\n\r\n<b>Update to the Arrival or Departure Notice</b>\r\n\r\nUpdate to the notice is to sent if there is any change in data sent in the initial arrival or departure notice including if the ETA (in case of arrival notice) changes to more than 6 hours.  As discussed before, for Departure notice, update may need to be sent if there was a crew change after the initial Departure Notice is sent.\r\n\r\nHowever if your port of arrival has changed, updating the eNOA with new port of Arrival will NOT work. Each arrival and Departure notice is for that particular port only. If the arrival port is changed, a New eNOA with updated arrival port need to be sent and previous notice need to be cancelled by calling agent or NVMC phone number.\r\n\r\nThere are Few common mistakes which ship staff could make when sending eNOA.\r\n\r\n<b>Errors in crew manifest in eNOAD</b>: The important thing here is that crew names has to be as per their US Visa and not as per their passport. Other common typo errors include that in Passport numbers and date of birth. CBP can issue penalties of USD 5000 in case any such errors are spotted in the eNOAD from the vessel. Crew details should be checked multiple times before submitting the eNOA.\r\n\r\n<b>Confusion for Port of Arrival: </b>Different USCG COTP interpret the “Port of Arrival” differently. Some consider it to be the designated anchorage of the port and other consider it to be the particular berth that vessel is arriving. The vessels ETA can vary drastically for both interpretation of port of arrival. Master or person responsible for sending eNOAD must clarify same in advance with the agent of the port.\r\n\r\n<b>Filling some information thinking you know this: </b>\r\n\r\n<b></b>While filling up eNOA, it is always advisable to confirm Arrival port information (like City, state, Arrival port, Arrival place, Anchorage &amp; receiving facility) and 24 Hour point of contact information from your agent, even if you think you know this.\r\n\r\n<b>Important point of contacts regarding eNOA</b>\r\n\r\nemail for sending eNOAD through infopath:  <a href=\"mailto:enoad@nvmc.uscg.gov\">enoad@nvmc.uscg.gov</a>\r\n\r\nWebsite for online submission of eNOAD: <a href=\"http://www.nvmc.uscg.gov\">http://www.nvmc.uscg.gov</a>\r\n\r\nGeneral questions regarding eNOAD :\r\n\r\nemail:  <a href=\"mailto:sans@nvmc.uscg.gov\">sans@nvmc.uscg.gov</a> Phone: (800)-708-9823 or (304)-264-2502   Fax: (800)-547-8724 or (304)-264-2684','Ensuring compliance with ENOA/D for vessel trading in US waters','','inherit','open','open','','411-revision-v1','','','2015-12-06 16:02:37','2015-12-06 16:02:37','',411,'http://myseatime.com/blogadm/411-revision-v1/',0,'revision','',0,0),(1211,1,'2015-12-06 18:03:17','2015-12-06 18:03:17','Ever wondered why do we sometimes have both the anchors of different lengths. It is not very uncommon to notice 10 shackles on one anchor while 11 shackles on other one. All the requirements concerning anchor onboard are formulated in the guidelines issued by International association of international classification (IACS). These requirements include requirements for anchor weight, diameter and steel grade for the stud link of the chain cable and the length of the anchor chain etc.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/Anchor-ship.jpg\"><img class=\"aligncenter size-full wp-image-1201\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/Anchor-ship.jpg\" alt=\"Anchor ship\" width=\"800\" height=\"520\" /></a>\r\n\r\nAll these requirements are governed by something called “Equipment number”. If you would have seen the anchor certificate generally issued during yard delivery of the vessel, you would find the equipment number on that certificate.\r\n\r\nEquipment number is calculated by formula\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/equipment-number.jpg\"><img class=\"aligncenter size-full wp-image-761\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/equipment-number.jpg\" alt=\"equipment number\" width=\"650\" height=\"520\" /></a>\r\n\r\nAs per the equipment number, the total length of the anchor chain is given. So if say, for a particular equipment number, the minimum length of the cable required is 21 shackles, one side of the anchor is given 10 shackles and the other one 11 shackles. Below is the table that shows how equipment number corresponds to the particulars of the anchors onboard.\r\n\r\n&nbsp;\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/Anchor-length.png\"><img class=\"aligncenter size-full wp-image-1210\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/Anchor-length.png\" alt=\"Anchor length\" width=\"500\" height=\"559\" /></a>\r\n\r\nDid you find this information useful ? Let your views flow in the comments below. Meanwhile wishing you all fair winds and following seas.','Why do we sometimes have two anchors of different cable lengths onboard ships ?','','inherit','open','open','','760-revision-v1','','','2015-12-06 18:03:17','2015-12-06 18:03:17','',760,'http://myseatime.com/blogadm/760-revision-v1/',0,'revision','',0,0),(1212,1,'2015-12-06 18:05:52','2015-12-06 18:05:52','','Anchor length','','inherit','open','open','','anchor-length','','','2015-12-06 18:05:52','2015-12-06 18:05:52','',760,'http://myseatime.com/blogadm/wp-content/uploads/2015/03/Anchor-length.png',0,'attachment','image/png',0,0),(1213,1,'2015-12-06 18:06:22','2015-12-06 18:06:22','Ever wondered why do we sometimes have both the anchors of different lengths. It is not very uncommon to notice 10 shackles on one anchor while 11 shackles on other one. All the requirements concerning anchor onboard are formulated in the guidelines issued by International association of international classification (IACS). These requirements include requirements for anchor weight, diameter and steel grade for the stud link of the chain cable and the length of the anchor chain etc.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/Anchor-ship.jpg\"><img class=\"aligncenter size-full wp-image-1201\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/Anchor-ship.jpg\" alt=\"Anchor ship\" width=\"800\" height=\"520\" /></a>\r\n\r\nAll these requirements are governed by something called “Equipment number”. If you would have seen the anchor certificate generally issued during yard delivery of the vessel, you would find the equipment number on that certificate.\r\n\r\nEquipment number is calculated by formula\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/equipment-number.jpg\"><img class=\"aligncenter size-full wp-image-761\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/equipment-number.jpg\" alt=\"equipment number\" width=\"650\" height=\"520\" /></a>\r\n\r\nAs per the equipment number, the total length of the anchor chain is given. So if say, for a particular equipment number, the minimum length of the cable required is 21 shackles, one side of the anchor is given 10 shackles and the other one 11 shackles. Below is the table that shows how equipment number corresponds to the particulars of the anchors onboard.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/Anchor-length.png\"><img class=\"aligncenter size-full wp-image-1212\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/Anchor-length.png\" alt=\"Anchor length\" width=\"497\" height=\"471\" /></a>\r\n\r\n&nbsp;\r\n\r\nDid you find this information useful ? Let your views flow in the comments below. Meanwhile wishing you all fair winds and following seas.','Why do we sometimes have two anchors of different cable lengths onboard ships ?','','inherit','open','open','','760-revision-v1','','','2015-12-06 18:06:22','2015-12-06 18:06:22','',760,'http://myseatime.com/blogadm/760-revision-v1/',0,'revision','',0,0),(1214,1,'2015-12-06 20:59:14','2015-12-06 20:59:14','There is sometimes great confusion as to the actual identity of shipper, consignee and notify party. Here I explain these terms which are widely used in shipping specially in the bill of ladings.\r\n\r\n<b>Shipper: Who is this guy ??</b>\r\n\r\nMany believe “Shipper” is the supplier or owner of the goods being supplied. It is true but not always.  The business directory defines shipper as  the party responsible for the shipment. When a buyer of goods enters into a contract with seller of the goods through sale contract, apart from other things they also decide who would arrange for the transport. In the multi-modal transport, they may decide which leg of transport is under whom. Who bears what risk is also the basis of various INCOTERMS defined by the International Chamber of Commerce.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/04/samsung.jpg\"><img class=\"aligncenter size-full wp-image-946\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/04/samsung.jpg\" alt=\"samsung\" width=\"680\" height=\"425\" /></a>\r\n\r\nIf the buyer of the goods is responsible for sea transport, he would arrange for a ship to carry the goods and enter into a “Contract of carriage” with the carrier. The buyer here would be “Shipper” under “Contract of carriage”.\r\n\r\nShipper is a term related to “Contract of carriage” but is also closely related to sale contract. So the Shipper bears two hats. He is shipper under “contract of carriage” but he is buyer (or seller) under sale contract.\r\n\r\n<b>Consignee: </b>Consignee is the person to whom the carrier (Ship) is supposed to deliver the goods. In most cases the consignee is the Buyer of the goods but not always. Consignee could be the agent nominated by the buyer. Consignee could also be the buyer’s bank.\r\n\r\nAnother principle different between the terms “Consignee” and “buyer” is that while “Consignee” is the term used in “contract of carriage”, the term “buyer” is used in “sale contract”.\r\n\r\n<b>Notify Party: </b>Notify party is the party to whom the carrier is suppose to notify regarding the arrival ETA’s of the vessel. Notify party is then responsible for arranging the arrival formalities of the vessel. By now you must have guessed it rightly that notify party could be agent ,  receiver of the cargo or any other person/entity who has the interest in the arrival of the cargo.\r\n\r\nWhile the shipper or carrier has the responsibility to keep the notify party abreast of the arrival details of the vessel and failing to do so may lead to unpleasant situations, you may sometimes find on bill of lading a clause where shipper and carrier assume no responsibility for failure to notify. This clause is particularly common in liner shipping.\r\n\r\n* Though very unusual, however there is no restriction on having more than one notify parties. Usually there is only one notify party, who in turn informs all other interested parties regarding the arrival notifications of the vessel and cargo.','Shipper, consignee and Notify party, explained.','','inherit','open','open','','330-revision-v1','','','2015-12-06 20:59:14','2015-12-06 20:59:14','',330,'http://myseatime.com/blogadm/330-revision-v1/',0,'revision','',0,0),(1215,1,'2015-12-07 19:07:19','0000-00-00 00:00:00','<strong>Tokyo</strong> – ClassNK announced that it established Ship Data Center Co., Ltd. in Tokyo, Japan on 7 December 2015, a wholly owned subsidiary that aims to support the use of data gathered from ship operations. The Data Center will be headed by ClassNK Executive Vice President Yasushi Nakamura.\n\nThanks to rapid advances in the development of information and communication technologies, it is now possible to collect large volumes of data on a diverse range of items related to ship operations. But, the approach to data capture is still fragmented with similar data being sent to several vendors and analysis still being carried out almost entirely on a ship-by-ship basis.\n\nTo make larger gains, an effective platform capable of centralizing and managing such diverse data is essential. but, creating and maintaining this kind of platform is costly, time-consuming and unrealistic for some organizations. Furthermore, special care needs to be given to the handling of data to ensure confidentiality of information; hence it is also necessary to establish a secure yet effective platform from an impartial perspective.\n\nAs an independent, non-profit organization with over a century of experience in ship classification, ClassNK drew on its extensive technical knowledge and expertise to develop Ship Data Center Co., Ltd. The Data Center consists of a secured shipping operations database which will serve as an information hub to independently manage the use of big data in the maritime industry. Through the Center’s integrated data, the industry can maximize the benefits of big data with least cost and burden.\n\nTrials of the Data Center will start on a container vessel in February 2016 in cooperation with a Japanese shipping company. Various information including data from the ship’s voyage data recorder and data logger will be gathered from the vessel. Full operation of the Data Center is scheduled from April 2016.\n\nOpportunities for future application of the Data Center are infinite. Beside to optimizing ship operations and improving condition-based monitoring of machinery, the Data Center could also be used to help the industry overcome current and emerging challenges. For example, the entry into force of the Monitoring, Reporting and Verification (MRV) regulation by the EU requires shipowners and operators to annually monitor, report and verify fuel consumption for vessels 5,000 gt or over which call at any EU port. Data collection will be required from 1 January 2018. The Data Center plans to offer these shipowners and operators a secure and neutral database in which to store and manage these vast amounts of fuel consumption data.\n\nClassNK’s establishment of Ship Data Center Co., Ltd. reinforces its position as the indispensable infrastructure of the industry and demonstrates its commitment to creating a safer, greener and more efficient global maritime industry.','','','draft','open','open','','','','','2015-12-07 19:07:19','2015-12-07 19:07:19','',0,'http://myseatime.com/blogadm/?p=1215',0,'post','',0,0),(1216,3,'2015-12-07 19:58:53','2015-12-07 19:58:53','The International Maritime Organization (IMO) has issued a call for papers for a major global research and development forum on ballast water management, to be held in March 2016.  The forum will provide an opportunity for experts to share the latest developments in technologies that may stop the spread of potentially invasive aquatic species in ships’ ballast water.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/BWM-study_squarer_opt.jpg\"><img class=\"aligncenter size-full wp-image-843\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/BWM-study_squarer_opt.jpg\" alt=\"BWM study_squarer_opt\" width=\"750\" height=\"445\" /></a>\r\n\r\nThe 6th Global Environment Facility (GEF)-United Nations Development Program (UNDP)- International Maritime Organization (IMO) GloBallast <a href=\"http://www.ballast2016.com/\">R&amp;D Forum </a>and Exhibition on Ballast Water Management will be held from 16-18 March 2016 at the Headquarters of the  International Civil Aviation Organization (ICAO), in Montreal, Canada.\r\n\r\nAs the world prepares for implementation of the International Ballast Water Management Convention for the Control and Management of Ships\' Ballast Water and Sediments (<a href=\"http://www.imo.org/en/OurWork/Environment/BallastWaterManagement/Pages/Default.aspx\">BWM Convention</a>), the Forum will focus on: “BWM Convention: Moving towards implementation”.  The treaty, when it enters into force, will require ships to manage their ballast water so that any aquatic organisms and pathogens are removed or rendered harmless before the ballast water is released into a new location.\r\n\r\nIMO has been executing the GloBallast Partnerships Project since 2000, to assist developing countries, in particular, to reduce the risk of aquatic bio-invasions.\r\n\r\nThe IMO-GloBallast R&amp;D Forum is organized every two years and brings together regulatory bodies, the maritime industry, academia, leading scientific experts and technology development leaders in the field of ships’ ballast water management for a comprehensive overview of this rapidly expanding area of research and development and technology commercialization.\r\n\r\n<strong>Abstracts</strong>\r\nAbstracts are invited in respect of the planned forum topics:\r\n\r\n• Treatment technologies and alternative management options\r\n• Compliance Monitoring and Enforcement\r\n• Regional approaches, risk assessments and exemptions\r\n• Financing capacity building\r\n• Technology testing and approval\r\n\r\nA shipping industry forum will also be held.\r\n\r\nAbstracts should be submitted by 15 January 2016 via the website: <a href=\"http://www.ballast2016.com/call-for-papers/\">http://www.ballast2016.com/call-for-papers/</a>\r\n\r\nThe extended abstract should be written in English, be a maximum 250 words and include objectives, results and conclusions.\r\n\r\nAbstracts will be reviewed by an international scientific committee and authors will be notified of the acceptance by 29 January 2016.\r\n\r\nThe full paper should be submitted by 26 February 2016 for inclusion in the Forum proceedings.','Call for papers for 2016 IMO-GloBallast R&D Forum on Ballast Water Management','','publish','open','open','','call-for-papers-for-2016-imo-globallast-rd-forum-on-ballast-water-management','','','2015-12-07 19:58:53','2015-12-07 19:58:53','',0,'http://myseatime.com/blogadm/?p=1216',0,'post','',0,98),(1217,3,'2015-12-07 19:46:19','2015-12-07 19:46:19','<p class=\"p1\"><span class=\"s1\"><b>Tokyo</b> – ClassNK announced that it established Ship Data Center Co., Ltd. in Tokyo, Japan on 7 December 2015, a wholly owned subsidiary that aims to support the utilization of data gathered from ship operations. The Data Center will be headed by ClassNK Executive Vice President Yasushi Nakamura.</span></p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Class-NK.jpg\"><img class=\"aligncenter size-full wp-image-1222\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Class-NK.jpg\" alt=\"Class NK\" width=\"750\" height=\"422\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">Thanks to rapid advances in the development of information and communication technologies, it is now possible to collect large volumes of data on a diverse range of items related to ship operations. However, the approach to data capture is still very fragmented with similar data being sent to several vendors and analysis still being carried out almost entirely on a ship-by-ship basis. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">To make larger gains, an effective platform capable of centralizing and managing such diverse data is essential. However, creating and maintaining this kind of platform is costly, time-consuming and unrealistic for some organizations. Furthermore, special care needs to be given to the handling of data to ensure confidentiality of information; hence it is also necessary to establish a secure yet effective platform from an impartial perspective. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">As an independent, non-profit organization with over a century of experience in ship classification, ClassNK drew on its extensive technical knowledge and expertise to develop Ship Data Center Co., Ltd. The Data Center consists of a secured shipping operations database which will serve as an information hub to independently manage the utilization of big data in the maritime industry. Through the Center’s integrated data, the industry can maximize the benefits of big data with minimum cost and burden. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">Trials of the Data Center will commence on a container vessel in February 2016 in cooperation with a Japanese shipping company. Various information including data from the ship’s voyage data recorder and data logger will be gathered from the vessel. Full operation of the Data Center is scheduled from April 2016. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">Opportunities for future application of the Data Center are infinite. In addition to optimizing ship operations and improving condition-based monitoring of machinery, the Data Center could also be used to help the industry overcome current and emerging challenges. For example, the entry into force of the Monitoring, Reporting and Verification (MRV) regulation by the EU requires shipowners and operators to annually monitor, report and verify fuel consumption for vessels 5,000 gt or over which call at any EU port. Data collection will be required from 1 January 2018. The Data Center plans to offer these shipowners and operators a secure and neutral database in which to store and manage these vast amounts of fuel consumption data. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">ClassNK’s establishment of Ship Data Center Co., Ltd. reinforces its position as the indispensable infrastructure of the industry and demonstrates its commitment to creating a safer, greener and more efficient global maritime industry. </span></p>','ClassNK establishes Ship Data Center to accelerate Big Data use in the maritime industry','','publish','open','open','','1217','','','2015-12-07 19:50:31','2015-12-07 19:50:31','',0,'http://myseatime.com/blogadm/?p=1217',0,'post','',0,67),(1219,1,'2015-12-07 19:46:19','2015-12-07 19:46:19','<p class=\"p1\"><span class=\"s1\"><b>Tokyo</b> – ClassNK announced that it established Ship Data Center Co., Ltd. in Tokyo, Japan on 7 December 2015, a wholly owned subsidiary that aims to support the utilization of data gathered from ship operations. The Data Center will be headed by ClassNK Executive Vice President Yasushi Nakamura.</span></p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Class-NK.jpg\"><img class=\"aligncenter size-full wp-image-1218\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Class-NK.jpg\" alt=\"Class NK\" width=\"1280\" height=\"720\" /></a></p>\r\n<p class=\"p1\"></p>\r\n<p class=\"p1\"><span class=\"s1\">Thanks to rapid advances in the development of information and communication technologies, it is now possible to collect large volumes of data on a diverse range of items related to ship operations. However, the approach to data capture is still very fragmented with similar data being sent to several vendors and analysis still being carried out almost entirely on a ship-by-ship basis. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">To make larger gains, an effective platform capable of centralizing and managing such diverse data is essential. However, creating and maintaining this kind of platform is costly, time-consuming and unrealistic for some organizations. Furthermore, special care needs to be given to the handling of data to ensure confidentiality of information; hence it is also necessary to establish a secure yet effective platform from an impartial perspective. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">As an independent, non-profit organization with over a century of experience in ship classification, ClassNK drew on its extensive technical knowledge and expertise to develop Ship Data Center Co., Ltd. The Data Center consists of a secured shipping operations database which will serve as an information hub to independently manage the utilization of big data in the maritime industry. Through the Center’s integrated data, the industry can maximize the benefits of big data with minimum cost and burden. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">Trials of the Data Center will commence on a container vessel in February 2016 in cooperation with a Japanese shipping company. Various information including data from the ship’s voyage data recorder and data logger will be gathered from the vessel. Full operation of the Data Center is scheduled from April 2016. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">Opportunities for future application of the Data Center are infinite. In addition to optimizing ship operations and improving condition-based monitoring of machinery, the Data Center could also be used to help the industry overcome current and emerging challenges. For example, the entry into force of the Monitoring, Reporting and Verification (MRV) regulation by the EU requires shipowners and operators to annually monitor, report and verify fuel consumption for vessels 5,000 gt or over which call at any EU port. Data collection will be required from 1 January 2018. The Data Center plans to offer these shipowners and operators a secure and neutral database in which to store and manage these vast amounts of fuel consumption data. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">ClassNK’s establishment of Ship Data Center Co., Ltd. reinforces its position as the indispensable infrastructure of the industry and demonstrates its commitment to creating a safer, greener and more efficient global maritime industry. </span></p>','','','inherit','open','open','','1217-revision-v1','','','2015-12-07 19:46:19','2015-12-07 19:46:19','',1217,'http://myseatime.com/blogadm/1217-revision-v1/',0,'revision','',0,0),(1220,1,'2015-12-07 19:47:05','2015-12-07 19:47:05','<p class=\"p1\"><span class=\"s1\"><b>Tokyo</b> – ClassNK announced that it established Ship Data Center Co., Ltd. in Tokyo, Japan on 7 December 2015, a wholly owned subsidiary that aims to support the utilization of data gathered from ship operations. The Data Center will be headed by ClassNK Executive Vice President Yasushi Nakamura.</span></p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Class-NK.jpg\"><img class=\"aligncenter size-full wp-image-1218\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Class-NK.jpg\" alt=\"Class NK\" width=\"1280\" height=\"720\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">Thanks to rapid advances in the development of information and communication technologies, it is now possible to collect large volumes of data on a diverse range of items related to ship operations. However, the approach to data capture is still very fragmented with similar data being sent to several vendors and analysis still being carried out almost entirely on a ship-by-ship basis. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">To make larger gains, an effective platform capable of centralizing and managing such diverse data is essential. However, creating and maintaining this kind of platform is costly, time-consuming and unrealistic for some organizations. Furthermore, special care needs to be given to the handling of data to ensure confidentiality of information; hence it is also necessary to establish a secure yet effective platform from an impartial perspective. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">As an independent, non-profit organization with over a century of experience in ship classification, ClassNK drew on its extensive technical knowledge and expertise to develop Ship Data Center Co., Ltd. The Data Center consists of a secured shipping operations database which will serve as an information hub to independently manage the utilization of big data in the maritime industry. Through the Center’s integrated data, the industry can maximize the benefits of big data with minimum cost and burden. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">Trials of the Data Center will commence on a container vessel in February 2016 in cooperation with a Japanese shipping company. Various information including data from the ship’s voyage data recorder and data logger will be gathered from the vessel. Full operation of the Data Center is scheduled from April 2016. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">Opportunities for future application of the Data Center are infinite. In addition to optimizing ship operations and improving condition-based monitoring of machinery, the Data Center could also be used to help the industry overcome current and emerging challenges. For example, the entry into force of the Monitoring, Reporting and Verification (MRV) regulation by the EU requires shipowners and operators to annually monitor, report and verify fuel consumption for vessels 5,000 gt or over which call at any EU port. Data collection will be required from 1 January 2018. The Data Center plans to offer these shipowners and operators a secure and neutral database in which to store and manage these vast amounts of fuel consumption data. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">ClassNK’s establishment of Ship Data Center Co., Ltd. reinforces its position as the indispensable infrastructure of the industry and demonstrates its commitment to creating a safer, greener and more efficient global maritime industry. </span></p>','ClassNK establishes Ship Data Center to accelerate Big Data use in the maritime industry','','inherit','open','open','','1217-revision-v1','','','2015-12-07 19:47:05','2015-12-07 19:47:05','',1217,'http://myseatime.com/blogadm/1217-revision-v1/',0,'revision','',0,0),(1221,1,'2015-12-07 19:49:21','2015-12-07 19:49:21','<p class=\"p1\"><span class=\"s1\"><b>Tokyo</b> – ClassNK announced that it established Ship Data Center Co., Ltd. in Tokyo, Japan on 7 December 2015, a wholly owned subsidiary that aims to support the utilization of data gathered from ship operations. The Data Center will be headed by ClassNK Executive Vice President Yasushi Nakamura.</span></p>\n<p class=\"p1\"></p>\n<p class=\"p1\"><span class=\"s1\">Thanks to rapid advances in the development of information and communication technologies, it is now possible to collect large volumes of data on a diverse range of items related to ship operations. However, the approach to data capture is still very fragmented with similar data being sent to several vendors and analysis still being carried out almost entirely on a ship-by-ship basis. </span></p>\n<p class=\"p1\"><span class=\"s1\">To make larger gains, an effective platform capable of centralizing and managing such diverse data is essential. However, creating and maintaining this kind of platform is costly, time-consuming and unrealistic for some organizations. Furthermore, special care needs to be given to the handling of data to ensure confidentiality of information; hence it is also necessary to establish a secure yet effective platform from an impartial perspective. </span></p>\n<p class=\"p1\"><span class=\"s1\">As an independent, non-profit organization with over a century of experience in ship classification, ClassNK drew on its extensive technical knowledge and expertise to develop Ship Data Center Co., Ltd. The Data Center consists of a secured shipping operations database which will serve as an information hub to independently manage the utilization of big data in the maritime industry. Through the Center’s integrated data, the industry can maximize the benefits of big data with minimum cost and burden. </span></p>\n<p class=\"p1\"><span class=\"s1\">Trials of the Data Center will commence on a container vessel in February 2016 in cooperation with a Japanese shipping company. Various information including data from the ship’s voyage data recorder and data logger will be gathered from the vessel. Full operation of the Data Center is scheduled from April 2016. </span></p>\n<p class=\"p1\"><span class=\"s1\">Opportunities for future application of the Data Center are infinite. In addition to optimizing ship operations and improving condition-based monitoring of machinery, the Data Center could also be used to help the industry overcome current and emerging challenges. For example, the entry into force of the Monitoring, Reporting and Verification (MRV) regulation by the EU requires shipowners and operators to annually monitor, report and verify fuel consumption for vessels 5,000 gt or over which call at any EU port. Data collection will be required from 1 January 2018. The Data Center plans to offer these shipowners and operators a secure and neutral database in which to store and manage these vast amounts of fuel consumption data. </span></p>\n<p class=\"p1\"><span class=\"s1\">ClassNK’s establishment of Ship Data Center Co., Ltd. reinforces its position as the indispensable infrastructure of the industry and demonstrates its commitment to creating a safer, greener and more efficient global maritime industry. </span></p>','ClassNK establishes Ship Data Center to accelerate Big Data use in the maritime industry','','inherit','open','open','','1217-autosave-v1','','','2015-12-07 19:49:21','2015-12-07 19:49:21','',1217,'http://myseatime.com/blogadm/1217-autosave-v1/',0,'revision','',0,0),(1222,1,'2015-12-07 19:49:34','2015-12-07 19:49:34','','Class NK','','inherit','open','open','','class-nk-2','','','2015-12-07 19:49:34','2015-12-07 19:49:34','',1217,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Class-NK.jpg',0,'attachment','image/jpeg',0,0),(1223,1,'2015-12-07 19:50:07','2015-12-07 19:50:07','<p class=\"p1\"><span class=\"s1\"><b>Tokyo</b> – ClassNK announced that it established Ship Data Center Co., Ltd. in Tokyo, Japan on 7 December 2015, a wholly owned subsidiary that aims to support the utilization of data gathered from ship operations. The Data Center will be headed by ClassNK Executive Vice President Yasushi Nakamura.</span></p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Class-NK.jpg\"><img class=\"aligncenter size-full wp-image-1222\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Class-NK.jpg\" alt=\"Class NK\" width=\"750\" height=\"422\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">Thanks to rapid advances in the development of information and communication technologies, it is now possible to collect large volumes of data on a diverse range of items related to ship operations. However, the approach to data capture is still very fragmented with similar data being sent to several vendors and analysis still being carried out almost entirely on a ship-by-ship basis. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">To make larger gains, an effective platform capable of centralizing and managing such diverse data is essential. However, creating and maintaining this kind of platform is costly, time-consuming and unrealistic for some organizations. Furthermore, special care needs to be given to the handling of data to ensure confidentiality of information; hence it is also necessary to establish a secure yet effective platform from an impartial perspective. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">As an independent, non-profit organization with over a century of experience in ship classification, ClassNK drew on its extensive technical knowledge and expertise to develop Ship Data Center Co., Ltd. The Data Center consists of a secured shipping operations database which will serve as an information hub to independently manage the utilization of big data in the maritime industry. Through the Center’s integrated data, the industry can maximize the benefits of big data with minimum cost and burden. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">Trials of the Data Center will commence on a container vessel in February 2016 in cooperation with a Japanese shipping company. Various information including data from the ship’s voyage data recorder and data logger will be gathered from the vessel. Full operation of the Data Center is scheduled from April 2016. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">Opportunities for future application of the Data Center are infinite. In addition to optimizing ship operations and improving condition-based monitoring of machinery, the Data Center could also be used to help the industry overcome current and emerging challenges. For example, the entry into force of the Monitoring, Reporting and Verification (MRV) regulation by the EU requires shipowners and operators to annually monitor, report and verify fuel consumption for vessels 5,000 gt or over which call at any EU port. Data collection will be required from 1 January 2018. The Data Center plans to offer these shipowners and operators a secure and neutral database in which to store and manage these vast amounts of fuel consumption data. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">ClassNK’s establishment of Ship Data Center Co., Ltd. reinforces its position as the indispensable infrastructure of the industry and demonstrates its commitment to creating a safer, greener and more efficient global maritime industry. </span></p>','ClassNK establishes Ship Data Center to accelerate Big Data use in the maritime industry','','inherit','open','open','','1217-revision-v1','','','2015-12-07 19:50:07','2015-12-07 19:50:07','',1217,'http://myseatime.com/blogadm/1217-revision-v1/',0,'revision','',0,0),(1224,1,'2015-12-07 19:58:53','2015-12-07 19:58:53','The International Maritime Organization (IMO) has issued a call for papers for a major global research and development forum on ballast water management, to be held in March 2016.  The forum will provide an opportunity for experts to share the latest developments in technologies that may stop the spread of potentially invasive aquatic species in ships’ ballast water.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/BWM-study_squarer_opt.jpg\"><img class=\"aligncenter size-full wp-image-843\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/03/BWM-study_squarer_opt.jpg\" alt=\"BWM study_squarer_opt\" width=\"750\" height=\"445\" /></a>\r\n\r\nThe 6th Global Environment Facility (GEF)-United Nations Development Program (UNDP)- International Maritime Organization (IMO) GloBallast <a href=\"http://www.ballast2016.com/\">R&amp;D Forum </a>and Exhibition on Ballast Water Management will be held from 16-18 March 2016 at the Headquarters of the  International Civil Aviation Organization (ICAO), in Montreal, Canada.\r\n\r\nAs the world prepares for implementation of the International Ballast Water Management Convention for the Control and Management of Ships\' Ballast Water and Sediments (<a href=\"http://www.imo.org/en/OurWork/Environment/BallastWaterManagement/Pages/Default.aspx\">BWM Convention</a>), the Forum will focus on: “BWM Convention: Moving towards implementation”.  The treaty, when it enters into force, will require ships to manage their ballast water so that any aquatic organisms and pathogens are removed or rendered harmless before the ballast water is released into a new location.\r\n\r\nIMO has been executing the GloBallast Partnerships Project since 2000, to assist developing countries, in particular, to reduce the risk of aquatic bio-invasions.\r\n\r\nThe IMO-GloBallast R&amp;D Forum is organized every two years and brings together regulatory bodies, the maritime industry, academia, leading scientific experts and technology development leaders in the field of ships’ ballast water management for a comprehensive overview of this rapidly expanding area of research and development and technology commercialization.\r\n\r\n<strong>Abstracts</strong>\r\nAbstracts are invited in respect of the planned forum topics:\r\n\r\n• Treatment technologies and alternative management options\r\n• Compliance Monitoring and Enforcement\r\n• Regional approaches, risk assessments and exemptions\r\n• Financing capacity building\r\n• Technology testing and approval\r\n\r\nA shipping industry forum will also be held.\r\n\r\nAbstracts should be submitted by 15 January 2016 via the website: <a href=\"http://www.ballast2016.com/call-for-papers/\">http://www.ballast2016.com/call-for-papers/</a>\r\n\r\nThe extended abstract should be written in English, be a maximum 250 words and include objectives, results and conclusions.\r\n\r\nAbstracts will be reviewed by an international scientific committee and authors will be notified of the acceptance by 29 January 2016.\r\n\r\nThe full paper should be submitted by 26 February 2016 for inclusion in the Forum proceedings.','Call for papers for 2016 IMO-GloBallast R&D Forum on Ballast Water Management','','inherit','open','open','','1216-revision-v1','','','2015-12-07 19:58:53','2015-12-07 19:58:53','',1216,'http://myseatime.com/blogadm/1216-revision-v1/',0,'revision','',0,0),(1225,1,'2015-12-08 09:49:07','0000-00-00 00:00:00','LPG shipping rates are expected to decline from the second half of 2016 as a bloated orderbook for VLGCs (very large gas carriers) fuels fleet growth that will far exceed shipping demand, according to the latest edition of the <a href=\"http://www.drewry.co.uk/publications/view_publication.php?id=323\"><i>LPG Forecaster</i></a>, published by global shipping consultancy Drewry.\n\n&nbsp;\n\nVLGC earnings have had another stellar year, averaging above $2.0 million per calendar month in the period to September 2015. This has been driven by three principle factors: rising US exports; an increase in long-haul trades thanks partly to higher US LPG import penetration to Asia countries; and the slow pace of vessel deliveries.\n\nUS exports have increased significantly in recent years on the back of rising domestic production and expanding LPG export infrastructure, rising 2.5-fold in the two years to 2014. This year’s exports had already surpassed those of 2014 by the end of the third quarter.\n\nOn the demand side, China’s imports rose largely on account of new PDH (propane dehydrogenation) plants becoming operational. The country imported 8.4 million tonnes of LPG during the first nine months of 2015, exceeding 2014 full year import figure of 6.9 million tonnes. Much of this rising consumption is being fulfilled by US LPG, creating greater demand for larger vessels. Similarly, Japan and South Korea are also diversifying from Middle East supplies to US LPG in order to strengthen their bargaining power.\n\nBut while trade continues to grow, shipping capacity has not expanded at the same pace. Only eight VLGC vessels were delivered last year while just 20 joined the fleet during the first three quarters of 2015. Therefore, the gap between VLGCs shipping supply and demand has declined sharply over the past two years which has resulted in high freight rates.\n<blockquote>Going forward, we expect US exports to stay high with new production capacity coming on-stream. We also anticipate that Asian buyers will continue with their diversification programme away from Middle East supplies as US LPG still accounts for less than a third of major Asian countries’ imports. However, the downside for shipping is that vessel fleet growth is expected to accelerate and so widen the supply and demand gap from 2016 onwards , said Shresth Sharma, senior analyst, gas shipping at Drewry.</blockquote>\nMoreover, the expanded Panama Canal will also cut the voyage distance between the US and the Far East by over a third, which will have the effect of further widening the supply-demand gap during 2016-18.\n<blockquote>Although we do not anticipate a sudden fall in freight rates, we do expect rates to start decreasing from the second half of 2016 as the fleet expansion accelerates. While the spot market provides some good short term earnings opportunities, we recommend that shipowners secure longer term charters over the next few months before the market softens on excess fleet supply growth, added Sharma.</blockquote>','LPG Shipping Rates Heading for a Fall, say Drewry','','draft','open','open','','','','','2015-12-08 09:49:07','2015-12-08 09:49:07','',0,'http://myseatime.com/blogadm/?p=1225',0,'post','',0,0),(1226,1,'2015-12-08 12:46:16','0000-00-00 00:00:00','','Auto Draft','','auto-draft','open','open','','','','','2015-12-08 12:46:16','0000-00-00 00:00:00','',0,'http://myseatime.com/blogadm/?p=1226',0,'post','',0,0),(1227,1,'2015-12-08 14:12:58','0000-00-00 00:00:00','','Auto Draft','','auto-draft','open','open','','','','','2015-12-08 14:12:58','0000-00-00 00:00:00','',0,'http://myseatime.com/blogadm/?p=1227',0,'post','',0,0),(1228,3,'2015-12-09 06:15:38','2015-12-09 06:15:38','<p class=\"p1\"><span class=\"s1\">Now operating in the Gulf of Guinea for Marathon Oil after 10,000 nm voyage </span>P&amp;O Repasa, a new company formed last year by the acquisition of the majority of the shares in Spanish towage firm Repasa by P&amp;O Maritime, has taken delivery of one <a href=\"http://products.damen.com/en/ranges/fast-crew-supplier/fcs-5009\" target=\"_blank\"><span class=\"s2\">Damen Fast Crew Supplier 5009</span></a>. The vessel will be operated from Malabo on Bioko Island, Equatorial Guinea. The Red Eagle will ferry personnel and equipment, and supply drinking water and fuel, to offshore rigs and platforms.</p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Red_Eagle_Damen.jpg\"><img class=\"aligncenter size-full wp-image-1229\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Red_Eagle_Damen.jpg\" alt=\"Red_Eagle_Damen\" width=\"800\" height=\"466\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">Built for stock at Damen’s partner Song Thu Shipyard in Vietnam, shortly after the contract was signed the 50-metre FCS 5009 was moved to Damen Shipyards Singapore where she was customised to meet P&amp;O Repasa’s specific needs. Special features have been added such as FiFi1, a hydraulic crane and reefer plugs. Furthermore, a fast rescue craft has been mounted on a davit for rapid launch and recovery along with transfer pumps for the supply of fuel and drinking water. While the FCS 5009 class can take up to 80 personnel, the Red Eagle has been configured for 50.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">Following the works in Singapore, she sailed 7,000 nm non-stop across the Indian Ocean to Damen Shipyards Cape Town on her own hull in 20 days, where she had a short bunker stop and underwent final preparations before sailing the final 2,400 nm to Bioko Island to begin work immediately.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The design of the FCS 5009 is ideal for operations in the Gulf of Guinea where sea conditions can vary from long, slow swells to a short chop. The Damen Sea-Axe Bow copes admirably with both, allowing the FCS 5009 to operate at its cruising speed of around 23 knots for much of the time.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The new P&amp;O Repasa has ambitious plans for expansion. The original Repasa focused on towage operations, but in its new form is looking to expand into fast intervention for the offshore industry in areas including the west coast of Africa. To succeed, this strategy requires dependable partners and a modern fleet, and these factors played an important role in winning the contract with Marathon Oil, particularly at a time when there is substantial overcapacity in the market.</span></p>\r\n<p class=\"p2\"><span class=\"s3\">Another contributory factor was the success of the twin Damen Stan Tugs 1606 delivered to the company just over one year ago. Also in operation with Marathon Oil off Equatorial Guinea, their efficient and effective performance with zero incidents demonstrated the quality of Damen’s design and build capabilities.</span></p>','P&O Repasa takes delivery of Damen FCS 5009 \'Red Eagle\'','','publish','open','open','','po-repasa-takes-delivery-of-damen-fcs-5009-red-eagle','','','2015-12-09 06:38:54','2015-12-09 06:38:54','',0,'http://myseatime.com/blogadm/?p=1228',0,'post','',0,29),(1229,1,'2015-12-09 06:14:46','2015-12-09 06:14:46','','Red_Eagle_Damen','','inherit','open','open','','red_eagle_damen','','','2015-12-09 06:14:46','2015-12-09 06:14:46','',1228,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Red_Eagle_Damen.jpg',0,'attachment','image/jpeg',0,0),(1230,1,'2015-12-09 06:15:38','2015-12-09 06:15:38','<p class=\"p1\"><span class=\"s1\">Now operating in the Gulf of Guinea for Marathon Oil after 10,000 nm voyage </span>P&amp;O Repasa, a new company formed last year by the acquisition of the majority of the shares in Spanish towage firm Repasa by P&amp;O Maritime, has taken delivery of one <a href=\"http://products.damen.com/en/ranges/fast-crew-supplier/fcs-5009\"><span class=\"s2\">Damen Fast Crew Supplier 5009</span></a>. The vessel will be operated from Malabo on Bioko Island, Equatorial Guinea. The Red Eagle will ferry personnel and equipment, and supply drinking water and fuel, to offshore rigs and platforms.</p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Red_Eagle_Damen.jpg\"><img class=\"aligncenter size-full wp-image-1229\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Red_Eagle_Damen.jpg\" alt=\"Red_Eagle_Damen\" width=\"800\" height=\"466\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">Built for stock at Damen’s partner Song Thu Shipyard in Vietnam, shortly after the contract was signed the 50-metre FCS 5009 was moved to Damen Shipyards Singapore where she was customised to meet P&amp;O Repasa’s specific needs. Special features have been added such as FiFi1, a hydraulic crane and reefer plugs. Furthermore, a fast rescue craft has been mounted on a davit for rapid launch and recovery along with transfer pumps for the supply of fuel and drinking water. While the FCS 5009 class can take up to 80 personnel, the Red Eagle has been configured for 50.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">Following the works in Singapore, she sailed 7,000 nm non-stop across the Indian Ocean to Damen Shipyards Cape Town on her own hull in 20 days, where she had a short bunker stop and underwent final preparations before sailing the final 2,400 nm to Bioko Island to begin work immediately.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The design of the FCS 5009 is ideal for operations in the Gulf of Guinea where sea conditions can vary from long, slow swells to a short chop. The Damen Sea-Axe Bow copes admirably with both, allowing the FCS 5009 to operate at its cruising speed of around 23 knots for much of the time.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The new P&amp;O Repasa has ambitious plans for expansion. The original Repasa focused on towage operations, but in its new form is looking to expand into fast intervention for the offshore industry in areas including the west coast of Africa. To succeed, this strategy requires dependable partners and a modern fleet, and these factors played an important role in winning the contract with Marathon Oil, particularly at a time when there is substantial overcapacity in the market.</span></p>\r\n<p class=\"p2\"><span class=\"s3\">Another contributory factor was the success of the twin Damen Stan Tugs 1606 delivered to the company just over one year ago. Also in operation with Marathon Oil off Equatorial Guinea, their efficient and effective performance with zero incidents demonstrated the quality of Damen’s design and build capabilities.</span></p>','P&O Repasa takes delivery of Damen FCS 5009 \'Red Eagle\'','','inherit','open','open','','1228-revision-v1','','','2015-12-09 06:15:38','2015-12-09 06:15:38','',1228,'http://myseatime.com/blogadm/1228-revision-v1/',0,'revision','',0,0),(1231,1,'2015-12-09 06:38:16','2015-12-09 06:38:16','<p class=\"p1\"><span class=\"s1\">Now operating in the Gulf of Guinea for Marathon Oil after 10,000 nm voyage </span>P&amp;O Repasa, a new company formed last year by the acquisition of the majority of the shares in Spanish towage firm Repasa by P&amp;O Maritime, has taken delivery of one <a href=\"http://products.damen.com/en/ranges/fast-crew-supplier/fcs-5009\" target=\"_blank\"><span class=\"s2\">Damen Fast Crew Supplier 5009</span></a>. The vessel will be operated from Malabo on Bioko Island, Equatorial Guinea. The Red Eagle will ferry personnel and equipment, and supply drinking water and fuel, to offshore rigs and platforms.</p>\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Red_Eagle_Damen.jpg\"><img class=\"aligncenter size-full wp-image-1229\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Red_Eagle_Damen.jpg\" alt=\"Red_Eagle_Damen\" width=\"800\" height=\"466\" /></a></p>\n<p class=\"p1\"><span class=\"s1\">Built for stock at Damen’s partner Song Thu Shipyard in Vietnam, shortly after the contract was signed the 50-metre FCS 5009 was moved to Damen Shipyards Singapore where she was customised to meet P&amp;O Repasa’s specific needs. Special features have been added such as FiFi1, a hydraulic crane and reefer plugs. Furthermore, a fast rescue craft has been mounted on a davit for rapid launch and recovery along with transfer pumps for the supply of fuel and drinking water. While the FCS 5009 class can take up to 80 personnel, the Red Eagle has been configured for 50.</span></p>\n<p class=\"p1\"><span class=\"s1\">Following the works in Singapore, she sailed 7,000 nm non-stop across the Indian Ocean to Damen Shipyards Cape Town on her own hull in 20 days, where she had a short bunker stop and underwent final preparations before sailing the final 2,400 nm to Bioko Island to begin work immediately.</span></p>\n<p class=\"p1\"><span class=\"s1\">The design of the FCS 5009 is ideal for operations in the Gulf of Guinea where sea conditions can vary from long, slow swells to a short chop. The Damen Sea-Axe Bow copes admirably with both, allowing the FCS 5009 to operate at its cruising speed of around 23 knots for much of the time.</span></p>\n<p class=\"p1\"><span class=\"s1\">The new P&amp;O Repasa has ambitious plans for expansion. The original Repasa focused on towage operations, but in its new form is looking to expand into fast intervention for the offshore industry in areas including the west coast of Africa. To succeed, this strategy requires dependable partners and a modern fleet, and these factors played an important role in winning the contract with Marathon Oil, particularly at a time when there is substantial overcapacity in the market.</span></p>\n<p class=\"p2\"><span class=\"s3\">Another contributory factor was the success of the twin Damen Stan Tugs 1606 delivered to the company just over one year ago. Also in operation with Marathon Oil off Equatorial Guinea, their efficient and effective performance with zero incidents demonstrated the quality of Damen’s design and build capabilities.</span></p>','P&O Repasa takes delivery of Damen FCS 5009 \'Red Eagle\'','','inherit','open','open','','1228-autosave-v1','','','2015-12-09 06:38:16','2015-12-09 06:38:16','',1228,'http://myseatime.com/blogadm/1228-autosave-v1/',0,'revision','',0,0),(1232,1,'2015-12-09 06:38:54','2015-12-09 06:38:54','<p class=\"p1\"><span class=\"s1\">Now operating in the Gulf of Guinea for Marathon Oil after 10,000 nm voyage </span>P&amp;O Repasa, a new company formed last year by the acquisition of the majority of the shares in Spanish towage firm Repasa by P&amp;O Maritime, has taken delivery of one <a href=\"http://products.damen.com/en/ranges/fast-crew-supplier/fcs-5009\" target=\"_blank\"><span class=\"s2\">Damen Fast Crew Supplier 5009</span></a>. The vessel will be operated from Malabo on Bioko Island, Equatorial Guinea. The Red Eagle will ferry personnel and equipment, and supply drinking water and fuel, to offshore rigs and platforms.</p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Red_Eagle_Damen.jpg\"><img class=\"aligncenter size-full wp-image-1229\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Red_Eagle_Damen.jpg\" alt=\"Red_Eagle_Damen\" width=\"800\" height=\"466\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">Built for stock at Damen’s partner Song Thu Shipyard in Vietnam, shortly after the contract was signed the 50-metre FCS 5009 was moved to Damen Shipyards Singapore where she was customised to meet P&amp;O Repasa’s specific needs. Special features have been added such as FiFi1, a hydraulic crane and reefer plugs. Furthermore, a fast rescue craft has been mounted on a davit for rapid launch and recovery along with transfer pumps for the supply of fuel and drinking water. While the FCS 5009 class can take up to 80 personnel, the Red Eagle has been configured for 50.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">Following the works in Singapore, she sailed 7,000 nm non-stop across the Indian Ocean to Damen Shipyards Cape Town on her own hull in 20 days, where she had a short bunker stop and underwent final preparations before sailing the final 2,400 nm to Bioko Island to begin work immediately.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The design of the FCS 5009 is ideal for operations in the Gulf of Guinea where sea conditions can vary from long, slow swells to a short chop. The Damen Sea-Axe Bow copes admirably with both, allowing the FCS 5009 to operate at its cruising speed of around 23 knots for much of the time.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The new P&amp;O Repasa has ambitious plans for expansion. The original Repasa focused on towage operations, but in its new form is looking to expand into fast intervention for the offshore industry in areas including the west coast of Africa. To succeed, this strategy requires dependable partners and a modern fleet, and these factors played an important role in winning the contract with Marathon Oil, particularly at a time when there is substantial overcapacity in the market.</span></p>\r\n<p class=\"p2\"><span class=\"s3\">Another contributory factor was the success of the twin Damen Stan Tugs 1606 delivered to the company just over one year ago. Also in operation with Marathon Oil off Equatorial Guinea, their efficient and effective performance with zero incidents demonstrated the quality of Damen’s design and build capabilities.</span></p>','P&O Repasa takes delivery of Damen FCS 5009 \'Red Eagle\'','','inherit','open','open','','1228-revision-v1','','','2015-12-09 06:38:54','2015-12-09 06:38:54','',1228,'http://myseatime.com/blogadm/1228-revision-v1/',0,'revision','',0,0),(1233,3,'2015-12-09 06:50:58','2015-12-09 06:50:58','<p class=\"p1\"><span class=\"s1\">Rolls-Royce today signed a contract with Sinopacific Shipbuilding Group (Sinopacific) in Shanghai for a package of power and propulsion equipment and deck machinery. </span>The contract is to equip nine SPA80A Anchor Handling Tug Supply vessels to be designed and built by Sinopacific Shipbuilding Group and owned and operated by the Abu Dhabi National Oil Company (ADNOC) and its wholly-owned subsidiary, ESNAAD.</p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Rolls-Royce.jpg\"><img class=\"aligncenter size-full wp-image-1234\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Rolls-Royce.jpg\" alt=\"Rolls Royce\" width=\"630\" height=\"380\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">Each ship will have a bollard pull of 80 metric tonnes, and be equipped with highly efficient Bergen diesel engines, main and tunnel thrusters, electrical power system and a deck machinery package from Rolls-Royce. This represents a suite of reliable and robust technology developed for the most demanding conditions.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">JIANG Qiang, Chief Executive Officer of Sinopacific said: </span></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">The visit of Rolls-Royce senior executives to Sinopacific in 2013 reinforced the relationship between our two companies as did the provision of  Rolls-Royce integrated equipment packages for Sinopacific’s in-house designed SPA150 AHTS series. This was a first for Rolls-Royce in the Chinese market.</span></p>\r\n</blockquote>\r\n<p class=\"p1\"><span class=\"s1\">The Rolls-Royce Chinese team has provided us with great support by staying close, enhancing communications and giving us confidence for future cooperation. Sinopacific aims to work closely with our strategic partners, such as Rolls-Royce, presenting the best products and services for our ship owners while strengthening our leadership in the most demanding markets.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">Richard Wang, Rolls-Royce, Senior Vice President Commercial – Marine said: </span></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">This is a significant contract. It demonstrates our market leading capabilities in a wide range of offshore marine products, and our ability to combine them in a way that creates real value for our customers.</span></p>\r\n</blockquote>\r\n<p class=\"p1\"><span class=\"s1\">“We look forward to working with and continuing a profitable and long-lasting relationship with Sinopacific.” </span>The vessels will be built at Sinopacific’s Zhejiang Shipyard and the first vessel is due for delivery in 2017.</p>','Rolls-Royce wins contract for power, propulsion and deck machinery equipment','','publish','open','open','','rolls-royce-wins-contract-for-power-propulsion-and-deck-machinery-equipment','','','2015-12-09 06:52:47','2015-12-09 06:52:47','',0,'http://myseatime.com/blogadm/?p=1233',0,'post','',0,30),(1234,1,'2015-12-09 06:50:40','2015-12-09 06:50:40','','Rolls Royce','','inherit','open','open','','rolls-royce','','','2015-12-09 06:50:40','2015-12-09 06:50:40','',1233,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Rolls-Royce.jpg',0,'attachment','image/jpeg',0,0),(1235,1,'2015-12-09 06:50:58','2015-12-09 06:50:58','<p class=\"p1\"><span class=\"s1\">Rolls-Royce today signed a contract with Sinopacific Shipbuilding Group (Sinopacific) in Shanghai for a package of power and propulsion equipment and deck machinery. </span>The contract is to equip nine SPA80A Anchor Handling Tug Supply vessels to be designed and built by Sinopacific Shipbuilding Group and owned and operated by the Abu Dhabi National Oil Company (ADNOC) and its wholly-owned subsidiary, ESNAAD.</p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Rolls-Royce.jpg\"><img class=\"aligncenter size-full wp-image-1234\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Rolls-Royce.jpg\" alt=\"Rolls Royce\" width=\"630\" height=\"380\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">Each ship will have a bollard pull of 80 metric tonnes, and be equipped with highly efficient Bergen diesel engines, main and tunnel thrusters, electrical power system and a deck machinery package from Rolls-Royce. This represents a suite of reliable and robust technology developed for the most demanding conditions.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">JIANG Qiang, Chief Executive Officer of Sinopacific said: </span></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">The visit of Rolls-Royce senior executives to Sinopacific in 2013 reinforced the relationship between our two companies as did the provision of  Rolls-Royce integrated equipment packages for Sinopacific’s in-house designed SPA150 AHTS series. This was a first for Rolls-Royce in the Chinese market.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The Rolls-Royce Chinese team has provided us with great support by staying close, enhancing communications and giving us confidence for future cooperation. Sinopacific aims to work closely with our strategic partners, such as Rolls-Royce, presenting the best products and services for our ship owners while strengthening our leadership in the most demanding markets.</span></p>\r\n</blockquote>\r\n<p class=\"p1\"><span class=\"s1\">Richard Wang, Rolls-Royce, Senior Vice President Commercial – Marine said: </span></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">This is a significant contract. It demonstrates our market leading capabilities in a wide range of offshore marine products, and our ability to combine them in a way that creates real value for our customers.</span></p>\r\n</blockquote>\r\n<p class=\"p1\"><span class=\"s1\">“We look forward to working with and continuing a profitable and long-lasting relationship with Sinopacific.”</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The vessels will be built at Sinopacific’s Zhejiang Shipyard and the first vessel is due for delivery in 2017.</span></p>','Rolls-Royce wins contract for power, propulsion and deck machinery equipment','','inherit','open','open','','1233-revision-v1','','','2015-12-09 06:50:58','2015-12-09 06:50:58','',1233,'http://myseatime.com/blogadm/1233-revision-v1/',0,'revision','',0,0),(1236,1,'2015-12-09 06:52:44','2015-12-09 06:52:44','<p class=\"p1\"><span class=\"s1\">Rolls-Royce today signed a contract with Sinopacific Shipbuilding Group (Sinopacific) in Shanghai for a package of power and propulsion equipment and deck machinery. </span>The contract is to equip nine SPA80A Anchor Handling Tug Supply vessels to be designed and built by Sinopacific Shipbuilding Group and owned and operated by the Abu Dhabi National Oil Company (ADNOC) and its wholly-owned subsidiary, ESNAAD.</p>\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Rolls-Royce.jpg\"><img class=\"aligncenter size-full wp-image-1234\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Rolls-Royce.jpg\" alt=\"Rolls Royce\" width=\"630\" height=\"380\" /></a></p>\n<p class=\"p1\"><span class=\"s1\">Each ship will have a bollard pull of 80 metric tonnes, and be equipped with highly efficient Bergen diesel engines, main and tunnel thrusters, electrical power system and a deck machinery package from Rolls-Royce. This represents a suite of reliable and robust technology developed for the most demanding conditions.</span></p>\n<p class=\"p1\"><span class=\"s1\">JIANG Qiang, Chief Executive Officer of Sinopacific said: </span></p>\n\n<blockquote>\n<p class=\"p1\"><span class=\"s1\">The visit of Rolls-Royce senior executives to Sinopacific in 2013 reinforced the relationship between our two companies as did the provision of  Rolls-Royce integrated equipment packages for Sinopacific’s in-house designed SPA150 AHTS series. This was a first for Rolls-Royce in the Chinese market.</span></p>\n</blockquote>\n<p class=\"p1\"><span class=\"s1\">The Rolls-Royce Chinese team has provided us with great support by staying close, enhancing communications and giving us confidence for future cooperation. Sinopacific aims to work closely with our strategic partners, such as Rolls-Royce, presenting the best products and services for our ship owners while strengthening our leadership in the most demanding markets.</span></p>\n<p class=\"p1\"><span class=\"s1\">Richard Wang, Rolls-Royce, Senior Vice President Commercial – Marine said: </span></p>\n\n<blockquote>\n<p class=\"p1\"><span class=\"s1\">This is a significant contract. It demonstrates our market leading capabilities in a wide range of offshore marine products, and our ability to combine them in a way that creates real value for our customers.</span></p>\n</blockquote>\n<p class=\"p1\"><span class=\"s1\">“We look forward to working with and continuing a profitable and long-lasting relationship with Sinopacific.” </span>The vessels will be built at Sinopacific’s Zhejiang Shipyard and the first vessel is due for delivery in 2017.</p>','Rolls-Royce wins contract for power, propulsion and deck machinery equipment','','inherit','open','open','','1233-autosave-v1','','','2015-12-09 06:52:44','2015-12-09 06:52:44','',1233,'http://myseatime.com/blogadm/1233-autosave-v1/',0,'revision','',0,0),(1237,1,'2015-12-09 06:52:47','2015-12-09 06:52:47','<p class=\"p1\"><span class=\"s1\">Rolls-Royce today signed a contract with Sinopacific Shipbuilding Group (Sinopacific) in Shanghai for a package of power and propulsion equipment and deck machinery. </span>The contract is to equip nine SPA80A Anchor Handling Tug Supply vessels to be designed and built by Sinopacific Shipbuilding Group and owned and operated by the Abu Dhabi National Oil Company (ADNOC) and its wholly-owned subsidiary, ESNAAD.</p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Rolls-Royce.jpg\"><img class=\"aligncenter size-full wp-image-1234\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Rolls-Royce.jpg\" alt=\"Rolls Royce\" width=\"630\" height=\"380\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">Each ship will have a bollard pull of 80 metric tonnes, and be equipped with highly efficient Bergen diesel engines, main and tunnel thrusters, electrical power system and a deck machinery package from Rolls-Royce. This represents a suite of reliable and robust technology developed for the most demanding conditions.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">JIANG Qiang, Chief Executive Officer of Sinopacific said: </span></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">The visit of Rolls-Royce senior executives to Sinopacific in 2013 reinforced the relationship between our two companies as did the provision of  Rolls-Royce integrated equipment packages for Sinopacific’s in-house designed SPA150 AHTS series. This was a first for Rolls-Royce in the Chinese market.</span></p>\r\n</blockquote>\r\n<p class=\"p1\"><span class=\"s1\">The Rolls-Royce Chinese team has provided us with great support by staying close, enhancing communications and giving us confidence for future cooperation. Sinopacific aims to work closely with our strategic partners, such as Rolls-Royce, presenting the best products and services for our ship owners while strengthening our leadership in the most demanding markets.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">Richard Wang, Rolls-Royce, Senior Vice President Commercial – Marine said: </span></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">This is a significant contract. It demonstrates our market leading capabilities in a wide range of offshore marine products, and our ability to combine them in a way that creates real value for our customers.</span></p>\r\n</blockquote>\r\n<p class=\"p1\"><span class=\"s1\">“We look forward to working with and continuing a profitable and long-lasting relationship with Sinopacific.” </span>The vessels will be built at Sinopacific’s Zhejiang Shipyard and the first vessel is due for delivery in 2017.</p>','Rolls-Royce wins contract for power, propulsion and deck machinery equipment','','inherit','open','open','','1233-revision-v1','','','2015-12-09 06:52:47','2015-12-09 06:52:47','',1233,'http://myseatime.com/blogadm/1233-revision-v1/',0,'revision','',0,0),(1238,1,'2015-12-09 07:10:01','2015-12-09 07:10:01','Ulsan, South Korea – December 9 – Hyundai Heavy Industries (HHI), the world’s biggest shipbuilder, announced today it signed a “Memorandum of Understanding (MOU) for the Establishment of Industrial Cluster for Localizing Marine Equipment Between Marine Equipment Manufacturing and Supply Companies” at Hotel Hyundai Ulsan.\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Hyundai_Heavy_Industries_ship_yard_South_Korea.jpg\"><img class=\"aligncenter size-full wp-image-1239\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Hyundai_Heavy_Industries_ship_yard_South_Korea.jpg\" alt=\"Hyundai_Heavy_Industries_ship_yard,_South_Korea\" width=\"800\" height=\"500\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">Under the MOU, HHI will join forces with KOMERI, a domestic marine equipment research institute and 25 local marine equipment manufacturers to cooperate in the field of research and planning, product development, verification test, certification, and engineer exchanges. </span></p>\r\nStarting with the goal of localizing 18 marine equipment including pressure sensors for marine engines and gas injection valves, the three parties plan to increase production of the equipment that they can produce independently.\r\n\r\nThe cluster will provide alternatives for Korean small and medium-sized maritime equipment companies that have been struggling to enter into the competitive global market and thus in turn, will lead to enhanced competitiveness of Korean shipbuilding and marine industry as a whole.\r\n\r\nMr. Kim Ju-tae, COO of HHI’s Engine &amp; Machinery Division said, “We see the cluster will play a key role for the involved parties to tide over challenging conditions in the market. Moreover, HHI will continue to make efforts to develop sustainable business models that are mutually beneficial for conglomerates and SMEs.”','Hyundai Heavy Industries Signs MOU for Localizing Marine Equipment','','publish','open','open','','hyundai-heavy-industries-signs-mou-for-localizing-marine-equipment','','','2015-12-09 07:10:01','2015-12-09 07:10:01','',0,'http://myseatime.com/blogadm/?p=1238',0,'post','',0,44),(1239,1,'2015-12-09 07:08:47','2015-12-09 07:08:47','','Hyundai_Heavy_Industries_ship_yard,_South_Korea','','inherit','open','open','','hyundai_heavy_industries_ship_yard_south_korea','','','2015-12-09 07:08:47','2015-12-09 07:08:47','',1238,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Hyundai_Heavy_Industries_ship_yard_South_Korea.jpg',0,'attachment','image/jpeg',0,0),(1240,1,'2015-12-09 07:10:01','2015-12-09 07:10:01','Ulsan, South Korea – December 9 – Hyundai Heavy Industries (HHI), the world’s biggest shipbuilder, announced today it signed a “Memorandum of Understanding (MOU) for the Establishment of Industrial Cluster for Localizing Marine Equipment Between Marine Equipment Manufacturing and Supply Companies” at Hotel Hyundai Ulsan.\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Hyundai_Heavy_Industries_ship_yard_South_Korea.jpg\"><img class=\"aligncenter size-full wp-image-1239\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Hyundai_Heavy_Industries_ship_yard_South_Korea.jpg\" alt=\"Hyundai_Heavy_Industries_ship_yard,_South_Korea\" width=\"800\" height=\"500\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">Under the MOU, HHI will join forces with KOMERI, a domestic marine equipment research institute and 25 local marine equipment manufacturers to cooperate in the field of research and planning, product development, verification test, certification, and engineer exchanges. </span></p>\r\nStarting with the goal of localizing 18 marine equipment including pressure sensors for marine engines and gas injection valves, the three parties plan to increase production of the equipment that they can produce independently.\r\n\r\nThe cluster will provide alternatives for Korean small and medium-sized maritime equipment companies that have been struggling to enter into the competitive global market and thus in turn, will lead to enhanced competitiveness of Korean shipbuilding and marine industry as a whole.\r\n\r\nMr. Kim Ju-tae, COO of HHI’s Engine &amp; Machinery Division said, “We see the cluster will play a key role for the involved parties to tide over challenging conditions in the market. Moreover, HHI will continue to make efforts to develop sustainable business models that are mutually beneficial for conglomerates and SMEs.”','Hyundai Heavy Industries Signs MOU for Localizing Marine Equipment','','inherit','open','open','','1238-revision-v1','','','2015-12-09 07:10:01','2015-12-09 07:10:01','',1238,'http://myseatime.com/blogadm/1238-revision-v1/',0,'revision','',0,0),(1241,3,'2015-12-09 07:23:59','2015-12-09 07:23:59','<p class=\"p1\"><span class=\"s1\">BIMCO, the world’s largest international shipping organisation, has now launched an anti-corruption clause for charter parties.  </span>The new clause will give owners and charterers a contractual platform for cooperative action to resist demands for illegal payments from port officials and others.</p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/BIMCO-corruption.jpg\"><img class=\"aligncenter size-full wp-image-1242\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/BIMCO-corruption.jpg\" alt=\"BIMCO corruption\" width=\"800\" height=\"494\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">BIMCO Secretary General, Angus Frew, said:</span></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">BIMCO recognises the importance of a united approach by the shipping industry towards stamping out corruption in the ports and places where the world’s merchant fleet trades.  </span>Use of the clause is entirely voluntary – it has been developed for owners and charterers who want to combat corrupt practices in ports by using a clearly worded framework in their charter parties.</p>\r\n</blockquote>\r\n<p class=\"p1\"><span class=\"s1\">The clause can be used in any jurisdiction because it applies the anti-corruption laws applicable to each of the parties and the local law of the place where the ship is located.  </span>A key provision of BIMCO’s Anti-Corruption Clause is a mechanism for owners to issue a note of protest if an illegal demand is made and the demand is not withdrawn.  This triggers a co-operative response by charterers and owners to the demand. A safeguard for the owners if they issue a protest to resist a demand and the ship is delayed is that charterers cannot place the ship off-hire.</p>\r\n<p class=\"p1\"><span class=\"s1\">Inga Froysa of Klaveness, Norway, is part of BIMCO’s Documentary Committee and headed the drafting team for the new clause. Mrs Froysa commented:</span></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">Our objective is to provide the industry with a fair and balanced clause. </span>The clause addresses owners’ and charterers’ responsibility to comply with anti-corruption legislation and helps them to work together to resist demands for illegal payments. BIMCO’s Anti-Corruption Clause is the result of a concerted effort by a team of international lawyers and practitioners to provide an acceptable and workable alternative to the clauses currently in circulation.</p>\r\n</blockquote>\r\n<p class=\"p1\"><b>Photo credit: <a href=\"https://www.flickr.com/photos/evertwh/3348440435/\">Evert Haasdijk</a> / <a href=\"http://foter.com/\">Foter.com</a> / <a href=\"http://creativecommons.org/licenses/by-nc-sa/2.0/\">CC BY-NC-SA</a></b></p>','BIMCO launches anti-corruption clause for shipping contracts worldwide','','publish','open','open','','bimco-launches-anti-corruption-clause-for-shipping-contracts-worldwide','','','2015-12-09 07:28:47','2015-12-09 07:28:47','',0,'http://myseatime.com/blogadm/?p=1241',0,'post','',0,77),(1242,1,'2015-12-09 07:22:53','2015-12-09 07:22:53','Photo credit: Evert Haasdijk / Foter.com / CC BY-NC-SA','BIMCO corruption','','inherit','open','open','','bimco-corruption','','','2015-12-09 07:23:09','2015-12-09 07:23:09','',1241,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/BIMCO-corruption.jpg',0,'attachment','image/jpeg',0,0),(1243,1,'2015-12-09 07:23:59','2015-12-09 07:23:59','<p class=\"p1\"><span class=\"s1\">BIMCO, the world’s largest international shipping organisation, has now launched an anti-corruption clause for charter parties.  </span>The new clause will give owners and charterers a contractual platform for cooperative action to resist demands for illegal payments from port officials and others.</p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/BIMCO-corruption.jpg\"><img class=\"aligncenter size-full wp-image-1242\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/BIMCO-corruption.jpg\" alt=\"BIMCO corruption\" width=\"800\" height=\"494\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">BIMCO Secretary General, Angus Frew, said:</span></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">BIMCO recognises the importance of a united approach by the shipping industry towards stamping out corruption in the ports and places where the world’s merchant fleet trades.  </span>Use of the clause is entirely voluntary – it has been developed for owners and charterers who want to combat corrupt practices in ports by using a clearly worded framework in their charter parties.</p>\r\n</blockquote>\r\n<p class=\"p1\"><span class=\"s1\">The clause can be used in any jurisdiction because it applies the anti-corruption laws applicable to each of the parties and the local law of the place where the ship is located.  </span>A key provision of BIMCO’s Anti-Corruption Clause is a mechanism for owners to issue a note of protest if an illegal demand is made and the demand is not withdrawn.  This triggers a co-operative response by charterers and owners to the demand. A safeguard for the owners if they issue a protest to resist a demand and the ship is delayed is that charterers cannot place the ship off-hire.</p>\r\n<p class=\"p1\"><span class=\"s1\">Inga Froysa of Klaveness, Norway, is part of BIMCO’s Documentary Committee and headed the drafting team for the new clause. Mrs Froysa commented:</span></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">Our objective is to provide the industry with a fair and balanced clause. </span>The clause addresses owners’ and charterers’ responsibility to comply with anti-corruption legislation and helps them to work together to resist demands for illegal payments. BIMCO’s Anti-Corruption Clause is the result of a concerted effort by a team of international lawyers and practitioners to provide an acceptable and workable alternative to the clauses currently in circulation.</p>\r\n</blockquote>','BIMCO launches anti-corruption clause for shipping contracts worldwide','','inherit','open','open','','1241-revision-v1','','','2015-12-09 07:23:59','2015-12-09 07:23:59','',1241,'http://myseatime.com/blogadm/1241-revision-v1/',0,'revision','',0,0),(1244,1,'2015-12-09 07:28:14','2015-12-09 07:28:14','<p class=\"p1\"><span class=\"s1\">BIMCO, the world’s largest international shipping organisation, has now launched an anti-corruption clause for charter parties.  </span>The new clause will give owners and charterers a contractual platform for cooperative action to resist demands for illegal payments from port officials and others.</p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/BIMCO-corruption.jpg\"><img class=\"aligncenter size-full wp-image-1242\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/BIMCO-corruption.jpg\" alt=\"BIMCO corruption\" width=\"800\" height=\"494\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">BIMCO Secretary General, Angus Frew, said:</span></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">BIMCO recognises the importance of a united approach by the shipping industry towards stamping out corruption in the ports and places where the world’s merchant fleet trades.  </span>Use of the clause is entirely voluntary – it has been developed for owners and charterers who want to combat corrupt practices in ports by using a clearly worded framework in their charter parties.</p>\r\n</blockquote>\r\n<p class=\"p1\"><span class=\"s1\">The clause can be used in any jurisdiction because it applies the anti-corruption laws applicable to each of the parties and the local law of the place where the ship is located.  </span>A key provision of BIMCO’s Anti-Corruption Clause is a mechanism for owners to issue a note of protest if an illegal demand is made and the demand is not withdrawn.  This triggers a co-operative response by charterers and owners to the demand. A safeguard for the owners if they issue a protest to resist a demand and the ship is delayed is that charterers cannot place the ship off-hire.</p>\r\n<p class=\"p1\"><span class=\"s1\">Inga Froysa of Klaveness, Norway, is part of BIMCO’s Documentary Committee and headed the drafting team for the new clause. Mrs Froysa commented:</span></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">Our objective is to provide the industry with a fair and balanced clause. </span>The clause addresses owners’ and charterers’ responsibility to comply with anti-corruption legislation and helps them to work together to resist demands for illegal payments. BIMCO’s Anti-Corruption Clause is the result of a concerted effort by a team of international lawyers and practitioners to provide an acceptable and workable alternative to the clauses currently in circulation.</p>\r\n<p class=\"p1\"><b>Photo credit: <a href=\"https://www.flickr.com/photos/evertwh/3348440435/\">Evert Haasdijk</a> / <a href=\"http://foter.com/\">Foter.com</a> / <a href=\"http://creativecommons.org/licenses/by-nc-sa/2.0/\">CC BY-NC-SA</a></b></p>\r\n</blockquote>','BIMCO launches anti-corruption clause for shipping contracts worldwide','','inherit','open','open','','1241-revision-v1','','','2015-12-09 07:28:14','2015-12-09 07:28:14','',1241,'http://myseatime.com/blogadm/1241-revision-v1/',0,'revision','',0,0),(1245,1,'2015-12-09 07:28:47','2015-12-09 07:28:47','<p class=\"p1\"><span class=\"s1\">BIMCO, the world’s largest international shipping organisation, has now launched an anti-corruption clause for charter parties.  </span>The new clause will give owners and charterers a contractual platform for cooperative action to resist demands for illegal payments from port officials and others.</p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/BIMCO-corruption.jpg\"><img class=\"aligncenter size-full wp-image-1242\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/BIMCO-corruption.jpg\" alt=\"BIMCO corruption\" width=\"800\" height=\"494\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">BIMCO Secretary General, Angus Frew, said:</span></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">BIMCO recognises the importance of a united approach by the shipping industry towards stamping out corruption in the ports and places where the world’s merchant fleet trades.  </span>Use of the clause is entirely voluntary – it has been developed for owners and charterers who want to combat corrupt practices in ports by using a clearly worded framework in their charter parties.</p>\r\n</blockquote>\r\n<p class=\"p1\"><span class=\"s1\">The clause can be used in any jurisdiction because it applies the anti-corruption laws applicable to each of the parties and the local law of the place where the ship is located.  </span>A key provision of BIMCO’s Anti-Corruption Clause is a mechanism for owners to issue a note of protest if an illegal demand is made and the demand is not withdrawn.  This triggers a co-operative response by charterers and owners to the demand. A safeguard for the owners if they issue a protest to resist a demand and the ship is delayed is that charterers cannot place the ship off-hire.</p>\r\n<p class=\"p1\"><span class=\"s1\">Inga Froysa of Klaveness, Norway, is part of BIMCO’s Documentary Committee and headed the drafting team for the new clause. Mrs Froysa commented:</span></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">Our objective is to provide the industry with a fair and balanced clause. </span>The clause addresses owners’ and charterers’ responsibility to comply with anti-corruption legislation and helps them to work together to resist demands for illegal payments. BIMCO’s Anti-Corruption Clause is the result of a concerted effort by a team of international lawyers and practitioners to provide an acceptable and workable alternative to the clauses currently in circulation.</p>\r\n</blockquote>\r\n<p class=\"p1\"><b>Photo credit: <a href=\"https://www.flickr.com/photos/evertwh/3348440435/\">Evert Haasdijk</a> / <a href=\"http://foter.com/\">Foter.com</a> / <a href=\"http://creativecommons.org/licenses/by-nc-sa/2.0/\">CC BY-NC-SA</a></b></p>','BIMCO launches anti-corruption clause for shipping contracts worldwide','','inherit','open','open','','1241-revision-v1','','','2015-12-09 07:28:47','2015-12-09 07:28:47','',1241,'http://myseatime.com/blogadm/1241-revision-v1/',0,'revision','',0,0),(1246,3,'2015-12-09 07:46:42','2015-12-09 07:46:42','<p class=\"p1\"><span class=\"s1\">On November 30, NYK welcomed about 60 environmental supervisors from 46 NYK Group companies to the group’s annual Environmental Management Conference in Tokyo. NYK holds this conference once a year with NYK Group companies to share information on environmental practices and strengthen environmental management within the group.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/NYK-.jpg\"><img class=\"aligncenter size-full wp-image-1247\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/NYK-.jpg\" alt=\"NYK\" width=\"800\" height=\"450\" /></a> </span></p>\r\n<p class=\"p1\">At this ninth conference, the two group companies below were commended for their original and creative efforts to improve the value of the NYK Group, and each of the companies gave a presentation on its environmental activities.</p>\r\n\r\n<ol>\r\n	<li class=\"p1\"><span class=\"s1\">NYK Container Line Co. Ltd.  (</span>Reduction of environmental burden by cooperating with customers for the round use of containers).</li>\r\n	<li class=\"p1\"><span class=\"s1\"> </span><span class=\"s1\">Yokohama Building Co. Ltd. (</span>Improvement of recycling rate by closely cooperating with tenants to thoroughly separate and sort waste).</li>\r\n</ol>','NYK Holds Ninth Environmental Management Conference','','publish','open','open','','nyk-holds-ninth-environmental-management-conference','','','2015-12-09 07:46:42','2015-12-09 07:46:42','',0,'http://myseatime.com/blogadm/?p=1246',0,'post','',0,41),(1247,1,'2015-12-09 07:45:44','2015-12-09 07:45:44','Hummelhummel [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons','NYK','','inherit','open','open','','nyk-2','','','2015-12-09 07:45:54','2015-12-09 07:45:54','',1246,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/NYK-.jpg',0,'attachment','image/jpeg',0,0),(1248,1,'2015-12-09 07:46:42','2015-12-09 07:46:42','<p class=\"p1\"><span class=\"s1\">On November 30, NYK welcomed about 60 environmental supervisors from 46 NYK Group companies to the group’s annual Environmental Management Conference in Tokyo. NYK holds this conference once a year with NYK Group companies to share information on environmental practices and strengthen environmental management within the group.</span></p>\r\n<p class=\"p1\"><span class=\"s1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/NYK-.jpg\"><img class=\"aligncenter size-full wp-image-1247\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/NYK-.jpg\" alt=\"NYK\" width=\"800\" height=\"450\" /></a> </span></p>\r\n<p class=\"p1\">At this ninth conference, the two group companies below were commended for their original and creative efforts to improve the value of the NYK Group, and each of the companies gave a presentation on its environmental activities.</p>\r\n\r\n<ol>\r\n	<li class=\"p1\"><span class=\"s1\">NYK Container Line Co. Ltd.  (</span>Reduction of environmental burden by cooperating with customers for the round use of containers).</li>\r\n	<li class=\"p1\"><span class=\"s1\"> </span><span class=\"s1\">Yokohama Building Co. Ltd. (</span>Improvement of recycling rate by closely cooperating with tenants to thoroughly separate and sort waste).</li>\r\n</ol>','NYK Holds Ninth Environmental Management Conference','','inherit','open','open','','1246-revision-v1','','','2015-12-09 07:46:42','2015-12-09 07:46:42','',1246,'http://myseatime.com/blogadm/1246-revision-v1/',0,'revision','',0,0),(1249,3,'2015-12-09 08:40:21','2015-12-09 08:40:21','With the development of gas as a marine fuel going beyond LNG – LR has developed a notation, coming into effect on 1 January 2016, that provides clarity and helps to ensure technology can be adopted effectively. Lloyd’s Register (LR) has developed a new notation for low-flashpoint fuels (LFPF), allowing owners and shipyards to demonstrate that their design and construction meet requirements. The notation will come into effect as of 1 January, 2016, as part of LR’s and Regulations.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/LR.jpg\"><img class=\"aligncenter size-full wp-image-1250\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/LR.jpg\" alt=\"LR\" width=\"634\" height=\"356\" /></a>\r\n\r\nIn the last 12 months, the industry experienced two major changes in legislation with the revised International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code) and the adoption of the International Code of Safety for Ships using Gases or other Low-flashpoint Fuels (IGF Code). The codes have broadened the horizons for gas applications, encompassing the use of low-flashpoint fuels for gas carriers and non-gas carriers, but it is the classification society’s role to ensure clear standards, requirements and methodology are put in place, to help ensure the required levels of safety and reliability are achieved.\r\n\r\nLFPF is assigned where the main propelling and/or auxiliary machinery is designed to operate using a low-flashpoint fuel in accordance with the applicable LR Rules and Regulations. LR’s approach to this developing market is through Rules and Regulations applicable to all ships using low-flashpoint fuels under an overarching notation that is clearly structured, scalable and can evolve as the industry’s knowledge matures.\r\n\r\nLeo Karistios, LR’s Global Gas Technology Market Manager, commented:\r\n<blockquote>\"The innovation in gas carriers and non-gas carriers using gas as a marine fuel has been tremendous over the last two years. Our new class notation LFPF is Lloyd’s Register’s response to the market’s evolution. Our rules and regulations are evolving at the same pace so that classification’s role maintains its significance in the marine and gas market sectors.\"</blockquote>\r\nThe LFPF notation is to be appended by the associated characters GC or GF:\r\n<ul>\r\n	<li><strong>GC</strong>: Assigned to gas carriers indicating that the gas-fuelled machinery has been constructed, arranged, installed and tested in accordance with the relevant requirements of Chapter 16 of LR’s Rules for Ships for liquefied gases, or is equivalent there to.</li>\r\n	<li><strong>GF</strong>: Assigned to ships other than gas carriers indicating that the low-flashpoint-fuelled machinery has been constructed, arranged, installed and tested in accordance with the LR Rules and Regulations applicable to the fuel(s) used.</li>\r\n</ul>\r\nThe low-flashpoint fuel (or fuels) that the ship is designed to use is indicated in the notation using a two letter identifier:\r\n<ul>\r\n	<li><strong>NG</strong>: Natural Gas</li>\r\n	<li><strong>EG</strong>: Ethane Gas</li>\r\n	<li><strong>PG</strong>: Liquid Petroleum Gas</li>\r\n	<li><strong>ML</strong>: Methanol</li>\r\n</ul>','LR establishes design and construction standards for the use of low-flashpoint fuels','','publish','open','open','','lr-establishes-design-and-construction-standards-for-the-use-of-low-flashpoint-fuels','','','2015-12-09 08:40:21','2015-12-09 08:40:21','',0,'http://myseatime.com/blogadm/?p=1249',0,'post','',0,56),(1250,1,'2015-12-09 08:39:14','2015-12-09 08:39:14','lr.org','LR','','inherit','open','open','','lr','','','2015-12-09 08:39:28','2015-12-09 08:39:28','',1249,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/LR.jpg',0,'attachment','image/jpeg',0,0),(1251,1,'2015-12-09 08:40:21','2015-12-09 08:40:21','With the development of gas as a marine fuel going beyond LNG – LR has developed a notation, coming into effect on 1 January 2016, that provides clarity and helps to ensure technology can be adopted effectively. Lloyd’s Register (LR) has developed a new notation for low-flashpoint fuels (LFPF), allowing owners and shipyards to demonstrate that their design and construction meet requirements. The notation will come into effect as of 1 January, 2016, as part of LR’s and Regulations.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/LR.jpg\"><img class=\"aligncenter size-full wp-image-1250\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/LR.jpg\" alt=\"LR\" width=\"634\" height=\"356\" /></a>\r\n\r\nIn the last 12 months, the industry experienced two major changes in legislation with the revised International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code) and the adoption of the International Code of Safety for Ships using Gases or other Low-flashpoint Fuels (IGF Code). The codes have broadened the horizons for gas applications, encompassing the use of low-flashpoint fuels for gas carriers and non-gas carriers, but it is the classification society’s role to ensure clear standards, requirements and methodology are put in place, to help ensure the required levels of safety and reliability are achieved.\r\n\r\nLFPF is assigned where the main propelling and/or auxiliary machinery is designed to operate using a low-flashpoint fuel in accordance with the applicable LR Rules and Regulations. LR’s approach to this developing market is through Rules and Regulations applicable to all ships using low-flashpoint fuels under an overarching notation that is clearly structured, scalable and can evolve as the industry’s knowledge matures.\r\n\r\nLeo Karistios, LR’s Global Gas Technology Market Manager, commented:\r\n<blockquote>\"The innovation in gas carriers and non-gas carriers using gas as a marine fuel has been tremendous over the last two years. Our new class notation LFPF is Lloyd’s Register’s response to the market’s evolution. Our rules and regulations are evolving at the same pace so that classification’s role maintains its significance in the marine and gas market sectors.\"</blockquote>\r\nThe LFPF notation is to be appended by the associated characters GC or GF:\r\n<ul>\r\n	<li><strong>GC</strong>: Assigned to gas carriers indicating that the gas-fuelled machinery has been constructed, arranged, installed and tested in accordance with the relevant requirements of Chapter 16 of LR’s Rules for Ships for liquefied gases, or is equivalent there to.</li>\r\n	<li><strong>GF</strong>: Assigned to ships other than gas carriers indicating that the low-flashpoint-fuelled machinery has been constructed, arranged, installed and tested in accordance with the LR Rules and Regulations applicable to the fuel(s) used.</li>\r\n</ul>\r\nThe low-flashpoint fuel (or fuels) that the ship is designed to use is indicated in the notation using a two letter identifier:\r\n<ul>\r\n	<li><strong>NG</strong>: Natural Gas</li>\r\n	<li><strong>EG</strong>: Ethane Gas</li>\r\n	<li><strong>PG</strong>: Liquid Petroleum Gas</li>\r\n	<li><strong>ML</strong>: Methanol</li>\r\n</ul>','LR establishes design and construction standards for the use of low-flashpoint fuels','','inherit','open','open','','1249-revision-v1','','','2015-12-09 08:40:21','2015-12-09 08:40:21','',1249,'http://myseatime.com/blogadm/1249-revision-v1/',0,'revision','',0,0),(1252,3,'2015-12-09 15:49:52','2015-12-09 15:49:52','<p class=\"p1\"><span class=\"s1\">DNV GL has developed a new industry standard for the type approval of Portable Pilot Units (PPUs). The ORCA Pilot G2 unit, created by SevenCs, a navigation equipment and software expert from Hamburg, is the first product worldwide to achieve compliance with the new standard.</span></p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/DNV-SevenCs.jpg\"><img class=\"aligncenter size-full wp-image-1253\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/DNV-SevenCs.jpg\" alt=\"DNV SevenCs\" width=\"750\" height=\"500\" /></a></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">In summer 2015, we developed the Type Approval for PPUs, in order to allow ports, terminal operators and pilot organisations to assure a minimum standard in the selection process of their equipment, against which manufacturers of navigation equipment can test their products. Our dedicated testing programme is based on the Electronic Chart Display and Information System (ECDIS), explains Sven Dudszus, Head of Business ＆ Production Management at DNV GL. </span></p>\r\n</blockquote>\r\n<p class=\"p1\"><span class=\"s1\">A PPU is a mobile computer-based system that a pilot can use as a decision-support tool for navigating in confined waters. It displays a vessel’s position and movement in real-time and provides more information about the location and movement of other vessels using data from AIS (Automatic Identification System). The latest PPUs can also be utilized to access more information about ice coverage, soundings/depth contours from recent hydro surveys, dynamic water levels and security zones. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">SevenCs decided to apply for this challenging certificate because of its long-term experience in developing type approved navigation software. It also helps customers to guarantee quality and safety towards their regulating authorities. But moreover, the uniformity of PPU and on-board navigation equipment can be fostered to avoid misunderstandings between masters and pilots. “So far, pilot software was not meant to be compliant with any criteria. But what is good for ships in preventing groundings cannot be bad for pilots navigating in the most challenging environments. Following this strategy for years made the approval much easier for us,” states Marius Herzig from SevenCs. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">As a result, the new ORCA Pilot G2 passed the test procedures for software and overall PPU. “SevenCs has taken a proactive approach to ensuring their products fulfil the latest standards and requirements. The approval process went very smoothly,” says Falk Bethke, Approval Engineer Electrical Systems &amp; Automation at DNV GL. The new industry standard establishes a set of minimum requirements for PPU quality but allows manufacturers to adjust their PPUs to pilots’ needs.  </span></p>','DNV GL awards SevenCs the first type approval for Portable Pilot Units','','publish','open','open','','dnv-gl-awards-sevencs-the-first-type-approval-for-portable-pilot-units','','','2015-12-09 15:50:04','2015-12-09 15:50:04','',0,'http://myseatime.com/blogadm/?p=1252',0,'post','',0,58),(1253,1,'2015-12-09 15:49:43','2015-12-09 15:49:43','','DNV SevenCs','','inherit','open','open','','dnv-sevencs','','','2015-12-09 15:49:43','2015-12-09 15:49:43','',1252,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/DNV-SevenCs.jpg',0,'attachment','image/jpeg',0,0),(1254,1,'2015-12-09 15:49:52','2015-12-09 15:49:52','<p class=\"p1\"><span class=\"s1\">DNV GL has developed a new industry standard for the type approval of Portable Pilot Units (PPUs). The ORCA Pilot G2 unit, created by SevenCs, a navigation equipment and software expert from Hamburg, is the first product worldwide to achieve compliance with the new standard.</span></p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/DNV-SevenCs.jpg\"><img class=\"aligncenter size-full wp-image-1253\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/DNV-SevenCs.jpg\" alt=\"DNV SevenCs\" width=\"750\" height=\"500\" /></a></p>\r\n\r\n<blockquote>\r\n<p class=\"p1\"><span class=\"s1\">In summer 2015, we developed the Type Approval for PPUs, in order to allow ports, terminal operators and pilot organisations to assure a minimum standard in the selection process of their equipment, against which manufacturers of navigation equipment can test their products. Our dedicated testing programme is based on the Electronic Chart Display and Information System (ECDIS), explains Sven Dudszus, Head of Business ＆ Production Management at DNV GL. </span></p>\r\n</blockquote>\r\n<p class=\"p1\"><span class=\"s1\">A PPU is a mobile computer-based system that a pilot can use as a decision-support tool for navigating in confined waters. It displays a vessel’s position and movement in real-time and provides more information about the location and movement of other vessels using data from AIS (Automatic Identification System). The latest PPUs can also be utilized to access more information about ice coverage, soundings/depth contours from recent hydro surveys, dynamic water levels and security zones. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">SevenCs decided to apply for this challenging certificate because of its long-term experience in developing type approved navigation software. It also helps customers to guarantee quality and safety towards their regulating authorities. But moreover, the uniformity of PPU and on-board navigation equipment can be fostered to avoid misunderstandings between masters and pilots. “So far, pilot software was not meant to be compliant with any criteria. But what is good for ships in preventing groundings cannot be bad for pilots navigating in the most challenging environments. Following this strategy for years made the approval much easier for us,” states Marius Herzig from SevenCs. </span></p>\r\n<p class=\"p1\"><span class=\"s1\">As a result, the new ORCA Pilot G2 passed the test procedures for software and overall PPU. “SevenCs has taken a proactive approach to ensuring their products fulfil the latest standards and requirements. The approval process went very smoothly,” says Falk Bethke, Approval Engineer Electrical Systems &amp; Automation at DNV GL. The new industry standard establishes a set of minimum requirements for PPU quality but allows manufacturers to adjust their PPUs to pilots’ needs.  </span></p>','DNV GL awards SevenCs the first type approval for Portable Pilot Units','','inherit','open','open','','1252-revision-v1','','','2015-12-09 15:49:52','2015-12-09 15:49:52','',1252,'http://myseatime.com/blogadm/1252-revision-v1/',0,'revision','',0,0),(1255,3,'2015-12-11 12:04:52','2015-12-11 12:04:52','<p class=\"p1\"><span class=\"s1\">China has published new regulations designating three areas as sulphur control areas effective January 1st 2019. Eleven key ports are allowed to impose requirements for fuel burned at berth as early as January 1st 2016. Mandatory port requirements will go into force January 1st 2017 for all ports in designated areas.</span></p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ship-in-China.jpg\"><img class=\"aligncenter size-full wp-image-1256\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ship-in-China.jpg\" alt=\"Ship in China\" width=\"750\" height=\"479\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">On December 4th 2015, the Chinese Ministry of Transportation published new regulations designating parts of its coastal waters as emission control areas (ECA). Due to the growing recognition of how shipping contributes to air pollution along the coast, ships, including ocean-going vessels, which operate in areas near the Pearl River Delta, Yangtze River Delta and the Bohai Sea will be obliged to use fuel containing less than 0.5% sulphur from January 1st 2019.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">Eleven key ports within the designated areas are allowed to apply the same requirement to ships at berth as of January 1st 2016. These eleven harbours are Guangzhou, Shenzhen, Zhujiang, Shanghai, Ningbo-Zhoushan, Suzhou, Nantong, Tianjin, Qinhuangdao, Tangshan and Huanghua. None of them have yet announced the implementation of the requirements, but our information suggests that Shanghai may do so sometime in the first half of 2016.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">From January 1st 2017, the requirement will become mandatory for all ports within the designated areas, including the eleven mentioned above.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">At the end of 2019, the Chinese government will assess the situation and consider whether it is necessary to reduce the sulphur limit to 0.1%. It is our understanding that this decision will take into account the supply capabilities of the Chinese refinery industry and bunker providers.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">It should be noted that despite the use of “ECA” with regard to this regulation, it is not linked to MARPOL’s ECA requirements; it is strictly a Chinese regulation. The practical implication of this is that the International Maritime Organization’s ECA regulation provides no formal guidance as to how the Chinese authorities will implement and enforce their own requirements.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The information that we have received so far indicates that alternative abatement methods, such as exhaust gas cleaning systems and shore power, will be accepted as compliance methods.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The official publication of the regulation in English is expected shortly. The original Chinese version is available on <a href=\"http://www.moc.gov.cn/zfxxgk/bzsdw/bhsj/201512/t20151204_1942434.html\"><span class=\"s2\">www.moc.gov.cn</span></a></span></p>','China introduces sulphur requirements for marine fuels','','publish','open','open','','china-introduces-sulphur-requirements-for-marine-fuels','','','2015-12-11 12:07:11','2015-12-11 12:07:11','',0,'http://myseatime.com/blogadm/?p=1255',0,'post','',0,85),(1256,1,'2015-12-11 12:04:37','2015-12-11 12:04:37','','Ship in China','','inherit','open','open','','ship-in-china','','','2015-12-11 12:04:37','2015-12-11 12:04:37','',1255,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ship-in-China.jpg',0,'attachment','image/jpeg',0,0),(1257,1,'2015-12-11 12:04:52','2015-12-11 12:04:52','<p class=\"p1\"><span class=\"s1\">China has published new regulations designating three areas as sulphur control areas effective January 1st 2019. Eleven key ports are allowed to impose requirements for fuel burned at berth as early as January 1st 2016. Mandatory port requirements will go into force January 1st 2017 for all ports in designated areas.</span></p>\r\n<p class=\"p1\"><a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ship-in-China.jpg\"><img class=\"aligncenter size-full wp-image-1256\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ship-in-China.jpg\" alt=\"Ship in China\" width=\"750\" height=\"479\" /></a></p>\r\n<p class=\"p1\"><span class=\"s1\">On December 4th 2015, the Chinese Ministry of Transportation published new regulations designating parts of its coastal waters as emission control areas (ECA). Due to the growing recognition of how shipping contributes to air pollution along the coast, ships, including ocean-going vessels, which operate in areas near the Pearl River Delta, Yangtze River Delta and the Bohai Sea will be obliged to use fuel containing less than 0.5% sulphur from January 1st 2019.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">Eleven key ports within the designated areas are allowed to apply the same requirement to ships at berth as of January 1st 2016. These eleven harbours are Guangzhou, Shenzhen, Zhujiang, Shanghai, Ningbo-Zhoushan, Suzhou, Nantong, Tianjin, Qinhuangdao, Tangshan and Huanghua. None of them have yet announced the implementation of the requirements, but our information suggests that Shanghai may do so sometime in the first half of 2016.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">From January 1st 2017, the requirement will become mandatory for all ports within the designated areas, including the eleven mentioned above.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">At the end of 2019, the Chinese government will assess the situation and consider whether it is necessary to reduce the sulphur limit to 0.1%. It is our understanding that this decision will take into account the supply capabilities of the Chinese refinery industry and bunker providers.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">It should be noted that despite the use of “ECA” with regard to this regulation, it is not linked to MARPOL’s ECA requirements; it is strictly a Chinese regulation. The practical implication of this is that the International Maritime Organization’s ECA regulation provides no formal guidance as to how the Chinese authorities will implement and enforce their own requirements.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The information that we have received so far indicates that alternative abatement methods, such as exhaust gas cleaning systems and shore power, will be accepted as compliance methods.</span></p>\r\n<p class=\"p1\"><span class=\"s1\">The official publication of the regulation in English is expected shortly. The original Chinese version is available on <a href=\"http://www.moc.gov.cn/zfxxgk/bzsdw/bhsj/201512/t20151204_1942434.html\"><span class=\"s2\">www.moc.gov.cn</span></a></span></p>','China introduces sulphur requirements for marine fuels','','inherit','open','open','','1255-revision-v1','','','2015-12-11 12:04:52','2015-12-11 12:04:52','',1255,'http://myseatime.com/blogadm/1255-revision-v1/',0,'revision','',0,0),(1258,1,'2015-12-15 12:11:59','0000-00-00 00:00:00','','Auto Draft','','auto-draft','open','open','','','','','2015-12-15 12:11:59','0000-00-00 00:00:00','',0,'http://myseatime.com/blogadm/?p=1258',0,'post','',0,0),(1259,3,'2015-12-16 20:05:04','2015-12-16 20:05:04','<span lang=\"EN-GB\">Three new 21,800 dwt chemical tankers, under construction at two different shipyards in Vietnam owned by Triyards Holdings Limited, will feature integrated Wärtsilä propulsion and power generation systems. These ships are being built for Swiss-Canadian Maritime Ltd and will be managed by Switzerland based ABC Maritime A.G. The contract with Wärtsilä was signed in November, and there are options for three more vessels.</span>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Triyards.jpg\"><img class=\"aligncenter size-full wp-image-1260\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Triyards.jpg\" alt=\"Triyards\" width=\"750\" height=\"208\" /></a>\r\n\r\n<span lang=\"EN-GB\">This contract represents the largest ever scope of supply that Wärtsilä is to deliver to a shipyard in Vietnam. Wärtsilä\'s capability for providing a total solution package and to be responsible for the engineering and integration of the solutions provided, is cited as being a key factor in the award of this contract.</span>\r\n\r\n<span lang=\"EN-GB\">\"Wärtsilä is a global leader and their propulsion and power generation systems are among the best in the world. We are therefore confident that the technology of their systems will enhance the capabilities and performance of the chemical tankers we are building,\" says Chan Eng Yew, Chief Executive Officer of Triyards Holdings Limited.</span>\r\n<blockquote><span lang=\"EN-GB\"> </span>These are the first chemical tankers that the yards have been contracted to build, and Wärtsilä\'s support and know-how for the engineering and systems integration is of considerable importance. We are delighted to be working once again in Vietnam and are extremely pleased to be cooperating with Triyards in this important project,  says Hans Laheij, Sales Director, Wärtsilä Marine Solutions.</blockquote>\r\n<span lang=\"EN-GB\"> </span>For each vessel Wärtsilä will supply a controllable pitch propeller (CPP), a tunnel gearbox, a shaft alternator, two tunnel thrusters, three Auxpac generating sets, a Wärtsilä Propulsion Condition Monitoring System (PCMS), as well as all related auxiliaries for the various systems. The Wärtsilä equipment is scheduled to be delivered to the yards during 2016. In addition to this, the ships will be powered by a 6-cylinder Wärtsilä X40-B two-stroke main engine designed by Winterthur Gas &amp; Diesel, a joint venture between Wärtsilä and China State Shipbuilding Corporation (CSSC). The engine contract has been agreed separately between Triyards Marine Services Pte. Ltd. and the Chinese two-stroke engine builder, Yuchai Marine Power Co., Ltd. (YCMP).\r\n\r\n<span lang=\"EN-GB\"> </span>The three 153 metre long tankers are set to be delivered to the owner in 2017. They will operate between Rotterdam in the Netherlands and Montreal, Canada.','Wärtsilä chosen for chemical tankers to be built in Vietnam','','publish','open','open','','wartsila-chosen-for-chemical-tankers-to-be-built-in-vietnam','','','2015-12-22 13:24:08','2015-12-22 13:24:08','',0,'http://myseatime.com/blogadm/?p=1259',0,'post','',0,45),(1260,1,'2015-12-16 20:04:20','2015-12-16 20:04:20','wartsilla','Triyards','','inherit','open','open','','triyards','','','2015-12-16 20:04:30','2015-12-16 20:04:30','',1259,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Triyards.jpg',0,'attachment','image/jpeg',0,0),(1261,1,'2015-12-16 20:05:04','2015-12-16 20:05:04','<span lang=\"EN-GB\">Three new 21,800 dwt chemical tankers, under construction at two different shipyards in Vietnam owned by Triyards Holdings Limited, will feature integrated Wärtsilä propulsion and power generation systems. These ships are being built for Swiss-Canadian Maritime Ltd and will be managed by Switzerland based ABC Maritime A.G. The contract with Wärtsilä was signed in November, and there are options for three more vessels.</span>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Triyards.jpg\"><img class=\"aligncenter size-full wp-image-1260\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Triyards.jpg\" alt=\"Triyards\" width=\"750\" height=\"208\" /></a>\r\n\r\n<span lang=\"EN-GB\">This contract represents the largest ever scope of supply that Wärtsilä is to deliver to a shipyard in Vietnam. Wärtsilä\'s capability for providing a total solution package and to be responsible for the engineering and integration of the solutions provided, is cited as being a key factor in the award of this contract.</span>\r\n\r\n<span lang=\"EN-GB\">\"Wärtsilä is a global leader and their propulsion and power generation systems are among the best in the world. We are therefore confident that the technology of their systems will enhance the capabilities and performance of the chemical tankers we are building,\" says Chan Eng Yew, Chief Executive Officer of Triyards Holdings Limited.</span>\r\n<blockquote><span lang=\"EN-GB\"> </span>These are the first chemical tankers that the yards have been contracted to build, and Wärtsilä\'s support and know-how for the engineering and systems integration is of considerable importance. We are delighted to be working once again in Vietnam and are extremely pleased to be cooperating with Triyards in this important project,  says Hans Laheij, Sales Director, Wärtsilä Marine Solutions.</blockquote>\r\n<span lang=\"EN-GB\"> </span>For each vessel Wärtsilä will supply a controllable pitch propeller (CPP), a tunnel gearbox, a shaft alternator, two tunnel thrusters, three Auxpac generating sets, a Wärtsilä Propulsion Condition Monitoring System (PCMS), as well as all related auxiliaries for the various systems. The Wärtsilä equipment is scheduled to be delivered to the yards during 2016. In addition to this, the ships will be powered by a 6-cylinder Wärtsilä X40-B two-stroke main engine designed by Winterthur Gas &amp; Diesel, a joint venture between Wärtsilä and China State Shipbuilding Corporation (CSSC). The engine contract has been agreed separately between Triyards Marine Services Pte. Ltd. and the Chinese two-stroke engine builder, Yuchai Marine Power Co., Ltd. (YCMP).\r\n\r\n<span lang=\"EN-GB\"> </span>The three 153 metre long tankers are set to be delivered to the owner in 2017. They will operate between Rotterdam in the Netherlands and Montreal, Canada.','Wärtsilä chosen for chemical tankers to be built in Vietnam','','inherit','open','open','','1259-revision-v1','','','2015-12-16 20:05:04','2015-12-16 20:05:04','',1259,'http://myseatime.com/blogadm/1259-revision-v1/',0,'revision','',0,0),(1262,1,'2015-12-22 13:23:08','2015-12-22 13:23:08','<span lang=\"EN-GB\">Three new 21,800 dwt chemical tankers, under construction at two different shipyards in Vietnam owned by Triyards Holdings Limited, will feature integrated Wärtsilä propulsion and power generation systems. These ships are being built for Swiss-Canadian Maritime Ltd and will be managed by Switzerland based ABC Maritime A.G. The contract with Wärtsilä was signed in November, and there are options for three more vessels.</span>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Triyards.jpg\"><img class=\"aligncenter size-full wp-image-1260\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Triyards.jpg\" alt=\"Triyards\" width=\"750\" height=\"208\" /></a>\r\n\r\n<span lang=\"EN-GB\">This contract represents the largest ever scope of supply that Wärtsilä is to deliver to a shipyard in Vietnam. Wärtsilä\'s capability for providing a total solution package and to be responsible for the engineering and integration of the solutions provided, is cited as being a key factor in the award of this contract.</span>\r\n\r\n<div style=padding: 12px; background-color:#f8e187; line-height:1.4;\">Your content here!</div>\r\n\r\n<span lang=\"EN-GB\">\"Wärtsilä is a global leader and their propulsion and power generation systems are among the best in the world. We are therefore confident that the technology of their systems will enhance the capabilities and performance of the chemical tankers we are building,\" says Chan Eng Yew, Chief Executive Officer of Triyards Holdings Limited.</span>\r\n<blockquote><span lang=\"EN-GB\"> </span>These are the first chemical tankers that the yards have been contracted to build, and Wärtsilä\'s support and know-how for the engineering and systems integration is of considerable importance. We are delighted to be working once again in Vietnam and are extremely pleased to be cooperating with Triyards in this important project,  says Hans Laheij, Sales Director, Wärtsilä Marine Solutions.</blockquote>\r\n<span lang=\"EN-GB\"> </span>For each vessel Wärtsilä will supply a controllable pitch propeller (CPP), a tunnel gearbox, a shaft alternator, two tunnel thrusters, three Auxpac generating sets, a Wärtsilä Propulsion Condition Monitoring System (PCMS), as well as all related auxiliaries for the various systems. The Wärtsilä equipment is scheduled to be delivered to the yards during 2016. In addition to this, the ships will be powered by a 6-cylinder Wärtsilä X40-B two-stroke main engine designed by Winterthur Gas &amp; Diesel, a joint venture between Wärtsilä and China State Shipbuilding Corporation (CSSC). The engine contract has been agreed separately between Triyards Marine Services Pte. Ltd. and the Chinese two-stroke engine builder, Yuchai Marine Power Co., Ltd. (YCMP).\r\n\r\n<span lang=\"EN-GB\"> </span>The three 153 metre long tankers are set to be delivered to the owner in 2017. They will operate between Rotterdam in the Netherlands and Montreal, Canada.','Wärtsilä chosen for chemical tankers to be built in Vietnam','','inherit','open','open','','1259-revision-v1','','','2015-12-22 13:23:08','2015-12-22 13:23:08','',1259,'http://myseatime.com/blogadm/1259-revision-v1/',0,'revision','',0,0),(1263,1,'2015-12-22 13:24:08','2015-12-22 13:24:08','<span lang=\"EN-GB\">Three new 21,800 dwt chemical tankers, under construction at two different shipyards in Vietnam owned by Triyards Holdings Limited, will feature integrated Wärtsilä propulsion and power generation systems. These ships are being built for Swiss-Canadian Maritime Ltd and will be managed by Switzerland based ABC Maritime A.G. The contract with Wärtsilä was signed in November, and there are options for three more vessels.</span>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Triyards.jpg\"><img class=\"aligncenter size-full wp-image-1260\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Triyards.jpg\" alt=\"Triyards\" width=\"750\" height=\"208\" /></a>\r\n\r\n<span lang=\"EN-GB\">This contract represents the largest ever scope of supply that Wärtsilä is to deliver to a shipyard in Vietnam. Wärtsilä\'s capability for providing a total solution package and to be responsible for the engineering and integration of the solutions provided, is cited as being a key factor in the award of this contract.</span>\r\n\r\n<span lang=\"EN-GB\">\"Wärtsilä is a global leader and their propulsion and power generation systems are among the best in the world. We are therefore confident that the technology of their systems will enhance the capabilities and performance of the chemical tankers we are building,\" says Chan Eng Yew, Chief Executive Officer of Triyards Holdings Limited.</span>\r\n<blockquote><span lang=\"EN-GB\"> </span>These are the first chemical tankers that the yards have been contracted to build, and Wärtsilä\'s support and know-how for the engineering and systems integration is of considerable importance. We are delighted to be working once again in Vietnam and are extremely pleased to be cooperating with Triyards in this important project,  says Hans Laheij, Sales Director, Wärtsilä Marine Solutions.</blockquote>\r\n<span lang=\"EN-GB\"> </span>For each vessel Wärtsilä will supply a controllable pitch propeller (CPP), a tunnel gearbox, a shaft alternator, two tunnel thrusters, three Auxpac generating sets, a Wärtsilä Propulsion Condition Monitoring System (PCMS), as well as all related auxiliaries for the various systems. The Wärtsilä equipment is scheduled to be delivered to the yards during 2016. In addition to this, the ships will be powered by a 6-cylinder Wärtsilä X40-B two-stroke main engine designed by Winterthur Gas &amp; Diesel, a joint venture between Wärtsilä and China State Shipbuilding Corporation (CSSC). The engine contract has been agreed separately between Triyards Marine Services Pte. Ltd. and the Chinese two-stroke engine builder, Yuchai Marine Power Co., Ltd. (YCMP).\r\n\r\n<span lang=\"EN-GB\"> </span>The three 153 metre long tankers are set to be delivered to the owner in 2017. They will operate between Rotterdam in the Netherlands and Montreal, Canada.','Wärtsilä chosen for chemical tankers to be built in Vietnam','','inherit','open','open','','1259-revision-v1','','','2015-12-22 13:24:08','2015-12-22 13:24:08','',1259,'http://myseatime.com/blogadm/1259-revision-v1/',0,'revision','',0,0),(1264,2,'2015-12-25 09:07:02','2015-12-25 09:07:02','Incoterms is the short form for International Commercial terms. These terms relates to the sales contract and are used worldwide. INCOTERMS were first introduced in 1936 by International chamber of Commerce (ICC). These Incoterms were revised several times, latest being Incoterms 2010.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterm.jpg\"><img class=\"aligncenter size-full wp-image-1305\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterm.jpg\" alt=\"Incoterms\" width=\"700\" height=\"430\" /></a>\r\n\r\n<strong>Why do we need INCOTERMS ?</strong>\r\n\r\nA cargo may move several days before it arrives at its destination. Even though shipping is safer these days, many cargoes still do not reach their destination or reach in bad shape. And when that happens, one should know who had the title of the goods lost. For that reason, It is important for buyer and seller to pre-define the responsibilities and obligations for transport of the goods. INCOTERMS are all the possible ways of distributing responsibilities and obligations between two parties.\r\n\r\nThese responsibilities and obligations include\r\n<ol>\r\n	<li><strong>Point of delivery:</strong> Incoterms defines the point of delivery of the goods by seller to buyer. The meaning of delivery here  is\"transfer of risk and responsibility\". So the INCOTERMS defines the point of change of hands (passing of risk) from seller to buyer.</li>\r\n	<li><strong>Transportation Costs:</strong> Incoterms defines which party pays for the transportation cost. There may be more than one means of transportation and INCOTERMS defines who pays for which leg of the transportation. In case of sea transport, it also means which party will act as shipper of the cargo.</li>\r\n	<li><strong>Export and import formalities:</strong> Incoterms outlines which party arranges for export and import formalities.</li>\r\n	<li><strong>Insurance costs:</strong> Incoterms outlines who bears the insurance costs.</li>\r\n</ol>\r\nThere are few important points that requires highlighting before we move any further.\r\n<ol>\r\n	<li>Arranging for the main transport does not mean the risk is with the arranging party. Seller may arrange for the main transportation even when the consignment is already delivered (that is risk has passed to buyer). In this case the risk has passed to the buyer and seller is just acting as the shipper without any risk to him.</li>\r\n	<li>Arranging for the insurance does not mean that risk is with the party arranging the insurance. In few of the INCOTERMS, seller arranges for insurance to cover buyer\'s risk. In these cases, seller is only required to cover minimum risk as defined in the minimum risk clause in respective incoterm. Buyer must take more insurance to cover any extra risk that he wishes to insure against.</li>\r\n</ol>\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\"><img class=\"aligncenter size-full wp-image-1265\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\" alt=\"Incoterms\" width=\"750\" height=\"400\" /></a>\r\n\r\nThere are total 11 INCOTERMS defined by the ICC . The 11 INCOTERMS are based upon the consideration of least responsibility of the seller to least responsibility of the buyer. For example INCOTERM EXW (ex-work) considers least responsibilty for the seller. Same way INCOTERM DDP (Delievered duty paid) considers least responsibility for the buyer. We can say that all other nine INCOTERMS lies between these two extremes.\r\n\r\nOne last thing before we take the incoterms head on. Lets differentiate and group together each Incoterm. First on the basis of mode of transport that they are used and second based upon the point of delivery.\r\n\r\n<strong style=\"line-height: 1.5;\">Incoterms Based upon the Mode of transport.</strong>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\"><img class=\"aligncenter size-full wp-image-1269\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\" alt=\"Incoterms based upon mode of transport\" width=\"750\" height=\"330\" /></a>\r\n\r\nThe first group includes seven incoterms which can be used in any mode of transport. These can be used even when there is no sea transport used. Incoterms EXW, FCA, CPT, CIP, DAT, DAP and DDP belongs to this group. The second group includes four incoterms which are used in sea or inland waterways only. This is because in these incoterms the point of delivery and the destination place are both sea ports. Incoterms  FAS, FOB, CFR and CIF belongs to this second group.\r\n\r\n<strong>Incoterms groups based upon point of delivery</strong>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\"><img class=\"aligncenter size-full wp-image-1270\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\" alt=\"Incoterms based upon Point of delivery\" width=\"750\" height=\"300\" /></a>\r\n\r\nIncoterms can also be grouped  together in 4 categories based upon the point of delivery. In group \"E\" (Ex-works), the delivery point is seller\'s premises. In group \"F\" (FOB, FAS &amp; FCA), the delivery point is before or upto the main carrier, with main carried unpaid by seller. In group \"C\" (CFR, CIF, CPT &amp; CIP), the delivery point is upto and beyond the main carrier with carrier paid by seller. And finally in group \"D\" (DAP, DAT &amp; DDP), the delivery point is the final destination.\r\n\r\nNow that we are clear on some of the important points, lets jump into each of the incoterm.\r\n\r\n<strong>1. EXW (Ex-Works): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\"><img class=\"aligncenter size-full wp-image-1271\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\" alt=\"Ex Works\" width=\"750\" height=\"350\" /></a>\r\n\r\nWith Ex-works the seller has the least responsibility. Seller has the responsibility to deliver the goods to the buyer at seller\'s premises, depot or any other agreed places. From there on, all responsibility and risks are with the buyer. It means,\r\n<ol>\r\n	<li>The delivery point is seller\'s premises</li>\r\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\r\n	<li>buyer arranges for all modes of transport .</li>\r\n	<li>Buyer pays for the insurance</li>\r\n</ol>\r\nEx-works is often used while making quoting initial prices for sale contracts. In practice, this incoterm can have practical difficulties specially in cross border assignments. These difficulties may include buyer\'s inability to arrange for export formalities.\r\n\r\n<strong>2. Delivered duty paid (DDP): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg\"><img class=\"aligncenter size-full wp-image-1285\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg\" alt=\"Delivered Duty Paid DDP\" width=\"750\" height=\"350\" /></a>\r\n\r\nDelivered duty paid is just the opposite of Ex-works. Seller has the most responsibility.  Seller has the responsibility to deliver the goods at buyer\'s premises, depot or any other place as agreed. It means that from seller\'s premises to buyer\'s premises or any other agreed place\r\n<ol>\r\n	<li>The delivery point is buyer\'s premises or other place agreed.</li>\r\n	<li>Seller handles the cargo and pays for export as well as import dues and</li>\r\n	<li>Seller arranges the transport of the cargo. Which also means that in case of sea transport, seller will be the shipper of the goods.</li>\r\n	<li>Seller pays for the insurance.</li>\r\n</ol>\r\nAs in Ex-works, DDP can also have practical difficulties in cross border assignments. In DDP, seller is responsible to clear the import formalities but the seller may not have the local knowledge &amp; expertise to clear import formalities.\r\n\r\n3. <strong>Free Carrier (FCA): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\"><img class=\"aligncenter size-full wp-image-1273\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\" alt=\"Free Carrier FCA\" width=\"750\" height=\"350\" /></a>\r\n\r\nFree carrier means the delivery point is carrier or other person nominated by the buyer at the seller\'s premises or other agreed place. If the agreed place is seller\'s premises, delivery takes place when the goods load on the truck. If the agreed place is not seller\'s premises then the delivery takes place when truck arrives at this place and is ready for unloading. In Free carrier (FCA),\r\n<ol>\r\n	<li>The delivery point is seller\'s premises or any other place agreed.</li>\r\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\r\n	<li>buyer arranges for all modes of transport</li>\r\n</ol>\r\nIn FCA incoterm, the agreed place has implications on the loading of the carrier. If the agreed place is seller\'s premises then seller handles the loading. If the agreed place is other than seller\'s premises, then seller has delivered the goods once the carrier arrives at the agreed place.\r\n\r\n\"FCA seller\'s premises\" might look similar to Ex-works but there is one main difference. In FCA, seller has the obligation to load the goods on the carrier.\r\n\r\n<strong style=\"line-height: 1.5;\">4. Free Onboard (FOB):</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\"><img class=\"aligncenter size-full wp-image-1274\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\" alt=\"Free onboard FOB\" width=\"750\" height=\"350\" /></a>\r\n\r\nFree onboard means the seller delivers the shipment to the carrier nominated by the buyer. There is only a slight difference between FCA and FOB. One difference is the mode of transport. While FCA is applicable for multimodal transport, FOB is used only for sea transport. In FOB, the seller passes the risk to the buyer when shipment crosses ship\'s rail.  In FCA, the seller has the obligation to load the shipment on to the carrier arranged by buyer which is prior to the main carrier.\r\n\r\n<strong>5. Cost and Freight (CFR)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\"><img class=\"aligncenter size-full wp-image-1275\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\" alt=\"Cost &amp; Freight CFR\" width=\"750\" height=\"350\" /></a>\r\n\r\nBy cost and freight, it means while seller bears cost and freight of shipment to the destination but the risk is with the buyer. And that is also the main difference between CFR and FOB incoterms. In FOB, seller delivers the shipment and passes the risk to buyer when shipment crosses ship\'s rail. But, in CFR, he also pays for the costs and freight until the shipment reaches to the destination. This was exactly the point discussed earlier. Arranging for the transport does not mean that the risk is with the party arranging the transport. In this case, seller arranges the main transport (Seller is the shipper), but he has already delivered the shipment or passed the risk to the buyer upon shipment crossing th ship\'s rail.\r\n\r\n<strong>6. Cost , Insurance and Freight (CIF)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\"><img class=\"aligncenter size-full wp-image-1276\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\" alt=\"Cost, Insurance &amp; Freight CIF\" width=\"750\" height=\"350\" /></a>\r\n\r\nThere is only one but obvious difference between CFR and CIF and that is addition of Insurance. Seller passes the risk to the buyer when the shipment is loaded on the carrier. But the seller also arranges for the main carrier (Seller is the shipper). Apart from that seller also pays for the insurance for covering the buyer\'s risk during carriage of the shipment. As seller would be paying to cover the buyer\'s risk, he would offcourse wish to have least insurance just to cover his obligations. Buyer must take this into account and take extra insurance if he wish to.\r\n\r\n<strong>7. Free Alongside Ship (FAS)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\"><img class=\"aligncenter size-full wp-image-1277\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\" alt=\"Free Alongside Ship FAS\" width=\"750\" height=\"350\" /></a>\r\n\r\nAs simple as it sounds. The seller delivers the shipment to buyer when the goods are alongside ship. Risk passes from seller to buyer when the good are brought alongside the ship. Buyer arranges for the main carrier (Buyer is the shipper). Buyer pays for the all the insurance after this point.\r\n\r\n<strong>8. Carriage paid to (CPT)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg\"><img class=\"aligncenter size-full wp-image-1279\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg\" alt=\"Carriage paid to CPT\" width=\"750\" height=\"350\" /></a>\r\n\r\nSeller pays for the main carriage to bring the shipment at agreed place. However the seller passes the risk to the buyer upon delivery to the main carrier. This is the point that we highlighted earlier. \"Arranging for the main transport does not mean the risk is with the arranging party\". Here even when the seller arranges for the main carrier, risk has already passed  to the buyer.\r\n\r\nBuyer also arranges for the insurance from the point of delivery.\r\n\r\n<strong>9. Carriage and insurance paid (CIP)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg\"><img class=\"aligncenter size-full wp-image-1280\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg\" alt=\"Carriage &amp; Insurance paid to CIP\" width=\"750\" height=\"350\" /></a>\r\n\r\nIn CIP, Seller delivers the goods and passes the risk to the buyer upon delivery to the main carrier. Seller arranges and pays for the main carrier (Seller is the shipper) to bring the shipment at agreed place. Seller also arranges for insurance on behalf of buyer to cover buyer\'s risk. The main difference between CPT and CIP is that the insurance is also paid by the seller. Again this point was highlighted earlier. \"arranging for the insurance does not mean that risk is with the party arranging the insurance\". Here Seller pays for the insurance but the risk is not with him. Seller arranges for the insurance to cover buyer\'s risk. CIP requires seller to arrange for insurance equals to 110% of the cargo value under minimum insurance claim. Buyer must insure himself against any additional risk  he thinks need insuring against.\r\n\r\n<strong>10. Delivered at place (DAP)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg\"><img class=\"aligncenter size-full wp-image-1282\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg\" alt=\"Delivered at place\" width=\"750\" height=\"350\" /></a>\r\n\r\nDAP means seller delievers when shipment arrives at final destination, ready for unloading from the arriving mode of transport. Seller bears all the costs and risks in bringing the goods to this place.\r\n\r\n1) Seller handles export fees, carriage, insurance and destination port charges.\r\n\r\n2) Buyer handles import fees and unloading of goods.\r\n\r\n<strong>11. Delivered at terminal (DAT)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg\"><img class=\"aligncenter size-full wp-image-1284\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg\" alt=\"Delivered at Terminal DAT\" width=\"750\" height=\"350\" /></a>\r\n\r\nSeller delivers the shipment and passes the risk to the buyer when shipment is put at the disposal of buyer at the terminal of final destination. Seller handles export fees, carriage, insurance, destination port charges and unloading of the goods. The main difference between DAT and DAP is that in DAT, seller  handles the final unloading of the goods.\r\n\r\n<strong>Common Mistakes in using Incoterms </strong>\r\n\r\n1) Failure to include the precise place alongwith the destination.\r\n\r\nThe use of Incoterms need to specify the precise place. For example FCA Durban does not specify the precise location as Durban is a broad area. Incoterm must mention the exact location in Durban. For example, FCA Durban berth no 42.\r\n\r\n2)  Use of DDP incoterm without considering if the seller has the knowledge and expertise or if local regulations allows him to clear import formalities in buyer\'s country.\r\n\r\n3) Use of EXW incoterm without considering if the buyer has the knowledge and expertise or if local regulations allows him to clear export formalities in seller\'s country.\r\n\r\n4) Using \"sea or inland waterways\" incoterms for containerized goods. These four incoterms which are used for sea and inland waterways are not meant for containerized goods. These are actually meant for bulk cargoes and non- containerized goods. Use of these incoterms for containerized goods can put exporters at undue risk as the goods may have to wait several days before despatch.\r\n\r\nIf you are still in doubt as to which Incoterm you should use where, here is a useful tool you should check. The tool was created by The Belgian foreign trade agency in collaboration with Always consult.\r\n\r\n<a href=\"http://incoterms.abh-ace.be/en/index.html\" target=\"_blank\">Incoterm Decision chart</a>','Incoterms: Guide of everything you want to know about','','publish','open','open','','incoterms-guide-of-everything-you-want-to-know-about','','','2016-01-03 11:11:05','2016-01-03 11:11:05','',0,'http://myseatime.com/blogadm/?p=1264',0,'post','',0,218),(1265,1,'2015-12-22 18:50:07','2015-12-22 18:50:07','','Incoterms','','inherit','open','open','','incoterms','','','2015-12-22 18:50:07','2015-12-22 18:50:07','',1264,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg',0,'attachment','image/jpeg',0,0),(1266,1,'2015-12-22 18:54:07','2015-12-22 18:54:07','Incoterms is the short form for International Commercial terms. These terms relates to the sales contract and are used worldwide. INCOTERMS were first introduced in 1936 by International chamber of Commerce (ICC). These Incoterms were revised several times, latest being Incoterms 2010.\r\n\r\n<strong>Why do we need INCOTERMS ?</strong>\r\n\r\nA cargo may move several days before it arrives at its destination. Even though shipping is safer these days, many cargoes still do not reach their destination or reach in bad shape. It is important for buyer and seller to pre-define the responsibilities and obligations for transport of the goods. INCOTERMS are all the possible ways of distributing responsibilities and obligations between two parties.\r\n\r\nThese responsibilities and obligations include\r\n\r\nPoint of delivery: Incoterms defines the point of delivery of the goods by seller to buyer. The meaning of delivery here is\"transfer of risk and responsibility\".\r\nTransportation Costs: Incoterms defines which party pays for the transportation cost. There may be more than one means of transportation and INCOTERMS defines who pays for which leg of the transportation. In case of sea transport, it also means which party will act as shipper of the cargo.\r\nExport and import formalities: Incoterms outlines which party arranges for export and import formalities.\r\nInsurance costs: Incoterms outlines who bears the insurance costs.\r\nThere are few important points that requires highlighting before we move any further.\r\n<ol>\r\n	<li>Arranging for the main transport does not mean the risk is with the arranging party. Seller may arrange for the main transportation even when the consignment is already delievered (that is risk has passed to buyer). In this case the risk has passed to the buyer and seller is just acting as the shipper without any risk to him.</li>\r\n	<li>Arranging for the insurance does not mean that risk is with the party arranging the insurance. In few of the INCOTERMS, seller arranges for insurance to cover buyer\'s risk. In these cases, seller is only required to cover minimum risk and buyer must take more insurance to cover any extra risk</li>\r\n</ol>\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\"><img class=\"aligncenter size-full wp-image-1265\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\" alt=\"Incoterms\" width=\"750\" height=\"400\" /></a>','','','inherit','open','open','','1264-revision-v1','','','2015-12-22 18:54:07','2015-12-22 18:54:07','',1264,'http://myseatime.com/blogadm/1264-revision-v1/',0,'revision','',0,0),(1267,1,'2016-01-03 11:10:20','2016-01-03 11:10:20','Incoterms is the short form for International Commercial terms. These terms relates to the sales contract and are used worldwide. INCOTERMS were first introduced in 1936 by International chamber of Commerce (ICC). These Incoterms were revised several times, latest being Incoterms 2010.\n\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterm.jpg\"><img class=\"aligncenter size-full wp-image-1305\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterm.jpg\" alt=\"Incoterms\" width=\"700\" height=\"430\" /></a>\n\n<strong>Why do we need INCOTERMS ?</strong>\n\nA cargo may move several days before it arrives at its destination. Even though shipping is safer these days, many cargoes still do not reach their destination or reach in bad shape. And when that happens, one should know who had the title of the goods lost. For that reason, It is important for buyer and seller to pre-define the responsibilities and obligations for transport of the goods. INCOTERMS are all the possible ways of distributing responsibilities and obligations between two parties.\n\nThese responsibilities and obligations include\n<ol>\n	<li><strong>Point of delivery:</strong> Incoterms defines the point of delivery of the goods by seller to buyer. The meaning of delivery here  is\"transfer of risk and responsibility\". So the INCOTERMS defines the point of change of hands (passing of risk) from seller to buyer.</li>\n	<li><strong>Transportation Costs:</strong> Incoterms defines which party pays for the transportation cost. There may be more than one means of transportation and INCOTERMS defines who pays for which leg of the transportation. In case of sea transport, it also means which party will act as shipper of the cargo.</li>\n	<li><strong>Export and import formalities:</strong> Incoterms outlines which party arranges for export and import formalities.</li>\n	<li><strong>Insurance costs:</strong> Incoterms outlines who bears the insurance costs.</li>\n</ol>\nThere are few important points that requires highlighting before we move any further.\n<ol>\n	<li>Arranging for the main transport does not mean the risk is with the arranging party. Seller may arrange for the main transportation even when the consignment is already delivered (that is risk has passed to buyer). In this case the risk has passed to the buyer and seller is just acting as the shipper without any risk to him.</li>\n	<li>Arranging for the insurance does not mean that risk is with the party arranging the insurance. In few of the INCOTERMS, seller arranges for insurance to cover buyer\'s risk. In these cases, seller is only required to cover minimum risk as defined in the minimum risk clause in respective incoterm. Buyer must take more insurance to cover any extra risk that he wishes to insure against.</li>\n</ol>\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\"><img class=\"aligncenter size-full wp-image-1265\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\" alt=\"Incoterms\" width=\"750\" height=\"400\" /></a>\n\nThere are total 11 INCOTERMS defined by the ICC . The 11 INCOTERMS are based upon the consideration of least responsibility of the seller to least responsibility of the buyer. For example INCOTERM EXW (ex-work) considers least responsibilty for the seller. Same way INCOTERM DDP (Delievered duty paid) considers least responsibility for the buyer. We can say that all other nine INCOTERMS lies between these two extremes.\n\nOne last thing before we take the incoterms head on. Lets differentiate and group together each Incoterm. First on the basis of mode of transport that they are used and second based upon the point of delivery.\n\n<strong style=\"line-height: 1.5;\">Incoterms Based upon the Mode of transport.</strong>\n\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\"><img class=\"aligncenter size-full wp-image-1269\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\" alt=\"Incoterms based upon mode of transport\" width=\"750\" height=\"330\" /></a>\n\nThe first group includes seven incoterms which can be used in any mode of transport. These can be used even when there is no sea transport used. Incoterms EXW, FCA, CPT, CIP, DAT, DAP and DDP belongs to this group. The second group includes four incoterms which are used in sea or inland waterways only. This is because in these incoterms the point of delivery and the destination place are both sea ports. Incoterms  FAS, FOB, CFR and CIF belongs to this second group.\n\n<strong>Incoterms groups based upon point of delivery</strong>\n\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\"><img class=\"aligncenter size-full wp-image-1270\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\" alt=\"Incoterms based upon Point of delivery\" width=\"750\" height=\"300\" /></a>\n\nIncoterms can also be grouped  together in 4 categories based upon the point of delivery. In group \"E\" (Ex-works), the delivery point is seller\'s premises. In group \"F\" (FOB, FAS &amp; FCA), the delivery point is before or upto the main carrier, with main carried unpaid by seller. In group \"C\" (CFR, CIF, CPT &amp; CIP), the delivery point is upto and beyond the main carrier with carrier paid by seller. And finally in group \"D\" (DAP, DAT &amp; DDP), the delivery point is the final destination.\n\nNow that we are clear on some of the important points, lets jump into each of the incoterm.\n\n<strong>1. EXW (Ex-Works): </strong>\n\nMode of transport: Multimodal\n\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\"><img class=\"aligncenter size-full wp-image-1271\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\" alt=\"Ex Works\" width=\"750\" height=\"350\" /></a>\n\nWith Ex-works the seller has the least responsibility. Seller has the responsibility to deliver the goods to the buyer at seller\'s premises, depot or any other agreed places. From there on, all responsibility and risks are with the buyer. It means,\n<ol>\n	<li>The delivery point is seller\'s premises</li>\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\n	<li>buyer arranges for all modes of transport .</li>\n	<li>Buyer pays for the insurance</li>\n</ol>\nEx-works is often used while making quoting initial prices for sale contracts. In practice, this incoterm can have practical difficulties specially in cross border assignments. These difficulties may include buyer\'s inability to arrange for export formalities.\n\n<strong>2. Delivered duty paid (DDP): </strong>\n\nMode of transport: Multimodal\n\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg\"><img class=\"aligncenter size-full wp-image-1285\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg\" alt=\"Delivered Duty Paid DDP\" width=\"750\" height=\"350\" /></a>\n\nDelivered duty paid is just the opposite of Ex-works. Seller has the most responsibility.  Seller has the responsibility to deliver the goods at buyer\'s premises, depot or any other place as agreed. It means that from seller\'s premises to buyer\'s premises or any other agreed place\n<ol>\n	<li>The delivery point is buyer\'s premises or other place agreed.</li>\n	<li>Seller handles the cargo and pays for export as well as import dues and</li>\n	<li>Seller arranges the transport of the cargo. Which also means that in case of sea transport, seller will be the shipper of the goods.</li>\n	<li>Seller pays for the insurance.</li>\n</ol>\nAs in Ex-works, DDP can also have practical difficulties in cross border assignments. In DDP, seller is responsible to clear the import formalities but the seller may not have the local knowledge &amp; expertise to clear import formalities.\n\n3. <strong>Free Carrier (FCA): </strong>\n\nMode of transport: Multimodal\n\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\"><img class=\"aligncenter size-full wp-image-1273\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\" alt=\"Free Carrier FCA\" width=\"750\" height=\"350\" /></a>\n\nFree carrier means the delivery point is carrier or other person nominated by the buyer at the seller\'s premises or other agreed place. If the agreed place is seller\'s premises, delivery takes place when the goods load on the truck. If the agreed place is not seller\'s premises then the delivery takes place when truck arrives at this place and is ready for unloading. In Free carrier (FCA),\n<ol>\n	<li>The delivery point is seller\'s premises or any other place agreed.</li>\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\n	<li>buyer arranges for all modes of transport</li>\n</ol>\nIn FCA incoterm, the agreed place has implications on the loading of the carrier. If the agreed place is seller\'s premises then seller handles the loading. If the agreed place is other than seller\'s premises, then seller has delivered the goods once the carrier arrives at the agreed place.\n\n\"FCA seller\'s premises\" might look similar to Ex-works but there is one main difference. In FCA, seller has the obligation to load the goods on the carrier.\n\n<strong style=\"line-height: 1.5;\">4. Free Onboard (FOB):</strong>\n\nMode of transport: Sea\n\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\"><img class=\"aligncenter size-full wp-image-1274\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\" alt=\"Free onboard FOB\" width=\"750\" height=\"350\" /></a>\n\nFree onboard means the seller delivers the shipment to the carrier nominated by the buyer. There is only a slight difference between FCA and FOB. One difference is the mode of transport. While FCA is applicable for multimodal transport, FOB is used only for sea transport. In FOB, the seller passes the risk to the buyer when shipment crosses ship\'s rail.  In FCA, the seller has the obligation to load the shipment on to the carrier arranged by buyer which is prior to the main carrier.\n\n<strong>5. Cost and Freight (CFR)</strong>\n\nMode of transport: Sea\n\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\"><img class=\"aligncenter size-full wp-image-1275\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\" alt=\"Cost &amp; Freight CFR\" width=\"750\" height=\"350\" /></a>\n\nBy cost and freight, it means while seller bears cost and freight of shipment to the destination but the risk is with the buyer. And that is also the main difference between CFR and FOB incoterms. In FOB, seller delivers the shipment and passes the risk to buyer when shipment crosses ship\'s rail. But, in CFR, he also pays for the costs and freight until the shipment reaches to the destination. This was exactly the point discussed earlier. Arranging for the transport does not mean that the risk is with the party arranging the transport. In this case, seller arranges the main transport (Seller is the shipper), but he has already delivered the shipment or passed the risk to the buyer upon shipment crossing th ship\'s rail.\n\n<strong>6. Cost , Insurance and Freight (CIF)</strong>\n\nMode of transport: Sea\n\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\"><img class=\"aligncenter size-full wp-image-1276\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\" alt=\"Cost, Insurance &amp; Freight CIF\" width=\"750\" height=\"350\" /></a>\n\nThere is only one but obvious difference between CFR and CIF and that is addition of Insurance. Seller passes the risk to the buyer when the shipment is loaded on the carrier. But the seller also arranges for the main carrier (Seller is the shipper). Apart from that seller also pays for the insurance for covering the buyer\'s risk during carriage of the shipment. As seller would be paying to cover the buyer\'s risk, he would offcourse wish to have least insurance just to cover his obligations. Buyer must take this into account and take extra insurance if he wish to.\n\n<strong>7. Free Alongside Ship (FAS)</strong>\n\nMode of transport: Sea\n\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\"><img class=\"aligncenter size-full wp-image-1277\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\" alt=\"Free Alongside Ship FAS\" width=\"750\" height=\"350\" /></a>\n\nAs simple as it sounds. The seller delivers the shipment to buyer when the goods are alongside ship. Risk passes from seller to buyer when the good are brought alongside the ship. Buyer arranges for the main carrier (Buyer is the shipper). Buyer pays for the all the insurance after this point.\n\n<strong>8. Carriage paid to (CPT)</strong>\n\nMode of transport: Multimodal\n\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg\"><img class=\"aligncenter size-full wp-image-1279\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg\" alt=\"Carriage paid to CPT\" width=\"750\" height=\"350\" /></a>\n\nSeller pays for the main carriage to bring the shipment at agreed place. However the seller passes the risk to the buyer upon delivery to the main carrier. This is the point that we highlighted earlier. \"Arranging for the main transport does not mean the risk is with the arranging party\". Here even when the seller arranges for the main carrier, risk has already passed  to the buyer.\n\nBuyer also arranges for the insurance from the point of delivery.\n\n<strong>9. Carriage and insurance paid (CIP)</strong>\n\nMode of transport: Multimodal\n\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg\"><img class=\"aligncenter size-full wp-image-1280\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg\" alt=\"Carriage &amp; Insurance paid to CIP\" width=\"750\" height=\"350\" /></a>\n\nIn CIP, Seller delivers the goods and passes the risk to the buyer upon delivery to the main carrier. Seller arranges and pays for the main carrier (Seller is the shipper) to bring the shipment at agreed place. Seller also arranges for insurance on behalf of buyer to cover buyer\'s risk. The main difference between CPT and CIP is that the insurance is also paid by the seller. Again this point was highlighted earlier. \"arranging for the insurance does not mean that risk is with the party arranging the insurance\". Here Seller pays for the insurance but the risk is not with him. Seller arranges for the insurance to cover buyer\'s risk. CIP requires seller to arrange for insurance equals to 110% of the cargo value under minimum insurance claim. Buyer must insure himself against any additional risk  he thinks need insuring against.\n\n<strong>10. Delivered at place (DAP)</strong>\n\nMode of transport: Multimodal\n\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg\"><img class=\"aligncenter size-full wp-image-1282\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg\" alt=\"Delivered at place\" width=\"750\" height=\"350\" /></a>\n\nDAP means seller delievers when shipment arrives at final destination, ready for unloading from the arriving mode of transport. Seller bears all the costs and risks in bringing the goods to this place.\n\n1) Seller handles export fees, carriage, insurance and destination port charges.\n\n2) Buyer handles import fees and unloading of goods.\n\n<strong>11. Delivered at terminal (DAT)</strong>\n\nMode of transport: Multimodal\n\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg\"><img class=\"aligncenter size-full wp-image-1284\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg\" alt=\"Delivered at Terminal DAT\" width=\"750\" height=\"350\" /></a>\n\nSeller delivers the shipment and passes the risk to the buyer when shipment is put at the disposal of buyer at the terminal of final destination. Seller handles export fees, carriage, insurance, destination port charges and unloading of the goods. The main difference between DAT and DAP is that in DAT, seller  handles the final unloading of the goods.\n\n<strong>Common Mistakes in using Incoterms </strong>\n\n1) Failure to include the precise place alongwith the destination.\n\nThe use of Incoterms need to specify the precise place. For example FCA Durban does not specify the precise location as Durban is a broad area. Incoterm must mention the exact location in Durban. For example, FCA Durban berth no 42.\n\n2)  Use of DDP incoterm without considering if the seller has the knowledge and expertise or if local regulations allows him to clear import formalities in buyer\'s country.\n\n3) Use of EXW incoterm without considering if the buyer has the knowledge and expertise or if local regulations allows him to clear export formalities in seller\'s country.\n\n4) Using \"sea or inland waterways\" incoterms for containerized goods. These four incoterms which are used for sea and inland waterways are not meant for containerized goods. These are actually meant for bulk cargoes and non- containerized goods. Use of these incoterms for containerized goods can put exporters at undue risk as the goods may have to wait several days before despatch.\n\nIf you are still in doubt as to which Incoterm you should use where, here is a useful tool you should check. The tool was created by The Belgian foreign trade agency in collaboration with Always consult.','Incoterms: Guide of everything you want to know about','','inherit','open','open','','1264-autosave-v1','','','2016-01-03 11:10:20','2016-01-03 11:10:20','',1264,'http://myseatime.com/blogadm/1264-autosave-v1/',0,'revision','',0,0),(1268,1,'2015-12-23 05:33:30','2015-12-23 05:33:30','Incoterms is the short form for International Commercial terms. These terms relates to the sales contract and are used worldwide. INCOTERMS were first introduced in 1936 by International chamber of Commerce (ICC). These Incoterms were revised several times, latest being Incoterms 2010.\r\n\r\n<strong>Why do we need INCOTERMS ?</strong>\r\n\r\nA cargo may move several days before it arrives at its destination. Even though shipping is safer these days, many cargoes still do not reach their destination or reach in bad shape. It is important for buyer and seller to pre-define the responsibilities and obligations for transport of the goods. INCOTERMS are all the possible ways of distributing responsibilities and obligations between two parties.\r\n\r\nThese responsibilities and obligations include\r\n<ol>\r\n	<li><strong>Point of delivery:</strong> Incoterms defines the point of delivery of the goods by seller to buyer. The meaning of delivery here is\"transfer of risk and responsibility\".</li>\r\n	<li><strong>Transportation Costs:</strong> Incoterms defines which party pays for the transportation cost. There may be more than one means of transportation and INCOTERMS defines who pays for which leg of the transportation. In case of sea transport, it also means which party will act as shipper of the cargo.</li>\r\n	<li><strong>Export and import formalities:</strong> Incoterms outlines which party arranges for export and import formalities.</li>\r\n	<li><strong>Insurance costs:</strong> Incoterms outlines who bears the insurance costs.</li>\r\n</ol>\r\nThere are few important points that requires highlighting before we move any further.\r\n\r\nArranging for the main transport does not mean the risk is with the arranging party. Seller may arrange for the main transportation even when the consignment is already delievered (that is risk has passed to buyer). In this case the risk has passed to the buyer and seller is just acting as the shipper without any risk to him.\r\n\r\nArranging for the insurance does not mean that risk is with the party arranging the insurance. In few of the INCOTERMS, seller arranges for insurance to cover buyer\'s risk. In these cases, seller is only required to cover minimum risk and buyer must take more insurance to cover any extra risk\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\"><img class=\"aligncenter size-full wp-image-1265\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\" alt=\"Incoterms\" width=\"750\" height=\"400\" /></a>','','','inherit','open','open','','1264-revision-v1','','','2015-12-23 05:33:30','2015-12-23 05:33:30','',1264,'http://myseatime.com/blogadm/1264-revision-v1/',0,'revision','',0,0),(1269,1,'2015-12-23 05:47:59','2015-12-23 05:47:59','','Incoterms based upon mode of transport','','inherit','open','open','','incoterms-based-upon-mode-of-transport','','','2015-12-23 05:47:59','2015-12-23 05:47:59','',1264,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png',0,'attachment','image/png',0,0),(1270,1,'2015-12-23 06:17:45','2015-12-23 06:17:45','','Incoterms based upon Point of delivery','','inherit','open','open','','incoterms-based-upon-point-of-delivery','','','2015-12-23 06:17:45','2015-12-23 06:17:45','',1264,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg',0,'attachment','image/jpeg',0,0),(1271,1,'2015-12-23 08:15:40','2015-12-23 08:15:40','','Ex Works','','inherit','open','open','','ex-works','','','2015-12-23 08:15:40','2015-12-23 08:15:40','',1264,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg',0,'attachment','image/jpeg',0,0),(1272,1,'2015-12-23 08:57:44','2015-12-23 08:57:44','Incoterm Delievered Duty paid','Delievered Duty paid','Delievered Duty paid','inherit','open','open','','delievered-duty-paid','','','2015-12-23 08:58:03','2015-12-23 08:58:03','',1264,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delievered-Duty-paid.jpg',0,'attachment','image/jpeg',0,0),(1273,1,'2015-12-23 09:01:07','2015-12-23 09:01:07','Incoterm Free Carrier FCA','Free Carrier FCA','','inherit','open','open','','free-carrier-fca','','','2015-12-23 09:01:23','2015-12-23 09:01:23','',1264,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg',0,'attachment','image/jpeg',0,0),(1274,1,'2015-12-23 09:50:29','2015-12-23 09:50:29','Incoterm Free onboard FOB','Free onboard FOB','','inherit','open','open','','free-onboard-fob','','','2015-12-23 09:50:48','2015-12-23 09:50:48','',1264,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg',0,'attachment','image/jpeg',0,0),(1275,1,'2015-12-23 10:05:57','2015-12-23 10:05:57','Incoterm Cost & Freight CFR','Cost & Freight CFR','','inherit','open','open','','cost-freight-cfr','','','2015-12-23 10:06:13','2015-12-23 10:06:13','',1264,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg',0,'attachment','image/jpeg',0,0),(1276,1,'2015-12-23 10:14:19','2015-12-23 10:14:19','Incoterms Cost, Insurance & Freight CIF','Cost, Insurance & Freight CIF','','inherit','open','open','','cost-insurance-freight-cif','','','2015-12-23 10:14:39','2015-12-23 10:14:39','',1264,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg',0,'attachment','image/jpeg',0,0),(1277,1,'2015-12-23 10:21:45','2015-12-23 10:21:45','Incoterm Free Alongside Ship FAS','Free Alongside Ship FAS','','inherit','open','open','','free-alongside-ship-fas','','','2015-12-23 10:21:59','2015-12-23 10:21:59','',1264,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg',0,'attachment','image/jpeg',0,0),(1278,1,'2015-12-24 06:04:46','2015-12-24 06:04:46','Incoterms is the short form for International Commercial terms. These terms relates to the sales contract and are used worldwide. INCOTERMS were first introduced in 1936 by International chamber of Commerce (ICC). These Incoterms were revised several times, latest being Incoterms 2010.\r\n\r\n<strong>Why do we need INCOTERMS ?</strong>\r\n\r\nA cargo may move several days before it arrives at its destination. Even though shipping is safer these days, many cargoes still do not reach their destination or reach in bad shape. It is important for buyer and seller to pre-define the responsibilities and obligations for transport of the goods. INCOTERMS are all the possible ways of distributing responsibilities and obligations between two parties.\r\n\r\nThese responsibilities and obligations include\r\n<ol>\r\n	<li><strong>Point of delivery:</strong> Incoterms defines the point of delivery of the goods by seller to buyer. The meaning of delivery here is\"transfer of risk and responsibility\".</li>\r\n	<li><strong>Transportation Costs:</strong> Incoterms defines which party pays for the transportation cost. There may be more than one means of transportation and INCOTERMS defines who pays for which leg of the transportation. In case of sea transport, it also means which party will act as shipper of the cargo.</li>\r\n	<li><strong>Export and import formalities:</strong> Incoterms outlines which party arranges for export and import formalities.</li>\r\n	<li><strong>Insurance costs:</strong> Incoterms outlines who bears the insurance costs.</li>\r\n</ol>\r\nThere are few important points that requires highlighting before we move any further.\r\n<ol>\r\n	<li>Arranging for the main transport does not mean the risk is with the arranging party. Seller may arrange for the main transportation even when the consignment is already delievered (that is risk has passed to buyer). In this case the risk has passed to the buyer and seller is just acting as the shipper without any risk to him.</li>\r\n	<li>Arranging for the insurance does not mean that risk is with the party arranging the insurance. In few of the INCOTERMS, seller arranges for insurance to cover buyer\'s risk. In these cases, seller is only required to cover minimum risk. Buyer must take more insurance to cover any extra risk that he wishes to insure against.</li>\r\n</ol>\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\"><img class=\"aligncenter size-full wp-image-1265\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\" alt=\"Incoterms\" width=\"750\" height=\"400\" /></a>\r\n\r\n&nbsp;\r\n\r\nThere are total 11 INCOTERMS defined by the ICC . The 11 INCOTERMS are based upon the consideration of least responsibility of the seller to least responsibility of the buyer. For example INCOTERM EXW (ex-work) considers least responsibilty for the seller. Same way INCOTERM DDP (Delievered duty paid) considers least responsibility for the buyer. We can say that all other nine INCOTERMS lies between these two extremes.\r\n\r\nOne last thing before we take the incoterms head on. Lets differentiate and group together each Incoterm. First on the basis of mode of transport that they are used and second based upon the point of delivery.\r\n\r\n<strong>Incoterms Based upon the Mode of transport.</strong>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\"><img class=\"aligncenter size-full wp-image-1269\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\" alt=\"Incoterms based upon mode of transport\" width=\"750\" height=\"330\" /></a>\r\n\r\n&nbsp;\r\n\r\nAs we can see, there are four Incoterms which are recommended only in sea or inland waterways transport. But Why ?  The answer lies in the format of these Incoterms that need the seller to have direct access to the vessel for loading.  We would clarify this when we discuss these Incoterms later.\r\n\r\n<strong>Incoterms groups based upon point of delivery</strong>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\"><img class=\"aligncenter size-full wp-image-1270\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\" alt=\"Incoterms based upon Point of delivery\" width=\"750\" height=\"300\" /></a>\r\n\r\n&nbsp;\r\n\r\nIncoterms can also be grouped  together in 4 categories based upon the point of delivery. In group \"E\" (Ex-works), the delivery point is seller\'s premises. In group \"F\" (FOB, FAS &amp; FCA), the delivery point is before or upto the main carrier, with main carried unpaid by seller. In group \"C\" (CFR, CIF, CPT &amp; CIP), the delivery point is upto and beyond the main carrier with carrier paid by seller. And finally in group \"D\" (DAP, DAT &amp; DDP), the delivery point is the final destination.\r\n\r\nNow that we are clear on some of the important points, lets jump into each of the incoterm.\r\n\r\n&nbsp;\r\n\r\n<strong>1. EXW (Ex-Works): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\"><img class=\"aligncenter size-full wp-image-1271\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\" alt=\"Ex Works\" width=\"750\" height=\"350\" /></a>\r\n\r\nWith Ex-works the seller has the least responsibility. Seller has the responsibility to deliver the goods to the buyer at seller\'s premises, depot or any other agreed places. From there on, all responsibility and risks are with the buyer. It means,\r\n<ol>\r\n	<li>The delivery point is seller\'s premises</li>\r\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\r\n	<li>buyer arranges for all modes of transport .</li>\r\n	<li>Buyer pays for the insurance</li>\r\n</ol>\r\nEx-works is often used while making quoting initial prices for sale contracts. In practice, this incoterm can have practical difficulties specially in cross border assignments. These difficulties may include buyer\'s inability to arrange for export formalities.\r\n\r\n<strong>2. Delievered duty paid (DDP): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delievered-Duty-paid.jpg\"><img class=\"size-full wp-image-1272\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delievered-Duty-paid.jpg\" alt=\"Delievered Duty paid\" width=\"750\" height=\"350\" /></a>\r\n\r\nDelievered duty paid is just the opposite of Ex-works. Seller has the most responsibility.  Seller has the responsibility to deliver the goods at buyer\'s premises, depot or any other place as agreed. It means that from seller\'s premises to buyer\'s premises or any other agreed place\r\n<ol>\r\n	<li>The delivery point is buyer\'s premises or other place agreed.</li>\r\n	<li>Seller handles the cargo and pays for export as well as import dues and</li>\r\n	<li>Seller arranges the transport of the cargo. Which also means that in case of sea transport, seller will be the shipper of the goods.</li>\r\n	<li>Seller pays for the insurance.</li>\r\n</ol>\r\nAs in Ex-works, DDP can also have practical difficulties in cross border assignments. In DDP, seller is responsible to clear the import formalities but the seller may not have the local knowledge &amp; expertise to clear import formalities.\r\n\r\n3. <strong>Free Carrier (FCA): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\"><img class=\"aligncenter size-full wp-image-1273\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\" alt=\"Free Carrier FCA\" width=\"750\" height=\"350\" /></a>\r\n\r\nFree carrier means the delivery point is carrier or other person nominated by the buyer at the seller\'s premises or other agreed place. If the agreed place is seller\'s premises, delivery takes place when the goods load on the truck. if the agreed place is not seller\'s premises then the delivery takes place when truck arrives at this place and is ready for unloading. In Free carrier (FCA),\r\n<ol>\r\n	<li>The delivery point is seller\'s premises or any other place agreed.</li>\r\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\r\n	<li>buyer arranges for all modes of transport</li>\r\n</ol>\r\n\"FCA seller\'s premises\" might look similar to Ex-works but there is one main difference. In FCA, seller has the obligation to load the goods on the carrier.\r\n\r\n<strong>4. Free Onboard (FOB):</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\"><img class=\"aligncenter size-full wp-image-1274\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\" alt=\"Free onboard FOB\" width=\"750\" height=\"350\" /></a>\r\n\r\nFree onboard means the seller delivers the shipment to the carrier nominated by the buyer. There is only a slight difference between FCA and FOB. One difference is the mode of transport. While FCA is applicable for multimodal transport, FOB is used only for sea transport. In FOB, the seller passes the risk to the buyer when shipment crosses ship\'s rail.  In FCA, the seller has the obligation to load the shipment on to the carrier arranged by buyer which is prior to the main carrier.\r\n\r\n<strong>5. Cost and Freight (CFR)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\"><img class=\"aligncenter size-full wp-image-1275\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\" alt=\"Cost &amp; Freight CFR\" width=\"750\" height=\"350\" /></a>\r\n\r\nBy cost and freight, it means while seller bears cost and freight of shipment to the destination but the risk is with the buyer. And that is also the main difference between CFR and FOB incoterms. In FOB, seller delivers the shipment and passes the risk to buyer when shipment crosses ship\'s rail. But, in CFR, he also pays for the costs and freight until the shipment reaches to the destination. This was exactly the point discussed earlier. Arranging for the transport does not mean that the risk is with the party arranging the transport. In this case, seller arranges the main transport (Seller is the shipper), but he has already delivered the shipment or passed the risk to the buyer upon shipment crossing th ship\'s rail.\r\n\r\n<strong>6. Cost , Insurance and Freight (CIF)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\"><img class=\"aligncenter size-full wp-image-1276\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\" alt=\"Cost, Insurance &amp; Freight CIF\" width=\"750\" height=\"350\" /></a>\r\n\r\nThere is only one but obvious difference between CFR and CIF and that is addition of Insurance. Seller passes the risk to the buyer when the shipment is loaded on the carrier. But the seller also arranges for the main carrier (Seller is the shipper). Apart from that seller also pays for the insurance for covering the buyer\'s risk during carriage of the shipment. As seller would be paying to cover the buyer\'s risk, he would offcourse wish to have least insurance just to cover his obligations. Buyer must take this into account and take extra insurance if he wish to.\r\n\r\n<strong>7. Free Alongside Ship (FAS)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\"><img class=\"aligncenter size-full wp-image-1277\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\" alt=\"Free Alongside Ship FAS\" width=\"750\" height=\"350\" /></a>\r\n\r\nAs simple as it sounds. The seller delivers the shipment to buyer when the goods are alongside ship. Risk passes from seller to buyer when the good are brought alongside the ship. Buyer arranges for the main carrier (Buyer is the shipper). Buyer pays for the all the insurance after this point.\r\n\r\n<strong>8. Carriage paid to (CPT)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n&nbsp;\r\n\r\nSeller pays for the carriage to bring the shipment at agreed place. Seller also arranges for the export formalities and costs.\r\n\r\n&nbsp;','','','inherit','open','open','','1264-revision-v1','','','2015-12-24 06:04:46','2015-12-24 06:04:46','',1264,'http://myseatime.com/blogadm/1264-revision-v1/',0,'revision','',0,0),(1279,1,'2015-12-24 06:05:07','2015-12-24 06:05:07','Incoterms Carriage paid to CPT','Carriage paid to CPT','','inherit','open','open','','carriage-paid-to-cpt','','','2015-12-24 06:05:22','2015-12-24 06:05:22','',1264,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg',0,'attachment','image/jpeg',0,0),(1280,1,'2015-12-24 06:18:44','2015-12-24 06:18:44','Incoterms Carriage & Insurance paid to CIP','Carriage & Insurance paid to CIP','','inherit','open','open','','carriage-insurance-paid-to-cip','','','2015-12-24 06:19:02','2015-12-24 06:19:02','',1264,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg',0,'attachment','image/jpeg',0,0),(1281,1,'2015-12-24 06:34:08','2015-12-24 06:34:08','Incoterms Delievered at place DAP','Delievered at place DAP','','inherit','open','open','','delievered-at-place-dap','','','2015-12-24 06:34:25','2015-12-24 06:34:25','',1264,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delievered-at-place-DAP.jpg',0,'attachment','image/jpeg',0,0),(1282,1,'2015-12-24 06:38:37','2015-12-24 06:38:37','Incoterms Delivered at place','Delivered at place','','inherit','open','open','','delivered-at-place','','','2015-12-24 06:38:56','2015-12-24 06:38:56','',1264,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg',0,'attachment','image/jpeg',0,0),(1283,1,'2015-12-24 06:51:22','2015-12-24 06:51:22','Incoterms Delivered at Terminal DAT','Delivered at Terminal DAT','','inherit','open','open','','delivered-at-terminal-dat','','','2015-12-24 06:51:36','2015-12-24 06:51:36','',1264,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT.jpg',0,'attachment','image/jpeg',0,0),(1284,1,'2015-12-24 06:54:42','2015-12-24 06:54:42','Incoterms Delivered at Terminal DAT','Delivered at Terminal DAT','','inherit','open','open','','delivered-at-terminal-dat-2','','','2015-12-24 06:54:56','2015-12-24 06:54:56','',1264,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg',0,'attachment','image/jpeg',0,0),(1285,1,'2015-12-24 07:01:03','2015-12-24 07:01:03','Incoterms Delivered Duty Paid DDP','Delivered Duty Paid DDP','','inherit','open','open','','delivered-duty-paid-ddp','','','2015-12-24 07:01:17','2015-12-24 07:01:17','',1264,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg',0,'attachment','image/jpeg',0,0),(1286,1,'2015-12-24 09:21:21','2015-12-24 09:21:21','Incoterms is the short form for International Commercial terms. These terms relates to the sales contract and are used worldwide. INCOTERMS were first introduced in 1936 by International chamber of Commerce (ICC). These Incoterms were revised several times, latest being Incoterms 2010.\r\n\r\n<strong>Why do we need INCOTERMS ?</strong>\r\n\r\nA cargo may move several days before it arrives at its destination. Even though shipping is safer these days, many cargoes still do not reach their destination or reach in bad shape. It is important for buyer and seller to pre-define the responsibilities and obligations for transport of the goods. INCOTERMS are all the possible ways of distributing responsibilities and obligations between two parties.\r\n\r\nThese responsibilities and obligations include\r\n<ol>\r\n	<li><strong>Point of delivery:</strong> Incoterms defines the point of delivery of the goods by seller to buyer. The meaning of delivery here is\"transfer of risk and responsibility\".</li>\r\n	<li><strong>Transportation Costs:</strong> Incoterms defines which party pays for the transportation cost. There may be more than one means of transportation and INCOTERMS defines who pays for which leg of the transportation. In case of sea transport, it also means which party will act as shipper of the cargo.</li>\r\n	<li><strong>Export and import formalities:</strong> Incoterms outlines which party arranges for export and import formalities.</li>\r\n	<li><strong>Insurance costs:</strong> Incoterms outlines who bears the insurance costs.</li>\r\n</ol>\r\nThere are few important points that requires highlighting before we move any further.\r\n<ol>\r\n	<li>Arranging for the main transport does not mean the risk is with the arranging party. Seller may arrange for the main transportation even when the consignment is already delivered (that is risk has passed to buyer). In this case the risk has passed to the buyer and seller is just acting as the shipper without any risk to him.</li>\r\n	<li>Arranging for the insurance does not mean that risk is with the party arranging the insurance. In few of the INCOTERMS, seller arranges for insurance to cover buyer\'s risk. In these cases, seller is only required to cover minimum risk. Buyer must take more insurance to cover any extra risk that he wishes to insure against.</li>\r\n</ol>\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\"><img class=\"aligncenter size-full wp-image-1265\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\" alt=\"Incoterms\" width=\"750\" height=\"400\" /></a>\r\n\r\nThere are total 11 INCOTERMS defined by the ICC . The 11 INCOTERMS are based upon the consideration of least responsibility of the seller to least responsibility of the buyer. For example INCOTERM EXW (ex-work) considers least responsibility for the seller. Same way INCOTERM DDP (Delivered duty paid) considers least responsibility for the buyer. We can say that all other nine INCOTERMS lies between these two extremes.\r\n\r\nOne last thing before we take the incoterms head on. Lets differentiate and group together each Incoterm. First on the basis of mode of transport that they are used and second based upon the point of delivery.\r\n\r\n<strong>Incoterms Based upon the Mode of transport.</strong>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\"><img class=\"aligncenter size-full wp-image-1269\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\" alt=\"Incoterms based upon mode of transport\" width=\"750\" height=\"330\" /></a>\r\n\r\nThe first group includes seven incoterms which can be used in any mode of transport. These can be used even when there is no sea transport used. Incoterms EXW, FCA, CPT, CIP, DAT, DAP and DDP belongs to this group. The second group includes four incoterms which are used in sea or inland waterways only. This is because in these incoterms the point of delivery and the destination place are both sea ports. Incoterms  FAS, FOB, CFR and CIF belongs to this second group.\r\n\r\n<strong>Incoterms groups based upon point of delivery</strong>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\"><img class=\"aligncenter size-full wp-image-1270\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\" alt=\"Incoterms based upon Point of delivery\" width=\"750\" height=\"300\" /></a>\r\n\r\nIncoterms can also be grouped  together in 4 categories based upon the point of delivery. In group \"E\" (Ex-works), the delivery point is seller\'s premises. In group \"F\" (FOB, FAS &amp; FCA), the delivery point is before or upto the main carrier, with main carried unpaid by seller. In group \"C\" (CFR, CIF, CPT &amp; CIP), the delivery point is upto and beyond the main carrier with carrier paid by seller. And finally in group \"D\" (DAP, DAT &amp; DDP), the delivery point is the final destination.\r\n\r\nNow that we are clear on some of the important points, lets jump into each of the incoterm.\r\n\r\n<strong>1. EXW (Ex-Works): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\"><img class=\"aligncenter size-full wp-image-1271\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\" alt=\"Ex Works\" width=\"750\" height=\"350\" /></a>\r\n\r\nWith Ex-works the seller has the least responsibility. Seller has the responsibility to deliver the goods to the buyer at seller\'s premises, depot or any other agreed places. From there on, all responsibility and risks are with the buyer. It means,\r\n<ol>\r\n	<li>The delivery point is seller\'s premises</li>\r\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\r\n	<li>buyer arranges for all modes of transport .</li>\r\n	<li>Buyer pays for the insurance</li>\r\n</ol>\r\nEx-works is often used while making quoting initial prices for sale contracts. In practice, this incoterm can have practical difficulties specially in cross border assignments. These difficulties may include buyer\'s inability to arrange for export formalities.\r\n\r\n<strong>2. Delivered duty paid (DDP): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg\"><img class=\"aligncenter size-full wp-image-1285\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg\" alt=\"Delivered Duty Paid DDP\" width=\"750\" height=\"350\" /></a>\r\n\r\nDelivered duty paid is just the opposite of Ex-works. Seller has the most responsibility.  Seller has the responsibility to deliver the goods at buyer\'s premises, depot or any other place as agreed. It means that from seller\'s premises to buyer\'s premises or any other agreed place\r\n<ol>\r\n	<li>The delivery point is buyer\'s premises or other place agreed.</li>\r\n	<li>Seller handles the cargo and pays for export as well as import dues and</li>\r\n	<li>Seller arranges the transport of the cargo. Which also means that in case of sea transport, seller will be the shipper of the goods.</li>\r\n	<li>Seller pays for the insurance.</li>\r\n</ol>\r\nAs in Ex-works, DDP can also have practical difficulties in cross border assignments. In DDP, seller is responsible to clear the import formalities but the seller may not have the local knowledge &amp; expertise to clear import formalities.\r\n\r\n3. <strong>Free Carrier (FCA): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\"><img class=\"aligncenter size-full wp-image-1273\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\" alt=\"Free Carrier FCA\" width=\"750\" height=\"350\" /></a>\r\n\r\nFree carrier means the delivery point is carrier or other person nominated by the buyer at the seller\'s premises or other agreed place. If the agreed place is seller\'s premises, delivery takes place when the goods load on the truck. if the agreed place is not seller\'s premises then the delivery takes place when truck arrives at this place and is ready for unloading. In Free carrier (FCA),\r\n<ol>\r\n	<li>The delivery point is seller\'s premises or any other place agreed.</li>\r\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\r\n	<li>buyer arranges for all modes of transport</li>\r\n</ol>\r\n\"FCA seller\'s premises\" might look similar to Ex-works but there is one main difference. In FCA, seller has the obligation to load the goods on the carrier.\r\n\r\n<strong>4. Free Onboard (FOB):</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\"><img class=\"aligncenter size-full wp-image-1274\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\" alt=\"Free onboard FOB\" width=\"750\" height=\"350\" /></a>\r\n\r\nFree onboard means the seller delivers the shipment to the carrier nominated by the buyer. There is only a slight difference between FCA and FOB. One difference is the mode of transport. While FCA is applicable for multimodal transport, FOB is used only for sea transport. In FOB, the seller passes the risk to the buyer when shipment crosses ship\'s rail.  In FCA, the seller has the obligation to load the shipment on to the carrier arranged by buyer which is prior to the main carrier.\r\n\r\n<strong>5. Cost and Freight (CFR)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\"><img class=\"aligncenter size-full wp-image-1275\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\" alt=\"Cost &amp; Freight CFR\" width=\"750\" height=\"350\" /></a>\r\n\r\nBy cost and freight, it means while seller bears cost and freight of shipment to the destination but the risk is with the buyer. And that is also the main difference between CFR and FOB incoterms. In FOB, seller delivers the shipment and passes the risk to buyer when shipment crosses ship\'s rail. But, in CFR, he also pays for the costs and freight until the shipment reaches to the destination. This was exactly the point discussed earlier. Arranging for the transport does not mean that the risk is with the party arranging the transport. In this case, seller arranges the main transport (Seller is the shipper), but he has already delivered the shipment or passed the risk to the buyer upon shipment crossing the ship\'s rail.\r\n\r\n<strong>6. Cost , Insurance and Freight (CIF)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\"><img class=\"aligncenter size-full wp-image-1276\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\" alt=\"Cost, Insurance &amp; Freight CIF\" width=\"750\" height=\"350\" /></a>\r\n\r\nThere is only one but obvious difference between CFR and CIF and that is addition of Insurance. Seller passes the risk to the buyer when the shipment is loaded on the carrier. But the seller also arranges for the main carrier (Seller is the shipper). Apart from that seller also pays for the insurance for covering the buyer\'s risk during carriage of the shipment. As seller would be paying to cover the buyer\'s risk, he would off course wish to have least insurance just to cover his obligations. Buyer must take this into account and take extra insurance if he wish to.\r\n\r\n<strong>7. Free Alongside Ship (FAS)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\"><img class=\"aligncenter size-full wp-image-1277\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\" alt=\"Free Alongside Ship FAS\" width=\"750\" height=\"350\" /></a>\r\n\r\nAs simple as it sounds. The seller delivers the shipment to buyer when the goods are alongside ship. Risk passes from seller to buyer when the good are brought alongside the ship. Buyer arranges for the main carrier (Buyer is the shipper). Buyer pays for the all the insurance after this point.\r\n\r\n<strong>8. Carriage paid to (CPT)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg\"><img class=\"aligncenter size-full wp-image-1279\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg\" alt=\"Carriage paid to CPT\" width=\"750\" height=\"350\" /></a>\r\n\r\nSeller pays for the main carriage to bring the shipment at agreed place. However the seller passes the risk to the buyer upon delivery to the main carrier. This is the point that we highlighted earlier. \"Arranging for the main transport does not mean the risk is with the arranging party\". Here even when the seller arranges for the main carrier, risk has already passed  to the buyer.\r\n\r\nBuyer also arranges for the insurance from the point of delivery.\r\n\r\n<strong>9. Carriage and insurance paid (CIP)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg\"><img class=\"aligncenter size-full wp-image-1280\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg\" alt=\"Carriage &amp; Insurance paid to CIP\" width=\"750\" height=\"350\" /></a>\r\n\r\nIn CIP, Seller delivers the goods and passes the risk to the buyer upon delivery to the main carrier. Seller arranges and pays for the main carrier (Seller is the shipper) to bring the shipment at agreed place. Seller also arranges for insurance on behalf of buyer to cover buyer\'s risk. The main difference between CPT and CIP is that the insurance is also paid by the seller. Again this point was highlighted earlier. \"arranging for the insurance does not mean that risk is with the party arranging the insurance\". Here Seller pays for the insurance but the risk is not with him. Seller arranges for the insurance to cover buyer\'s risk. Buyer must insure himself against any additional risk  he thinks need insuring against.\r\n\r\n<strong>10. Delivered at place (DAP)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg\"><img class=\"aligncenter size-full wp-image-1282\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg\" alt=\"Delivered at place\" width=\"750\" height=\"350\" /></a>\r\n\r\nDAP means seller delivers when shipment arrives at final destination, ready for unloading from the arriving mode of transport. Seller bears all the costs and risks in bringing the goods to this place.\r\n\r\n1) Seller handles export fees, carriage, insurance and destination port charges.\r\n\r\n2) Buyer handles import fees and unloading of goods.\r\n\r\n<strong>11. Delivered at terminal (DAT)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg\"><img class=\"aligncenter size-full wp-image-1284\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg\" alt=\"Delivered at Terminal DAT\" width=\"750\" height=\"350\" /></a>\r\n\r\nSeller delivers the shipment and passes the risk to the buyer when shipment is put at the disposal of buyer at the terminal of final destination. Seller handles export fees, carriage, insurance, destination port charges and unloading of the goods. The main difference between DAT and DAP is that in DAT, seller  handles the final unloading of the goods.\r\n\r\n<strong>Common Mistakes in using Incoterms </strong>\r\n\r\n1) Failure to include the precise place alongwith the destination.\r\n\r\nThe use of Incoterms need to specify the precise place. For example FCA Durban does not specify the precise location as Durban is a broad area. Incoterm must mention the exact location in Durban. For example, FCA Durban berth no 42.\r\n\r\n2)  Use of DDP incoterm without considering if the seller has the knowledge and expertise or if local regulations allows him to clear import formalities in buyer\'s country.\r\n\r\n3) Use of EXW incoterm without considering if the buyer has the knowledge and expertise or if local regulations allows him to clear export formalities in seller\'s country.\r\n\r\n4) Using \"sea or inland waterways\" incoterms for containesized goods. These four incoterms which are used for sea and inland waterways are not meant for containerised goods. These are actually meant for bulk cargoes and non- containerised goods. Use of these incoterms for containerised goods can put exporters at undue risk as the goods may have to wait several days before despatch.\r\n\r\n&nbsp;\r\n\r\n&nbsp;','','','inherit','open','open','','1264-revision-v1','','','2015-12-24 09:21:21','2015-12-24 09:21:21','',1264,'http://myseatime.com/blogadm/1264-revision-v1/',0,'revision','',0,0),(1287,1,'2015-12-24 09:25:03','2015-12-24 09:25:03','Incoterms is the short form for International Commercial terms. These terms relates to the sales contract and are used worldwide. INCOTERMS were first introduced in 1936 by International chamber of Commerce (ICC). These Incoterms were revised several times, latest being Incoterms 2010.\r\n\r\n<strong>Why do we need INCOTERMS ?</strong>\r\n\r\nA cargo may move several days before it arrives at its destination. Even though shipping is safer these days, many cargoes still do not reach their destination or reach in bad shape. It is important for buyer and seller to pre-define the responsibilities and obligations for transport of the goods. INCOTERMS are all the possible ways of distributing responsibilities and obligations between two parties.\r\n\r\nThese responsibilities and obligations include\r\n<ol>\r\n	<li><strong>Point of delivery:</strong> Incoterms defines the point of delivery of the goods by seller to buyer. The meaning of delivery here  is\"transfer of risk and responsibility\". So the INCOTERMS defines the point of change of hands (passing of risk) from seller to buyer.</li>\r\n	<li><strong>Transportation Costs:</strong> Incoterms defines which party pays for the transportation cost. There may be more than one means of transportation and INCOTERMS defines who pays for which leg of the transportation. In case of sea transport, it also means which party will act as shipper of the cargo.</li>\r\n	<li><strong>Export and import formalities:</strong> Incoterms outlines which party arranges for export and import formalities.</li>\r\n	<li><strong>Insurance costs:</strong> Incoterms outlines who bears the insurance costs.</li>\r\n</ol>\r\nThere are few important points that requires highlighting before we move any further.\r\n<ol>\r\n	<li>Arranging for the main transport does not mean the risk is with the arranging party. Seller may arrange for the main transportation even when the consignment is already delivered (that is risk has passed to buyer). In this case the risk has passed to the buyer and seller is just acting as the shipper without any risk to him.</li>\r\n	<li>Arranging for the insurance does not mean that risk is with the party arranging the insurance. In few of the INCOTERMS, seller arranges for insurance to cover buyer\'s risk. In these cases, seller is only required to cover minimum risk. Buyer must take more insurance to cover any extra risk that he wishes to insure against.</li>\r\n</ol>\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\"><img class=\"aligncenter size-full wp-image-1265\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\" alt=\"Incoterms\" width=\"750\" height=\"400\" /></a>\r\n\r\nThere are total 11 INCOTERMS defined by the ICC . The 11 INCOTERMS are based upon the consideration of least responsibility of the seller to least responsibility of the buyer. For example INCOTERM EXW (ex-work) considers least responsibility for the seller. Same way INCOTERM DDP (Delivered duty paid) considers least responsibility for the buyer. We can say that all other nine INCOTERMS lies between these two extremes.\r\n\r\nOne last thing before we take the incoterms head on. Lets differentiate and group together each Incoterm. First on the basis of mode of transport that they are used and second based upon the point of delivery.\r\n\r\n<strong>Incoterms Based upon the Mode of transport.</strong>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\"><img class=\"aligncenter size-full wp-image-1269\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\" alt=\"Incoterms based upon mode of transport\" width=\"750\" height=\"330\" /></a>\r\n\r\nThe first group includes seven incoterms which can be used in any mode of transport. These can be used even when there is no sea transport used. Incoterms EXW, FCA, CPT, CIP, DAT, DAP and DDP belongs to this group. The second group includes four incoterms which are used in sea or inland waterways only. This is because in these incoterms the point of delivery and the destination place are both sea ports. Incoterms  FAS, FOB, CFR and CIF belongs to this second group.\r\n\r\n<strong>Incoterms groups based upon point of delivery</strong>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\"><img class=\"aligncenter size-full wp-image-1270\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\" alt=\"Incoterms based upon Point of delivery\" width=\"750\" height=\"300\" /></a>\r\n\r\nIncoterms can also be grouped  together in 4 categories based upon the point of delivery. In group \"E\" (Ex-works), the delivery point is seller\'s premises. In group \"F\" (FOB, FAS &amp; FCA), the delivery point is before or upto the main carrier, with main carried unpaid by seller. In group \"C\" (CFR, CIF, CPT &amp; CIP), the delivery point is upto and beyond the main carrier with carrier paid by seller. And finally in group \"D\" (DAP, DAT &amp; DDP), the delivery point is the final destination.\r\n\r\nNow that we are clear on some of the important points, lets jump into each of the incoterm.\r\n\r\n<strong>1. EXW (Ex-Works): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\"><img class=\"aligncenter size-full wp-image-1271\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\" alt=\"Ex Works\" width=\"750\" height=\"350\" /></a>\r\n\r\nWith Ex-works the seller has the least responsibility. Seller has the responsibility to deliver the goods to the buyer at seller\'s premises, depot or any other agreed places. From there on, all responsibility and risks are with the buyer. It means,\r\n<ol>\r\n	<li>The delivery point is seller\'s premises</li>\r\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\r\n	<li>buyer arranges for all modes of transport .</li>\r\n	<li>Buyer pays for the insurance</li>\r\n</ol>\r\nEx-works is often used while making quoting initial prices for sale contracts. In practice, this incoterm can have practical difficulties specially in cross border assignments. These difficulties may include buyer\'s inability to arrange for export formalities.\r\n\r\n<strong>2. Delivered duty paid (DDP): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg\"><img class=\"aligncenter size-full wp-image-1285\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg\" alt=\"Delivered Duty Paid DDP\" width=\"750\" height=\"350\" /></a>\r\n\r\nDelivered duty paid is just the opposite of Ex-works. Seller has the most responsibility.  Seller has the responsibility to deliver the goods at buyer\'s premises, depot or any other place as agreed. It means that from seller\'s premises to buyer\'s premises or any other agreed place\r\n<ol>\r\n	<li>The delivery point is buyer\'s premises or other place agreed.</li>\r\n	<li>Seller handles the cargo and pays for export as well as import dues and</li>\r\n	<li>Seller arranges the transport of the cargo. Which also means that in case of sea transport, seller will be the shipper of the goods.</li>\r\n	<li>Seller pays for the insurance.</li>\r\n</ol>\r\nAs in Ex-works, DDP can also have practical difficulties in cross border assignments. In DDP, seller is responsible to clear the import formalities but the seller may not have the local knowledge &amp; expertise to clear import formalities.\r\n\r\n3. <strong>Free Carrier (FCA): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\"><img class=\"aligncenter size-full wp-image-1273\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\" alt=\"Free Carrier FCA\" width=\"750\" height=\"350\" /></a>\r\n\r\nFree carrier means the delivery point is carrier or other person nominated by the buyer at the seller\'s premises or other agreed place. If the agreed place is seller\'s premises, delivery takes place when the goods load on the truck. if the agreed place is not seller\'s premises then the delivery takes place when truck arrives at this place and is ready for unloading. In Free carrier (FCA),\r\n<ol>\r\n	<li>The delivery point is seller\'s premises or any other place agreed.</li>\r\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\r\n	<li>buyer arranges for all modes of transport</li>\r\n</ol>\r\n\"FCA seller\'s premises\" might look similar to Ex-works but there is one main difference. In FCA, seller has the obligation to load the goods on the carrier.\r\n\r\n<strong>4. Free Onboard (FOB):</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\"><img class=\"aligncenter size-full wp-image-1274\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\" alt=\"Free onboard FOB\" width=\"750\" height=\"350\" /></a>\r\n\r\nFree onboard means the seller delivers the shipment to the carrier nominated by the buyer. There is only a slight difference between FCA and FOB. One difference is the mode of transport. While FCA is applicable for multimodal transport, FOB is used only for sea transport. In FOB, the seller passes the risk to the buyer when shipment crosses ship\'s rail.  In FCA, the seller has the obligation to load the shipment on to the carrier arranged by buyer which is prior to the main carrier.\r\n\r\n<strong>5. Cost and Freight (CFR)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\"><img class=\"aligncenter size-full wp-image-1275\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\" alt=\"Cost &amp; Freight CFR\" width=\"750\" height=\"350\" /></a>\r\n\r\nBy cost and freight, it means while seller bears cost and freight of shipment to the destination but the risk is with the buyer. And that is also the main difference between CFR and FOB incoterms. In FOB, seller delivers the shipment and passes the risk to buyer when shipment crosses ship\'s rail. But, in CFR, he also pays for the costs and freight until the shipment reaches to the destination. This was exactly the point discussed earlier. Arranging for the transport does not mean that the risk is with the party arranging the transport. In this case, seller arranges the main transport (Seller is the shipper), but he has already delivered the shipment or passed the risk to the buyer upon shipment crossing the ship\'s rail.\r\n\r\n<strong>6. Cost , Insurance and Freight (CIF)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\"><img class=\"aligncenter size-full wp-image-1276\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\" alt=\"Cost, Insurance &amp; Freight CIF\" width=\"750\" height=\"350\" /></a>\r\n\r\nThere is only one but obvious difference between CFR and CIF and that is addition of Insurance. Seller passes the risk to the buyer when the shipment is loaded on the carrier. But the seller also arranges for the main carrier (Seller is the shipper). Apart from that seller also pays for the insurance for covering the buyer\'s risk during carriage of the shipment. As seller would be paying to cover the buyer\'s risk, he would off course wish to have least insurance just to cover his obligations. Buyer must take this into account and take extra insurance if he wish to.\r\n\r\n<strong>7. Free Alongside Ship (FAS)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\"><img class=\"aligncenter size-full wp-image-1277\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\" alt=\"Free Alongside Ship FAS\" width=\"750\" height=\"350\" /></a>\r\n\r\nAs simple as it sounds. The seller delivers the shipment to buyer when the goods are alongside ship. Risk passes from seller to buyer when the good are brought alongside the ship. Buyer arranges for the main carrier (Buyer is the shipper). Buyer pays for the all the insurance after this point.\r\n\r\n<strong>8. Carriage paid to (CPT)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg\"><img class=\"aligncenter size-full wp-image-1279\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg\" alt=\"Carriage paid to CPT\" width=\"750\" height=\"350\" /></a>\r\n\r\nSeller pays for the main carriage to bring the shipment at agreed place. However the seller passes the risk to the buyer upon delivery to the main carrier. This is the point that we highlighted earlier. \"Arranging for the main transport does not mean the risk is with the arranging party\". Here even when the seller arranges for the main carrier, risk has already passed  to the buyer.\r\n\r\nBuyer also arranges for the insurance from the point of delivery.\r\n\r\n<strong>9. Carriage and insurance paid (CIP)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg\"><img class=\"aligncenter size-full wp-image-1280\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg\" alt=\"Carriage &amp; Insurance paid to CIP\" width=\"750\" height=\"350\" /></a>\r\n\r\nIn CIP, Seller delivers the goods and passes the risk to the buyer upon delivery to the main carrier. Seller arranges and pays for the main carrier (Seller is the shipper) to bring the shipment at agreed place. Seller also arranges for insurance on behalf of buyer to cover buyer\'s risk. The main difference between CPT and CIP is that the insurance is also paid by the seller. Again this point was highlighted earlier. \"arranging for the insurance does not mean that risk is with the party arranging the insurance\". Here Seller pays for the insurance but the risk is not with him. Seller arranges for the insurance to cover buyer\'s risk. Buyer must insure himself against any additional risk  he thinks need insuring against.\r\n\r\n<strong>10. Delivered at place (DAP)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg\"><img class=\"aligncenter size-full wp-image-1282\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg\" alt=\"Delivered at place\" width=\"750\" height=\"350\" /></a>\r\n\r\nDAP means seller delivers when shipment arrives at final destination, ready for unloading from the arriving mode of transport. Seller bears all the costs and risks in bringing the goods to this place.\r\n\r\n1) Seller handles export fees, carriage, insurance and destination port charges.\r\n\r\n2) Buyer handles import fees and unloading of goods.\r\n\r\n<strong>11. Delivered at terminal (DAT)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg\"><img class=\"aligncenter size-full wp-image-1284\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg\" alt=\"Delivered at Terminal DAT\" width=\"750\" height=\"350\" /></a>\r\n\r\nSeller delivers the shipment and passes the risk to the buyer when shipment is put at the disposal of buyer at the terminal of final destination. Seller handles export fees, carriage, insurance, destination port charges and unloading of the goods. The main difference between DAT and DAP is that in DAT, seller  handles the final unloading of the goods.\r\n\r\n<strong>Common Mistakes in using Incoterms </strong>\r\n\r\n1) Failure to include the precise place alongwith the destination.\r\n\r\nThe use of Incoterms need to specify the precise place. For example FCA Durban does not specify the precise location as Durban is a broad area. Incoterm must mention the exact location in Durban. For example, FCA Durban berth no 42.\r\n\r\n2)  Use of DDP incoterm without considering if the seller has the knowledge and expertise or if local regulations allows him to clear import formalities in buyer\'s country.\r\n\r\n3) Use of EXW incoterm without considering if the buyer has the knowledge and expertise or if local regulations allows him to clear export formalities in seller\'s country.\r\n\r\n4) Using \"sea or inland waterways\" incoterms for containesized goods. These four incoterms which are used for sea and inland waterways are not meant for containerised goods. These are actually meant for bulk cargoes and non- containerised goods. Use of these incoterms for containerised goods can put exporters at undue risk as the goods may have to wait several days before despatch.\r\n\r\n&nbsp;\r\n\r\n&nbsp;','','','inherit','open','open','','1264-revision-v1','','','2015-12-24 09:25:03','2015-12-24 09:25:03','',1264,'http://myseatime.com/blogadm/1264-revision-v1/',0,'revision','',0,0),(1288,1,'2015-12-24 11:06:04','2015-12-24 11:06:04','Incoterms is the short form for International Commercial terms. These terms relates to the sales contract and are used worldwide. INCOTERMS were first introduced in 1936 by International chamber of Commerce (ICC). These Incoterms were revised several times, latest being Incoterms 2010.\r\n\r\n<strong>Why do we need INCOTERMS ?</strong>\r\n\r\nA cargo may move several days before it arrives at its destination. Even though shipping is safer these days, many cargoes still do not reach their destination or reach in bad shape. It is important for buyer and seller to pre-define the responsibilities and obligations for transport of the goods. INCOTERMS are all the possible ways of distributing responsibilities and obligations between two parties.\r\n\r\nThese responsibilities and obligations include\r\n<ol>\r\n	<li><strong>Point of delivery:</strong> Incoterms defines the point of delivery of the goods by seller to buyer. The meaning of delivery here  is\"transfer of risk and responsibility\". So the INCOTERMS defines the point of change of hands (passing of risk) from seller to buyer.</li>\r\n	<li><strong>Transportation Costs:</strong> Incoterms defines which party pays for the transportation cost. There may be more than one means of transportation and INCOTERMS defines who pays for which leg of the transportation. In case of sea transport, it also means which party will act as shipper of the cargo.</li>\r\n	<li><strong>Export and import formalities:</strong> Incoterms outlines which party arranges for export and import formalities.</li>\r\n	<li><strong>Insurance costs:</strong> Incoterms outlines who bears the insurance costs.</li>\r\n</ol>\r\nThere are few important points that requires highlighting before we move any further.\r\n<ol>\r\n	<li>Arranging for the main transport does not mean the risk is with the arranging party. Seller may arrange for the main transportation even when the consignment is already delivered (that is risk has passed to buyer). In this case the risk has passed to the buyer and seller is just acting as the shipper without any risk to him.</li>\r\n	<li>Arranging for the insurance does not mean that risk is with the party arranging the insurance. In few of the INCOTERMS, seller arranges for insurance to cover buyer\'s risk. In these cases, seller is only required to cover minimum risk. Buyer must take more insurance to cover any extra risk that he wishes to insure against.</li>\r\n</ol>\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\"><img class=\"aligncenter size-full wp-image-1265\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\" alt=\"Incoterms\" width=\"750\" height=\"400\" /></a>\r\n\r\nThere are total 11 INCOTERMS defined by the ICC . The 11 INCOTERMS are based upon the consideration of least responsibility of the seller to least responsibility of the buyer. For example INCOTERM EXW (ex-work) considers least responsibilty for the seller. Same way INCOTERM DDP (Delievered duty paid) considers least responsibility for the buyer. We can say that all other nine INCOTERMS lies between these two extremes.\r\n\r\nOne last thing before we take the incoterms head on. Lets differentiate and group together each Incoterm. First on the basis of mode of transport that they are used and second based upon the point of delivery.\r\n\r\n<strong style=\"line-height: 1.5;\">Incoterms Based upon the Mode of transport.</strong>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\"><img class=\"aligncenter size-full wp-image-1269\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\" alt=\"Incoterms based upon mode of transport\" width=\"750\" height=\"330\" /></a>\r\n\r\nThe first group includes seven incoterms which can be used in any mode of transport. These can be used even when there is no sea transport used. Incoterms EXW, FCA, CPT, CIP, DAT, DAP and DDP belongs to this group. The second group includes four incoterms which are used in sea or inland waterways only. This is because in these incoterms the point of delivery and the destination place are both sea ports. Incoterms  FAS, FOB, CFR and CIF belongs to this second group.\r\n\r\n<strong>Incoterms groups based upon point of delivery</strong>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\"><img class=\"aligncenter size-full wp-image-1270\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\" alt=\"Incoterms based upon Point of delivery\" width=\"750\" height=\"300\" /></a>\r\n\r\nIncoterms can also be grouped  together in 4 categories based upon the point of delivery. In group \"E\" (Ex-works), the delivery point is seller\'s premises. In group \"F\" (FOB, FAS &amp; FCA), the delivery point is before or upto the main carrier, with main carried unpaid by seller. In group \"C\" (CFR, CIF, CPT &amp; CIP), the delivery point is upto and beyond the main carrier with carrier paid by seller. And finally in group \"D\" (DAP, DAT &amp; DDP), the delivery point is the final destination.\r\n\r\nNow that we are clear on some of the important points, lets jump into each of the incoterm.\r\n\r\n<strong>1. EXW (Ex-Works): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\"><img class=\"aligncenter size-full wp-image-1271\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\" alt=\"Ex Works\" width=\"750\" height=\"350\" /></a>\r\n\r\nWith Ex-works the seller has the least responsibility. Seller has the responsibility to deliver the goods to the buyer at seller\'s premises, depot or any other agreed places. From there on, all responsibility and risks are with the buyer. It means,\r\n<ol>\r\n	<li>The delivery point is seller\'s premises</li>\r\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\r\n	<li>buyer arranges for all modes of transport .</li>\r\n	<li>Buyer pays for the insurance</li>\r\n</ol>\r\nEx-works is often used while making quoting initial prices for sale contracts. In practice, this incoterm can have practical difficulties specially in cross border assignments. These difficulties may include buyer\'s inability to arrange for export formalities.\r\n\r\n<strong>2. Delivered duty paid (DDP): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg\"><img class=\"aligncenter size-full wp-image-1285\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg\" alt=\"Delivered Duty Paid DDP\" width=\"750\" height=\"350\" /></a>\r\n\r\nDelivered duty paid is just the opposite of Ex-works. Seller has the most responsibility.  Seller has the responsibility to deliver the goods at buyer\'s premises, depot or any other place as agreed. It means that from seller\'s premises to buyer\'s premises or any other agreed place\r\n<ol>\r\n	<li>The delivery point is buyer\'s premises or other place agreed.</li>\r\n	<li>Seller handles the cargo and pays for export as well as import dues and</li>\r\n	<li>Seller arranges the transport of the cargo. Which also means that in case of sea transport, seller will be the shipper of the goods.</li>\r\n	<li>Seller pays for the insurance.</li>\r\n</ol>\r\nAs in Ex-works, DDP can also have practical difficulties in cross border assignments. In DDP, seller is responsible to clear the import formalities but the seller may not have the local knowledge &amp; expertise to clear import formalities.\r\n\r\n3. <strong>Free Carrier (FCA): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\"><img class=\"aligncenter size-full wp-image-1273\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\" alt=\"Free Carrier FCA\" width=\"750\" height=\"350\" /></a>\r\n\r\nFree carrier means the delivery point is carrier or other person nominated by the buyer at the seller\'s premises or other agreed place. If the agreed place is seller\'s premises, delivery takes place when the goods load on the truck. If the agreed place is not seller\'s premises then the delivery takes place when truck arrives at this place and is ready for unloading. In Free carrier (FCA),\r\n<ol>\r\n	<li>The delivery point is seller\'s premises or any other place agreed.</li>\r\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\r\n	<li>buyer arranges for all modes of transport</li>\r\n</ol>\r\n\"FCA seller\'s premises\" might look similar to Ex-works but there is one main difference. In FCA, seller has the obligation to load the goods on the carrier.\r\n\r\n<strong style=\"line-height: 1.5;\">4. Free Onboard (FOB):</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\"><img class=\"aligncenter size-full wp-image-1274\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\" alt=\"Free onboard FOB\" width=\"750\" height=\"350\" /></a>\r\n\r\nFree onboard means the seller delivers the shipment to the carrier nominated by the buyer. There is only a slight difference between FCA and FOB. One difference is the mode of transport. While FCA is applicable for multimodal transport, FOB is used only for sea transport. In FOB, the seller passes the risk to the buyer when shipment crosses ship\'s rail.  In FCA, the seller has the obligation to load the shipment on to the carrier arranged by buyer which is prior to the main carrier.\r\n\r\n<strong>5. Cost and Freight (CFR)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\"><img class=\"aligncenter size-full wp-image-1275\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\" alt=\"Cost &amp; Freight CFR\" width=\"750\" height=\"350\" /></a>\r\n\r\nBy cost and freight, it means while seller bears cost and freight of shipment to the destination but the risk is with the buyer. And that is also the main difference between CFR and FOB incoterms. In FOB, seller delivers the shipment and passes the risk to buyer when shipment crosses ship\'s rail. But, in CFR, he also pays for the costs and freight until the shipment reaches to the destination. This was exactly the point discussed earlier. Arranging for the transport does not mean that the risk is with the party arranging the transport. In this case, seller arranges the main transport (Seller is the shipper), but he has already delivered the shipment or passed the risk to the buyer upon shipment crossing th ship\'s rail.\r\n\r\n<strong>6. Cost , Insurance and Freight (CIF)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\"><img class=\"aligncenter size-full wp-image-1276\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\" alt=\"Cost, Insurance &amp; Freight CIF\" width=\"750\" height=\"350\" /></a>\r\n\r\nThere is only one but obvious difference between CFR and CIF and that is addition of Insurance. Seller passes the risk to the buyer when the shipment is loaded on the carrier. But the seller also arranges for the main carrier (Seller is the shipper). Apart from that seller also pays for the insurance for covering the buyer\'s risk during carriage of the shipment. As seller would be paying to cover the buyer\'s risk, he would offcourse wish to have least insurance just to cover his obligations. Buyer must take this into account and take extra insurance if he wish to.\r\n\r\n<strong>7. Free Alongside Ship (FAS)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\"><img class=\"aligncenter size-full wp-image-1277\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\" alt=\"Free Alongside Ship FAS\" width=\"750\" height=\"350\" /></a>\r\n\r\nAs simple as it sounds. The seller delivers the shipment to buyer when the goods are alongside ship. Risk passes from seller to buyer when the good are brought alongside the ship. Buyer arranges for the main carrier (Buyer is the shipper). Buyer pays for the all the insurance after this point.\r\n\r\n<strong>8. Carriage paid to (CPT)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg\"><img class=\"aligncenter size-full wp-image-1279\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg\" alt=\"Carriage paid to CPT\" width=\"750\" height=\"350\" /></a>\r\n\r\nSeller pays for the main carriage to bring the shipment at agreed place. However the seller passes the risk to the buyer upon delivery to the main carrier. This is the point that we highlighted earlier. \"Arranging for the main transport does not mean the risk is with the arranging party\". Here even when the seller arranges for the main carrier, risk has already passed  to the buyer.\r\n\r\nBuyer also arranges for the insurance from the point of delivery.\r\n\r\n<strong>9. Carriage and insurance paid (CIP)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg\"><img class=\"aligncenter size-full wp-image-1280\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg\" alt=\"Carriage &amp; Insurance paid to CIP\" width=\"750\" height=\"350\" /></a>\r\n\r\nIn CIP, Seller delivers the goods and passes the risk to the buyer upon delivery to the main carrier. Seller arranges and pays for the main carrier (Seller is the shipper) to bring the shipment at agreed place. Seller also arranges for insurance on behalf of buyer to cover buyer\'s risk. The main difference between CPT and CIP is that the insurance is also paid by the seller. Again this point was highlighted earlier. \"arranging for the insurance does not mean that risk is with the party arranging the insurance\". Here Seller pays for the insurance but the risk is not with him. Seller arranges for the insurance to cover buyer\'s risk. Buyer must insure himself against any additional risk  he thinks need insuring against.\r\n\r\n<strong>10. Delivered at place (DAP)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg\"><img class=\"aligncenter size-full wp-image-1282\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg\" alt=\"Delivered at place\" width=\"750\" height=\"350\" /></a>\r\n\r\nDAP means seller delievers when shipment arrives at final destination, ready for unloading from the arriving mode of transport. Seller bears all the costs and risks in bringing the goods to this place.\r\n\r\n1) Seller handles export fees, carriage, insurance and destination port charges.\r\n\r\n2) Buyer handles import fees and unloading of goods.\r\n\r\n<strong>11. Delivered at terminal (DAT)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg\"><img class=\"aligncenter size-full wp-image-1284\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg\" alt=\"Delivered at Terminal DAT\" width=\"750\" height=\"350\" /></a>\r\n\r\nSeller delivers the shipment and passes the risk to the buyer when shipment is put at the disposal of buyer at the terminal of final destination. Seller handles export fees, carriage, insurance, destination port charges and unloading of the goods. The main difference between DAT and DAP is that in DAT, seller  handles the final unloading of the goods.\r\n\r\n<strong>Common Mistakes in using Incoterms </strong>\r\n\r\n1) Failure to include the precise place alongwith the destination.\r\n\r\nThe use of Incoterms need to specify the precise place. For example FCA Durban does not specify the precise location as Durban is a broad area. Incoterm must mention the exact location in Durban. For example, FCA Durban berth no 42.\r\n\r\n2)  Use of DDP incoterm without considering if the seller has the knowledge and expertise or if local regulations allows him to clear import formalities in buyer\'s country.\r\n\r\n3) Use of EXW incoterm without considering if the buyer has the knowledge and expertise or if local regulations allows him to clear export formalities in seller\'s country.\r\n\r\n4) Using \"sea or inland waterways\" incoterms for containerized goods. These four incoterms which are used for sea and inland waterways are not meant for containerized goods. These are actually meant for bulk cargoes and non- containerized goods. Use of these incoterms for containerized goods can put exporters at undue risk as the goods may have to wait several days before despatch.\r\n\r\n&nbsp;\r\n\r\n&nbsp;','','','inherit','open','open','','1264-revision-v1','','','2015-12-24 11:06:04','2015-12-24 11:06:04','',1264,'http://myseatime.com/blogadm/1264-revision-v1/',0,'revision','',0,0),(1289,1,'2015-12-25 06:02:24','2015-12-25 06:02:24','Incoterms is the short form for International Commercial terms. These terms relates to the sales contract and are used worldwide. INCOTERMS were first introduced in 1936 by International chamber of Commerce (ICC). These Incoterms were revised several times, latest being Incoterms 2010.\r\n\r\n<strong>Why do we need INCOTERMS ?</strong>\r\n\r\nA cargo may move several days before it arrives at its destination. Even though shipping is safer these days, many cargoes still do not reach their destination or reach in bad shape. It is important for buyer and seller to pre-define the responsibilities and obligations for transport of the goods. INCOTERMS are all the possible ways of distributing responsibilities and obligations between two parties.\r\n\r\nThese responsibilities and obligations include\r\n<ol>\r\n	<li><strong>Point of delivery:</strong> Incoterms defines the point of delivery of the goods by seller to buyer. The meaning of delivery here  is\"transfer of risk and responsibility\". So the INCOTERMS defines the point of change of hands (passing of risk) from seller to buyer.</li>\r\n	<li><strong>Transportation Costs:</strong> Incoterms defines which party pays for the transportation cost. There may be more than one means of transportation and INCOTERMS defines who pays for which leg of the transportation. In case of sea transport, it also means which party will act as shipper of the cargo.</li>\r\n	<li><strong>Export and import formalities:</strong> Incoterms outlines which party arranges for export and import formalities.</li>\r\n	<li><strong>Insurance costs:</strong> Incoterms outlines who bears the insurance costs.</li>\r\n</ol>\r\nThere are few important points that requires highlighting before we move any further.\r\n<ol>\r\n	<li>Arranging for the main transport does not mean the risk is with the arranging party. Seller may arrange for the main transportation even when the consignment is already delivered (that is risk has passed to buyer). In this case the risk has passed to the buyer and seller is just acting as the shipper without any risk to him.</li>\r\n	<li>Arranging for the insurance does not mean that risk is with the party arranging the insurance. In few of the INCOTERMS, seller arranges for insurance to cover buyer\'s risk. In these cases, seller is only required to cover minimum risk. Buyer must take more insurance to cover any extra risk that he wishes to insure against.</li>\r\n</ol>\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\"><img class=\"aligncenter size-full wp-image-1265\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\" alt=\"Incoterms\" width=\"750\" height=\"400\" /></a>\r\n\r\nThere are total 11 INCOTERMS defined by the ICC . The 11 INCOTERMS are based upon the consideration of least responsibility of the seller to least responsibility of the buyer. For example INCOTERM EXW (ex-work) considers least responsibilty for the seller. Same way INCOTERM DDP (Delievered duty paid) considers least responsibility for the buyer. We can say that all other nine INCOTERMS lies between these two extremes.\r\n\r\nOne last thing before we take the incoterms head on. Lets differentiate and group together each Incoterm. First on the basis of mode of transport that they are used and second based upon the point of delivery.\r\n\r\n<strong style=\"line-height: 1.5;\">Incoterms Based upon the Mode of transport.</strong>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\"><img class=\"aligncenter size-full wp-image-1269\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\" alt=\"Incoterms based upon mode of transport\" width=\"750\" height=\"330\" /></a>\r\n\r\nThe first group includes seven incoterms which can be used in any mode of transport. These can be used even when there is no sea transport used. Incoterms EXW, FCA, CPT, CIP, DAT, DAP and DDP belongs to this group. The second group includes four incoterms which are used in sea or inland waterways only. This is because in these incoterms the point of delivery and the destination place are both sea ports. Incoterms  FAS, FOB, CFR and CIF belongs to this second group.\r\n\r\n<strong>Incoterms groups based upon point of delivery</strong>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\"><img class=\"aligncenter size-full wp-image-1270\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\" alt=\"Incoterms based upon Point of delivery\" width=\"750\" height=\"300\" /></a>\r\n\r\nIncoterms can also be grouped  together in 4 categories based upon the point of delivery. In group \"E\" (Ex-works), the delivery point is seller\'s premises. In group \"F\" (FOB, FAS &amp; FCA), the delivery point is before or upto the main carrier, with main carried unpaid by seller. In group \"C\" (CFR, CIF, CPT &amp; CIP), the delivery point is upto and beyond the main carrier with carrier paid by seller. And finally in group \"D\" (DAP, DAT &amp; DDP), the delivery point is the final destination.\r\n\r\nNow that we are clear on some of the important points, lets jump into each of the incoterm.\r\n\r\n<strong>1. EXW (Ex-Works): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\"><img class=\"aligncenter size-full wp-image-1271\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\" alt=\"Ex Works\" width=\"750\" height=\"350\" /></a>\r\n\r\nWith Ex-works the seller has the least responsibility. Seller has the responsibility to deliver the goods to the buyer at seller\'s premises, depot or any other agreed places. From there on, all responsibility and risks are with the buyer. It means,\r\n<ol>\r\n	<li>The delivery point is seller\'s premises</li>\r\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\r\n	<li>buyer arranges for all modes of transport .</li>\r\n	<li>Buyer pays for the insurance</li>\r\n</ol>\r\nEx-works is often used while making quoting initial prices for sale contracts. In practice, this incoterm can have practical difficulties specially in cross border assignments. These difficulties may include buyer\'s inability to arrange for export formalities.\r\n\r\n<strong>2. Delivered duty paid (DDP): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg\"><img class=\"aligncenter size-full wp-image-1285\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg\" alt=\"Delivered Duty Paid DDP\" width=\"750\" height=\"350\" /></a>\r\n\r\nDelivered duty paid is just the opposite of Ex-works. Seller has the most responsibility.  Seller has the responsibility to deliver the goods at buyer\'s premises, depot or any other place as agreed. It means that from seller\'s premises to buyer\'s premises or any other agreed place\r\n<ol>\r\n	<li>The delivery point is buyer\'s premises or other place agreed.</li>\r\n	<li>Seller handles the cargo and pays for export as well as import dues and</li>\r\n	<li>Seller arranges the transport of the cargo. Which also means that in case of sea transport, seller will be the shipper of the goods.</li>\r\n	<li>Seller pays for the insurance.</li>\r\n</ol>\r\nAs in Ex-works, DDP can also have practical difficulties in cross border assignments. In DDP, seller is responsible to clear the import formalities but the seller may not have the local knowledge &amp; expertise to clear import formalities.\r\n\r\n3. <strong>Free Carrier (FCA): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\"><img class=\"aligncenter size-full wp-image-1273\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\" alt=\"Free Carrier FCA\" width=\"750\" height=\"350\" /></a>\r\n\r\nFree carrier means the delivery point is carrier or other person nominated by the buyer at the seller\'s premises or other agreed place. If the agreed place is seller\'s premises, delivery takes place when the goods load on the truck. If the agreed place is not seller\'s premises then the delivery takes place when truck arrives at this place and is ready for unloading. In Free carrier (FCA),\r\n<ol>\r\n	<li>The delivery point is seller\'s premises or any other place agreed.</li>\r\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\r\n	<li>buyer arranges for all modes of transport</li>\r\n</ol>\r\nIn FCA incoterm, the agreed place has implications on the loading of the carrier. If the agreed place is seller\'s premises then seller handles the loading. If the agreed place is other than seller\'s premises, then seller has delivered the goods once the carrier arrives at the agreed place.\r\n\r\n\"FCA seller\'s premises\" might look similar to Ex-works but there is one main difference. In FCA, seller has the obligation to load the goods on the carrier.\r\n\r\n<strong style=\"line-height: 1.5;\">4. Free Onboard (FOB):</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\"><img class=\"aligncenter size-full wp-image-1274\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\" alt=\"Free onboard FOB\" width=\"750\" height=\"350\" /></a>\r\n\r\nFree onboard means the seller delivers the shipment to the carrier nominated by the buyer. There is only a slight difference between FCA and FOB. One difference is the mode of transport. While FCA is applicable for multimodal transport, FOB is used only for sea transport. In FOB, the seller passes the risk to the buyer when shipment crosses ship\'s rail.  In FCA, the seller has the obligation to load the shipment on to the carrier arranged by buyer which is prior to the main carrier.\r\n\r\n<strong>5. Cost and Freight (CFR)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\"><img class=\"aligncenter size-full wp-image-1275\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\" alt=\"Cost &amp; Freight CFR\" width=\"750\" height=\"350\" /></a>\r\n\r\nBy cost and freight, it means while seller bears cost and freight of shipment to the destination but the risk is with the buyer. And that is also the main difference between CFR and FOB incoterms. In FOB, seller delivers the shipment and passes the risk to buyer when shipment crosses ship\'s rail. But, in CFR, he also pays for the costs and freight until the shipment reaches to the destination. This was exactly the point discussed earlier. Arranging for the transport does not mean that the risk is with the party arranging the transport. In this case, seller arranges the main transport (Seller is the shipper), but he has already delivered the shipment or passed the risk to the buyer upon shipment crossing th ship\'s rail.\r\n\r\n<strong>6. Cost , Insurance and Freight (CIF)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\"><img class=\"aligncenter size-full wp-image-1276\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\" alt=\"Cost, Insurance &amp; Freight CIF\" width=\"750\" height=\"350\" /></a>\r\n\r\nThere is only one but obvious difference between CFR and CIF and that is addition of Insurance. Seller passes the risk to the buyer when the shipment is loaded on the carrier. But the seller also arranges for the main carrier (Seller is the shipper). Apart from that seller also pays for the insurance for covering the buyer\'s risk during carriage of the shipment. As seller would be paying to cover the buyer\'s risk, he would offcourse wish to have least insurance just to cover his obligations. Buyer must take this into account and take extra insurance if he wish to.\r\n\r\n<strong>7. Free Alongside Ship (FAS)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\"><img class=\"aligncenter size-full wp-image-1277\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\" alt=\"Free Alongside Ship FAS\" width=\"750\" height=\"350\" /></a>\r\n\r\nAs simple as it sounds. The seller delivers the shipment to buyer when the goods are alongside ship. Risk passes from seller to buyer when the good are brought alongside the ship. Buyer arranges for the main carrier (Buyer is the shipper). Buyer pays for the all the insurance after this point.\r\n\r\n<strong>8. Carriage paid to (CPT)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg\"><img class=\"aligncenter size-full wp-image-1279\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg\" alt=\"Carriage paid to CPT\" width=\"750\" height=\"350\" /></a>\r\n\r\nSeller pays for the main carriage to bring the shipment at agreed place. However the seller passes the risk to the buyer upon delivery to the main carrier. This is the point that we highlighted earlier. \"Arranging for the main transport does not mean the risk is with the arranging party\". Here even when the seller arranges for the main carrier, risk has already passed  to the buyer.\r\n\r\nBuyer also arranges for the insurance from the point of delivery.\r\n\r\n<strong>9. Carriage and insurance paid (CIP)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg\"><img class=\"aligncenter size-full wp-image-1280\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg\" alt=\"Carriage &amp; Insurance paid to CIP\" width=\"750\" height=\"350\" /></a>\r\n\r\nIn CIP, Seller delivers the goods and passes the risk to the buyer upon delivery to the main carrier. Seller arranges and pays for the main carrier (Seller is the shipper) to bring the shipment at agreed place. Seller also arranges for insurance on behalf of buyer to cover buyer\'s risk. The main difference between CPT and CIP is that the insurance is also paid by the seller. Again this point was highlighted earlier. \"arranging for the insurance does not mean that risk is with the party arranging the insurance\". Here Seller pays for the insurance but the risk is not with him. Seller arranges for the insurance to cover buyer\'s risk. Buyer must insure himself against any additional risk  he thinks need insuring against.\r\n\r\n<strong>10. Delivered at place (DAP)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg\"><img class=\"aligncenter size-full wp-image-1282\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg\" alt=\"Delivered at place\" width=\"750\" height=\"350\" /></a>\r\n\r\nDAP means seller delievers when shipment arrives at final destination, ready for unloading from the arriving mode of transport. Seller bears all the costs and risks in bringing the goods to this place.\r\n\r\n1) Seller handles export fees, carriage, insurance and destination port charges.\r\n\r\n2) Buyer handles import fees and unloading of goods.\r\n\r\n<strong>11. Delivered at terminal (DAT)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg\"><img class=\"aligncenter size-full wp-image-1284\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg\" alt=\"Delivered at Terminal DAT\" width=\"750\" height=\"350\" /></a>\r\n\r\nSeller delivers the shipment and passes the risk to the buyer when shipment is put at the disposal of buyer at the terminal of final destination. Seller handles export fees, carriage, insurance, destination port charges and unloading of the goods. The main difference between DAT and DAP is that in DAT, seller  handles the final unloading of the goods.\r\n\r\n<strong>Common Mistakes in using Incoterms </strong>\r\n\r\n1) Failure to include the precise place alongwith the destination.\r\n\r\nThe use of Incoterms need to specify the precise place. For example FCA Durban does not specify the precise location as Durban is a broad area. Incoterm must mention the exact location in Durban. For example, FCA Durban berth no 42.\r\n\r\n2)  Use of DDP incoterm without considering if the seller has the knowledge and expertise or if local regulations allows him to clear import formalities in buyer\'s country.\r\n\r\n3) Use of EXW incoterm without considering if the buyer has the knowledge and expertise or if local regulations allows him to clear export formalities in seller\'s country.\r\n\r\n4) Using \"sea or inland waterways\" incoterms for containerized goods. These four incoterms which are used for sea and inland waterways are not meant for containerized goods. These are actually meant for bulk cargoes and non- containerized goods. Use of these incoterms for containerized goods can put exporters at undue risk as the goods may have to wait several days before despatch.\r\n\r\n&nbsp;\r\n\r\n&nbsp;','','','inherit','open','open','','1264-revision-v1','','','2015-12-25 06:02:24','2015-12-25 06:02:24','',1264,'http://myseatime.com/blogadm/1264-revision-v1/',0,'revision','',0,0),(1290,1,'2015-12-25 06:08:58','2015-12-25 06:08:58','Incoterms is the short form for International Commercial terms. These terms relates to the sales contract and are used worldwide. INCOTERMS were first introduced in 1936 by International chamber of Commerce (ICC). These Incoterms were revised several times, latest being Incoterms 2010.\r\n\r\n<strong>Why do we need INCOTERMS ?</strong>\r\n\r\nA cargo may move several days before it arrives at its destination. Even though shipping is safer these days, many cargoes still do not reach their destination or reach in bad shape. It is important for buyer and seller to pre-define the responsibilities and obligations for transport of the goods. INCOTERMS are all the possible ways of distributing responsibilities and obligations between two parties.\r\n\r\nThese responsibilities and obligations include\r\n<ol>\r\n	<li><strong>Point of delivery:</strong> Incoterms defines the point of delivery of the goods by seller to buyer. The meaning of delivery here  is\"transfer of risk and responsibility\". So the INCOTERMS defines the point of change of hands (passing of risk) from seller to buyer.</li>\r\n	<li><strong>Transportation Costs:</strong> Incoterms defines which party pays for the transportation cost. There may be more than one means of transportation and INCOTERMS defines who pays for which leg of the transportation. In case of sea transport, it also means which party will act as shipper of the cargo.</li>\r\n	<li><strong>Export and import formalities:</strong> Incoterms outlines which party arranges for export and import formalities.</li>\r\n	<li><strong>Insurance costs:</strong> Incoterms outlines who bears the insurance costs.</li>\r\n</ol>\r\nThere are few important points that requires highlighting before we move any further.\r\n<ol>\r\n	<li>Arranging for the main transport does not mean the risk is with the arranging party. Seller may arrange for the main transportation even when the consignment is already delivered (that is risk has passed to buyer). In this case the risk has passed to the buyer and seller is just acting as the shipper without any risk to him.</li>\r\n	<li>Arranging for the insurance does not mean that risk is with the party arranging the insurance. In few of the INCOTERMS, seller arranges for insurance to cover buyer\'s risk. In these cases, seller is only required to cover minimum risk. Buyer must take more insurance to cover any extra risk that he wishes to insure against.</li>\r\n</ol>\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\"><img class=\"aligncenter size-full wp-image-1265\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\" alt=\"Incoterms\" width=\"750\" height=\"400\" /></a>\r\n\r\nThere are total 11 INCOTERMS defined by the ICC . The 11 INCOTERMS are based upon the consideration of least responsibility of the seller to least responsibility of the buyer. For example INCOTERM EXW (ex-work) considers least responsibilty for the seller. Same way INCOTERM DDP (Delievered duty paid) considers least responsibility for the buyer. We can say that all other nine INCOTERMS lies between these two extremes.\r\n\r\nOne last thing before we take the incoterms head on. Lets differentiate and group together each Incoterm. First on the basis of mode of transport that they are used and second based upon the point of delivery.\r\n\r\n<strong style=\"line-height: 1.5;\">Incoterms Based upon the Mode of transport.</strong>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\"><img class=\"aligncenter size-full wp-image-1269\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\" alt=\"Incoterms based upon mode of transport\" width=\"750\" height=\"330\" /></a>\r\n\r\nThe first group includes seven incoterms which can be used in any mode of transport. These can be used even when there is no sea transport used. Incoterms EXW, FCA, CPT, CIP, DAT, DAP and DDP belongs to this group. The second group includes four incoterms which are used in sea or inland waterways only. This is because in these incoterms the point of delivery and the destination place are both sea ports. Incoterms  FAS, FOB, CFR and CIF belongs to this second group.\r\n\r\n<strong>Incoterms groups based upon point of delivery</strong>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\"><img class=\"aligncenter size-full wp-image-1270\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\" alt=\"Incoterms based upon Point of delivery\" width=\"750\" height=\"300\" /></a>\r\n\r\nIncoterms can also be grouped  together in 4 categories based upon the point of delivery. In group \"E\" (Ex-works), the delivery point is seller\'s premises. In group \"F\" (FOB, FAS &amp; FCA), the delivery point is before or upto the main carrier, with main carried unpaid by seller. In group \"C\" (CFR, CIF, CPT &amp; CIP), the delivery point is upto and beyond the main carrier with carrier paid by seller. And finally in group \"D\" (DAP, DAT &amp; DDP), the delivery point is the final destination.\r\n\r\nNow that we are clear on some of the important points, lets jump into each of the incoterm.\r\n\r\n<strong>1. EXW (Ex-Works): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\"><img class=\"aligncenter size-full wp-image-1271\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\" alt=\"Ex Works\" width=\"750\" height=\"350\" /></a>\r\n\r\nWith Ex-works the seller has the least responsibility. Seller has the responsibility to deliver the goods to the buyer at seller\'s premises, depot or any other agreed places. From there on, all responsibility and risks are with the buyer. It means,\r\n<ol>\r\n	<li>The delivery point is seller\'s premises</li>\r\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\r\n	<li>buyer arranges for all modes of transport .</li>\r\n	<li>Buyer pays for the insurance</li>\r\n</ol>\r\nEx-works is often used while making quoting initial prices for sale contracts. In practice, this incoterm can have practical difficulties specially in cross border assignments. These difficulties may include buyer\'s inability to arrange for export formalities.\r\n\r\n<strong>2. Delivered duty paid (DDP): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg\"><img class=\"aligncenter size-full wp-image-1285\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg\" alt=\"Delivered Duty Paid DDP\" width=\"750\" height=\"350\" /></a>\r\n\r\nDelivered duty paid is just the opposite of Ex-works. Seller has the most responsibility.  Seller has the responsibility to deliver the goods at buyer\'s premises, depot or any other place as agreed. It means that from seller\'s premises to buyer\'s premises or any other agreed place\r\n<ol>\r\n	<li>The delivery point is buyer\'s premises or other place agreed.</li>\r\n	<li>Seller handles the cargo and pays for export as well as import dues and</li>\r\n	<li>Seller arranges the transport of the cargo. Which also means that in case of sea transport, seller will be the shipper of the goods.</li>\r\n	<li>Seller pays for the insurance.</li>\r\n</ol>\r\nAs in Ex-works, DDP can also have practical difficulties in cross border assignments. In DDP, seller is responsible to clear the import formalities but the seller may not have the local knowledge &amp; expertise to clear import formalities.\r\n\r\n3. <strong>Free Carrier (FCA): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\"><img class=\"aligncenter size-full wp-image-1273\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\" alt=\"Free Carrier FCA\" width=\"750\" height=\"350\" /></a>\r\n\r\nFree carrier means the delivery point is carrier or other person nominated by the buyer at the seller\'s premises or other agreed place. If the agreed place is seller\'s premises, delivery takes place when the goods load on the truck. If the agreed place is not seller\'s premises then the delivery takes place when truck arrives at this place and is ready for unloading. In Free carrier (FCA),\r\n<ol>\r\n	<li>The delivery point is seller\'s premises or any other place agreed.</li>\r\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\r\n	<li>buyer arranges for all modes of transport</li>\r\n</ol>\r\nIn FCA incoterm, the agreed place has implications on the loading of the carrier. If the agreed place is seller\'s premises then seller handles the loading. If the agreed place is other than seller\'s premises, then seller has delivered the goods once the carrier arrives at the agreed place.\r\n\r\n\"FCA seller\'s premises\" might look similar to Ex-works but there is one main difference. In FCA, seller has the obligation to load the goods on the carrier.\r\n\r\n<strong style=\"line-height: 1.5;\">4. Free Onboard (FOB):</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\"><img class=\"aligncenter size-full wp-image-1274\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\" alt=\"Free onboard FOB\" width=\"750\" height=\"350\" /></a>\r\n\r\nFree onboard means the seller delivers the shipment to the carrier nominated by the buyer. There is only a slight difference between FCA and FOB. One difference is the mode of transport. While FCA is applicable for multimodal transport, FOB is used only for sea transport. In FOB, the seller passes the risk to the buyer when shipment crosses ship\'s rail.  In FCA, the seller has the obligation to load the shipment on to the carrier arranged by buyer which is prior to the main carrier.\r\n\r\n<strong>5. Cost and Freight (CFR)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\"><img class=\"aligncenter size-full wp-image-1275\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\" alt=\"Cost &amp; Freight CFR\" width=\"750\" height=\"350\" /></a>\r\n\r\nBy cost and freight, it means while seller bears cost and freight of shipment to the destination but the risk is with the buyer. And that is also the main difference between CFR and FOB incoterms. In FOB, seller delivers the shipment and passes the risk to buyer when shipment crosses ship\'s rail. But, in CFR, he also pays for the costs and freight until the shipment reaches to the destination. This was exactly the point discussed earlier. Arranging for the transport does not mean that the risk is with the party arranging the transport. In this case, seller arranges the main transport (Seller is the shipper), but he has already delivered the shipment or passed the risk to the buyer upon shipment crossing th ship\'s rail.\r\n\r\n<strong>6. Cost , Insurance and Freight (CIF)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\"><img class=\"aligncenter size-full wp-image-1276\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\" alt=\"Cost, Insurance &amp; Freight CIF\" width=\"750\" height=\"350\" /></a>\r\n\r\nThere is only one but obvious difference between CFR and CIF and that is addition of Insurance. Seller passes the risk to the buyer when the shipment is loaded on the carrier. But the seller also arranges for the main carrier (Seller is the shipper). Apart from that seller also pays for the insurance for covering the buyer\'s risk during carriage of the shipment. As seller would be paying to cover the buyer\'s risk, he would offcourse wish to have least insurance just to cover his obligations. Buyer must take this into account and take extra insurance if he wish to.\r\n\r\n<strong>7. Free Alongside Ship (FAS)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\"><img class=\"aligncenter size-full wp-image-1277\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\" alt=\"Free Alongside Ship FAS\" width=\"750\" height=\"350\" /></a>\r\n\r\nAs simple as it sounds. The seller delivers the shipment to buyer when the goods are alongside ship. Risk passes from seller to buyer when the good are brought alongside the ship. Buyer arranges for the main carrier (Buyer is the shipper). Buyer pays for the all the insurance after this point.\r\n\r\n<strong>8. Carriage paid to (CPT)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg\"><img class=\"aligncenter size-full wp-image-1279\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg\" alt=\"Carriage paid to CPT\" width=\"750\" height=\"350\" /></a>\r\n\r\nSeller pays for the main carriage to bring the shipment at agreed place. However the seller passes the risk to the buyer upon delivery to the main carrier. This is the point that we highlighted earlier. \"Arranging for the main transport does not mean the risk is with the arranging party\". Here even when the seller arranges for the main carrier, risk has already passed  to the buyer.\r\n\r\nBuyer also arranges for the insurance from the point of delivery.\r\n\r\n<strong>9. Carriage and insurance paid (CIP)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg\"><img class=\"aligncenter size-full wp-image-1280\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg\" alt=\"Carriage &amp; Insurance paid to CIP\" width=\"750\" height=\"350\" /></a>\r\n\r\nIn CIP, Seller delivers the goods and passes the risk to the buyer upon delivery to the main carrier. Seller arranges and pays for the main carrier (Seller is the shipper) to bring the shipment at agreed place. Seller also arranges for insurance on behalf of buyer to cover buyer\'s risk. The main difference between CPT and CIP is that the insurance is also paid by the seller. Again this point was highlighted earlier. \"arranging for the insurance does not mean that risk is with the party arranging the insurance\". Here Seller pays for the insurance but the risk is not with him. Seller arranges for the insurance to cover buyer\'s risk. CIP requires seller to arrange for insurance equals to 110% of the cargo value under minimum insurance claim. Buyer must insure himself against any additional risk  he thinks need insuring against.\r\n\r\n<strong>10. Delivered at place (DAP)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg\"><img class=\"aligncenter size-full wp-image-1282\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg\" alt=\"Delivered at place\" width=\"750\" height=\"350\" /></a>\r\n\r\nDAP means seller delievers when shipment arrives at final destination, ready for unloading from the arriving mode of transport. Seller bears all the costs and risks in bringing the goods to this place.\r\n\r\n1) Seller handles export fees, carriage, insurance and destination port charges.\r\n\r\n2) Buyer handles import fees and unloading of goods.\r\n\r\n<strong>11. Delivered at terminal (DAT)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg\"><img class=\"aligncenter size-full wp-image-1284\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg\" alt=\"Delivered at Terminal DAT\" width=\"750\" height=\"350\" /></a>\r\n\r\nSeller delivers the shipment and passes the risk to the buyer when shipment is put at the disposal of buyer at the terminal of final destination. Seller handles export fees, carriage, insurance, destination port charges and unloading of the goods. The main difference between DAT and DAP is that in DAT, seller  handles the final unloading of the goods.\r\n\r\n<strong>Common Mistakes in using Incoterms </strong>\r\n\r\n1) Failure to include the precise place alongwith the destination.\r\n\r\nThe use of Incoterms need to specify the precise place. For example FCA Durban does not specify the precise location as Durban is a broad area. Incoterm must mention the exact location in Durban. For example, FCA Durban berth no 42.\r\n\r\n2)  Use of DDP incoterm without considering if the seller has the knowledge and expertise or if local regulations allows him to clear import formalities in buyer\'s country.\r\n\r\n3) Use of EXW incoterm without considering if the buyer has the knowledge and expertise or if local regulations allows him to clear export formalities in seller\'s country.\r\n\r\n4) Using \"sea or inland waterways\" incoterms for containerized goods. These four incoterms which are used for sea and inland waterways are not meant for containerized goods. These are actually meant for bulk cargoes and non- containerized goods. Use of these incoterms for containerized goods can put exporters at undue risk as the goods may have to wait several days before despatch.\r\n\r\n&nbsp;\r\n\r\n&nbsp;','','','inherit','open','open','','1264-revision-v1','','','2015-12-25 06:08:58','2015-12-25 06:08:58','',1264,'http://myseatime.com/blogadm/1264-revision-v1/',0,'revision','',0,0),(1291,1,'2015-12-25 06:58:51','2015-12-25 06:58:51','Incoterms is the short form for International Commercial terms. These terms relates to the sales contract and are used worldwide. INCOTERMS were first introduced in 1936 by International chamber of Commerce (ICC). These Incoterms were revised several times, latest being Incoterms 2010.\r\n\r\n<strong>Why do we need INCOTERMS ?</strong>\r\n\r\nA cargo may move several days before it arrives at its destination. Even though shipping is safer these days, many cargoes still do not reach their destination or reach in bad shape. And when that happens, one should know who had the title of the goods lost. For that reason, It is important for buyer and seller to pre-define the responsibilities and obligations for transport of the goods. INCOTERMS are all the possible ways of distributing responsibilities and obligations between two parties.\r\n\r\nThese responsibilities and obligations include\r\n<ol>\r\n	<li><strong>Point of delivery:</strong> Incoterms defines the point of delivery of the goods by seller to buyer. The meaning of delivery here  is\"transfer of risk and responsibility\". So the INCOTERMS defines the point of change of hands (passing of risk) from seller to buyer.</li>\r\n	<li><strong>Transportation Costs:</strong> Incoterms defines which party pays for the transportation cost. There may be more than one means of transportation and INCOTERMS defines who pays for which leg of the transportation. In case of sea transport, it also means which party will act as shipper of the cargo.</li>\r\n	<li><strong>Export and import formalities:</strong> Incoterms outlines which party arranges for export and import formalities.</li>\r\n	<li><strong>Insurance costs:</strong> Incoterms outlines who bears the insurance costs.</li>\r\n</ol>\r\nThere are few important points that requires highlighting before we move any further.\r\n<ol>\r\n	<li>Arranging for the main transport does not mean the risk is with the arranging party. Seller may arrange for the main transportation even when the consignment is already delivered (that is risk has passed to buyer). In this case the risk has passed to the buyer and seller is just acting as the shipper without any risk to him.</li>\r\n	<li>Arranging for the insurance does not mean that risk is with the party arranging the insurance. In few of the INCOTERMS, seller arranges for insurance to cover buyer\'s risk. In these cases, seller is only required to cover minimum risk as defined in the minimum risk clause in respective incoterm. Buyer must take more insurance to cover any extra risk that he wishes to insure against.</li>\r\n</ol>\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\"><img class=\"aligncenter size-full wp-image-1265\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\" alt=\"Incoterms\" width=\"750\" height=\"400\" /></a>\r\n\r\nThere are total 11 INCOTERMS defined by the ICC . The 11 INCOTERMS are based upon the consideration of least responsibility of the seller to least responsibility of the buyer. For example INCOTERM EXW (ex-work) considers least responsibilty for the seller. Same way INCOTERM DDP (Delievered duty paid) considers least responsibility for the buyer. We can say that all other nine INCOTERMS lies between these two extremes.\r\n\r\nOne last thing before we take the incoterms head on. Lets differentiate and group together each Incoterm. First on the basis of mode of transport that they are used and second based upon the point of delivery.\r\n\r\n<strong style=\"line-height: 1.5;\">Incoterms Based upon the Mode of transport.</strong>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\"><img class=\"aligncenter size-full wp-image-1269\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\" alt=\"Incoterms based upon mode of transport\" width=\"750\" height=\"330\" /></a>\r\n\r\nThe first group includes seven incoterms which can be used in any mode of transport. These can be used even when there is no sea transport used. Incoterms EXW, FCA, CPT, CIP, DAT, DAP and DDP belongs to this group. The second group includes four incoterms which are used in sea or inland waterways only. This is because in these incoterms the point of delivery and the destination place are both sea ports. Incoterms  FAS, FOB, CFR and CIF belongs to this second group.\r\n\r\n<strong>Incoterms groups based upon point of delivery</strong>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\"><img class=\"aligncenter size-full wp-image-1270\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\" alt=\"Incoterms based upon Point of delivery\" width=\"750\" height=\"300\" /></a>\r\n\r\nIncoterms can also be grouped  together in 4 categories based upon the point of delivery. In group \"E\" (Ex-works), the delivery point is seller\'s premises. In group \"F\" (FOB, FAS &amp; FCA), the delivery point is before or upto the main carrier, with main carried unpaid by seller. In group \"C\" (CFR, CIF, CPT &amp; CIP), the delivery point is upto and beyond the main carrier with carrier paid by seller. And finally in group \"D\" (DAP, DAT &amp; DDP), the delivery point is the final destination.\r\n\r\nNow that we are clear on some of the important points, lets jump into each of the incoterm.\r\n\r\n<strong>1. EXW (Ex-Works): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\"><img class=\"aligncenter size-full wp-image-1271\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\" alt=\"Ex Works\" width=\"750\" height=\"350\" /></a>\r\n\r\nWith Ex-works the seller has the least responsibility. Seller has the responsibility to deliver the goods to the buyer at seller\'s premises, depot or any other agreed places. From there on, all responsibility and risks are with the buyer. It means,\r\n<ol>\r\n	<li>The delivery point is seller\'s premises</li>\r\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\r\n	<li>buyer arranges for all modes of transport .</li>\r\n	<li>Buyer pays for the insurance</li>\r\n</ol>\r\nEx-works is often used while making quoting initial prices for sale contracts. In practice, this incoterm can have practical difficulties specially in cross border assignments. These difficulties may include buyer\'s inability to arrange for export formalities.\r\n\r\n<strong>2. Delivered duty paid (DDP): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg\"><img class=\"aligncenter size-full wp-image-1285\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg\" alt=\"Delivered Duty Paid DDP\" width=\"750\" height=\"350\" /></a>\r\n\r\nDelivered duty paid is just the opposite of Ex-works. Seller has the most responsibility.  Seller has the responsibility to deliver the goods at buyer\'s premises, depot or any other place as agreed. It means that from seller\'s premises to buyer\'s premises or any other agreed place\r\n<ol>\r\n	<li>The delivery point is buyer\'s premises or other place agreed.</li>\r\n	<li>Seller handles the cargo and pays for export as well as import dues and</li>\r\n	<li>Seller arranges the transport of the cargo. Which also means that in case of sea transport, seller will be the shipper of the goods.</li>\r\n	<li>Seller pays for the insurance.</li>\r\n</ol>\r\nAs in Ex-works, DDP can also have practical difficulties in cross border assignments. In DDP, seller is responsible to clear the import formalities but the seller may not have the local knowledge &amp; expertise to clear import formalities.\r\n\r\n3. <strong>Free Carrier (FCA): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\"><img class=\"aligncenter size-full wp-image-1273\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\" alt=\"Free Carrier FCA\" width=\"750\" height=\"350\" /></a>\r\n\r\nFree carrier means the delivery point is carrier or other person nominated by the buyer at the seller\'s premises or other agreed place. If the agreed place is seller\'s premises, delivery takes place when the goods load on the truck. If the agreed place is not seller\'s premises then the delivery takes place when truck arrives at this place and is ready for unloading. In Free carrier (FCA),\r\n<ol>\r\n	<li>The delivery point is seller\'s premises or any other place agreed.</li>\r\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\r\n	<li>buyer arranges for all modes of transport</li>\r\n</ol>\r\nIn FCA incoterm, the agreed place has implications on the loading of the carrier. If the agreed place is seller\'s premises then seller handles the loading. If the agreed place is other than seller\'s premises, then seller has delivered the goods once the carrier arrives at the agreed place.\r\n\r\n\"FCA seller\'s premises\" might look similar to Ex-works but there is one main difference. In FCA, seller has the obligation to load the goods on the carrier.\r\n\r\n<strong style=\"line-height: 1.5;\">4. Free Onboard (FOB):</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\"><img class=\"aligncenter size-full wp-image-1274\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\" alt=\"Free onboard FOB\" width=\"750\" height=\"350\" /></a>\r\n\r\nFree onboard means the seller delivers the shipment to the carrier nominated by the buyer. There is only a slight difference between FCA and FOB. One difference is the mode of transport. While FCA is applicable for multimodal transport, FOB is used only for sea transport. In FOB, the seller passes the risk to the buyer when shipment crosses ship\'s rail.  In FCA, the seller has the obligation to load the shipment on to the carrier arranged by buyer which is prior to the main carrier.\r\n\r\n<strong>5. Cost and Freight (CFR)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\"><img class=\"aligncenter size-full wp-image-1275\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\" alt=\"Cost &amp; Freight CFR\" width=\"750\" height=\"350\" /></a>\r\n\r\nBy cost and freight, it means while seller bears cost and freight of shipment to the destination but the risk is with the buyer. And that is also the main difference between CFR and FOB incoterms. In FOB, seller delivers the shipment and passes the risk to buyer when shipment crosses ship\'s rail. But, in CFR, he also pays for the costs and freight until the shipment reaches to the destination. This was exactly the point discussed earlier. Arranging for the transport does not mean that the risk is with the party arranging the transport. In this case, seller arranges the main transport (Seller is the shipper), but he has already delivered the shipment or passed the risk to the buyer upon shipment crossing th ship\'s rail.\r\n\r\n<strong>6. Cost , Insurance and Freight (CIF)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\"><img class=\"aligncenter size-full wp-image-1276\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\" alt=\"Cost, Insurance &amp; Freight CIF\" width=\"750\" height=\"350\" /></a>\r\n\r\nThere is only one but obvious difference between CFR and CIF and that is addition of Insurance. Seller passes the risk to the buyer when the shipment is loaded on the carrier. But the seller also arranges for the main carrier (Seller is the shipper). Apart from that seller also pays for the insurance for covering the buyer\'s risk during carriage of the shipment. As seller would be paying to cover the buyer\'s risk, he would offcourse wish to have least insurance just to cover his obligations. Buyer must take this into account and take extra insurance if he wish to.\r\n\r\n<strong>7. Free Alongside Ship (FAS)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\"><img class=\"aligncenter size-full wp-image-1277\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\" alt=\"Free Alongside Ship FAS\" width=\"750\" height=\"350\" /></a>\r\n\r\nAs simple as it sounds. The seller delivers the shipment to buyer when the goods are alongside ship. Risk passes from seller to buyer when the good are brought alongside the ship. Buyer arranges for the main carrier (Buyer is the shipper). Buyer pays for the all the insurance after this point.\r\n\r\n<strong>8. Carriage paid to (CPT)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg\"><img class=\"aligncenter size-full wp-image-1279\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg\" alt=\"Carriage paid to CPT\" width=\"750\" height=\"350\" /></a>\r\n\r\nSeller pays for the main carriage to bring the shipment at agreed place. However the seller passes the risk to the buyer upon delivery to the main carrier. This is the point that we highlighted earlier. \"Arranging for the main transport does not mean the risk is with the arranging party\". Here even when the seller arranges for the main carrier, risk has already passed  to the buyer.\r\n\r\nBuyer also arranges for the insurance from the point of delivery.\r\n\r\n<strong>9. Carriage and insurance paid (CIP)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg\"><img class=\"aligncenter size-full wp-image-1280\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg\" alt=\"Carriage &amp; Insurance paid to CIP\" width=\"750\" height=\"350\" /></a>\r\n\r\nIn CIP, Seller delivers the goods and passes the risk to the buyer upon delivery to the main carrier. Seller arranges and pays for the main carrier (Seller is the shipper) to bring the shipment at agreed place. Seller also arranges for insurance on behalf of buyer to cover buyer\'s risk. The main difference between CPT and CIP is that the insurance is also paid by the seller. Again this point was highlighted earlier. \"arranging for the insurance does not mean that risk is with the party arranging the insurance\". Here Seller pays for the insurance but the risk is not with him. Seller arranges for the insurance to cover buyer\'s risk. CIP requires seller to arrange for insurance equals to 110% of the cargo value under minimum insurance claim. Buyer must insure himself against any additional risk  he thinks need insuring against.\r\n\r\n<strong>10. Delivered at place (DAP)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg\"><img class=\"aligncenter size-full wp-image-1282\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg\" alt=\"Delivered at place\" width=\"750\" height=\"350\" /></a>\r\n\r\nDAP means seller delievers when shipment arrives at final destination, ready for unloading from the arriving mode of transport. Seller bears all the costs and risks in bringing the goods to this place.\r\n\r\n1) Seller handles export fees, carriage, insurance and destination port charges.\r\n\r\n2) Buyer handles import fees and unloading of goods.\r\n\r\n<strong>11. Delivered at terminal (DAT)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg\"><img class=\"aligncenter size-full wp-image-1284\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg\" alt=\"Delivered at Terminal DAT\" width=\"750\" height=\"350\" /></a>\r\n\r\nSeller delivers the shipment and passes the risk to the buyer when shipment is put at the disposal of buyer at the terminal of final destination. Seller handles export fees, carriage, insurance, destination port charges and unloading of the goods. The main difference between DAT and DAP is that in DAT, seller  handles the final unloading of the goods.\r\n\r\n<strong>Common Mistakes in using Incoterms </strong>\r\n\r\n1) Failure to include the precise place alongwith the destination.\r\n\r\nThe use of Incoterms need to specify the precise place. For example FCA Durban does not specify the precise location as Durban is a broad area. Incoterm must mention the exact location in Durban. For example, FCA Durban berth no 42.\r\n\r\n2)  Use of DDP incoterm without considering if the seller has the knowledge and expertise or if local regulations allows him to clear import formalities in buyer\'s country.\r\n\r\n3) Use of EXW incoterm without considering if the buyer has the knowledge and expertise or if local regulations allows him to clear export formalities in seller\'s country.\r\n\r\n4) Using \"sea or inland waterways\" incoterms for containerized goods. These four incoterms which are used for sea and inland waterways are not meant for containerized goods. These are actually meant for bulk cargoes and non- containerized goods. Use of these incoterms for containerized goods can put exporters at undue risk as the goods may have to wait several days before despatch.\r\n\r\n&nbsp;\r\n\r\n&nbsp;','','','inherit','open','open','','1264-revision-v1','','','2015-12-25 06:58:51','2015-12-25 06:58:51','',1264,'http://myseatime.com/blogadm/1264-revision-v1/',0,'revision','',0,0),(1292,1,'2015-12-25 08:48:36','2015-12-25 08:48:36','incoterms pic','incoterms pic','','inherit','open','open','','incoterms-pic','','','2015-12-25 08:52:37','2015-12-25 08:52:37','',1264,'http://myseatime.com/blogadm/wp-content/uploads/2015/12/incoterms-pic.jpg',0,'attachment','image/jpeg',0,0),(1293,1,'2015-12-25 09:07:02','2015-12-25 09:07:02','Incoterms is the short form for International Commercial terms. These terms relates to the sales contract and are used worldwide. INCOTERMS were first introduced in 1936 by International chamber of Commerce (ICC). These Incoterms were revised several times, latest being Incoterms 2010.\r\n\r\n<strong>Why do we need INCOTERMS ?</strong>\r\n\r\nA cargo may move several days before it arrives at its destination. Even though shipping is safer these days, many cargoes still do not reach their destination or reach in bad shape. And when that happens, one should know who had the title of the goods lost. For that reason, It is important for buyer and seller to pre-define the responsibilities and obligations for transport of the goods. INCOTERMS are all the possible ways of distributing responsibilities and obligations between two parties.\r\n\r\nThese responsibilities and obligations include\r\n<ol>\r\n	<li><strong>Point of delivery:</strong> Incoterms defines the point of delivery of the goods by seller to buyer. The meaning of delivery here  is\"transfer of risk and responsibility\". So the INCOTERMS defines the point of change of hands (passing of risk) from seller to buyer.</li>\r\n	<li><strong>Transportation Costs:</strong> Incoterms defines which party pays for the transportation cost. There may be more than one means of transportation and INCOTERMS defines who pays for which leg of the transportation. In case of sea transport, it also means which party will act as shipper of the cargo.</li>\r\n	<li><strong>Export and import formalities:</strong> Incoterms outlines which party arranges for export and import formalities.</li>\r\n	<li><strong>Insurance costs:</strong> Incoterms outlines who bears the insurance costs.</li>\r\n</ol>\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/incoterms-pic.jpg\"><img class=\"aligncenter size-full wp-image-1292\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/incoterms-pic.jpg\" alt=\"incoterms pic\" width=\"700\" height=\"467\" /></a>\r\n\r\nThere are few important points that requires highlighting before we move any further.\r\n<ol>\r\n	<li>Arranging for the main transport does not mean the risk is with the arranging party. Seller may arrange for the main transportation even when the consignment is already delivered (that is risk has passed to buyer). In this case the risk has passed to the buyer and seller is just acting as the shipper without any risk to him.</li>\r\n	<li>Arranging for the insurance does not mean that risk is with the party arranging the insurance. In few of the INCOTERMS, seller arranges for insurance to cover buyer\'s risk. In these cases, seller is only required to cover minimum risk as defined in the minimum risk clause in respective incoterm. Buyer must take more insurance to cover any extra risk that he wishes to insure against.</li>\r\n</ol>\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\"><img class=\"aligncenter size-full wp-image-1265\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\" alt=\"Incoterms\" width=\"750\" height=\"400\" /></a>\r\n\r\nThere are total 11 INCOTERMS defined by the ICC . The 11 INCOTERMS are based upon the consideration of least responsibility of the seller to least responsibility of the buyer. For example INCOTERM EXW (ex-work) considers least responsibilty for the seller. Same way INCOTERM DDP (Delievered duty paid) considers least responsibility for the buyer. We can say that all other nine INCOTERMS lies between these two extremes.\r\n\r\nOne last thing before we take the incoterms head on. Lets differentiate and group together each Incoterm. First on the basis of mode of transport that they are used and second based upon the point of delivery.\r\n\r\n<strong style=\"line-height: 1.5;\">Incoterms Based upon the Mode of transport.</strong>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\"><img class=\"aligncenter size-full wp-image-1269\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\" alt=\"Incoterms based upon mode of transport\" width=\"750\" height=\"330\" /></a>\r\n\r\nThe first group includes seven incoterms which can be used in any mode of transport. These can be used even when there is no sea transport used. Incoterms EXW, FCA, CPT, CIP, DAT, DAP and DDP belongs to this group. The second group includes four incoterms which are used in sea or inland waterways only. This is because in these incoterms the point of delivery and the destination place are both sea ports. Incoterms  FAS, FOB, CFR and CIF belongs to this second group.\r\n\r\n<strong>Incoterms groups based upon point of delivery</strong>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\"><img class=\"aligncenter size-full wp-image-1270\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\" alt=\"Incoterms based upon Point of delivery\" width=\"750\" height=\"300\" /></a>\r\n\r\nIncoterms can also be grouped  together in 4 categories based upon the point of delivery. In group \"E\" (Ex-works), the delivery point is seller\'s premises. In group \"F\" (FOB, FAS &amp; FCA), the delivery point is before or upto the main carrier, with main carried unpaid by seller. In group \"C\" (CFR, CIF, CPT &amp; CIP), the delivery point is upto and beyond the main carrier with carrier paid by seller. And finally in group \"D\" (DAP, DAT &amp; DDP), the delivery point is the final destination.\r\n\r\nNow that we are clear on some of the important points, lets jump into each of the incoterm.\r\n\r\n<strong>1. EXW (Ex-Works): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\"><img class=\"aligncenter size-full wp-image-1271\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\" alt=\"Ex Works\" width=\"750\" height=\"350\" /></a>\r\n\r\nWith Ex-works the seller has the least responsibility. Seller has the responsibility to deliver the goods to the buyer at seller\'s premises, depot or any other agreed places. From there on, all responsibility and risks are with the buyer. It means,\r\n<ol>\r\n	<li>The delivery point is seller\'s premises</li>\r\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\r\n	<li>buyer arranges for all modes of transport .</li>\r\n	<li>Buyer pays for the insurance</li>\r\n</ol>\r\nEx-works is often used while making quoting initial prices for sale contracts. In practice, this incoterm can have practical difficulties specially in cross border assignments. These difficulties may include buyer\'s inability to arrange for export formalities.\r\n\r\n<strong>2. Delivered duty paid (DDP): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg\"><img class=\"aligncenter size-full wp-image-1285\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg\" alt=\"Delivered Duty Paid DDP\" width=\"750\" height=\"350\" /></a>\r\n\r\nDelivered duty paid is just the opposite of Ex-works. Seller has the most responsibility.  Seller has the responsibility to deliver the goods at buyer\'s premises, depot or any other place as agreed. It means that from seller\'s premises to buyer\'s premises or any other agreed place\r\n<ol>\r\n	<li>The delivery point is buyer\'s premises or other place agreed.</li>\r\n	<li>Seller handles the cargo and pays for export as well as import dues and</li>\r\n	<li>Seller arranges the transport of the cargo. Which also means that in case of sea transport, seller will be the shipper of the goods.</li>\r\n	<li>Seller pays for the insurance.</li>\r\n</ol>\r\nAs in Ex-works, DDP can also have practical difficulties in cross border assignments. In DDP, seller is responsible to clear the import formalities but the seller may not have the local knowledge &amp; expertise to clear import formalities.\r\n\r\n3. <strong>Free Carrier (FCA): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\"><img class=\"aligncenter size-full wp-image-1273\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\" alt=\"Free Carrier FCA\" width=\"750\" height=\"350\" /></a>\r\n\r\nFree carrier means the delivery point is carrier or other person nominated by the buyer at the seller\'s premises or other agreed place. If the agreed place is seller\'s premises, delivery takes place when the goods load on the truck. If the agreed place is not seller\'s premises then the delivery takes place when truck arrives at this place and is ready for unloading. In Free carrier (FCA),\r\n<ol>\r\n	<li>The delivery point is seller\'s premises or any other place agreed.</li>\r\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\r\n	<li>buyer arranges for all modes of transport</li>\r\n</ol>\r\nIn FCA incoterm, the agreed place has implications on the loading of the carrier. If the agreed place is seller\'s premises then seller handles the loading. If the agreed place is other than seller\'s premises, then seller has delivered the goods once the carrier arrives at the agreed place.\r\n\r\n\"FCA seller\'s premises\" might look similar to Ex-works but there is one main difference. In FCA, seller has the obligation to load the goods on the carrier.\r\n\r\n<strong style=\"line-height: 1.5;\">4. Free Onboard (FOB):</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\"><img class=\"aligncenter size-full wp-image-1274\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\" alt=\"Free onboard FOB\" width=\"750\" height=\"350\" /></a>\r\n\r\nFree onboard means the seller delivers the shipment to the carrier nominated by the buyer. There is only a slight difference between FCA and FOB. One difference is the mode of transport. While FCA is applicable for multimodal transport, FOB is used only for sea transport. In FOB, the seller passes the risk to the buyer when shipment crosses ship\'s rail.  In FCA, the seller has the obligation to load the shipment on to the carrier arranged by buyer which is prior to the main carrier.\r\n\r\n<strong>5. Cost and Freight (CFR)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\"><img class=\"aligncenter size-full wp-image-1275\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\" alt=\"Cost &amp; Freight CFR\" width=\"750\" height=\"350\" /></a>\r\n\r\nBy cost and freight, it means while seller bears cost and freight of shipment to the destination but the risk is with the buyer. And that is also the main difference between CFR and FOB incoterms. In FOB, seller delivers the shipment and passes the risk to buyer when shipment crosses ship\'s rail. But, in CFR, he also pays for the costs and freight until the shipment reaches to the destination. This was exactly the point discussed earlier. Arranging for the transport does not mean that the risk is with the party arranging the transport. In this case, seller arranges the main transport (Seller is the shipper), but he has already delivered the shipment or passed the risk to the buyer upon shipment crossing th ship\'s rail.\r\n\r\n<strong>6. Cost , Insurance and Freight (CIF)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\"><img class=\"aligncenter size-full wp-image-1276\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\" alt=\"Cost, Insurance &amp; Freight CIF\" width=\"750\" height=\"350\" /></a>\r\n\r\nThere is only one but obvious difference between CFR and CIF and that is addition of Insurance. Seller passes the risk to the buyer when the shipment is loaded on the carrier. But the seller also arranges for the main carrier (Seller is the shipper). Apart from that seller also pays for the insurance for covering the buyer\'s risk during carriage of the shipment. As seller would be paying to cover the buyer\'s risk, he would offcourse wish to have least insurance just to cover his obligations. Buyer must take this into account and take extra insurance if he wish to.\r\n\r\n<strong>7. Free Alongside Ship (FAS)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\"><img class=\"aligncenter size-full wp-image-1277\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\" alt=\"Free Alongside Ship FAS\" width=\"750\" height=\"350\" /></a>\r\n\r\nAs simple as it sounds. The seller delivers the shipment to buyer when the goods are alongside ship. Risk passes from seller to buyer when the good are brought alongside the ship. Buyer arranges for the main carrier (Buyer is the shipper). Buyer pays for the all the insurance after this point.\r\n\r\n<strong>8. Carriage paid to (CPT)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg\"><img class=\"aligncenter size-full wp-image-1279\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg\" alt=\"Carriage paid to CPT\" width=\"750\" height=\"350\" /></a>\r\n\r\nSeller pays for the main carriage to bring the shipment at agreed place. However the seller passes the risk to the buyer upon delivery to the main carrier. This is the point that we highlighted earlier. \"Arranging for the main transport does not mean the risk is with the arranging party\". Here even when the seller arranges for the main carrier, risk has already passed  to the buyer.\r\n\r\nBuyer also arranges for the insurance from the point of delivery.\r\n\r\n<strong>9. Carriage and insurance paid (CIP)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg\"><img class=\"aligncenter size-full wp-image-1280\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg\" alt=\"Carriage &amp; Insurance paid to CIP\" width=\"750\" height=\"350\" /></a>\r\n\r\nIn CIP, Seller delivers the goods and passes the risk to the buyer upon delivery to the main carrier. Seller arranges and pays for the main carrier (Seller is the shipper) to bring the shipment at agreed place. Seller also arranges for insurance on behalf of buyer to cover buyer\'s risk. The main difference between CPT and CIP is that the insurance is also paid by the seller. Again this point was highlighted earlier. \"arranging for the insurance does not mean that risk is with the party arranging the insurance\". Here Seller pays for the insurance but the risk is not with him. Seller arranges for the insurance to cover buyer\'s risk. CIP requires seller to arrange for insurance equals to 110% of the cargo value under minimum insurance claim. Buyer must insure himself against any additional risk  he thinks need insuring against.\r\n\r\n<strong>10. Delivered at place (DAP)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg\"><img class=\"aligncenter size-full wp-image-1282\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg\" alt=\"Delivered at place\" width=\"750\" height=\"350\" /></a>\r\n\r\nDAP means seller delievers when shipment arrives at final destination, ready for unloading from the arriving mode of transport. Seller bears all the costs and risks in bringing the goods to this place.\r\n\r\n1) Seller handles export fees, carriage, insurance and destination port charges.\r\n\r\n2) Buyer handles import fees and unloading of goods.\r\n\r\n<strong>11. Delivered at terminal (DAT)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg\"><img class=\"aligncenter size-full wp-image-1284\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg\" alt=\"Delivered at Terminal DAT\" width=\"750\" height=\"350\" /></a>\r\n\r\nSeller delivers the shipment and passes the risk to the buyer when shipment is put at the disposal of buyer at the terminal of final destination. Seller handles export fees, carriage, insurance, destination port charges and unloading of the goods. The main difference between DAT and DAP is that in DAT, seller  handles the final unloading of the goods.\r\n\r\n<strong>Common Mistakes in using Incoterms </strong>\r\n\r\n1) Failure to include the precise place alongwith the destination.\r\n\r\nThe use of Incoterms need to specify the precise place. For example FCA Durban does not specify the precise location as Durban is a broad area. Incoterm must mention the exact location in Durban. For example, FCA Durban berth no 42.\r\n\r\n2)  Use of DDP incoterm without considering if the seller has the knowledge and expertise or if local regulations allows him to clear import formalities in buyer\'s country.\r\n\r\n3) Use of EXW incoterm without considering if the buyer has the knowledge and expertise or if local regulations allows him to clear export formalities in seller\'s country.\r\n\r\n4) Using \"sea or inland waterways\" incoterms for containerized goods. These four incoterms which are used for sea and inland waterways are not meant for containerized goods. These are actually meant for bulk cargoes and non- containerized goods. Use of these incoterms for containerized goods can put exporters at undue risk as the goods may have to wait several days before despatch.\r\n\r\n&nbsp;\r\n\r\n&nbsp;','Incoterms: Guide of everything you want to know about','','inherit','open','open','','1264-revision-v1','','','2015-12-25 09:07:02','2015-12-25 09:07:02','',1264,'http://myseatime.com/blogadm/1264-revision-v1/',0,'revision','',0,0),(1294,1,'2015-12-25 09:10:18','2015-12-25 09:10:18','Incoterms is the short form for International Commercial terms. These terms relates to the sales contract and are used worldwide. INCOTERMS were first introduced in 1936 by International chamber of Commerce (ICC). These Incoterms were revised several times, latest being Incoterms 2010.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/incoterms-pic.jpg\"><img class=\"aligncenter size-full wp-image-1292\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/incoterms-pic.jpg\" alt=\"incoterms pic\" width=\"700\" height=\"467\" /></a>\r\n\r\n<strong>Why do we need INCOTERMS ?</strong>\r\n\r\nA cargo may move several days before it arrives at its destination. Even though shipping is safer these days, many cargoes still do not reach their destination or reach in bad shape. And when that happens, one should know who had the title of the goods lost. For that reason, It is important for buyer and seller to pre-define the responsibilities and obligations for transport of the goods. INCOTERMS are all the possible ways of distributing responsibilities and obligations between two parties.\r\n\r\nThese responsibilities and obligations include\r\n<ol>\r\n	<li><strong>Point of delivery:</strong> Incoterms defines the point of delivery of the goods by seller to buyer. The meaning of delivery here  is\"transfer of risk and responsibility\". So the INCOTERMS defines the point of change of hands (passing of risk) from seller to buyer.</li>\r\n	<li><strong>Transportation Costs:</strong> Incoterms defines which party pays for the transportation cost. There may be more than one means of transportation and INCOTERMS defines who pays for which leg of the transportation. In case of sea transport, it also means which party will act as shipper of the cargo.</li>\r\n	<li><strong>Export and import formalities:</strong> Incoterms outlines which party arranges for export and import formalities.</li>\r\n	<li><strong>Insurance costs:</strong> Incoterms outlines who bears the insurance costs.</li>\r\n</ol>\r\nThere are few important points that requires highlighting before we move any further.\r\n<ol>\r\n	<li>Arranging for the main transport does not mean the risk is with the arranging party. Seller may arrange for the main transportation even when the consignment is already delivered (that is risk has passed to buyer). In this case the risk has passed to the buyer and seller is just acting as the shipper without any risk to him.</li>\r\n	<li>Arranging for the insurance does not mean that risk is with the party arranging the insurance. In few of the INCOTERMS, seller arranges for insurance to cover buyer\'s risk. In these cases, seller is only required to cover minimum risk as defined in the minimum risk clause in respective incoterm. Buyer must take more insurance to cover any extra risk that he wishes to insure against.</li>\r\n</ol>\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\"><img class=\"aligncenter size-full wp-image-1265\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\" alt=\"Incoterms\" width=\"750\" height=\"400\" /></a>\r\n\r\nThere are total 11 INCOTERMS defined by the ICC . The 11 INCOTERMS are based upon the consideration of least responsibility of the seller to least responsibility of the buyer. For example INCOTERM EXW (ex-work) considers least responsibilty for the seller. Same way INCOTERM DDP (Delievered duty paid) considers least responsibility for the buyer. We can say that all other nine INCOTERMS lies between these two extremes.\r\n\r\nOne last thing before we take the incoterms head on. Lets differentiate and group together each Incoterm. First on the basis of mode of transport that they are used and second based upon the point of delivery.\r\n\r\n<strong style=\"line-height: 1.5;\">Incoterms Based upon the Mode of transport.</strong>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\"><img class=\"aligncenter size-full wp-image-1269\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\" alt=\"Incoterms based upon mode of transport\" width=\"750\" height=\"330\" /></a>\r\n\r\nThe first group includes seven incoterms which can be used in any mode of transport. These can be used even when there is no sea transport used. Incoterms EXW, FCA, CPT, CIP, DAT, DAP and DDP belongs to this group. The second group includes four incoterms which are used in sea or inland waterways only. This is because in these incoterms the point of delivery and the destination place are both sea ports. Incoterms  FAS, FOB, CFR and CIF belongs to this second group.\r\n\r\n<strong>Incoterms groups based upon point of delivery</strong>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\"><img class=\"aligncenter size-full wp-image-1270\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\" alt=\"Incoterms based upon Point of delivery\" width=\"750\" height=\"300\" /></a>\r\n\r\nIncoterms can also be grouped  together in 4 categories based upon the point of delivery. In group \"E\" (Ex-works), the delivery point is seller\'s premises. In group \"F\" (FOB, FAS &amp; FCA), the delivery point is before or upto the main carrier, with main carried unpaid by seller. In group \"C\" (CFR, CIF, CPT &amp; CIP), the delivery point is upto and beyond the main carrier with carrier paid by seller. And finally in group \"D\" (DAP, DAT &amp; DDP), the delivery point is the final destination.\r\n\r\nNow that we are clear on some of the important points, lets jump into each of the incoterm.\r\n\r\n<strong>1. EXW (Ex-Works): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\"><img class=\"aligncenter size-full wp-image-1271\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\" alt=\"Ex Works\" width=\"750\" height=\"350\" /></a>\r\n\r\nWith Ex-works the seller has the least responsibility. Seller has the responsibility to deliver the goods to the buyer at seller\'s premises, depot or any other agreed places. From there on, all responsibility and risks are with the buyer. It means,\r\n<ol>\r\n	<li>The delivery point is seller\'s premises</li>\r\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\r\n	<li>buyer arranges for all modes of transport .</li>\r\n	<li>Buyer pays for the insurance</li>\r\n</ol>\r\nEx-works is often used while making quoting initial prices for sale contracts. In practice, this incoterm can have practical difficulties specially in cross border assignments. These difficulties may include buyer\'s inability to arrange for export formalities.\r\n\r\n<strong>2. Delivered duty paid (DDP): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg\"><img class=\"aligncenter size-full wp-image-1285\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg\" alt=\"Delivered Duty Paid DDP\" width=\"750\" height=\"350\" /></a>\r\n\r\nDelivered duty paid is just the opposite of Ex-works. Seller has the most responsibility.  Seller has the responsibility to deliver the goods at buyer\'s premises, depot or any other place as agreed. It means that from seller\'s premises to buyer\'s premises or any other agreed place\r\n<ol>\r\n	<li>The delivery point is buyer\'s premises or other place agreed.</li>\r\n	<li>Seller handles the cargo and pays for export as well as import dues and</li>\r\n	<li>Seller arranges the transport of the cargo. Which also means that in case of sea transport, seller will be the shipper of the goods.</li>\r\n	<li>Seller pays for the insurance.</li>\r\n</ol>\r\nAs in Ex-works, DDP can also have practical difficulties in cross border assignments. In DDP, seller is responsible to clear the import formalities but the seller may not have the local knowledge &amp; expertise to clear import formalities.\r\n\r\n3. <strong>Free Carrier (FCA): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\"><img class=\"aligncenter size-full wp-image-1273\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\" alt=\"Free Carrier FCA\" width=\"750\" height=\"350\" /></a>\r\n\r\nFree carrier means the delivery point is carrier or other person nominated by the buyer at the seller\'s premises or other agreed place. If the agreed place is seller\'s premises, delivery takes place when the goods load on the truck. If the agreed place is not seller\'s premises then the delivery takes place when truck arrives at this place and is ready for unloading. In Free carrier (FCA),\r\n<ol>\r\n	<li>The delivery point is seller\'s premises or any other place agreed.</li>\r\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\r\n	<li>buyer arranges for all modes of transport</li>\r\n</ol>\r\nIn FCA incoterm, the agreed place has implications on the loading of the carrier. If the agreed place is seller\'s premises then seller handles the loading. If the agreed place is other than seller\'s premises, then seller has delivered the goods once the carrier arrives at the agreed place.\r\n\r\n\"FCA seller\'s premises\" might look similar to Ex-works but there is one main difference. In FCA, seller has the obligation to load the goods on the carrier.\r\n\r\n<strong style=\"line-height: 1.5;\">4. Free Onboard (FOB):</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\"><img class=\"aligncenter size-full wp-image-1274\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\" alt=\"Free onboard FOB\" width=\"750\" height=\"350\" /></a>\r\n\r\nFree onboard means the seller delivers the shipment to the carrier nominated by the buyer. There is only a slight difference between FCA and FOB. One difference is the mode of transport. While FCA is applicable for multimodal transport, FOB is used only for sea transport. In FOB, the seller passes the risk to the buyer when shipment crosses ship\'s rail.  In FCA, the seller has the obligation to load the shipment on to the carrier arranged by buyer which is prior to the main carrier.\r\n\r\n<strong>5. Cost and Freight (CFR)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\"><img class=\"aligncenter size-full wp-image-1275\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\" alt=\"Cost &amp; Freight CFR\" width=\"750\" height=\"350\" /></a>\r\n\r\nBy cost and freight, it means while seller bears cost and freight of shipment to the destination but the risk is with the buyer. And that is also the main difference between CFR and FOB incoterms. In FOB, seller delivers the shipment and passes the risk to buyer when shipment crosses ship\'s rail. But, in CFR, he also pays for the costs and freight until the shipment reaches to the destination. This was exactly the point discussed earlier. Arranging for the transport does not mean that the risk is with the party arranging the transport. In this case, seller arranges the main transport (Seller is the shipper), but he has already delivered the shipment or passed the risk to the buyer upon shipment crossing th ship\'s rail.\r\n\r\n<strong>6. Cost , Insurance and Freight (CIF)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\"><img class=\"aligncenter size-full wp-image-1276\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\" alt=\"Cost, Insurance &amp; Freight CIF\" width=\"750\" height=\"350\" /></a>\r\n\r\nThere is only one but obvious difference between CFR and CIF and that is addition of Insurance. Seller passes the risk to the buyer when the shipment is loaded on the carrier. But the seller also arranges for the main carrier (Seller is the shipper). Apart from that seller also pays for the insurance for covering the buyer\'s risk during carriage of the shipment. As seller would be paying to cover the buyer\'s risk, he would offcourse wish to have least insurance just to cover his obligations. Buyer must take this into account and take extra insurance if he wish to.\r\n\r\n<strong>7. Free Alongside Ship (FAS)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\"><img class=\"aligncenter size-full wp-image-1277\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\" alt=\"Free Alongside Ship FAS\" width=\"750\" height=\"350\" /></a>\r\n\r\nAs simple as it sounds. The seller delivers the shipment to buyer when the goods are alongside ship. Risk passes from seller to buyer when the good are brought alongside the ship. Buyer arranges for the main carrier (Buyer is the shipper). Buyer pays for the all the insurance after this point.\r\n\r\n<strong>8. Carriage paid to (CPT)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg\"><img class=\"aligncenter size-full wp-image-1279\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg\" alt=\"Carriage paid to CPT\" width=\"750\" height=\"350\" /></a>\r\n\r\nSeller pays for the main carriage to bring the shipment at agreed place. However the seller passes the risk to the buyer upon delivery to the main carrier. This is the point that we highlighted earlier. \"Arranging for the main transport does not mean the risk is with the arranging party\". Here even when the seller arranges for the main carrier, risk has already passed  to the buyer.\r\n\r\nBuyer also arranges for the insurance from the point of delivery.\r\n\r\n<strong>9. Carriage and insurance paid (CIP)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg\"><img class=\"aligncenter size-full wp-image-1280\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg\" alt=\"Carriage &amp; Insurance paid to CIP\" width=\"750\" height=\"350\" /></a>\r\n\r\nIn CIP, Seller delivers the goods and passes the risk to the buyer upon delivery to the main carrier. Seller arranges and pays for the main carrier (Seller is the shipper) to bring the shipment at agreed place. Seller also arranges for insurance on behalf of buyer to cover buyer\'s risk. The main difference between CPT and CIP is that the insurance is also paid by the seller. Again this point was highlighted earlier. \"arranging for the insurance does not mean that risk is with the party arranging the insurance\". Here Seller pays for the insurance but the risk is not with him. Seller arranges for the insurance to cover buyer\'s risk. CIP requires seller to arrange for insurance equals to 110% of the cargo value under minimum insurance claim. Buyer must insure himself against any additional risk  he thinks need insuring against.\r\n\r\n<strong>10. Delivered at place (DAP)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg\"><img class=\"aligncenter size-full wp-image-1282\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg\" alt=\"Delivered at place\" width=\"750\" height=\"350\" /></a>\r\n\r\nDAP means seller delievers when shipment arrives at final destination, ready for unloading from the arriving mode of transport. Seller bears all the costs and risks in bringing the goods to this place.\r\n\r\n1) Seller handles export fees, carriage, insurance and destination port charges.\r\n\r\n2) Buyer handles import fees and unloading of goods.\r\n\r\n<strong>11. Delivered at terminal (DAT)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg\"><img class=\"aligncenter size-full wp-image-1284\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg\" alt=\"Delivered at Terminal DAT\" width=\"750\" height=\"350\" /></a>\r\n\r\nSeller delivers the shipment and passes the risk to the buyer when shipment is put at the disposal of buyer at the terminal of final destination. Seller handles export fees, carriage, insurance, destination port charges and unloading of the goods. The main difference between DAT and DAP is that in DAT, seller  handles the final unloading of the goods.\r\n\r\n<strong>Common Mistakes in using Incoterms </strong>\r\n\r\n1) Failure to include the precise place alongwith the destination.\r\n\r\nThe use of Incoterms need to specify the precise place. For example FCA Durban does not specify the precise location as Durban is a broad area. Incoterm must mention the exact location in Durban. For example, FCA Durban berth no 42.\r\n\r\n2)  Use of DDP incoterm without considering if the seller has the knowledge and expertise or if local regulations allows him to clear import formalities in buyer\'s country.\r\n\r\n3) Use of EXW incoterm without considering if the buyer has the knowledge and expertise or if local regulations allows him to clear export formalities in seller\'s country.\r\n\r\n4) Using \"sea or inland waterways\" incoterms for containerized goods. These four incoterms which are used for sea and inland waterways are not meant for containerized goods. These are actually meant for bulk cargoes and non- containerized goods. Use of these incoterms for containerized goods can put exporters at undue risk as the goods may have to wait several days before despatch.\r\n\r\n&nbsp;\r\n\r\n&nbsp;','Incoterms: Guide of everything you want to know about','','inherit','open','open','','1264-revision-v1','','','2015-12-25 09:10:18','2015-12-25 09:10:18','',1264,'http://myseatime.com/blogadm/1264-revision-v1/',0,'revision','',0,0),(1295,1,'2015-12-25 09:30:39','2015-12-25 09:30:39','Incoterms is the short form for International Commercial terms. These terms relates to the sales contract and are used worldwide. INCOTERMS were first introduced in 1936 by International chamber of Commerce (ICC). These Incoterms were revised several times, latest being Incoterms 2010.\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/incoterms-pic.jpg\"><img class=\"aligncenter size-full wp-image-1292\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/incoterms-pic.jpg\" alt=\"incoterms pic\" width=\"700\" height=\"467\" /></a>\r\n\r\n<strong>Why do we need INCOTERMS ?</strong>\r\n\r\nA cargo may move several days before it arrives at its destination. Even though shipping is safer these days, many cargoes still do not reach their destination or reach in bad shape. And when that happens, one should know who had the title of the goods lost. For that reason, It is important for buyer and seller to pre-define the responsibilities and obligations for transport of the goods. INCOTERMS are all the possible ways of distributing responsibilities and obligations between two parties.\r\n\r\nThese responsibilities and obligations include\r\n<ol>\r\n	<li><strong>Point of delivery:</strong> Incoterms defines the point of delivery of the goods by seller to buyer. The meaning of delivery here  is\"transfer of risk and responsibility\". So the INCOTERMS defines the point of change of hands (passing of risk) from seller to buyer.</li>\r\n	<li><strong>Transportation Costs:</strong> Incoterms defines which party pays for the transportation cost. There may be more than one means of transportation and INCOTERMS defines who pays for which leg of the transportation. In case of sea transport, it also means which party will act as shipper of the cargo.</li>\r\n	<li><strong>Export and import formalities:</strong> Incoterms outlines which party arranges for export and import formalities.</li>\r\n	<li><strong>Insurance costs:</strong> Incoterms outlines who bears the insurance costs.</li>\r\n</ol>\r\nThere are few important points that requires highlighting before we move any further.\r\n<ol>\r\n	<li>Arranging for the main transport does not mean the risk is with the arranging party. Seller may arrange for the main transportation even when the consignment is already delivered (that is risk has passed to buyer). In this case the risk has passed to the buyer and seller is just acting as the shipper without any risk to him.</li>\r\n	<li>Arranging for the insurance does not mean that risk is with the party arranging the insurance. In few of the INCOTERMS, seller arranges for insurance to cover buyer\'s risk. In these cases, seller is only required to cover minimum risk as defined in the minimum risk clause in respective incoterm. Buyer must take more insurance to cover any extra risk that he wishes to insure against.</li>\r\n</ol>\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\"><img class=\"aligncenter size-full wp-image-1265\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms.jpg\" alt=\"Incoterms\" width=\"750\" height=\"400\" /></a>\r\n\r\nThere are total 11 INCOTERMS defined by the ICC . The 11 INCOTERMS are based upon the consideration of least responsibility of the seller to least responsibility of the buyer. For example INCOTERM EXW (ex-work) considers least responsibilty for the seller. Same way INCOTERM DDP (Delievered duty paid) considers least responsibility for the buyer. We can say that all other nine INCOTERMS lies between these two extremes.\r\n\r\nOne last thing before we take the incoterms head on. Lets differentiate and group together each Incoterm. First on the basis of mode of transport that they are used and second based upon the point of delivery.\r\n\r\n<strong style=\"line-height: 1.5;\">Incoterms Based upon the Mode of transport.</strong>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\"><img class=\"aligncenter size-full wp-image-1269\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-mode-of-transport.png\" alt=\"Incoterms based upon mode of transport\" width=\"750\" height=\"330\" /></a>\r\n\r\nThe first group includes seven incoterms which can be used in any mode of transport. These can be used even when there is no sea transport used. Incoterms EXW, FCA, CPT, CIP, DAT, DAP and DDP belongs to this group. The second group includes four incoterms which are used in sea or inland waterways only. This is because in these incoterms the point of delivery and the destination place are both sea ports. Incoterms  FAS, FOB, CFR and CIF belongs to this second group.\r\n\r\n<strong>Incoterms groups based upon point of delivery</strong>\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\"><img class=\"aligncenter size-full wp-image-1270\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Incoterms-based-upon-Point-of-delivery.jpg\" alt=\"Incoterms based upon Point of delivery\" width=\"750\" height=\"300\" /></a>\r\n\r\nIncoterms can also be grouped  together in 4 categories based upon the point of delivery. In group \"E\" (Ex-works), the delivery point is seller\'s premises. In group \"F\" (FOB, FAS &amp; FCA), the delivery point is before or upto the main carrier, with main carried unpaid by seller. In group \"C\" (CFR, CIF, CPT &amp; CIP), the delivery point is upto and beyond the main carrier with carrier paid by seller. And finally in group \"D\" (DAP, DAT &amp; DDP), the delivery point is the final destination.\r\n\r\nNow that we are clear on some of the important points, lets jump into each of the incoterm.\r\n\r\n<strong>1. EXW (Ex-Works): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\"><img class=\"aligncenter size-full wp-image-1271\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Ex-Works.jpg\" alt=\"Ex Works\" width=\"750\" height=\"350\" /></a>\r\n\r\nWith Ex-works the seller has the least responsibility. Seller has the responsibility to deliver the goods to the buyer at seller\'s premises, depot or any other agreed places. From there on, all responsibility and risks are with the buyer. It means,\r\n<ol>\r\n	<li>The delivery point is seller\'s premises</li>\r\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\r\n	<li>buyer arranges for all modes of transport .</li>\r\n	<li>Buyer pays for the insurance</li>\r\n</ol>\r\nEx-works is often used while making quoting initial prices for sale contracts. In practice, this incoterm can have practical difficulties specially in cross border assignments. These difficulties may include buyer\'s inability to arrange for export formalities.\r\n\r\n<strong>2. Delivered duty paid (DDP): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg\"><img class=\"aligncenter size-full wp-image-1285\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-Duty-Paid-DDP.jpg\" alt=\"Delivered Duty Paid DDP\" width=\"750\" height=\"350\" /></a>\r\n\r\nDelivered duty paid is just the opposite of Ex-works. Seller has the most responsibility.  Seller has the responsibility to deliver the goods at buyer\'s premises, depot or any other place as agreed. It means that from seller\'s premises to buyer\'s premises or any other agreed place\r\n<ol>\r\n	<li>The delivery point is buyer\'s premises or other place agreed.</li>\r\n	<li>Seller handles the cargo and pays for export as well as import dues and</li>\r\n	<li>Seller arranges the transport of the cargo. Which also means that in case of sea transport, seller will be the shipper of the goods.</li>\r\n	<li>Seller pays for the insurance.</li>\r\n</ol>\r\nAs in Ex-works, DDP can also have practical difficulties in cross border assignments. In DDP, seller is responsible to clear the import formalities but the seller may not have the local knowledge &amp; expertise to clear import formalities.\r\n\r\n3. <strong>Free Carrier (FCA): </strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\"><img class=\"aligncenter size-full wp-image-1273\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Carrier-FCA.jpg\" alt=\"Free Carrier FCA\" width=\"750\" height=\"350\" /></a>\r\n\r\nFree carrier means the delivery point is carrier or other person nominated by the buyer at the seller\'s premises or other agreed place. If the agreed place is seller\'s premises, delivery takes place when the goods load on the truck. If the agreed place is not seller\'s premises then the delivery takes place when truck arrives at this place and is ready for unloading. In Free carrier (FCA),\r\n<ol>\r\n	<li>The delivery point is seller\'s premises or any other place agreed.</li>\r\n	<li>buyer pays for the export from seller\'s premises and import into the destination.</li>\r\n	<li>buyer arranges for all modes of transport</li>\r\n</ol>\r\nIn FCA incoterm, the agreed place has implications on the loading of the carrier. If the agreed place is seller\'s premises then seller handles the loading. If the agreed place is other than seller\'s premises, then seller has delivered the goods once the carrier arrives at the agreed place.\r\n\r\n\"FCA seller\'s premises\" might look similar to Ex-works but there is one main difference. In FCA, seller has the obligation to load the goods on the carrier.\r\n\r\n<strong style=\"line-height: 1.5;\">4. Free Onboard (FOB):</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\"><img class=\"aligncenter size-full wp-image-1274\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-onboard-FOB.jpg\" alt=\"Free onboard FOB\" width=\"750\" height=\"350\" /></a>\r\n\r\nFree onboard means the seller delivers the shipment to the carrier nominated by the buyer. There is only a slight difference between FCA and FOB. One difference is the mode of transport. While FCA is applicable for multimodal transport, FOB is used only for sea transport. In FOB, the seller passes the risk to the buyer when shipment crosses ship\'s rail.  In FCA, the seller has the obligation to load the shipment on to the carrier arranged by buyer which is prior to the main carrier.\r\n\r\n<strong>5. Cost and Freight (CFR)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\"><img class=\"aligncenter size-full wp-image-1275\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Freight-CFR.jpg\" alt=\"Cost &amp; Freight CFR\" width=\"750\" height=\"350\" /></a>\r\n\r\nBy cost and freight, it means while seller bears cost and freight of shipment to the destination but the risk is with the buyer. And that is also the main difference between CFR and FOB incoterms. In FOB, seller delivers the shipment and passes the risk to buyer when shipment crosses ship\'s rail. But, in CFR, he also pays for the costs and freight until the shipment reaches to the destination. This was exactly the point discussed earlier. Arranging for the transport does not mean that the risk is with the party arranging the transport. In this case, seller arranges the main transport (Seller is the shipper), but he has already delivered the shipment or passed the risk to the buyer upon shipment crossing th ship\'s rail.\r\n\r\n<strong>6. Cost , Insurance and Freight (CIF)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\"><img class=\"aligncenter size-full wp-image-1276\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Cost-Insurance-Freight-CIF.jpg\" alt=\"Cost, Insurance &amp; Freight CIF\" width=\"750\" height=\"350\" /></a>\r\n\r\nThere is only one but obvious difference between CFR and CIF and that is addition of Insurance. Seller passes the risk to the buyer when the shipment is loaded on the carrier. But the seller also arranges for the main carrier (Seller is the shipper). Apart from that seller also pays for the insurance for covering the buyer\'s risk during carriage of the shipment. As seller would be paying to cover the buyer\'s risk, he would offcourse wish to have least insurance just to cover his obligations. Buyer must take this into account and take extra insurance if he wish to.\r\n\r\n<strong>7. Free Alongside Ship (FAS)</strong>\r\n\r\nMode of transport: Sea\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\"><img class=\"aligncenter size-full wp-image-1277\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Free-Alongside-Ship-FAS.jpg\" alt=\"Free Alongside Ship FAS\" width=\"750\" height=\"350\" /></a>\r\n\r\nAs simple as it sounds. The seller delivers the shipment to buyer when the goods are alongside ship. Risk passes from seller to buyer when the good are brought alongside the ship. Buyer arranges for the main carrier (Buyer is the shipper). Buyer pays for the all the insurance after this point.\r\n\r\n<strong>8. Carriage paid to (CPT)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg\"><img class=\"aligncenter size-full wp-image-1279\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-paid-to-CPT.jpg\" alt=\"Carriage paid to CPT\" width=\"750\" height=\"350\" /></a>\r\n\r\nSeller pays for the main carriage to bring the shipment at agreed place. However the seller passes the risk to the buyer upon delivery to the main carrier. This is the point that we highlighted earlier. \"Arranging for the main transport does not mean the risk is with the arranging party\". Here even when the seller arranges for the main carrier, risk has already passed  to the buyer.\r\n\r\nBuyer also arranges for the insurance from the point of delivery.\r\n\r\n<strong>9. Carriage and insurance paid (CIP)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg\"><img class=\"aligncenter size-full wp-image-1280\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Carriage-Insurance-paid-to-CIP.jpg\" alt=\"Carriage &amp; Insurance paid to CIP\" width=\"750\" height=\"350\" /></a>\r\n\r\nIn CIP, Seller delivers the goods and passes the risk to the buyer upon delivery to the main carrier. Seller arranges and pays for the main carrier (Seller is the shipper) to bring the shipment at agreed place. Seller also arranges for insurance on behalf of buyer to cover buyer\'s risk. The main difference between CPT and CIP is that the insurance is also paid by the seller. Again this point was highlighted earlier. \"arranging for the insurance does not mean that risk is with the party arranging the insurance\". Here Seller pays for the insurance but the risk is not with him. Seller arranges for the insurance to cover buyer\'s risk. CIP requires seller to arrange for insurance equals to 110% of the cargo value under minimum insurance claim. Buyer must insure himself against any additional risk  he thinks need insuring against.\r\n\r\n<strong>10. Delivered at place (DAP)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg\"><img class=\"aligncenter size-full wp-image-1282\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-place.jpg\" alt=\"Delivered at place\" width=\"750\" height=\"350\" /></a>\r\n\r\nDAP means seller delievers when shipment arrives at final destination, ready for unloading from the arriving mode of transport. Seller bears all the costs and risks in bringing the goods to this place.\r\n\r\n1) Seller handles export fees, carriage, insurance and destination port charges.\r\n\r\n2) Buyer handles import fees and unloading of goods.\r\n\r\n<strong>11. Delivered at terminal (DAT)</strong>\r\n\r\nMode of transport: Multimodal\r\n\r\n<a href=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg\"><img class=\"aligncenter size-full wp-image-1284\" src=\"http://myseatime.com/blogadm/wp-content/uploads/2015/12/Delivered-at-Terminal-DAT1.jpg\" alt=\"Delivered at Terminal DAT\" width=\"750\" height=\"350\" /></a>\r\n\r\nSeller delivers the shipment and passes the risk to the buyer when shipment is put at the disposal of buyer at the terminal of final destination. Seller handles export fees, carriage, insurance, destination port charges and unloading of the goods. The main difference between DAT and DAP is that in DAT, seller  handles the final unloading of the goods.\r\n\r\n<strong>Common Mistakes in using Incoterms </strong>\r\n\r\n1) Failure to include the precise place alongwith the destination.\r\n\r\nThe use of Incoterms need to specify the precise place. For example FCA Durban does not specify the precise location as Durban is a broad area. Incoterm must mention the exact location in Durban. For example, FCA Durban berth no 42.\r\n\r\n2)  Use of DDP incoterm without considering if the seller has the knowledge and expertise or if local regulations allows him to clear import formalities in buyer\'s country.\r\n\r\n3) Use of EXW incoterm without considering if the buyer has the knowledge and expertise or if local regulations allows him to clear export formalities in seller\'s country.\r\n\r\n4) Using \"sea or inland waterways\" incoterms for containerized goods. These four incoterms which are used for sea and inland waterways are not meant for containerized goods. These are actually meant for bulk cargoes and non- containerized goods. Use of these incoterms for containerized goods can put exporters at undue risk as the goods may have to wait several days before despatch.','Incoterms: Guide of everything you want to know about','','inherit','open','open','','1264-revision-v1','','','2015-12-25 09:30:39','2015-12-25 09:30:39','',1264,'http://myseatime.com/blogadm/1264-revision-v1/',0,'revision','',0,0);
